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Employers blasted the governments watered down hire and fire polices, they say, will scare foreign investors and be a bottleneck for restructuring sick businesses. Top chambers led by the Joint Business Forum say the compensation formula will make it too expensive to lay off workers and is uncompetitive by even regional standards.
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The new formula was Gazetted last week.
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A senior employee will have to be paid up to 48 months salary under the new retrenchment formula Gazetted recently.
Earlier, employers had to go through a long process for approval to retrench workers.
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In practice very few companies even tried to do so.
A compensation formula was proposed to make it simpler and faster by the previous UNF government.
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The current left leaning UPFA however has watered down the formula making it meaningless according to chambers.
The island’s top chambers say it will be too expensive for companies to fire workers to restructure or save sick ventures.
“Absolutely draconian,”