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Mariahven Caremben,
Industrial Relations and Policy Matters adviser

The disturbance allowance is to compensate employees for work performed during unsocial hours

A recent panel discussion, moderated by Khemila Narraidoo, Partner at Juristconsult Chambers, provided insights into the amendments to the Workers’ Rights Act 2019, as updated by the Finance (Miscellaneous Provisions) Act 2024. Participants included Mariahven Caremben, Adviser on Industrial Relations and Policy Matters, Suraj Kokil, Head of Human Capital at Manser Saxon, and Manish Bundhun, Chief People Executive at ENL and Rogers Management Service. The panel examined key topics such as the disturbance allowance for work during unsocial hours, extreme weather protocols, vacation leave regulations, and joint liability provisions for labour contractors and employers regarding migrant workers. The discussion focused on the implications of these changes on workforce management and company policies, emphasizing the importance of clear guidelines and practical approaches for both employers and employees in adapting to the updated regulatory framework.

Moderator (Khemila Narraidoo, Partner – Barrister, Juristconsult Chambers): Thank you for being part of this discussion. Today, we are here to explore the far-reaching changes to the Workers’ Rights Act 2019 as modified by the Finance (Miscellaneous Provisions) Act 2024. To start, Mr Caremben, can you clarify the application of the disturbance allowance during unsocial hours and its relationship with overtime?

 

Mariahven Caremben (Industrial Relations and Policy Matters Adviser, Labour Office): Of course. The disturbance allowance is designed to compensate employees for work performed during unsocial hours, defined as hours outside the standard work schedule, including late nights and weekends. The law stipulates that employees are entitled to both the disturbance allowance and overtime pay when working during these times. This dual compensation underscores the importance of respecting employees’ personal time and ensuring their work-life balance.

 

Moderator: Suraj, from your perspective as Head of Human Capital at Manser Saxon, how do these updated provisions impact financial planning and workforce management?

 

Suraj Kokil (Manser Saxon Contracting Ltd): The introduction of the disturbance allowance reinforces the need for meticulous workforce management. Companies must plan shifts to ensure that employees’ work schedules align with financial capabilities while adhering to legal requirements. This means defining shifts that avoid excessive payment obligations unless truly necessary. The balance between cost control and respecting employee rights is key, particularly in industries operating outside standard hours.

 

Employers must stay proactive and collaborative to ensure these changes benefit all stakeholders

 

Moderator: Manish, as Chief People Executive at ENL and Rogers Management Service, how do you see these laws influencing senior management roles and flexibility in the workplace?

 

Manish Bundhun (Chief People Executive, ENL and Rogers): Senior management roles inherently come with added responsibilities, often extending beyond standard work hours. However, the updated law does not distinguish between different levels of employment when it comes to the disturbance allowance. This means that even senior executives working during unsocial hours may be entitled to compensation, aligning with the principles of fairness and work-life balance. Companies should thus implement robust scheduling strategies to minimize unsocial work hours for all levels, ensuring compliance while managing costs.

 

Moderator: Moving on to extreme weather protocols, Mr Caremben, can you share your view on whether private companies should adopt a standardized approach similar to the public sector for issuing directives during adverse weather conditions?

Yes, this is a pertinent issue. While the public sector operates under clearer, more uniform guidelines, private sector employers retain some discretion. That said, during severe weather conditions recognized by the National Crisis Committee or under the National Disaster Risk Reduction and Management Act, the law mandates that employees should stay indoors, and their wages should be guaranteed. While private employers are not bound to issue official circulars, they must prioritize employee safety and are encouraged to develop clear internal policies that align with national safety standards.

 

Moderator: Suraj, do you see challenges in implementing such policies in the private sector?

Absolutely. One challenge is coordinating the release of employees during sudden weather changes without causing traffic congestion or other logistical issues. Our approach has been to implement staggered departure protocols, especially for employees who live far from the workplace. This helps manage safety and avoids additional risks. Companies should tailor their extreme weather policies to suit their operational structure while ensuring that employee welfare remains a top priority.

 

Moderator: Manish, your thoughts on balancing national guidelines with company-specific policies?

The government has a dual role – as both a significant employer and a policymaker. It is essential for national protocols to be clear and adaptable. While companies like ours already have structured policies for handling cyclones or extreme weather, further refinement is needed to cover all aspects, including torrential rain and flash floods. Industries like hospitality and logistics, which provide essential services, may require special considerations. A cohesive approach between national and company-specific policies will benefit both employers and employees.

 

Moderator: Now, let’s shift to the topic of enhanced vacation leave regulations. There has been some ambiguity regarding eligibility, particularly when an employee’s salary changes. Mariahven, could you clarify how salary affects vacation leave entitlement?

Certainly. Under the new regulations, employees with at least five years of continuous service and an annual basic salary of less than 600,000 rupees are entitled to up to 30 days of vacation leave. This threshold excludes overtime pay. If an employee’s basic salary increases above 600,000 rupees, they may forfeit this entitlement unless otherwise agreed upon by the employer. It’s a nuanced area, and clarity on the timing of the salary change is vital when determining eligibility.

 

How does this change affect company policies on vacation leave management?

At Manser Saxon, we decided to simplify vacation leave management to align with the law. We encourage employees to use their entitled leave within a defined period, typically 12 months from the date of eligibility, split into no more than two parts. This policy helps us manage operational needs and reduces the administrative complexity of tracking leave for thousands of employees.

 

Finally, let’s discuss the joint liability provisions for labour contractors and employers, particularly regarding migrant workers. Suraj, could you share your insights?

The joint liability clause ensures that both the labour contractor and the hiring employer are accountable for the treatment and compensation of migrant workers. While this aims to curb exploitation and promote transparency, practical challenges persist. For instance, issues such as bank guarantees and the distribution of responsibility for compliance need clearer regulation. Without precise guidelines, enforcing these provisions can be difficult.

 

Moderator: Mr Caremben, what are your thoughts on the future of these labour regulations?

The provisions mark a step towards a more regulated and transparent labour market. However, the successful implementation will depend on further legislative refinement and practical policy adjustments. Employers must stay proactive and collaborative to ensure these changes benefit all stakeholders.

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