"Problematic employment contracts have been an issue in Bermuda for some time now, and dealing with this matter is high on the Government’s agenda, especially when they impact Bermudians’ inability to find suitable and sustainable employment.
As a result, I (as the Minister of Home Affairs), working with the Labour Advisory Council, am seeking to amend the current labour legislation in order to safeguard workers’ rights and combat this issue.
I should mention that the Labour Advisory Council is a tripartite committee consisting of Government, union and employer group representatives and chaired by the Minister.
Workers within various industries have voiced concerns that employers have found ways to deny them their rights under the current legislation.
Many employers, for example, are offering employment contracts that do not cover the basic benefits such as:
- health insurance,
- social insurance,
- and payroll tax.
These contracts - usually referred to as “contractor” or “consultant contracts” - stipulate that persons are fully responsible for their own benefits…yet do not allow persons the ability to negotiate their rate of pay to compensate for these deductions.
Contractor and consultant contracts are typically used for persons who provide expert advice professionally and should not be used to replace or impose an unnecessary burden on your typical worker, forcing them to fall outside of the benefits and protections of the labour legislation.
By working together with the unions and employer groups, Government is proposing to amend the current labour legislation, i.e.:
- the Employment Act 2000,
- the Labour Relations Act 1975,
- the Labour Disputes Act 1992
- and the Trade Union Act 1965…
...to include provisions that clearly outline the various types of employment relationships within Bermuda, thus limiting the ability of employers to create subsets of workers that fall outside of the protection afforded under the labour legislation.
The proposal also allows for the investigation of complaints of unfair treatment of persons who are employed on a temporary, part-time or casual basis, or the like, and who are not defined as employees under the current legislation, thus limiting their protection.
The imposition of harsh sanctions and the suspension of work permits for employers who willfully defy the legislation are a few of the penalties being thoroughly and keenly considered by the Government.
The Labour Advisory Council is currently tasked with examining ways to ensure that employers and unions work together to combat these concerns and continue to promote good and fair industrial relations."