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Disputes Erupt Over Employer’s Breach of Law and Internal Regulations
A growing number of disputes have emerged in recent months over employers’ failure to comply with the law and internal regulations regarding redundancy procedures.
Failure to Provide Adequate Justification
Under Article 82 of the Labour Law, employers are required to present an economic business rationale as part of consultations with unions or employee representatives before terminating employment contracts for business reasons. However, it has been reported that some employers have failed to provide adequate justification for their decision to make redundancies, leaving employees and their representatives feeling frustrated and disillusioned.
Lack of Transparency and Accountability
According to sources, there is currently no provision in Lao law for challenging an employer’s economic business rationale, which has led to concerns over the lack of transparency and accountability in the redundancy process. Employees and their representatives may only be able to file an administrative action if they are not satisfied with the business rationale provided by the employer.
Individual Consultation a Concern
In addition, it has been revealed that there is no requirement for employers to consult with employees individually, although some employers may choose to do so as a matter of best practice. This has raised concerns over the potential for individual employees to be targeted for redundancy without proper consultation or consideration.
Prohibited Terminations
The Labour Law also prohibits employers from terminating the employment contracts of certain categories of employees, including those who are pregnant, on parental leave, or undergoing medical treatment. However, it appears that some employers may have failed to comply with these provisions, leading to further disputes and concerns over their treatment of employees.
Ministry Response
As a result, the Ministry of Labour and Social Welfare has been flooded with complaints from employees and their representatives over alleged breaches of the law and internal regulations. The ministry has announced plans to increase monitoring and enforcement of redundancy procedures to prevent further disputes and ensure compliance with the law.
Advice for Employers and Employees
Employers are being urged to review their redundancy procedures and ensure that they comply with all relevant laws and regulations. Employees and their representatives are also advised to seek legal advice if they have concerns over their treatment in relation to redundancy or any other employment issue.
Conclusion
The dispute highlights the need for greater transparency and accountability in the redundancy process, as well as the importance of employers complying with all relevant laws and regulations. As the situation continues to unfold, it remains to be seen how these disputes will be resolved and what measures will be taken to prevent similar issues arising in the future.