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NATIONAL REMUNERATION BOARD
REVIEW OF THE CATERING AND TOURISM INDUSTRIES [REMUNERATION ORDER] REGULATIONS
PROPOSED RECOMMENDATIONS
1. INTRODUCTION
1.1 On 12 October 2010 the Honourable Minister of Labour, Industrial Relations and
Employment, acting under Section 91 of the Employment Relations Act [ERA], referred
to the National Remuneration Board the Catering and Tourism Industries [Remuneration
Order] Regulations for review. The Remuneration Order was last revised in 2004.
1.2 In connection with the present revision exercise, the Board invited interested parties to
submit written representations through notices which were published in the
Government Gazette on 21 May 2011 and three dailies namely Le Defi-Quotidien on 19
May 2011, Le Matinal on 20 May 2011 and Le Mauricien on 21 May 2011. Eight written
representations were received from the following parties: Federation des Travailleurs
Unis (FTU), Union of Employees of Catering Industry (UECI), Hotels and Restaurants
Employees Union (HREU), Confederation des Travailleurs du Secteur Privé (CTSP) New
Mauritius Hotels Ltd, Association des Hoteliers et Restaurateurs-Ile Maurice (AHRIM),
Mauritius Employers Federation (MEF) and the Association des Hotels de Charme.
1.3 Public Hearings were held before the Board where both employer and employee
representatives were summoned to depone viva voce to elaborate and support their
written representations and Mr Ramano of counsel appeared for (UECI) and (HREU). In
the course of the Public Hearings, both the employer and employee representatives
moved the Board to appoint a subcommittee to (i) effectively address concerns of the
stakeholders with regards to the normal working hours per week and (ii) examine the
re-alignment of occupations, job titles and job descriptions of employees working in the
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Catering and Tourism sector. The Board acceded to the motion made by the
representatives of employers and employees and pursuant to paragraph 17 of part IV of
the second schedule to the Employment Relations Act 2008, set up a subcommittee
constituting four Board members, where one Board member was appointed as
Chairperson. The subcommittee conducted its own investigations and held a series of
meetings with both employer and employee representatives and submitted its report to
the Board.
1.4 The Board also undertook a fact gathering exercise and conducted a thorough
investigation in the catering and tourism sector both in Mauritius and in Rodrigues. The
technical team of the Board conducted a survey on a sample of 49 establishments in
Mauritius and 8 establishments in Rodrigues. The sampled enterprises covered different
fields of activities within the tourism and catering industry including cafes, fast food
outlets, hotels, restaurants, nature and leisure parks, table d’hôtes, in-flight catering
and tourist residence amongst others. The survey was conducted by way of survey
questionnaires which were designed for both employers and employees and officers of
the Board also carried out site visits where they interviewed a number of employers and
employees in relation to the prevailing wage and terms and conditions of employment
in the sector.
2. AN OVERVIEW OF THE CATERING AND TOURISM SECTOR
2.1 Facts and figures
The Tourism and Catering Industry is one of the leading industries in Mauritius
representing a major share of the country’s GDP. Being highly labour intensive, the
industry acts as a motor for employment and income creation. Over the years, in
Mauritius as in Rodrigues, the Catering and Tourism industry has become a cluster
comprising of different types of entities offering services such as accommodation in
hotels, integrated resorts, villas, bungalows, catering in restaurants, canteens, victualler,
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leisure activities in botanical and zoological gardens, nature reserves, pleasure crafts,
yacht chartering, and culture in museums. The main activities carried out in this
industry has also caused a mushrooming of other multiple jobs such as handicraft
makers, taxi drivers, hawkers among many others.
According to Statistics Mauritius, tourist arrivals have been continuously rising over the
years from 681,648 in the year 2002 to 965,441 in 2012. Tourist arrivals from Europe,
which accounted for 58.1% of total tourist arrivals, decreased by 8.0% from 609,648 in
2011 to 560,699 in 2012. In the same year, tourist arrivals from Africa, with a share of
around 28% of total tourist arrivals, expanded by 14.7% to 265,215. Tourist arrivals
from Reunion Island, the main market of the region, increased by 23.2% to 139,169 and
those from Republic of South Africa, by 3.3% to 89,058. The following changes were
registered from the other African countries: Kenya (+41.3%), Malagasy Republic
(+18.5%), Comoros (+11.0%), Zimbabwe (+4.9%) and Seychelles (-20.1%).
Tourist arrivals from the Asian market, which represented 10.8% of total tourist arrivals,
went up by 14.6% from 91,057 in 2011 to 104,336 in 2012. Arrivals from India, the
major source on this continent, increased by 2.3% to 55,197 and those from People’s
Republic of China, the other emerging market of this region increased 38.0% to 20,885.
The other Asian countries registered the following changes: Hong Kong (+114.0%),
United Arab Emirates (+42.9%), Japan (+6.2%), Malaysia (-1.1%) and Singapore
(-15.6%). From data gathered from Statistics Mauritius for the period 2002 to 2012,
following the global economic crisis in 2009, tourist arrivals by country of residence
illustrated a definite pick up in 2010 except for Italy, UK, USA and Seychelles.
