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Govt. backs off from mandatory overtime compensation law

Government has decided not to try to force through a controversial clause making premium overtime compensation mandatory.

Yesterday the Employment Amendment Act 2006 was tabled in Parliament but made no mention of abolishing the ?opt out? which lets employers and employees agree not to be bound by over hours rates.

Government had abolished the ?opt out? to the Employment Act 2000 in the House of Assembly in December 2005 ? only for it to be overturned by the Senate.

Shortly afterwards Labour, Home Affairs and Public Safety Minister Randy Horton said abuse of overtime work was widespread in certain sectors of the economy.

And he said 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 months of behind-the-scenes talking between Government, employers and unions has left the original clause, which applies to non-professionals working more than 40 hours a week.

Bermuda Employers Council William DeSilva said: ?We applaud the Minister. He?s made a sensible balanced decision after careful consideration.

?It?s in the best interests of the employer and employees.?

Asked if non-unionised workers had lost out because of the decision Mr. DeSilva said the existing legislation would help them.

Workers being pressured to accept inferior overtime compensation could appeal to the Labour Relations Department, said Mr. DeSilva. Bermuda Industrial Union president Chris Furbert said the Labour Ministry needed to publicise the rights of unorganised workers enshrined in the bill to stop some employers abusing them.

He said if employees refused to sign away their rights then the bill would protect them.

?They need to understand what their rights are.?

The Employment Amendment Act 2006, which will be debated in the coming weeks, makes amendments to the original Act including giving the Minister the power to exempt a particular class of employment from the requirement to pay severance allowance.

It also clarifies the priority of payments for companies which have been wound up.