JEF again proposing extension of lay-off period during national crises

 

Businesses struggling to stay afloat amid the COVID-19 pandemic are hoping that the Government will take seriously the suggestion to amend legislation to extend the 120-day lay-off period during a national crisis.

 

The issue, which was raised last year during the height of the pandemic, was rejected by trade unions.

 

Under local labour laws, lay-offs beyond 120 days trigger a redundancy exercise.

 

During the pandemic, the 120-day lay-off period expired at most companies without trade unions and employers signing off on an agreement on how the issue of redundancy would be handled.

 

Speaking Thursday on the Morning Agenda on Power 106, Jamaica Employers' Federation (JEF) President David Wan provided details on the suggestion to extend the lay-off period, saying it would be beneficial for employers and employees.

 

Mr. Wan said the benefit will specifically be for businesses ordered closed, such as in the entertainment and hospitality sectors.

 

He noted that if the additional days are granted, employers would be willing to compensate employees during the period. 

 

"Aside from what we're calling for, we are open to discussing with our partners, the trade unions and the government in this tripartite mechanism to say, if we get this extension during a pandemic for industries that are ordered to be remain closed, we are willing to talk about after the 120 days...a provision that says continue lay-off but we must pay, to pick a number, 30 per cent of the salary for the next 60 days and on like that," he suggested. 

 

Mr. Wan said about 25 per cent of JEF members would benefit from the extended lay-off days.

 

He also proposed that the 120-day lay-off period be restarted in the event a company is unable to pay workers after reopening.

 

"We're talking about normal commercial activity and the business owner deciding we need to put some people on lay-off because business is not what it used to be, and I can tell you a lot of business is going to take some time to get back to where they were because consumers have found other ways to get what they want outside of doing business with those companies," he indicated.