MAURITIUS Law and Practice Contributed by: Sameer Tegally, Sonia Xavier and Ashvan Luckraz, Venture Law
Redundancies The Act also provides for collective redundancies and employee representation during workforce reductions or enterprise closures. Employers intending to reduce the workforce or close down businesses must engage in negotiations with trade unions or workers’ repre - sentatives. Various measures, such as restrictions on recruitment and alternative employment options, are suggested to avoid layoffs. The Redundancy Board (the “Board”) is established to handle cases where no agreement is reached, with the authority to order reinstatement, severance allow - ances or other actions based on the circumstances. The Board, consisting of various representatives, plays a crucial role in making orders related to collec - tive redundancies and closures. It may also provide conciliation or mediation services to promote set - tlements, exploring options such as reinstatement, training or compensation. The Board’s decisions are enforceable, and the entire process, from notification to the completion of Board proceedings, is subject to specified timelines, which can be extended by mutual agreement. Collective bargaining and labour union arrangements are common in Mauritius, as the Constitution recog - nises employees’ right to representation at the trade union level. Union representatives play a vital role in negotiating employees’ rights, both within companies and with the government. They have the authority to represent employees in labour disputes with employ - ers and frequently assist in disciplinary committees. Additionally, they are significant stakeholders in nego - tiating annual salary compensation. In addition to the above, foreign investors have to apply for an OP (a combined work and residence per - mit which allows foreign nationals to work and reside in Mauritius) under the following options: • option 1: initial investment of USD50,000; • option 2: initial investment of USD100,000; and • option 3: innovative start-ups. Professional and young professionals may also apply for an occupation permit, subject to meeting the requirements.
Workers’ Rights Act 2019 (the “Act”) and the Employ - ment Relations Act 2008 (ERA) are the main governing laws. The Act specifically oversees the employment rela - tionships between workers and employers in Mauritius and defines a “worker” as someone whose monthly basic salary is MUR50,000 or less. Employers must provide every worker engaged for more than one month with a written statement of par - ticulars within 14 days of completing the first calendar month. The Act specifies crucial details to be included in employment contracts, encompassing: • the employer’s information; • the worker’s details; • the agreement’s commencement date; • place of work; In Mauritius, employment contracts may be for a determinate or indeterminate duration. Normal work - ing hours constitute a 45-hour week for most workers, with variations for those working five or six days. Flex - ibility in working arrangements is possible with mutual consent, allowing for a four-day work week. Termination of Employment Contracts For fixed-term contracts, termination occurs on the last day of the agreement. Employers can terminate contracts for poor performance or misconduct, giv - ing the employee an opportunity to respond within the statutory timeline. Employees may claim that their agreement has been terminated by their employer for • employment category; • remuneration details; • payment intervals; and • regular working hours. Working Hours
these reasons: • ill-treatment; • non-payment of remuneration; • failure to provide work; or • resignation under duress.
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