GUIDE TO EMPLOYMENT LAW

IN MAURITIUS

CONTENTS
PREFACE
1. Introduction
2. The Non-Negotiable Elements
3. The Negotiable Elements
4. The New Features

1
2
2
8
10

PREFACE
This is the Second Edition of the Guide, which we have produced for the information of our clients
and professional colleagues. This edition takes account of changes that the National Assembly made
to the Employment Rights Act 2008 that came into force on 02 February 2009.
This Guide is divided into four parts: 1) Introduction;
Negotiable Elements; 4) The New Features.

2) The Non-Negotiable Elements;

3) The

This Guide is concerned primarily at providing general information for parties wishing to understand
the basic tenets of Mauritian employment law with particular emphasis on the changes brought to
the Employment Rights Act 2008 this year by the National Assembly.
In this regard the
Employment Rights Act is increasingly being transformed as the all-embracing code of our
employment laws.
It is anticipated that this Guide will not completely answer detailed questions which clients and their advisers
may have. The Guide is, therefore, designed as a starting-point for a more detailed and comprehensive
discussion of the issues, and should not be used as a substitute for professional advice. Whilst we have made
every effort to ensure the accuracy of the statements made herein, we accept no liability for any errors. In all
cases expert legal advice from a qualified practitioner of Mauritius law should be obtained. If any such
questions arise in relation to the contents, they may be addressed to any member of the team, using the
contact information provided at the end of this Guide.
Before proceeding with any matter discussed herein, persons are advised to consult their legal advisers.
Appleby
Mauritius
February 2015

applebyglobal.com

1.

INTRODUCTION
The Employment Rights Act 2008 (the Act) came into force on 02 February 2009. The Act was
introduced at a crucial time in the history of employment law in Mauritius in that until its advent the
laws of employment were governed predominantly by the Labour Act 1975 (the old law) and other
pieces of legislation that were not enabling in nature and in respect of which the old law was the
feeder piece of legislation.
Over the years it was felt that the changes that were made to the old law were not sufficiently
consonant with the needs of the modern employment environment in Mauritius that now accommodates
a substantial percentage of foreign workers at all levels of the work stratum.
While it cannot be said that in repealing the old law, the Act has revolutionised the existing employment
law structure in Mauritius, it is apposite to mention that it has achieved a two-fold result. First, the Act
has consolidated the old law and contracts of employment. Second, it has endorsed concepts that are
now accepted as intrinsic to most modern employment law rgimes. Accordingly, it has opened the
doors for the possibility to negotiate a well-defined group of elements forming the essence of the
contract of employment (under the old law the latter elements were well engraved in tablets of
stone).
The Act therefore marks the beginning of a new era in approach to the principles underpinning the
employment laws of Mauritius.
This year the National Assembly revised the Act. Among the amendments that were made to the Act
the enhanced role of trade unions in the employer-worker relationship is noteworthy. Furthermore, it is
a fact that the effectiveness of the changes made to the Act remains to be tested. Yet, the enhanced
role of trade unions is undoubtedly a welcome change to the employment scene that is more
accustomed to strained State/Union relations.

2.

THE NON-NEGOTIABLE ELEMENTS

2.1

Discrimination in Employment and Remuneration

As a novelty to our employment law, discrimination is expressly defined and prohibited under the Act.
Further, the definition is comprehensive and thus comprises different treatment to different workers
attributable wholly or mainly to their respective descriptions by age, race, colour, caste, creed, sex,
sexual orientation, HIV status, religion, political opinion, place of origin, national extraction or social
origin, which has the effect of nullifying or impairing equality of opportunity or treatment in
employment or occupation (see 4(5)(a) of the Act).

2.2

Equal Remuneration for Work of Equal Value

The Act imposes a positive duty on every employer to ensure that the remuneration of any worker
shall not be less favourable than that of another worker performing the same type of work (see 20
of the Act).
The Act has gone a step further than the old law as it has actually defined the term remuneration as
comprising all emoluments, in cash or in kind, earned by a worker under an agreement. It captures:
(a) any sum paid by the employer to a worker to cover expenses incurred in relation to the special
nature of his work; (b) any money to be paid to a job contractor, for work, by the person employing
the job contractor; and (c) any money due as a share of profits (see 2 of the Act).

