In a landmark ruling on November 5, 2025, the Caribbean Court of Justice (CCJ) reinforced the rights of workers under Belize’s Labor Act, emphasizing that severance pay cannot be replaced by pension benefits. The case centered on Belize Telecommunications Limited (BTL), which had ceased paying severance to employees since 1994-95, arguing that its pension scheme fulfilled the obligation. The court, however, ruled that severance is a distinct entitlement earned through service, not contributions, and must be paid regardless of pension arrangements. This decision underscores the Labor Act’s role as social justice legislation aimed at protecting workers, not employers’ financial interests. BTL is now required to compensate affected employees, with costs awarded to the appellants. Eamon Courtenay, SC, a prominent attorney, highlighted that pension plans must account for severance benefits, ensuring workers receive both entitlements. This ruling sets a precedent for labor rights in Belize and reaffirms the importance of severance as a fundamental worker protection.