NRB 2014 Page 1

NATIONAL REMUNERATION BOARD

REVIEW OF THE CATERING AND TOURISM INDUSTRIES [REMUNERATION ORDER] REGULATIONS

PROPOSED RECOMMENDATIONS

1. INTRODUCTION

1.1 On 12 October 2010 the Honourable Minister of Labour, Industrial Relations and

Employment, acting under Section 91 of the Employment Relations Act [ERA], referred

to the National Remuneration Board the Catering and Tourism Industries [Remuneration

Order] Regulations for review. The Remuneration Order was last revised in 2004.

1.2 In connection with the present revision exercise, the Board invited interested parties to

submit written representations through notices which were published in the

Government Gazette on 21 May 2011 and three dailies namely Le Defi-Quotidien on 19

May 2011, Le Matinal on 20 May 2011 and Le Mauricien on 21 May 2011. Eight written

representations were received from the following parties: Federation des Travailleurs

Unis (FTU), Union of Employees of Catering Industry (UECI), Hotels and Restaurants

Employees Union (HREU), Confederation des Travailleurs du Secteur Privé (CTSP) New

Mauritius Hotels Ltd, Association des Hoteliers et Restaurateurs-Ile Maurice (AHRIM),

Mauritius Employers Federation (MEF) and the Association des Hotels de Charme.

1.3 Public Hearings were held before the Board where both employer and employee

representatives were summoned to depone viva voce to elaborate and support their

written representations and Mr Ramano of counsel appeared for (UECI) and (HREU). In

the course of the Public Hearings, both the employer and employee representatives

moved the Board to appoint a subcommittee to (i) effectively address concerns of the

stakeholders with regards to the normal working hours per week and (ii) examine the

re-alignment of occupations, job titles and job descriptions of employees working in the

NRB 2014 Page 2

Catering and Tourism sector. The Board acceded to the motion made by the

representatives of employers and employees and pursuant to paragraph 17 of part IV of

the second schedule to the Employment Relations Act 2008, set up a subcommittee

constituting four Board members, where one Board member was appointed as

Chairperson. The subcommittee conducted its own investigations and held a series of

meetings with both employer and employee representatives and submitted its report to

the Board.

1.4 The Board also undertook a fact gathering exercise and conducted a thorough

investigation in the catering and tourism sector both in Mauritius and in Rodrigues. The

technical team of the Board conducted a survey on a sample of 49 establishments in

Mauritius and 8 establishments in Rodrigues. The sampled enterprises covered different

fields of activities within the tourism and catering industry including cafes, fast food

outlets, hotels, restaurants, nature and leisure parks, table d’hôtes, in-flight catering

and tourist residence amongst others. The survey was conducted by way of survey

questionnaires which were designed for both employers and employees and officers of

the Board also carried out site visits where they interviewed a number of employers and

employees in relation to the prevailing wage and terms and conditions of employment

in the sector.

2. AN OVERVIEW OF THE CATERING AND TOURISM SECTOR

2.1 Facts and figures

The Tourism and Catering Industry is one of the leading industries in Mauritius

representing a major share of the country’s GDP. Being highly labour intensive, the

industry acts as a motor for employment and income creation. Over the years, in

Mauritius as in Rodrigues, the Catering and Tourism industry has become a cluster

comprising of different types of entities offering services such as accommodation in

hotels, integrated resorts, villas, bungalows, catering in restaurants, canteens, victualler,

NRB 2014 Page 3

leisure activities in botanical and zoological gardens, nature reserves, pleasure crafts,

yacht chartering, and culture in museums. The main activities carried out in this

industry has also caused a mushrooming of other multiple jobs such as handicraft

makers, taxi drivers, hawkers among many others.

According to Statistics Mauritius, tourist arrivals have been continuously rising over the

years from 681,648 in the year 2002 to 965,441 in 2012. Tourist arrivals from Europe,

which accounted for 58.1% of total tourist arrivals, decreased by 8.0% from 609,648 in

2011 to 560,699 in 2012. In the same year, tourist arrivals from Africa, with a share of

around 28% of total tourist arrivals, expanded by 14.7% to 265,215. Tourist arrivals

from Reunion Island, the main market of the region, increased by 23.2% to 139,169 and

those from Republic of South Africa, by 3.3% to 89,058. The following changes were

registered from the other African countries: Kenya (+41.3%), Malagasy Republic

(+18.5%), Comoros (+11.0%), Zimbabwe (+4.9%) and Seychelles (-20.1%).

Tourist arrivals from the Asian market, which represented 10.8% of total tourist arrivals,

went up by 14.6% from 91,057 in 2011 to 104,336 in 2012. Arrivals from India, the

major source on this continent, increased by 2.3% to 55,197 and those from People’s

Republic of China, the other emerging market of this region increased 38.0% to 20,885.

The other Asian countries registered the following changes: Hong Kong (+114.0%),

United Arab Emirates (+42.9%), Japan (+6.2%), Malaysia (-1.1%) and Singapore

(-15.6%). From data gathered from Statistics Mauritius for the period 2002 to 2012,

following the global economic crisis in 2009, tourist arrivals by country of residence

illustrated a definite pick up in 2010 except for Italy, UK, USA and Seychelles.

