The Bank N.T. Butterfield has reportedly frozen the savings account of a former employee, claiming she owes them for maternity leave pay.

It was not clear how much the woman, who was not identified, owes the bank.

But Bermuda Industrial Union president, Derrick Burgess, yesterday disclosed the case to highlight contraventions of the International Labour Organisation's convention on women's rights.

Mr. Burgess noted that maternity leave will be one of the issues addressed this week at the ILO's annual conference in Geneva, Switzerland.

And he promised to take the issue to Cabinet. He also did not rule out new legislation to redress such alleged injustices.

Speaking in a Press conference at the BIU, Mr. Burgess revealed that the 23-year-old woman -- who had her baby in August last year and left the bank this May -- had her savings account frozen, her pay withheld, and was told that she owed the bank a further $1,146 to make up the total owing to the bank.

He said both banks and other establishments in Hamilton had a policy that maternity leave would not be paid if the mother resigned before serving a further year after returning to work.

"Employees in these establishments should join a union,'' Mr. Burgess stressed and he suggested that employees at the bank needed to organise themselves. He added that after one year of service female employees should be entitled to maternity leave and that the banks and other employers' policies to force women to serve a further year after their children were born were "barbaric''.

Mr. Burgess also expressed his concern that seizing a person's savings may not be legal.

"In any event it is wrong,'' he said.

Mr. Burgess added that he understood that the employee had a contract with the bank where she had agreed to these terms concerning maternity leave benefits, but his point was that the policy was outdated.

He said such practices ran contrary to the ILO Convention on Child Labour and Maternity Leave and that this was in essence a human rights issue.

Bank freezes savings account When asked whether Government would propose legislation to redress the matter, Mr. Burgess said: "We shouldn't have to legislate. People should do what is right.'' But he accepted that this was the likely course that would be followed.

When contacted by The Royal Gazette , a Bank of Butterfield spokesman was unable to comment on the matter yesterday.

But in a Press statement faxed later to the paper, the bank outlined its maternity benefits policy.

"Our policy with respect to maternity leave is to offer our staff who have been employed by the organisation for a minimum period of 12 consecutive calendar months the following: guaranteed employment on the expiry of maternity leave at the same rank and salary previously; guaranteed no loss of seniority during this period; guaranteed eight weeks leave of absence on full pay; guaranteed four weeks leave of absence on half pay; and guaranteed continuation of health insurance cover and all full-time staff benefits including pension rights,'' the bank said.

"In accepting the above,'' it wrote, "the employee agrees to remain in the bank's employment for at least 12 months on return to work.

"All staff who wish to take advantage of these benefits advise us of such and confirm their agreement, in writing.'' And while the bank said it could not discuss specifics concerning any individual employee, it stated that it continually reviewed its benefits package. "Our approach is in-keeping with other employers on the Island.''