About 95 percent of employers unhappy with new labour law: Survey

A SURVEY conducted recently by Industrial Psychology Consultants (IPC) revealed that about 95 percent of local employers are unhappy with the recent amendments to the Labour Act.

The gap between top earners and ordinary workers continues to widen
The gap between top earners and ordinary workers continues to widen

Most of the companies are even failing to pay workers whose contracts were terminated on or after the Supreme Court ruling of July 17, 2015.

It is believed that as many as 20 000 workers have been dismissed based on the ruling.

“Generally, employers are displeased with the new Labour Act. Only a small fraction of employers, 5 percent, said that the Act was fair and that it expedites dispute resolution,” reads part of the key findings by IPC.

The survey also established that 38 percent of companies terminated mostly non-managerial employees.

Only 2 percent of the respondents terminated more managerial employees.

Most of the companies are still negotiating with their former employees and/ or representatives to facilitate a payment plan as they have not paid the minimum required retrenchment packages.

The survey was conducted on 14 sectors of the economy ranging from media, agriculture and agri-processing, medicine and pharmaceuticals, tourism, information technology to financial services.

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