2.3

Maternity Benefits
A female worker is entitled to 12 weeks maternity leave on full pay provided, for the purposes of
payment, she has been in the continuous employment of the employer for a period of 12 consecutive

applebyglobal.com

months immediately preceding the beginning of leave and she has produced a medical certificate(see
30 of the Act).
Under the Act, maternity leave may be taken either before or after confinement. If it is to be taken
before confinement, at least six weeks maternity leave shall be taken immediately following the
confinement (see 30(1) of the Act). Furthermore, a female worker who gives birth and reckons 12
consecutive months of employment with the same worker shall be paid an allowance set out in the Act
within a period of seven days of her confinement (see 30(1A) of the Act). Currently the quantum of
this allowance stands to the order of MUR 3,000 [USD 100] (see Third Schedule of the Act).
Under the Act, a female worker who is in part-time employment will be entitled to be paid in accordance
with the formula set out under the Act, provided she fulfils the above requirements that apply to a (fulltime) female worker i.e. continuous employment and production of a medical certificate.
It is to be noted that under the Act a female worker who fails the requirement to be in 12 months
continuous employment prior to leave is still entitled to maternity leave, but she is not entitled to pay.
The Act goes further than the old law as it covers for the loophole under the old law as regards the
entitlement to maternity leave where the new born is stillborn or the female worker suffers a
miscarriage. Thus, where the female worker who fulfils the test for continuous employment gives birth
to a stillborn child, she is entitled to a maximum of 12 weeks leave. The only condition precedent to
her entitlement is that she must produce a medical certificate confirming the need for leave. In the
event of a miscarriage that is duly certified by a medical practitioner the female worker is entitled to
two weeks leave on full pay immediately after the miscarriage.
2.4

Paternity Leave
The Act legitimates the rights of a father of a new born child to take five continuous days off work
following the birth of his child (see 31 of the Act). Under the old law, this could be achieved by
applying for local leaves; however, in this respect, the Act is innovative as it enhances the image of a
father within the family unit but it retains a conservative aspect in that common law fathers are
disentitled to paternity leave under the Act.
In order to be granted paternity leave, the following conditions must be satisfied by the father: first,
the father must produce a medical certificate to confirm the birth of the new born child by his spouse;
and second, he must produce a written statement signed by him to the effect that he is living with his
spouse under a common roof. Pursuant to the Act, paternity leave must begin within one week from
the birth of the child and will be on full pay provided the father has been in continuous employment
with the same employer for a period of at least 12 months prior to the date of birth of the child.
Under the Act the meaning of spouse is limited to marriage whether religious or civil (see 31(3) of
the Act). Thus, a common law husband cannot avail himself of paternity leave under the Act.

2.5

Termination of Agreement
(a)

Requirement to Issue a Notice of Termination

Under the old law, an employer who intended to terminate the employment of a worker who had
reckoned a year or more continuous service with the employer had defined time-frames during
which the employer had to notify a worker of his intention to terminate the workers contract.
The time-frame varied according to the number of years of service the worker reckoned with the
employer.
The Act, however, has created a standard procedure that applies to all employees, irrespective
of the time served with their employer. The governing provision in the Act is that an employer
must give a worker 30 days notice of his intention to terminate the contract of employment
(see 37(4) of the Act), or within any [longer] reasonable time (see 37(3) of the Act). The

applebyglobal.com

notice period provided in the Act is subject, however, to any provision in the contract of
employment. Notice may be in verbal or written form.
(b)

Payment in Lieu of Notice

The Act has maintained the rights under the old law by which an employer is authorised to pay
to the worker a sum that represents the remuneration that the worker would have been paid
had s/he been in the employment of the employer during the period that constitutes the notice
period (see 37(5) of the Act).

(c)

Protection against Termination under Specific Circumstances

The Act sets out a number of instances which prevent termination of employment by reason of,
for example, race, colour, caste, political opinion or sexual orientation, absence during maternity
leave, absence through illness when accompanied by a medical certificate, membership to a
trade union or because of a complaint filed against the employer (see 38(1) of the Act for a full
list of prohibited reasons for termination).

