Labour law change aims to keep people insured
(CNS): An amendment to the Labour Law regulations will extend the period that employers can lay people off without firing them to 60 days before they must pay severance. Premier Alden McLaughlin said this was to encourage employers to retain their workers for longer “until things get easier”. If people keep their jobs, even if they are not actually working, employers will be required to maintain their health insurance policies, easing what could otherwise become another unprecedented burden on public coffers.
With the economy in the deep freeze, as the government aims to curb and then eliminate the coronavirus before allowing business to re-open in any significant way, employers and government are facing some unique challenges.
CNS has received numerous comments, queries and questions from readers, both local and expatriate, who have either lost their health insurance policy after losing their jobs or employers have not been making the payments, leaving them not only without a salary but also without health cover. But this issue poses a massive problem for government, especially during this COVID-19 public health crisis.
As people lose their jobs and their health insurance, government will have to cover their hospital bills.
“That’s why we are working hard to get people who are unemployed and not Caymanian to return to their home countries as we don’t have the wherewithal to cover all of that expense,” the premier said at the daily briefing on Wednesday.
McLaughlin explained that the change to the Labour Law, which will be dealt with in parliament Thursday, is designed to keep people employed for longer because so long as they have a job, they will be covered by health insurance.
He noted that employers are required to pay at least half of the health insurance. If they are doing so, they both they and the employees are in breach of the law. However, he acknowledged that government was aware that some people will not have the means to pay it.
He said that “one of our great worries” was that “if we wind up with a significant number of people here without any health insurance cover, it does mean that government is going to have to pick up the tab”.
Meanwhile, the efforts to airlift expatriate workers and others back to their home countries continue, though Governor Martyn Roper said that challenges still remain.
Another evacuation flight by Cayman Airways has now been confirmed for Miami on Friday 1 May but it will not be bringing back any returning locals.
The British Airways charter air-bridge for next week is now open for booking here. It will arrive here on Tuesday night and return to London via Turks and Caicos on Wednesday evening.
Roper also said his office was doing a lot of work behind the scenes to arrange more evacuation flights around the region. He said discussions were ongoing with around five governments of countries in the region. He said he did not want to give more details as the discussions were underway but it was a high priority for his office.
See the full press briefing on CIGTV below:
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Category: Business, Health, Health Insurance, Laws, Politics
Wow! Thanks Alden! So now I am responsible for 100% of the health insurance? Since no employees have any earnings. And we are totally shut out from making a single dollar. Thank you so much! Calling Forbes to tell them what a swell guy you are.
You are posting comments too quickly. Slow down.
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CNS: One reader told me that if you refresh the page and then re-post, it’s fine. Sorry, but the only fixes I’ve found for this may cause worse problems.
I get that when trying to post one comment!!!
I only get it when I type too fast lol
It is very annoying. Especially if you comment is large. You lose the content when refreshing or whatever. The only option is to select and copy the comment you have just written, and if “you are posting too quickly” you don’t need to retype it, just paste. Keep in mind if you are responding to someone’s comment going “back” would put your comment on top.
Just wondering, if BA flight arrives on Tuesday and leaves on Wednesday, where do the pilots/crew go during that time? Are they isolated?
They overnight in the isolation hotel & then go out with the flight the next day,
And do they then have to wait like cattle in a slaughterhouse in the airport to be taken with the returning citizens to that same facility – or for some magic reason do they get preferential treatment?
These laws are in here to restrict employer abuse…Aldart don’t pretend lessening the restriction is for the benefit of the employee. It is to minimize the chance your fellow lodge members will need to pay severence.
Yes we understand the law but the longer you allow the less likely people will be able to claim. Either they have to stay in cayman with no pay for 60 days or leave cayman and hope they are able to return in 60 days. Don’t be stupid.
So in other words you have crafted a way for unscrupulous employers to avoid their obligations to their expatriate employees?
Exactly
Not just expatriate. All employees. Cost of living does not allow Caymanians to go 60 days without income and if they find other employment, they lose their benefits too. Quit with the separation tactics. The law and repercussions affect everyone.