Moreover, the survey conducted by the Board revealed that from year 2009 to 2011, the
room occupancy rate in hotels has, on average, increased from 59% to 63%. However,
during peak season, the occupancy rate increased from 58% in 2009 to 69% in 2011. In
off-peak season though, the room occupancy rate stagnated between 48% and 49% for
the period under reference. According to Statistics Mauritius, the average room
occupancy rate in 2011 and 2012 was 65%. The room occupancy rate, which is the ratio
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of room nights rented to the total number of room nights available, decreased throughout
from 78 to 62 from 2007 to 2009 and picked up and stagnated at 65 to 66 from 2010
onwards. The length of stay of tourists is decreasing however, according to the Bank of
Mauritius, receipts from the tourism sector is expected to increase in the near future.
Information received from Statistics Mauritius also reveals that Rodrigues Island has also
experienced major tourism development for the last three decades. Tourist arrivals which
stood at 9,146 in the year 1988 rose to 67,527 in 2012, represents a percentage increase
of 638%. Over the years, the marketing policies adopted by relevant authorities and the
creation of many tourist attractions appear to have helped increase the number of tourist
arrivals in Rodrigues island.
It has been noted that the national airline provides special offers for short haul
destinations like Antananarivo, Perth, South Africa and Reunion Islands. As a marketing
tool to increase its visibility in the world market, extra miles are offered to regular
customers. The national airline is now proposing new services to its clients in terms of
the new terminal at the SSR International Airport, new inflight entertainment programme
and better comfort for passengers. All these measures are expected to boost passenger
traffic and tourist arrivals in the country.
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2.2 Employment in the Tourism and Catering Industry in the Republic of Mauritius
According to official statistics, for the period 2002 to 2012 employment in the catering
and tourism industry in Mauritius and Rodrigues kept on rising and this is illustrated in
table 1 below.
Table 1 Employment in Accommodation and food service
activities (000’s)
(2002 to 2012)
Year Male % Change Female % Change Large Other
than
large
Total
2002 19.1 - 7.2 - 16.9 9.4 26.3
2003 19.6 2.6 7.8 8.3 17.8 9.6 27.4
2004 20.4 4.1 8 2.6 18.6 9.8 28.4
2005 22.1 8.3 8.8 10 21.1 9.8 30.9
2006 22.3 0.9 9.3 5.7 21.4 10.2 31.6
2007 22.5 0.9 9.5 2.2 21.6 10.4 32
2008 25.1 11.6 11.4 20 24.9 11.6 36.5
2009 24.5 -2.4 11.3 -0.9 23.3 12.5 35.8
2010 25.3 3.8 13.5 19.5 24.4 14.4 38.8
2011
20121
25.5
25.9
0.8
1.6
14.1
14.4
4.4
2.2
25.1
25.2
14.5
15.1
39.6
40.3
Average 22.9 3.22 10.5 7.4 21.8 11.6 33.4
Source: Statistics Mauritius, National Accounts (indicating statistics for Mauritius and Rodrigues)
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From information available, it has been noted that employment in the tourism and
catering industry grew from 26300 in 2002 to 40300 in 2012. The workforce in the
industry is represented by 68.6% male and 31.4% female employees. The sector tends
to employ more male than female employees because of the nature of the work
performed and the industry’s requirement for uneven hours of work. It has however
been observed that during the period 2002 to 2012, female employment in the sector
increased by a higher proportion than their male counterparts. It has also been noted
that employment in the catering and tourism sector rose at an increasing rate from year
2002 to 2012 but suffered a downturn in 2009 and same due to exogenous factors such
as the international financial crisis but employment in the sector picked up a rapid
growth again in the years 2010 to 2012.
Establishments in the sector are categorized by Statistics Mauritius as large or small
where those employing 10 or more employees are considered as large establishments
and those employing less than 9 employees are considered as small. Data available from
the same source reveals that 65.3% of labour in the catering and tourism sector is
employed by large establishments and 34.7%, by small operating units. Information
gathered from official statistics also reveals that in the year 2012, workers employed in
other tourist related organizations such as botanical and zoological gardens and nature
reserves, pleasure crafts, yacht chartering, bateau de plaisance among others,
amounted to around 4000.
2.2.1 Age Distribution among employees in Hotels and Restaurants
Information obtained from Statistics Mauritius also shows that on average, employees
working in the sector are less than 30 years of age.
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Figure 1 Age distribution
Official statistics reveals that the tourism and catering sector tends to employ more
young and middle age employees than employees who are 50 years and above. It has
been noted that most front liners tend to be young while the back-of-house operators
tend to be of superior age group.
2.2.2 Weekly hours of work
Figures obtained from Statistics Mauritius regarding weekly hours of work performed
in the catering and tourism sector is shown in table 2 below.
