1. The document outlines various labor laws and HR policies regarding employee attendance, leave, allowances, overtime, probation, termination, and other issues. It discusses rules for absence, statutory allowances, apprenticeships, bonuses, boycotts, drivers, termination of employment, wages boards, and other topics. 2. Specific policies covered include punishment for absence, medical leave certification, inquiry procedures, collective agreements, records required, and allowable overtime and working hours for different employee categories. 3. The document provides a detailed reference for understanding Sri Lankan labor law compliance and managing employee issues according to relevant statutes and regulations.

1. Training Program HR_
1. Absence:
By signing a contract employee obliged to render service & absence from work
unless excused by employer would be conduct contravening such obligations:
Conditions on contract letter-
Steps to take on Unauthorized absence: Even when an employee has leave to his
credit if not apply or approved the leave it would consider as Absence
Vacationof post (VOP)
Every absence cannot be taken as VOP. Employer must bear the burden of proving
that the employee was have the intention of not to return to work.
Steps to take
Permanent staff:
1. Employee should be written to requesting to report forwork immediately and
to give Explanations within specified days.
2. Send him VOP letter in register post.
Telimail – 3rd Day.
3rd
day- Informing letter.
7th
Day – VOP Letter.
Absence due to reasonbeyond employees’ control
Principle:- such absence can be set off against Annual or Off days or employer has
policy of Not Paying but employing the individual.
 Curfews.
 Transport Shortage.
 Election.

2. Punishments For Absence
 Warning fromDepartment Head.
 Show cause- 2nd
warning,(No Bonus , Increments)
 Show cause Followed by inquiry- Final Warning
 Show cause Followed by inquiry- Dismissal
2. Allowance – Statutory
Cost Of living - Budgetary Relief Allowance payable in terms of Act No.36 of 2005.
 Must pay Rs.1000/- to whoever earns less than 20,000/- and must be take in
to E P F & E T F calculation. Holiday pay, overtime, maternity benefits,
Gratuity.
 Proportionate Deductions may made fromthe allowance on account of “ No
Pay”
 Day workers – Rs.40/- up to maximum Rs.1000/- Per Month.
 Monthly Salary Exceed 20,000/- not exceeding 21,000/- To be paid the
balance as BRA. ( Marginal Relief)
According to the new 2015 BRA , (May,2015) employer shall pay Rs.1500 Up to 1st
Jan,2016 and from2016 Onwars 2500/- per anum , ( This is under the discussion as
there are sevral gray areas which has not been clear yet. ( It is advised that you
mention this desperately in employee pay sheets) and the limits has extended to pay
up to 40,000/- basic salary earners.
3.0 Apprenticeship / Trainee, orTrainees Act
Under the common law of employer and employee, an apprentice or Trainee does
not have a contract of service and is there fornot an employee.
 Legal background - (NAITA) – Powers of the Authority to be reviewed before
signing the agreement.
 Provisions of Following acts not applicable to Trainees.
o Shop and office act
o Industrial dispute act

3. o Wages Board ORD
o Trade union act
o Termination of employment act
o Collective Agreement act.
 It is adviced to take consent from NAITA orapproved government body and
consents from guardians if the trainee is underage.
 no trainee shall put OT and No underage Trainee shall Trained after, 10.00 Pm
4.0 Bonus
A Bonus is no longer regarded as a discretionary payment . not regarded as industrial
dispute.
Profit Bonus.
Customary Bonus. (Paid on Fixed Quantum)
Attendance Bonus.
Ex gratia Payment .
5.0 BOYCOTT
Stop buying orusing the goods orservices of a certain company or country as a
protest; the noun boycott is the protest itself.
6.0 CAR DRIVERS
Drivers of Office cars covered by Shop office act and drivers of card which are plied
for hire are covered by the wages Board - motor Transport Trade.
7.0 Termination of employment (Special Provision Act).
A person has worked fornot less than 180 days in a period of twelve (12)
consecutive months immediately preceding his termination would be covered by act.
Failure to do so would renter termination Null and Void.
Note :- As a trend Certain Inductries now employing staff under contract basic and
they take it as a granted authority to terminate employees without renewing

4. contract and replacing that post with new employee, which can be questioned under
the termination act.
08.Wages Board ordinance ; Shop and Office Act:-
Employees who are not covered by Shop and office act are covered by wages Board
act.
Wages Board Ordinance:
plantation, agriculture and manufacturing industries
Minimum Wages have been Instructed under this act.
 A normal working week cannot exceed 48 hours
 All work over and beyond that period is considered overtime.
 A maximum of 12 hours of overtime per week is permitted.
 According to Section 24 (d) the payment forwork on holidays should not be less than
the overtime rate
 If no overtime rate has been determined, then payment must be calculated at one-
and-a quarter times the rate normally applicable to such work
 A holiday must be given with or without remuneration on a day within a specified
number of days
 In the case of any special class of workers, the payment should not be less than one
and a half times the rate normal to such work, without the grant of a substitute
holiday.
The Shop and Office Employees Act
 Working hours on any one day shall not exceed 8 hours, and
 In any one week shall not exceed 45 hours.
 This rule is not applicable toany person who holds an executive ormanagerial position
in a public institution.
Factories Ordinance Section 67 - the work of women and young persons:
 The total hours worked, exclusive of intervals for meals and rest, shall not exceed 9
hours in any day nor exceed 48 hours in any week
 The working of hours of a person above the minimum age foremployment (14 years)
but less than 16 years shall not exceed 12 hours per day – not before 6 a.m. and not
after 6 p.m.

