The Barbados Employers Confederation has begun a major education drive for employers ahead of the implementation of the Protection of Wages Bill, which is set to be passed soon.
The information session held at the Lloyd Erskine Sandiford Centre on Thursday was aimed at helping businesses understand the legislation and prepare for the changes it will bring to payroll practices.
Employers at the Information Session hosted by the BEC
Executive director of the Barbados Employers Confederation Sheena Mayers-Granville said the session was intended to give employers the opportunity to raise questions and better understand their responsibilities.
She said: “The legislation was just debated only this month in Parliament. So this is our first public engagement so that persons are sensitised, and they start to review the provisions and ensure that if there are any changes that they need to make to ensure they’re compliant, that they can do so.”
The Protection of Wages Bill introduces new requirements surrounding wage payments, deductions and pay cycles, areas which Mayers-Granville said employers will have to pay close attention to once the legislation comes into effect.
Executive director of the Barbados Employers Confederation Sheena Mayers-Granville
She explained that while some aspects of payroll management were previously determined through contracts between employers and employees, the new legislation will bring greater regulation.
“We have discussed the implications for payments and pay cycles because we’ve never had that regulated; that was simply found in the contract of employment, but now the new legislation will regulate pay cycles, and we also discussed the impact on deductions.”
Mayers-Granville said one of the main areas where employers have been seeking clarity is the one-third cap on deductions from wages.
Major Changes to the Bill
While the existing legislation already imposed such a limit, there had been uncertainty over how it should be applied, particularly in cases involving deductions for financial institutions, she said.
“The current 1950s legislation does impose a one-third cap on deductions, but there have been always questions on should it be on gross earnings, on net earnings, and then how does that apply where employees have requested deductions to financial institutions, for example, mortgages and car loan payments.”
According to Mayers-Granville, the new bill provides clearer guidance on how the cap should be applied, which will assist employers in managing deductions.
The BEC will “continue to push out material and produce guidance and advice”, she said.
“Our members can expect to receive continuing information over the coming months to assist them in getting ready for the new legislation.”
Mayers-Granville said the organisation expects there will be a period of adjustment once the legislation comes into effect, but the BEC stands ready to assist employers through the transition.
The BEC executive director said the organisation’s engagement with employers is also aimed at ensuring businesses understand areas where changes may be required to remain compliant.
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