HND Level 07 – Unit 03

Sri Lankan Labor law

By Rajitha Silva MBA (AUS), PG Dip.(UK), BBA (COL)

grpriyankara@gmail.com

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• The Law may be defined as the body of rules which spells out the rights an duties of the various sectors in any society.

• Examples of Laws

– Criminal Law – Land Law – Family Law – Administrative Law – Banking Law – Intellectual Property Law – Labour Law

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What is Law ?

Legislature Parliament of Sri Lanka Makes laws

Executive President and the Cabinet of

Ministers

Implements the laws

Judiciary Courts Interprets the laws

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Branches of Government

• Governs and Regulates the Relationship of Employer [Master] and Employee [Servant]

Labour Law = Employment Law = Law relating to Master

and Servant

Employment = Employer + Employee

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Labour Law

History of Labor Law of Sri Lanka

• 1815 - Captured by British, • 1823 - Started Estates • Immigrant workers, • Wage Labour • Newly emerged working class, • Unskilled, born to work • Ordinance No 5 of 1841 – Contract for hire and service • Ordinance No 14 of 1872 – Medical and Health Care • Ordinance No 13 of 1889 – Estate Labour (indian) • Ordinance No 1 of 1923 – Indian Immigrant Labour • Ordinance No 27 of 1927 – The Minimum Wage

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Ministry of Labour – History in Brief

• 1931 – Ministry of Labour, Industries & Commerce • 1947 – Ministry of Labour and Social Service • 1952 – Ministry of Labour • 1956 – Ministry of Labour Housing & Social Service • 1959 - Ministry of Labour • 1960 - Ministry of Labour Industry and Fisheries • 1961 - Ministry of Labour & Nationalized Services • 1963- Ministry of Labour & Social Services • 1965 - Ministry of Labour, Employment and Housing

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Contd.. 1970 - Ministry of Labour •1989 - Ministry of Labour & Social Welfare •1990 - Ministry of Labour and Vocational Training •1997 - Ministry of Labour •2001 - Ministry of Labour, Youth Affairs and Mineral Resources Development •2001 - Ministry of Employment and Labour •2003 - Ministry of Labour Relations and Foreign Employment •2006 - Ministry of Labour Relations and Manpower •2010 - Ministry of Labour & Labour Relations

Institutions 1. Department of Labour 2. Office of the Commissioner for Workmen’s

Compensation 3. National Institute of Occupational Safety and

Health 4. National Institute of Labour Studies 5. Shrama Vasana Fund

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Vision "A Satisfied Productive Sri Lankan Labour force"

Ministry of Labour & Labour Relations

Summery of Labour Legislations

Terms and Conditions of Employment Wages Boards Ordinance The Shop and Office Employees Act

Social Security Employees Provident Fund Act Employees Trust Fund Act Payment of Gratuity Act

Occupational Safety and Health Factories Ordinance Workmen’s Compensation Ordinance

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Employment of Women , Young Persons & Children Maternity Benefits Ordinance Employment of Women , Young Persons and Children Act

Industrial Relations Trade Union Ordinance Industrial Dispute Act Termination of Employment of Workmen (Special Provision )Act

Others Sri Lanka Bureau of Foreign Employment Act Estate Quarters Act Estate Labour Ordinance

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Summery of Labor Legislations (Contd)

Wages Boards Ordinance No. 27 of 1941

• Main intention : regulate the terms and conditions of employment

including minimum wages

• Coverage : All employees except those employed by the State and those receiving industrial training in an institute meant for deaf, dump, blind or juvenile offenders or orphans.

• Wages Boards decide the following matters: – Minimum rate of wages – Minimum rate for OT – Hours of work – Holidays and Leave – Number and the duration of intervals for meals and rest

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Wages Boards • Tea growing and manufacturing

• Coca, cardamom & pepper • Rubber growing and

manufacturing • Coconut growing • Engineering Trade • Printing Trade • Tea export trade • Rubber export trade • Liquor and vinegar trade • Match manufacturing Trade

• Coconut manufacturing trade • Building trade • Beedi manufacturing trade • Baking trade • Brick and tile manufacturing trade • Ice, aerated water, fruit juice and

jam manufacturing trade • Coir mattresses and bristle fiber

export trade • Paddy hulling trade • Textile manufacturing trade

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• Garment manufacturing trade • Hosiery manufacturing trade • Biscuit and confectionary

trade • Tyre and tube

manufacturing, tyre rebuilding ,rubber and plastic goods manufacturing

• Tanning , footwear and leather goods manufacturing

• Motor transport trade • Cinema trade

• Nursing Home trade • Hotel and catering trade • Security service trade • Journalists trade • Retail and whole sale trade • Batik trade • Glassware manufacturing

Trade • Janitorial services trade • Pre school trade • 5 inactive trade

Wages Boards

Shop and Office Employees Act No. 19 of 1954

• Coverage : All employees within the definition of a shop & office ; • Shop : residential hotel, selling food or drinks, business of a

barber, hairdresser, launderer, photographer, dyeing or dry cleaning of wearing.

