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Protection of Wages Convention, 1949 (No. 95) - Bahamas (RATIFICATION: 1976)

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Article 10 of the Convention. Attachment of wages. The Committee notes that section 34 of the Matrimonial Causes Act provides for the possible attachment of a person’s income to ensure the payment of a financial provision order made by the Supreme Court in the framework of certain matrimonial proceedings (such as divorce or judicial separation). It notes that this Act does not establish the limit within which the attachment of wages may be ordered in application of section 34. Recalling that Article 10(1) provides that wages may be attached only within limits prescribed by national laws or regulations, the Committee requests the Government to indicate how effect is given to this provision of the Convention.
Articles 11 and 12(2). Privileged protection of wage claims in bankruptcy proceedings and final settlement of wages due. The Committee takes notes of section 30 of the Bankruptcy Act and section 237 of the Companies Act which provide for privileged protection of wage claims in bankruptcy and winding up proceedings, respectively. It also notes that section 27B of the Employment Act provides that payment of redundancy pay shall be made on or before the date of the employee’s redundancy. Finally, it takes note of the Government’s previous indication that where there are issues with the final settlement of wages upon the termination of the employment contract, an affected employee can pursue payment of the amounts owed either via quick and inexpensive mechanisms such as a conciliation hearing facilitated by government officials, or by seeking resolution before the Industrial Tribunal or in the Supreme Court.
Articles 14 and 15. Effective protection of wages of domestic workers and supervision of compliance. The Committee notes that sections 61 and 73 of the Employment Act, which provide respectively that employers shall keep registers of wage payments for a period of three years and that they shall give a pay statement to the employee at the time of each payment, do not apply to domestic workers. It therefore requests the Government to indicate how the regular payment of the wages of domestic workers is monitored and how compliance with other forms of protection of their wages (in particular concerning possible deductions) is supervised in practice.

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Article 10 of the Convention. Attachment of wages. In the absence of the Government’s reply on this point, the Committee requests the Government to indicate any measures taken or envisaged to establish the conditions under which and the limits within which wages may be seized following a court order for the repayment of outstanding debts.
Article 11. Privileged protection of wage claims in bankruptcy proceedings. The Committee understands that the Government has announced its intention to adopt new legislation in order to improve the protection of workers’ service-related claims, including redundancy pay, in the case of the employer’s bankruptcy following concerns arising from recent situations whereby foreign companies ceased their activities without paying hundreds of workers what was due to them in severance pay. The Committee requests the Government to keep the Office informed of any progress made in this regard and to transmit the text of any amendments to the bankruptcy legislation once they have been adopted. In this connection, the Committee wishes to refer to the Protection of Workers’ Claims (Employer’s Insolvency) Convention, 1992 (No. 173), which offers modern responses to current challenges of corporate insolvency, in that it strengthens the traditional privilege system while exploring new means of protection in the form of wage guarantee institutions. The Committee, accordingly, encourages the Government to give favourable consideration to the ratification of Convention No. 173 and to keep the Office informed of any decision taken in this regard.
Article 12(2). Final settlement of wages due. The Committee notes that, apart from section 28(1) of the Employment Act, which provides that payment of redundancy pay must be made before or on the date of the employee’s redundancy, there is no provision addressing the question of the prompt settlement of all wages due upon the termination of the employment contract. However, the Committee understands that, following a series of incidents where businesses have closed leaving behind considerable amounts of wage debts, the Government is considering measures to prevent similar situations in the future. The Committee accordingly requests the Government to indicate any measures taken to ensure that workers may recover swiftly all sums due to them upon the termination of their employment contract, as required under this Article of the Convention.

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The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:
Repetition
Article 2 of the Convention. Scope of application. While noting that section 60(1) of the Employment Act provides that wages must be made payable “in any contract of service hereafter to be made for the employment of any employee for the performance of any work within the Bahamas”, and that according to section 3(1), the Employment Act applies to all employees, including the civil servants and employees of local government authorities, with the exception of members of police forces and other “disciplined forces”, the Committee notes that in the terms of section 3(2), the Minister of Labour and Immigration may, by order after consultation with employers’ and workers’ organizations, decide to exclude a specific category of workers from the application of some or all provisions of the Act. It therefore requests the Government to specify whether any such ministerial orders have so far been issued and, if so, whether any workers have been exempted from the coverage of the provisions of Part XI of the Act on wages.
Article 10. Attachment or assignment of wages. The Employment Act does not appear to regulate the attachment or the assignment of wages. The Committee would therefore be grateful if the Government could indicate the provisions giving effect to this Article of the Convention.
Article 12(2). Final settlement of wages. The Employment Act does not appear to contain any specific provision regarding the final settlement of wages upon the termination of an employment contract. The Government is accordingly requested to provide additional clarification in this regard.
Part V of the report form. Application in practice. The Committee would be thankful if the Government could supply relevant information which would permit a general evaluation of the manner in which the Convention is applied including, for instance, copies of collective agreements containing clauses on pay conditions, extracts from inspection reports on matters related to the payment of wages, any difficulties concerning the regular and timely payment of wages in the private or public sector, etc.

