Fines proposed for employers who ignore tribunal orders
A new policy paper on the Bermuda Employment and Labour Relations Tribunal has uncovered a lack of compliance with tribunal orders.
Strengthening the Enforcement Powers of Bermuda’s Employment Tribunal proposes that persistent non-complying employers face civil penalties of $15,000 per impacted employee, on top of the original award.
Employers could also be named on a public compliance watchlist.
Speaking in the House of Assembly on the policy paper, Jason Hayward, Minister of Labour and Economy, said employer non-compliance was the most significant issue to be addressed.
The tribunal serves as a key forum for resolving disputes between employers and employees, offering an accessible alternative to the courts.
“While the tribunal has served Bermuda well, experience over recent years has demonstrated that aspects of the current legislative framework require modernisation,” Mr Hayward said.
He said that when an employee successfully pursues a claim before the tribunal and receives an award, that award must mean something.
“Justice delayed is difficult enough; justice denied through noncompliance is entirely unacceptable,” he said.
Other concerns included delays in proceedings, procedural gaps that place employees at a disadvantage and challenges associated with statutory decision-making timelines.
“The Government is committed to ensuring that tribunal decisions are not merely advisory in nature but are respected, enforceable and capable of delivering real outcomes,” Mr Hayward said.
The Government is proposing a graduated enforcement regime. Employers who fail to comply with awards would first receive a formal notice and an opportunity to rectify the breach. Penalties would follow if the employer continued to be non-cooperative.
“Currently, tribunal decisions are required to be issued within 30 calendar days,” Mr Hayward said. “While well-intentioned, this requirement has proven challenging in practice.”
He said the proposal would provide tribunal members with a more realistic period to prepare comprehensive and well-reasoned decisions.
“These measures are designed to strike an appropriate balance between fairness and accountability,” Mr Hayward said. “Employers will be afforded reasonable opportunities to comply, but persistent disregard for tribunal decisions will carry both financial and reputational consequences.”
• For the full report, see Related Media
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