• Office : bank, insurance company, shipping company, estate

agent, stock company, / profession of architect, draughtsman, survey, news agency, advocate, travel & tourist agency./ office or clerical department.

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• Hours of work : 08 hours + 01 hour for rest / meal 45 hours per week / Overtime 12 hours per week • Weekly Holiday : On completion of 28 hours : 1 ½ holidays with pay • Annual holiday : If employment commenced during January 1st – March 31st =14 days April 1st – June 30th = 10 days July 1st – September 30th = 7 days October 1st – December 31st = 4 days Eight public holidays with pay • Casual leave : 7 days (1/2 day per month )

• Maternity leave : 84 (first 2 live births) & 42 days, no feeding intervals

• Letter of appointment : Regulation 17

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Shop and Office Employees Act No. 19 of 1954 (Contd)

Factories Ordinance No. 45 of 1942

• An ordinance to make provisions for the safety and welfare of

workers in factories.

• Factories are required to be registered. • Health

– Cleanness – Overcrowding – Temperature Control – Ventilation – Lighting Facilities – Drainage and Sanitary Conveniences – Medical Supervision

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• Safety – Ensure the safety of workers in the factory – Compulsory to securely fence dangerous machinery and their parts – Occupier to provide for the maintenance of such fencing – Where scalding, corrosive or poisonous liquid is stored, special

provisions for securely covering such substances or securely fencing them

Factories Ordinance No. 45 of 1942 (Contd)

• General Welfare • Supply of wholesome drinking water • Washing facilities • Accommodation for clothing • Facilities for resting for female workers • First Aid

Employment of Women, Children & Young Persons No.47 of 1956

• Children : Below 14 years / cannot be employed

• Young persons : age 16 – 18 can be employed with specific

restrictions

• Women : Permissible to work after 10 pm, subject to conditions

(2A of 1984 )

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Conditions for night work (Female workers only)

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•No women worker employed without her consent

•Written permission from the Labour Commissioner

•1.5 Time wage payment

•Female warden should be appointed

•Provide rest room and refreshment by employer

•Not for more than 10 days in a month

•No woman worker employ both day shift & night shift in

the same day.

Maternity Benefits Ordinance No.32 of 1939

• Benefits : 2 weeks + 10 weeks with pay (first 2 live births),06

weeks for others

• Amount payable : 6/7th of the wages

• Alternative maternity benefits: 4/7th of the wages

• Light work for the last 3 months

• No termination on account of pregnancy

• Two nursing intervals in 9 hours: morning and evening at times

specified by worker / exclude all other intervals until one year

old/ 30 minutes or one hour .

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Employees Provident Fund No 15 of 1958

Objective :Provide retiring benefits to employed persons

Exemptions : Domestic servants/Industrial training for offenders,

dump, deaf, or blind / charitable organizations less than 10

workers

Contribution : Employer 12 %, Employee 8%

Withdrawals :

• Male 55 years, female 50 years • At marriage (only for female ) • Total incapacity • Permanent departure from the country • Takes up a pensionable employment

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Earnings : • Wages salary or fees • Cost of living allowance or similar allowances • Holiday payments • Cash value of any cooked or uncooked food. • Meal allowances • Other forms as may be prescribed

Payment of contribution : • Before the last day of succeeding month

Surcharges : • less than 10 days -5% • 10 – 01 month – 15 % • 01 M -03 M - 20% • 03M -06M - 30% • 06 M -12 M – 40% • Over 12 months 50%

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Employees Provident Fund No 15 of 1958 (Contd)

Employees Trust Fund No 46 of 1980

Objective : To promote employees’ ownership , welfare and economic democracy through investments.

Contribution : Only by the employer in respect of each and every employee. 3% of total earnings

Payment exceptions : Similar as EPF Act

Surcharges : Similar as EPF Act

Self employed persons may become members

Withdrawals : once in five years

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Payment of Gratuity Act

Employees entitled – 5 workers or more employed during any day of the year – Period of service must five years or more

Mode of computation – For monthly rated workmen- ½ of the monthly salary x number of years

worked – For daily rated workmen - 14 days wages /salary for each year of completed

service

Deductions : Fraud, misappropriation of funds, willful damage to property, causing the

loss of goods

Salary : – The basic wage/salary – Cost of Living Allowances, and other similar allowances

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