New Delhi, Oct 10 (UNI) The government is likely to enhance retrenchment compensation for workers of organised sector to more than 45 days per year from existing 15 days in a bid to extend benefits of retrenchment ceiling hike to the 27 million workforce.
The Minister of State for Labour and Employment Oscar Fernandes hinted this while releasing a study bought out by the industry chamber Assocham on 'Essential changes required in Labour Laws other than Hire and Fire' here today.
Mr Fernandes said that most of the trade union leaders have been making a constant demand to increase the retrenchment benefits for workers and the government would now persuade industry to support enhancing the compensation in view of the hike in cost of living.
Currently, when a worker is retrenched, under the ID Act, his employer is supposed to pay 15 days salary for each year of his service rendered.
With the new law in place, the retrenched worker would be eligible to receive higher retrenchment compensation than at present, indicated Mr Fernandes.
On its part Assocham Secretary General D S Rawat assured the government that the industry chamber will try to convince over its two and half lakh industry members to agree to extend retrenchment salary package to more than 45 days per year as against 15 days as per existing practice.
Mr Fernandes emphasised that the ID Act and many other Acts have become prototype and outdated and the government would bring in sufficient changes in them at appropriate time so that modern laws replace the old one.