Approximately 50 representatives of local private companies have been briefed on the Vanuatu Chamber of Commerce and Industry paper at its launching at Grand Hotel this week.
This was to amend the Employment Act severance amount of four weeks per year of continuous employment to one week.
The paper was prepared based on a national survey of performances of over 200 private companies, especially after Cyclone Pam six months ago.
The paper was explained by VCCI President Tom Bayer and Chief Executive Officer Astride Boulekone.
They explained that the paper is designed to favour employers as the current Act is based on International Labour Organisations principle(s) to benefit employees.
Bayer said it is not suitable for the local environment. “When employees get their severance in lump sum, it is blown away within a week”, he said.
The VCCI is looking for an alternative which is spread out to help employees long term after they become unemployed.
That is why the employer has to pay 2% and the employee 2% into the VNPF per pay day for use on rainy days in the future.
VCCI has yet to consult with Workers’ Union, Department of Labour and Ministry of Internal Affairs on the paper for the possibility of finally tabling it in parliament to amend the section on severance.