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Clear direction on the legislation

Introduction guide to the Workers’ Rights Act 2019


Preface
This is an introduction to the Workers’ 31 new remuneration regulations have
Rights Act 2019 (the “Act”), which sets out been promulgated to provide industry
the rights and obligations that govern specific rules.
employment in Mauritius.
As per Proclamation no. 45 of 2019, the
The purpose of this introduction guide is to Act came in operation on 24 October 2019
provide an overview on the Act and to except for:
highlight the major provisions. It is not
meant to be comprehensive. In spite of the a) section 78(2)(d) of the Act which
sincere efforts made to ensure the gives discretion to the Minister to
accuracy of this guide, no legal advice is fund from the Workfare Programme
being tendered and we shall not accept Fund such social plan for the benefit
any liability for any mistakes, errors and/or of workers as the Minister may
omission contained herein. No reliance determine, which is deemed to have
should be placed on this guide, and any come operation on 30 April 2019;
person should consult the original Act and
and/or seek advice from a legal
b) provisions for the Portable
practitioner in relation to the Act.
Retirement Gratuity Fund which
Depending on the industry in which you became effective as from 1 January
operate, specific rules on employment may 2020.
apply over and above the provisions of the
Act.
Contents
1. Introduction 1
2. Hiring 2
3. Probation or trial period 2
4. Consideration for full-time or permanent employment
and promotion 2
5. Hours of work 3
6. Meal and tea breaks and meal allowance 4
7. Remuneration 4
8. Leaves 6
9. MEDICAL FACILITIES 8
10. Maternity and paternity benefits 8
11. End of year bonus 9
12. Termination of employment 9
13. Employment following transfer of undertaking 9
14. Reduction of workforce and closure of enterprises 10
15. The Workfare Programme Fund 10
16. Certificate of employment 11
17. Compromise Agreement 11
18. Severance allowance 11
19. Portable Retirement Gratuity Fund (“PRGF”) 12
20. Gratuity on retirement for other employees 15
21. Death grant and gratuity at death 15
It is noteworthy that certain provisions of the
1. Introduction Act relate only to “workers” and other provisions
The Act came in operation on 24 October 2019 apply to all employees. A “worker” is defined in
and replaced and repealed the Employment section 2 of the Act as, meaning:
Rights Act 2008.
a) a person who has entered into or works
The Act introduces, inter alia, the Wage under an agreement or a contract of
Guarantee Fund Account, the setting up of the apprenticeship;
Redundancy Board, the payment of gratuity to
b) includes a part-time worker, a former
retiring employees taking into account their full
worker where appropriate and a share
length of service irrespective of the number of
worker; but
employers with whom they have been working,
maternity benefits to a mother who adopts a c) does not include a job contractor or a
child of up to 12 months of age, and special person whose basic wage or salary is at
leave days in cases of an employee’s first civil or a rate in excess of 600,000 rupees per
religious marriage, first civil or religious annum, except in relation to sections 5
marriage of a child or in case of death of an (discrimination in employment and
employee’s close family member. The Act further occupation), 26 (equal remuneration for
amends the definition of a “worker”. work of equal value), 32 (payment of
remuneration in other specific
The Act provides for various employee rights
circumstances), 33 (payment of
such as the rights against discrimination, which
additional remuneration), 34 (restriction
has been extended to include impairment,
on deductions), 49 (Juror’s leave), 50
marital or family status, pregnancy and different
(leave to participate in international
treatment between employees of subsidiaries
sports events), 52 (maternity leave and
and/or parent companies.
other benefits) 53 (paternity leave), 54
The Act further protects employees against (End of Year bonus) and Parts VI
precarious employment and confers on persons (termination of agreement and reduction
performing atypical work the status of a of workforce), Part VII (Workfare
“worker”. Programme Fund), Part VIII (Portable
Retirement Gratuity Fund) and Part XI
The Act (a) deals with the requirement for a (violence at work); and
written agreement governing the employment
relationship, (b) sets the minimum age for d) does not include a person performing
employment, hours of work, remuneration and atypical work, except in relation to
other conditions of employment such as sections 5 (discrimination in employment
transport, various leave categories (with new and occupation), 26 (equal remuneration
categories of leave being introduced) and for work of equal value), 31 (payment of
various facilities to be afforded to the employee remuneration due on termination of
and (c) sets out the rights of employees as well agreement), 33 (payment of additional
as the process to be followed by employers upon remuneration), Part VI (termination of
termination of employment. agreement and reduction of workforce),
Part VII (Workfare Programme Fund),
Part VIII (Portable Retirement Gratuity
Fund) and Part XI (violence at work),
Part XII(Administration) and Part XIII
(Miscellaneous).

Note: Atypical workers, include homeworkers,


online platform workers and workers who may
work for one or more employers at the same
time and who chooses when, where and how to
work.

Where we refer to “worker” in this Guide, this


relates to a provision only applicable to workers
as defined under the Act and where we refer to
“employees” this means that the provision will
apply to all employees regardless of earnings
(save for specified exclusions set out in the Act
i.e. for migrant or non-citizen employees).

