Compensation package for termination of employment coming in January

The Minister of Labour says a compensation package for terminated workers and an unemployment benefit scheme will be implemented in January 2005. The Minister of Labour says a compensation package for terminated workers and an unemployment benefit scheme will be implemented in January 2005. “We have decided on a new compensation formula. So it will come from January 1, next year,” Minister of Labour, Athauda Seneviratne, told Lanka Business Online on Thursday.

The Ministry of Labour announced a compensation formula and an unemployment benefit scheme in August this year as well, but packed it up when both employers and trade unions refused to support it.

Now the Ministry says it has all round consensus for a new compensation package, that would make the process of laying-off workers faster and smoother.

“The highest compensation is 48 months, with another full 12 months salary as unemployment insurance,” said Seneviratne.

For 25 to 34 years of service employees are entitled up to 48 months salary as compensation if they are terminated – but this top amount is capped at Rs 1.25 mn.

One to five years of work will get th