By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
The Labour Department is formulating amendments to the national Employment Act which include an increase in the notice period for redundancies, Labour Minister Dion Foulkes told Tribune Business yesterday.
Mr Foulkes said: “There are several amendments to the Employment Act we intend to propose. One of the biggest issues from the unions point of view was to increase the notice period for employees upon being made redundant and that is something the Tripartite Council is actively considering.”
The former Christie administration had sought to make it mandatory for employers to provide two months’ (60 days) notice to government and the relevant bargaining agent (trade union) whenever they are about to make 10 or more workers redundant, with failing to do so becoming a criminal offence. “There are some other amendments we intend to pursue that are not before the Council as yet but the legal team at the Labour Department are formulating the amendments to the Employment Act,” said Mr Foulkes.
The Minnis administration has pledged to remove the redundancy cap of 12 years for workers’ compensation.
“In this term in office we pledge to move the redundancy cap of 12 years for workers’ compensation, and institute a new cap after consultation with the Tripartite Council,” Mr Foulkes previously stated said.
At present, line staff remain entitled to a maximum of 24 weeks or six months’ redundancy pay, gaining two weeks for each year they have been employed up to the 12-year ‘cap’.
Managers remain at a maximum of 48 weeks, or one month for every year worked up to 12 years.
The redundancy cap was a key contention between employers and the trade unions when Employment Act reforms were introduced earlier this year under the former Christie administration.
Comments
The_Oracle 6 years, 4 months ago
So how does this Jibe with other statements on "opening up the economy"? One step forward two steps back. Nothing changes but the faces for 50 years.
DDK 6 years, 4 months ago
If a business is making people redundant because it can no longer survive because of this poor economic climate, high priced electricity and other high government taxes and business restrictions, how in h-e-l-l will said business find funds to pay off staff in they are financially bankrupt? These government officials pledge this and pledge that without taking all matters into consideration, including the plight of the owners who have provided jobs for said employees for umpteen years when conditions were not so dire.
banker 6 years, 4 months ago
What is going to happen is the same thing that happens in union shops across North America where they have clauses in contracts where redundancy is not capped. The company starts to strategically create redundancies such that the most senior employees are let go, simply to limit liability for possible redundancies in the future even if the business is doing well at the moment. This also gives these businesses a chance to reduce payroll, because younger, newer employees are paid less due to their lack of seniority. Most unionised employees are those that can be replaced easily with no specific niche skillsets that require years and years of training. Thus, the law of unintended consequences will kick in, and the employment situation will worsen with laws like this where the government tries to actively interfere with business. What the unions do not realise, is that a job is a privilege and not a right.
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