Table 2: Weekly Working Hours
Hours of work 2007 2008 2009 2010 2011 2012 Average
less than 23 2686 3740 3355 12320 4077 14070 6708
24 to 40 7688 8661 8574 12045 7765 12663 9566
41 to 50 13155 16436 15285 9930 16305 9648 13460
51 or more 9171 8563 9786 4505 11453 3919 7900
Source: Statistics Mauritius, National Accounts
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
2007 2008 2009 2010 2011 2012
Employment by Age Group
less than 30
30 to 39
40 to 49
50 and over
Total
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It can be noted from the table above that the modal hours of work performed in the
catering and tourism industry for the period 2007 to 2012 is in the range of 41 to 50
hours per week with an average of 13460 employees working within that timeframe. It
can also be noted that for the same period, an average of 6708 employees worked less
than 23 hours per week while an average of 7900 employees worked 51 hours or more.
2.2.3 Income Distribution
According to Statistics Mauritius, for the period 2007 to 2012, male employees in the
sector earned more as compared to female employees.
Figure 2 Average incomes
It can be observed from Figure 2 above that on average, employees in the sector earned
around Rs 10,600, whereby male employees earned on average around Rs 12,400 per
month while female employees earned around Rs 7,250 per month. Female employees
in the sector tend to earn less than their male counterparts because they tend to be
more reluctant to undertake jobs at late shifts due to their family commitments.
2.3 Compensation of employees
Compensation of employees comprises of all payments of wages and salaries by
employers: payments in kind as well as in cash and contributions to social security and
to private pension fund, casualty insurance and similar schemes are also included.
Wages and salaries in cash include all payments which employees receive in respect of
0
5000
10000
15000
2007 2008 2009 2010 2011 2012
Employment by Average Income
Male
Female
Average
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their work before deducting employees’ contributions to social security schemes. They
include commissions, overtime payments, bonuses, cost of living allowance, and housing
allowances, etc. Wages and salaries in kind are goods and services provided to employees
free of charge or at a markedly reduced cost, which are clearly of direct benefit to the
employees as consumers.
Figure 3 Compensation of employees
From Figure 3 above, it can be observed that compensation to employees in the
accommodation and food service activities industry were rather stable with a steady rise
during 2007 to 2012 with the exception of 2009 where compensation fell. Available
data also indicates that value added from the sector also grew from Rs 18,669 Mn in
2007 to Rs 21,248 Mn in 2012 with an exception in 2009. While the value added per
worker in the sector, that is, the contribution per worker towards GDP were quite
unsteady with a fall from Rs 570,917 to Rs 452,569 for the year 2007 to 2009, the
situation appear to have revived in 2010 inasmuch as the value added per worker
increased to Rs 477,062 and kept on growing to reach Rs 527,246 in 2012. This can be
explained by the fact that the economy’s GDP fell in 2009 due to exogenous factors
while simultaneously the level of employment increased over the years from 32,700 in
2007 to 40,300 in 2012. Considering the percentage of compensation of employees to
0
5000
10000
15000
20000
25000
2007 2008 2009 2010 2011 2012
Compensation of employees in the accomodation and food service activities (Rs Mn)
Value added of the Accomodation and Food Service activities (Rs Mn)
Value added per worker (Rs Mn)
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value added of the sector, same were unsteady with a rise from 2007 to 2009 and a
continuous fall from 2010 to 2012 from 26.9% to 25.4%, though value added and the
level of employment kept on rising over that period. Thus, as a matter of fact, though in
absolute term compensation grew but in relative term, employees faced a fall in
earnings.
2.4 Share in Gross Domestic Product
Figure 4 Share of GDP
According to data obtained from Statistics Mauritius, the share of GDP pertaining to the
catering and tourism industry kept on rising from the year 2007 to 2012, with the
exception of the year 2009, where the share of GDP fell by 8.68% to Rs 19,672Mn as
compared to Rs 21,541Mn in 2008. This fall in the share of GDP can be explained by the
impact of the financial crisis affecting European countries which happen to be the major
market source for Mauritius. However, from the year 2009 to 2012, it has been noted
that the economy has experienced an upswing in the share of GDP derived from the
catering and tourism industry and from the appropriate marketing strategies adopted
by the relevant authorities and other stakeholders, the share of GDP of the catering and
tourism industry is expected to grow in the years to come.
0
5000
10000
15000
20000
25000
2007 2008 2009 2010 2011 2012
Value added of Catering and Tourism Industry (Rs Mn)
Value added of Catering and Tourism Industry (Rs Mn)
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3. FIELD INVESTIGATION AND OBSERVATIONS
As mentioned above, in the context of the review of the Catering and Tourism Industry
Remuneration Regulations 2004, the technical team of the National Remuneration
Board carried out a survey based on a sample of 49 establishments in Mauritius and 8
establishments in Rodrigues. The list of the sample enterprises was stratified by size,
location and the type of activity and details are provided in the table below:
Activity Size No. of units Employment No. of Interviewees
Hotel 24 3749 472
Large (>80 rooms) 9 2947 248
Small 15 802 224
Tourist Residence 5 30 15
Large 2 25 11
Small 3 5 4
Restaurant 11 176 87
Large 5 138 64
Small 6 38 23
In-Flight Catering Large 1 232 30
Tea shop 2 28 8
Large 1 20 4
Small 1 8 4
Fast Food 7 973 53
Large 4 960 46
Small 3 13 7
Museum Small 1 8 5
Sail Charter Large 1 44 8
Table D'Hote Small 1 5 4
Restaurant/ Museum/ Boutique Large 1 67 19
Private and social club Large 1 117 23
Nature and Leisure Park Large 2 146 41
Total 57 5575 765
of which
Mauritius 49 5372 690
Rodrigues 8 203 75
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It should be pointed out that during the survey the technical team of the Board effected
site visits on all the sampled enterprises and the fact gathering exercise was done by
way of survey questionnaires which were designed for both employers and employees.
