MSMEs urged to participate in performance assessments training for thirteenth month pay |14 October 2022
Small business enterprises lacking the resources to have human resource personnel or a dedicate department within the organisation are being invited to participate in a training programme on offer, to be able to carry out performance assessments.
The training course, offered by the Enterprise Seychelles Agency (Esa), in collaboration with The Guy Morel Institute (TGMI), is set to start soon, and seeks to equip owners, or representatives of micro, small and medium enterprises (MSMEs) with the relevant knowledge and skills to assess the performance of employees within the respective organisations, in time for the thirteenth month pay.
During a press briefing yesterday morning, executive director within the Ministry of Employment and Social Affairs, Veronique Bresson, and training coordinator within Esa, Evaline Joubert, noted that registration for the programme is to open within coming weeks, with the course costing R1100 per attendee.
“We are encouraging all small businesses to assist the training which will be beneficial towards their businesses. When assisting the course, they will have access to a number of consultants who can assist and guide them as to how to assess their employees within their respective businesses,” Ms Joubert noted.
In addition to the training, the department of Employment will in the coming months make available sensitisation materials, to ensure that both employers and employees are up to speed with the legal provisions for this year.
The Employment (Amendment) Act, 2022 which was approved by the National Assembly on October 5, make provisions for qualifying employees within the private sector to be paid the Thirteenth Month Pay for the year 2022, provided they have been in employment for a 12-month period, ending December 31, 2022.
President Wavel Ramkalawan assented to the Act on Wednesday October 12.
As per the law, employees are due 100 percent of the pay, excluding allowances, although the payment modality is different from previous years. Only Seychellois nationals covered by the Employment Act and whose salaries are under the R45,450 capping are eligible.
As explained by Ms Bresson, 50 percent of the pay is to be paid automatically, with the other 50 percent based on an appraisal or performance assessment of the employee. An employer is permitted to make deductions established under Section 46C of the principal Act, the Employment Act, if the employee has unauthorised absences, has been on overseas training for over 14 weeks or has been in police custody.
All authorised leave, including maternity, paternity, annual, compassionate and medical leave and others prescribed as an employee’s right are not to be considered or deducted from the pay. Should employers make reductions based on the 50 percent which is based on the employee’s performance, they are obligated to inform the employee by way of letter, of the final payment amount and reasons for marking the employee down.
In the absence of a performance evaluation system by December 31, or who have not made any effort to evaluate performance by January 31, 2023, will have to pay the full thirteenth, month salary, which equates a full basic salary.
The Act further provides for a tax exemption on thirteenth month pay for 2022, meaning that payments will be exempt under the Income and Non-Monetary Tax Act, also applicable in the event that employers voluntarily effect the payment to non-qualifying employees, that is, Seychellois employees earning less than R45,450, who have been in employment for less than twelve months.
The new performance based provisions seek to encourage employees to be more productive, while also motivating employers to reward those contributing towards the organisation’s progression.
As from 2023, the payment is to be fully based on performance.
Laura Pillay