News and Insights

The “Barriers to Business” report prepared by Jersey Business in 2023 described “a lack of collaboration, complex bureaucracy, and unclear strategies” as “hindering Jersey's competitiveness”.  

By anyone’s standards, employers have numerous hurdles to jump. Most of these may be essential in a modern economy if there is to be a fair balance of rights and obligations of employers and employees.

Statutory breaches may be impossible to defend

Statutory requirements, such as those mandating that employees receive written terms of employment and itemised payslips, are necessary if the employment relationship is to function properly.  

The Jersey Employment and Discrimination Tribunal’s Annual Report for 2022 noted that 100% of claims in respect of breaches of these requirements had been successful in that year.

This pattern is reflected in 2023 Tribunal decisions such as Cope v Kemp T/A Happy Hooves. The employer, Happy Hooves, argued that Ms Cope had never been an employee. Had that been the case the requirements of the Employment (Jersey) Law 2003 would not have applied and Ms Cope would not have been entitled to a written employment contract, holiday pay, or payslips. However the defence failed and Ms Cope was awarded compensation for her employer’s statutory breaches.  

Review of compensation 

The compensation that can be awarded by the Tribunal to an employee for an employer’s failure to provide a compliant employment contract or timely payslips is currently up to 4 weeks’ pay. (The Tribunal does not always award the maximum: often it will make a smaller award, depending on the circumstances and mitigating factors.)

In December 2023 and January 2024 the Employment Forum conducted a review of the levels of compensation available. Penalties could be increased, perhaps by doubling the current maximum award in this type of claim or by allowing the Tribunal to make an enhanced award where there are aggravating features.  

Regardless of the conclusions reached in the “Barriers to Business” report, it seems very unlikely that penalties for statutory breaches will go down. In any event, legislative compliance is at the heart of good governance and should be championed.

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