Download - Ir- Labour Laws Assignment Essay
Question: Outline the main features. Of all of the following Jamaican
Laws. What are their deficiencies relative to employee welfare?
The maternity Leave Act of 1979
The Labour Relations and Industrial Disputes Act (LRIDA)
The Holidays with Pay Act 1973
The minimum Wage Act 1975
The Employment (Termination and Redundancy Payments) Act 1974
Due to the increased industrial activity in Jamaica in the 1900s, there was a
recognized need to enact some form of legislation that could serve as a kind of
“cooling agent” for the labour force. The labour force was becoming larger and
more demanding due to the haunting presence of unions. Consequently, several
acts followed in the 1940s and beyond, with those in the late 1900s leaving an
indelible mark on Industrial Relations in Jamaica today.
To enforce the legislative actions which were taking place in the country during
the 1900s, a significant milestone was achieved. This was the establishment of
the Ministry of Labour on May 5, 1953. Formerly known as the Unemployment
Registration Bureau, the conversion to the Ministry of Labour was described by
F.A. Glaspole, the then Minister of labour as “another milestone in the process of
our constitutional development.”
Labour law defines the rights and obligations of workers, union members and
employers in the workplace. Generally, labour law covers Industrial relations in
relation to certification of unions, labour-management relations, collective
bargaining and unfair labour practices. Workplace health and safety.
Employment standards which includes general holidays, annual vacations,
working hours, unjust dismissals, minimum wage, maternity leave, layoff
procedures and severance pay. The following labour laws will be discussed:
The Minimum Wage Act 1974
The Holidays with Pay Act 1973
The maternity Leave Act of 1979
Labour Relations and Industrial Disputes Act 1975
The Employment (Termination and
Redundancy Payments) Act 1974
The fixing of minimum wage is one method of state intervention in employer –
employee relations which is accomplished through the Minimum Wage Act and
the Orders which follow. The act was passed into law on December 22, 1938
and amended in 1974 to allow for the appointment of a minimum wage advisory
council to take over the functions of the old minimum wage advisory board
established under the 1938 Act, and for the purpose of fixing a national minimum
wage. Under section 3 of the Act, the minister may by Order publish in the
Gazette fix minimum rates of wages for any occupation in the island either
generally or in any specified area. The Order may regulate the hours of work or
other terms and conditions of employment or service, may fix different minimum
wages in different categories of establishments in the same industry and may
provide for the exclusion of any category of workers from the National Minimum
Wage. The Minimum Wage Advisory Council functions are to consider and
advise the Minister on all matters relating to national minimum wages and any
other minimum wage which may be fixed, to obtain and record information in
relation to wages and other remunerations, terms and conditions of work and to
keep under review all minimum wages fixed by the minister and to make
recommendations to the Minister as regards to any changes. Features of the
National minimum wage Order are: “normal working day” is defined as any day
on which a worker is normally required to work for his employer, but does not
include a rest day or a public holiday. A “rest day” is the day allowed to the
worker during the week when he is off the job. The day on which the rest day
falls shall be determined by agreement between the worker and his employer.
“Weekly workers” mean workers who by agreement with their employers,
regularly work for not less than 40 hours per week for any one employer. “Hourly
workers” mean workers who usually work for less than 40 hours per week for
their employer. Wage means remuneration in money and does not include the
value of any lodgings or food or by any other benefit conferred upon the worker
by his employer. “Worker” means an individual who has entered into a contract
with an employer, whether the contract is expressed or implied, oral or in writing
and includes anyone employed aboard any aircraft or ship registered in Jamaica.
A casual worker defined as one who is employed from day to day for the
performance of a particular task which normally cannot be performed in less than
one working day, is entitled to four hours pay if the person reports for work but as
a result of special circumstances is unable to work or to eight hours pay if the
number of hours for which he is required to work is more than four but less than
eight. The minimum wage order of July 1996 provides for the worker other than
household workers, $20.00 per hour for work done during any period not
exceeding (i) eight hours on a normal working day or (ii) forty hours in any week.
The worker should be paid time and a half for work done in excess of eight hours
on a normal working day and double time for work done during any period on a
rest day or a public holiday. For weekly paid household workers they were paid
$800.00 per week for a normal 40hour work week and $20.00 per hour for work
done in excess of 40 hours in any week. The rates set out in the Order are
minimum rates and may be exceeded by agreement.
