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Dismissed workers will continue to have the right to claim dismissal after a certain suspended period until the end of November.
Under the Severance Pay Act 1967, a dismissed employee has the right to demand severance if the employer cannot guarantee the job.
This avoids leaving employees in limbo by giving them the right to demand their severance lump sum and seek employment elsewhere.
However, when the pandemic occurred, there was great concern that with a tsunami of layoffs looming, hundreds of thousands of people could try to force layoffs, which would have put pressure on companies’ cash flow.
It would also have had implications for the State, which pays the account where the company cannot through the Social Security Fund.
In the first emergency Covid-19 legislation, the right to invoke the dismissal was suspended and the last suspension was due to expire on Thursday.
However, it is understood that the Cabinet has decided to further extend the suspension until November 30.
This is the fourth extension since workers’ rights were suspended in March.
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