Parliament started debating draft changes to the Civil Code for labour reform. Plans to primarily curb the abuse of short-term contracts have been discussed going back to the days of the Island Council, but due to the seasonal nature of the tourism economy it remains a sensitive matter.
Instead of three such consecutive contracts of 36 months each, only two of 24 will now be allowed after which permanent service has to follow, although certain useful exemptions such as three-year contracts for lawyers could still be permitted. As usual, compliance is key and better administrative enforcement tools were mentioned.
The proposal also seeks to prevent excesses like that of the Pelican saga, when the property was transferred and the resort’s workers were left out in the cold. One of the protective steps is that if a new ownership takes over and employees voluntarily quit because of substantial changes to their job conditions, severance pay must still be awarded even though there is no forced dismissal.
Member of Parliament Rodolphe Samuel said while it is understood that the personnel will remain with the enterprise, this is not sufficiently anchored in the draft legislation. That may be so, but it’s a thorny issue where one must also consider, for example, bankruptcy scenarios.
Most of the adjustments were long in coming, but the new situation the country and its tourism economy are in following the catastrophic passing of Hurricane Irma cannot be overlooked. Adding two weeks pregnancy leave to the 12 women already get as recommended by the International Labour Organisation (ILO) seems reasonable enough, but don’t underestimate the impact on a badly hurting business community either.
As for the consensus document between the social partners, that’s not what the elected representatives will be voting on. Some of the related suggestions such as “portable” mandatory general pensions and “true unemployment benefits” replacing the current cessantia (redundancy scheme) need to be scrutinised more closely than ever before they can be implemented, due to the extraordinary circumstances in which the island finds itself.
Creating new extraordinary leave possibilities other than death and funeral of family, childbirth, moving, etc., is alright, so long as this is indeed left up to free negotiations in employment agreements. Realistically, anything that can increase the burden on entrepreneurs at this time of deep crisis must be handled with the greatest possible care.
