Sri Lanka Labour Law and Employment Regulations
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Sri Lanka Labour Law and
Employment Regulations
Two essential fields are often rooted in the work-life balance: labor law and workplace law
liberating and providing
protection to employees and protecting employers. Industrial peace, the
fundamental purpose of these
labour laws in Sri Lanka is to ensure rights for all workers and the
conditions of their employment.
The legal framework around employment in the country is
largely based on historical
factors, global labour laws, and the evolving socio-economic
landscape. HR professionals,
corporates and employees who should understand the labour
law of Sri Lanka for overcoming
the legal chaos and building a productive work environment.
Legal Framework Governing
Employment
Labour law and employment
regulations govern and protect the principles and practices of the
workplace, which guide what is
expected of you as an employee, how you are protected and
what employers are also entitled
to. Therefore these laws in Sri Lanka are to keep Industrial
Peace, to protect the rights
of the employee and to control the terms and conditions of the
employment. The regime governing
employment is also heavily influenced by Historical
Context, International labour
norms, and socio-economic context. Sri Lanka’s labour law is
important for human resource
management (HRM) professionals, businesses and employees to
say the least, as it is a way of
navigating the legal complexity of the country and ensuring that all
stakeholders have a
productive working environment (Jayawardena, 2021).
The legislation governing the
employment laws of Sri Lanka are the Shop and Office Employees
(Regulation of Employment
& Remuneration) Act No. 19 of 1954, the Factories Ordinance No.
45 of 1942, the Wages Boards
Ordinance No. 27 of 1941 and the Employment of Women, Young
Persons and Children Act No. 47
of 1956. These laws establish the fundamental basis for
working hours, minimum wage,
leave entitlement, safety in the workplace, and much more. The
Terminations of Employment
(Special Provisions) Act No. 45 of 1971, regulates
dismissals (Department of Labour,
2022). This law, however, shields against arbitrary
termination: if an employer
wishes to dismiss or terminate the employee, they must be approved
in advance, or they must be
compensated accordingly. And Industrial Disputes Act No. 43 of
1950 lays down structures for
resolution of work disputes by conciliation, arbitration or labour
tribunals (Fernando, 2020).
Wages, Working Conditions, and
Employee Rights
Minimum pay for various
industries is set by the Wages Boards Ordinance (the WBO). The
minimum wage is periodically
raised for inflation and economic reasons. In fact, the workers in
economy of shops, offices are
also entitled for 45 working hours in a week along with pay for the
overtime work beyond that
(Department of Labour, 22). Paid leave, such as annual leave,
maternity leave and public
holidays, is a legal requirement that employers must fulfil.
The Factories Ordinance:
Guarantees Health and Security of all workers in the area of work in
the provision and requirement of
proper air those devices, sanitation and safeguard the risk. In
this regard, the Employment of
Women, Young Persons and Children Act (11) incompliance
child labour and makes certain
provisions for female labour, particularly the night shift and
maternity benefits (Herath,
2021).
Industrial Disputes and
Resolution Mechanisms
The method of settlement of
labour disputes in Sri Lanka is different conciliation, arbitration and
adjudication of labour tribunals.
The Industrial Disputes Act gives employees legal recourse
against unlawful termination,
unfair labour practices or wages that are less than fair. Similarly,
Trade unions were another group
that became important for the purposes of workers’ rights and
collective bargaining but rates
of unionization have fallen as a result of a change in the
employment structure, an
increasing dependence on contractual work functions (Gunawardena,
2020).
Figure 1: Industrial Disputes and
Resolution Mechanisms
Challenges and Future Trends
In Sri Lanka, despite labour laws
(SEE) being progressive in intention, they are not implemented
effectively in practice. The rise
of a gig economy and digital platforms has created a job scheme
that exists outside of the
impulse of established legal systems, creating empty spaces in which
employees are without protection
(Fernando 2022). At the same time by globalization,
competition has increased,
forcing employers to pursue flexible labour policies and squeezing
their workers. The human labour
in the country is gradually but steadily pushing the rights of
individuals along with the
reforms in the legal system to strike a balance between the economic
growth and workers’ rights and
establish a labour market which is more equitable and more
inclusive (Department of Labour,
2023).
References
Department of Labour (n.d.)
Labour Legislations. Available at:
https://labourdept.gov.lk/labour-legislations/
(Accessed: 24 March 2025).
Dawood, S. (2023) ' Overview
of Labor Laws of Sri Lanka' SSRN Electronic Journal. Available
at:
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4750750 (Accessed: 24 March
2025).
Board of Investment of Sri Lanka
(BOI) (2022) Labour Standards and Employment Relations
Manual. Available at:
https://investsrilanka.com/wp-content/uploads/2023/01/Labour-Standards-
Employment-Relations-Manual-as-31-12-2022.pdf
(Accessed: 24 March 2025).
BIPO (2022) 'Sri Lanka
Labour Law & Employment Regulations', BIPO Times, July, Vol.
59.
Available at:
https://www.biposervice.com/wp-content/uploads/2022/07/BIPO-Times-July-2022-
en.pdf (Accessed: 24 March 2025).
National Institute of
Occupational Safety and Health (NIOSH) (n.d.) Shop and Office
Employees (Regulation of
Employment and Remuneration) Act. Available at:
https://www.niosh.gov.lk/images/pdfs/downloads/acts_and_cerculars/shop_and_office_employee
s_2.pdf (Accessed: 24 March
2025).
