Beautiful Virgin Islands

Tuesday, Jun 24, 2025

Layoff period temporarily extended to 7 months! Severance must be paid if jobs not restored by Oct 31

Layoff period temporarily extended to 7 months! Severance must be paid if jobs not restored by Oct 31

In light of the COVID-19 crisis, government has moved to temporarily extend the territory’s maximum layoff period from the usual three months to seven months.

Provisions to facilitate this move was made in the Labour Code (Amendment) Act 2020 which passed in the House of Assembly on Thursday afternoon, June 12.

Labour Minister Vincent Wheatley said the crux of the amendment is to insert a new subsection - Section 107(4) - which now allows employers to lay off their staff for beyond the previously-allotted three months before they are allowed to disburse severance pay.

Wheatley said: “The proposed extension will allow an employer to lay off an employee for a period beginning 14th March - which coincides with the cancellation of all cruise ships calls to the Virgin Islands and represents the first stage in the closure of our borders - and not to exceed 31st October 2020.”

“This is with expectancy that if the employee is not reinstated, severance would be payable immediately on or after 31st October 2020,” Wheatley added.

The Labour Minister said he believes the amendment will be beneficial to both the employer and the employee, stating that it will alleviate the burden on employees to seek alternative permanent employment while allowing for businesses to identify the necessary funding for a severance, where applicable, during the COVID-19 period.


Not a win-win for all

During the debate of the legislation - before it passed - senior Opposition legislator Julian Fraser challenged Wheatley’s claim that the amendment was beneficial to both the employer and employee.

“Who is this Bill really benefiting?” Fraser questioned. “Is it benefitting the employer or the employee? Don’t tell me it’s benefitting both [and that] it’s a win-win. It can’t be.”

“If you are supposed to pay an individual severance after three months and you are extending it to six months, it has to be benefitting the employer. What is an individual going to do being unemployed for six months? He’s going to look for a job and if he finds a job in the fourth month, it means that he doesn’t get severance pay does it,” Fraser added.


Severance pay should be protected

The Opposition legislator, therefore, urged Wheatley to include a section in the amended legislation that protects the severance pay of employees who seek temporary work from other employers during their layoff period.

“They (employees) want to make sure that if they go out and find a job, they are going to get their severance pay. And when you say you are making it clear, I want to see it in legislation. Don’t say it here and when you go in the legislation you can’t see it in there,” Fraser argued.


Will be addressed in Committee Stage

In response to Fraser’s comments, Minister Wheatley said he will be addressing the issue during the Committee Stage of the proceedings, which happens when the entire House privately convenes to carefully examine every clause a Bill and make any changes, as necessary.

“That is one adjustment that we have to make to make sure that these employees, who are put in an extended period, be allowed to work without affecting their severance in any way.”

Coming out of the Committee Stage, changes were indeed made to the amended legislation.

As of May 27, some 767 persons in the territory have been reported as laid off and 165 terminated because of COVID-19.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
BBC Demands Perplexity AI Immediately Stop Using Its Content
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
×