On 26 November 2007, the General Assembly of the United Nations declared that 20 February would be celebrated annually as the World Day of Social Justice.
Today, the 2022 theme of Achieving Social Justice through Formal Employment highlights that 2 billion workers, or over 60 per cent of the world’s employed population, earn their living in the informal economy. These workers are not regulated, registered or afforded the basic social and employment-related protections and benefits.
The Covid 19 pandemic has pushed many persons in Bermuda to become unemployed into this same line of work in order to make ends meet and financially support their families. Unfortunately, some businesses and employers have used this as an opportunity to take advantage of these workers by incorrectly categorizing them as “self-employed” or “contract workers”.
Many employers offer contracts that do not cover basic benefits such as health insurance, social insurance and payroll tax. These contracts, usually referred to as independent or consultant contracts, state that workers are responsible for their own benefits and do not allow workers to negotiate their rate of pay to compensate for these statutory deductions.
To combat these practices, the Ministry of Labour amended the Employment Act 2000, which came into effect on 1 June 2021. These amendments allow the Manager of the Labour Relations Section to issue guidance toward removing these precarious working contracts. It ensures workers receive the minimum benefits and protections afforded through the Bermuda Labour Code.
To further the aim of Achieving Social Justice through Formal Employment, in 2022, the Ministry of Labour will work closely with the Labour Advisory Council to:
- Identify the industries and workers most effected;
- Ascertain any business constraints that may exist; and
- Publish guidance and monitor progress in this area.
In order to reduce inequalities and advance decent work, especially during the current crisis, the published guidance must be clear, comprehensive and robust. Independent or consultant contracts should not be used to replace or impose an unnecessary burden on your typical worker.
Should workers have questions concerning their employment contracts or feel that they have been forced into signing a contract that does not accurately represent their employment relationship, they should contact the Labour Relations Section..
Likewise, employers with questions regarding their current employment contracts and future hires, and want to ensure that they comply with the Bermuda Labour Code should do the same.
Persons wanting more information or who are interested in watching the Global Forum for a Human-centered Recovery can find more information on the International Labour Organization’s website at www.ilo.org