The Senate today passed a bill amending the Holidays with Pay Act.

The amendments will see an increase in the fines for employers who breach the law while reducing prison time for those who violate the statute.

The 62-year-old legislation provides workers with a minimum entitlement for sick leave with pay, holidays with pay, gratuities and sick benefits.

Piloting the bill in the Upper House earlier today, Leader of Government Business, Dorothy Lightbourne, said the monetary fines did not serve as a deterrent to employers who breached the rights of the worker.

Contravention of the law attracts a fine of $200 or six months imprisonment.

With the amendments an employer who flouts the statute could now face a fine of $250,000.

However, the penalty has been reduced from six to three months.

A report from the Ministry of Labour and Social Security indicated that between 2004 and 2008 an average 2,400 workers submitted complaints to the ministry about employers who breached the law.

Employers were reported for not providing vacation and sick leave to workers, and for refusing to compensate them for overtime.

Lightbourne said employees were generally threatened with dismissal if they report employers to ministry.

Under the present law, workers do not have any remedy in the courts if they are deprived of these benefits.

The law is now being amended to include a provision, which would provide workers with a right of action in the Resident Magistrate Court.

Opposition senator and trade unionist, Navel Clarke, while welcoming the amendments, said the government should have effected more comprehensive changes to the law, as further adjustments would be needed with the implementation of flexi work arrangements.

He said the Holidays with Pay Act was now meaningless to thousands of people who had lost their jobs.