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2.7. A worker is also deemed to be employed
2. Hiring by an employer where the worker is
2.1. Employees can either be hired on a full required to report at, or is conveyed to, a
time or part time basis, and for a definite place of work by his employer or the
or indefinite period. latter’s agent and the worker is found fit
and willing to perform the work for which
2.2. Those employees who are hired for an he was required to report or conveyed to.
indefinite period are called permanent
employees. 3. Probation or trial period
2.3. Workers, other than migrant workers, who 3.1. A contract of employment can contain a
are employed in a position which is of clause relating to a probationary or trial
permanent nature, shall not be employed period. The probationary or trial period
on a contract of fixed duration for the normally ranges from three to six months
performance of work relating to the fixed, (but may exceed six months depending on
recurring and permanent needs of the the length of the employment contract if it
continuous normal business activity of the is a contract for a definite duration and
employer. particular field of business activity).
2.4. Notwithstanding the above, an employer 3.2. However, the probationary or trial period
may enter into an agreement with a is not a period that can be presumed from
worker for a specified period of time in the circumstances. Both the principle and
relation to the temporary needs of the duration of the probationary period should
employer: be settled when the contract is concluded.
(a) for the performance and completion 3.3. If the above conditions are met, an
of a specific piece of work which is employer can dismiss an employee
temporary and non-recurring; without notice, or by giving a shorter
notice than the statutory notice of 1
(b) in respect of any work or activity month, during the probationary or trial
which is of a temporary, seasonal or period. This shorter notice period must be
short-term nature or short-term work set out in the contract of employment.
arrangements that are normally
project related and aligned to
changes in the product market; 4. Consideration for full-time
(c) in replacement of another worker
or permanent employment
who is on approved leave or and promotion
suspended from work;
4.1. In cases of vacancy in the full-time or
(d) for the purpose of providing training permanent workforce of an employer,
to the workforce; priority of consideration for such vacancy
must, as far as practicable, be given to a
(e) for a specific training contract; or part-time worker or a worker who is on a
contract for a definite period.
(f) in accordance with a specific work or
training scheme set up by the 4.2. In cases of vacancy in a higher grade, an
Government or a statutory body for a employer must, as far as practicable, give
determinate duration. consideration to the qualifications, merit
and seniority of its monthly paid-workers.
2.5. Employment contracts for a definite period Notice of the vacancy must be posted up
can be extended by a written agreement. by the employer in a conspicuous place at
If there is a break not exceeding 28 days least 5 days before the promotion or
between any 2 fixed terms contracts of a selection exercise is carried out.
worker, the worker is deemed to be in
continuous employment.

2.6. The terms and conditions of employment


of workers employed on a fixed term
contract must not be less favourable than
those of a worker employed on an
indeterminate contract performing the
same or similar work, and having regard
to the relevant similar level of
qualifications, skills or experience.

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A day shall consist of:
5. Hours of work
(iii) 9 hours’ work for a worker
5.1. The normal day’s week for every worker,
employed on a five day week;
other than a part-time worker or garde
malade, is 45 hours of actual work, (iv) 8 hours’ work for a worker
excluding time allowed for meal and tea employed on a six day week;
breaks and is made up as follows: and
(a) Where the worker is required to work (v) 12 hours’ work in the case of a
five days in a week, nine hours’ work garde malade.
on any five days of the week, other
than a public holiday; 5.5. Overtime

(b) Where the worker is required to work (a) The general principle is that a worker
on six days in a week: must be given a 24-hour notice
before being required to perform
(i) eight hours’ work on any overtime work and the worker may
five days of the week other than refuse to undertake this extra work
a public holiday; on 24 hours’ notice.
(ii) five hours’ work on one other (b) The applicable rate for overtime hour
day of the week other than a on a weekday is 1.5 times the rate at
public holiday. which the work is remunerated when
performed during the normal hours.
5.2. The normal working week of any worker
A worker shall be granted a rest
may start on any day of the week,
period of at least ten minutes with
whether or not a public holiday.
pay, before performing the extra
5.3. A worker, other than a garde malade, work.
shall not be required to work for more
(c) A worker performing overtime on a
than 12 hours per day, except in special
public holiday earns twice his hourly
circumstances and subject to any other
rate for the normal hours worked on
applicable law.
that day. After normal working hours,
5.4. Notional calculation of basic hourly rate the worker must be remunerated
thrice his hourly rate for every
For the purposes of calculating the basic additional hour worked on that day.
hourly rate due for extra work or any
other reason (except where expressly (d) According to the Act, an agreement
provided in an enactment), the number of setting out the remuneration payable
hours or work shall notionally be for work on public holidays and for
calculated: overtime as valid. However, the Act
requires that such an agreement
(a) a month shall consist of: must state:

(i) 22 days for a monthly-paid (i) the maximum number of public


worker working for five days in a holidays;
week, and accounting for
198 hours of work, and (ii) the maximum number of hours
of overtime on weekdays and
(ii) 26 days for a monthly-paid public holidays; and
worker working for six days in a
week and accounting for (iii) the monthly basic or hourly
195 hours of work. basic salary of the worker.

