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Labour Law in Sri Lanka and Industrial Dispute

Labour Law in Sri Lanka and Industrial Dispute




Introduction about Labour Law

This law is related to employer & employee relationships. Industrial relation is an important aspect of the development of the country. To maintain the industrial relation in good condition, labor law is essential. Labour was introduced in Sri Lanka by the British government from about 1827. To strengthen, the employee (who is the weakest party) labor law are introduced to society.

• As welfare legislation's (Minimum wage, health, safety, welfare, termination of work, etc.)

• As a modification (safety health in factories, hours of work, holidays, payment )

Labour Law in Srilanka & Industrial Dispute
Labour Law in Srilanka & Industrial Dispute



Some of the legislation related to labor law in Sri Lanka.

• Minimum wages ordinance 1927

• Employment of women, young persons & children ordinance 1923

• The shop & office act No 66 1938

• Employment provident fund act

• Industrial dispute act No 43 1950

• Termination of employment act no 45 – 1971

• Employs trust fund act

• The gratitude act No 12 1983


Types of employment

Employees are designate under various categories by the employer. The designations which are prevalent in Sri Lanka are,

  1. Probationers:- A probationer is an employee who enters into a contract of service with an employer.
  2. Apprentice:- There is no contract service.
  3. Fixed-term contract employee:- A fixed-term employee is a person who is under a contract of service with the employer wherein he is agreed to serve for a terminated period of time.
  4. Casual employee:- A casual employee is one employed by chance on no contract to employ.
  5. Seasonal employee:- This is the form of employment where an employer engages employee during the particular season during the year.




Industrial dispute

Industrial dispute means any dispute or difference between


- An employer & employee

- Employers & employee

- Employee & employee

Connected with the subject matter related to,


- Employment

- Non employment

- Terms of employment


Industrial dispute settlement

Methods used;

1. Negotiation

2. Conciliation

3. Arbitration




Workman compensation

Workman compensation means compensation for the injured workman. Workman compensation is legalized with workman compensation ordinance No 19 of 1934. According to this ordinance liability of compensation is given as follows.

- If a person injury is caused to workman by accident arising out of and in the cause of his employment his employer shall be liable to pay compensation in accordance with the provisions of the ordinance.

But workman is not liable to get compensation,

a. If injury doesn’t result in total or partial disablement of the workman for seven days.

b. Willful disobedience of the workman to an order expressly given for the purpose of safety of the workman

c. Willful removal or disregard of safety.


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