Moreover, the survey conducted by the Board revealed that from year 2009 to 2011, the

room occupancy rate in hotels has, on average, increased from 59% to 63%. However,

during peak season, the occupancy rate increased from 58% in 2009 to 69% in 2011. In

off-peak season though, the room occupancy rate stagnated between 48% and 49% for

the period under reference. According to Statistics Mauritius, the average room

occupancy rate in 2011 and 2012 was 65%. The room occupancy rate, which is the ratio

NRB 2014 Page 4

of room nights rented to the total number of room nights available, decreased throughout

from 78 to 62 from 2007 to 2009 and picked up and stagnated at 65 to 66 from 2010

onwards. The length of stay of tourists is decreasing however, according to the Bank of

Mauritius, receipts from the tourism sector is expected to increase in the near future.

Information received from Statistics Mauritius also reveals that Rodrigues Island has also

experienced major tourism development for the last three decades. Tourist arrivals which

stood at 9,146 in the year 1988 rose to 67,527 in 2012, represents a percentage increase

of 638%. Over the years, the marketing policies adopted by relevant authorities and the

creation of many tourist attractions appear to have helped increase the number of tourist

arrivals in Rodrigues island.

It has been noted that the national airline provides special offers for short haul

destinations like Antananarivo, Perth, South Africa and Reunion Islands. As a marketing

tool to increase its visibility in the world market, extra miles are offered to regular

customers. The national airline is now proposing new services to its clients in terms of

the new terminal at the SSR International Airport, new inflight entertainment programme

and better comfort for passengers. All these measures are expected to boost passenger

traffic and tourist arrivals in the country.

NRB 2014 Page 5

2.2 Employment in the Tourism and Catering Industry in the Republic of Mauritius

According to official statistics, for the period 2002 to 2012 employment in the catering

and tourism industry in Mauritius and Rodrigues kept on rising and this is illustrated in

table 1 below.

Table 1 Employment in Accommodation and food service

activities (000’s)

(2002 to 2012)

Year Male % Change Female % Change Large Other

than

large

Total

2002 19.1 - 7.2 - 16.9 9.4 26.3

2003 19.6 2.6 7.8 8.3 17.8 9.6 27.4

2004 20.4 4.1 8 2.6 18.6 9.8 28.4

2005 22.1 8.3 8.8 10 21.1 9.8 30.9

2006 22.3 0.9 9.3 5.7 21.4 10.2 31.6

2007 22.5 0.9 9.5 2.2 21.6 10.4 32

2008 25.1 11.6 11.4 20 24.9 11.6 36.5

2009 24.5 -2.4 11.3 -0.9 23.3 12.5 35.8

2010 25.3 3.8 13.5 19.5 24.4 14.4 38.8

2011

20121

25.5

25.9

0.8

1.6

14.1

14.4

4.4

2.2

25.1

25.2

14.5

15.1

39.6

40.3

Average 22.9 3.22 10.5 7.4 21.8 11.6 33.4

Source: Statistics Mauritius, National Accounts (indicating statistics for Mauritius and Rodrigues)

NRB 2014 Page 6

From information available, it has been noted that employment in the tourism and

catering industry grew from 26300 in 2002 to 40300 in 2012. The workforce in the

industry is represented by 68.6% male and 31.4% female employees. The sector tends

to employ more male than female employees because of the nature of the work

performed and the industry’s requirement for uneven hours of work. It has however

been observed that during the period 2002 to 2012, female employment in the sector

increased by a higher proportion than their male counterparts. It has also been noted

that employment in the catering and tourism sector rose at an increasing rate from year

2002 to 2012 but suffered a downturn in 2009 and same due to exogenous factors such

as the international financial crisis but employment in the sector picked up a rapid

growth again in the years 2010 to 2012.

Establishments in the sector are categorized by Statistics Mauritius as large or small

where those employing 10 or more employees are considered as large establishments

and those employing less than 9 employees are considered as small. Data available from

the same source reveals that 65.3% of labour in the catering and tourism sector is

employed by large establishments and 34.7%, by small operating units. Information

gathered from official statistics also reveals that in the year 2012, workers employed in

other tourist related organizations such as botanical and zoological gardens and nature

reserves, pleasure crafts, yacht chartering, bateau de plaisance among others,

amounted to around 4000.

2.2.1 Age Distribution among employees in Hotels and Restaurants

Information obtained from Statistics Mauritius also shows that on average, employees

working in the sector are less than 30 years of age.

NRB 2014 Page 7

Figure 1 Age distribution

Official statistics reveals that the tourism and catering sector tends to employ more

young and middle age employees than employees who are 50 years and above. It has

been noted that most front liners tend to be young while the back-of-house operators

tend to be of superior age group.

2.2.2 Weekly hours of work

Figures obtained from Statistics Mauritius regarding weekly hours of work performed

in the catering and tourism sector is shown in table 2 below.