The Institute of Chartered
Accountants of Sri Lanka (CA Sri Lanka) (n.d.) Labour Law 1.
Available at:
https://www.casrilanka.com/casl/images/stories/EDBA/labour%20law%201.pdf
(Accessed: 24 March 2025).
JMC Lanka (n.d.) Labour Law.
Available at:
https://www3.jmc.lk/d/f/f41decb242534d5674ccf4290e893629.pdf
(Accessed: 24 March 2025).
Sri Lanka Parliament (n.d.)
'List of acts of the Parliament of Sri Lanka, 2010–present'.
Available at:
https://en.wikipedia.org/wiki/List_of_acts_of_the_Parliament_of_Sri_Lanka%2C_2010%E2%80
https://www.youtube.com/watch?v=cNHtJIzJK8U
%93present (Accessed: 24 March
2025).
An insightful overview of Sri Lanka’s labor laws and employment regulations! While the legal framework aims to protect both employees and employers, there’s a clear need for better implementation, especially in the context of the gig economy. Balancing economic growth with workers' rights is essential for creating a more equitable and inclusive labor market.
ReplyDeleteLabour law is fundamental to HR practices. Every organization must adhere to the country's labour laws and regulations implemented by the government, as well as the advice of the International Labour Organization. Essentially, these laws ensure job security and provide basic requirements such as insurance and medical benefits. They also help create accountability within the organization.
ReplyDeleteHowever, organizations should not only comply with these rules and regulations; they can also implement flexible HR policies. This approach contributes to creating a stress-free environment for employees.
Even though Sri Lankan labour law is well in place , enforcement is lacking , and the system it self is corrupted to get the most of the benefits for an employee
ReplyDeleteYou've thoroughly explained Sri Lanka's labour laws and employment regulations in your blog post. From my perspective, globalization has intensified competition, prompting employers to adopt more flexible labour policies—often putting pressure on workers. I appreciate the detailed insights you've shared on this topic and look forward to more content like this!
ReplyDeleteWell rounded overview of the legal framework governing wages, working conditions, and employee rights in Sri Lanka. The discussion on the Wages Boards Ordinance and the Factories Ordinance highlights the country’s commitment to fair labor practices and worker protection. Additionally, the explanation of industrial dispute resolution mechanisms emphasizes the importance of legal recourse and collective bargaining in safeguarding employee rights. As labor dynamics evolve with contractual work structures, ensuring fair wages and working conditions remains crucial for a sustainable workforce.
ReplyDeleteGreat post! I really enjoyed reading it. The insights you shared were very informative and well-explained. Looking forward to more content like this. Keep up the great work!
ReplyDeleteUnderstanding Sri Lanka's labor laws and employment regulations is essential for both employers and employees to ensure fairness and compliance. This blog provides a clear and informative overview of the key aspects of labor law in Sri Lanka.
ReplyDeleteIn addition to your Article,the laws and regulations are often outdated and do not address modern workplace issues, such as worker safety and health. The absence of a strong labour inspection system also hinders the detection and prevention of labour law violations, leaving workers vulnerable to exploitation. Overall, addressing these leakages is crucial to ensuring that workers in Sri Lanka are protected and treated fairly, and that the country can move towards a more equitable and just labour market.
ReplyDeleteInsightful article. Sri Lanka’s labor laws prioritize job security and social benefits. But but face enforcement gaps, especially in SMEs/informal sectors. Employers must adopt rigid termination rules, while employees lack coverage in emerging sectors comparatively in global picture.
ReplyDeleteYou are provided a clear overview of Sri Lankan labor laws and their impact on employment. HRM plays a vital role here by ensuring compliance with labor laws and encouraging fair practices. In Sri Lanka, HR teams can also support employees by recommending better working conditions and creating training programs to adapt to evolving regulations. A balanced approach can help Sri Lanka achieve its 2025 economic goals (IMF requirements) and overcome this economic crisis while safeguarding our workforce.
ReplyDeleteSri Lanka's labor laws and their role in protecting workers' rights and improving workplace conditions. It's clear that while progress has been made, there are still challenges in adapting these laws to modern work trends like the gig economy. Effective implementation will be key to ensuring all workers are protected.
ReplyDeleteInsightful overview of Sri Lanka's labour laws and employment regulations, highlighting their critical role in protecting employee rights and maintaining industrial peace. A proper understanding of these laws is essential for HR professionals and organizations to foster a legally compliant, fair, and productive working environment with in the organization.
ReplyDeleteThis article provides a solid and well-researched overview of Sri Lanka’s labour laws and employment regulations. The inclusion of specific legislation and their practical implications helps readers understand the legal landscape clearly. I especially appreciate the attention to emerging challenges like the gig economy and globalization, which make the content relevant to current realities. For improvement, consider refining the structure slightly to enhance flow—some sections could benefit from smoother transitions. Also, correcting a few grammatical inconsistencies (e.g., "liberating and providing protection…" could be rephrased for clarity) would enhance readability. Overall, an insightful and informative piece that successfully highlights both strengths and gaps in the current labour law framework.
ReplyDeleteSri Lanka labour law is important to protect employee and employers rights.asper the factory ordinance all rotation parts of the machines and equipments must be covered also pressure vessel and lifting equipment must be checked and certified by a charted Engineer.this is very important employee same as employer .
ReplyDelete