According to the International Labour Organization (ILO), workers and businesses are facing catastrophe, in both developed and developing economies, as a result of the continuous spread of the coronavirus. The outbreak is expected to wipe out 6.7 percent of working hours across the world during the second quarter of 2020. That is the equivalent of 195 million full-time workers losing their jobs. As it relates to Jamaica, the pandemic has destabilised many organisations within the private and public sectors, resulting in a significant decline in productivity and profit margins.
A major concern for many employers affected by the pandemic are the options available to resolve the work/employment challenges experienced during this period. To address these issues, employers must rely on existing labour legislations or formulate strategies to regulate their workforce. Below are a few recommendations that I believe are viable responses that can be utilised by management to adjust their employment practices and operational procedures.
FLEXIBLE WORK ARRANGEMENTS (FWA)
Among the primary strategies that can be utilised by employers is the implementation of an FWA policy. The implementation of an FWA policy must be guided by the stipulations of The Employment (Flexible Work Arrangements) (Miscellaneous) Provisions Act. Such procedures will eliminate the restrictions associated with the traditional eight-hour workday by providing the employer with greater latitude in scheduling work. While there are several FWAs identified by the act, not all of those mentioned will be effective during this period. It is most prudent if the employers implement one or a combination of the following FWAs:
Telecommuting or flexi-place – this provides for the worker to work from a site other than the central worksite.
Compressed workweek – The employee can negotiate with the employer to undertake the traditional 40-hour workweek over a shorter span of days.
Flexitime – the worker can negotiate the time of commencement and end of work, having regard to a ‘core time’ when all workers must be at work.
These options are particularly effective, given the restrictions to movement caused by curfews, or the quarantine of certain areas. Importantly, telecommuting can assist in upholding social-distancing protocols that are recommended to reduce the spread of the COVID-19. The employer must determine the type of flexible arrangement that is best suited for the organisation.
LAYOFFS
Another option that may be useful during this period is the laying off of workers. This approach can be adopted by companies that are mainly facing financial constraints thereby hindering their ability to compensate workers. The procedures for laying off workers is stipulated in the Employment Termination and Redundancy Payments Act (ETRPA) of 1974. Employers must provide evidence to substantiate the laying off of workers to ensure that it is justifiable. Section 5A of the ETRPA which stipulates that:
An employee who has been laid off without pay for a period of 120 days may in writing to the employer request the position be made redundant. The notice should not be made sooner than 14 days nor later than six months after the expiration of the 120 days.
During this period employers may offer the employee ‘piecemeal’ work, depending on the company’s financial position.
Companies can also develop what I term a ‘disaster and pandemic provisional policy’ that can be used during a national crisis (caused specifically by natural disasters or virus outbreaks). It is likely that we may experience similar events to COVID-19 in the near future. As such, it is imperative that organisations develop a special provisional policy outlining how employment procedures will be regulated during such periods. This policy may contain procedures related to the rostering of workers, compensation, communication and safety standards. It would help to maintain stability within the company during such periods, and clarify the employment relationship temporarily based on the situation at hand.
Redundancy was not mentioned above because COVID-19 temporarily affects the employment relationship and does not necessarily require employers to eliminate positions on the company’s structure permanently. This approach may also prove costly to employers, depending on the years of service for workers in positions that will be included in the redundancy exercise. Before implementing any of the recommendations above, employers should consult an industrial relations consultant or the Ministry of Labour and Social Security to ensure that they uphold the core stipulations of the relevant legislations.
Lauren Marsh is a PhD Candidate (UWI), Research Fellow (HSLSI, UWIOC), and an industrial relations consultant. For more information or support send an email to lauren.marsh@dec.uwi.edu