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5.6. Flexitime
6. Meal and tea breaks and
(a) Either a worker or an employer may meal allowance
request to work on flexitime.
6.1. For every four hours of work, workers
(b) An employee may request to work on have a right (unless otherwise agreed with
flexitime to care for his child below the employer) to one meal break of one
the age of four or having an hour and to one tea-break of at least
impairment. 20 minutes or two tea-breaks of at least
ten minutes each. Any such break shall be
(c) The employer shall inform a worker
without pay.
whether his request is granted or
not, within 21 days from the date of 6.2. Where a worker is required to perform
the worker’s request. The employer more than two extra hours of work after
must grant the request, unless there having completed a normal day’s work on
are reasonable business grounds to any day of the week, he shall, in addition
refuse that request, such as: to any remuneration due for overtime
work, be provided by the employer with
(i) an inability to reorganise work;
an adequate free meal or be paid a meal
or
allowance of the prescribed amount of
(ii) a detrimental impact on quality Rs85.00 per day. The meal allowance
or performance. must be paid no later than on the last
working day of the pay period.
(d) The employer must establish a core
period of the day during which the 6.3. However, the meal allowance specified
employee is required to be at work, above is not payable to a migrant worker
and a period of time within which where he is given a free meal.
work must be performed. Alternatively, the migrant worker can also
be paid a meal allowance which is of a
5.7. Shift Work higher value than the prescribed amount.

(a) An employer may request a worker 7. Remuneration


to perform shift work, scheduled on a
monthly basis. 7.1. Intervals
(b) Subject to a worker’s consent, an Remuneration may be paid to the
employer may not require a worker employee on a daily, weekly or monthly
to work on shifts for more than eight basis but may not be paid at intervals of
hours in a day or five consecutive more than one month.
nights, save for work to be performed
in a prescribed sector or industry. 7.2. Payslips

(c) A monthly schedule of duty worked The employer is required to issue the
out on a roster basis and indicating employee with a payslip and where the
the date and time at which a worker employee is paid by way of cash or
ought to attend duty must be handed cheque to sign a remuneration book
over to the worker at least one week stating the particulars of the remuneration
before the schedule is due to take paid.
effect. Likewise, the monthly
schedule of duty must be posted up 7.3. Deductions
in a conspicuous place at the place of
work. (a) No deductions are allowed to a
worker’s salary, save and except
(d) A worker employed on shift work those either authorised by the worker
must be paid an allowance of 15% of in writing or authorised by law or any
his basic wage in addition to his court order.
normal day’s wage when he works on
a night shift. (b) In case of refund of advance salaries,
the worker needs to give his consent
in writing and the refunds shall not
exceed one-fifth of the monthly
salary.

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(c) Maximum deduction (in any case) (ii) the employer pays for the
shall be less than one half of the difference between the increase
worker’s remuneration for any pay in salary and the prescribed
period. amount of compensation.

(d) Employers cannot apply financial 7.6. Transport


sanctions (fines) to workers for
negligent work or damage to the (a) Where the distance between a
employer’s property. Employers worker’s residence and his place of
cannot apply any interest or financial work exceeds 3km, an employer
charges on advances made to must provide free transport from the
workers. worker’s residence to his place of
work and back or pay him the
7.4. Payment of remuneration for work equivalent of the return bus fare. If
performed on public holiday called to work after normal working
hours (where public transport service
(a) A worker is entitled to a normal day’s by bus is not available), the worker
pay in respect of every public has the right to a free transport
holiday, other than a Sunday, that means from his employer,
occurs on any normal working day. irrespective of the distance.
(b) If a worker works on a public holiday, (b) Every worker who attends work by
other than a Sunday, he shall be paid his own means of transport shall be
remuneration due as overtime, as entitled to an allowance equivalent to
contemplated in paragraph 5.5 the corresponding return bus fare,
above, as well as his normal day’s where the distance between the
pay provided for under paragraph (a) worker’s residence and his place of
above. work exceeds 3km.
(c) Any agreement providing that a (c) A worker who is requested by his
worker will relinquish his right to a employer to attend duties from a site
paid public holiday or will forego such of work to another site of work
leave shall be considered void. during the course of his employment,
must be paid the return bus fare or
7.5. Additional remuneration to the amount actually spent on
compensate increased cost of living transport if no public transport
service by bus is available.
(a) An employer must pay to every
employee, an additional 7.7. Failure to pay remuneration
remuneration as may be prescribed
to compensate for an increase in cost (a) Where a supervising officer of the
of living. Ministry of Labour is of the view that
an employer has failed to pay any
(b) An increase in salary specified in remuneration due to a worker or a
writing or agreed upon by an group of workers despite a notice of
employee during a year as being an compliance having previously been
increase in wage or salary designed served on the employer, the
specifically to compensate the supervising officer may apply to the
employee for an increase in the cost Judge in Chambers of the Supreme
of living for the said year, which is Court for a “protective order” to be
not the prescribed additional issued.
remuneration mentioned at
paragraph (a) above nor an (b) The “protective order” may be issued
increment nor an increase on against:
promotion, shall be deemed to be the
compensation for increase in cost of (i) the employer; or
living if:
(ii) any bank or other financial
(i) such increase is more than the institution holding funds on
prescribed amount of behalf of the employer and
compensation, or
shall be in relation to the amount of
remuneration due to the worker of
group of workers

