Compensation now Rs 2.5M

CEYLON TODAY | Published: 2:00 AM Mar 1 2021

Maximum compensation for workers who face premature job termination has been raised to Rs 2.5 million, announced Minister of Labour Nimal Siripala de Silva.

According to de Silva, this regulation will apply to private and semi-government organisations. 

An Extraordinary Gazette notification was issued in this regard by the Commissioner General of Labour Prabath Chandrakeerthi on 25 February. 

The Gazette notification would replace the existing compensation regulations under 2005 Special Provision for the Termination of Employment Act No. 25 of 1971, where the maximum compensation for termination is Rs 1,250,000.

Minister de Silva further said this decision was taken to provide relief to workers in the country and the quantum was increased after 15 years. 

Since the Rs 1,125,000 was no longer enough for a worker who has been terminated to survive on, let alone give children a proper education, several organisations and trade unions had voiced their concerns. This was why the new Act was passed de Silva explained.

Commissioner General of Labour Prabath Chandrakeerthi added that the new law has been in place since 19 February. (TF)


CEYLON TODAY | Published: 2:00 AM Mar 1 2021

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