New regulations and measures for a gradual restart of business activities

He indicated that these regulations will provide for employers to devise and update their policies on safety and health. They will also provide for suitable and sufficient risk assessment to identify the risks of infection and implement appropriate preventive and protective measures, he said. Furthermore, training and placement programmes for the youth, workers and women will be reinforced.

Mr Callichurn also dwelt on the importance of offering training which is most compatible with employability adding that the Mauritius Institute of Training and Development (MITD) and the Human Resource Development Council (HRDC) are key institutions that will encompass this philosophy. He stated that both institutions will be revamped, including improving their structure and training programmes. The National Apprenticeship Programme will also be revisited to cater for unemployed youth and redundant workers, he said.

Speaking about the “Plan de Relance” following COVID-19, the Labour Minister highlighted that a Support to Company Scheme has been set up through different organisations. The financial assistance provided to companies, he added, is aimed at sustaining operation expenses including wages.

He stated that Government has come up with the above schemes rather than opting for technical unemployment or reduction of wages which would have rendered employment more precarious. To harness this measure, the Workers’ Rights Act will be amended to make it a prerequisite for employers to avail themselves of these financial assistance schemes before lay-off of workers, he pointed out.

Thus no employer shall have the right to give notice of intended reduction of workforce to the Redundancy Board unless an application has been made for financial assistance and the application has been turned down. Subsequently, any termination of employment shall be deemed to be unjustified where and when this procedure has not been followed.

Policy responses to curb effect of Covid-19 on the economy and labour market

As regards those companies which will not be able to sustain the shock and will have to close down, Mr Callichurn underlined that where termination of employment is justified, a worker will be entitled to 30 days’ wages in lieu of notice and will also benefit from the payment of an End of Year Bonus computed on the basis of the number of months he has been working during the year.

He will also be refunded the remaining balance of his annual leave. In addition to the above, the employer would have to fulfill his obligations under the Portable Retirement Gratuity Fund, that is, he/she will be under the obligation to pay gratuity on retirement of 15 days per year of service to the laid-off worker or contribute same in the latter’s individual account held by the Mauritius Revenue Authority.

Furthermore, the Workers’ Rights Act is also being amended to entitle laid-off workers reckoning more than 180 days (6 months) to benefit a Transitional unemployment assistance of 90% of the basic wage up to the NPF ceiling for a period of 6 months instead of 3 months, as it is the case presently, and 60% for the next 6 months instead of 30% for the last 6 months.

Support to sectors which create productive employment

Budget 2020-2021 outlines that in line with the International Labour Organization’s advocacy to support sectors that are able to create decent and productive employment, Government has imposed a minimum shelf space of 10 % for locally manufactured goods in supermarkets. Furthermore, ministries and Government bodies will be required to have a minimum domestic content of 30% in their purchases, which will help boost entrepreneurship and job creation.

Minister Callichurn emphasised the need to have a competent local workforce that will enable the country to depend less on foreign labour. To this end, he said, the MITD will be called upon to mount specific training courses to bridge the skills mismatch in the labour market.

Other measures include:

        ·    Preparation of an updated National Occupational Safety and Health Profile under the Decent Work Country Programme to identify existing and emerging challenges in occupational safety and health.

·         Extension of the Workforce Programme in the form of a skills development component to be supported jointly by the HRDC and the MITD to re-skill and to improve the employability of intended beneficiaries.

·         Under the ‘Portable Retirement Gratuity Fund’, employers will be obliged to pay 15 days’ remuneration per year of service as gratuity on retirement and contribution equivalent to the mentioned formula in case of termination of employment.