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Equal treatmentEqual treatmentWagesWagesProbationProbationWorking hoursWorking hoursOvertimeOvertimeHolidayHolidayOther leaveOther leaveSick leave and medical treatmentSick leave and medical treatmentBenefitsBenefitsSocial security and tax issuesSocial security and tax issues
Article 18 of the Constitution: Article 18 of the Constitution: • Liberian citizens entitled to “equal opportunity Liberian citizens entitled to “equal opportunity
for work regardless of sex, creed, religion, for work regardless of sex, creed, religion, ethnic background, place of origin or political ethnic background, place of origin or political affiliations”affiliations”
$1000.00 fine may be imposed by $1000.00 fine may be imposed by Labor CourtLabor Court deportation if offender is aliendeportation if offender is alien
Article 18 of the Constitution: Article 18 of the Constitution: • All entitled to equal pay for equal workAll entitled to equal pay for equal work
Liberianization policyLiberianization policy• §75: “no alien employee shall be employed at a rate §75: “no alien employee shall be employed at a rate
different from that paid to Liberian citizens in similar different from that paid to Liberian citizens in similar positions who have equal competence or length of positions who have equal competence or length of service”service”
• §1507.2: “equal treatment in respect of wages and §1507.2: “equal treatment in respect of wages and conditions of employment” between “alien” and conditions of employment” between “alien” and Liberian employees “having due regard to efficiency Liberian employees “having due regard to efficiency and length of service” and length of service”
Payment of wagesPayment of wages• at least monthly at least monthly §1511.6§1511.6• in legal tender (i.e. money) in legal tender (i.e. money) §1511.2§1511.2• directly to employee or his family §1511.3directly to employee or his family §1511.3• not with alcohol not with alcohol §1511.1.(2)§1511.1.(2)• cannot oblige employee to spend wages cannot oblige employee to spend wages
No deduction allowed except as allowed No deduction allowed except as allowed by law by law §1511.7§1511.7
§701.2: “flexi-time”?§701.2: “flexi-time”?• employee who works less than 8 hours on any employee who works less than 8 hours on any
day of the week may be required to work day of the week may be required to work overtime on other days of the weekovertime on other days of the week max. 9 hours per daymax. 9 hours per day max. 48 hours per weekmax. 48 hours per week no overtime pay specifiedno overtime pay specified
§704: §704: Daily restDaily rest• employees working 5+ hours a dayemployees working 5+ hours a day
30 mins. break included in 8 hours30 mins. break included in 8 hours periods exceeding 30 mins. not included in 8 hoursperiods exceeding 30 mins. not included in 8 hours
§801: Weekly rest§801: Weekly rest• all employeesall employees
weekly rest period of no less than 24 hours per weekweekly rest period of no less than 24 hours per week
§705, 804: Notices at work§705, 804: Notices at work• employer should post:employer should post:
““notice showing hours at which work begins and ends and daily rest notice showing hours at which work begins and ends and daily rest periods” and periods” and
““weekly rest program or schedule”weekly rest program or schedule”
§703: §703: Overtime payOvertime pay• overtime “shall be paid at a rate not less than overtime “shall be paid at a rate not less than
fifty percent above the normal rate” fifty percent above the normal rate” ExampleExample
regular wage for first 8 = $1.00 per hourregular wage for first 8 = $1.00 per hourovertime pay = $1.50 per hour or aboveovertime pay = $1.50 per hour or above
§706: Overtime records§706: Overtime records• Employer “shall keep an accurate record of” Employer “shall keep an accurate record of”
§701: Exceptional circumstances §701: Exceptional circumstances • ““Preparatory or compulsory work”- §701.4 Preparatory or compulsory work”- §701.4
max. 56 hours per weekmax. 56 hours per week
• ““work performed at irregular intervals” - §701.3(a)work performed at irregular intervals” - §701.3(a)• ““work in which attendance at place of employment is work in which attendance at place of employment is
chief requisite” - §701.3 (b)chief requisite” - §701.3 (b) max. 12 hours per day / 72 hours per weekmax. 12 hours per day / 72 hours per week
• ““industry of seasonal nature” - §701.5industry of seasonal nature” - §701.5 max. 56 hours per weekmax. 56 hours per week max. average 48 hours per week calendar yearmax. average 48 hours per week calendar year
►►in all cases:in all cases:• overtime payable overtime payable
Authorised overtimeAuthorised overtime §702.1: Exemptions to 8 hour work day§702.1: Exemptions to 8 hour work day
• actual or imminent disaster or accident actual or imminent disaster or accident • urgent repairs to “plant, equipment, machinery or other property”urgent repairs to “plant, equipment, machinery or other property”• prevent damage to perishable goodsprevent damage to perishable goods
no max. specifiedno max. specified
• ““work of vital public importance” work of vital public importance” needs prior authorization from MOLneeds prior authorization from MOL no max. specifiedno max. specified
• ““exceptional pressure of work”exceptional pressure of work” max daily extra 2 hoursmax daily extra 2 hours max. 200 hours in calendar year (i.e. max. 100 days of overtime)max. 200 hours in calendar year (i.e. max. 100 days of overtime)
