Vanuatu's Parliament has unanimously endorsed the changes to the Employment Act despite concerns that employers would be adversely affected.
The Daily Post newspaper reports that there are concerns over the section of the Act where severance payments will be calculated at two months per year and apply retroactively.
Most ni-Vanuatu employers would reportedly find it difficult to make such payments under the amendment.
The Opposition unsuccessfully asked for changes to the Bill to ensure that once the changes become effective the payment of severance will not be retroactive.
