Fail Safe

A blueprint for a proposed social security net for retrenched workers has got the Treasury go-ahead, with the changes to be gazetted in two weeks.rn

ldblquote The treasury has approved the proposal we put forward and we hope to reach a final decision in two weeks, before we can officially announce it
dblquote , Labour and Employment Minister Mahinda Samarasinghe said today.rn

rnThe changes will then be gazetted, and is to be enforced this year, with a deadline by law of December 31 2003.rn

rnThe safety net maps out a statutory compensation formula for workers laid off during company restructuring.rn

rnThe formula is likely to be a fixed per cent of the annual salary for the number for years in service. rn

rnCurrently, the existing formula worked out by the Labour Commissioner has no legal effect and can only be implemented through mutual agreement. rn

rnThe safety net also includes an Unemployment Insurance Fund, providing redundant workers with funds on a monthly basis for a given ti