Over 50 employers in court for NIS payment, other breaches

– Minister Ally says labour laws must be adhered to

THE Ministry of Social Protection, Department of Labour, is aggressively pursuing cases of labour breaches by private employers to keep them in line, thus ensuring they remain in compliance with labour laws. Presently, there are over 50 employers before the courts for being negligent for various labour offences. In addition to being prosecuted, other legal ramifications these employers can face include the withdrawal of their operating licence. On Monday, this was made vehemently clear by Minister of Social Protection, Amna Ally, on INSIGHT, VOG 102.5FM.

The Minister revealed that there are labour officers present in every administrative region, to mitigate labour issues affecting employees of, particularly, private companies all across Guyana. She stressed that the private security sector is one of the most negligent sectors as it relates to salary payments being below the $42,400 threshold and non-payment of workers National Insurance Scheme (NIS) contributions. Despite the labour law stipulates that workers must be paid $255 per hour, some security companies are paying their workers as low as $120 per hour. Ally said that the Ministry delved into at least one case and found it to be true. The matter is presently before the courts and the possibility lies that the company’s license can be revoked. “We cannot allow the workers out there to suffer at the hands of these people….they have to comply with the labour laws, they have to and once they don’t comply, we are going to make every effort to bring them in line,” Ally said.

Over the last few years, owners of several security firms found themselves in hot water with their employees for non-payment of their NIS, despite deducting same from their salaries. In many instances, the workers are only made aware of this, when they approach NIS for health and other social benefits. It is then they are told that they have not met the required contribution to have such benefits.

Last month NIS had issued the names of several security firms, as well as of other companies, that owed tens of millions of dollars in payment. Some who were on the list include Strategic Action Security Services, Hopkinson Mining Security Services Inc., Camex Security Services Inc., Atlas Security Service Inc., Amazon Security and Investigation Services and Sentinel Security Inc. Some of these entities’ including Camex Security Services had denied being in default.

Employers are expected to make contributions on or before the 15th day of every month for the preceding month. If this is not done, more so if employers miss up to five months payment, the employee will be denied benefits. The individual would then have to make an appeal to the Tribunal for a hearing, yet receiving these benefits can still take time as it is ultimately dependent on the time period in which the employer makes these payments. This shows that if employers make late contributions, it becomes very problematic for the beneficiaries and the NIS which often times receives the blame for challenges experienced as a result.

Ally related that the Ministry is putting systems in place to do routine checks to ensure the remittances are documented as paid in NIS’system and at other agencies as well, such as health insurance companies. She met with the Labour Department to discuss how this tracking process can be expedited and be executed in the most efficient way. “We are seeking to ensure that in all respects, they comply with the law, it is not going unnoticed and it is not a question of being harsh, we are saying that this is a requirement and they must face the requirement,” Ally said.

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