BTL Severance Case Triggers Labour Department Review

The Ministry of Labour is reviewing a recent ruling by the Caribbean Court of Justice (CCJ) that could reshape how severance and pension obligations are handled in Belize. 

The court ruled that severance is a legal right, not something employers can waive in contracts or replace with pension benefits. The case involved ten retirees from Belize Telemedia Limited (BTL), some of whom were forced out at age 55, while others opted for early retirement. Despite receiving pensions, they argued they were still entitled to severance pay under Belize’s Labour Act.

Valentino Shal, CEO in the Ministry of Labour, described the ruling as “groundbreaking” and confirmed that internal discussions are underway to assess its implications. “This morning I briefly discussed it with the Labour Commissioner,” Shal said. “It’s very significant, and we are at this moment reviewing it.”

Issued on Wednesday, the ruling may set a precedent for how employers transition from severance schemes to pension plans. Shal noted that the ministry must first determine whether the decision affects public and private sectors differently.

“We need to carefully examine the ruling and the implications,” he said. “It’s very important that we acknowledge it, and we respect the ruling. And of course, begin to ensure that there is compliance.”

Asked whether the Labour Department would hold Belize Telemedia Limited accountable under the law, Shal did not comment directly but reiterated that the ministry’s priority is to understand the ruling fully before taking further steps.