It is an honour and privilege to speak to you on this another Labour Day, as we celebrate the achievements of workers on our island. This Labour Day is one of great significance for Anguilla, as it is the first Labour Day following assent to the Labour (Relations) Act, 2018.
This milestone marks the beginning of the culmination of years of hard work and dedication towards the modernization of Anguilla’s labour legislation. The act focuses on navigating those issues inherent in employment relationships.
Employee Relations refers to the bond that exists between an employer and employee. Many established businesses have employee relations programs which impose measures that promote harmony between both parties. When these are effective, they contribute towards a business’ productivity, competitiveness, profitability and longevity. However such measures are sometimes insufficient to resolve certain issues that may arise.
The new Labour Relations Act thus replaces legislation which was largely inadequate to support the Labour Department’s conciliatory efforts. Since the Act’s introduction, the Department has been fielding questions in relation to the new and revised portions of the legislation. Let me take this opportunity to clarify a few of the areas where there appears to be misperception on application, commencing with leave entitlement.
Let us first consider vacation leave. Under the Fair Labour Standards Act, an employee was entitled to a minimum vacation leave of 12 working days. Under the Labour Relations Act, that entitlement has increased to 15 working days, which becomes enforceable after August 31st of this year.
When one examines sick leave, the law in relation to an employee’s entitlement has not changed. After having worked for 110 days in the first year of employment, a worker is eligible for paid sick leave at the rate of one day for every 22 days worked, or up to 12 days in a calendar year.
Let me affirm that there is no differentiation between certified and uncertified leave when calculating paid sick leave entitlement from an employer. After the 12 days of allotted paid sick leave has expired, an employer is no longer obligated to pay for sick leave. However the employee may continue to collect Social Security at the rate of 60% where the sick leave is certified.
Employers and employees should both be aware that the new Act recommends how the abuse of sick leave should be handled. It also advises an employer on the options available when they have staff incapacitated and on sick leave for an extended duration.
Female employees will be pleased to learn that Maternity Leave has increased from 13 weeks to 14 weeks. This is to bring it in line with International Labour standards.
Also, as per best global practice, Anguilla has now officially legislated paternity leave, which benefits the child’s father or the husband of the child’s mother. Paternity leave extends for up to 4 weeks after the mother’s confinement, two weeks of which are compulsory paid leave. Such entitlement is valid for only once per annum, and must be taken within 16 weeks of childbirth.
The Labour Department has also responded to several queries on the topic of probation, which has been dealt with quite extensively in the Labour Relations Act. The new law covers topics such as the expected outcomes of probation, the length of probation, the circumstances that are prerequisite for extending probation, what should occur on conclusion of the probationary period, and the employer’s obligation.
If, any employee is terminated due to closure of a business or for other reasons of redundancy, under the Labour Relations Act that employer is obligated to pay redundancy fees which is separate and apart from any type or remuneration that may be due to the employee. Note however that years of service used to calculate the redundancy payment will only start to accumulate after August 31st of this year.
When, alternatively, it is the employee who wishes to terminate the working relationship, they must provide the same period of notice that an employer would have had to provide were they the ones ending the employment contract. Failure to do so entitles the employer to deduct funds from wages and benefits due to them, as per the guidelines stated in the Act.
The Department has received many inquiries as to whether Anguilla has as yet introduced a minimum wage. At present it can be confirmed that the Ministry is currently laying the groundwork for the introduction of a Minimum Wage Advisory Committee, which will have the responsibility of investigating the conditions of employment and wage practices across major industries on the island, with the ultimate objective of proposing living wages that are fair to employees and sustainable by employers.
Employers and employees alike many times also seek advice from the Labour Department on how to handle disciplinary matters. The Labour Relations Act delves into the disciplinary process in greater detail than preceding statute. It explains the differences between general misconduct, serious misconduct and gross misconduct, and outlines the procedures to be followed for each type of infraction. What the Act seeks to accomplish by doing so, is to ensure that in undertaking disciplinary measures, an employer gives due consideration to ensuring that the punishment fits the crime.
If an employee believes that disciplinary measures exercised against them are prejudiced, then they can lodge a complaint with the Labour Department. Resolution is then pursued through alternative dispute resolution mechanisms which are described in the new Act. As of August 31st this year, for those matters where the parties fail to reach an agreement at the Labour Commissioner level, they will be directed straight to a Tribunal for consideration, instead of first having to be heard by the Minister of Labour. Such a move reduces the time allocated to final resolution of a matter.
The Labour Relations Act has also addressed the issuance of work permits in substantial detail, with additional requirements being placed on prospective employers who wish to engage the services of migrants.
Passage of the Labour Relations Act is just the initial phase of further labour legislation which looms on the horizon. The Ministry of Labour in collaboration with the Attorney General’s Chambers and the Labour Department is working to roll out those aspects of the legislation that address Equality of Treatment, Occupational Health and Safety, Labour Department Administration, Trade Unionism and Collective Bargaining. The ultimate goal is for passage of all labour legislature by the end of the 2019 calendar year.
On this Labour Day, the Department of Labour can state with enthusiasm that it is committed to continue playing its role in the full implementation of a long awaited labour legislature that is fit for purpose. We at the Department therefore look forward to serving Anguilla better through utilising employment legislation that is more effective in meeting the needs of the labour populace.
In closing let me take this opportunity to wish you all a Happy Labour Day 2019!
