A Critical Evaluation of the Termination of Employment of Workmen (Special Provisions) Act in light of balancing the Interests of Employers, Workmen and the State

Abstract

Social security and social justice in relation to labour relations require payment of severance compensation when employments are terminated for non-disciplinary reasons such as retrenchment and closure. The Industrial Disputes Act15 has provisions relating to retrenchment,16 and termination of services.17 However, as the provisions in the Industrial Disputes Act were inadequate to protect the interests of the workmen from the wave of retrenchment in 1971, the government made an emergency regulation under the Public Security Ordinance in May 197118 as a temporary measure to control retrenchment. It has been followed by the enactment of the Termination of Employment of Workmen (Special Provisions) Act in 1971