Sources of Labour Law

By Dilanga Lankathilaka
Introduction

 As you are aware, labor law is established to promote Social Equity,

Social Security, Social Justice and National Primacy.

 Before facing the analysis of the sources of Labour Law and its
application principles, it is necessary to refer to a classic Common Law
distinction which is particularly relevant in Labour Law: "sources of Law"
and "sources of obligations”.
Sources of Law and Sources of obligations

 "Law" refers to a set of established rules,

 While "obligation" refers to a specific duty placed upon
an individual, requiring them to perform a particular
action or refrain from doing something.

 The Sources of Law - are the legal instruments that

provide the basis for legal standards.
 Sources of Obligations - are the legal instruments that
give rise to people's legal duties.
Sources of Law

 Material Sources of Law: The authorities from

which laws can spring and derive force and
validity, i.e, the forces with legislative power
(Parliament, the government, society itself, etc).

 Formal Sources of Law: The formal channels

through which law is shown, that is, the legal
standards (Constitution, statutes, customs,
collective agreements, etc.)
 Sources of obligations
 obligations can come from the law, contracts,
unlawful acts, or negligence.

 This applies to employment relationships too,

where the rights and responsibilities of
employees and employers can come from
legal standards or from the employment
contract that both parties agree to.

 It's important to note that labor law cares about whether a right or responsibility comes
from the law or the contract because it affects how that right or responsibility is
enforced or modified.
Sources of labour Law in Sri Lanka
 Primary sources include statutes and case law, while secondary sources include books,
articles, and other academic writings. The following are the primary sources of labor
law in Sri Lanka.

 Constitution

 Common Law

 Labor Laws - a collection of statutes that govern

the employment relationship between employers
and employees.
Sources of Labour Law in Sri Lanka
 Judicial Decisions/ Case Law

 Collective Agreements

 International Labour Standards

 Regulations and Guidelines:

 Example, regulations on minimum wages,
occupational safety and health, and
working hours.
Legal Sources relating to Industrial, Employment and
Labour relations

 Laws on Social Security

 Laws on Welfare and Well-being of Employees
 Occupational safety and health and Workmen’s compensation
 Laws relating to terms and conditions of Employment
 Labour relations
 Law relating to Plantations and Estate labour
 Foreign Employment
Laws on Social Security
 Employees Provident Fund Act

 Employees Provident Fund (Special Provisions) Act

 Employees Trust Fund Act

 Employees Trust Fund (Special Provisions) Act

 Payment of Gratuity Act

Employees Provident Fund Act

 Enacted on1958 - there have been nine

Amending Acts
 Monthly, employers must transfer 20% of their
employees' total earnings to the Central Bank
for the Fund.
 8% is contributed by the employee, 12% is
contributed by the employer.
 Failure to transfer EPF contributions results in
surcharges ranging from 5% to 50%.
Employees Provident Fund (Special
Provisions) Act
 Enacted in 1998 - with the aim of making amendments to the Employees
Provident Fund Act No. 15 of 1958. The purpose of this act is to provide a
legal framework for the establishment and management of the Employees
Provident Fund (EPF) and to ensure the welfare and social security of
employees in Sri Lanka.
 Employees Trust Fund Act
 Established under Employees' Trust Fund Act No. 46 of 1980 and is
managed by the Employees' Trust Fund Board.

 Employers are to contribute a percentage of their employees' monthly

salary to the fund. The current rate of contribution is 3% of the
employee's monthly salary, and the employer is to contribute an equal
amount (3%). Total 6%.
 Employees are eligible to receive benefits from the ETF after completing
a minimum of six months of continuous service.

 The benefits available to employees include refunds of contributions

made to the fund, housing loans, medical, educational and various
other assistances and loans.
Employees Trust Fund (Special
Provisions) Act
 The Act has undergone several amendments since its inception, including the
Employees' Trust Fund (Amendment) Act No. 8 of 1998 and the Employees' Trust
Fund (Amendment) Act No. 30 of 2018. These amendments expanded the
scope of the ETF, increased the maximum amount of benefits payable, and
introduced new provisions related to the management of the fund.
Payment of Gratuity Act
 Enacted in 1983 and is applicable to all
employees who have completed at least five
years of continuous service with an employer.

