Mar 2007 Financial News

Ex-LOB agents up against Sagicor

Mar 01, 2007

THE CIVIL SUIT to determine the status of former Life of Barbados (LOB) agents who found themselves in a grey area when their company became part of Sagicor Life Inc. continues today in the Court of Appeal.

The suit, brought the insurance company against Livingstone Carter, Charles Anthony Ishmael, Patrick Hill and Margaret Audain, each of whom is representing canvassers, sales representatives, representatives and senior financial services representatives respectively, is asking the court to determine whether the workers of the former LOB were engaged under " a contract of service" or "a contract for services".

The company regarded the workers as independent contractors, working under contract for services. However, the former LOB workers have contended they were full-time employees who were severed with the take-over of LOB and were entitled to severance payments.

Chief Justice Sir David Simmons is hearing the matter as a first instance judge.

Yesterday, Patterson Cheltenham, QC, who is representing Sagicor Life Inc. in association with Alrick Scott and Karen Perreira, argued that the relationship between the company and the workers could be ascertained partly from written contracts and partly by conduct.

He argued that the written contracts must be construed and the conduct of the parties considered.

Cheltenham, who argued for two days, said that even though the company was paying National Insurance contributions and PAYE as an employer, and this could point towards a contract of service, it was not conclusive in determining the nature of the engagement.

He further submitted the company never paid holiday pay nor had any control over their vacation scheduling.

Cheltenham said while there were factors which could point to the workers being either contract workers or employees, those pointing to them being contract workers far outweighed the others.

"It is submitted that the court should hold that the defendants and the workers they represent are engaged under contracts for services and not contracts of service," he said.

Roger Forde, QC, is representing Carter, Ishmael and Audain while Clement Lashley, QC, appeared for Hill.

The matter became a court case after Sagicor, the former agents, and the Barbados Workers' Union failed to reach an agreement.

Source:
Heather-Lynn Evanson
The Nation Newspaper (Barbados)
Thursday 1st March, 2007

http://www.nationnews.com/story/288315148170423.php