Update on Severance Amendments

On January 5th, 2010, the Labour Commissioner gave an interview on both Love FM and Channel 5 regarding the severance amendments that were proposed in 2007.

The BCCI reached the Labour Commissioner (LC) for clarity on his statements today January 7th. The LC notified us that he called into the Love FM Radio Show to clarify a point made by a caller who had left his job and was complaining that he only got 1 week pay for each year of service and that the Severance payments had been amended and he should have gotten 3 weeks pay. The LC told us that after the show the Radio and Television stations called him for an interview which he gave.

The status of the ”Quick Amendments “ is as follows:
• The Cabinet has approved the quick amendments giving 2 weeks wages for tenure over 10 years and 1 weeks wages for tenure over 5 years but less than 10.
• The Attorney General’s Office has finished with the first draft of the legislation and has given to the LC which he is in the process of reviewing which should take approximately 1 month.
• The law will NOT be retroactive, if a person has 12 years of service before the passage of the law and continues working for the same employer for an additional 3 years, upon termination by the employer or resignation he will get paid at 1 weeks wages for the first 12 years and 2 weeks wages for the 3 years.

This severance issue will come to the forefront again in 2010. The BCCI’s position remains unchanged:
1. The Government should not consider any initiative that threatens to increase the cost of doing business in an economic recession.
2. The Private sector would prefer to understand and plan for the absorption of a revised labour and industrial relations environment in its entirety rather than the piecemeal approach postulated by the severance amendments.

We will continue to monitor this very closely and will keep you updated.

Please click on the link below to view BCCI's Submission to GOB on the proposed severance amendments.

BCCI's Submission to GOB

Best Regards

Kim Aikman
Manager Membership & Labour
Belize Chamber of Commerce & Industry
4792 Coney Drive
2nd Floor , Withfield Tower
Belize City, Belize
Phone: 223-5330; Fax 223-5333
Email: membership@belize.org
www.belize.org