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Sunday, 22 February 2004    
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New labour Bill beneficial for employees

Services of employees who had committed non-disciplinary acts cannot be terminated without the approval of the Commissioner of Labour, said the Director-General Employers' Federation of Ceylon, Gotabaya Dasanayaka.

The proposed Termination of Employment of Workmen's (Special Provisions) Amendment Bill is aimed at eliminating long delays in payment of compensation and inconsistent methods adopted by companies, Dasanayaka said at a meeting organised by the Merchant Bank.

Under this Bill, a new compensation formula would be introduced, as a guideline for employers and, employees could obtain compensation, based on that formula.

The Unemployment Benefit Insurance Fund (UBIF), which had been incorporated in the Bill, would entitle an employee whose services had been terminated, to a monthly allowance until he is reinstated or settlement is reached if he loses his job. In case he loses his job, the 'Jobsnet programme' would help him to find suitable employment.

Dasanayaka said that by and large there was no adequate social security system in the country as the law did not apply to employees who reached 54 years of age.

The UBIF would be inaugurated with an initial capital of Rs. 500 million and, dormant EPF funds would be utilised for it, with a government guarantee, he said.

A levy from both employee and employer would also be imposed for the proposed fund. The employers' financial capacity would not be taken into account for the payment of compensation for victimised employees, he added.

General-Secretary Sri Lanka Nidhahas Sevaka Sangamaya, Lesley Devendra, said that the proposed amendment had a negative effect, but it would reduce the number of employees being terminated on non-disciplinary actions.

However, the companies would adopt various ruses to recruit casual employees to replenish their workforce.

(HHS)

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