Labour Laws in Sri Lanka Which Foster a Healthy Employe and Industrial Relations.


Labour law, Body of law that applies to matters such as employment, wages, conditions of work, labour unions, and labour-management relations. These are more important to make sure employee relations are happening in a company in a standard way and these employee and employer relations are meeting the country specific legal requirements. Since the labour laws have defined how every thing should happen between employee and employer both parties are bound by the law to maintain healthy relationship.Objective of the labour laws are the better employee and industrial relations. 

      By implementing labor laws, companies can keep their employees satisfied and happy.

To create mutual understanding between both parties minimizing conflict, these laws help to avoid employee disputes, which causes more clashes between them.


      Retain Employees


      If companies want to retain their employees, they need labor laws , which will guide them on how to       run the company and deal with This strategy will help ensure that talent stays with the company and       that everyone feels valued. Additionally, companies with good ratings have a positive reputation in          he business environment, which further adds to their overall value.


Protection of Employee Rights

 

All employees have rights that protect them in their specific work environment.These rights, including lunch breaks and healthy work environments, working hours among others, protect employees from workplace exploitation.In addition, employees are also entitled to sick leave and other regular leaves, which are defined in the company agreement.

 

The company's human resources department determines the implementation of these benefits.Placing the utmost importance on the well-being of employees ensuring fair treatment will ensure that they stay in the organization for a long time.

Therefore, with compliance with labor laws employee contracts, any company  can develop its to create a healthy relationship with employees.


Discrimination

 

      Labor law ensures that employees can work without discrimination in the workplace.

      They monitor the employer-employee relationship so that no discrimination is inflicted on the basis       of gender, ethnicity, religion or disability.

 

Lets look at what are the labour laws in Sri Lanka that affect the employee and industrial relations.


Laws relating to terms and conditions of Employment.


i.               Wages Board Ordinance.

ii.              Shop and Office employees’ (Regulation of Employment and Remuneration) Act.

iii.             Employment of Trainees (Private Sector) Act.

 

Labor relations.


i.               Trade Union Ordinance.

ii.              Employees Councils Act.

iii.             Industrial Disputes Act.

iv.             Termination of Employment of Workers (Special Provisions) Act.


Wage Boards.


Wage Boards are bodies established under the Wage Boards Ordinance 1941 (as amended) to ensure minimum wages and some other conditions such as leave, vacation and overtime rates in relation to specific occupations. As of 2009, wage boards were set up for 43 trades, including banking, beedi manufacturing, brick and tile trades, cinema, coconut and rubber, clothing, hotel and catering, janitorial services, metal quarrying, security services, textiles, tobacco, etc. These wage boards are composed of a equal number of employers' and workers' representatives in a given trade and up to three persons appointed by the Minister for Labour. Their main function is to set the minimum wage to be paid to workers in a given trade. Many workers pay more than minimum wage. The minimum wage can be imposed as a principle plus a special cost of living allowance according to the cost of living index or as a lump sum. Failure to pay at least the minimum wage is a criminal offence. However, employees can receive a higher wage by agreement with the employer.


Shop and Office Employees Act. 


One of the most important and relevant pieces of legislation in Sri Lankan labor law is the Shop and OfficeEmployees (Regulation of Employment and Remuneration) Act No. 19 of 1954. This law was the result of a report by a commission of inquiry set up in Sri Lanka in the 1940s to investigate the working conditions of the country's commercial clerks. The law applies to all employees as defined by a shop or office and consists of five parts as follows


i.    Working time regulations in shops and offices: health and well-being of employees Part.

ii.  Payment of remuneration. 

iii. Regulation of remuneration.

iv.  Closing hours Part.

v.   General matters.



Industrial dispute act.

An act to provide for the prevention, investigation and settlement of Industrial Disputes, and for matters connected therewith or incidental thereto.


    Industrial Dispute means any disagreement or difference between employers employers or between employers and workers or between workers workers which is related to employment or non-employment conditions of employment or person's working conditions.


Therefore, Industrial Disputes Act, 1947 provides machinery to resolve such disputes by following ways:

  • Collective Bargaining.
  • Grievance Redressal.
  • Arbitration.
  • Conciliation.
  • Adjudication.

Collective Bargaining.

  • Collective bargaining is a voluntary process used to regulate working conditions and relationships between employers, workers and their organizations, resulting in the conclusion of a collective agreement.
Grievance Redressal.
  • The grievance redress system helps resolve employee grievances in a formal manner which can be employee to employee or between employee and for an organization to function effectively, it is important that employees are satisfied and happy with their work. 
Arbitration.
  • Arbitration is often used in labor-related collective disputes .For example, a union may have a dispute with the employer over a salary increase. The union could agree with the employer to ask to appoint an arbitrator to hear the cause of the parties and then render an independent decision and impartial decision.
Conciliation.
  • Conciliation is a voluntary process in which a professional facilitator helps employers and employees resolve issues when their own efforts become unsuccessful. The process can be described as a facilitated search for agreement between the conflicting parties. The Industrial Relations board appoints a conciliator, called industrial relations officer, who acts as the impartial chairperson of the discussion and negotiation teams. The task of the IRO is to assist the parties in their efforts to reach a mutually acceptable dispute resolution.

Arbitration
  • Arbitration describes the legal process which makes it possible to expedite and render a judicial decision concerning a problem between two. The outcome of the process is a legally binding judgment and judiciary. Most arbitration hearings deal with disputes over money or non-violent offenses and result in the distribution of rights and obligations for all involved.

The concepts of law






Icta (no date) Labour code of Sri Lanka, Department of Labour Sri Lanka [Online].Available at: https://labourdept.gov.lk/index.php?option=com_content&id=65&Itemid=59&lang=en (Accessed: April 15, 2023).

Dr. K. Kuhathasan.(no date)Working hours and rest days. dailynews[Online].Available at: http://archives.dailynews.lk/2010/02/23/bus26.asp (Accessed: April 15, 2023).

ILO.(1996-2014 )Sri Lanka -Promoting jobs protecting people. Trade Unions Ordinance (No. 14 of 1935) (Cap. 138)[Online].Available at: https://www.ilo.org/dyn/natlex/natlex4.detail?p_lang=en&p_isn=50770 (Accessed: April 15, 2023).

Blackhall Publishing  (10 February 2023) Industrial disputes act: Volume IV.[online]Available at: https://www.srilankalaw.lk/Volume-IV/industrial-disputes act.html#:~:text=39%20of%202011%2C,connected%20therewith%20or%20incidental%20thereto. (Accessed: April 15, 2023).

Ministry of labour and foreign employment Amendment of legislations. (2022).Act. Ministry of Labour and Foreign Employment [online]. Available at: https://labourmin.gov.lk/amendment-of-legislations/ (Accessed: April 15, 2023).

Workplace Relations Commission (no date) complaints_dispute,Conciliation[Online]. Available at: https://www.workplacerelations.ie/en/complaints_disputes/conciliation/#:~:text=Conciliation%20is%20a%20voluntary%20process,for%20agreement%20between%20disputing%20parties. (Accessed: April 18, 2023).


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