The Gibraltar Chamber of Commerce has begun consultations with employment lawyers in order to update the employment legislation. The Chamber of Commerce plans to modernize the Employment Law in a way that makes Gibraltar more attractive to foreign investors and to provide security to employees.
In light of the new Commercial Code renewal, the Chamber of Commerce decided it was time for the Employment Law to be amended also. The Employment Law in Gibraltar has been partially changed throughout the years and has adopted many of the UK employment legislation provisions which advantaged employees. However, Gibraltar companies often faced the same expenses as UK companies without the benefits. The Chamber of Commerce decided the scales should be balanced between UK practices applied for the benefit of the employees and the improvement of their own productivity, thus reducing the pressure put on companies in Gibraltar.
The results of the review were drafted in the Agenda for Change in Employment Legislation which was published at the beginning of the year. The Agenda aims to update the most relevant areas of employment, but also to offer security to employers in all industries in Gibraltar.
The Chamber of Commerce’s Agenda is based on five main principles: to create security for Gibraltar employers and employees and to clarify all uncertainties in the legislation, to enhance the minimum employment standards, to grant more flexibility to both employers and employees, to increase the levels of respect between employers and employees and one of the most important guidelines is to create a competitive environment in order to attract investors to open companies in Gibraltar. According to the Chamber of Commerce the unified goal of all principles is to create a harmonized employment legislation advantaging both employers and employees.
Among the key-subjects on the Agenda are sick pay, redundancy payments, retirement benefits, insolvency procedures and the Industrial Tribunal involved in trying employment matters. The Chamber of Commerce is hoping to send a message to the private sector “that the right business environment is there in Gibraltar for businesses to prosper”.
You can find out more about the final form of the employment legislation from our specialists in company formation in Gibraltar.