BTL Says CCJ Severance Judgment Fully Paid as 500 More Claims Reviewed

Belize Telemedia Limited (BTL) is reporting a major development in the long-running severance dispute, announcing that full severance payments have already been made to several former employees, while an estimated five hundred additional claims are currently under review.  The update was delivered during a press conference held this morning at the company’s headquarters on St. Thomas Street. Seated at the head table were HR Officer Kendra Santos, Legal Counsel Kileru Awich, and Chief Financial Officer Ian Cleverly.  In his opening remarks, Awich confirmed that BTL has fully satisfied the judgment handed down by the Caribbean Court of Justice in the matter of Ervin Marin et al versus Belize Telemedia Limited. The company’s official statement dated February 26 further affirms that all sums awarded by the CCJ to the appellants have been paid and that severance payments have been issued to former employees who meet the criteria under Section 183 of the Labour Act.  Awich explained that to qualify, former employees must have completed five or more years of continuous employment prior to termination for reasons other than dismissal. He also acknowledged the significant level of interest from former workers now submitting claims.

Kilaru Awich, Internal Legal Counsel, BTL: “We are currently assessing over 500 employees and you have to appreciate that BTL gets requests almost every day and so the numbers are dynamic. And we’re doing our best to process them as quickly as they come. And now people who have worked, now former employees who have worked for us and who left more than six years prior know from this press release what is required of them to get their matter processed by BTL and reviewed and processed by BTL. The final figure will be determined once we once as the process completes itself. Let me put it that way.”

Reporter: But currently where are you? 

Kilaru Awich, Internal Legal Counsel, BTL: “Well I can say it’s a significant. That is what I could say at most.”

During the question-and-answer segment, Awich was pressed on whether BTL’s decision to advance payments was influenced by public pressure or direction from central government.

Kilaru Awich, Internal Legal Counsel, BTL: “We have to remember that BTL is managed by its board of directors. Our board of directors know and understand their fiduciary duties, which include acting in the best interest of the company and the board in its wisdom decided that notwithstanding the limitation period, and even though BTL is not admitting liability, it is in the best interest of the company to settle these severance payments to our former employees who left more than six years prior because these former employees help build this company and make it what it is today. And the company is in a position where it is able to pay these severance payments even though the company is not admitting any liability and even though the limitation period applies. And the company values its position as a good corporate citizen. And if the company is able to meet these payments the company has decided to pay these severance payments to our former employees. So to answer your question Marisol, it is not because of pressure from external sources, whether it is from the government or whether it is from demonstrations or from the media the board took an independent decision which was based on what is in the best interest of the company. And you also have to appreciate that it is in the best interest of these former BTL employees because they won’t have to spend money to go to court and pay lawyers. BTL is going to honor these severance payments once our former employees who left more than six years prior meet the criteria in section 183 of the Labor Act.”

HR Officer Kendra Santos also addressed concerns raised by former employees regarding deductions from severance packages, particularly taxes withheld from payouts.

Kendra Santos, Chief Human Resource Officer, BTL: “BTL would have withheld taxes based on previous advices from the Belize Tax Services. I think everyone can appreciate that the call for an assessment or reassessment of how the taxes should be treated, and BTL has certainly asked, I know BCWJ attorneys, many have asked. And so I think based on where we are at this point in time, the tax services had to engage their own legal advice and has now come to a position in light of the CCJ judgment as to how those taxes should actually be treated. So we have met with them. They consequently sent us the letter that you referred to and we are very clear and guided by what they have said should be done and we have all intentions to arrange a refund for all of those persons as per the letter or those instances as per the letter that they have said taxes should not be withheld from interest for any reason and taxes should not be withheld from those who effectively lost office. So basically what they’re saying is depending on how you exit they will recognize it as a gain from employment or a loss of office. So if you had resigned or you had voluntarily exited a company that’s tantamount to resignation and therefore the taxes would be withheld. If you were terminated without cause, if you retired because the CCJ judgment recognizes the retirees as termination, they are saying in those two instances then you should not tax. So where BTL had initially taxed we have all intentions to arrange the refund and process it in very short order so that persons could get back their monies.”