The Minister of Labour and Social Security, Hon. Pearnel Charles, made the
announcement of the approval of a 10 percent increase for minimum wage
earners and industrial security guards on January 25, 2011. Stating that effective
February 28, 2011, the National Minimum Wage will move from $4, 070 per 40-
hour work week to $4,500, while the minimum wage for industrial security guards
will increase from $6, 050 per 40-hour week to $6,655.
Security guards will also receive increases in laundry allowance from $27.50 per
hour to $30.25; fire arm premium from $30.25 to $33.28 per hour; and dog
handler’s premium allowance from $20.35 per hour to $22.39. The life insurance
coverage for security guards has also been increased from $1.5 million double
indemnity to $2 million.
In spite of the Minimum Wage Act there are deficiencies that erodes the
bargaining power and, therefore, limits the earning power of the average worker
and reduces the 'labour contract' to ammunition for employers, most of whom
use the stipulated minimum wage as a pay-scale guide. In the absence of a
stipulated minimum wage, the worker will have the freedom to negotiate based
on his skills and the demand for them. That's more power to the worker.
The Holiday with Pay Order of 1973 governs the payment of wages during
holiday and sick leave as well as the entitlement of employees to leave in
general. The Order regulates sick and vacation leave, gratuity payments and
leave entitlements. It should be noted that the Holidays with Pay Order stipulates
how and when leave should be granted and can be described as a national
minimum law in Jamaican Industrial Relations.
More specifically, this Act provides the worker with several benefits including:
a minimum two working weeks vacation with pay (not including public holidays
and weekends) one sick day entitlement for every 22 days the worker works
any period of illness under four days does not have to be accompanied by a
medical certificate
The Holiday with Pay Act speaks directly to the welfare of the worker as these
benefits become automatic entitlements when the worker agrees to the terms
and conditions of a contract of employment.
On July 28, 2009, the House of Representatives began debating changes to the
Holiday with Pay Act to increase fines for breaches by employers and allowing
the Resident Magistrate's Courts to hear the cases.
Minister of Labour and Social Security, Hon. Pearnel Charles, pointed out that it
is imperative that workers are given adequate time for rest and rejuvenation
during their working life, to allow them to be more productive.
He said that the worker should also be remunerated at normal wages during this
period of vacation, and be guaranteed the right to return to work thereafter. He
added that similar principles should also apply to sick leave entitlements.
Pointing to what, he said, is a glaring deficiency in the Act, Mr. Charles said that
there is no specific provision which allows an aggrieved worker to take legal
action in the RM court, against an employer for a breach of provisions which
result in the worker not receiving legal entitlements to vacation leave, sick leave
or gratuity benefits.
He said that between 2004 and 2008, an average of 2,400 workers annually
lodged complaints with the Ministry regarding breaches of the Holiday with Pay
Act. These complaints included: not being allowed to take their vacation and sick
leaves at the appropriate time; not being paid at all for leave taken; and being
underpaid for time taken.
"Fortunately, labour officers have been able to intervene in about one third of
these cases, resulting in some workers receiving their entitlements outside of
pursuing legal remedies. In the remaining cases, employers refuse to honour
their obligation, or simply ignore the attempts by the ministry to promote
resolutions of these issues.
Mr. Charles stated that, although criminal action against employers is available,
workers have no direct recourse in the courts, except to attempt to claim a
breach of employment contract, which is a daunting task for the average worker.
A new section is to be included in the Act, to allow the RM court to hear claims
arising from breaches of contract of employment covering up to a maximum of
$500,000. The Minister will also now be able to vary and amend fines, with the
approval of Parliament.
The worker will then be able to access relevant and effective justice that would
reflect the dynamism of the economy and the employment arena. It is also
proposed that fines be increased from $250 to $250,000 for breaches relating to:
holiday with pay, sick leave or sick benefits; contractual arrangements; and
records. However, the imprisonment penalty will be decreased from 6 months
with hard labour, to 3 months.
Amendments will also be made to the companion legislation, the Holiday with
Pay Order. The order will clarify the meaning of 'worker', to relate to the changing
face of the employment arena.
They will also include provisions to allow for the accumulation of vacation leave
for up to four years, unless otherwise agreed between the worker and employer,
and or their representatives. The order will also clarify the rate of pay to be used
when calculating the sums owed to a terminated worker for outstanding vacation
leave.
The maternity leave act was passed in December 1979 due to the deliberations
by the unions, employers and various women’s organizations. Jamaica was one
of the first countries to institute an Act of this nature in Industrial Relations. The
Act made it obligatory for employers to grant such leave and to make certain
payments as prescribed due to inhumane unfair treatment of workers in the pass.