Table 2: Weekly Working Hours

Hours of work 2007 2008 2009 2010 2011 2012 Average

less than 23 2686 3740 3355 12320 4077 14070 6708

24 to 40 7688 8661 8574 12045 7765 12663 9566

41 to 50 13155 16436 15285 9930 16305 9648 13460

51 or more 9171 8563 9786 4505 11453 3919 7900

Source: Statistics Mauritius, National Accounts

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

2007 2008 2009 2010 2011 2012

Employment by Age Group

less than 30

30 to 39

40 to 49

50 and over

Total

NRB 2014 Page 8

It can be noted from the table above that the modal hours of work performed in the

catering and tourism industry for the period 2007 to 2012 is in the range of 41 to 50

hours per week with an average of 13460 employees working within that timeframe. It

can also be noted that for the same period, an average of 6708 employees worked less

than 23 hours per week while an average of 7900 employees worked 51 hours or more.

2.2.3 Income Distribution

According to Statistics Mauritius, for the period 2007 to 2012, male employees in the

sector earned more as compared to female employees.

Figure 2 Average incomes

It can be observed from Figure 2 above that on average, employees in the sector earned

around Rs 10,600, whereby male employees earned on average around Rs 12,400 per

month while female employees earned around Rs 7,250 per month. Female employees

in the sector tend to earn less than their male counterparts because they tend to be

more reluctant to undertake jobs at late shifts due to their family commitments.

2.3 Compensation of employees

Compensation of employees comprises of all payments of wages and salaries by

employers: payments in kind as well as in cash and contributions to social security and

to private pension fund, casualty insurance and similar schemes are also included.

Wages and salaries in cash include all payments which employees receive in respect of

0

5000

10000

15000

2007 2008 2009 2010 2011 2012

Employment by Average Income

Male

Female

Average

NRB 2014 Page 9

their work before deducting employees’ contributions to social security schemes. They

include commissions, overtime payments, bonuses, cost of living allowance, and housing

allowances, etc. Wages and salaries in kind are goods and services provided to employees

free of charge or at a markedly reduced cost, which are clearly of direct benefit to the

employees as consumers.

Figure 3 Compensation of employees

From Figure 3 above, it can be observed that compensation to employees in the

accommodation and food service activities industry were rather stable with a steady rise

during 2007 to 2012 with the exception of 2009 where compensation fell. Available

data also indicates that value added from the sector also grew from Rs 18,669 Mn in

2007 to Rs 21,248 Mn in 2012 with an exception in 2009. While the value added per

worker in the sector, that is, the contribution per worker towards GDP were quite

unsteady with a fall from Rs 570,917 to Rs 452,569 for the year 2007 to 2009, the

situation appear to have revived in 2010 inasmuch as the value added per worker

increased to Rs 477,062 and kept on growing to reach Rs 527,246 in 2012. This can be

explained by the fact that the economy’s GDP fell in 2009 due to exogenous factors

while simultaneously the level of employment increased over the years from 32,700 in

2007 to 40,300 in 2012. Considering the percentage of compensation of employees to

0

5000

10000

15000

20000

25000

2007 2008 2009 2010 2011 2012

Compensation of employees in the accomodation and food service activities (Rs Mn)

Value added of the Accomodation and Food Service activities (Rs Mn)

Value added per worker (Rs Mn)

NRB 2014 Page 10

value added of the sector, same were unsteady with a rise from 2007 to 2009 and a

continuous fall from 2010 to 2012 from 26.9% to 25.4%, though value added and the

level of employment kept on rising over that period. Thus, as a matter of fact, though in

absolute term compensation grew but in relative term, employees faced a fall in

earnings.

2.4 Share in Gross Domestic Product

Figure 4 Share of GDP

According to data obtained from Statistics Mauritius, the share of GDP pertaining to the

catering and tourism industry kept on rising from the year 2007 to 2012, with the

exception of the year 2009, where the share of GDP fell by 8.68% to Rs 19,672Mn as

compared to Rs 21,541Mn in 2008. This fall in the share of GDP can be explained by the

impact of the financial crisis affecting European countries which happen to be the major

market source for Mauritius. However, from the year 2009 to 2012, it has been noted

that the economy has experienced an upswing in the share of GDP derived from the

catering and tourism industry and from the appropriate marketing strategies adopted

by the relevant authorities and other stakeholders, the share of GDP of the catering and

tourism industry is expected to grow in the years to come.

0

5000

10000

15000

20000

25000

2007 2008 2009 2010 2011 2012

Value added of Catering and Tourism Industry (Rs Mn)

Value added of Catering and Tourism Industry (Rs Mn)

NRB 2014 Page 11

3. FIELD INVESTIGATION AND OBSERVATIONS

As mentioned above, in the context of the review of the Catering and Tourism Industry

Remuneration Regulations 2004, the technical team of the National Remuneration

Board carried out a survey based on a sample of 49 establishments in Mauritius and 8

establishments in Rodrigues. The list of the sample enterprises was stratified by size,

location and the type of activity and details are provided in the table below:

Activity Size No. of units Employment No. of Interviewees

Hotel 24 3749 472

Large (>80 rooms) 9 2947 248

Small 15 802 224

Tourist Residence 5 30 15

Large 2 25 11

Small 3 5 4

Restaurant 11 176 87

Large 5 138 64

Small 6 38 23

In-Flight Catering Large 1 232 30

Tea shop 2 28 8

Large 1 20 4

Small 1 8 4

Fast Food 7 973 53

Large 4 960 46

Small 3 13 7

Museum Small 1 8 5

Sail Charter Large 1 44 8

Table D'Hote Small 1 5 4

Restaurant/ Museum/ Boutique Large 1 67 19

Private and social club Large 1 117 23

Nature and Leisure Park Large 2 146 41

Total 57 5575 765

of which

Mauritius 49 5372 690

Rodrigues 8 203 75

NRB 2014 Page 12

It should be pointed out that during the survey the technical team of the Board effected

site visits on all the sampled enterprises and the fact gathering exercise was done by

way of survey questionnaires which were designed for both employers and employees.

