Doing Business

January 30, 2012

World of Work: The Contract, a Cheap Labor and Low Binding

The use of contractors is commonplace in many sectors of the economy, including construction, agriculture, ICT, BPO and textiles, among others.

Contractors are, in terms of the employer, a way to use a cheap labor and low-binding, allowing them great flexibility in that it is the management of costs of labor.

500 contract will not be renewed. It is the decision of a large company in the construction industry after a joint venture between a local company and a foreign company. It is involved in construction of industrial projects, commercial, high-end hotel and leisure as well as in civil engineering and infrastructure works. In addition, in February, another major construction company to perform the Mauritian capital the same kind of exercise before resuming contracted some of the same contract a few weeks later as an employee of the company. 

Some foreign workers are not covered by the NPF

 As explained Reeaz Chuttoo, secretary of the Confederation of Workers in the private sector (PSAP), recruitment and non-renewal are 'on going' process. "Even if a collective agreement was signed in the construction contract giving one day's pay compensation for each month worked, the drama continues," said he. 

The scale is enormous. According Reeaz Chuttoo, 85% of staff employed in the construction industry are contract against more than 50% in agriculture, including sugar, 90% in the area of ICT / BPO and a little over 50% in the textile sector. 

Our interlocutor said that in textiles, the situation is even worse with the use of foreign workers who are not covered by the National Pension Fund (NPF) in the first two years.

In addition, says there, some companies do not report workers NPF not pay 6% of employer contributions. Contractors are thus not entitled to year-end bonus if they are not under-employment at December 31, according to law, no health insurance in case of accident as required by law not require employers to take out insurance for contractors.

Reeaz Chuttoo indicates that labour laws in Mauritius are among the poorest in the world and this has earned in Mauritius to be ranked first in Africa and eighth in the world the 'Ease of Doing Business'. "The job insecurity is the sine qua non for attracting foreign investment in the logic of market economy," he insists.


 

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