True but they will be here in 60 days to collect their severance…whereas expatriates may not.
I am supposed to feel sorry for you because you have another country to legally be resident and work in and that hasnt shut down its economy?
You sir are an idiot…first it is unlikely my other country has any work…also this is about receiving what is owed me…according to your laws.
Well now everyone will know how it feels like to be in the construction industry except this is nowhere as bad. In construction, they have been able to lay off for 6 months at a time without pay or severence for years now. And they can bring you back for a week, then do it all over again as law doesnt rule out repetition (note that this pandemic may have 2nd and 3rd waves!). These laws are constantly written to help employers but not employees because at the end of the day govt only cares about business and economy, not the people!
Through the years, it is very sad how people who labour in the Cayman construction sector are exploited. So many of the developers should be ashamed of themselves are they certainly do not meet the standard of being good corporate citizens.
Or even good architects!
Tax evasion and money laundering by the pros. Watch and learn people. This is how its done.
So irrelevant.
As usual, govt just changed a law to protect themselves and employers but not employees or the general people.
My question is, why can’t government cover the cost just for COVID-19 symptoms, especially as he says he’s trying to eliminate the virus completely from the island?
Also, the tests that were donated, is government now double dipping, they will charge insurance companies for persons getting tested?
Lets be honest here, most employees, especially those in the hospitality, helpers, shop assistants are on the cheapest policy which basically gives you hardly any coverage.
A form if national health cover for the government hospital should be looked at, I’d happily pay a little extra (say $25pm) for my individual staff.
$25pm wouldn’t cover it. Which is the problem. Everyone assumes nationalised health insurance is cheap.
No tyrant wants freedom for the people.
This showed that the Premier and his government had not have a plan. He did not mandatory require people to leave knowing that their employer/employment was going to be closed. Ie public bus drivers should have been told to go home after he made it mandatory for them to stop driving. Also other business like parts store and hardware stores.
Leave where? I though the public bus drivers had to be Caymanian?
By whose definition? Not the one in the law.
Wow. Talk about being kicked once you are down?!
He does realise that in the private sector that the employee actually pays 50% of their health insurance right? If they have no income then where are you proposing the funds come from?
So my employers will have to pay 50% of my premiums for 60 days whilst I can’t make my 50% and then after 60 days if the business goes under I get nothing? This new amendment makes no sense or have I missed something?
And you have to be willing to stay in cayman for 60 days without pay or able to return to cayman to restart work (even for one day) or you void your claim.
Not correct. If you are not ‘recalled’ to your employment, you are entitled to notice and severance pay + and accrued vacation.
Unless youre only back for a month and then a second wave comes which allows your employer, using this same law, to lay you off again without pay for another 60 days…..
Health Insurance Regulations (2017 Revision)
7.
(2) Where a premium is paid by the employer in respect of any insured person, that insured person and his dependants, if any, shall be covered under the standard health insurance contract for the month for which the premium is paid notwithstanding that, during the course of that month, the insured person’s employment may be terminated or he otherwise ceases to be compulsorily insured.
(3) Where an insured person takes up employment in the course of a month the effective day for the purpose of determining liability of his employer under section 5 of the Law shall be the first day of employment, except that, where the insured person is already insured for the month in which the employment begins under a contract of insurance effected by his previous employer, the effective day shall be the first day of the month next following the first day of employment.
(4) Cover under a standard health insurance contract ceases on the first day of the month next following the date of the termination of employment except that, in accordance with section 15 of the Law, if the insured person does not become insured under any other employer, cover under the contract shall continue to be made available for a period of three months from the date of termination of employment or until he becomes employed, whichever is earlier.
Exactly – so no need to do any of this. Why not just enforce the existing rules and let people gate their severance?
Because under section 15(3) of the main law, that three months of post-termination cover is wholly at the employee’s own expense: taking away the employer’s contribution would erode that severance pay pretty quickly.
