“Your Partner in Business and Community Success” Cayman Chamber WELCOME CHAMBER OF COMMERCE SEMINAR: UNDERSTANDING THE NEW EMPLOYMENT

“Your Partner in Business and Community Success”

Cayman Chamber

www.caymanchamber.ky

WELCOMEWELCOME

CHAMBER OF COMMERCE SEMINAR:CHAMBER OF COMMERCE SEMINAR:

UNDERSTANDING THE NEW EMPLOYMENT UNDERSTANDING THE NEW EMPLOYMENT LAWLAW

Angelyn HernandezAngelyn Hernandez

Quin & HampsonQuin & Hampson

2020thth April 2004 April 2004

Business Information Series


Cayman Chamber


ApplicationApplication


Applies to all employees including public Applies to all employees including public servants and employees of churches and servants and employees of churches and charitable organizationscharitable organizations

Does not apply to:Does not apply to:• Casual employee Casual employee • Seasonal employeeSeasonal employee • Essential services employeeEssential services employee


Cayman Chamber


ContractContract


• contain all the terms of contain all the terms of employmentemployment

• contain the minimum standards of contain the minimum standards of the lawthe law

• be in accordance with “Form 1”be in accordance with “Form 1” • employer shall provide 2 original employer shall provide 2 original

contractscontracts• finesfines


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Contract (cont.)Contract (cont.)


Form 1

Duration

2. This contract commences on __________________ [insert day/month/year]

The last day of the contract is _________________ [insert last day]

(Or)

The contract is for an indefinite period of time _______ [tick if applicable]


Cayman Chamber




Form 1

Probation

11. The employee’s probationary period will be ____________________ [insert the period of any probation] [insert N/A if inapplicable] and with regard to the period of probation section 9 of the Employment Law, a copy of which is attached, applies.


Cayman Chamber




Form 1Sick Leave

14. The employee is entitled to sick leave of ten days, paid at his/her basic rate per annum. Sick leave is only to be taken when the employee is ill or otherwise incapacitated. The employee is required to contact the employer as soon as reasonably practicable to report the necessity of taking sick leave. A medical certificate is not necessary for the first two days of leave. Where the employee takes three days consecutive sick leave or more, the employee must on returning to work present the employer with a physician’s certificate to cover all the consecutive days of leave from the beginning. The employer reserves the right to waive the physician’s certificate requirement verbally.


Cayman Chamber




Form 1

Worker’s compensation

16. Worker’s compensation protection is provided by the employer in the event of injury or accident on the job resulting in any form of incapacity or death. Worker’s compensation provision is by policy number _____________________ with _____________________________________ [insert name of insurance company].

(Or)The employer has become bonded against the liability in relation to the employee’s injury or accident in or relating to the workplace, in the amount of _______________ Dollars [insert amount].


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Form 1Dispute settlement

18. A method of conflict resolution is in place. Should the employee have a complaint or wish to discuss any issue regarding his employment in relation to other employees, pay, scheduling, working conditions, safety or otherwise, those issues are to be referred to _________________________, the manager/employer [insert name of manager or employer]. If the issue is not resolved at this level, then it may be taken to the Director of Employment Relations for resolution by conciliation, mediation or arbitration, or failing resolution by the other means, by submission to the Employment Tribunal.


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ProbationProbation


• the period of notice of termination is the period of notice of termination is now 1 day’s notice per month for either now 1 day’s notice per month for either employer or employeeemployer or employee

• an initial period of 6 monthsan initial period of 6 months• may be extended for another 6 monthsmay be extended for another 6 months• training required during probationary training required during probationary

periodperiod


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Maternity LeaveMaternity Leave


•with the same employer for at least 12 months, with the same employer for at least 12 months, or who last gave birth at least 12 months or who last gave birth at least 12 months before the delivery datebefore the delivery date

• 12 calendar weeks12 calendar weeks• 20 days (4 weeks) work pay20 days (4 weeks) work pay• next 20 – half paynext 20 – half pay• other time without payother time without pay

•employed for at least 24 months or who last employed for at least 24 months or who last

gave birth 24 months before the delivery date gave birth 24 months before the delivery date whilst with the same employerwhilst with the same employer

•12 calendar weeks, with the first 40 working 12 calendar weeks, with the first 40 working days at basic wage days at basic wage

• rest with no payrest with no pay


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Paternity leavePaternity leave


• biological fatherbiological father• 24 month period or pro-rated if less24 month period or pro-rated if less

• NB – cannot refuse if person working for NB – cannot refuse if person working for more than 6 monthsmore than 6 months

• 2 weeks leave (10 working days)2 weeks leave (10 working days)• 5 working day per pay5 working day per pay• next 5 without paynext 5 without pay


