BTL to Pay Interest on Severance Claims Despite Limitation Period

One of the major sticking points remains the calculation of interest on severance payments, with many former workers arguing that rising living costs should be factored into the final sums. BTL maintains that the interest being applied strictly follows the CCJ ruling.

Kilaru Awich, Internal Legal Counsel, BTL: “This matter of severance has evolved significantly between November and February. The company’s initial position was we are going to satisfy severance obligations for those who are within the six-year limitation period. And if you are outside of the six-year limitation period, the company would not voluntarily pay any severance. Now, the 6% that was paid to those former employees who left within six years, that 6% was arrived at because the company at that point was not contemplating paying beyond the six years. Now, you have to appreciate that the company’s position has changed since then, and the company is now going to pay severance payments to those former employees who left more than six years prior. So the considerations are now very different in terms of interest because the company has agreed to settle obligations which it has been advised. I also need to add that interest is not as of right. This interest which litigants get comes from statute from the Senior Courts Act and you have to plead it. And you plead it in your claim at the court and you succeed in your claim and the court determines your interest under that provision of the Senior Courts Act. So the company paying interest now is actually the company paying beyond what it is required to pay because these matters have not gone to court. Only the matter of Irvin Marin and his fellow litigants went to court. Interest is going to be awarded, right? I need to make it clear. It’s not that BTL is saying “you former BTL employee you left more than six years prior. I’m only going to pay seven payments and no interest.” No. The company has committed to pay severance payments and interest to former employees who left more than six years prior at 6% from the date of CCJ judgment to date of payment.”

BTL says it remains committed to a fair and lawful resolution and has invited former employees who believe they qualify under Section 183 of the Labour Act to submit their information for review.  Love News has been informed that the BCWJ will proceed with a protest tomorrow at the home of BTL’s CEO Mark Lizarraga