As can be seen from the table above, interviews were held with some 765 employees
and 57 employers both in Mauritius and in Rodrigues. The interviews conducted by
officers of the Board gave both employers and employees an opportunity to address
their views and concerns on various issues such as normal working hours, remuneration
and other general conditions of work. The field investigation equally helped the Board
to gauge the prevailing situation in the catering and tourism industry, especially in the
light of the representations that were made before it during Public Hearings.
3.1 Trade union membership
From interviews conducted on a sample of 765 employees, only 17.9% confirmed to be
members of trade unions. The rest, it was noted, were unaware of the presence of any
trade union at their workplace.
Further, it was noted from the survey that 74.4% of employees interviewed abstained
from commenting on the issue of the possibility of collective/individual bargaining and
officers of the Board were also apprised of the fact that discussion and consultation, if
any, between staff and management revolved mainly around how to make activities and
services of the establishments more client oriented.
3.2 Working arrangements
According to the survey, 89.3% of employers and 82.7% of employees revealed that
work in the sector is performed on the basis of 6 days per week. In the surveyed
establishments 83% of employers and 41% of employees stated that the working hour
per day is 8.5. 7% of employees interviewed stated that they work 5 to 7 hours, 1%
stated that they work 9 hours and 1% of employees stated that they work in the range
of 10 to 12 hours per day whilst 50% of the employees stated that they could not
answer the question since they have no specific time frame per day as their working
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arrangements are made on the number of hours of work per week. 76.8% of the
employers in the surveyed establishments stated that work was performed in their
establishments on the basis of 48 hours per week and the remaining 23.2% stated that
employees in their establishments worked less than 48 hours per week. It was however
found during the survey that some employees still worked more than 48 hours per
week. It was further observed that 52.7% of employees interviewed did not work under
a shift system and from the result of their starting and finishing time and from other
information gathered, it appeared that in many situations, a number of employees tend
to work for much more than 48 hours. It has been noted from the survey that many
establishments in the sector tends to operate on a three shift system where the modal
time frame for the first shift is from 7.00 hrs to 16.00 hrs, for the second shift from
15.00 hrs to 24.00 hrs and for the third shift from 23.00 hrs to 8.00 hrs and a
computation of the duration of the shifts indicated that per shift, employees tend to
work on average 9 hours, inclusive of meal breaks. Further, during the survey 27% of
employees working on a shift system indicated that they are not required to work 2
consecutive night shifts, while the remaining 73% explain that they do work for 2
consecutive night shifts. Observation during survey indicates that a night shift may be
followed by a day shift, often called a double shift. Though this practice enables an
employee to gain more in terms of remuneration yet it was observed that same tends to
have dampening effects on the health and social life of fellow employees. During the
survey many employees raised their concern of having to work long hours on a tedious
shift system and they stated that they would prefer a shift system with adequate days
for rest and recuperation after 2 to 3 days of work.
3.3 Overtime payment
It was observed during the survey that there exists a major problem in the sector with
regards to the computation and payment of overtime to employees. A malpractice was
noted in many establishments where it was observed that employees performing duty
on public holidays and who were supposed to be paid their normal hours of work plus
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overtime (two times basic rate for the number of hours of work), only received their
normal day’s wage plus one time basic rate as overtime payment. It was further noted
that in many cases, computation of overtime was not explicit in the pay slips that
employees receive and they had difficulty cross-verifying their overtime payment.
Worst, in some cases it was also noted that though mandatory, some employers did not
even provide their employees with pay slips. During the survey, some employees stated
that although they performed extra hours, they neither received any overtime payment
nor did they receive any refund in terms of off days. Further, some employees explained
that they were remunerated with a package which deprived them of the benefit of any
overtime payment. Interviews held with employers revealed that many employers
believe that given the fact that there is not much workload during off-peak seasons,
they may require workers to perform overtime duties with no corresponding overtime
payment. They tend to believe that lack of workload in off peak seasons compensates
for additional hours performed during peak seasons. It was also noted during the
survey that some employers provided their employees with off days to compensate for
overtime work performed.
The Board has carefully analyzed the provision in relation to extra work and overtime
payment as contained in the existing Remuneration Regulations and finds same to be
sufficiently clear. However, it appears that some employers make an abuse by paying
employees less than what is already prescribed. Given that the issue is related to
enforcement, the Board requests the enforcement division of the Ministry to closely
monitor and to ensure that the relevant provisions in relation to extra work and
overtime payment within the catering and tourism industry is fully complied with by all
employers.
