Employers should take personal and institutional responsibility for their actions

It is against the Labour Code of Rwanda for an employer not to pay an employee for their services. Employers are required to pay employees regularly, and in according to any agreement: verbal or written. The incentive not to pay is mainly greed and self-aggrandizement. It means that the value of the employee’s services has been reduced to the mathematical value of null – the meaning of nothing. This is legally and morally wrong. “There is nothing better for a person than that he should eat and drink and find enjoyment in his toil” Ecclesiastes 2:24 The end-of-month salary responsibility is not an unexpected manifestation as it is perceived by many employers, given that their employees have been at work for extended durations of days and nights, months and years, including long weekend hours and during public holidays, often without financial compensation as accorded by law. Some employers, as in dystopian science fiction novel by English writer H. G. Wells, awake from a pay day slumber and but choose to remain silent when salaries are due – no explanations or communications on the matter. Invariably, morale and productivity suffer. Employers often use the conspiracy of silence to buffer any employee complaints. This is often done in collusion with the Finance Department, specifically the payroll staff. It is not uncommon that unpaid staff members to endure in silence. The neglectful employer shall permit rumours to circulate and fester – a practice refined from experience. In some toxic environments, that I have personally experienced, the employer engaged in blaming the situation on a lack of productivity by the staff. Other tactics used include declaring perpetual internship for some staff to avoid tax liabilities or salaries, claiming that work experience is more valuable than money. Only the brave and equally curious employees will summon the courage to sheepishly ask the Finance department about their end of month dues. This can be a risky undertaking because word may get back to the boss that someone is ungrateful for the job opportunity and is asking the wrong questions; there can be repercussions and the fear of termination looms - another refined practice. I have attended one meeting where the same employer openly declared that unpaid employees should obtain a bank loan to resolve their financial needs and they should find innovative ways of improving the company’s revenues rather than complain; this arrogant behaviour provides a porous defence, implying negligence on the part of employees but does not absolve the legal responsibility for unpaid salaries nor does it fail to reflect on the competence of the employer to run a business profitably. But another unique approach was used to placate the “dissatisfied” and this strategy had a short-lived existence but soon joined the litany of broken promises. During the euphoria of the annual staff Christmas party at the same company mentioned above where generous amounts of alcohol was abundantly available, a well-timed announcement was made: that the entire staff will enjoy a well-deserved increment in recognition of their dedicated efforts. Although the commitment still remains unfulfilled, it did lift the spirits temporarily, no pun intended, and is currently discussed in an ongoing labour dispute to resolve the matter of unpaid salary arrears. As the painful silence of unpaid staff continues, the financial pressures from the landlord and the needs of a dependent family take their toll. If there’s an unpaid bank loan, despair sets in as the Credit Reference Bureau (CRB) has been notified of another Non-Performing Loan. The working environment becomes the last place of choice to be. The employer remains indifferent and even becomes hostile and begins to implement stricter policies on absenteeism and attendance. Under the current labour legislation, the parties must, by law, attempt “settle the matter amicably”. But any desire of amicability evaporated a long time ago. Are the services of the employee, currently valued at zero really up for amicable negotiations? I submit that the freedom to exercise this legal right of “amicable settlement” is curtailed while under the contract of employment and many victims do not have wherewithal to do so while under the fear of dismissal and employers exploit this vulnerability. A termination letter, with justifiable clauses, can be quickly delivered as a lesson to others. The failure to pay employees’ salaries has a pervasive effect and although concealed, has a devastating impact in other areas: notably, the growth of the economy and the quality retirement all citizens who make sacrifices in their working years to ensure comfort and financial independence in the golden years. Employers who fail to pay salaries also fail to pay employer and employee contributions and this undermine the Pension Scheme for all contributors. One RSSB manager said that it shortens the lifespan of the pensioner. The delinquent employer now has a role in the mortality of the former employee. Rwanda’s tax-to-GDP contributes to an increase in the country’s position in the World Bank’s Ease of Doing Business index, particularly in the area of paying taxes. Employers who abdicate their domestic tax responsibilities diminish Rwanda’s position on the global financial landscape. Unfortunately, paid employment is considered a privilege by many employers in the private sector. They convincingly justify their callous actions by explaining they are reducing the unemployment rate and doing a social good. Employers have a number of self-justified explanations but nonetheless, employees must be compensated for their services, taxes and pensions must be paid. The Labour Department relies on employees to step forward and present their cases. There are other state institutions involved in this discussion - the Rwanda Revenue Authority and the Rwanda Social Security Board - whose mandates are directly challenged by delinquent defiant employers. In spite of their best efforts, these institutions can improve their vigilance and compliance monitoring of employers. All parties shall benefit and value of the building blocks of our society – human labour, will be accorded the dignity it deserves. Sheik Mia is the CEO of Quantum Solutions Limited, a writer and musician.

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Employers should take personal and institutional responsibility for their actions