House Passes Amendments to Employment Termination and Redundancy Act

The House of Representatives yesterday (June 3) approved amendments to the Employment Termination and Redundancy Act 2008, to allow increased fines for companies and individuals who breach the Act.
Minister of Labour and Social Security Pearnel Charles, who piloted the Bill, said amendments to the Act will also allow the Resident Magistrate Court to adjudicate on matters relating to redundancy entitlement not exceeding $1 million.
“Currently Section 17 of the Act restricts the jurisdiction of the Resident Magistrate Court to adjudicate on matters relating to redundancy entitlement or any other claim arising under the Act. If it (the claim) exceeds $7,000, the Resident Magistrate court cannot handle it,” Mr. Charles said.
This, he said had resulted in “severe hardship to the majority of persons who wish to make claim under the Act, as some claims are far in excess of $7,000.”
Mr. Charles also added that the Act is being amended to require employers to give the relevant Minister information in writing concerning dismissals by reason of redundancy.
Meanwhile, the Minister said the Ministry has commissioned a study of the Act and that preliminary consultations with Government officials, trade union leaders, and Human Resource Managers have already been held. He noted that the Act is important as “we seek to look to review an entire framework of labour legislation. We will have to give due and speedy consideration according to the policy of this Government.”