Management and workers are expressing concern over low redundancy rates offered under the new Employment Act, said a leading litigation lawyer.

The law, which came into force in March, offers two weeks for every year of working up to ten years and three weeks for every year after that to a maximum of 26 weeks.

Kelvin Hastings-Smith, who is litigation manager for Appleby, Spurling and Kempe, said: “We are living in economic uncertainty.

“If companies are looking at these things when they visit the redundancy provisions in the Act there is not a great deal of compensation. For anyone working a long time the maximum they get is half a year's salary.

“That might be fine if you are a big wig executive but if you are earning $30,000 that's not a great deal of money. Perhaps in larger organisations employees are able to negotiate better packages. If they don't the Act doesn't help a great deal.”

He said both workers and bosses had raised concerns but Bermuda Employers Council Executive Director Andrea Mowbray downplayed concerns because the fallout from September 11 had not been as bad as feared.

She said most collective bargaining agreements offered up to 54 or even 60 weeks but the law would ensure a minimum in companies which could not afford more. Ms Mowbray said: “Twenty six weeks is a lot of time to find another job.”

And Bermuda Industrial Union President Derrick Burgess said redundancy packages were not a big issue because union collective bargaining agreements could offer better benefits.