Legal Aspect of Employment

Session 01:
Introduction

Prof. (Dr.) Prasadini Gamage

Ph.D. in HRM(Malaysia), M.Sc. (Mgt.)(Sri Jaya.), B.Sc.
(Bus. Admin.) Special (First Class) (Sri Jaya), Attorney-at-
Law, Commissioner for Oaths, MCIPM Sri Lanka
 2 Learning Objectives
 To define Law
 Describe the purposes of law
 How Labour law relates to HRM?
 Evolution of Labour law internationally and locally
 Sources of Labour Law in Sri Lanka
 Classification of labour laws in Sri Lanka
Introduction
Definition of Law
1. “Law is the body of principles recognized and applied by the
state in the administration of justice.” – Salmond

2.“ Law is a command of sovereign”- Austin.

3.”Law is the supreme power of a state commanding what is

right and wrong”– Blackston

3
 4

Broadly speaking there are three

types of rules

1. Rules which forbid certain types of

behaviour under threat of penalty.

2. Rules, which require people to

compensate others.

3. Rules, which specify what must be

done to order certain types of human
activity.
Purposes of Law
 Maintenance
5
of peace & order in the society
 Achievement of equality

 To provide social security

 Protect and stop wastage of resources

 Help in development of new technology,

commerce & trade etc.
 Classification of Law
6

Law

Criminal Law Civil Law

-Law of Property
-Law of Delicts
-Law of Persons

-Employment Law
-Business Law
-Law of Contract
 HRM & Employment Law
7

 HRM means the policies and practices

involved in managing people
 Rules and regulations which help to
regulate the relationship between
employer- employee.
 Evolution of
8
Employment/Labour Law
 International Background
(English Background)

 Sri Lankan Background

International Background
9

 Position of the salve in the Egyptian &

Roman civilizations- slave possessed no
rights, no legal remedies were developed

 .
10
Feudal System
 11 Mercantilism Era
 Mercantilism is a national economic policy that is
designed to maximize the trade of a nation.
Mercantilism was dominant in modernized parts of
Europe from the 16th to the 18th centuries[
 The Anglo-Dutch Wars were
fought between the English and
12
the Dutch for control over the seas
and trade routes.

Mercantilism was centered on England and France, and it was in these

states that mercantilist policies were most often enacted. The policies
have included:
•High tariffs, especially on manufactured goods
•forbidding colonies to trade with other nations
•monopolizing markets with staple ports
•banning the export of gold and silver, even for payments
•subsidies on exports
•promoting manufacturing and industry through research or direct subsidies
•limiting wages
•maximizing the use of domestic resources
Continuation of 8…..
13

 The earliest restrictive labour legislation is found

in 1351 in the statute of labourers- reduce
labourer’s bargaining power, controlled the
freedom of labour contract and criminal
punishments
 Statute of labourers of 1562 – issued by the
parliament to stop mobility of labour from rural to
urban , price of labour
 Industrial Revolution
14

 Industrial revolution is defined as the changes in manufacturing and

transportation that began with fewer things being made by hand but instead
made using machines in larger-scale factories.
 This process began in Britain in the 18th century and from there spread to
other parts of the world.
 The main features involved in the Industrial Revolution were technological,
socioeconomic, and cultural. The technological changes included the following:
(1) the use of new basic materials, chiefly iron and steel,
(2) the use of new energy sources, including both fuels and motive power
3) the invention of new machines, such as the spinning jenny and the power loom 
(4) a new organization of work known as the factory system, which entailed
increased division of labour and specialization of function, (

15
Continu……………
16

 Impact of the industrial revolution of the 18th century

on the development of labour law.
 The Criminal Conspiracy Doctrine (1721)
 The Civil Conspiracy Doctrine – void contracts-
altering wages, usual hours or time of work, criminal
offense to picket or boycott
 The Contractual Interference Doctrine
–Act made it a strike is not legitimate
 The Labour Party was formed
 The UK Parliament passed number of Acts in favour of
workers from time to time
17 Sri Lankan Background