(d)

Rights of Worker under a Notice of Termination

An employer, having issued a worker with a notice of termination of employment must, on
satisfactory proof of a request, authorise a worker reasonable time-off in order to seek further
employment (see 39 of the Act).

2.6

Reduction of Workforce and/o r Closure of Business

See below under New Features at Section 4.

2.7

The Workfare Programme

The Government of Mauritius (the Government) introduced this feature to Mauritius to sustain levels
of employment and to improve quality of services and industry (see Part IX of the Act). Under the Act,
the Government will grant a Transition Unemployment Benefit to every worker whose agreement has
been terminated and who has joined the Workfare Programme, which will be paid for a minimum period
of one month and a maximum period of 12 months.
The rate at which such benefit will be paid is set out in the Thirteenth Schedule to the Act, and is
computed on the basis of the basic wage of the worker as follows:

90% of the basic wage for the first three months but not less than MUR 3,000 [USD 100];

60% of the basic wage for the next three months but not less than MUR 3,000 [USD 100]; and

30% of the basic wage for the remaining six months but not less than MUR 3,000 [USD 100].

Under the Act, in order that a worker joins the Workfare Programme the worker must satisfy two
criteria namely:

the worker must have been in the continuous employment of the employer for a period not less
than 180 days on a determinate agreement and the employer has terminated the agreement or
the agreement came to an end; and

the workers employment was terminated by the employer for the following reasons:

because of ill-treatment by the employer which entitled the worker to treat the
employment as terminated;

because the employer failed to pay to the worker the remuneration due under the
agreement with the worker which entitled the worker to treat the employment as
terminated;

for the reasons stated at section 38(1),(2) and (3) of the Act;

applebyglobal.com

for reasons of economic, technological or similar nature affecting the enterprise,

misconduct or poor performance;

without any justification

(see 42(1) of the Act).

Where a worker registers himself in the Workfare Programme, he must, within 14 days, opt for any of
the activities under section 41(2)(b) of the Act, namely, job placement, training and re-skilling or
starting up a small business. The Permanent Secretary of the Ministry responsible for the subject of
labour and employment relations (Permanent Secretary) has discretion to extend the deadline of 14
days to any such time limit that the Permanent Secretary may decide upon reasonable cause shown to
his satisfaction. The Act makes it mandatory for such a worker to inform the Permanent Secretary
within a period of 14 days of the activity that the worker has chosen in the form prescribed at the Fifth
Schedule of the Act (see 43(3) of the Act).
Upon registration by a worker to the Workfare Programme, the Permanent Secretary will then refer the
worker, as the case may be, to the Employment Service Ministry (for job placement), the Human
Resource Development Council (for training and re-skilling) or the Small Enterprises and Handicraft
Development Authority (for starting up small businesses).
The Act specifically provides for the financing of the Transition Unemployment Benefit from two
sources: first, from 1% contribution of the worker and the recycling fee in the National Savings Fund
account of the worker and any interests accrued thereon, to the level of 50% of the Transition
Unemployment Benefit; and second, from the Workfare Programme Fund to the level of 50% of the
Transition Unemployment Benefit (see Seventh Schedule of the Act).
The Act goes a step further in that it provides for the procedures to be followed once a worker has
become entitled to the Transition Unemployment Benefit. These are outlined below:

2.8

first, as soon as a worker becomes entitled to the Transition Unemployment Benefit he must
register himself with the Permanent Secretary within a period of 14 days of the date on which
the worker is informed that the Permanent Secretary has entered proceedings on behalf of the
worker before the Industrial Court (see 43(3A) of the Act) or such other time limit that the
Permanent Secretary has extended on reasonable cause shown to his satisfaction;

secondly, within a period of 14 days after registration above, the Permanent Secretary must
inform the Permanent Secretary of the Ministry responsible for the subject of social security of
the workers registration in the form prescribed at the Fourteenth Schedule of the Act (see
43(3B) of the Act);

thirdly, upon receipt of the notice of registration under the form prescribed at the Fourteenth
Schedule of the Act, the Permanent Secretary of the Ministry responsible for the subject of
social security shall pay the Transition Unemployment Benefit to the worker (see 43(4) of the
Act)

