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Hire and fire compensation formula could stiffen the labor market by adding a floor on compensation for voluntary retirement schemes say employers. Labour Minister Gazetted the formula last month that gives up to 48 months salary for termination in addition to another year’s wages through a government dole.
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However, the government hasn’t figured out how to finance the dole.
Employers are lobbying against high termination payments.
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Investment creates jobs. Many countries that have outstripped growth achieved in Sri Lanka did so because of high investment.
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Flexible labor laws were a carrot for investors who like to have the option of reorganizing their ventures to stay competitive.
Pink slips, informing employees they were fired, were common.
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Many get compensation.
An employee on average got 16 months’ salary when fired for non disciplinary reasons in Asia.
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The compensation was much lower in Latin America, Africa and OECD countries.
At 36 months, employers here w