The Act outlined the conditions that the employers and employees must adhere
to in the workplace.
The main features of the Maternity Leave Act are:
Qualification - To be qualified for maternity leave the worker must:
Inform her employee that she wishes to be absent from work wholly or partly due
to pregnancy or confinement and that she intends to return to work with the
employer. Have been employed for a period of 52 weeks at the date when she
goes on leave. Produce upon the request of the employer a certificate from a
registered medical practitioner stating that it is necessary for the worker to be
absent from work due to the pregnancy.
Entitlement to leave - The entitlement for one or more periods of leave shall not
exceed 12 weeks except in special circumstances unless the worker furnishes
her employer with a certificate from pregnancy or confinement, or a proof of
health condition of the child to whom she has given birth. It is necessary for the
worker to be absent from work for a period in excess of 12 weeks but not
exceeding 14 weeks. If a worker wishes to have a further extension, that is,
beyond the 12 weeks:
She shall submit a medical certificate from a medical certificate of herself or the
child if the employer requires her to do so.
The employer may require that medical examination be carried out in the
presence of, and in consultation with, a medical practioner chosen and paid by
him.
If there is a disagreement between the medical practitioners, the matter shall be
referred to the chief medical officer, and any decision made by him or a medical
practitioner nominated by him shall be final.
There is no limitation in regard to additional leave depending on the outcome of
the medical examination.
Worker's right to return to work - Every worker who has been granted maternity
leave having qualified has the right to return to work:
With the employer who granted her the leave.
In the capacity and position in which she was employed to work.
On terms on conditions regarding seniority, pension rights and other rights shall
be regarding in her absence.
Redundancy
If a worker is to return to work, but is not practical by reason of redundancy for
the employer to permit her to return, she shall be entitled to be offered suitable
alternative employment subject to a suitable vacancy, with either her employer or
his successor or an associated company. The new contract of employment shall
be such that:
The work to be done is of a kind suitable to the employer. The provisions as to
the capacity and place are not less favourable than her previous employment.
Her seniority, pension right and other benefits would be continuous.
Where the employee returns and is being made redundant, the worker must
reserve the rights and conditions that were stipulated in the original contract of
employment and is entitled to redundancy benefits (if applicable).
Maternity pay - The worker who has qualified for maternity leave shall be entitled,
subject to the conditions hereafter, to be paid for the first eight weeks of her
maternity beginning on, or following after the relevant date. The qualified worker
shall not be entitled to be paid maternity pay:
unless she informs her employer not less than two weeks before the relevant
date (i.e. 13 weeks) or, if that is not reasonably practical, as soon thereafter as is
practical , of the expected week of confinement.
Unless she produces for the inspection of her employer, if he so requests, a
certificate from a registered medical practitioner stating the expected
confinement.
If the employer had granted her maternity leave with pay in respect of three or
more pregnancies before the relevant day. This means that she would not be
entitled to payment for more than three pregnancies although she could be
entitled to leave without pay for four or more.
Deficiency of maternity leave:
Demotion – On returning to work after maternity leave some women find that
they are placed in a lower position than what they were in before they went off on
maternity leave. Retuning to a different position is one of deficiency and is not
suppose to be. The Maternity Act should be followed at all times as there are
legal implications to adhering to the laws that governs the land.
The Labour Relations and Industrial Disputes Act (LRIDA)
The Industrial Disputes Tribunal was set up in 1975 under the Labour Relations
and Industrial Disputes Act (L.R.I.D.A.) of 1975.
The Tribunal was established to determine and settle industrial disputes and to
promote industrial harmony.
Prior to 1975, industrial disputes in Jamaica were settled through the route of
Arbitration, provided for under the Public Utility Undertaking and Public Services
Arbitration (PUUPSA) Law and the Trade Disputes Arbitration and Enquiry Law.
The workers were discontented with the manner in which grievances were
handled by Arbitrators. The Government of the day felt that it was necessary to
have a modern and permanent State machinery to determine and settle disputes
expeditiously. The 1938 labour uprising also influenced this decision.
Problems prior to the establishment of the L.R.I.D.A. were that
The arbitrator acting under the Arbitration Act could not reinstate a worker (No
power to reinstate).
There was difficulty in selecting an arbitrator by the parties. This could be a long
process.
Arbitrations only took place in the essential service under the P.U.U.P.S.A., and
in the event where the workers were represented by a union and the grievance
procedure allowed for arbitration.
