New Minimum Wage & BRA Act of 2016 And How It Effects to Private Sector
One of the hot topic in all levels citizens of the Island and specially among the Employers and Employees during this period is New Minimum wage Increase and Budgetary Relief Act introduced recently by the newly appointed Government.
Later part of 2014 Government agreed for LKR 10,000/- hike and at the same time Government requested from the Private Sector for a LKR 2,500/- Pay increase but didn't get any positive response from the Employers.
Responding negative feedback for the request for the Private Sector Employers, Government included LKR 2,500/- Salary increase to the 2015 February Budget and legalized the request.
Granting a pay hike for Private Sector workers is a fair need which everyone agreed but this kind of legislation for Private industries across the board will ended up with disastrous repercussions for the most of the small scale industries of the country. This situation may even provoke the decision of a closure of the businesses.
Without considering nature of the Business, Financial history/ analysis of the business, Capacity of the investors and market situation tenacious decisions will drive bad ends and we have plenty of bad examples from the past.
Recent past pension scheme one of them and it ended up by destroying young lives and bad patch for the whole country.
From the other hand as a country we are promoting foreign investments to overcome the financial crisis. But from these kind of ad hoc Legislation will destroy the whole positive image Government inculcating among the world.
My opinion here is Government should smart enough and be responsible to evaluate and study about the Industry and Private Sector Employers before introduce these kind of decisions and Legislate them.
This will create much confusion among Employees and Employers and also will bring disastrous long term effects for the Employers have no option than resorting to legal action to protect their businesses or lead to the closure of their businesses if they cannot compete.
This is open for discussion and share your valuable thoughts......
http://www.employers.lk/industrial-disputes-act-i/588-circular-no-04-of-2016-and-draft-bills
Later part of 2014 Government agreed for LKR 10,000/- hike and at the same time Government requested from the Private Sector for a LKR 2,500/- Pay increase but didn't get any positive response from the Employers.
Responding negative feedback for the request for the Private Sector Employers, Government included LKR 2,500/- Salary increase to the 2015 February Budget and legalized the request.
Granting a pay hike for Private Sector workers is a fair need which everyone agreed but this kind of legislation for Private industries across the board will ended up with disastrous repercussions for the most of the small scale industries of the country. This situation may even provoke the decision of a closure of the businesses.
Without considering nature of the Business, Financial history/ analysis of the business, Capacity of the investors and market situation tenacious decisions will drive bad ends and we have plenty of bad examples from the past.
Recent past pension scheme one of them and it ended up by destroying young lives and bad patch for the whole country.
From the other hand as a country we are promoting foreign investments to overcome the financial crisis. But from these kind of ad hoc Legislation will destroy the whole positive image Government inculcating among the world.
My opinion here is Government should smart enough and be responsible to evaluate and study about the Industry and Private Sector Employers before introduce these kind of decisions and Legislate them.
This will create much confusion among Employees and Employers and also will bring disastrous long term effects for the Employers have no option than resorting to legal action to protect their businesses or lead to the closure of their businesses if they cannot compete.
This is open for discussion and share your valuable thoughts......
http://www.employers.lk/industrial-disputes-act-i/588-circular-no-04-of-2016-and-draft-bills
