Minister On Minimum Wage Regulations
Minister of Economy and Labour Jason Hayward provided an overview of regulations pertaining to the new minimum hourly wage rate of $16.40 that took effect on June 1st.
Speaking in the House of Assembly on Friday [June 2] the Minister said, “I am pleased to rise today to provide to the Members of this Honourable House an overview of the Employment [Minimum Hourly Wage] Order 2023 [the “Order”] and the Employment [Minimum Hourly Wage Entitlement] Regulations 2023 [the “Regulations”] that have been tabled in this Honorable House.
“The Order, which is subject to the negative resolution procedure, sets the minimum hourly wage rate for Bermuda at $16.40. The Order took effect on 1 June 2023.Employers of low wage earners are now required to amend their contracts and/or statements of employment to ensure that they are compliant with the Order.
“The Order provides for a hybrid payment structure for employees who receive gratuities and service charges and for personal service workers, i.e. barbers, hairdressers and beauticians in accordance with the Bermuda Standard Classification of Occupations.
“These employees will receive a basic wage, set by their employer, to which service charges, gratuities and/or commissions will be added, to guarantee a minimum hourly wage rate of $16.40. Where an employee’s basic wage plus service charges, gratuities and/or commission do not equal the minimum hourly wage rate of $16.40, their employer will be liable to provide the difference. This guarantees that an employee will receive the minimum hourly wage rate for every hour worked.
“This Order, together with the Employment [Minimum Hourly Wage Entitlement] Act 2022 and the Regulations will ensure that persons within low paying job categories, personal service employees and those workplaces and industry sectors where gratuities and service charges may be provided, will receive a dignified wage that will give them the ability to afford the basic necessities to support themselves and their families.
The Minister’s full statement follows below:
Good morning Mr. Speaker,
I am pleased to rise today to provide to the Members of this Honourable House an overview of the Employment [Minimum Hourly Wage] Order 2023 [the “Order”] and the Employment [Minimum Hourly Wage Entitlement] Regulations 2023 [the “Regulations”] that have been tabled in this Honorable House.
Mr Speaker, the Employment [Minimum Wage Hourly Entitlement] Act 2022 sets out the guidelines for the application of the minimum hourly wage and the enforcement provisions regarding adherence to the payment of a minimum hourly wage rate, among other things. Additionally, it gives Labour Inspectors the authority to investigate an employee’s complaint against his employer and issue enforcement notices to employers who fail to correctly remunerate their employee[s] pursuant to this Order.
Mr Speaker, the Regulations, which is subject to the negative resolution procedure, are necessary to properly carry out the provisions of the Employment [Minimum Hourly Wage Entitlement] Act 2022 as it relates to the average hourly rate of pay for the minimum hourly wage and the records to be kept by every employer. The Regulations outline the calculation for the average hourly rate of pay as well as the records to be kept by employers at their premises or a place where their employees work, that show that they are in compliance with the Employment [Minimum Hourly Wage Entitlement] Act 2022 and the Order and are paying their employees at a rate that is equal to the minimum hourly wage rate.
Mr Speaker, the Order, which is subject to the negative resolution procedure, sets the minimum hourly wage rate for Bermuda at $16.40. The Order took effect on 1 June 2023.Employers of low wage earners are now required to amend their contracts and/or statements of employment to ensure that they are compliant with the Order.
Mr Speaker, the Order provides for a hybrid payment structure for employees who receive gratuities and service charges and for personal service workers, i.e. barbers, hairdressers and beauticians in accordance with the Bermuda Standard Classification of Occupations. These employees will receive a basic wage, set by their employer, to which service charges, gratuities and/or commissions will be added, to guarantee a minimum hourly wage rate of $16.40. Where an employee’s basic wage plus service charges, gratuities and/or commission do not equal the minimum hourly wage rate of $16.40, their employer will be liable to provide the difference. This guarantees that an employee will receive the minimum hourly wage rate for every hour worked.
Mr Speaker, I would like to remind the members of this Honorable House that the Employment [Minimum Hourly Wage Entitlement] Act 2022 entitles employees who believe that they are not being correctly remunerated to request a review of their employment records. If the employee finds that they are in fact not being compensated correctly or that their employer fails to adhere to their request, they may file a complaint with the Department of Labour.
Mr Speaker, employers who are found to be operating contrary to the Employment [Minimum Hourly Wage Entitlement] Act 2022 will be issued with enforcement notices by an inspector requiring them to pay the difference between the current rate of pay and the minimum hourly wage as well as awarding an additional ten [10] percent of the minimum hourly wage for each pay reference period in which they were in contravention. Additionally, inspectors have the power to issue civil penalties for failure to keep the necessary records according to the Act and for failure to comply with an enforcement notice.
Mr. Speaker, this Order, together with the Employment [Minimum Hourly Wage Entitlement] Act 2022 and the Regulations will ensure that persons within low paying job categories, personal service employees and those workplaces and industry sectors where gratuities and service charges may be provided, will receive a dignified wage that will give them the ability to afford the basic necessities to support themselves and their families.
Mr. Speaker, the Ministry would like to thank the Members of this Honourable House for the opportunity to address them in this regard.
Thank you, Mr. Speaker.
“Employers of low wage earners are now required to amend their contracts and/or statements of employment to ensure that they are compliant with the Order.”
That looks like the thin end of the wedge of abolishing freedom of contract in Bermuda. The employee has no say in the matter.