The birth of the LRIDA in Jamaica states that “the LRIDA came about in an
attempt to protect workers who were primary targets of unjust laws and action.”
As such the LRIDA seeks to inter alia whereby they establish a structure
specifically geared towards resolving industrial disputes in the form of the IDT
Provide enforcement of rules and laws in the form of a Code of Conduct
Protect workers’ rights via union membership and freedom of association.
It also outlines the roles and functions of stakeholders such as the Ministry of
Labour, the Trade Union and the workers themselves.
Employ a procedure through which an attempt is made to settle disputes in
graduated stages, the first stage of which is negotiation
The Labour Relations Code (accompanying document to the Act), sets outs
guidelines which are expected to promote good labour relations in the context of:
Collective Bargaining, Settlement of disputes through negotiation, conciliation
and arbitration, Protection of workers and employers against unfair labour
practices.
The Act defines a worker as “an individual who has entered into or works or
normally works under a contract of employment.”
Under the LRIDA, there is no definition of employee; however the definition of
worker incorporates contractors who work as employees.
The implications of being labeled a contractor as against a worker are that, being
workers, some persons are not protected under all labour laws. Therefore
eliminating some persons in the workforce from having a right to grievance
procedures, leave benefits, redundancy payments-instead some organizations
offer a gratuity.
In summary, the LRIDA performs a monitoring, guidance and stabilizing function
in the Industrial Relations arena.
Employee welfare includes anything that is done for the comfort and
improvement of employees and is provided over and above the wages. Welfare
helps in keeping the morale and motivation of the employees high so as to retain
the employees for longer duration. The welfare measures need not be in
monetary terms only, but in any kind or forms. Employee welfare includes
Monitoring of working conditions, creation of industrial harmony through
infrastructure for health, industrial relations and insurance against disease,
accident and unemployment for the workers and their families Labor welfare
entails all those activities of employer which are directed towards providing the
employees with certain facilities and services in addition to wages or salaries.
Such as to provide better life and health to the workers in order to make the
workers happy and satisfied, to relieve workers from industrial fatigue and to
improve intellectual, cultural and material conditions of living of the workers.
The very logic behind providing welfare schemes is to create efficient, healthy,
loyal and satisfied labor force for the organization. The purpose of providing such
facilities is to make their work life better and also to raise their standard of living.
To provide better physical and mental health to workers and thus promote a
healthy work environment
Facilities like housing schemes, medical benefits, and education and recreation
facilities for workers’ families help in raising their standards of living. This makes
workers to pay more attention towards work and thus increases their productivity.
Employers get stable labor force by providing welfare facilities. With that workers
would take active interest in their jobs and work with a feeling of involvement and
participation.
Employee welfare measures increase the productivity of organization and
promote healthy industrial relations thereby maintaining industrial peace.
Deficiencies relative to employee welfare.
The deficiencies come in effect when employers fail to make employee welfare a
priority. In ways such as not ensuring that they receive proper Wage rates this
has been an on going problem within organization and with the global recession
taking place frustrate the workers. Other problem such as Leave policy,
Overtime, Lack of career planning, Role conflicts, Lack of regard for collective
agreement and Disparity between skill of worker and job responsibility have also
been a deficiency for workers.
Another deficiency that employers lack is the violation of their responsibility to
provide suitable working conditions and also the violation of natural rules of
justice such as unfair treatment in promotion.
Over the years employees have been battling with Grievance issues resulting
from working conditions such as: Poor safety and bad physical conditions.
Unavailability of tools and proper machinery. Negative approach to discipline and
Unrealistic targets. There is also Grievance resulting from inter-personal factors
such as. Poor relationships with team members, also staff have major problem
with Autocratic leadership style of superiors. Employee who face such type
leadership often time feel neglected because there input is not needed.
Grievance is any type of dissatisfaction or discontentment’s arising out of factors
related to an employee’s job which he thinks is unfair. A grievance arises when
an employee feels that something has happened or is happening to him which he
thinks is unfair, unjust or inequitable. In an organization, a grievance may arise
due to several factors.
Grievances are symptoms of conflicts in industry. Therefore, management should
be concerned with grievances, because it is an important indicator of potential
problems within the workforce. Without a grievance procedure, management may
be unable to respond to employee concerns since managers are unaware of
them. Therefore, a formal grievance procedure is a valuable communication tool
for the organization.
The Employment (Termination and Redundancy Payments) Act is legislation
passed in Jamaica in 1974. The Act protects workers by ensuring that employers
give employees proper notice before layoffs. The Act is administered and
maintained by the Ministry of Labour and Social Security.
