A private Bill moved by BJP MP and RSS ideologue Rakesh Sinha, proposes nine-months’ salary to employess of private companies if they are retrenched because of the economic slowdown. The Bill, the Terminated Employees (Welfare) Bill, asks the Centre to create a corpus fund to help employees who lose jobs by taking a share from the profits of private companies. Sinha said there is no law to ensure that the employers provide terminal benefits in time for education and medical facilities to the families of terminated employees.
The Bill says the provision of compensation will not be applicable to employees who have been terminated for reasons such as proven misconduct, cheating, indulging with fraudulent means and appropriating money or having been found guilty by a criminal court of justice.
Sinha said in the statement on objects and reasons of the Bill that it has been observed that employees face undiminished threat of losing jobs and live in a climate of uncertainty. “Things become worse when they are relieved from jobs without any substantive compensation,” he said and added: “Moreover, laying off due to change in management policies or the government policies or due to the losses incurred due to inefficient management are all the events where the employee doesn’t have much control but is the one who suffers the most.”
Assured income
The Bill, he said, provides for minimum nine months time with assured income to the terminated employees and also medical benefits. This will give them enough time to find new employment without disturbing the existing set up of their family. “Neo liberalisation has increased the uncertainties in the lives of people. It also justifies inequality to an extent on the one hand and indoctrinates the employers to become insensitive to their employees. In fact, it has revived the rejected doctrine ‘survival of the fittest’. This concern needs to be essentially addressed,” Sinha said.
He said no welfare State can give primacy to profit making. “Indian Constitution aspires, idealises and also inspires to make endeavour to achieve equality. This cannot be treated as dead ideal. The State has to strive for it. No economic system can endure or can yield greater good of greater number and protect the interests of working people if it follows the blind path of development and allows the concentration of wealth. The goal of New India is to maximise egalitarianism and to minimise inequality. In this context protection of economic interests and dignity of employees of private sector is both moral and constitutional duty of the Indian state,” he said justifying the Bill.
Corpus fund
“Every employer shall create a corpus fund to which at least five per cent of the net profit of the organization shall be credited, which shall be used for the welfare of terminated employees. Every employer shall be entitled to solicit contribution from any organisation, individual or trust for the purpose of maintaining the fund, in such manner as may be, prescribed,” the Bill said.