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Compensation formula for termination of employees in March

A new compensation formula for termination of employees will come into force in March, says the Labour Ministry.
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A new compensation formula for termination of employees will come into force in March, says the Labour Ministry. "It will be gazetted most probably in two weeks time.
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The formula was approved by Cabinet and it is now at the Legal Draftsman," said Mahinda Madiyahewa, Secretary to the Ministry of Labour.
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Trade unions and employer feed back, says the Ministry, has already been incorporated but laying off workers, even under the compensation package first requires approval from the Commissioner of Labour.

The formula sets the maximum compensation at Rs 1.

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25 mn topped off by an unemployment benefit insurance that comes to 12 month’s salary.

For 25 to 34 years of service employees are entitled up to 48 months of salary as compensation - but this maximum is capped at Rs1.

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25 mn.

One to five years of work will get the lowest compensation of 12.

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5 months salary.

Six to 14 years of work is entitled to a lump payment of 13.

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5 months salary, 15 to 19 years get 38 months of compensation and
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