 The purpose is to provide a lump sum payment to

employees as a reward

 Gratuity payment is calculated based on the

employee's last drawn salary and the number of
years of service completed.

 Minimum amount of gratuity payment to be made

is equivalent to 15 days of salary for each
completed year of service. Employers are free to
pay more than the minimum amount specified in
the act, but not less.
Laws on Welfare and Well-being of
Employees
 Employment of Women, young Persons and Children Act
 Maternity Benefits Ordinance
 Employment of Females in Mines Ordinance
 Employment of Women, young
Persons and Children Act
 Enacted in 1956, with subsequent amendments in, 1959, 1961, 1978,
1981, 1990, 2003, 2016.

 The Act:
 Regulates their working conditions.
 Prohibit certain types of work
 Set maximum working hours
 Minimum age requirements for employment.
 Entitles the women to be treated equally and prevent discrimination.
 Prohibits the employment of children below the age of 14, except in certain
circumstances, such as in family businesses or in artistic performances.
 Allow young workers of 14 - 18 subject to restrictions on working hours and
types of work.
 Sets out safety requirements for workplaces, including the provision of
protective equipment and training.
Maternity Benefits Ordinance

 Enacted in 1939 amended in 1949, 1953, 1965,

1971, and 2018.
 The Act:
 Provides for maternity benefits to workers in the
public and private sectors.
 Worker who has no children or has only one child is
entitled to a period of twelve weeks for which
maternity benefits must be paid by the employer.
However, in the event the woman has two or more
children, she will be entitled to a 6 weeks period of
maternity benefits.
 Provides for the protection of women workers
against discrimination on the grounds of
pregnancy, childbirth, or maternity leave.
Employment of Females in Mines
Ordinance
 No female of any age at any time, who have not been exempted by
regulation, shall perform or be employed on any underground work in a mine
or enter a mine for the performance of any work.
Occupational Safety and Health
and Workmen’s Compensation
 Factories Ordinance
 Workmen’s Compensation Ordinance
 Factories Ordinance
 Enacted in 1942 amended in 1950, 1952, 1958, 1961, 1971, 1981, 1993, and 2003.

 The Act:
 Standardize ventilation, lighting, drinking water, resting places etc. and in workplace
 Appointment of factory inspectors
 Provides for prevention of accidents and occupational diseases, hazardous substances
 Provides for conditions in employment of women and young persons,
 Licensing of factories,
 Establishment of a National Council for Occupational Safety and Health
 Provisions to prevent sexual harassment in the workplace.
Workmen’s Compensation Ordinance

 Enacted in 1934 and amended in 1957, 1959, 1971,

1981, and 1997.
 The Act
 Provides for compensation to workers who suffer
injuries or illnesses as a result of their employment.
 The compensation covers medical expenses, loss of
earnings, and other related costs incurred by the
worker or their dependents.
 Sets out the procedures for making claims,
investigating claims, and determining compensation.
 The law applies to all employers in Sri Lanka,
regardless of the size or type of their business.
Laws Relating to Terms and
Conditions of Employment
 Wages Board Ordinance
 Shop and Office employees’ (Regulation of Employment and
Remuneration) Act
 Employment of Trainees (Private Sector) Act
Wages Board Ordinance
 Enacted in 1941 amended in 1957, 1958,
1972, 1981, 1985, 1991, 2006, and 2011.
 The Ordinance

 Establishment of Wages Boards, which are

responsible for setting minimum wages and
other conditions of employment for workers in
specified industries.

 The Wages Boards comprise representatives

of workers, employers, and government
officials.
 Shop and Office Employees’ (Regulation
of Employment and Remuneration) Act
 Enacted in 1954 in 1958, 1964, 1973, 1978, 1994,
and 2003.
 The Act
 The Act sets out minimum conditions of
employment for shop and office employees,
including working hours, overtime pay, annual
leave, sick leave, and public holidays.
 Establishes a system for calculating and paying
fair and reasonable wages.
 The law applies to all shops and offices, including
government departments, banks, and other
commercial establishments.
 The Act provides for the establishment of a Shop
and Office Employees' Council,
 Employment of Trainees (Private
Sector) Act
 Enacted in 2007 to regulate the employment of
trainees in the private sector.
 The Act
 Sets out minimum conditions for the training and
employment of trainees, including the duration of the
training period, the wages and benefits to be paid.
 Establishes a National Apprentice and Industrial Training
Authority (NAITA), which is responsible for promoting and
coordinating the training and employment of trainees.
 The NAITA is also responsible for setting standards for
training and ensuring that employers comply with the
provisions of the Act.
Labour Relations