Compensation
That is the payment of severance allowance, recycling fee as defined and in the terms set out under
the Act, the payment of the gratuity fee upon retirement, the payment of the death grant, the issue of
the Certificate of Employment, the payment of gratuity to a worker under a fixed term employment
contract.
(a)

Severance Allowance
The computation of the figure varies according to the number of years of continuous service that
the worker reckons with the employer. However the Act is unequivocal as regards the figure to
be used for computation purposes namely the remuneration payable to a worker at the time of
termination of his or her agreement (see 46 of the Act).

applebyglobal.com

Thus, where the worker reckons continuous employment the computation is as follows (see
46(5) of the Act):

for every period of 12 months, the sum paid represents the equivalent of three months
remuneration for every period of 12 months of employment with the employer; and

for every period less than 12 months, the sum paid is 1/12 of the sum mentioned at (a)
above multiplied by the number of months during which the worker has been in the
continuous employment of the employer.

The Act permits an employer make certain deductions from the Severance Allowance payable to
a worker (see 48 of the Act). These are as follows:

any gratuity granted by the employer;

any contribution made to any fund or scheme by the employer; and

any recycling fee paid under the Act.

This year one of the noteworthy changes that the National Assembly brought to the Act
concerned the question of Severance Allowance. Thus for the first time in our employment laws
there is statutory recognition that Severance Allowance is not payable under certain
circumstances namely:

where a worker and an employer have entered into an agreement for a specified period
contemplated at section (5)(3A) of the Act and the agreement has come to an end.
Under section 5(3A) of the Act the foresaid agreement may relate to any of the
following:

a specified piece of work;

in replacement of another worker who is on approved leave or suspended from

work;

in respect of work and activity which are of a temporary, seasonal or short-term

nature;

for the purposes of providing training to the workforce;

for a specific training contact; or

in accordance with a specific scheme set up by the Government of Mauritius or a

statutory corporation.

a worker and an employer enter into one or more determinate agreements for a total
period of less than 24 continuous months in respect of a position of a permanent nature
and the agreement comes to an end; or

an employee (i.e. a person whose basic wage or salary is at a rate in excess of MUR
360,000 per annum [USD 12,000]) and an employer enter into a determinate agreement
which comes to an end,
(see 46(1A) of the Act).

Furthermore, it is now mandatory that for a worker who claims Severance Allowance under
section 46(1) of the Act to register himself with the Permanent Secretary within a period of 14
days of the termination of his employment or the expiry of his contract, as the case may be.
Thereafter, the Act casts a duty on the Permanent Secretary to enquire into the matter in order
to find an amicable settlement (see 46(2) of the Act).
(b)

Recycling Fee
See below at New Features at Section 4.

applebyglobal.com

(c)

Gratuity at Retirement
In well-defined circumstances the Act makes it mandatory on an employer to pay a gratuity to a
worker who has been in his or her continuous employment for 12 months or more. The
aforesaid gratuity is payable as a lump sum (see 49 of the Act).
The following are the three types of situations that are captured by this requirement to pay the
aforementioned gratuity:

where the worker has retired voluntarily at the age of 60;

where the worker has retied before the age of 60 on grounds of permanent incapacity to
perform his or her work that has been certified by a government medical practitioner. In
order that the worker becomes entitled to gratuity under this heading, the worker must
reckon not less than ten years continuous employment with the same employer; and

where the worker has retired at the request of the employer either on or after attaining
the retirement age.

The Act prescribes a formula for the computation of the lump sum and permits deductions to be
made from the lump sum due by the employer to his or her worker (see 49(2) & 49(3) of the
Act).
(d)

Payment of Death Grant

See below under New Features at Section 4.

(e)

Certificate of Employment
See below under New Features at Section 4.

(f)

Payment of Gratuity under a Fixed Loan Contract

The Act extends the payment of the aforesaid gratuity to a contractual worker where the worker
is employed on a contract of determinate duration that ends before 31 December of any year.
This entitlement prevails notwithstanding the terms of his contract or any relevant piece of
legislation, if any (see 53 of the Act).
Thus, gratuity is payable by the employer that represents 1/12 of the earnings of the worker in
a relevant year.
However in order that the worker is eligible, the worker must have performed a number of
normal days work equivalent to not less than 80% of the number of working days during his or
her employment in that year.

