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Minimum Wage Order covers loopholes

Jun 04, 2013 News

 

 

The National Minimum Wage Order 2013, containing the particulars governing the issuance of wages for regular working hours of all employees in Guyana has been finalized. It is available for the perusal of members of the public.
The Order is scheduled to take effect from July 1.
It states that the minimum rate of wage to be paid to every person employed in Guyana must not be less than $202 per hour; $1,616 per day; $8,080 per week or $35,000 per month.
Categories of workers that are addressed by the document include domestic workers, employees at cement factories, wash bays, saw mills, bakeries, ice factories, filling stations, security guards and watchmen and dozens of others.
It adds that if any employer is found guilty of a breach of this order, issuing wages or salaries in amounts less than the stipulated amounts, the person will be liable to a fine of $35,000 for the first offence. For a second violation of the Order, a fine of $70,000 and one month’s imprisonment will be enforced.
Further, if an employee is in receipt of a wage that is higher than the wage prescribed in the Order, the amount received by that employee should not be reduced to match the rate that is set. Instead, the employer must continue to pay at the regular rate in which the employee is in receipt of.
According to the Order, a normal work week should comprise 40 hours and should not exceed five days per week. For hours of work beyond the normal hours, payment should be made in alignment with the rates set in the Labour (Conditions of Employment of Certain Workers) Act of 1978; any other law or any collective bargaining agreement in force where workers are represented by a Trade Union.
Moreover, if there is conflict between another existing minimum wage order that is found to be less advantageous than the new Order, the former is to be disregarded.
The introduction of a new national minimum wage for all workers is said to be the measure needed to put an end to underpayment across all sectors and lessen complaints of exploitation by employers.
According to the Minister of Labour, the Order seeks to remedy any existing financial exploitation of workers and is to prevail if there is any conflict with any other minimum wage Order.
At Guyana’s 47th Independence Anniversary held at the National Park last Sunday, President Donald Ramotar spoke of the initiative. He noted that his government has moved resolutely to end what he described as the “abuse”— the underpayment of workers.
He also said that his government is going to ratify the International Labour Organizations (ILO) Convention 189, on domestic workers.
In January last, the Government had announced its plan to institute a national minimum wage for all workers. It had been noted that the minimum wage had not been attended to for more than two decades.
The initiative to establish a minimum wage came as a result of discussions between the government workers’ union and the private sector. It was subsequently submitted to be approved by the Cabinet which supported the initiative.

 

 

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