Assembly approves Employment (Amendment) Bill 2023 |19 October 2023
The National Assembly yesterday approved the Employment (Amendment) Bill, 2023, which refers to legislative provisions on 13th month pay under the Employment Act (Cap 69) for the years 2023 to 2025.
After a one-day deliberation, 22 members from the ruling Linyon Demokratik Seselwa (LDS) voted in favour, while none voted against and 9 abstention was recorded from the opposition United Seychelles party.
The bill was presented earlier in the day by the employment minister, Patricia Francourt, following cabinet’s approval of the amendments in September.
These pertained to two new provisions – namely 13th month salary to people who start a new job late in the year but were still employed on December 31.
When explaining the first provision to the National Assembly, Minister Francourt said that an employee who starts work any month during the year and was still employed by December 31, will now be entitled a proportion of their 13th month salary based on the number of months employed.
The second provision targets employees whose salary is above the sum prescribed by law, which is R45,450, who do not qualify for the payment. Mrs Francourt stated that if the employer agrees to pay the benefit, the sum above R45,450 will be taxable.
She said the responsibility to inform employees of any deductions lies with the employers.
« An employer is obligated to provide in writing, to their employees, details of all deductions made on the 13th month salary,” she stressed.
Another new element being proposed caters for employees who resign before December 31.
« What we are proposing is that by 2024, I repeat, in 2024, a worker who leaves employment during the year, would also be entitled a proportion of the 13th month benefits and other final benefits. But proportion will be calculated only on the 50% which is mandatory,” explained Mrs Francourt.
This will only be applicable if the person did not leave on disciplinary grounds, was not on probation or failed the probation period.
It should be noted that the same payment system applied last year will be applicable for the appraisals for 2023, 2024 and 2025, meaning, 50% is mandatory and 50% is based on performance.
A long debate ensued following Minister Francourt’s statement. US members who intervened maintained their position that a 13th month salary should not be based on performance assessment but was rather a right after a whole year of working.
LDS members stressed the need for people to work hard, consistently and conscientiouslyfor them to benefit from this end of year payment.