BEGINS

Ministry of Immigration, Citizenship, Labour and Employment Services

Urgent Public Notice – Lay-off and short-time & Severance Pay

The Ministry of Immigration, Citizenship, Labour and Employment Services would like to remind Employers of their obligations and Employees of their rights with regards to Lay-offs and short –time. We are conscious of the economic strain the Covid-19 pandemic has placed on the business community in the Turks and Caicos Islands and the world at large. It has come to the departments attention that it is the intent on employers to either lay-off staff or decrease their hours of work i.e. place them on short-time.

The Ministry would first like to recommend that all employers make every effort where possible to create alternative work schedules i.e. allow staff to work from home, create compressed and flexible work schedules in order to retain staff during this period. Secondly employers are reminded that all changes to the terms of employment needs to be properly documented and communicated to the staff in writing and in accordance with the applicable laws of the Turks and Caicos Islands.

Where the circumstances require employers to place staff on short-time, Employers are encouraged to be mindful of Part IV 13. (2) and 14 of the Employment Order.

13. (2) Where by reason of a diminution in the work provided for an employee by his employer (being work of a kind which under his contract the employee is employee is employed to do) the employee’s remuneration for any week is less than half a week’s pay, he shall for the purpose of this part be taken to be kept on short time for that week.

14. An employee shall not be entitled to severance pay by reason of being laid off or kept on short-time unless he gives in writing to his employer indicating (in whatsoever terms) his intention to claim severance pay in respect of lay-off or short-time(in this order referred to as a “notice of intention to claim”) and, before the service of the notice, he has been laid-off or kept on short-time for eight or more consecutive weeks of which the last before the service of the notice ended on the dated of service thereof or ended not more than four weeks before that date.

Please note that staff are eligible for severance once they have been employed continuously for a period of two years by the same or associated employer. See Part IV 11. Of the Employment Order. Severance pay shall be paid at the rate of two weeks’ basic wage (based on the latest basic wage) for each year of service, and pro-rata for each incomplete year. See Part IV 12. Of the Employment Order.

Employers are asked to be mindful that where staff are laid off consideration must be given to section 106 (4) of the Employment Ordinance which states:

106 (4) No employer shall lay-off or make redundant an employee who is a Belonger and within three months prior or six months after, obtain, extend or renew, or apply to obtain, extend or renew, a work permit for a non-Belonger to work in a similar position, or carry out similar duties for the employer, as did the Belonger.

Employers should ensure that the layoff or short-time process is fair and persons are not singled out without just cause and in line with section 72 of the Employment Ordinance.

72. Where the reason or principal reason for the dismissal of an employee was that he was redundant, but it is shown that the circumstances constituting the redundancy applied equally to one or more other employee in the same undertaking who held positions similar to that held by him and who have not been dismissed by the employer, and either-

A. that reason (or, if more than one, the principal reason) for which he was selected for dismissal was one of those specified in section 70(1); or

B. That he was selected for dismissal in contravention of a customary arrangement or agreed procedure relating to redundancy and there were no special reasons justifying a departure from that arrangement or procedure in his case,

Then, for the purpose of this part, the dismissal shall be regarded as unfair.

Employees who are being laid off are asked to contact the Employment Services Department to register for current unemployment benefits such as maintenance of NHIP benefits. Employers are also reminded that work permit holders who are laid off during this period, and are not able to travel due to the travel restrictions are still their responsibility. Once the restrictions are lifts cards must be submitted to the office for cancelling and the individuals returned to their home country. Employers are prohibited from provided release letters to employees for this is not allowed under current legislation.

 The Commissioner of Labour in line with section 33 (1) of the Employment Ordinance is also requiring that employers to submit a report to the Commissioner on the list of persons being laid off and placed on short-time. This report must be submitted before or on the date the information is being communicated to the effected staff members. Please note that persons who provide false information would be, “committing an offence and is liable on summary conviction to a fine of $25,000 or to a term of imprisonment of six months, or both such fine and imprisonment.”  (as per section 32 of the Employment Ordinance)

Note: that late fees on renewal of work permits are suspended for work permits that would have expired between Saturday 28^th March 2020 and 17^th April 2020.

The Ministry has established a hotline to answer all employment related matters during this period. For employment related matters please call - (649) 348-3085 / (649) 348-9340 and for stimulus package information please call (649)-347-2943. The general public can also submit questions and provide information through the email address This email address is being protected from spambots. You need JavaScript enabled to view it. [VSJ1] .