End-of-service payments law change proposal

An urgent proposed amendment to transfer end-of-service payments on monthly instalments to the Social Insurance Organisation (SIO) has been presented tonight.

The amendment to the 2012 Private Sector Employment Law, which is proposed by five MPs led by MP Khalid Bu Onk, would see the payments dispensed by the SIO rather than the employer directly whenever a work contract was terminated or retirement age reached.

Those behind the proposal believe it could make the SIO BD200m a year as it would provide the power to determine the one-off payment.

It comes as the government is suggesting trimming pension benefits and increasing contributions.

It will be referred tomorrow by Parliament chairwoman Fouzia Zainal to the services committee for review.

 

Source: http://www.gdnonline.com/Details/837449/End-of-service-payments-law-change-proposal

 

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