►►in all cases:in all cases: overtime probably payable overtime probably payable must notify MOL as soon as possiblemust notify MOL as soon as possible
§802: §802: Right to be paid on public holidaysRight to be paid on public holidays§802: §802: Right to rest on public holidaysRight to rest on public holidays
• work on public holidays authorised if:work on public holidays authorised if: technical/economic reasonstechnical/economic reasons nature of work means it “is carried on continuously”nature of work means it “is carried on continuously” necessary for “normal operation”necessary for “normal operation” supplying public needssupplying public needs or authorised “exemptions” under or authorised “exemptions” under §702.1§702.1
• overtime payable for all hours worked - overtime payable for all hours worked - §803§803
§901: right to paid annual leave§901: right to paid annual leave• first year of employment: 0 weeksfirst year of employment: 0 weeks• second year of employment: 0 weekssecond year of employment: 0 weeks• third year of employment: 2 weeksthird year of employment: 2 weeks• fourth year of employment: 3 weeksfourth year of employment: 3 weeks• fifth year of employment onwards: 4 weeksfifth year of employment onwards: 4 weeks
§51: employees must be allowed leave to vote§51: employees must be allowed leave to vote• no deduction from salary allowedno deduction from salary allowed
right of employer to make deduction from salary under §5.2 right of employer to make deduction from salary under §5.2 of Elections Law – now repealed of Elections Law – now repealed
H. Sick Leave & Medical TreatmentH. Sick Leave & Medical Treatment
Not provided by lawNot provided by law• Supreme Court decisionSupreme Court decision
12 sick days allowed per year12 sick days allowed per year
Medical treatmentMedical treatment• employer must provide medical treatment for employer must provide medical treatment for
accidents at work - accidents at work - §3556§3556
Incapacity following occupational injury/disease Incapacity following occupational injury/disease suffered at worksuffered at work• compensation payable under §§3500-3667compensation payable under §§3500-3667
J. Tax and Social SecurityJ. Tax and Social Security
Employers under obligation to deduct tax at Employers under obligation to deduct tax at source from employee’s salaries and pay to source from employee’s salaries and pay to Ministry of Finance monthly - Ministry of Finance monthly - §905, §905, Tax CodeTax Code• tax rates in table set out at tax rates in table set out at §§200, Tax Code200, Tax Code
Employers under obligation to deduct 3% social Employers under obligation to deduct 3% social security contribution at source from employee’s security contribution at source from employee’s salaries and pay to NASSCORPsalaries and pay to NASSCORP
Employers under obligation to pay 4.75% social Employers under obligation to pay 4.75% social security contribution (in addition to 3% security contribution (in addition to 3% employee’s contribution) to NASSCORPemployee’s contribution) to NASSCORP
Liberian workers to be preferredLiberian workers to be preferred• §75: all employers must hire Liberian workers§75: all employers must hire Liberian workers
except agricultural and unskilled laborersexcept agricultural and unskilled laborers
• §75: unlawful to hire alien employee §75: unlawful to hire alien employee exceptexcept “administrative, supervisory, or technical “administrative, supervisory, or technical
positions”positions” oror
unlessunless first consulted “lists of qualified Liberian” kept first consulted “lists of qualified Liberian” kept by MOL by MOL
» AND AND no qualified Liberian available (list exhausted) no qualified Liberian available (list exhausted)
» OROR no qualified Liberian from the list is “capable of performing no qualified Liberian from the list is “capable of performing
§1504.1: e§1504.1: employer must pay for repatriation of foreign mployer must pay for repatriation of foreign employee when:employee when:• expiry of period of serviceexpiry of period of service• on termination of contracton termination of contract
due to employer’s inability to fulfill contractdue to employer’s inability to fulfill contract due to employee’s sickness or injurydue to employee’s sickness or injury following notice of terminationfollowing notice of termination
except if court orders otherwiseexcept if court orders otherwise
§1504.3: §1504.3: expenses include travel and subsistence: expenses include travel and subsistence: from date of termination of contract until date of repatriationfrom date of termination of contract until date of repatriation
except for delay due to employee - except for delay due to employee - §1504.4§1504.4
§1504.2: §1504.2: includes family if brought by employerincludes family if brought by employer
Issued by BIN Issued by BIN • can apply after 90 days of residencecan apply after 90 days of residence
Leaflet available from BIN explains Leaflet available from BIN explains proceduresprocedures
Visa applications should technically be Visa applications should technically be accompanied by permit from MOL stating accompanied by permit from MOL stating no qualified Liberian for such employment. no qualified Liberian for such employment. • §1507-A. Liberian to have employment §1507-A. Liberian to have employment
preference (preference (butbut see also §75 see also §75).).
