The new labour law, with more benefits for workers including a higher layoff compensation rate for long-serving employees, will come into effect on May 5.
The law, officially called the Labour Protection Act (No.7), was published in the Royal Gazette on Friday after the National Legislative Assembly passed it on Dec 13.
One noteworthy change is the addition of another rate to the termination compensation structure. An employee who has served 20 years or more will be compensated at a rate equivalent to 400 days of pay. (see chart below)
Also under the new law, employees are entitled to take up to three paid days per year for personal business leave. They can take more than three such days but they will not be paid. Under the existing law, employees may take such leave but it is up to management to decide whether to pay them for those days.
Maternity leave has been increased to 98 days, from 90 days under the existing labour law, including weekends and holidays. The leave also includes days taken for pre-natal examinations. At present, female employees can take maternity leave for up to 90 consecutive days but it does not include pre-natal exams, which are allowed but covered under other rights.
If the employer or juristic person changes as a result of an acquisition or merger, the employees must first consent to new employment and all their existing rights and benefits must be maintained. At present, employees have to take legal action to demand compensation if they don't agree to any changes.
If a workplace is moved and an employee does not agree to work at the new location, he or she will be compensated at rates not less than termination rates, compared with 50% of termination rates at present.
If an employer does not pay overtime, an employee may take legal action demanding the overdue payment plus interest at 15% a year, from 7.5% now.
In case of termination without notice, employees must be paid in full from the day they are asked to stop working to the date the termination contract comes into effect.
Payments must also be equal for men and women for the same jobs or capacities.