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AdoptionAdoption


No age limit on childNo age limit on child

FemaleFemale•9 calendar weeks with basic pay for 25 9 calendar weeks with basic pay for 25 working days every 24 months, or pro working days every 24 months, or pro rated if lessrated if less

MaleMale•paid adoption leave of 1 calendar week paid adoption leave of 1 calendar week every 24 months or prorated if lessevery 24 months or prorated if less

– Leave does not accrue and is not Leave does not accrue and is not remunerable if not usedremunerable if not used


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National Minimum Basic WageNational Minimum Basic Wage


•MWAC is “hereby established”MWAC is “hereby established”•9 members on the committee9 members on the committee• if breach, Director shall investigate and ask if breach, Director shall investigate and ask

employer to respondemployer to respond• if violation, request to pay employee within a if violation, request to pay employee within a

specified periodspecified period•may refer the matter to the Attorney General may refer the matter to the Attorney General

who may institute criminal chargeswho may institute criminal charges•on conviction, fine/penalty plus amount which on conviction, fine/penalty plus amount which

remains to be paid and interest of 10%remains to be paid and interest of 10%•gratuities not included in calculationgratuities not included in calculation


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Rest PeriodsRest Periods


•Rest period of at least 24 Rest period of at least 24 consecutive hours in each consecutive hours in each consecutive 7 day periodconsecutive 7 day period

•an employee who works an 8 hour an employee who works an 8 hour shift shall be entitled to a rest break shift shall be entitled to a rest break of 15 minutes and a meal break of 30 of 15 minutes and a meal break of 30 minutesminutes

•15 minutes breaks are at basic pay, 15 minutes breaks are at basic pay, but meal break “shall be agreed by but meal break “shall be agreed by contract”contract”


Cayman Chamber


Rest Periods (cont.)Rest Periods (cont.)


• specialized industries now include water specialized industries now include water sports, household domestic work, and sports, household domestic work, and retail businessretail business

Breaks: 15 mins – 3-5 Breaks: 15 mins – 3-5 hourshours

2 x15 mins – more 2 x15 mins – more than 5 hoursthan 5 hours

30 mins meal break 30 mins meal break

• 15 minutes breaks are at basic pay, but 15 minutes breaks are at basic pay, but meal break “shall be agreed by meal break “shall be agreed by contract”contract”


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Standard WorkStandard Work Week Week


37.5 hours – 40 hours in any 168 hours37.5 hours – 40 hours in any 168 hours


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Overtime Pay in General Overtime Pay in General


•still allows time off in lieu of overtime pay with still allows time off in lieu of overtime pay with basic paybasic pay

•employer shall negotiate with trade union or employer shall negotiate with trade union or employee group whether the hours in excess of employee group whether the hours in excess of standard work week shall be at regular or other standard work week shall be at regular or other specified higher pay PROVIDED that :specified higher pay PROVIDED that :

– cannot contract out of overtime in excess of 44 cannot contract out of overtime in excess of 44 hours hours

– if employee is receiving benefits in excess of if employee is receiving benefits in excess of law, then shall not be entitled to overtime paylaw, then shall not be entitled to overtime pay

•employees of managerial level, professional employees of managerial level, professional level or salaried employee may contract out of level or salaried employee may contract out of overtime.overtime.


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RemunerationRemuneration


•regular period basisregular period basis•not exceed 1 month intervalsnot exceed 1 month intervals•paid on ordinary working days during paid on ordinary working days during ordinary working hoursordinary working hours


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Deductions from wagesDeductions from wages


Can no longer deduct for suspensionCan no longer deduct for suspension


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Pay StatementPay Statement


Pay Statement must be provided to Pay Statement must be provided to

employeeemployee


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Pay Statement (cont.)Pay Statement (cont.)


Form 2


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Work AccountsWork Accounts


In addition to the pay statement, In addition to the pay statement, the employer shall keep a work the employer shall keep a work account with respect to each account with respect to each employeeemployee

– employer shall preserve work employer shall preserve work accounts for at least 3 yearsaccounts for at least 3 years


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Work Accounts (cont.)Work Accounts (cont.)


Form 3


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GratuitiesGratuities


•not applicable to service employer not applicable to service employer who allows service employees to keep who allows service employees to keep gratuities paid to them and does not gratuities paid to them and does not add to basic bill an additional amountadd to basic bill an additional amount


Cayman Chamber


Severance Pay Severance Pay


• 1 weeks’ wages for each completed 1 weeks’ wages for each completed 12 month period of employment, the 12 month period of employment, the relevant weekly wages being the relevant weekly wages being the highest basic wage for the preceding highest basic wage for the preceding 12 month period12 month period

• no maximumno maximum• employees in agriculture and employees in agriculture and

construction – now 90 daysconstruction – now 90 days


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Severance Pay (cont.)Severance Pay (cont.)


