Business leaders have been strongly warned that Government may review its decision not to force through a controversial overtime law.

Home Affairs Minister Randy Horton issued the alert as he explained why a clause making premium overtime compensation mandatory had been ditched. The Employment Amendment Act 2006 was passed in the House of Assembly on Friday ? without the overtime clause that prompted a political dust up two years earlier.

But the Minister warned business chiefs it could still return to the political agenda. He added: ?Employer organisations have been reminded unequivocally that substantiated reports of unfair treatment of employees ? especially with respect to overtime provisions ? may result in the Government re-visiting its decision not to pursue the mandatory overtime provision.?

The missing ?opt-out?, which would have tied employers and employees to over hours rates to all non-professionals who do more than 40 hours a week, was in the Employment Amendment Act 2004 but was rejected by the Senate.

Mr. Horton said at the time that abuse of overtime was widespread in certain sectors of the economy ? and that it was ?unconscionable? that people should attempt to justify work of up to 60 and 70 hours per week with no overtime rate or time off in lieu.

However, employees raised concerns about the impact the extra-hours provision would have on business costs.

After lengthy talks between Government and business chiefs since 2004, Mr. Horton told the House on Friday that Government could have let the legislation ?sit for a year? before re-introducing it to Parliament where it would automatically have become law.

But after ?extensive consultation?, the Minister said the decision was taken to introduce an amended act ? without the contentious provision.

Explaining why Government had decided to ?step back? at this time from a stance it ?strongly believed was the right one?, Mr. Horton cited one reason as ?persuasive representation? from employer groups.

He added that it was a ?regrettable reality? that most employers remained strongly opposed to the mandatory overtime provision. Many non-contentious amendments in the act ? backed by business bosses ? would be jeopardised by the ?fierce opposition? to the mandatory overtime clause.

Complaints received by the Labour Relations Office pointed to the need for mandatory overtime in Bermuda, he told MPs.

And he warned: ?Now the onus is once again on employers to do the right thing and for employer organisations to police their members to ensure that employees are treated fairly where overtime is concerned.?

The Minister added: ?Government has accepted the pledge of employer groups to police their members vigilantly and effectively, thereby minimising the likelihood of occurrences of unfair practices in the workplace ? especially with respect to overtime provisions.?

Opposition MP Grant Gibbons backed the overtime decision, but said he was surprised how long it had taken the revised legislation to get back to the House. ?It could have come back sooner if he had started these negotiations earlier.?

Government MP Derrick Burgess said that technical officers needed to know the Employment Act, and added that collective bargaining agreements struck by unions superseded it.

Shadow Finance Minister Pat Gordon-Pamplin said the UBP did not want to see workers exploited, but did not want to see them disadvantaged by the overtime clause. She suggested a more flexible arrangement was needed.

Mrs. Gordon-Pamplin added that workers needed protection from ?unscrupulous? firms that put shareholders first in the winding-down process, and she supported changes in the act that strengthened workers? rights by confirming that wages, severance allowance and holiday pay have priority over other claims.

But she said pension contributions seemed to take second place. ?We do not want 65-year-olds to be told your company went bust and we have no pension money for you.?

Minister Horton said this pensions suggestion would be looked at.

Earlier, the Minister stated that the Employment Act 2000 was ?watershed legislation? that ensured fair and consistent standards of employment for the first time in Bermuda?s history.

He said the seven new amendments were the result of nearly four years of talks with employment groups and would increase effectiveness.

They include a clause stressing that the act applies only to companies and workers in Bermuda. It also clarifies the priority of payments for companies which have been wound up.

The Employment Act amendments will now be discussed by the Senate.