Employment status due to COVID-19 |15 July 2020

Mr Monnaie giving out the interview yesterday morning (Photo: Anel Robert)

 262 Seychellois, 198 expatriates made redundant

Two hundred and sixty-two (262) Seychellois and 198 expatriates have been made redundant, according to the labour department.

Director general for labour relation within the employment department, Steve Monnaie told the media in an interview yesterday morning at Independence House that from March to July 7, 2020, the department of employment in the Ministry of Employment, Immigration and Civil Status received 133 applications for redundancy involving 745 Seychellois and 466 expatriate workers. Forty-two (42) applications have been approved involving 262 Seychellois and 198 expatriates.

Mr Monnaie noted that seven applications are on hold because the companies have received financial assistance from government under the Financial Assistance for Job Retention (FA4JR), while five businesses have withdrawn their applications.

The figures also include those from Praslin – 33 applications in total involving 97 Seychellois and 86 expatriates. Of the 33 applications, 17 have been approved with 51 Seychellois and 27 expatriates being made redundant.

The department received eight applications from La Digue involving 13 Seychellois and two (2) expats, out of which four applications were approved for the laying-off of seven Seychellois and two expats.

“Currently, the applications received concern mainly the tourism sector, security firms, cleaning agencies, landscaping companies and souvenir shops. On Praslin alone, nine souvenir shops are closing down. We are here to protect the interests of both employers and employees. We are urging all employers to follow the rules and guidance set by the employment department and to know more about what redundancy means. Redundancy is when an employer reduces its workforce because a job or jobs are no longer needed. There are procedures to follow and employers and employees need to get acquainted with the law in order to better prepare and protect themselves,” explained Mr Monnaie.

What are some reasons for workers to be made redundant?

Mr Monnaie explained that according to the section 50 under the Employment Act, redundancy can take place when a business is planning to cease to operate, in whole or part or temporarily or temporarily suspending, in whole or part, the operation of a business for any reason specified in section 48 (1) of the Employment Act; reconstructing the operation of a business for the purpose of facilitating improvement in the business by which greater efficiency and economy can be affected; or introducing new technology in a business.

What needs to be done for termination of employees under the redundancy process?

The employer must first notify the employment department 21 days before it intends to give notice of redundancy and provide the following information: the reason for the proposed termination; the number of workers concerned; the names, ages, occupation, date of engagement, contact details, address, education level and wages of the workers concerned; whether the proposed termination relates to an activity in a particular sector of the business or to the business as a whole and the criteria used for selecting the workers whose contracts are to be terminated.

In order for an application to be processed, a processing fee is paid, the notification is registered and consultation is scheduled for the employer and workers to appear before a competent officer, who, after hearing the parties, makes a determination and informs them in writing.

“So far we have respected the 21 days and if a business does not pay the fee or produce the necessary documents on time it cannot expect an answer within the 21 days. There are unfortunately some businesses which do not want a member of their staff in their team and are using the COVID-19 pandemic as an excuse to make staff redundant. We are investigating some of these cases,” noted Mr Monnaie.

What are the fees payable by the employer upon making an application for redundancy?

1)        Application to make 1-5 workers redundant, the fee is R300,

2)        Application to make 6-20 workers redundant, the fee is R700,

3)        Application to make 21-50 workers redundant, the fee is R800, and

4)        Application to make 51 and above workers redundant, the fee is R1,000.

Mr Monnaie concluded by stating that “currently we are living in a stressful period where many jobs are at stake. The employment department has predicted that around 4,000 workers will be made redundant. We urge employers and employees to get better acquainted with the Employment Act so that no one loses out.”

Vidya Gappy