2.9

Violence at Work
The meaning of violence under the Act comprises an exhaustive set of circumstances that will
constitute violence at work whilst a worker is at work. Violence at work is an offence that attracts
both criminal and civil liabilities under the Act (see 54 of the Act).
The types of behaviour that are captured under the Act are set out below namely:

harassment (sexual or otherwise);

assault;

verbal abuse, swearing, insulting;

express the intention to cause harm;

bully or use threatening behaviour;

use aggressive gesture indicating intimidation, contempt or disdain; and

hinder (verbally or in the behaviour) a worker during the course of his work.

applebyglobal.com

It is apposite to mention that the legislator has actually expounded on the scope of sexual
harassment under the Act. The yardstick to assess whether there has been sexual harassment at work
is that of the reasonable man i.e. whether the circumstances are those wherein a reasonable man
would have foreseen that the worker would be humiliated, offended or intimidated where there was
either an unwelcome sexual advance or an unwelcome request for a sexual favour or there was an
unwelcome conduct of a sexual nature towards the worker (see 54(3) of the Act).
It is also worthy of note that the legislator has defined the term harassment namely any unwanted
conduct, verbal, non-verbal, visual, psychological or physical, based on age, disability, HIV status,
domestic circumstances, sex, sexual orientation, race, colour, language, religion, political, trade union
or other opinion or belief, national or social origin, association with a minority, birth or other status
that a reasonable person would have foreseen that a worker would be affected negatively in his dignity
(see 2 of the Act).
2.10

End of Year Bonus

See below under New Features at Section 4.

3.

THE NEGOTIABLE ELEMENTS

3.1

Normal Working Hours

The normal days work of a worker other than a part-time worker or a watch person consists of eight
hours daily or a maximum of 90 hours a day (see 14 of the Act).
The normal day may start on any day of the week, whether or not a public holiday.
The Act goes further and recognises as valid an agreement between an employer and a full-time worker
wherein the worker agrees to work over and above the normal eight hours rate and without any extra
remuneration for the excess hours but provided that the number of hours worked by a worker does not
exceed the maximum of 90 hours in a fortnight.

3.2

Overtime
The general principle is that a worker is to be given a 24 hour notice before s/he undertakes overtime
work (see 16 of the Act).
For the purposes of computation, overtime denotes work completed by a worker who has completed the
maximum number of 90 hours in a fortnight. The applicable rate for overtime hours per fortnight is 1.5
x normal rate.
In the event that the overtime hours are undertaken on Sundays or on public holidays the rate of
overtime is twice the hourly rate for every hour of overtime undertaken.

3.3

Public Holidays
A worker is entitled to a full days pay in respect of a public holiday, other than a Sunday, during which
s/he would not have had to work provided s/he reckons 12 months continuous employment with the
employer (see 17 of the Act).
The Act recognises as valid an agreement that declares that the remuneration comprises payment for
work on public holidays and for work in excess of the agreed hours of work. However, the Act requires
that such an agreement must state (a) the maximum number of public holidays and (b) the maximum
number of hours of overtime on a day not being a public holiday.

applebyglobal.com

3.4

Meal and Tea Breaks

An employer is required to provide to a worker (a) a daily meal break of one hour not later than four
consecutive hours of work and (b) a tea break of at least 20 minutes daily or two tea breaks of at least
ten minutes each daily. However these may be agreed otherwise by the employer and the worker (see
18 of the Act).

3.5

Meal Allowances
Under the Act a worker who remains at work after the normal working hours is now entitled to either an
adequate free meal or be paid a meal allowance specified at paragraph (a) of the Third Schedule of
the Act namely MUR 70 daily [USD 2] (see 19 of the Act).
It is to be noted that this employers duty will arise where the worker has worked either (a) for a period
of at least two hours and up to 18:00 hours or (b) for less than two hours but up to 19:00 hours.
A female worker is entitled to the payment of a maternity allowance in the order of MUR 3, 000 [USD
100].

