In a much needed relief for private sector employee welfare, central government has received  The Terminated Employee Welfare Bill 2020  from Mp Rakesh Sinha in Rajya sabha. This bill provide for the welfare measures for the employees who have been terminated by the employers in the below mentioned conditions

The Terminated Employee Welfare Bill 2020

Shrinking government job portfolio and increasing private sector footprints in all wakes of employment life increases the questions of employee welfare in front of us. The welfare of an employee working with private sector need to be addressed due to undiminished threat of losing jobs and live in a climate of uncertainty.  For an private employee things become worse when he/she gets a pink slip in hand without any explanation and left them devastated and poses unprecedented challenge to survive in ever changing environment.

The Terminated Employee Welfare bill will provides for minimum nine months time with assured income to the terminated employees and also medical benefits which will give them enough time to reassign themselves to new employment without disturbing the existing set up of their family.

At present there is no law which provides any relief to terminated employees of a private establishment

Terminated Employee Bill Eligibility Criteria

TEWB 2020 will be applicable to the employee of the private sector  employee whose employment is terminated for the reasons of the winding up of the organization or the establishment due to:— 

  1. Economic slowdown
  2. Change in technology in the respective field
  3. The owner or director managing the affairs of the establishment becoming insolvent
  4. The orders of any court to hold operations by the employer
  5. Incurring losses and unable to carry on the business
  6. The change in Government policy limits the working of the employer company

Who is a terminated Employee ??

According to the definition mentioned under this bill terminated employee means any employee who was employed by any employer, whether on regular or temporary basis or casual in nature or on contract basis and whose services have been terminated by such employer.

Employees fall in above mentioned category will be entitled to receive unemployment compensation health insurance benefits or any other benefits as may be prescribed by the Central Government. if such benefits are not part of the employee-employer agreement, for nine months or till the time he gets employed elsewhere, whichever is earlier.

Corpus Fund for Terminated Employee Welfare

  • Every private sector employer shall create a corpus fund for employee welfare from the net profit of organization. this should be at least 5% of the net profit for any financial year.
  • Employer can solicit contribution from any organization , individual , trust  for the purpose of maintaining corpus fund.
  • The Central Government shall, after due appropriation made by Parliament by law in this behalf, provide adequate funds for carrying out the purposes of this Act

What the Status now ?

Definitely the terminated employee welfare bill a breather for private sector employee in such a turbulent economy and fast paced materialistic life style. Indian constitution aspire the spirit of equality among all and this new bill would certainly add to the spirit of equality. During parliamentary debate  TEWB  may get amendments even in that  condition if it  keeps the essence of private sector employee welfare would be a milestone worth striving.

At present The bill is pending for approval in the parliament .

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