Workers to receive compensation if sacked due to prolonged illness

Companies will soon have to pay compensation to workers retrenched because of prolonged illness.

In the current law, there is no retrenchment protection for workers. The proposal is a part of the Industrial Relations (IR) Code Bill, 2019, which was referred to the Standing Committee on Labour by the National Democratic Alliance (NDA) government in December.

The IR Code Bill will consolidate three labour laws: the Trade Unions Act, 1926; the Industrial Employment (Standing Orders) Act, 1946; and the Industrial Disputes Act, 1947.

According to the Industrial Disputes Act, 1947, employers are required to pay compensation to workers for retrenchment, except in some