Dentons successfully persuades The Caribbean Court of Justice to remove the “lost wages” award under the Barbados Employment Rights Act 2012

On May 7, 2020 in a highly-anticipated remotely-delivered ruling, the Caribbean Court of Justice (CCJ) as the final court of appeal for Barbados and a number of Caribbean Community (CARICOM) member states, has defined the scheme of compensation under the Employment Rights Act 2012 (ERA), setting aside the “loss of wages” awards in all future Unfair Dismissal claims heard before the Employment Rights Tribunal (ERT) in Barbados. 

Dentons continues to set legal precedents in employment law in Barbados and the wider Caribbean.  This landmark ruling in an appeal brought by Chefette Restaurants Limited, the largest fast food chain in Barbados, will now govern all decisions relating to compensation removing the ability to award what has been seen as double compensation by the ERT.

In this first appeal regarding the ERA to the Caribbean Court of Justice (CCJ) the court addressed ten crucial arguments presented by Dentons’ litigation team, one of which lead to the amplification of the legal obligations of an employer under the ERA as it relates to employee dismissal proceedings. 

“This decision is monumental for labour law in Barbados," said Satcha Kissoon, Partner and Head of Litigation at Dentons Barbados.  "It is also a victory for our client, Chefette Restaurants Limited. The primary objective was to challenge the ability of the Tribunal to make outrageous awards, described by the CCJ as “strikingly large” which have the potential to cripple businesses.  The CCJ has ruled that the Employment Rights Act does not give the Tribunal any right to award an employee “lost wages” as they have been doing and so inflate compensation awards.  This decision has reduced the award in this case by a significant 62% which demonstrates how onerous the Tribunal’s actions have been to employers.  The Court has also provided clarity on procedures at the Tribunal, both in terms of the order of leading evidence and the ability to cross examine the parties, which the Tribunal had got manifestly wrong.  This appeal was very necessary and the outcome will be much welcomed by employers.” 

Kissoon and his regional litigation team continue to redefine laws and set the gold-standard in the industry representing some of the largest employers and multi-nationals operating in the Caribbean.

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