BREAKING: CCJ Rules in Favour of Former BTL Employees

In a landmark ruling, the Caribbean Court of Justice (CCJ) has sided with ten former employees of Belize Telemedia Limited (BTL), affirming their entitlement to severance pay under the Belize Labour Act. This decision overturns a prior ruling by the Belize Court of Appeal and represents a significant advancement for workers’ rights in Belize. The appellants, including Erven Marin, Lorna Longsworth, and eight others, contended that despite receiving pensions, they were still eligible for severance payments upon their retirement from BTL, whether mandatory at age 55 under a Collective Bargaining Agreement (CBA) or voluntary under individual agreements. The CCJ, presided over by Justice Eboe-Osuji, adopted a purposive and social justice approach in interpreting Section 183 of the Labour Act. The Court determined that both mandatory and voluntary retirees qualify for severance, emphasizing that the purpose of severance pay is to alleviate financial hardship after years of service, not to penalize employees for the manner in which their employment concluded. Justice Eboe-Osuji found that BTL failed to demonstrate that severance had been accounted for in its pension plan, which involved equal contributions from employer and employee. The Court stated that under Section 194 of the Labour Act, a pension plan cannot supplant severance obligations unless severance is explicitly included in the benefits. Justice Jamadar further asserted that the Labour Act is ‘social justice legislation’ rooted in constitutional principles and international labour conventions that safeguard workers’ rights. He added that any agreement attempting to waive statutory severance, including CBAs or individual contracts, is void under Section 190 of the Act. The CCJ unanimously upheld the appeal, reinstating the High Court’s ruling that all appellants are entitled to severance payments. The Court ordered that payments be calculated based on the High Court’s formula and awarded costs to the former employees.