3.4 Accommodation facilities
It was observed from the survey that some establishments provide accommodation
facilities to employees who perform night duty. This spares the employer from providing
transport facilities to drop each employee at his residence. However, employees
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claimed that the physical infrastructure of the dormitories is very poor and both male
and female employees are accommodated at the same place, which is not appropriate.
Hence employees proposed that they would prefer to have transport facilities to go
back home and have proper rest instead of being provided with dormitory facilities.
4. Recommendations
After a thorough analysis of all pertinent and relevant information gathered from its
investigation and after having taken into account the specificities of this sector, in
particular, the context and the prospect in which it is evolving and bearing in mind (i)
the principles laid down in Section 97 of the Employment Relations Act 2008 and (ii) the
spirit of the new labour legislations, the Board has come up with the following
recommendations which are duly transposed in the Proposed Regulations at Annex 1:
4.1 Definition Clause
(1) From its investigation the Board observes that the existing Regulations do not
cover certain category of workers employed in the sector and it therefore
recommends the creation of the following new categories:
(a) “Animal Keeper’ who shall be defined as an employee who is responsible
for
(i) feeding, bathing and providing general care to animals
(ii) maintaining cleanliness of sheds at all times
(iii) treating animals in case of minor injury;
(b) “Delivery Person” who shall be defined as an employee who is responsible
for delivering ordered products on a home to home basis and who deals with
cash for the payment of the delivered products;
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(c) “Guide” who shall be defined as a person employed for the purpose of
providing information and assistance to customers and which shall include
quad, Tyrolienne, museum and any other similar activity guides;
(d) ‘kid’s club hostess” who shall be defined as an employee who is responsible
to look after and to organise activities for kids;
(e) “hairdresser” who shall be defined s an employee who shaves, cuts, trims,
dresses, waves, curls, stains or dyes, or who in any other way treats, the hair
and beard of any person;
(f) “Spa therapist” who shall be defined as an employee who offers massage,
beauty care, nail and body treatment.
(2) The Board has been apprised of the fact that the provision in relation to ‘Trainee’
and ‘Certified Trainee’ is not clear and some employers make abuse of same.
Hence, for the sake of clarity the Board recommends:
(a) that a ‘Certified Trainee’ be defined as a person who holds a
certificate of competency issued by an institution approved by the
MITD and who is employed for the purpose of being graded in a job;
(b) that a ‘Trainee’ be defined as an employee, other than a kitchen
helper or a cleaner, who is employed for the purpose of being
trained in a job;
(c) that the definition of ‘trainee’ and ‘certified trainee’ in paragraph 2
of the Regulations as well as paragraph 7 be amended accordingly
as per paragraph 7 of the proposed Regulations in Annex 1.
(3) Employers made representations to the Board that the restrictions on waiters
(maximum of 25 covers per waiter) and valet (maximum of 10 rooms per day per
valet) should be removed inasmuch as such restrictions no longer stand in today’s
rapidly changing working environment. The Board has considered the issue raised
before it but is not prepared to bring any amendment to the existing definition of
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the said two categories of employees inasmuch same appear to be less favourable
the employees. The Board therefore makes no recommendations on the issue.
4.2 Other terms and conditions of employment (Second Schedule)
1. Normal working hours per week
The normal working hours per week in the Catering and Tourism industry is currently 48
and in the course of this review exercise, the Union of Employees of the Catering
Industry, the Hotel and Restaurant Employees Union, the Federation des Travailleurs
Unis and the Confederation des Travailleurs du Secteur Privé, have unanimously
submitted that the normal working hours per week, which is presently 48 should be
reduced to 40. The representatives of employers, in particular the MEF, AHRIM and the
Association des Hotels de Charme contended that the demand made by the unions
cannot be acceded to due to financial constraints. Subsequently, however, both the
trade unions and the employer representatives requested the Board to set up a
subcommittee which shall have joint consultation with the stakeholders to determine
the normal working hours per week in the catering and tourism industry.
Report of the subcommittee on normal working hours
The subcommittee which was set up by the Board pursuant to paragraph 17 Part IV of
the second schedule to the Employment Relations Act 2008, held meeting and
consultations with all the stakeholders and submitted a report to the Board where it
stated the followings:
(i) that the unions pressed on their demand for a 40-hours normal working week
but did not substantiate on their averment that such a reduction shall have no
significant financial implication;
(ii) that the employers’ side argued that because of the current economic conditions
and financial constraints, an outright shift from 48 to 40 hours normal working
week was unconceivable. They, however, indicated that the current 48 hours
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working week can be reviewed and brought down to 45 but the reduction in the
hours of work should be accompanied by a series of flexibilities including job
broad-banding which should be provided for in the Remuneration Regulations.
Given that no consensus could be reached by the parties on the issue of normal working
hours per week, the subcommittee, in its report, recommended that the normal weekly
working hours in the industry be brought down to 45 and the accompanying flexibilities
that was sought by the employers, be left to collective bargaining.
