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JAM | Nov 3, 2022

New law means time needed to restructure security companies- Overton

Al Edwards

Al Edwards / Our Today

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Reading Time: 2 minutes

The landmark Marksman case that sees security guards now as employees rather than independent contractors means that many companies in that business will have to recalibrate their operations.

This unforeseen circumstance means that projections, budgets, capital and operational expenditures will have to be revised.

It also means that security companies will have to be paid in a timely fashion in order to do right by their employees.

This sentiment was shared by the Lieutenant Commander George Overton, president of the Jamaica Society for Industrial Security (JSIS), representing 28 security companies.

Lieutenant Commander George Overton, president of the Jamaica Society for Industrial Security.

His issued statement today read:

“There have been numerous conversations and articles in the public domain concerning the recent ruling by the Supreme Court of Jamaica, between Marksman Limited and the NHT as it relates to security guards and their re-classification as employees.

“The industry represented by the Jamaica Society for Industrial Security (JSIS) has been in dialogue with the various stakeholders, Government ministries and agencies as it relates to the timely implementation of the mandate of the ruling. To ensure that the transition does not result in the unnecessary hardship of the security officers and any further negative impact on all parties involved, negotiations will need to take place with the clients who utilise security services as the reclassification will require substantial funding, something that was never contemplated in the current rates being charged.

“Bearing this in mind the industry is asking for the public’s patience in order to allow the time needed to reorganise the structure of the various security companies to comply with the ruling. This we believe will result in a smoother transition for the security officers, clients, security companies, the Government and ultimately the nation going forward.”

The Supreme Court ruling has led to many security companies lobbying the Government to change the work week from 40 to 60 hours by way of an amendment to the Minimum Wage Act. This will allow their businesses to remain viable.

There is also a call for one regulatory body for the private sector industry.

The implementation of a retroactive measure would have seen Marksman facing a whopping J$806-million bill in outstanding contributions covering the years 2000 to 2016, in effect financially crippling the company.

The call for time and a consensual approach should give security companies operating in Jamaica the landing ground to adjust to the new landscape they now face.

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