PAYMENT OF GRATUITY ACT NO.12 OF 1983

The Regional Plantation Companies have, from time to time, highlighted that an urgent amendment to the Gratuity Act No.12 of 1983 needs to be brought in to address the issue with regard to employees who do not report to work and still “tick in” years of service to employment which ultimately results in a massive gratuity provision in the annual accounts and a gratuity payment as well at the point of retirement. This was a matter that was highlighted during the negotiations that took place even before H.E. the President years ago. In fact, H.E. the President fully appreciated the problem and consequent to submissions made by the EFC, instructed the Ministry of Labour to look into this matter and bring about a speedy solution.

Up to now, there has not been any amendment to the Gratuity Act in terms of our proposal which has been to amend the definition of “year” in terms of section 20 of the Payment of Gratuity Act No.12 of 1983 to read as follows:

“A year shall mean a completed period of 12 consecutive months during which a workman has worked not less than 180 days”.