Several companies have been sensitized on how to pay indemnity to retiring employees without having to spend much. Senior management staff of companies across the country have embraced easier ways of paying indemnities to retiring workers without having to be pained by the usually heavy disbursements, which often affect companies during massive lay-offs.

The seminar, which held at the GICAM headquarters in Douala yesterday around the premise “End of career indemnity for optimum financial and human resources management of companies”, falls in line with the Cameroon Insurance Association, ASAC’s (organizer) objectives to sensitise companies about how the terms of the Collective Agreement can be applied; more importantly because the insurance companies have a solution in the form of an insurance product.

It was an opportunity to present this product to the financial directors, human resources managers and general managers. The sensitization is a win-win situation to the workforce, employers and ASAC which presented the product that was still little known to companies which can take advantage of it.

Rather than wait to pay indemnities which are social rights accumulated over the years, insurance structures and companies signed a Collective Agreement in which indemnities or social rights of private sector workers will be paid. Law n°92/007 of August 14, 1992 on the Labour Code authorizes the establishment of collective conventions and agreements, as provided for in articles 52 to 60. Going by the arrangement, companies were supposed to contribute regularly the indemnities of their employees to insurance companies. In the accounting systems of companies, provisions are to be made for these allowances that have to be paid.

To the President of the Cameroon Insurance Association, the advantage is that the premium paid is tax deductible if a company subscribe to this insurance product. Martin Ndikum Foncha further says “the product also gives the company the advantage of not paying a lot of money when there are massive lay-offs.” Subscribed companies pay following the terms of the Agreement. It goes a long way to prevent discontent which results sometimes to angry protest demonstration, when employees retire without receiving their indemnities or social rights in time. Beside the arrangement assures workers that their social rights and concerns have been accommodated within a background of a sane and trustworthy managerial system.