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G4S PLC

Mozambique Overtime Pay Violations

Date: 10/30/2007 (Date of Ruling)

Misconduct Type: Labor

Enforcement Agency: International

Contracting Party: None

Court Type: Administrative

Amount: $1,300,000

Disposition: Restitution

Synopsis: It was reported that Mozambique's Administrative Tribunal rejected Wackenhut’s appeal of an order by the Labor Ministry to pay over 11 years of overtime to hundreds of its security guards. Wackenhut admitted that between 1994 and 2005 it had not paid any overtime to the guards, who had been working 12 hour shifts, four hours more than the standard eight hour day. In May 2006, an arbitration panel ruled that Wackenhut had to pay overtime, but found the amount the workers claimed they were owed – 33.9 billion old meticais (approximately $1.3 million) – had not been proved. However, since Wackenhut did not provide a basis on which an alternate amount could be calculated, the Ministry demanded that Wackenhut pay the 33.9 billion meticais.