Frequently Asked Questions FREQUENTLY ASKED QUESTIONS The following "Frequently Asked Questions" and answers provide a quick overview of some key principles that every Employer should know. This is not intended to be used as legal advice, nor does it intend to elaborate on every aspect of industrial relations. Each situation is different and must be addressed based on the merits of the issues involved. In this regard, this information should be considered along with your organisation's specific policies, practices and legal obligations. If you are in doubt about any of its contents or on the application of any principle to your organisation, you are advised to contact the ECA at +1 (868) 675-9388/5873/6026, 638-6463, by email at This email address is being protected from spambots. You need JavaScript enabled to view it. or you can complete our online IR Advice Request Form. EMPLOYMENT CONTRACTS Should I have an Oral or Written Contract? While oral contracts are legally acceptable, it is preferable to have a written contract in industrial relations. Contracts reduced to writing will outline, in no uncertain terms, what parties have agreed to. Duration of Contract? Contract duration can vary from short term (e.g., 6 months, 1 year.), to fixed term (e.g., 3 years), temporary, or permanent. There are two main types of contracts: Contracts for Service and Contract of Service. What is Contract FOR Service? Contract for Service refers to hiring an individual or group of individuals via an independent contract for specific services to be provided by the individual or group. The independent contractor has discretion on how the work is done, works for himself and is free to have other clients. The contractor has complete responsibility for his own statutory deductions and that of his employees. What is Contract OF Service? Contract of Service refers to an individual who is hired to provide a service to a company as an employee of the company. The company hires the person, has control of his time and the way he does the job, and the person is not free to work for other persons or firms. The company is liable to make all statutory deductions from the person’s wages. What should a contract of employment contain? The following list can serve as a guide to the main elements of a contract of employment: Name of employer and name of employee Date on which employment becomes effective or period of the contract (subject to renewal upon review) Job title and/or a brief description of duties Location where the employee will regularly work Rate of pay, period and method of payment. Information relevant to statutory deductions Normal hours of work and related conditions e.g., time and length of meal breaks, overtime provisions Arrangement for annual leave and holiday pay, including means whereby both can be calculated precisely Terms and conditions in relation to sickness and sick pay, injury or other types of leave provisions available Any available benefits Length of notice due to and from employees Disciplinary rules and procedure Arrangements for handling employee grievances Conditions of employment relating to trade union membership, where applicable Terms relating to termination of the contract (e.g., resignation, dismissal, retrenchment etc.) DECENT WORK What is Decent Work? The International Labour Organization (ILO) defines Decent Work as “productive work for women and men in conditions of freedom, equity, security and human dignity”. What are the basic elements of Decent Work? In general, the main elements of Decent Work are: employment opportunities adequate earnings and productive work decent working time combining work, family and personal life work that should be abolished stability and security of work equal opportunity and treatment in employment safe work environment social security social dialogue, employers’ and workers’ representation? SourceInternational Labour Organization, 2022. Decent work indicators. [online] ilo.org. Available at: <https://www.ilo.org/integration/themes/mdw/WCMS_189392/lang--en/index.htm>. MINIMUM WAGE What is the Minimum Wage in Trinidad and Tobago? Effective January 1st, 2024, the minimum wage in Trinidad and Tobago is $20.50 per hour. Workers earning between $20.50 and $30.75 fall within the range of minimum wage. How many hours must a worker work in a day? The normal working day in Trinidad and Tobago shall not exceed eight (8) hours, exclusive of meal and rest breaks (Minimum Wages Order, Section 3:1). How many hours must a worker work in a week? The normal workweek shall not exceed forty hours, exclusive of meals and rest breaks (Minimum Wages Order, Section 3:2). How many hours must a worker work in month? The normal working month shall not exceed one hundred and seventy –three and one-third hours, exclusive of meals and rest breaks (Minimum Wages Order, Section 3:3). Are workers entitled to overtime payment? Yes (Minimum Wages Order, Section 5:1). The Second Schedule of the Minimum Wage Act specifies overtime wages for all workers, as follows: For overtime worked beyond eight hours on a normal working day: First four hours - one and one half times hourly rate Second four hours - two times hourly rate Thereafter, three times the hourly rate For overtime worked beyond ten hours on a working day of a four-day week: First four hours - one and one half times hourly rate Second four hours - two times hourly rate Thereafter - three time hourly rate For time worked on off day: First eight hours - two times hourly rate Thereafter - three times hourly rate For overtime on a Sunday where Sunday is a normal day: Same as (i) above For time worked on a Sunday where Sunday is not a normal day and on a Public Holiday: First eight hours - two times hourly rate Thereafter - three time hourly rate For time worked beyond the forty-hour work week: First four hours - one and one half time hourly rate Second four hours - two times hourly rate Thereafter - three times hourly rate Are all workers entitled to sick leave? Generally, no. However, certain categories of workers are entitled to sick leave under the Minimum Wages Act in Trinidad and Tobago and a general practice has developed where a worker who has worked continuously for six (6) months, qualifies for fourteen (14) working days sick leave. Employers shall have the right to discipline workers who are excessively absent. What is considered excessive has been pronounced by the Industrial Court over time. Are all workers entitled to vacation leave? Generally, no. However, certain categories of workers are entitled to vacation leave under the Minimum Wages Act in Trinidad and Tobago. In this regard, a general practice has developed where a worker who has worked for one year continuously, qualifies for annual leave. TERMINATION Do employers have the unfettered right to dismiss? No. Employers had that right under common law, but since the enforcement of the Industrial