A Grand Cayman court has ruled that Stingray Tours workers who provided services for more than a decade were employees in law and entitled to benefits under the Labour Act, despite working under a commission-based arrangement.

The judgment, delivered on 27 August 2026, found that the company had not provided the affected workers with paid vacation leave or paid sick leave.

The Department of Labour & Pensions (DLP) investigated the matter before referring the case to the Office of the Director of Public Prosecutions, which took it to court in early 2026.

After hearing evidence from both sides, the court found that the nature of the working relationship meant the workers were employees rather than independent contractors.

More than CI $90,000 awarded

The company had argued that the workers were not full-time employees and therefore were not entitled to paid vacation or sick leave.

The court rejected that position, finding that the workers had provided sufficient evidence to establish employee status. The length and character of the relationship were among the factors considered in determining their entitlement to Labour Act benefits.

Stingray Tours faced 10 criminal charges and was ordered to comply with the Labour Act and compensate the affected workers in accordance with the court's findings.

The awards amounted to approximately CI $86,230 in unpaid vacation pay and CI $4,080 in sick leave pay - a combined total of about CI $90,310.

Boat operator pushes back on wider implications

The ruling has prompted questions about working arrangements within Cayman's watersports industry, where some people work on commission or operate independently.

A local boat operator, who was not connected with Stingray Tours or the court case, was dismissive of the suggestion that such arrangements necessarily amounted to employment.

He said some workers had moved away from company-based employment and now operated on their own terms.

"They are their own boss. They are free in there," he said, explaining that they could take on their own customers and contracts. "We would have no bosses. We work as much as we want," he added.

His comments concerned working practices in the industry generally, rather than the circumstances examined by the court in the Stingray Tours case.

The judgment did not determine the status of other watersports workers or establish that all commission-based or independent arrangements amount to employment.

Minister: Companies are "on notice"

Minister for Caymanian Employment and Immigration Michael Myles MP said the case sent a clear message to employers.

"This case sends a clear message that companies are on notice: the Labour Act must be respected and complied with. Employers cannot simply structure working arrangements in a particular way to avoid their legal responsibilities or deprive workers of statutory rights and protections."

Mr Myles also praised the DLP team that investigated the matter.

"I am particularly pleased that this matter demonstrates the value of holding employers accountable. I commend the entire Labour team at DLP for their work and dedication in investigating this matter, which went to court and ultimately led to a successful prosecution and a significant outcome for the affected workers," he said.

Pension investigation continues

The DLP said a separate investigation into pension compliance remains ongoing.

That aspect of the matter has not been concluded and no finding has been made in relation to any alleged pension non-compliance.