HND Level 07 Unit 03

Sri Lankan Labor law

By

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

grpriyankara@gmail.com

What is Law ?
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

Branches of Government
Legislature

Parliament of
Sri Lanka

Makes laws

Executive

President and
the Cabinet of
Ministers

Implements
the laws

Judiciary

Courts

Interprets
the laws

Labour Law
Governs and Regulates the Relationship of Employer
[Master] and Employee [Servant]
Labour Law = Employment Law = Law relating to Master
and Servant
Employment = Employer + Employee

10-Jun-14

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

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
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Ministry of Labour & Labour Relations

Vision
"A Satisfied Productive Sri Lankan Labour force"

Institutions
1. Department of Labour
2. Office of the Commissioner for Workmens
Compensation
3. National Institute of Occupational Safety and
Health
4. National Institute of Labour Studies
5. Shrama Vasana Fund

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
Workmens Compensation Ordinance

Summery of Labor Legislations (Contd)

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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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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Wages Boards
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

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

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 holidays with pay
Annual holiday : If employment commenced during
=14 days
January 1st March 31st
= 10 days
April 1st June 30th
= 7 days
July 1st September 30th
= 4 days
October 1st December 31st
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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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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Factories Ordinance No. 45 of 1942 (Contd)

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

General Welfare

Supply of wholesome drinking water

Washing facilities
Accommodation for clothing
Facilities for resting for female workers
First Aid

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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)

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.
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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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Employees Provident Fund No 15 of 1958 (Contd)

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 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- 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,
loss of goods

causing the

Salary :

The basic wage/salary

Cost of Living Allowances, and other similar allowances
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