Government is set to remove the get-out clause which allows companies to negotiate away overtime payments stipulated in the Employment Act 2000.

The law says overtime must be paid after 40 hours but, if the employer and employee agree, that overtime can be paid at a flat rate.

But Labour Minister Terry Lister said employees had complained they were being intimidated by employers into signing an employment contract they didn't agree with.

Mr. Lister said: "I think we are better off putting everyone in and taking out industries that need to come out. It's a healthy approach.

"We are hearing a lot of employees feel intimidated to sign. Who's to say if that's true or not. I think we should take that whole scenario away."

The issue has been discussed between Government, employers and unions at the Labour Advisory Council.

The Minister said there would be another meeting in the next two weeks with legislation changes likely this month.

It was up to industries to make the case of where the overtime should kick in, said Mr. Lister. For example he said it could begin after 40 hours, 45 hours or 48.

Mr. Lister said the restaurant, retail and construction industries were claiming they needed breaks because of economic hardship and that employees needed the extra hours to get a worthwhile wage.

"We need something that works for both sides."

Asked why the booming construction industry was pleading hardship, Mr. Lister said industry leaders had complained building costs had grown so much in the last four years that any overtime increase would have a serious impact on their square foot costs.

He said: "I hear that but I don't really understand it."

Building industry leaders were saying their square foot costs had grown from $150 a square foot in 1998 to $300 in 2003 despite labour costs only growing at three percent per annum said Mr. Lister. This rise did not take into account land inflation said Mr. Lister. "It makes no sense."

However Bermuda Employers Council (BEC) president Eddie Saints urged Government to think again over its bid to abolish the overtime get out clause.

Mr. Saints said: "We are proposing we don't do it just yet. Employers feel there could be some adverse economic affects."

He declined to discuss it further ahead of the meeting but praised the rationale behind Government's changes to work permit regulations, announced on Friday.

Work permit applications will now have to be accompanied by a Statement of Employment which sets out the essentials of the relationship between the prospective employee and employer.

Mr. Lister said this was to stop employers trying to make jobs less attractive to Bermudians by offering lower wages and ensure that non-Bermudian employees knew their conditions of employment including salary and benefits before coming to prevent exploitation.

The Employment Act mandates every employer provide their employees with a Statement of Employment.

Mr. Lister said Immigration would turn down work permits if it was felt the terms being offered would not make it economically viable for an expatriate to come to Bermuda.

He said Canadians offered $35,000 tax free might think they had died and gone to heaven only to find such a salary made it difficult for them to survive in Bermuda.

"We are trying to make sure that a salary offered to a foreigner would be acceptable to a Bermudian."

He said foreigners should be able to enjoy financial benefits of their stay in Bermuda while the Island benefited form their skills.

"No one should be economically disadvantaged.

"What we are trying to do is ensure there is nothing untoward going in salaries in the country."

He said the use of the contracts already stipulated in the Employment Act 2000 was the least onerous and intrusive way of Government getting that information.

Mr. Saints said: "I don't support bad employment practices. If employers take advantage of overseas employees then we need to deal with this.

"I believe he (Mr. Lister) is sincerely concerned about certain employment practices taking place by a minority of employers.

"He is trying to make sure the employer hires people both locally and overseas at a fair rate.

"He's trying to make sure when people come in they don't come on false pretences."