As can be seen from the table above, interviews were held with some 765 employees

and 57 employers both in Mauritius and in Rodrigues. The interviews conducted by

officers of the Board gave both employers and employees an opportunity to address

their views and concerns on various issues such as normal working hours, remuneration

and other general conditions of work. The field investigation equally helped the Board

to gauge the prevailing situation in the catering and tourism industry, especially in the

light of the representations that were made before it during Public Hearings.

3.1 Trade union membership

From interviews conducted on a sample of 765 employees, only 17.9% confirmed to be

members of trade unions. The rest, it was noted, were unaware of the presence of any

trade union at their workplace.

Further, it was noted from the survey that 74.4% of employees interviewed abstained

from commenting on the issue of the possibility of collective/individual bargaining and

officers of the Board were also apprised of the fact that discussion and consultation, if

any, between staff and management revolved mainly around how to make activities and

services of the establishments more client oriented.

3.2 Working arrangements

According to the survey, 89.3% of employers and 82.7% of employees revealed that

work in the sector is performed on the basis of 6 days per week. In the surveyed

establishments 83% of employers and 41% of employees stated that the working hour

per day is 8.5. 7% of employees interviewed stated that they work 5 to 7 hours, 1%

stated that they work 9 hours and 1% of employees stated that they work in the range

of 10 to 12 hours per day whilst 50% of the employees stated that they could not

answer the question since they have no specific time frame per day as their working

NRB 2014 Page 13

arrangements are made on the number of hours of work per week. 76.8% of the

employers in the surveyed establishments stated that work was performed in their

establishments on the basis of 48 hours per week and the remaining 23.2% stated that

employees in their establishments worked less than 48 hours per week. It was however

found during the survey that some employees still worked more than 48 hours per

week. It was further observed that 52.7% of employees interviewed did not work under

a shift system and from the result of their starting and finishing time and from other

information gathered, it appeared that in many situations, a number of employees tend

to work for much more than 48 hours. It has been noted from the survey that many

establishments in the sector tends to operate on a three shift system where the modal

time frame for the first shift is from 7.00 hrs to 16.00 hrs, for the second shift from

15.00 hrs to 24.00 hrs and for the third shift from 23.00 hrs to 8.00 hrs and a

computation of the duration of the shifts indicated that per shift, employees tend to

work on average 9 hours, inclusive of meal breaks. Further, during the survey 27% of

employees working on a shift system indicated that they are not required to work 2

consecutive night shifts, while the remaining 73% explain that they do work for 2

consecutive night shifts. Observation during survey indicates that a night shift may be

followed by a day shift, often called a double shift. Though this practice enables an

employee to gain more in terms of remuneration yet it was observed that same tends to

have dampening effects on the health and social life of fellow employees. During the

survey many employees raised their concern of having to work long hours on a tedious

shift system and they stated that they would prefer a shift system with adequate days

for rest and recuperation after 2 to 3 days of work.

3.3 Overtime payment

It was observed during the survey that there exists a major problem in the sector with

regards to the computation and payment of overtime to employees. A malpractice was

noted in many establishments where it was observed that employees performing duty

on public holidays and who were supposed to be paid their normal hours of work plus

NRB 2014 Page 14

overtime (two times basic rate for the number of hours of work), only received their

normal day’s wage plus one time basic rate as overtime payment. It was further noted

that in many cases, computation of overtime was not explicit in the pay slips that

employees receive and they had difficulty cross-verifying their overtime payment.

Worst, in some cases it was also noted that though mandatory, some employers did not

even provide their employees with pay slips. During the survey, some employees stated

that although they performed extra hours, they neither received any overtime payment

nor did they receive any refund in terms of off days. Further, some employees explained

that they were remunerated with a package which deprived them of the benefit of any

overtime payment. Interviews held with employers revealed that many employers

believe that given the fact that there is not much workload during off-peak seasons,

they may require workers to perform overtime duties with no corresponding overtime

payment. They tend to believe that lack of workload in off peak seasons compensates

for additional hours performed during peak seasons. It was also noted during the

survey that some employers provided their employees with off days to compensate for

overtime work performed.

The Board has carefully analyzed the provision in relation to extra work and overtime

payment as contained in the existing Remuneration Regulations and finds same to be

sufficiently clear. However, it appears that some employers make an abuse by paying

employees less than what is already prescribed. Given that the issue is related to

enforcement, the Board requests the enforcement division of the Ministry to closely

monitor and to ensure that the relevant provisions in relation to extra work and

overtime payment within the catering and tourism industry is fully complied with by all

employers.

