The maximum amount of compensation payable under the Termination of Services Act has been increased from Rs. 1,250,000.00 to Rs. 2‚500‚000.00. This proposal made by the Minister of Labour has been approved by the Cabinet on 11th January, 2021. According to this decision a gazette was issued by the Commissioner General of Labour on 25th February, 2021.
The unions were demanding from previous governments to increase workers’ comp
ensation for a long time. Employers continued to lay off employees for a pittance due to low compensation at termination.