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BEC chief: Leave OT clause alone

Employers Council president Eddie Saints

The head of the Island's main employers' organisation - the Bermuda Employers' Council - yesterday called for enforcement of overtime pay policies put in place under the Employment Act 2000.

BEC president Eddie Saints told an audience of hundreds of business people gathered at the organisation's annual general meeting at the Fairmont Hamilton Princess that it was time for businesses to adopt an overtime policy, which came into effect, under the Act, from March, 2001.

The overtime clause in the Act made it mandatory for non-salaried employees - those paid on a less than monthly basis - to be paid overtime wages or be given time off in lieu for working beyond 40 hours a week.

But the overtime clause has been a point of unhappiness for many employers, with some calling on Government to either bump up the number of hours that could be worked before overtime pay came into effect or to keep a current clause - that could be abolished - that allows employers and employees to negotiate away the right to be paid overtime.

Minister of Labour, Home Affairs and Public Safety Randy Horton - who was present at yesterday's luncheon - has said he might consider following the lead of the former Minister, Terry Lister, in looking at fixing rates on an industry by industry basis.

But yesterday, Mr. Saints said making changes to the clause - which was put in place after consultation and debate across business sectors - on an industry by industry basis, could create an administrative headache and called for it to be left alone, and enforced.

“The only issue that remains unresolved (from the Employment Act 2000) is the proposed handling of overtime. The former Minister of Labour, Home Affairs and Public Safety, Mr. Terry Lister, was adamant about the enforcement of compulsory overtime but welcomed submissions from industry sectors to apply for exemptions recognising the unique nature of employment varied significantly between industry sectors.

“Our concern has been the removal of flexibility between employers and employee in handling overtime, payment and time in lieu. The passing of such amendment takes away the discretion and choice between these two parties and replaces it with mandatory overtime payment with no regard for the inflationary effects in the certain industries or the need of many employee who depend on the extra hours to made ends meet.

“Granted, the intention is to receive submissions from various industry sectors for exemption to this position.

“However, we feel that implementing the intended changes to this overtime clause will also leads to more administration and policing by the Ministry that is already having its challenges in administering the existing legislation.”

Mr. Lister said it was the view of the BEC that “this aspect of the Act (be left) alone and to deal with any violations of improper practice of employer by following the existing mechanisms and procedures provided for under the Act.”

He concluded: “Our problem isn't the current Act itself, but in its enforcement.”