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The Committee notes the Government’s report. It also notes the enactment of the Employment Act, 2001, and of the Minimum Wages Act, 2002.

Article 2 of the Convention. While noting that section 60(1) of the Employment Act provides that wages must be made payable “in any contract of service hereafter to be made for the employment of any employee for the performance of any work within the Bahamas”, and that according to section 3(1), the Employment Act applies to all employees, including the civil servants and employees of local government authorities, with the exception of members of police forces and other “disciplined forces”, the Committee notes that in the terms of section 3(2), the Minister of Labour and Immigration may, by order after consultation with employers’ and workers’ organizations, decide to exclude a specific category of workers from the application of some or all provisions of the Act. It therefore requests the Government to specify whether any such ministerial orders have so far been issued and, if so, whether any workers have been exempted from the coverage of the provisions of Part XI of the Act on wages.

Article 10. The Employment Act does not appear to regulate the attachment or the assignment of wages. The Committee would therefore be grateful if the Government could indicate the provisions giving effect to this Article of the Convention.

Article 12, paragraph 2. The Employment Act does not appear to contain any specific provision regarding the final settlement of wages upon the termination of an employment contract. The Government is accordingly requested to provide additional clarification in this regard.

Part V of the report form. The Committee would be thankful if the Government could supply relevant information which would permit a general evaluation of the manner in which the Convention is applied including, for instance, copies of collective agreements containing clauses on pay conditions, extracts from inspection reports on matters related to the payment of wages, any difficulties concerning the regular and timely payment of wages in the private or public sector, etc.

Finally, the Committee notes the Government’s statement that the expertise required to correctly meet its reporting obligations under the ILO Constitution is currently lacking in the country. The Committee advises that the Office remains ready to offer expert advice and respond favourably to any specific request for technical assistance in this regard.

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The Committee notes the information contained in the Government’s report and the attached copy of the 1995 Agreement between the Bahamas Hotel Employers’ Association and the Bahamas Hotel Catering and Allied Workers Union as well as the statistical data concerning the wage rates applied in the hotel sector for the period 1993-97.

Article 2 of the Convention. The Committee notes that the Government is in the process of adopting new legislation on employment protection to replace the Fair Labour Standards Act, 1970. It further notes that, under the Employment Protection Bill, 2000, the Government intends to exclude from the application of the Convention domestic employees, manual labourers and employees in small resorts with less than 15 rooms, while under the Minimum Wage Bill the Government considers introducing additional exclusions concerning gas station attendants and employees at small resorts in the Family Islands with less than 15 rooms and less than ten rooms in New Providence. The Committee is bound to recall in this connection Article 2, paragraph 3, of the Convention according to which each Member is expected to indicate in its first annual report on the application of the Convention any categories of persons which it proposes to exclude from the application of all or any of the provisions of the Convention, and that after the date of its first annual report, no Member may make exclusions except in respect of categories of persons so indicated. Considering that the Government in all its previous reports has consistently stated that no categories of workers are excluded from the provisions of the Convention, the Committee asks the Government to take steps to amend the draft legislation in the light of its obligations under the relevant provisions of the Convention, and further ventures to draw the Government’s attention to the possibility of having recourse to the technical cooperation of the International Labour Office in this respect. The Committee also requests the Government to transmit the texts of the Employment Protection Act and the Minimum Wage Act as soon as they are formally adopted.

Articles 8 and 10. The Committee notes the Government’s indication that the Employment Protection Bill, now under consideration, is expected to regulate the attachment or assignment of wages and fix the overall limit of authorized assignment at 45 per cent of the employee’s wage or salary, except in the case of the reimbursement of a housing mortgage where assignment may exceed the prescribed limit. In addition, the draft legislation provides that the worker must sign an authorization for such deductions to be made, except for national levies such as National Insurance Board contributions which may be deducted automatically once approved by the Parliament. The Committee asks the Government to communicate the text of the relevant provisions of the new legislation as soon as it is adopted.

Part V of the report form. While noting the information supplied by the Government in its report, the Committee requests the Government to continue to provide all available information on the manner in which the Convention is applied in practice, particularly on the results of inspection visits showing the number and nature of the infringements reported and sanctions imposed.

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