 Labour Law in Sri Lanka, commenced

from about 1830 with the growth of
plantation industry
 The need to look to India for labour due
to disinclination of the indigenous
population to serve on plantations.
 Much of the labour legislations were all
to promote plantations
 Department of the controller of Indian
immigrant labour established in 1923
 With the beginning of capitalist
18
development, new social classes emerged

- Work force on immigrants from India

- Entrepreneur class of British Planters
- Ceylonese middle class
- A group of White collar workers
- Urban working class of skilled and
unskilled workers (Jayawardene,1971)
 Factors that delayed the rise of
19 a plantation labor movement

 Lack of education and political awareness

 Isolation from the rest of society
 Rigid disciplinary controls on plantations

 The first signs of labour restiveness appeared

among the urban working class.
- The resort to strikes was a criminal offense
under the Labour Ordinance of 1865 – 1922)
 20

 Up to the period 1927 various Indian Labour

statutes were promulgated by the
government.
 Indigenous labour struggled against the state
local trade union leaders to introduce labour
law to all classes of labour.
 The Department of Labour was established in
1931
 A Minister was appointed to regulate labour
 More and more statutes were introduced after
the year 1931.
Contin..
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 At present there are 45 labour

statutes in the operation of which
some are more or less obsolete and
have any academic interest.

 With independence in 1948, the

country was admitted to the ILO,
heralding many important
developments in the system of labour
law, labour relations and of labour
practices.
 Source of Employment Law
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The Labour Law of Sri Lanka could broadly

be said to originate from the following.
 Statutes – Their objective is the
regulation of minimum terms and
conditions of employment.

 The awards, orders, and judgments

 Collective agreements entered in to

between trade unions & employer
 Classification of Labour Laws
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 Statutes on the regulation of wages and

conditions
 Statutes on employee welfare
 Statutes on industrial relations
 Statutes on obtaining jobs & training
 Statutes on women, young persons and
children
 Statutes on Indian labourers
Statutes on regulation of Wages
& Conditions of Employment
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 Employees holiday Act No 06 of 1959

 Holiday Act No 29 of 1971
 Privilege Leave (Private) Law Act No 14 of
1976
 Budgetary Relief Allowance Act No. 18 of
1978
 Fuel Configuration Five Day Week Act
 Special Allowance of Workers Law
 Supplementary Allowance of Workers Act,
 Wages Boards Ordinance No 43 of 1941
 Shops & Office Employees Act No 43 of 1950
 Statutes on Employee Welfare
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 Workmen’s Compensation Ordinance No

19 of 1934
 Factories Ordinance No 45 of 1942
 Employee Provident Fund Act No 15 of
1958
 Employees Trust Fund Act No 46 of 1980
 Payment of Gratuity Act No 12 of 1983
Statutes on Industrial Relations
26

 Trade Union Ordinance No 14 of 1935

 Industrial Disputes Act No 43 of 1950

 Termination of Employment of
workmen Act No 45 of 1971

 Employee Council Act No 12 of 1979

Statutes on Obtaining Employment
&27 Training
 Service Contracts ordinance No 11 of 1865
 Registration of Domestic Services
Ordinance No 28 of 1871
 Chauffeurs Regulation Ordinance No 23 of
1912
 National Apprenticeship Act No 49 of 1971
 Employment of Trainees Act No 08 of 1978
 Foreign Employment Agency Act No 32 of
1980
 Sri Lankan Bureau of Foreign Employment
Act No 21 of 1985
Statutes on Women ,Young
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Persons & Children

 Mines ( Prohibition of Female Labour
Underground) Ordinance No 13 of 1937
 Maternity Benefits Ordinance No 32 of 1939
 Mines, Quarries and Minerals Ordinance No 55 of
1947
 Employment of Women, Young Persons &
Children Act No 47 of 1956
 Statutes on Indian Labour
29

 Estate Labour ( Indian) Ordinance No 13 of

1899
 Medical Wants Ordinance No 17 of 1880
 Diseases (Labourers) Ordinance No 10 of
1912
 Thundu Prohibition Ordinance No 43 of 1921
 Indian Immigrant Labour Ordinance No 01 of
1923
 Minimum Wages (Indian Labour) Ordinance
No 27 of 1927