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(c) For a “protective order” to be issued, (c) Notwithstanding (a) above, a worker
the Judge in Chambers must be who remains in continuous
satisfied that: employment with the same employer
for a period of six consecutive
(i) remuneration is due and there months and who has been present on
has been non-compliance with a all the working days during that
notice issued by the supervising period, shall be entitled to one day’s
officer; annual leave during each subsequent
month up to the twelfth month, while
(ii) there is a risk that the employer he remains in continuous
may dispose of his property to employment with the same
the prejudice of the worker or employer.
group of workers to whom
remuneration is due; and (d) Where an employer and a worker are
unable to agree as to when the
(iii) the amount or value of the annual leave days are to be taken,
property is proportionate to the half of the leave period shall be fixed
amount of the remuneration by the employer and the other half
due. by the worker.
7.8. Wage Guarantee Fund Account (e) Except where reasonable cause is
shown, a worker shall give his
(a) The Wage Guarantee Fund Account is
employer at least 48 hours’ advance
an account which will be held by the
written notice where he wishes to
Workfare Programme Fund, whose
take more than one day’s annual
purpose is to pay:
leave consecutively.
(i) remuneration due to a worker
(f) An employer shall not, without
up to an amount of Rs.50,000
reasonable cause, withhold the
and
granting of annual leave to a worker.
(ii) any amount due as may be
(g) Where a worker has not taken or
prescribed in relation to the
been granted all the leave to which
Portable Retirement Gratuity
he is entitled, he shall be paid a
Fund where contributions have
normal day’s wage in respect of each
not been made,
day’s leave still due at the end of the
where the employer is considered to period of 12 consecutive months.
be insolvent by the Supreme Court.
8.2. Sick Leave
(b) There is a set procedure under the
(a) Where a worker remains in
Act providing for a worker’s
continuous employment for a period
entitlement to claim for payment of
of 12 months with the same
unpaid remuneration where his
employer, he becomes entitled to
employer is insolvent.
15 working days’ of sick leave on full
pay during each subsequent
8. Leaves 12 month period whilst he remains
in the continuous employment of the
8.1. Annual leave employer.
(a) Any worker who remains in (b) Notwithstanding (a) above, where a
continuous employment with the worker remains in continuous
same employer for a period of 12 employment with the same employer
consecutive months is entitled during for a period of six consecutive
each subsequent period of 12 months months and who has been present on
while he remains in continuous all the working days during that
employment to 22 working days period, he will be entitled to
annual leave. one day’s sick leave during each
subsequent month up to the twelfth
(b) The leave days specified in (a) above
month.
may be taken on full day, half day or
such other shorter period as agreed (c) Any unused sick leave during the
between an employer and a worker. preceding 12 months may be
accumulated up to a maximum of
90 working days.

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(d) Where a worker absents himself on 8.4. Special Leaves
ground of illness, he shall notify his
employer of his illness on the first Workers who remain in continuous
day of absence, unless the worker employment with the same employer for a
could reasonably not do so or where period of 12 consecutive months are
the employer is already aware of the entitled to the following special paid
nature of the illness. categories of leave:

(e) Where a worker remains ill for more (a) six working days’ leave on the
than three consecutive working days, celebration of the worker’s first civil
he shall forward to his employer a or religious marriage;
medical certificate either:
(b) three working days’ leave on the first
(i) on the fourth day of absence; or civil or religious marriage of the
worker’s son or daughter; and
(ii) if the worker is admitted to a
hospital or other medical (c) three working days’ leave on the
institution, within three days of death of the worker’s spouse, child,
his discharge from the hospital father, mother, brother or sister.
or medical institution.
8.5. Juror’s Leave
8.3. Vacation Leave
An employee shall be granted paid leave
(a) A worker, other than a migrant by his employer during the period of his
worker, is entitled to paid vacation absence from work pursuant to a
leave, subject to the following summons issued to him to attend service
conditions: as juror.

(i) the worker must have remained 8.6. Leave to participate in international
in continuous employment with sports events
the same worker for a period of
at least five consecutive years; (a) An employee who is selected or
nominated to participate in an
(ii) the vacation leave is for a period international sport event to represent
of not more than 30 days, Mauritius shall be granted paid leave
whether taken consecutively or by his employer for the duration of
otherwise for every period of the event or such longer period as
five consecutive years; and may be necessary.

