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The Government plans sweeping changes to the Retrenchment and Severance Benefits Act to prevent employers from avoiding severance payments through insolvency, temporary layoffs or staggered job cuts, Labour Minister Leroy Baptiste announced at a press conference at UNC headquarters on Sunday.
Minister Baptiste said the amendments to the 1985 legislation would redefine redundancy, modernise compensation rates and establish a guaranteed Severance Benefit Fund, while ensuring all retrenched workers qualify for benefits, regardless of company size or the method used to terminate employment.
He said the existing law had been exploited to the disadvantage of workers, leaving many without recourse when companies closed, claimed insolvency or placed employees on prolonged “temporary” layoff.
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