British Virgin Islands

Monday, Jun 14, 2021

Cabinet Further Extends Severance Pay Period

Cabinet Further Extends Severance Pay Period

The Cabinet of the Virgin Islands has further extended the timeframe for the payment of severance pay to employees in the territory.
The announcement was made via an order in the Official Gazette on Thursday, February 4 2021.

It said that the Order came into effect on February 1.

According to the Order, “The period for the payment of severance to an employee who was temporarily laid off pursuant to section 107(4)of the Labour Code, 2010 is hereby extended to the 28thday of February 2021.”

Further, “This Order shall cease to apply on March 1, 2021and thereafter, the payment of severance to an employee upon the expiration of a three month period, as provided under section 107(2)(c) of the Labour Code, 2010 shall be reinstated,” it added.

Back in June last year, Minister for Labour Hon. Vincent Wheatley told the House of Assembly that due to the ongoing health crisis, the government extended the maximum layoff period from three months to seven months.

As a result, the Labour Code was tweaked to facilitate the adjustment that would make it lawful for employers to layoff their staff before they are expected to issue them with severance pay.

At the time the Minister said it was due to the cancellation of all cruise ships to the territory. The timeframe was not expected to go beyond October 31, 2020.

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