An “administrative arrangement” was reached this week between trade unions, businesses and the government, to manage worker lay offs stemming from the global recession.
On Wednesday, key government agencies like the Finance Ministry, the Central Bank and the ministries of Labour and Export Development met with 12 leading trade unions and employer representatives, to decide on labour arrangements to minimise impacts of the global downturn.
“Until December 31 this year, we will have an administrative arrangement on labour laws for companies, with the agreement of employees,” Secretary to the Ministry of Labour Relations and Manpower, Mahinda Madihahewa, told The Sunday Times FT.
The administrative arrangement includes fast-tracking the process of temporary lay offs. Companies will be allowed to lay off workers up to three months. However, employers have to pay workers some part of their salaries during this period. Employers must also pay EPF and ETF on these payments. At the end of three months they must re-hire workers.
“This is not a blanket approval for temporary lay offs. Companies have to apply to the Commissioner of Labour under section two of the Termination Act. Each case will be evaluated individually. But the process has been fast-tracked. Previously the termination process could take up to six months but these cases will be decided in two weeks,” said Mr Madihahewa.
Factories will also be allowed to operate a five day week, instead of the normal five-and-a-half-day work week, after coming to an agreement with workers. This means transferring the Saturday half day of work to the five week days, at the rate of one extra hour of work, during the five week days.
Because Sri Lanka has no social security system to support workers and their families during periods of sudden job losses, the government has also linked its aid package to safeguarding jobs. Companies that want to benefit from the government’s stimulus package must retain the same number of workers as the third quarter 2008. |
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