3.6

Payment of Remuneration in Special Circumstances

In specific circumstances an employer is required to pay a worker a full days remuneration. First,
where the employer is unable to provide work to the worker. Second, where work has stopped after
the worker has worked for more than two hours because of climatic conditions, power failure or a
breakdown in machinery or appliances (see 24 of the Act).
However a worker will be entitled to only half a days remuneration where work has been stopped
before the worker has completed two hours or where the employer has taken the view that no work can
be performed owing to climatic conditions, power failure or breakdown in machinery or appliances.

3.7

Transport of Workers
An employer must refund bus fares to a worker where the distance between the workers place of
residence and place of work exceeds three kilometres (see 26 of the Act).
Furthermore, the Act casts a duty on an employer who provides a worker with a means of transport to
pay to the worker wages at the normal rate in respect of any waiting time that exceeds 45 minutes
after the worker has stopped work (see 26A of the Act).

3.8

Annual Leave (also called the Local Leave)

The Act has maintained the number of annual leaves available to a worker who reckons 12 months of
continuous service with the employer. Thus a worker is entitled to 20 days fully paid leave for each
period of 12 months. The computation of one days leave is made according to a formula set out in the
Act (see 27 of the Act).
Any unused Annual leaves in a period of 12 months are refunded, the latter being computed using the
formula prescribed under the Act for one full days pay.

3.9

Sick Leave
The Act has reduced the number of days under the old law. Thus a worker who reckons 12 months of
continuous service with an employer is now entitled to 15n days of sick leave instead of 21 days (see
28 of the Act).
However the novelty under the Act is that a worker is entitled to accumulate up to a maximum of 90
days of sick leave in a period of 12 months.

applebyglobal.com

4.

THE NEW FEATURES

The new features are set out below:

4.1

The Definition of worker

Under the Act a worker is a person whose wages does not exceed the sum of MUR 360, 000 annually
[USD 12, 000] (see 2 of the Act) and specifically excludes, among others, a person who reckons less
than 180 days of continuous employment with an employer as at the date of the termination of his
employment.
The phrase basic wage or salary is defined exhaustively under the Act as all the emoluments received
by the worker, excluding any bonus or overtime (see 40(a) of the Act).

4.2

The Definition of employer

The Act defines an employer as a person who employs a worker and is responsible for the payment of
remuneration to the worker (see 2 of the Act).

4.3

Written Particulars of Work Agreement

The Act casts a positive duty on every employer to provide every worker engaged for more than 30
consecutive working days with a written statement of particulars of employment in the form prescribed
under the Act or in such form in French or Creole as may be prescribed within 14 days of the
completion of 30 consecutive working days service. Furthermore, a copy of the written particulars
must be provided to the Permanent Secretary within a period of 30 days after the worker has
completed 30 consecutive working days service (see 8 of the Act).

4.4

Certificate of Employment
The Act imposes a duty on every employer who has terminated the employment of a worker or in
respect of a worker who has resigned from his employment to issue the worker with a Certificate of
Employment in the form prescribed under the Act. The delay for issuing the Certificate of Employment
is a period of seven days within the termination of employment (see 51 of the Act).

4.5

The recycling fee

Under the Act, a recycling fee is payable to a worker whose employment has been terminated by the
employer. The rate of the recycling fee is laid down by the Act (see the Eighth Schedule of the Act).
The recycling fee is to be paid not later than a period of 30 days from the date of termination of
employment. It is to be noted that the recycling fee is not paid directly to the worker but to the
National Pensions Fund (NPF) that is managed by the Government of Mauritius. Upon receipt of the
recycling fee the NPF is required under the Act to credit the same to another fund managed exclusively
by the Government of Mauritius (see 47 of the Act).
However no recycling fee is to be paid to the NPF in three specific set of circumstances namely:

where the employer is and the worker is employed or offered employment by the personal
representative or the heir of the deceased employer after the death of the employer;

the partnership that employed is dissolved and the worker is offered employment by the
member of the dissolved partnership or a new partnership forthwith after the dissolution of the
partnership;

a workers employment by a body corporate ceases on the dissolution of the body corporate and
the worker is offered employment by another corporate body pursuant to a scheme of
reconstruction forthwith after the dissolution of the body corporate;

the workers employment ceases on the disposal of the goodwill of the employer or of a
substantial part of the business of the employer in which the worker is employed and the worker

applebyglobal.com

10

is offered employment by the person who acquired the goodwill or business or part of the
business forthwith after the disposal of the goodwill.
4.6

Violence and Harassment at work

See above at Non-Negotiable Elements at Section 2.

