NASSAU, BAHAMAS- The government’s proposal of an insurance redundancy bond as part of its broader labour reforms has already drawn sharp criticism from employers with a Bahamas Hotel and Restaurant Employers Association (BHREA) executive calling it the “most dangerous recommendation” and warning it could impose significant costs on businesses.
BHREA executive director Odessa Gibson sounded the alarm during a Bahamas Hotel and Tourism Association (BHTA) meeting on Thursday, noting that the bond was not raised in earlier consultations with stakeholders and there has been very little clarity on the issue.
“What is being contemplated, as far as we can determine, is that the government will introduce a bond or insurance for businesses to ensure that employees receive redundancy or termination benefits where an employer closes down, or goes into insolvency,” Gibson said.
She emphasized that critical details remain unresolved. “Our specific questions were who will manage this process, how will employees be assessed to determine what types of contributions they will make to the bond because they are using the term ‘insurance,’ when the bond assessments are done and submitted to the government, will those sums find themselves into the consolidated fund or will they be ring-fenced? Because we all know that if they go into the consolidated fund, they will be lost, and the objective to protect the worker will be lost.”
Gibson noted that the bond issue “was not introduced during earlier consultation with stakeholders,” raising concerns about the government’s engagement and transparency. “At this stage, we have not received answers. The Tripartite Council has not received answers. This, in my view, is the most dangerous recommendation that has been made by the government and the Department of Labour because it comes with no details,” she said.
Gibson noted that public consultation sessions on the proposed labour reforms are scheduled for New Providence on October 7 and Grand Bahama on October 8.
In addition to the bond proposal, Gibson told industry stakeholders that the reforms include expanded maternity leave from 12 to 14 weeks, accommodations for adoptive and breastfeeding mothers, two weeks’ and paid paternity leave for male parents once every three years. Mental health and wellness leave are also being introduced. The reforms contemplate irregular work hours of up to 10 hours a day, with employees still entitled to overtime pay, and an eight-hour minimum break between shifts. Other measures define probationary periods, standardize benefits for different categories of employees, formalize remote work and ensure that managers and supervisors receive time off for overtime worked.
“The white paper after some pressing by industry stakeholders was finally issued in April of this year, and we are all invited to attend a one-day symposium on May 11 to discuss those recommendations that survived those discussions we had last year,” Gibson said. “In terms of recommendations that were levied, these include concepts of flexible time, suggested increases to maternity leave, the introduction or concretization of paternity leave, a standard paid break, enforced definitions for categories of employment. There are definitions for the various categories of employment offered, including casual workers. It also includes the concept of remote work and a mental health leave. Additionally, it wants to define the probationary period and introduce the basic employment contract template to be included in the revised Employment Act.”
Gibson also outlined changes to industrial relations procedures, noting that the reforms strengthen conciliation processes where the Department of Labour is given more authority to address disputes before escalation to the Minister or Industrial Tribunal.
While many of the reforms aim to enhance worker protections, Gibson warned that the redundancy bond could create significant burdens for employers. “Employers cannot thrive because of all the additional costs, and this leaves employers in a very difficult position,” she said. “If it is implemented after the public consultation process in October and gets approval from Cabinet, it means all opportunity to make responses concerning this introduction for this concept will be lost.”