3.4 Accommodation facilities

It was observed from the survey that some establishments provide accommodation

facilities to employees who perform night duty. This spares the employer from providing

transport facilities to drop each employee at his residence. However, employees

NRB 2014 Page 15

claimed that the physical infrastructure of the dormitories is very poor and both male

and female employees are accommodated at the same place, which is not appropriate.

Hence employees proposed that they would prefer to have transport facilities to go

back home and have proper rest instead of being provided with dormitory facilities.

4. Recommendations

After a thorough analysis of all pertinent and relevant information gathered from its

investigation and after having taken into account the specificities of this sector, in

particular, the context and the prospect in which it is evolving and bearing in mind (i)

the principles laid down in Section 97 of the Employment Relations Act 2008 and (ii) the

spirit of the new labour legislations, the Board has come up with the following

recommendations which are duly transposed in the Proposed Regulations at Annex 1:

4.1 Definition Clause

(1) From its investigation the Board observes that the existing Regulations do not

cover certain category of workers employed in the sector and it therefore

recommends the creation of the following new categories:

(a) “Animal Keeper’ who shall be defined as an employee who is responsible

for

(i) feeding, bathing and providing general care to animals

(ii) maintaining cleanliness of sheds at all times

(iii) treating animals in case of minor injury;

(b) “Delivery Person” who shall be defined as an employee who is responsible

for delivering ordered products on a home to home basis and who deals with

cash for the payment of the delivered products;

NRB 2014 Page 16

(c) “Guide” who shall be defined as a person employed for the purpose of

providing information and assistance to customers and which shall include

quad, Tyrolienne, museum and any other similar activity guides;

(d) ‘kid’s club hostess” who shall be defined as an employee who is responsible

to look after and to organise activities for kids;

(e) “hairdresser” who shall be defined s an employee who shaves, cuts, trims,

dresses, waves, curls, stains or dyes, or who in any other way treats, the hair

and beard of any person;

(f) “Spa therapist” who shall be defined as an employee who offers massage,

beauty care, nail and body treatment.

(2) The Board has been apprised of the fact that the provision in relation to ‘Trainee’

and ‘Certified Trainee’ is not clear and some employers make abuse of same.

Hence, for the sake of clarity the Board recommends:

(a) that a ‘Certified Trainee’ be defined as a person who holds a

certificate of competency issued by an institution approved by the

MITD and who is employed for the purpose of being graded in a job;

(b) that a ‘Trainee’ be defined as an employee, other than a kitchen

helper or a cleaner, who is employed for the purpose of being

trained in a job;

(c) that the definition of ‘trainee’ and ‘certified trainee’ in paragraph 2

of the Regulations as well as paragraph 7 be amended accordingly

as per paragraph 7 of the proposed Regulations in Annex 1.

(3) Employers made representations to the Board that the restrictions on waiters

(maximum of 25 covers per waiter) and valet (maximum of 10 rooms per day per

valet) should be removed inasmuch as such restrictions no longer stand in today’s

rapidly changing working environment. The Board has considered the issue raised

before it but is not prepared to bring any amendment to the existing definition of

NRB 2014 Page 17

the said two categories of employees inasmuch same appear to be less favourable

the employees. The Board therefore makes no recommendations on the issue.

4.2 Other terms and conditions of employment (Second Schedule)

1. Normal working hours per week

The normal working hours per week in the Catering and Tourism industry is currently 48

and in the course of this review exercise, the Union of Employees of the Catering

Industry, the Hotel and Restaurant Employees Union, the Federation des Travailleurs

Unis and the Confederation des Travailleurs du Secteur Privé, have unanimously

submitted that the normal working hours per week, which is presently 48 should be

reduced to 40. The representatives of employers, in particular the MEF, AHRIM and the

Association des Hotels de Charme contended that the demand made by the unions

cannot be acceded to due to financial constraints. Subsequently, however, both the

trade unions and the employer representatives requested the Board to set up a

subcommittee which shall have joint consultation with the stakeholders to determine

the normal working hours per week in the catering and tourism industry.

Report of the subcommittee on normal working hours

The subcommittee which was set up by the Board pursuant to paragraph 17 Part IV of

the second schedule to the Employment Relations Act 2008, held meeting and

consultations with all the stakeholders and submitted a report to the Board where it

stated the followings:

(i) that the unions pressed on their demand for a 40-hours normal working week

but did not substantiate on their averment that such a reduction shall have no

significant financial implication;

(ii) that the employers’ side argued that because of the current economic conditions

and financial constraints, an outright shift from 48 to 40 hours normal working

week was unconceivable. They, however, indicated that the current 48 hours

NRB 2014 Page 18

working week can be reviewed and brought down to 45 but the reduction in the

hours of work should be accompanied by a series of flexibilities including job

broad-banding which should be provided for in the Remuneration Regulations.

Given that no consensus could be reached by the parties on the issue of normal working

hours per week, the subcommittee, in its report, recommended that the normal weekly

working hours in the industry be brought down to 45 and the accompanying flexibilities

that was sought by the employers, be left to collective bargaining.

