Pennywise Ltd reverses unpaid lunch-hour decision

Pennywise Cosmetics Ltd will restore a paid lunch-hour and a 15-minute break for its workers who are on minimum wage, after the company reversed an earlier decision to remove these provisions.

A post on its Facebook page on Thursday said the company had reverted to the original terms and conditions of employment after members of the public raised queries.

"We wish to advise our valuable employees, and the concerned public, that we have decided to revert to the original terms and conditions as applicable.

"This decision has been made following advice from our industrial relations consultant as we seek to continue to comply with the provisions of the Minimum Wages Act and other applicable labour laws," Pennywise said in the post.

Earlier this week, Pennywise director Dr Shivum Paladee was reported in the media as saying that removing the provisions was to deal with having to pay an additional $3 per hour for some 400 of its employees, in keeping with the minimum-wage increase on January 1, from $17.50 to $20.50.

The move was widely discussed by members of the public across various social media platforms.

In an interview, industrial relations expert and Newsday's Business Day magazine columnist Diana Mahabir-Wyatt said the original decision was wrong.

She said if workers were employed under a system that allows payment during their lunch and also a 15-minute break, such terms could not be unilaterally changed.

"If you are hired, and the employment conditions include payment for eight hours of the day, and that is inclusive of the entire eight hours, then you are being paid for your lunch and your breaks as well. This can't be changed according to law unless the person (who stands to be affected) agrees," Mahabir-Wyatt said.

She added that the Minimum Wage Order (2014) specifically prohibited any employer from adjusting the terms and conditions of employment because of a rate increase.

Section nine of the order says: "This Order shall not be construed as authorising – (a) the reduction of wages paid to those employees who already receive wages in excess of the minimum wage; and (b) changes in the existing terms and conditions of any worker to effect a lowering of such terms and conditions."

Contacted on Thursday, Pennywise's CEO Dalvi Paladee asked for all questions to be sent to him by e-mail for a response.