The Board, here, wishes to point out that written representations were also received
from The New Mauritius Hotels (NMH) where, before the setting up of the
subcommittee, the NMH had proposed a 42-hour week comprising of 6 days of 7 hours
excluding meals and breaks, as the least damaging option for the industry. However, in
the course of the Public Hearings, the NMH, through its representative, retracted from
its written proposals and submitted that no change should be brought to the 48 normal
weekly working hours. In his submissions before the Board, the representative of the
New Mauritius Hotels argued that a change in the normal weekly working hours would
have damaging effect on smaller outfits and requested the Board to disregard the
NMH’s initial written proposal in relation to the normal weekly working hours. He
further stated to the Board that for the purpose of this review, the NMH aligned itself
with the stand taken by all the other employer representatives and equally requested
the Board to have the normal working hours determined by the subcommittee.
Apart from the findings made by the subcommittee, investigation led by the Board
revealed that about 30% of the surveyed enterprises which were of different size,
employing from 2 to 250 employees, were already operating on normal working hours
of less than 48 hours per week.
In the course of its enquiry, the Board also came across a dispute which was reported to
the Permanent Arbitration Tribunal by the Union of Employees of the Catering Industry
and Plaisance Catering Ltd, where the Permanent Arbitration Tribunal awarded 45
normal working hours per week.
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Further, the Board also observes that out of 30 Remuneration Regulations which exist,
the Catering Industry and the Domestic Employees (Remuneration Regulations) are the
only two Remuneration Regulations which provide for a 48 hours week while the normal
working hours in the remaining sectors range from 32.5 to 45 hours per week.
In light of the above and after careful analysis of the representations made before it,
the Board finds that a normal working week of 45 hours is just, fair and reasonable in
the catering and tourism industry and it recommends accordingly.
2. Extra Work
With regards to extra work, the unions submitted that overtime should be calculated on
a daily basis and work performed on the 24, 25, 31 of December and 1st of January
should be remunerated at 3.5 times the Basic Rate and work on rest days at 4 times the
Basic Rate. On the other hand employers’ submission was to the effect that overtime
should be computed on a monthly basis and not before completion of the prescribed
number of normal working hours per week and rate of payment for work performed on
24, 25, 31 December and 1st of January should be left to Collective Bargaining.
The investigation lead by the Board reveals that, as compared to other sectors, the
catering and tourism sector is quite specific in nature where some workers work for 16
hours per day and complete the prescribed number of normal working hours per week
in 3 days. Hence, the Boards finds that the calculation of overtime on a weekly basis
best suits the requirements of the industry and it recommends that the status quo be
maintained.
Insofar as the demand for overtime payment for work performed on 24, 25, 31 of
December and 1st of January is concerned, the Board is of the view that same should be
left to be negotiated and agreed upon by employers and employees. Hence, it makes
no recommendation on the issue.
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3. Notional Calculation of basic rate
The Board recommends that the status quo be maintained in relation to the provision
for the Notional calculation of basic rate.
4. Extra remuneration for public holidays
It was submitted by one of the Unions that a worker shall be entitled to a normal day’s
wage in respect of every public holiday other than a Sunday which occurs while he is in
the employer’s service. The Board finds that the existing Regulations already makes
provision for same and makes no recommendation on the issue.
5. Payment of remuneration
In relation to the payment of remuneration, it was submitted by one of the unions that
a daily paid worker should be paid his remuneration not later than the last working day
of every week or where the worker so agrees, fortnightly. The union also submitted that
the pay slip of every employee should make mention of the number of hours of extra
work performed, the corresponding rates and the corresponding extra payment and it
also submitted that no contractual worker should be paid less than an employee
employed on permanent basis for any job of same value. Employers did not make any
representation to the Board on the issue.
The Board has duly considered the representations made before it on the issue of
payment of remuneration and it recommends that the word ‘wages’, wherever it
appears in this paragraph, be deleted and be replaced by the word ‘remuneration’ and
remuneration be defined in the interpretation section of the Regulations as all
emoluments, in cash or in kind, earned by a worker under a contract of employment
and includes any sum paid by an employer to a worker to cover expenses incurred in
relation to the special nature of his work. The Board further recommends that every
employee shall be paid his remuneration during working hours and not later than the
last working day of the pay period and that the pay slip of every employee should also
make mention of (i) the number of hours of extra work performed by him, the
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relevant applicable rates and the corresponding extra payment and (ii) the basic
wages and each item of allowance including any productivity payment. With regards
to the Union submission for equal remuneration for work of equal value, the Board
makes no recommendations inasmuch as Section 20 of the Employment Rights Act
2008 already makes provision for same.
6. Transport benefits and facilities
It was submitted by the Unions that the qualifying distance for refund of travelling
expenses, as it exists in the Remuneration Regulations, be removed and every employee
be entitled to free transport or where no free transport is available, be paid the return
bus fare. It was also submitted by one of the unions that where an employee uses his
own means of transport with the consent of his employer, transport cost should be
refunded in accordance with the civil service transport refund rate for motorcycle or car.
No representation on the issue was received from the employers’ side.
The Board has duly considered the submissions made before it on the issue of
transport benefits and facilities and in line with the provision made in the
Employment Rights Act, it recommends that the qualifying distance for refund of
travelling expenses be maintained. The Board further observes that the existing
Regulations already makes provision for an employee to obtain an allowance equivalent
to the corresponding return bus fare where he attends work by his own means of
transport and it considers that same satisfies the minimum. The Board therefore makes
no recommendation with regards to the union’s demand for transport refund
according to the civil service transport refund rate.