The Board, here, wishes to point out that written representations were also received

from The New Mauritius Hotels (NMH) where, before the setting up of the

subcommittee, the NMH had proposed a 42-hour week comprising of 6 days of 7 hours

excluding meals and breaks, as the least damaging option for the industry. However, in

the course of the Public Hearings, the NMH, through its representative, retracted from

its written proposals and submitted that no change should be brought to the 48 normal

weekly working hours. In his submissions before the Board, the representative of the

New Mauritius Hotels argued that a change in the normal weekly working hours would

have damaging effect on smaller outfits and requested the Board to disregard the

NMH’s initial written proposal in relation to the normal weekly working hours. He

further stated to the Board that for the purpose of this review, the NMH aligned itself

with the stand taken by all the other employer representatives and equally requested

the Board to have the normal working hours determined by the subcommittee.

Apart from the findings made by the subcommittee, investigation led by the Board

revealed that about 30% of the surveyed enterprises which were of different size,

employing from 2 to 250 employees, were already operating on normal working hours

of less than 48 hours per week.

In the course of its enquiry, the Board also came across a dispute which was reported to

the Permanent Arbitration Tribunal by the Union of Employees of the Catering Industry

and Plaisance Catering Ltd, where the Permanent Arbitration Tribunal awarded 45

normal working hours per week.

NRB 2014 Page 19

Further, the Board also observes that out of 30 Remuneration Regulations which exist,

the Catering Industry and the Domestic Employees (Remuneration Regulations) are the

only two Remuneration Regulations which provide for a 48 hours week while the normal

working hours in the remaining sectors range from 32.5 to 45 hours per week.

In light of the above and after careful analysis of the representations made before it,

the Board finds that a normal working week of 45 hours is just, fair and reasonable in

the catering and tourism industry and it recommends accordingly.

2. Extra Work

With regards to extra work, the unions submitted that overtime should be calculated on

a daily basis and work performed on the 24, 25, 31 of December and 1st of January

should be remunerated at 3.5 times the Basic Rate and work on rest days at 4 times the

Basic Rate. On the other hand employers’ submission was to the effect that overtime

should be computed on a monthly basis and not before completion of the prescribed

number of normal working hours per week and rate of payment for work performed on

24, 25, 31 December and 1st of January should be left to Collective Bargaining.

The investigation lead by the Board reveals that, as compared to other sectors, the

catering and tourism sector is quite specific in nature where some workers work for 16

hours per day and complete the prescribed number of normal working hours per week

in 3 days. Hence, the Boards finds that the calculation of overtime on a weekly basis

best suits the requirements of the industry and it recommends that the status quo be

maintained.

Insofar as the demand for overtime payment for work performed on 24, 25, 31 of

December and 1st of January is concerned, the Board is of the view that same should be

left to be negotiated and agreed upon by employers and employees. Hence, it makes

no recommendation on the issue.

NRB 2014 Page 20

3. Notional Calculation of basic rate

The Board recommends that the status quo be maintained in relation to the provision

for the Notional calculation of basic rate.

4. Extra remuneration for public holidays

It was submitted by one of the Unions that a worker shall be entitled to a normal day’s

wage in respect of every public holiday other than a Sunday which occurs while he is in

the employer’s service. The Board finds that the existing Regulations already makes

provision for same and makes no recommendation on the issue.

5. Payment of remuneration

In relation to the payment of remuneration, it was submitted by one of the unions that

a daily paid worker should be paid his remuneration not later than the last working day

of every week or where the worker so agrees, fortnightly. The union also submitted that

the pay slip of every employee should make mention of the number of hours of extra

work performed, the corresponding rates and the corresponding extra payment and it

also submitted that no contractual worker should be paid less than an employee

employed on permanent basis for any job of same value. Employers did not make any

representation to the Board on the issue.

The Board has duly considered the representations made before it on the issue of

payment of remuneration and it recommends that the word ‘wages’, wherever it

appears in this paragraph, be deleted and be replaced by the word ‘remuneration’ and

remuneration be defined in the interpretation section of the Regulations as all

emoluments, in cash or in kind, earned by a worker under a contract of employment

and includes any sum paid by an employer to a worker to cover expenses incurred in

relation to the special nature of his work. The Board further recommends that every

employee shall be paid his remuneration during working hours and not later than the

last working day of the pay period and that the pay slip of every employee should also

make mention of (i) the number of hours of extra work performed by him, the

NRB 2014 Page 21

relevant applicable rates and the corresponding extra payment and (ii) the basic

wages and each item of allowance including any productivity payment. With regards

to the Union submission for equal remuneration for work of equal value, the Board

makes no recommendations inasmuch as Section 20 of the Employment Rights Act

2008 already makes provision for same.

6. Transport benefits and facilities

It was submitted by the Unions that the qualifying distance for refund of travelling

expenses, as it exists in the Remuneration Regulations, be removed and every employee

be entitled to free transport or where no free transport is available, be paid the return

bus fare. It was also submitted by one of the unions that where an employee uses his

own means of transport with the consent of his employer, transport cost should be

refunded in accordance with the civil service transport refund rate for motorcycle or car.

No representation on the issue was received from the employers’ side.

The Board has duly considered the submissions made before it on the issue of

transport benefits and facilities and in line with the provision made in the

Employment Rights Act, it recommends that the qualifying distance for refund of

travelling expenses be maintained. The Board further observes that the existing

Regulations already makes provision for an employee to obtain an allowance equivalent

to the corresponding return bus fare where he attends work by his own means of

transport and it considers that same satisfies the minimum. The Board therefore makes

no recommendation with regards to the union’s demand for transport refund

according to the civil service transport refund rate.