Relations Act, this right no longer exists. What is the right way to terminate? “The employment of a worker shall not be terminated unless there is a valid reason for such termination connected with the capacity or conduct of the worker or based on the operational requirements of the undertaking, establishment or service.” (ILO’s Termination of Employment Convention (C158), 1982) To achieve the above, it is necessary to conduct a thorough investigation to determine whether or not there is a valid reason Having established the reason for the termination, the reason or reasons must be communicated to the worker and Union (if any) so that they may respond The worker must always be given an opportunity to explain his situation concerning the reason for the proposed termination or dismissal Save in exceptional cases a worker must be given an opportunity to be heard before any termination takes place (Natural Justice). What is Natural Justice? So, you are contemplating a dismissal? The principles of Natural Justice require that before making up his/her mind, the employer must: warn the employee concerned that the procedure is being operated in the context of the possibility of dismissal. Employees are entitled to know that their job is in jeopardy, as this could influence the seriousness which they attach to accusations and how they respond; inform the employee of the accusations against him/her and the reasons why it is proposed that they be dismissed or otherwise seriously disciplined; give the employee the right to reply to those reasons. Adequate time must be given. It may not, in all cases, be appropriate to require a response on the spot listen to all arguments, excuses or submissions made in relation to the matters and issues and give due consideration to them; allow the employee the right to be accompanied by a peer or person of his/her choosing not be a judge in his/her own case, i.e. if a manager was involved in the events which led to the disciplinary hearing, then he/she should be a witness only and a more senior or other manager should take over management of the disciplinary procedure. In small companies, it is recognised that this may not be possible and due allowance will be made for this. In such situations, however, very evident fairness will be required. MATERNITY PROTECTION Do all female workers qualify for maternity leave? A female worker qualifies for maternity leave under the Maternity Protection Act (Chapter 45:57). Once she has worked continuously for one year or more, she is entitled to: leave of absence for the purpose of maternity leave pay while on maternity leave and to resume work after such leave on terms no less favourable than were enjoyed by her immediately prior to her leave. She must comply with Section 8 of the Act in order to be eligible for Maternity Leave. Maternity Leave is also applicable in instances where death of the child occurs or the birth is premature (Section 7). What is the period of maternity leave? An employee is entitled to fourteen (14) weeks maternity leave and may proceed on such leave six weeks prior to the probable date of confinement as stated in the medical certificate submitted under section 8(1)(c) of the Maternity Protection Act, or at a subsequent date at the employee’s discretion, and is required to return to work, subject to section 10, no later than fourteen weeks from the date she proceeded on leave. What should I pay a worker on maternity leave? During the period of maternity leave, an employee is entitled to receive pay from her employer to an amount equivalent to one month’s leave with full pay and two months’ leave with half pay (Section 9:2). Can the period of maternity leave be extended? Yes. For medical reasons (Section 10:1), leave can be extended for a period not exceeding twelve (12) weeks after the required date of return. The employee shall inform her employer in writing of her intended date of return (Section 10:2). For non-medical reasons, an employee may postpone her return to work until a date not exceeding four (4) weeks after the required date of return, providing written notice is given in the stipulated timeframe (Section 10:4). RETRENCHMENT AND SEVERANCE Are all workers entitled to severance pay? Under the the Retrenchment and Severance Benefit Act (Chapter 88:13), once a worker has worked a year or more continuously he/she is entitled to severance pay once the position becomes redundant and there is surplus labour. How is severance pay calculated? The Retrenchment and Severance Benefits Act provides a minimum standard for the calculation of severance pay. This may be varied through mutual consent by parties to a Collective Agreement, providing that the terms are no less favourable than the provisions set out in the Act. Weekly workers: Between one (1) and less than five (5) years of service - 2 weeks’ pay for each completed year of service and a pro rata payment for each period of service amounting to less than a completed year of service. Five (5) or more years of service - 3 weeks’ pay for each completed year of service and a pro rata payment for each period of service amounting to less than a completed year of service. Monthly workers: Between one (1) and less than five (5) years of service – ½ month pay for each year of service and a pro rata payment for each period of service amounting to less than a completed year of service. Five (5) or more years of service – ¾ month pay for each year of service and a pro rata payment for each period of service amounting to less than a completed year of service. Are employers required to give notice prior to retrenchment? Yes. An employer must give 45 days’ notice to each employee or payment in lieu of notice when deciding to retrench. Subject to the operational needs of his firm, an employer shall not refuse the request of an involved worker, made in advance, for reasonable time off from the job in order to seek employment. Section 4:1 of the Act also stipulates that where five (5) more workers are to be terminated, employers are also required to give notice to each involved worker, to the recognised majority union and to the Minister with responsibility for Labour. However, it is recommended that such notice be given irrespective of the number of workers to be terminated. JOB ABANDONMENT What is job abandonment, and when can I terminate? It is within the right of the employer to cross the name of the worker off his payroll if the worker fails to turn up to work after three (3) days and there is no communication or reason for his absence. The employee by his actions has repudiated the contract of employment. However, this must be done after reasonable attempts have been made to contact the person by all available means via their last known contact information and at their last known address. Approximately one month would be reasonable enough to make such attempts before terminating due to job abandonment.