In line with its recent recommendations, the Board recommends that appropriate free
means of transport should be provided to an employee from the employee’s residence
to his place of work or from the employee’s place of work to his residence or both as
the case may be if he is required by his employer to attend or cease work at any time
when no public bus service is available.
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7. Uniforms and protective equipment
The unions demanded for a yearly provision of 3 sets of uniforms, 2 pairs of boots or
shoes, 2 caps in appropriate sections, 2 pairs of gloves to every worker and demand was
also made for the provision of toilet soaps and towels. No submission was offered on
this issue by employers. The Board has given due consideration to the demands made
by the unions and it finds that the provision of 3 sets of uniform and 2 pair of shoes or
boots justified on the ground that workers in the sector are very often called upon to
perform 3 consecutive day/night shifts and the current provision of two sets of
uniform are, in the circumstances, inadequate. It therefore recommends accordingly.
With Regards to the demand made for the provision of two pairs of gloves, the Board
observes that the existing Regulations provides for the issue of gloves when they
becomes unserviceable and makes no recommendations on the issue. The Board also
makes no recommendations with regards to the demand for the provision of soaps
and towels inasmuch as the enquiry led by the Board reveals that employers do
provide same to employees at their workplace.
8. Joint Liability
The Board has received no submission on the issue from either side and recommends
that the status quo be maintained. It, however, wishes to point out that its field
investigation has revealed that many jobs such as transportation of workers,
entertainment, decoration works, cleaning and security services among others in this
sector, are contracted out and those contractual workers are exploited inasmuch as
their prescribed minimum terms and conditions of employment are not observed. The
Board therefore invites the enforcement division of the ministry to monitor the
situation closely and to make full use of this provision wherever required so as to ensure
that job contractors comply with the relevant provisions of the law.
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9. Annual Leave
The unions made representations to the Board for annual leave to be increased to 16
days where 8 days shall be taken consecutively upon approval of the employer and
remaining days shall be taken at such time as the worker and employer may agree. It
was also submitted by the unions that contractual workers with less than 12 months
service should be entitled to 1 day Annual leave per month and same be refunded if
untaken at the end of the contract. Representative of employers submitted that annual
leave should remain 14 days. The Board finds the demand for 16 days annual leave
justified and in line with its recent recommendations in other sectors, recommends
that the annual leave be increased from 14 days to 16 days. It further recommends
that where an employer and an employee are unable to agree as to when the
proposed 16 days annual leave is to be taken, half of the leave period shall be fixed by
the employer and the other half by the employee. The Board also observes that
Section 27 (2A) of the Employment Rights Act makes provision for 6 days annual leave
for workers with less than 12 months service after completion of 6 months continuous
employment. Hence, it makes no recommendations with regards to the demand for
casual leave for contractual workers.
10. Sick Leave
The CTSP made representations for 21 days sick leave on full pay, a further period of 15
days on half pay for prolonged illness and all untaken sick leaves for a period of twelve
months to be accumulated to a maximum of 90 days in a bank sick leave. Other
employee representatives, on the other hand, demanded for a full refund of balance
sick leaves. Demand was also made by the unions for 1 sick leave per month and 15 days
on half pay for prolonged illness for contractual workers with less than 12 months
service. Employers submitted that there should be no refund for untaken sick leaves.
The Board has given due consideration to the representations made before it. First of
all it observes that section 28 (2A) of the Employment Rights Act makes provision for 6
days sick leave for employees with less than 12 months service and it therefore makes
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no recommendation with regards to the demand for sick leave for contractual
workers. However, in line with its recent recommendations in other sectors, the Board
recommends that untaken sick leaves at the end of a period of 12 months, be
accumulated to a maximum of 90 days and same be used as a bank from which leaves
can be deducted when employees exhaust their available sick leave to undergo
prolonged treatment.
11. Maternity protection
With regards to maternity protection, the unions submitted that maternity leave which
is currently 12 weeks on full pay should be increased to 14 weeks and Maternity
Allowance should range between Rs 4000 and Rs 7000. The unions also demanded for 6
weeks leave with pay for stillbirth and 3 weeks leave with pay for miscarriage and 1 hour
breastfeeding to be taken either in the morning before coming to work or in the
afternoon before normal cessation time of work. No representation was received from
the employers’ side on the issue.
The Board has considered the representations made before it on the issue of
maternity protection and is of the view that maternity leave of 12 weeks on full pay
be maintained as it is in line with the Board’s more recent recommendations in other
sectors.
The Board however recommends that maternity allowance be increased to Rs 3,000
and the restriction of the relevant benefits to 3 confinements be removed.
12. End of year bonus
For the purpose of the end of year bonus, it was submitted by one of the unions that
earnings should include basic wages, overtime payment, allowances and productivity
payment and should be defined accordingly. The Board observes that ‘earnings’ in the
existing Regulations already include what has been proposed by the Union. It therefore
makes no recommendation.