In line with its recent recommendations, the Board recommends that appropriate free

means of transport should be provided to an employee from the employee’s residence

to his place of work or from the employee’s place of work to his residence or both as

the case may be if he is required by his employer to attend or cease work at any time

when no public bus service is available.

NRB 2014 Page 22

7. Uniforms and protective equipment

The unions demanded for a yearly provision of 3 sets of uniforms, 2 pairs of boots or

shoes, 2 caps in appropriate sections, 2 pairs of gloves to every worker and demand was

also made for the provision of toilet soaps and towels. No submission was offered on

this issue by employers. The Board has given due consideration to the demands made

by the unions and it finds that the provision of 3 sets of uniform and 2 pair of shoes or

boots justified on the ground that workers in the sector are very often called upon to

perform 3 consecutive day/night shifts and the current provision of two sets of

uniform are, in the circumstances, inadequate. It therefore recommends accordingly.

With Regards to the demand made for the provision of two pairs of gloves, the Board

observes that the existing Regulations provides for the issue of gloves when they

becomes unserviceable and makes no recommendations on the issue. The Board also

makes no recommendations with regards to the demand for the provision of soaps

and towels inasmuch as the enquiry led by the Board reveals that employers do

provide same to employees at their workplace.

8. Joint Liability

The Board has received no submission on the issue from either side and recommends

that the status quo be maintained. It, however, wishes to point out that its field

investigation has revealed that many jobs such as transportation of workers,

entertainment, decoration works, cleaning and security services among others in this

sector, are contracted out and those contractual workers are exploited inasmuch as

their prescribed minimum terms and conditions of employment are not observed. The

Board therefore invites the enforcement division of the ministry to monitor the

situation closely and to make full use of this provision wherever required so as to ensure

that job contractors comply with the relevant provisions of the law.

NRB 2014 Page 23

9. Annual Leave

The unions made representations to the Board for annual leave to be increased to 16

days where 8 days shall be taken consecutively upon approval of the employer and

remaining days shall be taken at such time as the worker and employer may agree. It

was also submitted by the unions that contractual workers with less than 12 months

service should be entitled to 1 day Annual leave per month and same be refunded if

untaken at the end of the contract. Representative of employers submitted that annual

leave should remain 14 days. The Board finds the demand for 16 days annual leave

justified and in line with its recent recommendations in other sectors, recommends

that the annual leave be increased from 14 days to 16 days. It further recommends

that where an employer and an employee are unable to agree as to when the

proposed 16 days annual leave is to be taken, half of the leave period shall be fixed by

the employer and the other half by the employee. The Board also observes that

Section 27 (2A) of the Employment Rights Act makes provision for 6 days annual leave

for workers with less than 12 months service after completion of 6 months continuous

employment. Hence, it makes no recommendations with regards to the demand for

casual leave for contractual workers.

10. Sick Leave

The CTSP made representations for 21 days sick leave on full pay, a further period of 15

days on half pay for prolonged illness and all untaken sick leaves for a period of twelve

months to be accumulated to a maximum of 90 days in a bank sick leave. Other

employee representatives, on the other hand, demanded for a full refund of balance

sick leaves. Demand was also made by the unions for 1 sick leave per month and 15 days

on half pay for prolonged illness for contractual workers with less than 12 months

service. Employers submitted that there should be no refund for untaken sick leaves.

The Board has given due consideration to the representations made before it. First of

all it observes that section 28 (2A) of the Employment Rights Act makes provision for 6

days sick leave for employees with less than 12 months service and it therefore makes

NRB 2014 Page 24

no recommendation with regards to the demand for sick leave for contractual

workers. However, in line with its recent recommendations in other sectors, the Board

recommends that untaken sick leaves at the end of a period of 12 months, be

accumulated to a maximum of 90 days and same be used as a bank from which leaves

can be deducted when employees exhaust their available sick leave to undergo

prolonged treatment.

11. Maternity protection

With regards to maternity protection, the unions submitted that maternity leave which

is currently 12 weeks on full pay should be increased to 14 weeks and Maternity

Allowance should range between Rs 4000 and Rs 7000. The unions also demanded for 6

weeks leave with pay for stillbirth and 3 weeks leave with pay for miscarriage and 1 hour

breastfeeding to be taken either in the morning before coming to work or in the

afternoon before normal cessation time of work. No representation was received from

the employers’ side on the issue.

The Board has considered the representations made before it on the issue of

maternity protection and is of the view that maternity leave of 12 weeks on full pay

be maintained as it is in line with the Board’s more recent recommendations in other

sectors.

The Board however recommends that maternity allowance be increased to Rs 3,000

and the restriction of the relevant benefits to 3 confinements be removed.

12. End of year bonus

For the purpose of the end of year bonus, it was submitted by one of the unions that

earnings should include basic wages, overtime payment, allowances and productivity

payment and should be defined accordingly. The Board observes that ‘earnings’ in the

existing Regulations already include what has been proposed by the Union. It therefore

makes no recommendation.

