Employers told not to use minimum wage as excuse to cut pay
Employers have been warned not to cut wages ahead of the introduction of the minimum wage next month.
Jason Hayward, the Minister of Economy and Labour, insisted that any “manipulation” of salary structures connected to baseline $16.40 an hour payment from June 1 would face repercussions.
The minister said: “The ministry wishes to advise employers and employees that this is not an opportunity to alter current base wages downward or introduce lower basic, base wages for new employees.”
Referring to the pay reform, which is being introduced through a Government order, Mr Hayward said: “Employers found intentionally manipulating employees’ wages to circumvent the order, corresponding legislation or policies, should be reported to the Department of Labour, where the matter will be reviewed and managed following the relevant legislation.
“This monumental step ensures employees in Bermuda have the right to a minimum wage. This Government is committed to ensuring employees receive a dignified wage.
“The Act also gives labour Inspectors within the Department of Labour the authority to investigate an employee’s complaint of not being paid as per the order and, resultantly, issue enforcement notices to employers who fail to comply with the order or this Act.
“The order sets the minimum hourly wage rate at $16.40 and allows a hybrid payment structure for employees who receive commission, gratuities and services charges.
“These employees will receive a basic, base wage set by their employer, to which service charges, gratuities, and commissions are added to guarantee a minimum hourly wage rate of $16.40.
“Where an employee’s basic wage plus service charges, gratuities, and commissions do not equal the minimum hourly wage rate of $16.40, their employer must provide the difference.
“Employers, employees and their representatives who have questions concerning the minimum hourly wage rate should contact the Department of Labour.
“The phone number is 297 7716, or e-mail at sstephens@gov.bm. As a reminder, employment violations may be reported at bermudajobboard.bm/evtl.”
Mr Hayward admitted in the House of Assembly in March that he did not know how many employers would have to transition their salary structures ahead of the new minimum wage.
The minister told MPs: “I do not know the exact number of employers who have employees that fall underneath the minimum wage.”
Need to
Know
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