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13. Work in cyclonic weather
With regards to work in cyclonic weather, it was submitted by one of the unions that the
words ‘or at any other place which is within the control of his employer’ should be
removed from this paragraph because same tends to allow an employer to cause an
employee to work on his private premises during a cyclone warning class III or IV. In
order to prevent any kind of misinterpretation or abuse from the part of employers in
relation to this provision, the Board recommends that where an employee works or is
required by his employer to remain at his workplace on a day on which a cyclone
warning class III or IV is in force, the employee shall in addition to any remuneration
due to him, be entitled to an allowance equal to three times the basic rate in respect
of every hour and shall also be provided with adequate meals. The Board further
recommends that the word ‘workplace’ be defined in the interpretation section of the
Regulations as “any premises or part of premises which are not domestic premises
and which are made available to any employee as a place of work”.
14. Overseas Leave
Investigation led by the Board has revealed that very few employees in the sector have
benefitted from overseas leave and same is attributable to the 15 years continuous
employment criteria which acts as a bar and the financial constraints faced by fellow
employees to fund holidays abroad. It is also worth pointing out at this stage that all the
employees who were interviewed during the survey have expressed their wish to have
overseas leave replaced by vacation leave which can be spent locally or abroad.
In line with its recommendations in other sectors, the Board recommends that
‘Overseas leave’ be replaced by ‘Vacation Leave’ and an employee reckoning 10 years
continuous employment with the same employer be entitled to one vacation leave of
not less than 2 months to be spent wholly or partly abroad or locally at the
employee’s discretion and at least one month of the vacation leave shall be with pay
and where an employee intends to spend his vacation either partly or wholly abroad,
payment shall be effected at least 7 days before he leaves.
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15. Gratuity on retirement before 60 on medical grounds
In line with its recent recommendations in other sectors, the Board recommends that
the eligibility period for gratuity on retirement before 60 on medical grounds be
reduced to 5 years.
16. Death Grant
The unions have demanded for an increase of the death grant and have proposed sums
varying between Rs 5,000 and Rs 10,000. They have also submitted that death grant
should be paid irrespective of the years of service. No representations have been
received on the issue from the employers’ side. The Board has duly considered the
representations made before it and is of the view that the death grant of Rs 3,500
should be maintained and it recommends accordingly.
17. Gratuity at Death
In line with its recent recommendations in other sectors and in the quest of
harmonization, the Board recommends that the eligibility period for gratuity at death
be reduced to 5 years.
Other items not covered in the Regulations
18. Special Leave
The union representatives submitted before the Board that the Regulations should
make provision for Special Leave. The Board finds the Union’s demand justified and
recommends that a worker who has remained in continuous employment with the
same employer for 12 consecutive months be entitled to-
(a) 6 working days leave on full pay on the occasion of the celebration of
the worker’s first religious or civil marriage;
(b) 3 days special leaves on full pay on the occasion of the first religious or
civil marriage of each of the worker’s child and
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(c) 3 days special leaves on full pay on the death of the worker’s spouse,
child, father, mother, brother or sister.
19. Compensation
Representations were made before the Board by one of the unions for compensation of
3 days wages for each completed month’s service in respect of employees on
determinate contract upon termination. The Board observes that the sector employs
many contractual workers and those workers are not entitled to any compensation
upon termination of their contract. Hence, in an attempt to provide minimum
protection to those workers, the Board recommends that upon termination of their
contract of employment, every employee be entitled to a compensation of one day’s
wage for each completed month of service where –
(a) He has worked for the same employer for more than one month;
(b) His service is terminated before the expiry of 12 months for any cause
other than misconduct or his short term contract has come to an end;
and
(c) His attendance has averaged not less than 20 days per month during his
employment.
20. Medical facilities
Following investigation carried out in this sector and taking into account the potential
health risk factors, the Board recommends that every employee who is directly or
indirectly exposed to noise, dust and chemical and noxious substances shall undergo
a complete medical checkup not less than every 6 months at the expense of the
employer.
The Board further recommends that should health problems be detected during
such check-ups, the doctor shall refer the employee to a recognized medical
institution for appropriate investigation and medical care.
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21. Certificate of Employment
The Board recommends that when an employee leaves the employment of an
employer, he be issued with a certificate of employment stating his length of service
with the employer, the post held by him and if he so wishes, his basic wage and the
certificate shall not contain anything unfavourable to the worker.
4.3 Wages
Bearing in mind the principles laid down in Section 97 of the Employment Relations Act
2008 and after having carefully analysed the proposals made by immediate
stakeholders, the nature of work performed and the prevailing wages in the industry,
the Board has come up with recommendations regarding wages, which it considers
fair, just and reasonable and which is transposed in the First Schedule of the Proposed
Regulations at Annex 1.
5. Acknowledgement
The Board extends its thanks to:
(i) all parties and other institutions or persons who, through their representations,
depositions and cooperation, have greatly contributed to help the Board reach
the present recommendations;
(ii) the members of the staff for their invaluable collaboration characterized by their
relentless effort, praiseworthy commitment and professional approach; and
(iii) the members of the supporting staff for their contribution in the recording of
minutes of proceedings and making same available for reference.
National Remuneration Board
Date: 18 February 2014