Two milestones in the Progressive Labour Party's first three years in Government has been the enactment of the Employment Act and the relaxation of the 60/40 exemption rule for local banks.

Amendments to the Employment Act were not specifically outlined in the PLP's platform leading up to the last election, but amendments that received widespread support from Government, the opposition and the private sector were passed by the Senate in December.

But The PLP platform said it would table legislation to extend the time limit for the operation of exempted companies from 2016 to 2020 something which it has not done.

Referring to the Tax Exempt Undertakings Act of 1996, the manifesto claimed: "This proposal will take due account of the factors external to Bermuda over which we will have no control."

Finance Minister Eugene Cox could not be reached for comment yesterday.

Of an employment act, the platform said: "A PLP Government will move swiftly to uphold the rights of both employee and employer unions with specific legislative remedies for the middle management groups who have, to date, been ignored in labour legislation."

The new Act covers the requirements for written contracts, a 40 hour work week, and overtime pay beyond that, two weeks holiday after one year's employment and maternity and sick leave.

In addition, an employment tribunal has been created whose decisions are enforceable by law.

The Act underwent eight re-drafts after extensive consultation with employers and workers associations, and was supported by the opposition in the lower and upper houses.

Former Home Affairs and Public Safety Minister Paul Cox said the Act ensured a host of basic rights that were necessary to bring Bermuda into the 21st century.

In December 2000, the Bank of Bermuda became the first bank to be granted exemption from the 60/40 ownership rule.

The relaxation of the rule - part of a commitment made by Finance Minister Eugene Cox to the OECD - allows companies given an exemption to have more than 40 percent foreign ownership

In April, the Island's oldest Bank, the Bank of N.T. Butterfield was granted exemption from the rule.

The stocks of both banks more than doubled on the Bermuda Stock Exchange in anticipation of the banks listing on foreign stock exchanges in a bid to raise money.

In May, an exemption was granted to Bermuda Commercial Bank. So far none of the companies granted exemption have listed on foreign exchanges.

The relaxing of the rule was seen as a double-edged sword because the investment it might bring is needed if Bermudian companies are to complete in the global market, but it also means that Bermudians will have to relinquish control to overseas forces who may not have the Island's best interests at heart.

Mr. Cox tried to ensure that once the Bank of Bermuda was granted exemption, it would "maintain the Bermudian mind and management of the bank," and imposed several conditions such as adopting a bye law which will prohibit shareholder controllers with more than 40 percent of the shares of the bank from exercising the voting rights of those shares in excess of 40 percent without the permission of the Minister.

Other restrictions include: Reporting to the Minister on shareholders who have ownership control of ten percent, 30 percent and 40 percent; reporting annually to the Minister on the domestic programmes which the bank maintains including loan programmes and community development initiatives; reporting to the Minister on training and employment initiatives; consulting with the Minister on any strategic plans to change, wind up or relocate overseas; and maintaining the Bermudian mind and management of the bank.

This means that the majority of the board of the bank must be Bermudian, the head office must remain in Bermuda, and the shareholders' meetings must be held in Bermuda.

The 60/40 ownership rule means that any company which is listed as a local company must be owned by a 60 percent majority of Bermudians or Bermudian companies. The other 40 percent can be owned by people or institutions from off the island. Conversely, international companies have an 80/20 rule. This states that Bermudians can only own 20 percent of companies registered as exempt or international.

International business.