Possible measuresPossible measures• Warning letterWarning letter – appropriate for all first-time minor – appropriate for all first-time minor
offenses and some serious offensesoffenses and some serious offenses• Suspension without paySuspension without pay – for repeated minor – for repeated minor
offenses and some serious offensesoffenses and some serious offenses• DemotionDemotion – for unsatisfactory performance or serious – for unsatisfactory performance or serious
offensesoffenses• TerminationTermination – for major offenses that amount to a – for major offenses that amount to a
“gross breach of duty” or “ serious breach of duty” “gross breach of duty” or “ serious breach of duty” depending on the contract depending on the contract gross breach of duty: §1508 (2) for fixed-term contractsgross breach of duty: §1508 (2) for fixed-term contracts serious breach of duty: §1508 (5) for indefinite contractsserious breach of duty: §1508 (5) for indefinite contracts
Minor offenses:Minor offenses:• late arrival at worklate arrival at work• early departure from workearly departure from work• unauthorized absence (less than one day)unauthorized absence (less than one day)• minor insubordination minor insubordination
first-time offense: warning letterfirst-time offense: warning letter repeated offense: suspension (or demotion if in repeated offense: suspension (or demotion if in
• contract should specify other “gross breaches of duty”contract should specify other “gross breaches of duty” insubordinationinsubordination harassment of other staffharassment of other staff unauthorized use of NGO propertyunauthorized use of NGO property failure to perform (needs clear job description and regular failure to perform (needs clear job description and regular
appraisals)appraisals) drunkennessdrunkenness theft, assault and other criminal behaviortheft, assault and other criminal behavior other serious misconduct (sleeping on duty etc.)other serious misconduct (sleeping on duty etc.)
§71: unlawful to dismiss group for act of §71: unlawful to dismiss group for act of individualindividual• group may be dismissed for action by whole group may be dismissed for action by whole
groupgroup group may NOT be dismissed for act “which group may NOT be dismissed for act “which
cannot be attributed to a definite individual”cannot be attributed to a definite individual”
Fines not allowed!Fines not allowed!• §1511.8 (a): no employer may “impose a fine §1511.8 (a): no employer may “impose a fine
upon an employee for any cause whatsoever”upon an employee for any cause whatsoever”
Termination without causeTermination without cause
Fixed-term contract:Fixed-term contract:►►Termination without causeTermination without cause• obligation to pay remaining obligation to pay remaining
time under contracttime under contract
§1508.1§1508.1
Indefinite term contract:Indefinite term contract:►►Termination without causeTermination without cause• one month’s notice (or one one month’s notice (or one
month’s pay in lieu of month’s pay in lieu of notice)notice)
plusplus • obligation to pay “one and obligation to pay “one and
a half month salary for a half month salary for each completed year of each completed year of service”service”
No termination without cause No termination without cause after 10 years of employmentafter 10 years of employment
§1508.3§1508.3
redundancy benefits payable – plus unpaid salaryredundancy benefits payable – plus unpaid salary
RedundancyRedundancy Regulation No 5Regulation No 5
• employee has right to “severance / redundancy payment”employee has right to “severance / redundancy payment” what is redundancy?what is redundancy?
““when the employer is compelled by economic conditions or other reasons … to when the employer is compelled by economic conditions or other reasons … to discontinue a given business or part of it which results in loss of employment”discontinue a given business or part of it which results in loss of employment”
““four weeks’ remuneration for each completed year” of employmentfour weeks’ remuneration for each completed year” of employment
• employee has right to “severance payment”employee has right to “severance payment” what is severance?what is severance?