4.7

Paternity Leave
See above at Non-Negotiable Elements at Section 2.

4.8

Death Grant
The Act provides that an employer shall pay a death grant of the order of MUR 3,500 [USD 117] to the
spouse of a worker who has passed away whilst in the employment of the employer and who reckons
12 months of continuous employment with the employer (see 50 of the Act). The Act provides that
this entitlement to a death grant is payable notwithstanding that the spouse is already in receipt of
benefits under the National Pensions Act or any other enactment (see 50 of the Act).
A spouse for these purposes means a person having contracted a religious or civil marriage with the
deceased worker and with whom the worker was living under a common roof at the time of the workers
death (see 49A(1) of the Act).
Under the Act, in order to claim the death grant the spouse must produce a written statement declaring
that s/he was living with the deceased worker under a common roof at the time of death. In the event
that the deceased worker does not have a spouse the death grant is payable to the person who
establishes that s/he met the funeral expenses of the deceased worker.
The Act goes a step further in that it provides that where there is no surviving spouse the employer
shall pay the death grant to the dependants of the deceased worker in equal proportion irrespective of
any benefits that the dependants may be entitled to under the National Pensions Act or any other
enactment.
A dependant for these purposes means any person who was living in the workers household and was
wholly or partly dependent in the earnings of the worker at the time of that workers death (see
49A(1) of the Act).

4.9

Workfare Programme
See above under Non-Negotiable Elements at Section 2.

4.10

The Employment Relations Tribunal

The Act validates the establishment of the Employment Relations Tribunal set up by another piece of
legislation namely the Employment Relations Act 2008. However it remains silent on the mode of
operation of the Employment Relations Tribunal (see 2 of the Act).

4.11

Reduction of Workforce/Closure of Enterprise

Section 39B of the Act is a new provision that addresses the direct result of an international economic
recession namely the reduction of workforce/closure of an enterprise. In order that the operation of
this section is triggered the following two conditions must be satisfied namely:

the employees in question fall within the scope of the definition of worker under the Act i.e.
earning a basic wage or salary not in excess of MUR 360,000 per annum [ USD 12,000]; and

whether the business enterprise comprises a minimum of 20 workers.

Once a business enterprise meets the above mentioned test, the following procedure is mandatory.

applebyglobal.com

11

a.

Employer to Provide Notice

an employer must provide written notice (the Notice) to the Permanent Secretary of the
Ministry of Labour, Industrial Relations and Employment (Permanent Secretary) of its
intention to reduce workforce or permanently close the Company;

the Notice must be sent at least 30 days before intended reduction or closure;

the Notice must provide a statement of the reasons for reduction of workforce or closure;

b.

Employer to Consult Trade Union

employer to consult trade union and must look into possible means of avoiding reduction or
closing down such as:

restrictions on recruitment;

retirement of workers who are beyond the retirement age:

reduction in overtime;

shorter working hours to cover temporary fluctuations in manpower needs;

providing training for other work within the same enterprise.

Where redundancy has become inevitable the employer must

establish the list of workers who are to be made redundant and the order of discharge on
the basis of the principle of last in first out; and

serve the written Notice to the Permanent Secretary.

An employer that reduces its workforce or closes down its enterprise without notifying the Permanent
Secretary and without prior consultation with the trade union must pay (i) a sum equivalent to 30 days
remuneration in lieu of notice and (ii) severance allowance according to the formula set out at E (a) and
(b) below.
a.

Employer to Agree on Compensation with Worker

Under the ERA an employer and his workers may agree on the payment of compensation by way
of settlement. Where such a settlement is reached, a worker shall not be entitled to join the
Workfare Programme under the ERA. Furthermore, the employer will not be required to pay
what is known as the Recycling Fee under the ERA.