Not when you add the notice pay and accrued vacation pay, and allow the individual to wait it out in their home country.
Which is rather predicated on them being able to go to their home country. And having a meaningful notice period. And having some accrued but unused vacation.
Your notice period is typically your pay period.
Because apparently, even though with the Health Minister by his side, neither of them knew enough before proceeding to completely undermine the health law. SMH. I’d feel better if Stevie Wonder was driving this bus!
We should have implemented a national healthcare system a long time ago. Having access to healthcare tied to employment is a mistake. Unfortunately, we have business lobby groups that advocated for the broken system that we have in place today.
Healthcare is tied to who’s paying the bill. The way it ought to be. When you leave, you have the option to keep paying the entire bill.
Many people pay health insurance for decades without actually using the healthcare system in any meaningful way. When they eventually get older and retire is when they will need the system the most. However, at that stage health insurance and the related copayment can be be impossibly expensive and a major financial burden. A national healthcare system will allow someone to pay in when they are younger and then have access to care as they get older. A national system will allow the government to negotiate for cheaper drug prices and bring previously unavailable services to the island.
Yes a national health system for sure BUT PLEASE not administered by CIG of the Civil/Public service.
That would be nothing but more bloating of CIG vote getting employment opportunities and nothing but inefficiencies (and worse) in service delivery -just look at the bad debt at the GT Hospital (and that is just for what they have records of/know about…..we all know it is not the real bill).
Have the private sector run a National Health System, overseen by Trustees with actual knowledge, experience and real qualifications.
Keep the politicians out of it…..
The private sector could offer that option now. Nothing is stopping them. But they don’t. Why? Less profit. You want national health care? That comes with a Civil Service to get it done right. Otherwise you have what you have now. Which is what all of una in the private sector said you wanted.
Taxes
8.51pm You forget the civil service lobby, which has been magnificently successful.
Worrying that the Government does not understand our existing laws. Governor?
So the Premier of the Cayman Islands is ignoring the Health Insurance Law which requires employers to keep employees insured for 3 months following employment, and is now actively taking steps to allow for thousands of expatriates to remain here with no pay for two months+. This is going to work well.
The employer has to offer that to the employee but the employee has to pay the fees in full so is able to opt out if they so choose.
They can only opt out if they leave Cayman or become insured elsewhere. Otherwise the employer is potentially on the hook for medical bills and the employee has committed an offense.
He also ignores Tenant&Landlord law when giving advices. Or he (and his consultants) doesn’t know the Law.
Not just allowing expatriate workers to be here with no income or employment for an indeterminate period, but actively encouraging it. He had a chance to require that the laws be followed to help ensure maximum possible Caymanian employment AND that everyone gets payments due to them from their employers. Such a shame. Why not just enforce our existing laws Alden?
Why do you think this only affects expatriates?
What a pile of BS…he knows the longer it is extended the less likely some will return to work/cayman and therefore lose their claim. This is the whole reason it was limited in the law…if he wanted to make it about the worker he would have required mutual agreement.
This guy is so slimy.
They might not even be able to return if called back to work.
Alden just took away your severance folks.
actually no he didn’t – under the current law you can temporarily lay off a worker for up to 30 days (furlough in US terminology) no salary but need to maintain health insurance – at the end of the 30 day period either back to normal salary or severance – the change to the law will allow a temporary termination of up to 60 days – same rules apply at the end of this period ie return to work or severance
Ah, but it only takes 45 dies for a healthy human to starve.
I’ll just close my businesses to avoid paying it now. Can always reopen at a later date.
Well now with Alden you don’t have to close your business, have failed business on your CV or go through t&b process or legal process of opening another company. Don’t be stupid.
So if you have to close your business as you can’t comply with the laws and regulations maybe you should’t have your own business…nothing to be ashamed of some people are just too stupid.
Who said I had to? I just said I was going to.
Right and then either liquidate your company or declare personal bankruptcy to avoid paying severance. Then go through legal for new company and process for new T&B. This is what I mean by stupid…some people are just meant to be ditch diggers.