““employment is severed or terminated on account of bankruptcy, dissolution, employment is severed or terminated on account of bankruptcy, dissolution, closure, or cessation of operations” closure, or cessation of operations”
““four weeks’ remuneration for each completed year” of employmentfour weeks’ remuneration for each completed year” of employment
• In both casesIn both cases employee must be given one month’s noticeemployee must be given one month’s notice employer must notify MoLemployer must notify MoL
• temporary redundancytemporary redundancy employer may be temporarily made redundant employer may be temporarily made redundant temporary redundancy may last up to 3 monthstemporary redundancy may last up to 3 months pay at 50% of salarypay at 50% of salary
Best practice:Best practice:• contract should specify other gross breaches contract should specify other gross breaches
of duty:of duty: insubordinationinsubordination harassment of other staffharassment of other staff unauthorized use of NGO propertyunauthorized use of NGO property failure to perform (needs clear job description and failure to perform (needs clear job description and
regular appraisals)regular appraisals) drunkennessdrunkenness theft, assault and other criminal behaviortheft, assault and other criminal behavior other serious misconduct (sleeping on duty etc.)other serious misconduct (sleeping on duty etc.)
Consider providing opportunity for Consider providing opportunity for employee to resignemployee to resign• No obligation to pay redundancy payNo obligation to pay redundancy pay• No notice period for resignation under lawNo notice period for resignation under law
any notice period specified in contract may be any notice period specified in contract may be waived by consent of the employer and employeewaived by consent of the employer and employee
Record Record allall disciplinary measures taken disciplinary measures taken• make file note of any verbal warningsmake file note of any verbal warnings
All documents served on employee should All documents served on employee should be acknowledged in writingbe acknowledged in writing
Refusal to sign acknowledgement formRefusal to sign acknowledgement form• supervisor to indicated this on formsupervisor to indicated this on form• two employees should be called to witness two employees should be called to witness
refusal by employee to sign formrefusal by employee to sign form
Contracts in general Contracts in general Minimum conditionsMinimum conditionsTerm and durationTerm and durationSuggested provisionsSuggested provisions
§ 1500: § 1500: Contract of employmentContract of employment• ““any agreement between employer and employee containing the any agreement between employer and employee containing the
conditions and terms of employment”conditions and terms of employment” no definition of employer !no definition of employer ! no definition of employee !no definition of employee !
• categories of contractscategories of contracts►►oral oral
contracts of less than 6 months deemed oralcontracts of less than 6 months deemed oral contracts of indefinite duration deemed oral contracts of indefinite duration deemed oral
►►writtenwritten
►►individualindividual►►collectivecollective
►►definite (fixed-term)definite (fixed-term)►►indefinite periodindefinite period
Fixed-term:Fixed-term:• Maximum term: 2 years - Maximum term: 2 years - §1505.1§1505.1• Max. term of renewal: 18 months - Max. term of renewal: 18 months - §1505.2§1505.2
• contract expires on end datecontract expires on end date no need to send notice of expiry of contractno need to send notice of expiry of contract no right to redundancyno right to redundancy no notice periodno notice period
contract terms can be more generouscontract terms can be more generous
new contract needs agreement of employer and employeenew contract needs agreement of employer and employee no right to be re-hiredno right to be re-hired
Indefinite term contractIndefinite term contract• No termNo term• can be ended without cause by giving noticecan be ended without cause by giving notice
WARNINGWARNING: §1508.3 has been amended:: §1508.3 has been amended:
compensation = 1.5 months pay for each year of servicecompensation = 1.5 months pay for each year of service
no termination without cause for employees with 10 no termination without cause for employees with 10 years completed with same employeryears completed with same employer
• name of employername of employer• name of employee, his originname of employee, his origin• place of employmentplace of employment• place of engagementplace of engagement• nature of employmentnature of employment• notice period(s)notice period(s)• wageswages• benefits (if any)benefits (if any)• repatriation (if alien worker or employment outside repatriation (if alien worker or employment outside
Liberia) (Liberia) (see also slide 24see also slide 24))• other special conditionsother special conditions
Contracts should also specifyContracts should also specify• job descriptionjob description• working hoursworking hours• overtime ratesovertime rates• holidayholiday• right to take disciplinary measuresright to take disciplinary measures• list of “gross breaches of duty” (list of “gross breaches of duty” (see slide 37see slide 37))• right to deduct social security and taxesright to deduct social security and taxes
§1503.2: compulsory attestation by MOL§1503.2: compulsory attestation by MOL• MOL has accepted to attest standard form MOL has accepted to attest standard form
contracts contracts plusplus list of all employees, positions list of all employees, positions and date of hireand date of hire
• no fees payableno fees payable• attestation not legally binding on courtsattestation not legally binding on courts
§1505.4: renewed contracts§1505.4: renewed contracts• renewed fixed-term contract may be renewed fixed-term contract may be
exempted from attestation at MoL’s discretionexempted from attestation at MoL’s discretion
6. Labour dispute procedures6. Labour dispute procedures
Industrial actionIndustrial action
Outline of dispute hearing process before Outline of dispute hearing process before Ministry of Labour and appeal process Ministry of Labour and appeal process before Labour Courtbefore Labour Court