The Chamber of Commerce has apologised for inaccurately stating it was never consulted by the Government over legislation designed to ensure tips and gratuities go to employees.

MPs passed the Employment (Protection of Employee Tips and Other Gratuities) Amendment Act 2023 in the House of Assembly on Friday.

Last week, Danielle Riviere, who took over as the chamber’s chief executive in February, told the media that it was “alarming” that the Government did not consult it, or the industries it represents over the legislation.

The Chamber issued a retraction yesterday, saying: “Upon further review and in response to new information, the chamber acknowledges that a consultation was offered but did not take place.

“At a meeting held prior to the new chief executive’s arrival in February 2023, Government met with chamber representatives and changes to the Employment Act were discussed regarding how tips, gratuities and service charges are paid to employees. Government requested that proposed changes be submitted, and they were not.

“Fast forward to Friday, September 22, minister Hayward tabled the changes to the Act in the House.

“No draft legislation was shared with industry representatives before this tabling so there was no discussion about the proposed legislation as it is written.

“We deeply regret any confusion that our initial statement may have caused and wish to emphasise our commitment to providing accurate and transparent information to the public and presenting an accurate account of Government’s engagement.

“It is essential that our communications reflect the facts as they stand and we apologise for any inaccuracies in our previous press release.”

Jason Hayward, the Minister of Economy and Labour, insisted in the House on Friday that the necessary dialogue had taken place and that Marico Thomas, the president of the chamber, had reached out to him saying it would be issuing a retraction.

Mr Hayward added: “Like many I was shocked by the headline where the chamber has condemned the Government, since which the president has reached out to me directly and said he will be issuing another statement.”

Mr Hayward said that the reputation of the Government had been “spoilt” regardless.

The legislation will define tips and gratuities, prevent the withholding of the money and establish safeguards to ensure they go to the workers.

It requires employers to have a clear policy for ensuring fair distribution.

The amendments will also lay out civil penalties for employees found to breach the rules.

Before Mr Hayward made the revelation about the chamber’s retraction, a number of Progressive Labour Party MPs expressed confidence in him.

David Burt said he was “incensed” when reading the headlines and said it was the work of the “combined opposition”.

The Premier added: “We should speak about the combined opposition attack on the Government in an attempt to paint it as something it is not.

“I know for a fact that the Bermuda Hotel Association and the Chamber of Commerce were consulted. There were minutes of the meeting the minister can share.

“They were part of meetings last year on this and had pledged to get back to the Government and, due to whatever issues they had, they didn't.”

Mr Burt made reference to there having not been a proper handover at the Chamber of Commerce but said that he did not expect to see headlines in the press highlighting the admission and subsequent apology.

Zane DeSilva, a PLP MP, said he was also shocked when he read the headlines but added: “When you have Bills like this, you shouldn't have to consult anyone”.

Mr Hayward said procedures will be in place to ensure employees understand the policies in place under the legislation and that he hoped the enhanced protections will increase productivity within the hospitality industry.

He said: “We can’t trust employers to simply do the right thing — we have to put standards in place within the workplace … This is about doing what is right on behalf of the employees.”

Derrick Burgess, Deputy Speaker of the House and a veteran trade unionist, said he welcomed the protections provided to employees.

“Management have been exploiting this fund for many, many years. A lot of the guests are thinking that the staff are getting the money but they are not.”

Mr Burgess lauded that there is a fine attached, adding: “When you mess with someone’s income — what they work for — it is a serious offence. We thank the minister”.

Jamahl Simmons, a PLP MP, said “Bills like this excite me — Bills that actually help people”. He added: “It is my hope it will begin to put more money into the pockets of people in this industry.”

PLP MP Christopher Famous said: “There are people who say we need to expand our population. I agree. The industry that is going to expand the most is hospitality and the hospitality workers have been working under minimum wage … I fully support this Bill.”

Craig Cannonier, a One Bermuda Alliance MP, welcomed the implementation of the framework.

• UPDATE: this story has been amended to include a statement from the Chamber of Commerce