The Ministry of Labour is considering relaxing labour laws, to allow businesses to adjust to impacts of the global recession. This includes allowing factories to lay off workers for three months without paying compensation, and to operate a 5-day week instead of the normal five-and-half week. Trade unions, employers and government officials are meeting next week for a final decision on these labour law relaxations.
“We are considering allowing factories to temporarily lay off workers for a period of only three months. Companies can apply to the Commissioner General of Labour after coming to an arrangement with the workers. If they can’t re-hire, they must pay compensation to workers according to the Compensation Formula,” Secretary to the Ministry of Labour Relations and Manpower, Mahinda Madihahewa, told The Sunday Times FT at a media workshop organised by the International Labour Organisation as part of its 90th anniversary celebrations.
The Ministry has also got 32 applications from companies asking for permission to lay off workers. This is excluding companies that have already started laying-off through internal arrangements with workers such as voluntary retirement schemes.
The sectors most affected by the global down turn are apparel, ceramics, textiles, leather and tourism. The Ministry is also conducting a survey to calculate the extent of damages so far.
Mr Madihahewa said factories can also apply for permission to operate a 5-day work week, instead of the normal five-and-a-half working week. Factories will be allowed to shift the half day of work on Saturday, to the five week days. This will be done by working an extra hour per day, during the five week days - without paying over time to workers for the extra one hour of work.
Sri Lanka does not have any type of social safety net, such as unemployment insurance, to protect workers and their families from sudden job losses.
Given the country’s cost of living, basic salaries of non-executive workers are seen as inadequate. Many working people are also employed in the informal economy without any type of labour law protection at all. |
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