(iii) the vacation leave is to be spent (b) The employee must give advance
abroad, locally or partly abroad notice as well as documentary
and partly locally. evidence as to the duration of this
absence.
(b) In case the worker opts to spend the
vacation wholly or partly abroad, his 8.7. Leave to attend Court
pay must be effected at least seven
working days before he goes abroad. (a) A worker is entitled to leave when
attending Court regarding any matter
(c) The vacation leave shall be on full in which he is a party or in which he
pay, is deemed to constitute is a witness. A worker may be
attendance at work, and is not be required to produce a certificate of
cumulative. attendance when he attends Court in
his own capacity.
(d) The computation of the period of five
consecutive years starts as from the (b) When the worker attends Court as
date of the commencement of this representative of the employer or on
Act and any subsequent eligibility its behalf, the leave shall be with full
period of five consecutive years is pay.
computed after the worker resumes
work after the previous vacation
leave.

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10.2. Maternity Allowance
9. Medical facilities
(a) Female employees were in the
9.1. Any employer employing at least ten
continuous employment of the
workers should provide appropriate
employer for 12 consecutive months
arrangements for the medical and health
immediately preceding the birth of
requirements of its workers.
their child are entitled to an
9.2. The employer has a duty to provide allowance of Rs.3,000 to be paid
transport facilities at its own expense, to within seven days of confinement.
any worker suffering from an injury or
(b) Female employees who reckon less
illness at his place of work. The employee
than 12 months of continuous
must be accompanied by a person
employment are not entitled to this
designated by the employer.
maternity allowance.

10. Maternity and paternity (c) Additional breaks: Breast-feeding


employees have the right to two
benefits additional breaks of 30 minutes each
or to one break of one hour per day,
10.1. Maternity leave
over a period of six months following
(a) The entitlement is 14 weeks (which confinement or over such periods as
may be taken before birth provided may be medically advised.
that at least seven weeks are taken
(d) A female employee who is on
immediately after the birth) on full
maternity leave or who is nursing her
pay for female employees who have
unweaned child shall not receive
remained in continuous employment
notice of termination of employment
with the employer for 12 consecutive
from her employment, for any
months immediately preceding the
reason, unless the grounds for
beginning of the leave.
termination relate to the economic,
(b) If the employee does not satisfy the technological, structural or similar
12 months period of continuous nature which are affecting the
employment, she is still entitled to employer’s activities.
maternity leave with pay.
10.3. Paternity leave
(c) If the female employee, reckoning
(a) A male employee is entitled to five
more or less than 12 months
continuous working days’ leave to
continuous employment, gives birth
begin within two weeks from the
to a still born child, she is also
birth of his child by his spouse.
entitled to 14 weeks’ maternity leave
on full pay upon production of a (b) Paternity leave must be on full pay
medical certificate. where the employee has been in
continuous employment with the
(d) Female employees who suffer a
same employer for a period of at
miscarriage (duly certified by a
least 12 months prior to the date of
medical practitioner) are entitled to
the birth of the child. Male employees
three weeks leave on full pay
who reckon less than 12 months
immediately after the miscarriage.
continuous employment shall be
(e) If a female employee who reckons entitled to paternity leave without
more than 12 months continuous pay.
employment adopts a child of less
than 12 months, she is entitled to
14 weeks of maternity leave on full
pay. The female employee must
produce a certified copy of the
relevant Court order as well as a
copy of the act of birth of the child to
her employer.

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12.4. Protection against termination:
11. End of year bonus
(a) Circumstances
11.1. Where an employee remains in continuous
employment with the same employer for The Act sets out a number of
the whole or part of a year and with the instances which prevent termination
same employer as at 31 December of the of employment by reason of, for
year, the employee is entitled at the end example, race, colour, caste, national
of that year to a bonus equivalent to extraction, social origin, place of
one-twelfth of his earnings for that year. origin, age, pregnancy, religion,
political opinion, sex, sexual
11.2. An employee who remains in continuous
orientation, HIV status, impairment,
employment with the same employer for
marital status or family
only part of the year and:
responsibilities, absence during
(a) whose employment is terminated in maternity leave, absence through
the course of the year for any illness when accompanied by a
reason; or medical certificate, membership to a
trade union or because of a complaint
(b) who retires in the course of the year filed against the employer.
in accordance with the provisions of
any agreement or certain enactments (b) Suspension
relating to the sugar industry; or The employer may suspend an
(c) who resigns in the course of the year employee pending the outcome of
on or after having been in continuous disciplinary proceedings on account
employment for at least eight months of the employee’s alleged misconduct
or poor performance on full pay. The
shall be paid, not later than the last employer shall inform the employee
working day of the month of his of the reasons for the suspension in
termination of employment, his retirement writing at the time of the suspension.
or his resignation (as the case may be) to Any suspension without pay as
a bonus equivalent to one-twelfth of his disciplinary sanction following a
earnings for that year. hearing shall not exceed four working
days.
12. Termination of
13. Employment following
employment
transfer of undertaking
12.1. Notice. Unless otherwise agreed in the
employment contract either party may 13.1. An employee’s employment is deemed to
give at least 30 days’ notice of intention to be continuous if he is offered employment
terminate the employment contract. with a new employer, on terms and
Notice may be in verbal or written form. conditions which are not less favourable
Where the employer terminates the than those of his previous agreement and
employment contract, he is required to that he accepts the offer, following a
provide the reasons for termination. transfer or taking over of a trade or
business by the new employer.
12.2. Note that the termination of employment
unilaterally by the employer may be 13.2. An employee is entitled to claim that his
challenged for being unjustified although employment has been terminated without
the employer has given notice of justification in case he refuses an offer
termination. made in accordance with paragraph 13.1
above.
12.3. Payment in Lieu of Notice. An employer
or an employee may, in lieu of giving the 13.3. However if the working conditions of an
requisite notice, pay to the other party the employee substantially change following a
sum that represents the remuneration transfer or taking over of a trade or
that the employee would have been paid business, the employee may claim that his
had he been in employment during the contract of employment has been
period that constitutes the notice period. terminated by the new employer without
justification.

