Labour Contracts Act (No. 12 of 1983)

The Labour Contracts Act, No. 12 of 1983 (Chapter 89:04) is a statute in Dominica that requires employers to issue a written contract for most employment relationships, sets out the essential contents of that contract, and establishes legal protections for both parties where no contract is drawn or where a contract is deficient. The Act was amended by Act 12 of 1990.

Objectives and Purpose

The Act’s main objectives are:

• Ensuring that employees receive clear, written terms of employment within a short time after starting work.
• Standardizing what a contract must include, such as wages, hours, leave, overtime, and notice.
• Protecting employees in cases where no contract is made or where a contract fails to cover the legally required terms, by applying a default schedule of conditions.
• Harmonizing contractual rights with collective (industrial) agreements where a trade union is recognized.

The law reduces reliance on oral agreements, which are often ambiguous, and establishes a baseline for fairness in employment.

Scope, Application, and Exemptions

The Act does not apply to:

• The State (public service).
• Workers covered by a recognized trade union under a collective/industrial agreement, unless a contract term is more favorable.
• Employees working fewer than 21 hours per week.
• Short-term employment of two weeks or less.
• Persons employed before the Act’s commencement for continuity reasons.
• Re-engagements after breaks of less than six months under certain conditions.
• Domestic home assistants and agricultural workers in specific cases.
• Close family members employed in family businesses.

These exemptions reflect the existence of other laws or special arrangements that regulate such employment.

Key Provisions

Employers must prepare and deliver a written contract within 14 days of an employee starting work. The contract must then be signed by both parties within three days, and the employee must receive a signed copy.

• Timing and Delivery of the Contract
  Employers must prepare the written contract within 14 days of the employee starting work. It must then be delivered to the employee for review, signed by both parties within three days, and a signed copy given to the employee.
• Contents of the Contract. Each contract must contain, at minimum:
  • Names of employee and employer.
  • Start date or expected start date.
  • Wage or method to calculate pay.
  • Pay intervals (not exceeding one month).
  • Probation period (if any).
  • Normal working hours.
  • Overtime pay rate.
  • Annual leave entitlement and pay during leave.
  • Sick leave entitlement and pay.
  • Notice period for termination.
  • Maternity leave entitlement and pay (for female employees).
    If a particular entitlement does not apply to the employee, the contract must expressly state that the employee is not entitled to it. Where a collective agreement exists, it prevails unless the contract provides more favorable terms.
  • Capacity and Consent
    Persons aged 18 and over have full capacity to enter into contracts. Those under 18 require written consent from a parent, guardian, or the Labour Commissioner. Minors are still entitled to enforce their contractual rights, including wages and benefits.
  • Amendments
    Contracts may be amended at any time by mutual agreement of the employer and employee.
  • Default Terms and Schedule
    If no contract is provided, or if specific terms are missing, the Act’s Schedule applies as a fallback, ensuring employees are still entitled to minimum standards.
  • Offences and Penalties
    Employers who fail to comply with the Act (such as not preparing a contract or omitting required terms) can face fines upon summary conviction.

Interaction with Other Labour Laws

• The Labour Standards Act establishes minimum rights on wages, hours, leave, and maternity protection. The Labour Contracts Act cannot override those rights.
• The Industrial Relations Act governs union recognition and collective bargaining. Where collective agreements exist, they take precedence except where the individual contract is more favorable.
• The Protection of Employment Act regulates termination, layoffs, and redundancy, and its provisions must be reflected in the contract terms.

Application and Significance

The Act is central in formalizing employment in Dominica, especially where informal or oral arrangements dominate. By mandating written contracts, it improves transparency, reduces disputes, and ensures enforceability of basic rights. The fallback Schedule protects employees even when employers fail to comply fully with the law.

It applies broadly to full-time employees outside unionized or short-term categories and strengthens the enforcement capacity of the Labour Division. The Act also aligns Dominica’s labour standards with international norms, helping protect workers in both local and foreign employment contexts.