As was first reported by our agency, the Temporary Termination extension expired on February 28th, 2021. One year after the initial extension was granted. At a recent sitting in the House of Assembly on Wednesday March 10th, Labour Minister Hon. Vincent Wheatley said “Employees are the most important asset of a business and compensation should be delayed no further.’
The minister officially confirmed the end of the extension also referred to as the ‘lay off’ period and made an appeal to employers saying, “I ask here today that employers make the necessary arrangements with employees to bring outstanding payments current.”
This announcement follows a series of extensions. On May 29th, 2020 the Minister responsible for Immigration and Labor, the Hon. Vincent Wheatley announced plans to amend the Labour Code (Amendment) Act, 2020 to make provisions for an extension to October 31st, this was then approved by cabinet.
Once the October 31st deadline approached, the Minister further stated that the October 31st temporary termination deadline will be extended to November 15th, 2020 in an attempt to benefit employers and employees.
However, the November 15th tentative date was rejected by some residents who said they have persons ready to work, and further requested the date be extended to December 15th or 31st.
In response to community appeals from both employers and employees, Minister Wheatley said he was trying to find a middle ground by seeking a balance for both parties stating, “The current pandemic in mind and the harsh realities being faced by both employers and employees inspired Cabinet’s decision to extend to 2021.”
While this worked to the benefit of business owners, many were also concerned about the employees who have been displaced since March 2020 without jobs, as the tourism industry remains closed and the reopening of the sea ports has again been deferred to April 2021.
As was mentioned when first reported, this now means that employers have to make some very difficult decisions, do they sever staff or return them as full time employees?
Meanwhile, Minister Wheatley is instructing employers to begin paying severance to their staff immediately, and can do so in installments and should visit the Department of Labour & Workforce Development to get assistance in developing plans to make outstanding payments.
Severance equals a lump sum with a deadline by which it is to be paid. There is a very short grace period and a payment plan for severance is only possible once agreed upon by the employee, which was confirmed by the Minister stating that this must be “mutually agreed” upon.
For employers with expat employees, they have signed an immigration bond, which holds them liable to pay repatriation fees including air fare and hotel accommodations for repatriation of said employees.
When considering large hotels or organizations who have a number of expat workers, this is a significant cost to employers in addition to severance pay.
When considering both sides, some would side with the Government in ending the temporary termination deadline, instead of having persons wait in vain, not knowing their employment fate. Both employers and employees have experienced significant losses as a result of the situation.
Both employers and employees requiring assistance regarding severance payments should visit the Labour Department in person or by contacting a Labour Relations Officer at 284-468-4739 OR 284-468-4713, persons can also reach out to the department via email at labour@gov.vg.