{"id":215941,"date":"2024-11-11T04:00:00","date_gmt":"2024-11-11T08:00:00","guid":{"rendered":"https:\/\/antiguanewsroom.com\/?p=215941"},"modified":"2024-11-10T16:12:00","modified_gmt":"2024-11-10T20:12:00","slug":"amendment-coming-to-companies-act-pm-browne-says-the-company-that-owns-the-assets-must-be-responsible-for-severance","status":"publish","type":"post","link":"https:\/\/antiguanewsroom.com\/amendment-coming-to-companies-act-pm-browne-says-the-company-that-owns-the-assets-must-be-responsible-for-severance\/","title":{"rendered":"Amendment Coming To Companies Act, PM Browne says the company that owns the assets must be responsible for severance"},"content":{"rendered":"
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Browne Proposes Company Act Amendment to Safeguard Workers\u2019 Rights in Antigua\u2019s Hotel Industry<\/strong><\/p>

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Prime Minister Gaston Browne has voiced concerns over employment practices within Antigua\u2019s hospitality sector, specifically addressing what he describes as \u201clayered\u201d corporate structures that, he argues, expose hotel workers to financial vulnerability. <\/p>\n\n\n\n

Citing Sandals Resorts as a notable example, Browne explained that while companies like Andrew Holmes and Wreyberry Limited own the hotels and assets, a separate management company employs the workers\u2014creating a risk that could prevent workers from receiving severance or benefits in case of liquidation.<\/p>

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The Prime Minister said that the structure allows the asset-holding company to generate and receive revenue while the management company, which has limited assets, holds the employment contracts. <\/p>

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He cautioned that this setup jeopardizes workers\u2019 rights and noted that, in the event of financial hardship or liquidation, workers could face obstacles in securing severance, as the employing entity might lack the resources to fulfill its obligations.<\/p>\n\n\n\n

Speaking on his weekly radio program, Browne asserted that the Antigua Barbuda Workers\u2019 Union (ABWU) has not been sufficiently proactive on this issue, alleging that some union officials have become \u201ctoo political\u201d and have overlooked pressing labor rights concerns.<\/p>

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Browne claimed that certain union representatives have accepted benefits from hotels, including meals and other minor perks, which he argues compromises their ability to advocate fully for the workforce.<\/p>\n\n\n\n

He announced his intention to amend the Companies Act to ensure accountability and protect employees’ financial rights. Under the proposed change, companies that own primary assets and generate revenue\u2014rather than management entities\u2014would be directly responsible for severance payments and other employee entitlements, with these obligations becoming a priority charge on the property in case of liquidation.<\/p>

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He stated, “I’m committed to take this matter to the Cabinet\u2014not this week, as I’m going to be away next week\u2014and to amend the Companies Act to state very clearly that the companies that actually own the assets that generate the business activity\u2026 will be responsible for the severance, and that the severance will be a first charge on the property in the event of liquidation.”<\/p>

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\u201cThis is not about targeting any single hotel operator,\u201d Browne stated, adding that the law would apply equally across the sector.<\/p>\n\n\n\n

\u201cWe want to use examples like Sandals to show that such practices must end.”<\/p>\n\n\n\n

Browne further indicated his commitment to bring this issue to Cabinet for formal consideration after his return from an upcoming trip, reiterating his stance on protecting workers\u2019 rights in the hotel industry.<\/p>\n

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Browne Proposes Company Act Amendment to Safeguard Workers\u2019 Rights in Antigua\u2019s Hotel Industry Prime Minister Gaston Browne has voiced concerns over employment practices within Antigua\u2019s hospitality sector, specifically addressing what he describes as \u201clayered\u201d corporate structures that, he argues, expose hotel workers to financial vulnerability. Citing Sandals Resorts as a notable example, Browne explained that […]<\/p>\n","protected":false},"author":3,"featured_media":193235,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-215941","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\nAmendment Coming To Companies Act, PM Browne says the company that owns the assets must be responsible for severance - Antigua News Room<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/antiguanewsroom.com\/amendment-coming-to-companies-act-pm-browne-says-the-company-that-owns-the-assets-must-be-responsible-for-severance\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Amendment Coming To Companies Act, PM Browne says the company that owns the assets must be responsible for severance\" \/>\n<meta property=\"og:description\" content=\"Browne Proposes Company Act Amendment to Safeguard Workers\u2019 Rights in Antigua\u2019s Hotel Industry Prime Minister Gaston Browne has voiced concerns over employment practices within Antigua\u2019s hospitality sector, specifically addressing what he describes as \u201clayered\u201d corporate structures that, he argues, expose hotel workers to financial vulnerability. 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