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14.4. A reduction of workforce or a closing down
14. Reduction of workforce and of an enterprise is to be unjustified if the
closure of enterprises employer does not comply with these
procedures or the intended reduction or
14.1. For the purposes of this section: closing down of the enterprise is found by
the Redundancy Board to be unjustified.
(a) “Redundancy Board” shall mean
the board established under 14.5. Where the reasons for the reduction of
Section 73 of the Act, which shall workforce or the closing down are
deal with all cases of reduction of unjustified, the employer is liable to pay
workforce and closure of enterprises severance allowance to the employee at
for economic, financial, structural, the rate of three months’ remuneration
technological or any other similar per year of service.
reasons.

(b) “undertaking” includes:


15. The Workfare Programme
Fund
(i) any economic, technical,
commercial, financial or service 15.1. For the purposes of this section:
activities by way of trade or
business, whether or not the (a) “Transition Unemployment
trade or business is carried out Benefit” shall mean the transition
for profit, in which workers are unemployment benefit at the rate
employed and the objective is to specified in the Sixth Schedule of the
produce or provide market Act.
commodities or services of any
kind; (b) “Workfare Programme Fund” shall
mean the fund established under
(ii) any Ministry or Government Section 76 of the Act and whose
department, statutory body, responsibility falls within the Ministry
local authority, and any other of Social Security, whose objects are
form of organisation or body of to pay for, inter alia, any Transition
persons or any part thereof; Unemployment Benefit, remuneration
due to a worker where an enterprise
(iii) a branch of an undertaking. is considered to be insolvent
following a decision of the Supreme
14.2. Certain procedures described in the Act Court or in case of force majeure.
apply to an employer of not less than 15
employees or having an undertaking 15.2. The employer must pay a contribution to
whose annual turnover is at least Rs.25 the Workfare Programme Fund at a rate
million, in the event where the employer specified in the Second Schedule of the
reduces its workforce or closes down its Human Resource Development Act. The
enterprise. employee’s contribution to the Workfare
Programme Fund is equivalent to 1% of
14.3. Those procedures include, inter alia: his basic wage or salary.
(a) ensuring that prior consultation and 15.3. The Government will grant a Transition
negotiations are effected with Unemployment Benefit, which is paid out
recognised trade unions or elected of the Workfare Programme Fund, to
employee’s representatives; every employee (excluding a part-time
worker, a migrant worker or a non-citizen)
(b) exploring possibilities to avoid the
who meets the criteria set out in the Act.
reduction or workforce or closing
The Transition Unemployment Benefit will
down;
be paid for a minimum period of one
(c) paying compensation by way of month and a maximum period of twelve
settlement; and months.

(d) finally, when the reduction of


workforce or closing down becomes
inevitable, the giving of a notice to
the Redundancy Board with a
statement explaining the cause for
the reduction or closure, at least 30
days before the intended reduction or
closing down.

10
(b) where the employee (excluding
16. Certificate of employment migrant workers or non-citizens) has
Every employee, whose employment has been under one or more determinate
been terminated or who has resigned, agreements with the same employer
must be provided with a certificate of in respect of a position of a
employment, bearing the seal of the permanent nature and that the
company, from his employer within employer terminates the agreement
seven days of the termination of his of the employee.
employment.
18.2. Unless otherwise agreed by the employer
and employee, no severance allowance is
17. Compromise Agreement payable where an employee and an
employer enter into a fixed term
17.1. In cases where there is a dispute employment contract:
concerning a worker’s:
(a) for the performance and completion
(a) termination of employment of a specific piece of work which is
temporary and non-recurring;
(b) short payment; or
(b) in respect of any work or activity
(c) non-payment of wages, which is of a temporary, seasonal or
the worker and the employer may agree short-term nature or short-term work
arrangements that are normally
on a compromise agreement in resolution
of that dispute, provided that the worker project related and aligned to
has received advice from a relevant changes in the product market;
independent adviser on the terms of the
(c) in replacement of another worker
agreement and its effect on the worker’s
who is on approved leave or
entitlement to enter a claim in court. suspended from work;
17.2. The compromise agreement is valid only
(d) for the purpose of providing training
if: to the workforce;
(a) it has been duly vetted by an
(e) for a specific training contract; or
independent adviser (who includes a
qualified law practitioner, an officer (f) in accordance with a specific work or
or member of a registered trade training scheme set up by the
union or an officer of the Ministry of Government or a statutory body for a
Labour and employment relations); determinate duration,
and
and the employment contract comes to an
(b) the independent adviser was not a end.
party to the matter for the employer.
18.3. The severance allowance shall be
17.3. Failure to comply with the aforementioned calculated as follows:
conditions entitles the worker to enter a
court claim for any payment due. (a) for every period of 12 months of
continuous employment, a sum
18. Severance allowance equivalent to three months
remuneration; and
18.1. Subject to the exceptions listed in
paragraph 18.2 below, where an employer (b) for any additional period of less than
terminates the employee’s contract, the 12 months, a sum equal to one
employer is required to pay severance twelfth of the sum calculated in
allowance to the employee who has been paragraph (a) above multiplied by
in continuous employment for a period of the number of months during which
not less than 12 continuous months: the employee has been in continuous
employment of the employer.
(a) where the employee has been on a
contract of indeterminate duration
and the employer terminates his
agreement; or

