Sri Lankan Labour Law

Today Sri Lankan Labour Law consists of more than forty Acts of parliament.

1) Terms and conditions of employment

•          The Shop and Office Employees Act
•          Wages Board Ordinance

2) Social Security

•          Employees Provident Fund (EPF)
•          Employees Trust Fund (ETF)
•          Payment of Gratuity

3) Industrial safety

•          Factories Ordinance
•          Workmen’s Compensation Ordinance

4) Industrial Relations

•          Industrial Dispute Act
•          Termination of Employment Act
•          Trade Union Act

5) Employment of Women and Children

•          Employment of Women, Young Persons and Children Act
•         Maternity Benefits Ordinance

  To Whom does all the legislation apply ?

 The law makes a distinction between a contract of service and a contract for service. Basically, a contract of service applies to an employee-employer relationship while a contract for service applies in the case of an independent sub-contractor. This distinction is most important as protection of employment legislation does not apply to independent sub-contractor.

 Contract  of servvice

• Employer -employee relationship
• Usually continuous relationship
• A duty of care is owed to employees as the employer
• The employer is generally liable for the vicarious act of employees
• Protective legislation applies to the contract

 Contract for service

• Employer - independent contractor relationship exists
• A relationship organized around the completion of once - off work.
• A duty of care, arising from occupation liability
• The company is generally not liable for the vicarious acts of independent contractors.