 Trade Union Ordinance

 Employees Councils Act
 Industrial Disputes Act
 Termination of Employment of Workers (Special Provisions) Act
 Trade Union Ordinance
 Enacted in 1935 amended in 1952, 1958, 1964, 1971, and 1981.
 The Ordinance
 Sets out the requirements for the registration of trade unions
 Provides for the rights and privileges of trade unions,
 Collective Bargaining,
 Right to Strike
 Right to represent their members
 Establishes a Registrar of Trade Unions
Employees Councils Act
 Enacted in 1971 amended in 1981, 1988, and 1992.

 The Act
 Sets out the requirements for the establishment of
employees' councils,
 Establishes a mechanism for resolving disputes
between employers and employees through the
mediation of employees' councils.
 Intended to promote employee participation in
workplace decision-making, facilitate communication
between employees and management.
 Provides an alternative mechanism to trade unions for
resolving workplace disputes and advancing the
interests of employees.
Industrial Disputes Act
 Enacted in 1950 in 1957, 1964, 1969, 1971, 1981, and 2015.
 The Act
 Sets out the procedures for the resolution of disputes between employers and
employees, including the role of conciliation, arbitration, and labor tribunals.
 Establishes a framework for the recognition of trade unions and the negotiation of
collective agreements between employers and employees.
 Provides a comprehensive framework for the resolution of disputes, from the initial stages
of conciliation through to arbitration and the enforcement of decisions.
 Termination of Employment of
Workers (Special Provisions) Act
 Enacted in 1971 amended in 1979, 1990, 1996, and 2004.

 The Act
 Sets out the circumstances under which an employer may
terminate the employment of a worker, including for reasons
of misconduct, inefficiency, redundancy, and illness.
 Mandates employers to give notice of termination to
workers and to pay them compensation in certain cases of
termination.
 Intended to protect workers from unfair and arbitrary
termination of employment and to provide them with a
measure of job security.
 Provides workers with the right to challenge the termination
of their employment through the courts and labor tribunals.
Law Relating to Plantations and
Estate Labour
 Estate Labour (Indian) Ordinance
 Medical Wants Ordinance
 Indian Immigrant Labour Ordinance
 Minimum Wages (Indian Labour) Ordinance
 Trade Union Representatives (Entry in Estates) Act
 Estate Quarters (Special Provisions) Act
 Allowances to Plantation Workers Act
 Services Contracts Ordinance
 Estate Labour (Indian) Ordinance
 Enacted in 1889 and amended in 1918, 1929, 1950, 1954,
and 2003,
 The Ordinance provides for the registration of Indian
laborers, their employment conditions, their wages, and
their welfare.
Medical Wants Ordinance
 Enacted in 1858 amendments in 1891, 1893, 1920, 1948, and 1981.
 Establishes the legal framework for the establishment and regulation of hospitals,
dispensaries, and other medical facilities in the country.
 Provides for the appointment of medical officers, the regulation of medical
practice, and the protection of public health to achieve the equity of
healthcare services.
Law Relating to Plantations and
Estate Labour
 Estate Labour (Indian) Ordinance
 Medical Wants Ordinance
 Indian Immigrant Labour Ordinance
 Minimum Wages (Indian Labour) Ordinance
 Trade Union Representatives (Entry in Estates) Act
 Estate Quarters (Special Provisions) Act
 Allowances to Plantation Workers Act
 Services Contracts Ordinance
Foreign Employment

 Sri Lanka Bureau of Foreign Employment Act

Sri Lanka Bureau of Foreign
Employment Act
 Enacted in 1985
 The main objective is to provide for the registration,
regulation, and welfare of Sri Lankan migrant workers.
 Established the Sri Lanka Bureau of Foreign Employment
with the power to issue licenses to foreign employment
agencies and to regulate the recruitment, training, and
placement of migrant workers.
 All foreign employment agencies must be registered
with the Bureau, and workers must be recruited through
registered agencies.
 Provides provisions for mandatory insurance coverage,
minimum wage requirements, and repatriation
assistance.