11
18.5. Deductions from severance allowance as monthly basic wage or salary, and who
is not more than 50 years of age) not
The following deductions may be falling under the purview of the
made from the severance allowance aforementioned paragraph 19.2, shall, for
which is payable: the purposes of this section be referred to
as the ‘eligible employee’.
(a) any gratuity which has been granted
by the employer; 19.3. The contributing employer
(b) any contribution made to any fund or An employer, other than certain statutory
scheme by the employer; bodies or who does not have a private
pension scheme in place must make
(c) contributions which have been made contributions to the Mauritius Revenue
by the employer to the Portable Authority in respect of each eligible
Retirement Gratuity Fund. employee in his employment on the
commencement of this Act.
19. Portable Retirement
19.4. The contributing rate
Gratuity Fund (“PRGF”)
The rate of contribution has been
19.1. Purpose of the PRGF prescribed by the Workers’ Rights
(Portable Retirement Gratuity Fund)
The PRGF has been established under the Regulations 2020, and make up a
Act to provide for the payment of a
cumulative figure of 4.5% of the monthly
gratuity: remuneration of the eligible worker,
(a) to an eligible employee on his depending on the category of Small or
retirement; Medium Enterprise of the contributing
employer as well as its annual turnover.
(b) to the legal heirs of an eligible
employee, on death of the latter; 19.5. Contributions for past services

(a) In addition to the contributions made


(c) to a self-employed who has
contributed to the PRGF, on his by the contributing employer in
retirement; or respect of each eligible employee in
his employment on the
(d) to the legal heirs of a self-employed commencement of this Act, the
who has contributed to the PRGF, on contributing employer must also pay
the death of the self-employed. for the past services of its eligible
employee in cases where:
19.2. The eligible employees
(i) the employment of an eligible
The following are not eligible to join the employee is terminated;
PRGF:
(ii) the eligible employee retires on
(a) a job contractor; attaining the appropriate
retirement age; or
(b) a public officer or a local government
officer; (iii) the eligible employee dies.

(c) a worker whose retirement benefits (b) The contribution for past services
are payable under the Statutory must accordingly be paid either to
Bodies Pension Funds Act; the Director General of the Mauritius
Revenue Authority (this can be paid
(d) a worker whose retirement benefits at any time prior to the occurrence of
are payable in accordance with a any one of the events at
private pension scheme; paragraph 19.5 or to the retiring
eligible employee or to the heirs of
(e) a migrant worker or a non-citizen; the eligible employee, not later than
and one month after the date of
termination of employment, or the
(f) a worker drawing a monthly basic
date of retirement or death of the
wage or salary of more than
eligible worker, as the case may be.
Rs.200,000.
(c) The contributions for past services
Any employee (including an atypical
shall be computed on the last drawn
worker drawing no more than Rs.200,000

12
salary drawn by an eligible employee, (iii) the eligible employee retires or
as the commencement of the Act of dies and the value of the
at the time the employment of the accumulated fund standing in
eligible employee is terminated or the the account of the eligible
eligible employee retires or dies, as employee in respect of his
the case may be. length of service with his
contributing employer, including
19.6. Calculation of the lump sum his past service is less than the
lump sum calculated in terms of
(a) The lump sum of each entitled paragraph 19.6 above,
employee is computed on the basis
of: the contributing employer must pay
the difference between the value of
(i) 15 days’ final remuneration for the accumulated fund and the lump
every period of 12 months’ sum.
employment; and
(b) Failure by contributing employer to
(ii) a sum equal to one twelfth of pay the shortfall between the value
the sum payable for 12 months’ of the accumulated fund and the
employment multiplied by the lump sum, to the eligible employee
number of months during which (or to his legal heirs) amounts to the
the eligible employee has commission of an offence and on
remained in the employment of conviction, the contributing employer
the contributing employer, for shall be liable to a fine of not less
every period of less than than Rs.50,000 nor more than
12 months. Rs.150,000 and to imprisonment for
a term not exceeding 12 months.
(b) For the purposes of calculating the
lump sum, the final remuneration of 19.8. In case of surplus of contributions by
an eligible employee shall mean: the contributing employer
(i) the remuneration drawn by an (a) Where the value of the accumulated
eligible employee for the last fund standing in the individual
complete month of his account of an eligible employee in
employment with his respect of his length of service
contributing employer; or (including his past service) with his
contributing employer exceeds the
(ii) the average monthly
lump sum computed in accordance
remuneration drawn by an
with paragraph 19.6 above, the
eligible employe, including
amount representing the surplus
payment made over a period of
between the value of the
12 months before the eligible
accumulated fund and the lump sum
employee ceases to be in the
shall be:
employment of his contributing
employer in any manner (i) used to make up for any unpaid
whatsoever as the higher of: contribution due by the
contributing employer; or
• commission in return of services
up to Rs.1,200,000; (ii) credited in the account of the
contributing employer in the
• end of year bonus; or
PRGF and used by the
• any other regular payment. contributing employer to pay the
contributions for the past
19.7. In case of shortfall of contributions by services of its eligible
the contributing employer employees, where appropriate.