Penalty provision:Penalty provision:

in addition to any orders made, a in addition to any orders made, a penalty not in excess of 12 weeks’ pay, penalty not in excess of 12 weeks’ pay, where the employer has been where the employer has been adjudicated to have been in violation of adjudicated to have been in violation of severance pay provisions within 2 years severance pay provisions within 2 years immediately preceding the date of the immediately preceding the date of the violation before the adjudicating violation before the adjudicating authorityauthority


Cayman Chamber


Resignation/Retirement Resignation/Retirement AllowancesAllowances


•an employee who has attained age 60, an employee who has attained age 60, worked for 1 year or more and voluntarily worked for 1 year or more and voluntarily resigns shall be paid in addition to other resigns shall be paid in addition to other entitlements, an allowance equal to 1 entitlements, an allowance equal to 1 week’s pay at the highest basic rate in week’s pay at the highest basic rate in the preceding 1 year, for each completed the preceding 1 year, for each completed yearyear

•““voluntary” retirement/resignation voluntary” retirement/resignation includes if due to ill-health or on the includes if due to ill-health or on the recommendation of a doctorrecommendation of a doctor

•allows the employers to offset their allows the employers to offset their contribution to those pension plans contribution to those pension plans against any amount of retirement pay against any amount of retirement pay due under the Lawdue under the Law


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Dismissals Dismissals


•in fixed terms contracts, no question of in fixed terms contracts, no question of fairness or termination arises where a fairness or termination arises where a contract comes to an endcontract comes to an end


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Dismissals Dismissals


•dismissal for good cause deemed not dismissal for good cause deemed not unfair if :unfair if :

– misconduct (with written warning)misconduct (with written warning)– performance (with written warning) performance (with written warning) – redundancy (+ discrimination)redundancy (+ discrimination)– contravention of a legislative provisioncontravention of a legislative provision– some other substantial reason which some other substantial reason which

would entitle a reasonable employer to would entitle a reasonable employer to dismissdismiss


Cayman Chamber


Dismissals (cont.)Dismissals (cont.)


written warnings needed in almost every written warnings needed in almost every case except:case except:

– committing a criminal offence in the committing a criminal offence in the course of employmentcourse of employment

– behaved immorally in the course of his behaved immorally in the course of his dutiesduties

– taking or being under the influence of taking or being under the influence of drugs or alcohol during the hours of his drugs or alcohol during the hours of his employmentemployment

Misconduct – 1 warningMisconduct – 1 warningSubstandard performance – 2 warnings – Substandard performance – 2 warnings – remedial instructions and training required remedial instructions and training required

during this timeduring this time


Cayman Chamber




Form 9

Misconduct

As this is a case of MISCONDUCT, you are entitled to one warning. Accordingly, you have ONE MONTH from today to improve your conduct. IF YOUR CONDUCT DOES NOT CHANGE WITHIN THIS PERIOD OF ONE MONTH, YOU WILL BE SUMMARILY DISMISSED, FORFEITING ANY UNEARNED BENEFITS AND FORFEITING ANY SEVERANCE PAY, IN ACCORDANCE WITH THE EMPLOYMENT LAW.


Cayman Chamber




Form 9

(Or)

1. This is a case of SUBSTANDARD PERFORMANCE, for which you are entitled to two warnings, please note the following [delete below what does not apply]:This is your FIRST WARNING regarding this substandard performance and ________________________ [insert a definite and reasonable period] you have from today during which you are to repeat this kind of substandard performance.

2. As your substandard performance has not been corrected, this is your ______________________________ [insert a definite and reasonable period] SECOND AND FINAL WARNING regarding the same. You have from today to raise your level of performance.


Cayman Chamber


Employment TribunalsEmployment Tribunals


The Tribunal shall have jurisdiction to The Tribunal shall have jurisdiction to hear and determine any matter relating to hear and determine any matter relating to any dispute concerning any rights any dispute concerning any rights conferred by or under this law and may conferred by or under this law and may make such decisions and orders as may be make such decisions and orders as may be necessary to give effect to those rights.necessary to give effect to those rights.