NRB 2014 Page 25

13. Work in cyclonic weather

With regards to work in cyclonic weather, it was submitted by one of the unions that the

words ‘or at any other place which is within the control of his employer’ should be

removed from this paragraph because same tends to allow an employer to cause an

employee to work on his private premises during a cyclone warning class III or IV. In

order to prevent any kind of misinterpretation or abuse from the part of employers in

relation to this provision, the Board recommends that where an employee works or is

required by his employer to remain at his workplace on a day on which a cyclone

warning class III or IV is in force, the employee shall in addition to any remuneration

due to him, be entitled to an allowance equal to three times the basic rate in respect

of every hour and shall also be provided with adequate meals. The Board further

recommends that the word ‘workplace’ be defined in the interpretation section of the

Regulations as “any premises or part of premises which are not domestic premises

and which are made available to any employee as a place of work”.

14. Overseas Leave

Investigation led by the Board has revealed that very few employees in the sector have

benefitted from overseas leave and same is attributable to the 15 years continuous

employment criteria which acts as a bar and the financial constraints faced by fellow

employees to fund holidays abroad. It is also worth pointing out at this stage that all the

employees who were interviewed during the survey have expressed their wish to have

overseas leave replaced by vacation leave which can be spent locally or abroad.

In line with its recommendations in other sectors, the Board recommends that

‘Overseas leave’ be replaced by ‘Vacation Leave’ and an employee reckoning 10 years

continuous employment with the same employer be entitled to one vacation leave of

not less than 2 months to be spent wholly or partly abroad or locally at the

employee’s discretion and at least one month of the vacation leave shall be with pay

and where an employee intends to spend his vacation either partly or wholly abroad,

payment shall be effected at least 7 days before he leaves.

NRB 2014 Page 26

15. Gratuity on retirement before 60 on medical grounds

In line with its recent recommendations in other sectors, the Board recommends that

the eligibility period for gratuity on retirement before 60 on medical grounds be

reduced to 5 years.

16. Death Grant

The unions have demanded for an increase of the death grant and have proposed sums

varying between Rs 5,000 and Rs 10,000. They have also submitted that death grant

should be paid irrespective of the years of service. No representations have been

received on the issue from the employers’ side. The Board has duly considered the

representations made before it and is of the view that the death grant of Rs 3,500

should be maintained and it recommends accordingly.

17. Gratuity at Death

In line with its recent recommendations in other sectors and in the quest of

harmonization, the Board recommends that the eligibility period for gratuity at death

be reduced to 5 years.

Other items not covered in the Regulations

18. Special Leave

The union representatives submitted before the Board that the Regulations should

make provision for Special Leave. The Board finds the Union’s demand justified and

recommends that a worker who has remained in continuous employment with the

same employer for 12 consecutive months be entitled to-

(a) 6 working days leave on full pay on the occasion of the celebration of

the worker’s first religious or civil marriage;

(b) 3 days special leaves on full pay on the occasion of the first religious or

civil marriage of each of the worker’s child and

NRB 2014 Page 27

(c) 3 days special leaves on full pay on the death of the worker’s spouse,

child, father, mother, brother or sister.

19. Compensation

Representations were made before the Board by one of the unions for compensation of

3 days wages for each completed month’s service in respect of employees on

determinate contract upon termination. The Board observes that the sector employs

many contractual workers and those workers are not entitled to any compensation

upon termination of their contract. Hence, in an attempt to provide minimum

protection to those workers, the Board recommends that upon termination of their

contract of employment, every employee be entitled to a compensation of one day’s

wage for each completed month of service where –

(a) He has worked for the same employer for more than one month;

(b) His service is terminated before the expiry of 12 months for any cause

other than misconduct or his short term contract has come to an end;

and

(c) His attendance has averaged not less than 20 days per month during his

employment.

20. Medical facilities

Following investigation carried out in this sector and taking into account the potential

health risk factors, the Board recommends that every employee who is directly or

indirectly exposed to noise, dust and chemical and noxious substances shall undergo

a complete medical checkup not less than every 6 months at the expense of the

employer.

The Board further recommends that should health problems be detected during

such check-ups, the doctor shall refer the employee to a recognized medical

institution for appropriate investigation and medical care.

NRB 2014 Page 28

21. Certificate of Employment

The Board recommends that when an employee leaves the employment of an

employer, he be issued with a certificate of employment stating his length of service

with the employer, the post held by him and if he so wishes, his basic wage and the

certificate shall not contain anything unfavourable to the worker.

4.3 Wages

Bearing in mind the principles laid down in Section 97 of the Employment Relations Act

2008 and after having carefully analysed the proposals made by immediate

stakeholders, the nature of work performed and the prevailing wages in the industry,

the Board has come up with recommendations regarding wages, which it considers

fair, just and reasonable and which is transposed in the First Schedule of the Proposed

Regulations at Annex 1.

5. Acknowledgement

The Board extends its thanks to:

(i) all parties and other institutions or persons who, through their representations,

depositions and cooperation, have greatly contributed to help the Board reach

the present recommendations;

(ii) the members of the staff for their invaluable collaboration characterized by their

relentless effort, praiseworthy commitment and professional approach; and

(iii) the members of the supporting staff for their contribution in the recording of

minutes of proceedings and making same available for reference.

National Remuneration Board

Date: 18 February 2014