The government will amend its newly minted labour retrenchment formula to raise the maximum compensation ceiling from 30 to 50 months of salary.rnrn
The new ceiling will apply to all firms with a net profit of more than Rs. 100 mn and governed by a collective agreement, Labour Minister Mahinda Samarasinghe said Thursday.
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rnThe changes come after union agitation that the formula should be left flexible for negotiation, so that workers could get the best deal.rn
rnThe government rubber-stamped a compensation formula through a gazette notification in December, to streamline worker lay offs during a restructuring. rn
rnAll private sector workers laid off before retirement were to be compensated for past and future service foregone, capped at a maximum 30 months of salary.rn
rnBut labour unions have been agitating that this maximum ceiling be lifted as it restricts even companies who are able to settle for higher.rn
rnBut the reverse also equally applies, with the Labour Commissioner having t