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WEDNESDAY, DECEMBER 4, 1985

MR HENDERSON SAID THE LABOUR DEPARTMENT HAD FOR SOME TIM BEEN CONSIDERING WAYS OF GIVING GREATER SECURITY TO ELDEN. LONG SERVICE EMPLOYEES.

HE SAID LEGISLATION ON UNFAIR DISMISSAL HAD BEEN CONSIDERED BUT THE EXPERIENCE OF OTHER COUNTRIES, IN PARTICULAR THE UNITED KINGDOM, IN THIS FIELD OF LEGISLATION, HAD SHOWN THAT IT WOULD BE EXTREMELY DIFFICULT TO DEFINE WHAT CONSTITUTED UNFAIR OR UNREASONABLE DISMISSAL.

IN ADDITION, HE SAID, THE SCHEME WOULD REQUIRED THE ESTABLISHMENT OF A NEW TRIBUNAL OR AN EXPANSION OF THE EXISTING LABOUR TRIBUNAL TO HANDLE THE INEVITABLE DISPUTES WHICH WOULD ARISE IF LEGISLATION OF THIS KIND WERE INTRODUCED.

+ INSTEAD. THE PRESENT LONG SERVICE PAYMENT PROPOSALS HAVE BEEN DEVELOPED AS A PRACTICAL ALTERNATIVE TO UNFAIR DISMISSAL LEGISLATION, BASED ON THE PREMISE THAT THE DISMISSAL OF AN ELDERLY LONG SERVICE EMPLOYEE WITHOUT SOME FORM OF PROVISION FOR HIS FUTURE IS ITSELF UNREASONABLE.

+A STATUTORY REQUIREMENT FOR AN EMPLOYER TO MAKE A PAYMENT TO A DISMISSED EMPLOYEE, BASED ON HIS AGE AND LENGTH OF SERVICE WOULD ACHIEVE MUCH THE SAME RESULT AS AN EMPLOYEE'S ENTITLEMENT TO MONETARY COMPENSATION UNDER UNFAIR DISMISSAL LEGISLATION WHILE AVOIDING THE NEED FOR COMPLEX AND EXPENSIVE PROCEDURES TO ESTABLISH THAT THE DISMISSAL HAD BEEN UNREASONABLE, HE SAID.

MR HENDERSON SAID THE LONG SERVICE PAYMENT PROPOSALS PUT FORWARD IN THE EMPLOYMENT (AMENDMENT) BILL WERE AIMED AT THE OLDER EMPLOYEE AND TOOK INTO ACCOUNT HIS LENGTH OF SERVICE AS WELL AS HIS AGE.

HE SAID AN EMPLOYEE AGED 40 OR LESS MUST HAVE AT LEAST 10 YEARS' SERVICE TO QUALIFY FOR A LONG SERVICE PAYMENT AND ABOVE THIS AGE, THE MINIMUM QUALIFYING SERVICE WAS PROGRESSIVELY REDUCED SO THAT AN EMPLOYEE AGED 45 OR MORE REQUIRED ONLY FIVE YEARS' SERVICE TO QUALIFY.

+THE RATIONALE FOR PROGRESSIVELY REDUCING THE PERIOD OF QUALIFYING SERVICE AFTER THE AGE OF 40 IS THAT THIS AGE IS GENERALLY CONSIDERED TO BE THE PEAK OF AN EMPLOYEE'S WORKING LIFE BEYOND WHICH HE WILL FIND IT INCREASINGLY DIFFICULT TO OBTAIN ALTERNATIVE EMPLOYMENT, HE SAID.

+ IN THE CASE OF A MANUAL WORKER IT IS ALSO THE AGE BEYOND WHICH HIS ENERGY AND PRODUCTIVITY BECOME HARDER TO MAINTAIN, + HE SAID.

MR HENDERSON SAID IT WAS ALSO FELT THAT A YOUNGER EMPLOYEE WHO HAD SPENT 10 OF THE MOST PRODUCTIVE YEARS OF HIS LIFE WITH THE SAME EMPLOYER ALSO DESERVED RECOGNITION FOR HIS LOYALTY, THOUGH BECAUSE THE PROPOSALS WERE PRIMARILY AIMED AT MORE ELDERLY EMPLOYEES, EMPLOYEES YOUNGER THAN 40 WOULD ONLY RECEIVE A PROPORTION OF THE STATUTORY PAYMENT.

/+IT IS

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