(a) If: 19.9. Payment of gratuity to an eligible


employee
(i) the employment of the eligible
employee is terminated by the In case of employment with the same
contributing employer; employer

(ii) the eligible employee ceases to (a) Upon the retirement of an eligible
be in the employment of the employee or on his death, the eligible
contributing employer; or employee or his legal heirs, as the

13
case may be, shall be paid a gratuity In case of employment with one or more
made up of the accumulated fund employers
standing in his individual account.
(c) Upon the retirement of an eligible
(b) Where the value of the accumulated employee, or on his death, the
fund in the account of the eligible eligible employee or his legal heirs,
employee is less than the lump sum as the case may be, shall be paid a
calculated in accordance with gratuity made up of the accumulated
paragraph 19.6 or any payment fund standing in his individual
provided in any other relevant account in respect of his total length
enactment or any agreement: of service with each contributing
employer.
(i) the administrator of the PRGF
shall pay to the eligible (d) Where the value of the accumulated
employee or to his heirs, as the fund in the account of the eligible
case may be, the gratuity employee insofar as it relates to the
equivalent to the value of the contributions, including interests,
accumulated fund standing in paid by the last employer in the
the individual account of the account of the eligible employee, is
eligible employee; and less than the lump sum calculated in
accordance with paragraph 19.6 or
(ii) the contributing employer shall any payment provided in any other
pay to the eligible employee or relevant enactment or any
his legal heirs, as the case may agreement:
be, the balance of the gratuity
equivalent to the amount (i) the administrator of the PRGF
representing the difference shall pay to the eligible
between the value of the employee or to his heirs, as the
accumulated fund and the lump case may be, the gratuity
sum. equivalent to the value of the
accumulated fund standing in
the individual account of the
eligible employee; and

(ii) the last contributing employer


shall pay to the eligible
employee or his legal heirs, as
the case may be, in respect of
the period during which the
eligible employee has been in
his employment, the balance of
the gratuity equivalent to the
amount representing the
difference between the value of
the accumulated fund and the
lump sum.

14
20.3. The other employee and the employer
20. Gratuity on retirement for may agree on an advance payment of the
other employees total gratuity payable at the retirement
age, amounting to the gratuity payable at
20.1. Employees to whom gratuity on the age of 60 and calculated on the basis
retirement is paid of the lump sum, if the other employee,
after having attained the age of 60,
A gratuity on retirement based on the remains in continuous employment with
lump sum computed in accordance with the same employer up to the retirement
paragraph 19.6 above is payable to age.
employee who do not qualify as eligible
employees for the purposes of the PRGF.
The employees entitled to this gratuity on
21. Death grant and gratuity at
retirement (the “other employees”) are: death
(a) a worker whose retirement benefits 21.1. Upon the death of a worker who has been
are payable in accordance with a in continuous employment with the same
private pension scheme; employer for not less than 12 consecutive
months, the employer shall pay a death
(b) a worker drawing a monthly basic grant of Rs.5,000 to:
wage or salary of more than
Rs.200,000 and whose retirement (a) his spouse on production of a written
benefits are not payable under any statement by him that he was living
private pension scheme; and with the deceased under the same
roof at the time of death; or
(c) a migrant worker or a non-citizen.
(b) if he leaves no spouse, the person
20.2. Deductions from the gratuity on who satisfies the employer that he
retirement has borne the funeral expenses.
An employer may make the following 21.2. The employer shall pay a gratuity as
deductions to the gratuity payable on specified in the Act to the spouse or
retirement to other employees: dependents of a deceased employee
where the employer was in continuous
(a) half the amount of any gratuity due
employment with the same employer for
at the retirement age or the age of
at least 12 months prior to his death.
60 or at death from any fund or
scheme, computed by reference only
to the employer’s share of
contributions;

(b) five times the amount of any annual


pension granted at the retirement
age or the age of 60 or at death from
any fund or scheme, computed by
reference only to the employer’s
share of contributions;

(c) any other gratuity granted at the


retirement age or the age of 60 or at
death by the employer; or

(d) ten times the amount of any other


annual pension granted at the
retirement age or the age of 60 or at
death by the employer.

15
Notes
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