Where there is no such agreement, the worker may either join the Workfare Programme under
the ERA or lodge a complaint with the Permanent Secretary within 14 days of the termination of
his employment. The employer must pay the recycling fee provided under the ERA. As regards
the worker, he is entitled to lodge a claim for severance allowance before the Industrial Court.

b.

Permanent Secretary to Inquire

Upon receipt of a complaint the Permanent Secretary will inquire into it in order to find an
amicable settlement, failing which the Permanent Secretary has two options.

Either, the Permanent Secretary he takes the view that the worker has a bona fide case
and this entitles the worker to join the Workfare Programme. Furthermore, in the event
that the worker has not lodged a claim for severance allowance before the Industrial
Court, the Permanent Secretary may also refer the matter before the Employment
Relations Tribunal (Tribunal);

Or, the Permanent Secretary takes the view that the worker does not have a bona fide
case and does not refer the matter before the Tribunal. The Permanent Secretary
informs the worker that he may join the Workfare Programme.

applebyglobal.com

12

c.

Role of Tribunal

Under the ERA once the Permanent Secretary has referred the matter before the Tribunal, the
latte must hear the case and give its ward within 30 days of the date of referral unless there are
exceptional circumstances that would justify a delay in delivering its award;

The Tribunal must decide whether the reduction of workforce or termination was justified or not.

If the Tribunal determines that the reduction of workforce was unjustified, it may order that the
worker be paid severance allowance using the following formula:

for every period of 12 months of continuous employment, a sum equivalent to three

months remuneration; and

for any additional period of less than 12 months, a sum equal to one-twelfth of the sum
calculated at (a) above multiplied by the number of months during which the worker has
been in continuous employment of the employer.

Furthermore, the Tribunal has the power to order that the worker be reinstated provided the
worker consents.

4.12

If the Tribunal determines that the closure is unjustified it may order that the worker be paid
severance allowance using the formula set out at E (a) and (b) above.

End of Year Bonus

In introducing the End of Year Bonus to the Act earlier this year the National Assembly formally
recognised this statutory entitlement as an integral part of the employment package. Indeed, this
entitlement was hitherto provided for by another piece of legislation namely the End of Year Gratuity
Act which was first introduced in our laws in 1976.
Thus, where a worker remains in continuous employment with the same employer in a year, the worker
shall be entitled at-the end of that year to a bonus equivalent to one-twelfth of his earnings for that
year (see 31A(1) of the Act).
In relation to workers who have taken up employment during the course of a year, the Act is to the
effect that such workers shall be entitled at the end of that year to a bonus equivalent to one-twelfth of
their earnings for that year provided two conditions are satisfied. First, the workers are still in the
employment of the employer as at 31 December of that year. Secondly, the workers have performed a
number of normal days work with their employer, equivalent to not less than 80% of the number of
working days during their employment in that year (see 31A(2) of the Act).
Insofar as the timing for payment of the End of Year Bonus is concerned, the Act is to the effect that a
sum amounting to 75% of the expected End of Year Bonus becomes payable to the worker not later
than five clear working days before 25 December of that year, and the remaining balance shall be paid
to the worker not later than on the last working day of the same year (see 31A(3) of the Act).
Finally, the Act expressly provides that in the computation of working days that a worker has worked
with the employer the following factors are to be taken into account namely:

a day on which is absent with the employers authorisation;

a day on which a worker reports for work but is not offered work by the employer;

a day on which a worker is absent on grounds of

illness after notification to the employer under section 28(4)(a) of the Act; or

injury arising out of and in the course of his employment.

applebyglobal.com

13

For more specific advice on employment law in Mauritius, we invite you to contact one of the following:
Mauritius
Malcolm Moller
Managing Partner, Mauritius and Seychelles
Corporate
+230 203 4301
[email protected]
Gilbert Noel
Partner
Corporate
+230 203 4302
[email protected]

For the convenience of clients in other time zones, a list of contacts available in each of our jurisdictions may be
found here.

This publication is for general guidance only and does not constitute definitive advice
Appleby Global Group Services Limited 2015

applebyglobal.com

14