There is a minimum Period of Notice which alludes to the first section of the Act
which defines its key terms. Part II designates how much notice an employer
must give an employee before a layoff. The amount of time is determined by how
long the employee has worked for the company. All employees must receive at
least two weeks' notice.
According to the redundancy Payments an employee is fired for reasons of
"redundancy," the job has become unnecessary. This could be because the
company is moving, downsizing, changing management or for other reasons. In
Jamaica, the Employment (Termination and Redundancy) Act requires
employers to pay a fee to employees who have worked for them for more than
two years if they are terminated for reasons of redundancy.
Other reasons which are seen as miscellaneous in this section of the Act
requires that employers keep accurate records about their employees, including
the employees' names and tax information as well as their dates of employment.
Additionally, this section outlines the power of the Resident Magistrates' Courts in
employment law cases and gives the Minister the power to make regulations,
when necessary, to better enforce the Act.
The Right to redundancy payment is where on or after the appointed day an
employee who has been continuously employed for the period of one hundred
and four weeks ending on the relevant date is dismissed by his employer by
reason of redundancy the employer and any other person to whom the
ownership of his business is transferred during the period of twelve months after
such dismissal shall, subject to the provisions of this Part, be liable to pay to the
employee a sum (in this Act referred to as a “redundancy payment”) calculated in
such manner as shall be prescribed.
For the purposes of this Part an employee who is dismissed shall be taken to be
dismissed by reason of redundancy if the dismissal is attributable wholly or partly
to he fact that his employer has ceased, or intends to cease, to carry on the
business for the purposes of which the employee was employed by him or has
ceased, or intends to cease, to carry on that business in the place where the
employee was so employed; or the fact that the requirements of that business for
employees to carry out work of a particular kind, or for employees to carry out
work of a particular kind in the place where he was so employed, have ceased or
diminished or are expected to cease or diminish; or the fact that he has suffered
personal injury which was caused by an accident arising out of and in the course
of his employment, or has developed any disease, prescribed under this Act,
being a disease due to the nature of his employment.
An employee who on or after the appointed day has been employed by the same
employer in seasonal employment for two or more consecutive years shall, if his
employment during each season is continuous, be taken to be dismissed by that
employer by reason of redundancy. Where he is dismissed by his employer and
the dismissal is attributable wholly or partly to any of the facts specified in
subsection or
where his employer informs him (in whatever terms) that he will not be provided
with employment during any season; or where he attends the place of
employment and offers himself for employment at the beginning of any season or
in accordance with any instructions given, or any procedure established, by the
demand the employer fails to provide him with employment, and the employer
shall, subject to the provisions of this Part, be liable to pay to him a redundancy
payment notwithstanding that he has not been continuously employed throughout
the period specified in subsection.
The manner of determining whether an employee has been continuously
employed for the period specified in subsection shall be such manner as shall be
prescribed.
For the purposes of this section an employee shall betaken to be dismissed by
his employer if the contract under which he is employed by the employer is
terminated by the employer, either by notice or without notice; or if under that
contract he is employed for a fixed term and that term expires without being
renewed under the same contract; or if he is compelled, by reason of the
employer’s conduct, to terminate that contract without notice.
Deficiencies relative to employee welfare are were there is a general
exclusion from the right of redundancy payment an employee shall not be entitled
to a redundancy payment if for any reason other than that specified if he
terminates the contract under which he is employed; or claims for redundancy
payments notwithstanding anything in the preceding provisions of this Part an
employee shall not be entitled to a redundancy payment unless, before the end
of the period of six months beginning with the relevant date the payment has
been agreed; or if the employee has not been made for the claim for the payment
by notice in writing given to the employer; or proceedings have been commenced
under this Act for the determination of the right of the employee to the payment
or for the determination of the amount of the payment. Where the employee dies
before the end of the period of six months mentioned in subsection (1), and none
of the events mentioned in paragraphs (a), (b) and (c) of that subsection occurs
before his death, a claim by his personal representative for the payment shall, if
notice is not made by in writing given to the employer before the end of the
period of one year beginning with the relevant date, be of the same effect as if it
is not made by the employee in accordance with paragraph (b) of subsection (1).
These deficiencies will be to the detriment to the welfare of the employee if they
are not providing for.
REFERENCES
Kirkaldy G.: Industrial Relations Law and Practice in Jamaica
http://www.moj.gov.jm/laws/statutes
http://www.mlss.gov.jm