Complaints may come from employers, Complaints may come from employers, employees, employers’ groups, trade employees, employers’ groups, trade unions or any other party with an interest unions or any other party with an interest in an employment –related matterin an employment –related matter


Cayman Chamber


Complaint Process Complaint Process


Under the new Law, it is proposed:Under the new Law, it is proposed:(a) complaint to be filed with the Director of (a) complaint to be filed with the Director of

Employment RelationsEmployment Relations

(b) he can make determination if claim is (b) he can make determination if claim is frivolous and vexatious, or as a result of frivolous and vexatious, or as a result of ill-will or malice, and in such cases, ill-will or malice, and in such cases, advise the complainant of his findingsadvise the complainant of his findings

(c) he will direct this to an authorized officer (c) he will direct this to an authorized officer who shall investigate and attempt to who shall investigate and attempt to settle the issuesettle the issue

(d) if conciliation fails, then it will be (d) if conciliation fails, then it will be directed to Employment Tribunaldirected to Employment Tribunal


Cayman Chamber


RemediesRemedies


• Tribunal may on a finding against the Tribunal may on a finding against the employer, order:employer, order:

– an amount as compensation (not exceed 1 an amount as compensation (not exceed 1 week’s wages for each completed year; orweek’s wages for each completed year; or

– reinstate the employee with back payreinstate the employee with back pay– a discretionary penalty of a maximum of a discretionary penalty of a maximum of

12 weeks if the employer had in the 12 weeks if the employer had in the preceding 2 years, been found to be in preceding 2 years, been found to be in violation of the lawviolation of the law

• an appeal is to the Summary Court, and an appeal is to the Summary Court, and then to the Grand Court, in each instance then to the Grand Court, in each instance within 14 days, and on a point of law or within 14 days, and on a point of law or judicial reviewjudicial review


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Health/SafetyHealth/Safety && WelfareWelfare atat

workwork


Provisions remain largely the same, Provisions remain largely the same, except that a household is excluded except that a household is excluded from the registration provisions, but if from the registration provisions, but if an accident occurs in the household, an accident occurs in the household, then a report must be madethen a report must be made


Cayman Chamber


AdministrationAdministration


Department of Employment RelationsDepartment of Employment Relations

Director of Employment RelationsDirector of Employment Relations•the Director shall have all such powers as are the Director shall have all such powers as are

necessary and expedient for the better carrying necessary and expedient for the better carrying out of the purposes of the lawout of the purposes of the law

•the Director may on the report of any person or the Director may on the report of any person or on his own volition, refer any dispute or matter on his own volition, refer any dispute or matter to the Employment Tribunal for adjudicationto the Employment Tribunal for adjudication

•powers of entry and inspection very wide powers of entry and inspection very wide •power to issue citations or report to the Policepower to issue citations or report to the Police


Cayman Chamber


MiscellaneousMiscellaneous ProvisionsProvisions


DiscriminationDiscrimination

an employer or prospective employer, an employer or prospective employer, shall not on the grounds specified…… shall not on the grounds specified…… discriminate in relation to:discriminate in relation to:

– framing of and advertisement of the jobframing of and advertisement of the job– selection for interview and conduct selection for interview and conduct

thereofthereof– decision to hire, promote, discipline or decision to hire, promote, discipline or

dismissdismiss– terms of employmentterms of employment– any other matter directly or indirectly any other matter directly or indirectly

related to employment or prospective related to employment or prospective employmentemployment


Cayman Chamber



(cont.)(cont.)


Discrimination (cont.)Discrimination (cont.)

•grounds now include – national grounds now include – national extraction, sexual preference, extraction, sexual preference, conscience, any criteria that may be conscience, any criteria that may be specified in the Constitutionspecified in the Constitution

•employer may not directly engage in or employer may not directly engage in or permit or condone the occurrence of permit or condone the occurrence of sexual or other kinds of harassment of sexual or other kinds of harassment of the employee in or around the workplacethe employee in or around the workplace


Cayman Chamber



(cont.)(cont.)


General PenaltiesGeneral Penalties

where no other penalty provided where no other penalty provided

•first offence on Summary conviction - first offence on Summary conviction - $2500 and imprisonment of 6 $2500 and imprisonment of 6 months,months,

•second or subsequent offence - second or subsequent offence - $5000 and imprisonment of 12 $5000 and imprisonment of 12 monthsmonths

•continuing offence - $100 for every continuing offence - $100 for every dayday


Cayman Chamber


Precedence of this LawPrecedence of this Law


where this Law conflicts with any other where this Law conflicts with any other employment-related Law, this Law employment-related Law, this Law prevailsprevails

THANK YOUTHANK YOU

CHAMBER OF COMMERCE SEMINAR:CHAMBER OF COMMERCE SEMINAR:

UNDERSTANDING THE NEW EMPLOYMENT UNDERSTANDING THE NEW EMPLOYMENT LAWLAW

Angelyn Hernandez Angelyn Hernandez

Quin & HampsonQuin & Hampson

2020thth April 2004 April 2004www.caymanchamber.ky



Cayman Chamber

Documents

“Your Partner in Business and Community Success” Cayman Chamber WELCOME CHAMBER OF COMMERCE SEMINAR: UNDERSTANDING THE NEW EMPLOYMENT