G.S. 84
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(d)
(e)
- 3 -
XCR(79)32
Since in any consecutive period of 7 days, an employee would be working six days, with the seventh a rest day, some employers argue (wrongly) that only six days' wages need to be paid if the employee was piece- rated or daily-rated. This is contrary
to the original intention that all 7 days should be paid. Again there would be advantage in expressly stating the position.
To amend section 41D(1) to make it clear that upon termination of an employee's contract for whatever reason after completion of a period of 12 months employment, the em- ployer must pay a sum equal to that part of the 7 days' annual leave that has not yet been granted (Clause 4 (a)). As at present worked, section 41D(1) refers only to termination under section 9 (summary dismissal without notice by employer). This has been construed as implying that a "good" employee leaving for other reasons (e.g. termination of contract by either party by notice or by payment in lieu of notice under sections 6 and 7, waiver of notice of termination under section 8, wrongful termination under section 8A, and termination of contract without notice by employee under section 10) would not enjoy the benefit. The proposed amendment seeks to prevent such
a construction.
To amend the qualifying period in section 41D(2) for pro-rata payment of annual leave on termi- nation of employment to read "3 months or
more
#1
(Clause 4(b)). As this section is worded at present, an employee has to work "more than 3 months".
The
revised working will achieve consistency vis-a-vis section 40 which, inter alia,
prescribes the qualifying period for
statutory holidays with pay, and vis-a-vis section 41D(1).
Consultation
5
The Labour Advisory Board has unanimously endorsed the proposed amendments.
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