Wavell Hinds, Opposition Spokesman on Labour, has voiced concerns about discussions on removing redundancy payment protections from Jamaica’s labour laws. He emphasised the critical role redundancy payments play in providing financial security for workers in the absence of a mandatory pension system.
“These payments offer relief and stability for workers as they navigate the uncertain period between jobs. They also acknowledge the years of service employees dedicate to their organisations, and provide a vital safeguard against arbitrary dismissals,” Hinds said.
Redundancy payments, which are calculated based on the duration of an employee’s service, serve as one of the few protections available to Jamaican workers in a labour market with limited safety nets.
“It also acts as a deterrent to companies that might otherwise resort to redundancy as a means to summarily terminate employees,” Hinds explained. “Removing these protections would erode workers' rights and leave them more vulnerable to exploitation.”
Hinds urged policymakers to consider alternatives that balance the needs of both employers and employees.
“If redundancy payments are to be removed, they must be replaced with a robust unemployment insurance system. This would ensure that workers are protected financially while giving employers greater flexibility in managing their workforce,” he suggested.
An unemployment insurance system, funded through contributions made during the salary payment cycle, would be expected to create a sustainable safety net for workers and offer employers the flexibility to right-size their workforces without undermining employee security.
Hinds cited the People's National Party's (PNP) commitment to defending workers' rights, and called for constructive dialogue among all stakeholders.
“The dignity and security of our workers must be central to any legislative decisions. We stand ready to collaborate with unions, employers and policymakers to ensure that our labour laws remain fair and reflective of the needs of the Jamaican people,” he concluded.
