Employment Relations in Mauritius: A Modern perspective and New Challenges by Emeritus Professor Ved Prakash Torul

Employment Relations in Mauritius A Modern perspective and New Challenges by Emeritus Professor Ved Prakash Torul Consultant: Employment Law and Industrial Relations

Professor V.P. Torul B.A (Hons); Dip. Public Administration; Higher Edu. Diploma; Dip Admin Magt; Dip in Management; LLB; LLM; LLD Emeritus Professor of Law Consultant Employment Law and Industrial Relations Mediator Singapore Mediation Centre

The Employment Relations Act (2008) and (2019) as amended is a proactive statutory instrument borne out of a presevered consensus building process between the social partners so as to promote and maintain a harmonised employment relations climate in Mauritius. Part II of the code of Practice on Basic Employment Relations Principles provides a guideline to a modern perspective, and addresses a the same time the new challenges facing employment relations in response to the dynamic and changing landscape in the Mauritian economy that is largely influenced by the advent of globalization and development in various sectors such as finance, tourism, textile, manufacturing, ICT/BPO, freeport and seafood. Within the fast developing economic context, expediency requires a fresh look at employment relations from a modern perspective. The world of work has been transformed since the Industrial Relations Act 1973 was enacted which brought changes in employment relations in Mauritius. Now, the modern trend in employment relations follows the dictates of following phenomena: Firstly, in Mauritius, the world of work has undergone substantial changes due to competitive pressures and the justification to reduce unit labour costs. Employers are aiming at more systematic reappraisals of organizational structures and redefining the enterprises’ core activities. The legal consequences of many of these developments have been felt, particularly, in variation of contract of employment and the application of the law relating to the termination of employment due to operational requirements, transfer of undertakings and mergers. Secondly, due to high level of literacy among the Mauritian labour force, employees/ employers understand better the traditional vehicle for regulating the employment relationship through a contract of employment. Employees mainly are reasonably conversant with their rights under the employment law. These rights include among others, the right to decent work environment, the right not to have the contract unfairly terminated, the right to contractual information, the right that no term of the contract should be discriminated, minimum period of notice, the right not to have pay deducted unlawfully, a minimum right for maternity leave for women, paid leave, maximum working hours, statutory minimum pay etc.

Thirdly, through several statutory interventions, the state has empowered employees to match their bargaining power with that of the employer. Presently in the labour market, individual labour law is giving place to collective labour law. The relationship with an employer is not only inspired by the belief in equality of individuals, but it is also determined by the statutes and collective bargaining. There is now an extensive overlapping between individual and collective rights. Fourthly in the modern employment relations context a concern is raised whether the common law contract of employment has the ability to regulate the complexities of employment relationship. In Mauritius, it is commonly known that the legal basis for employment relationship remains a contract of employment. But with the advent of statutory provisions and strategies for collective bargaining, the effect of a contract of employment is slowly eroding, and equality of bargaining power is being recognized. Though the relationship of an employee and employer under a contract of employment is founded in power and subordination, employment relations is emerging from its various narrow confines of seeing employees only as an economic commodity programmed to increase productivity and enhancing profit for the enterprise, to a greater supportive approach in which the focus is more on building a broad based commitment between the employer and the employee through a new participative culture and a more democratic industrial society philosophy.

Fifthly, at present, phenomenal changes are taking place in the existing modes of labour market in Mauritius. The country is undergoing through global pressures as well as internally induced structural economic and political reforms that are having profound effects on national policies and in turn on employment relations. The Employment Relations Act 2019 and the Workers’ Rights Act 2019 are instances of concerted attempts to bring reforms in employment relations thereby envisioning futuristic labour market institutions in the form of, among many, the National Tripartite Council, commission for Conciliation and Mediation and the National Remuneration Board which as a tripartite forum, empower the state, the employers and the employees integrally to promote effective consultation, negotiation, facilitation and co-operation to resolve labour disputes. What are then the new challenges facing employment relations in Mauritius?

Due to prevailing dynamic labour market in Mauritius, employment relations has become vital for the promotion of social justice and economic development. Social dialogue and social partnership have become the central features of the new Mauritian employment and industrial relations system which are based on 1. Recognising the democratic rights of the workers, trade unions and employers; 2. Building a productive employment relationship through the promotion of good faith behaviour and mutual trust in all aspect of work relations; 3. Promoting collective bargaining; 4. Encouraging the dispute and conflict settlement mechanism. From the above modern perspectives, the tripartite institutions have to look at employment and individual relations in Mauritius, not as an exclusive segment of activity in the economic, social and political organisation. They have to, in fact, improve on the employees/employers relationship which is an important phenomenon in the fabric of our highly complex and dynamic industrial society. Therefore, the challenge of the institutions, borne out of imperatives of socio-economic conditions, have to widen their focus on organizational issues, labour conflicts and values enhancing good human relations between employers, workers and trade unions which have become a new standardised norm to the necessary conditions of harmonious employment relations at the workplace.

As these challenges are ever increasing, institutions have to align themselves with the Economic and Social Policy of the International Labour Organisation (ILO) which underpins the shift away from an adversarial to a more consensus-based employment relations. The ILO policy as its governing principle: “actively promoting tripartite dialogue and involvement of social partners in the design and implementation of structural adjustment programmes and policies with a view to achieving social consensus, while working to strengthen the capacity of worker’ and employers’ organizations to play an effective role in structural adjustment activities.” To measure up with the ILO’s policy statement in structural adjustment, it needs a reorganisation in focus, structure and processes to achieve the following:

Conflict to be regarded as natural in employment relationships, and it is to be best managed through centralized negotiations between the employer and employees/ trade unions. Relationships between the employers and employee/trade unions are to be institutionalised in tripartite structures and a strong interdependence among all the parties has to be acknowledged.

Encourage consensus building as opposed to adversarial relations. Through centralised negotiations, avoid the potential for numerous destructive conflicts in the workplace.

Devise mechanisms to build a less strike-proned industrial society. Encourage parties to reach agreements which not only satisfy the immediate needs of their own constituencies, but also to take into account the needs of the broader society.

A Final Remark and a Point of Reflection To enable the parties to understand the quality of employment relations that prevails between them, the Code of Practice of the Employment Relations Act, provokes the Employer/Management and the employee/Unions to address the question as to whether:

1.

2.

They are engaged constructively and committed to develop the necessary conditions conducive to harmonious employment relations at work? They are addressing employment relations and human resources management issues in a spirit of openness, trust, honesty, mutual respect and understanding?

3.

4.

They are adopting the right mindset to address conflict with a view to reaching a win-win situation through compromise or consensus, wherever possible? They are ready to be recognised as social partners on the same footing?

The above questions will ever remain the modern perspective and new challenges of employment relations in Mauritius.