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Plans to lay off private sector workers in Sri Lanka laid off, until the government works out how to finance unemployment insurance. The Ministry of Labour gazetted its latest compensation formula to lay off private sector workers on March 15, but the new formula is on ice until the Ministry finds money to pay unemployment insurance.
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"The UBIF (Unemployment Benefit Insurance Scheme) and the compensation formula will be implemented together," said Deputy Commissioner of Labour - Terminations, Norton Fernando at a seminar organised by the National Chamber of Exporters on Tuesday.
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"There is no legal requirement for both to be implemented together but the government has said they will both come together," says Fernando.
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Meanwhile requests to lay off excess labour and petitions against being laid off, are piling up on the Labour Commissioners table.
"There are around 17 pending applications by companies for terminations.
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There are more applications against terminations by workers