Workers set for stronger wage protections

The government is taking a zero-tolerance approach to worker exploitation, it said on Tuesday, as it laid a new bill before Parliament to bring sweeping protections aimed at strengthening their rights and changing how employers treat employees.

Minister of Labour Colin Jordan introduced the Protection of Wages Bill in the House of Assembly, the latest in a raft of legislation aimed at boosting workers’ rights as the government nears the drafting of a formal labour code.

The bill formally recognises wire transfers and direct deposits as wage payments while giving workers the right to choose the financial institution into which their wages are deposited. Employers would not be allowed to pass any associated banking costs on to employees, the minister said.

The legislation retains the existing requirement that workers must be given reasonable time to convert their wages into cash, he added.

The bill also introduces tougher penalties for employers who deduct money from workers’ wages but fail to pass it on to the intended organisations, including the National Insurance and Social Security Service, trade unions, credit unions, banks and the Barbados Revenue Authority.

Jordan said: “Let me point them to section 252 of the bill;  If those monies are not paid over, the penalty is $30 000 or up to three years in prison. Then that $40 or $50 can cost you up to $30 000.”

He reiterated that charging interest on salary advances remains illegal and announced that so-called “retention” deductions, in which employers deduct money from workers’ wages to offset business risks, will also be illegal under the new legislation.

The bill also retains the long-standing one-third rule for salary advances and overpayments, meaning employers cannot deduct more than one-third of a worker’s wages for those purposes. But the restriction on the assignment of wages for mortgages and hire-purchase agreements would be removed, allowing households greater flexibility in managing their finances, Jordan said.

Apart from statutory deductions, employers must obtain workers’ written consent before making any deductions from wages, according to the bill.

Jordan described another major reform as giving workers preferred-creditor status if an employer becomes insolvent, enters receivership, or goes bankrupt, ensuring unpaid wages receive priority when company assets are distributed.

The legislation also makes it easier for workers to pursue complaints by allowing matters to be referred to the Employment Rights Tribunal through the Chief Labour Officer, while preserving workers’ right to seek redress through the courts.

The government itself would also be bound by many of the legislation’s provisions, Jordan stressed, saying the State must set the standard for the fair treatment of workers.

Jordan also announced that amendments to the Employment Rights Act and the Labour Clauses (Public Contracts) Act are being prepared, while new rates of pay and conditions of employment for tourism accommodation workers will soon be introduced:

“I will shortly be establishing new rates of pay and conditions of work for workers in tourism accommodation across the country.”

Jordan touted the Protection of Wages Bill as a reflection of the government’s human-centred approach to development, balancing stronger protections for workers with increased productivity:

“A bill that seeks to amplify our commitment to protection and production. Protection of those people on whose backs, on whose shoulders the development of our country rests so that given that protection, those people, those individuals, those human beings are able to produce, produce for themselves, produce for their dependents, ultimately to produce for their nation, to produce for our nation.”

The minister said the government would not tolerate the exploitation of workers, whether they are native-born, CARICOM nationals or migrant workers.

“We have determined that we will not allow exploitation of workers in this country and when I say exploitation of workers, I’m speaking not just to Barbadian-born, but I’m also speaking to CARICOM nationals; I’m also speaking to migrant workers.”

Jordan also sent a blunt message to employers who believe the government has gone too far with labour reforms:

“There are some employers who believe that we’ve been doing too much with respect to legislation. That it may be becoming too cumbersome to have business. I have a simple message for employers; If your business model does not allow you to treat your workers properly, then shut the place down.”

He also directly addressed businesses new to Barbados, saying they are expected to respect the country’s industrial relations culture and occupational safety standards:

“In some cases, this disrespect for our traditional values is coming from newcomers… I use this opportunity to say to all those who will come, or those who have come, we expect nothing less than decent approaches to industrial relations and to occupational safety and health.”

The legislation is based on International Labour Organisation (ILO) standards developed jointly by governments, employers and workers worldwide, Jordan said.

The labour minister reiterated the government’s commitment to introducing a comprehensive Labour Code, saying it forms part of Barbados’ Decent Work Country Programme 2025-2030 with the ILO.

“That labour code is really the ultimate as it relates to consistency of legislation, consistency of definitions…. It is part of our Decent Work Country Programme 2025 to 2030, which we’ve signed with the International Labour Organisation.”

The ministry recognised that strong inspections and enforcement would be essential if the legislation was to make a real difference, said Jordan.

“The ministry that I have the honour to lead recognises its responsibility to the workers of the country…. We recognise that if there’s to be decent work, then our ministry, its legal department, but also importantly its inspectorate, have a critical role… We commit ourselves to understanding that role and acting in such a way as to make decent work a reality in this country.”

(LG)