5.  The working hours of those below 18 years, cannot go beyond 8 p.m. and not beyond
1 p.m. on one day of the week.
 Both women and young persons cannot be employed continuously fora spell of more
than four and a half hours without an interval of at least half an hour.
What are the rules for night work for women?
As per the Factories Ordinance, while women can be employed in a factory and
permitted to work throughout the night:
 No woman shall be forced to work at night against her will
 The Commissioner ofLabourmust sanctionthe factoryto employ women after10 p.m.
at night
 Women have worked from 6 a.m. to 6 p.m. cannot be employed after10 p.m. on any
day
 Night work by women shall be paid at a rate not less than one and half times the
normal payment
 Female wardens must be present in the factory to oversee the welfare of women
workers
 Women workers must be provided with restrooms and refreshments by the employer
 A woman cannot be employed for more than 10 days of night work during any one
month
 Women and young persons over the age of 16 years may be employed forovertime,
provided that this does not exceed a total of 100 hours annually or 6 hours in a week
and no more than 25 weeks in a year.
Workmen Compensation ORD:-
provide forthe payment of compensation to workers who are injured in the course
of their employment by an accident arising out of the and during the course of their
work.
8.0 Classes of work,
It is important to mentioned the Class in letter of appointments as it describe the
certain entitlements forOT/Union Membership etc..
Executive

6. Non Executive
To be part of the Express terms of his contract.
9.0 CLOSINGORDERS
Companies may be wound up in accordance with the provisions of the Companies
Act and the Companies Winding up Rues. Winding up of a company may be either by
court, voluntarily, or subject to the supervision of Court. Hotels and Restaurants are
exempted
10. Collective Agreements
Can be in between Employer and employee ortrade union.
Must be signed by both parties and must be transmitted to commissioner of labor.
And to be publish on a Gazette.
These Agreements deal with
Hours of work
Overtime
Leave
Etc….
11. Communicable Diseases.
Tuberculosis & Leprosy
a. More than 1 years service – 3 months leave with Full pay
b. Not cured to be paid Half pay leave, One month for Eachyear of service up to
18 months. – Proved By Government Director Social service or medical
certificate from GVT Hospital./ Institute.
Cholera
Sick leave or paid special leave forperiod of illness must be certified form
Government Medical Officer.

7. Chicken Fox/Measles/Sore eye ..
Must give special leave, if exceeded credit leave shall be on No pay.
12. Conduct of employees
Outside work place
 Occasions that employer can concern of outside actions are related to take
deciplinary actions .
a. Employees hold position of responsibility if responsible forfraud, cheating or
misappropriation.
b. Commit act of misconduct against superior but connected to the employment
relationship .
Can be taken proper disciplinary actions
During Strikes
Assaulting other employees or superior .
13. Convicted or On Remand.
Summon by the courts – employee can apply the leave that is consider as approved
And there is no such a rule that employee canbe terminated? .
14. Criminal Conduct
 Guidelines
1. An employer not bound to wait forthe decision of a Criminal Court . must
proceed with disciplinary actions .
2. There are some occasions which is not proper conduct domestic inquiry when
there is a case at criminal court.
Unless:-
 The acquittal was on technical grounds
 When certain information was not admitted in the criminal
courts.

8. 3. Necessity to assist the police and collect background evidences .and case
details that may need to produce on labour tribunal in later where even he
was not guilty forcriminal but as a disciplinary matter.
4. Communicate by proper notice on disciplinary actions on him.
15. Daily Pay
Daily pay under shop and office has to be paid by considering as 30 days for a month.
16. Inquiry Procedure
1. When to Hold
Employer must issue a proper show case as soon as possible when reported the
incident .
At the time of Omissions/breach of obligations of expressed orimplied
obligations/insubordination/ dishonesty/property damage.
Steps
 Conduct preliminary investigation and ascertain whether there is a prima facie
case for issue a show cause letter.
 Must take written obligation from witness.
 If the accusedemployee refuses to make a statement he cannot be compelled
to do so.
 Issue show cause with reasonable notice.
 Must provide reasonable opportunity by doing so to let him defense himself.
 Collect all the evidences.
 Inquiry must be by impartial person (labor representator/Industrial
adviser/labor official).
Show Cause Letter
See the Sample letter.

9. Suspension with pay or without pay
It is to be determining according to the terms and conditions of the appointment.
Receipt of Explanation- if not accepted that has to be communicated with facts .
In summarize, steps at an inquiry
1. Record time, place, and presence of the accused employee.
2. Reading charges and explains same.
3. Recording Evidence of witness and documents.
4. Statements from accusedemployee to be recorded.
5. Record of evidence form accused employees’ side.
6. Inquiry report
17. Employee and Employer Agreement
Please refer the letter of Contract or letter of appointment and its conditions of
employment must be contended below,
Address, Date of Appointment, End of Contract, pensioning age 55 etc..
Executive or NonExecutive
Basic Salary
Statutory Pay (BRA)
Allowances
EPF/ETf Contribution
Leave entitlement
Off Days Details
Place of Work
Transferability
Organizational Rules
Hours of work/Shifts,
Personal Interests
Confidentiality
Termination
Suspension/With or Without Pay
Probationary Period
Disciplinary Actions

10. 18. Shop and Office Act.. – Holidays
Weekly Holidays
Week- Saturday midnight to next Saturday .
Per week – 1 ½ days to be granted with pay .
½ day is 5 hrs of work excluding meal interval .
Statutory Holidays
Holiday with full pay or Holiday lieu to be granted before end of the calendar year.
Or has to be paid in double forthe worked performed in a Holiday.
1. Tamil Tahi Pongal Day
2. National Day
3. Day prior to Sinhala and Hindu new year
4. Sinhala and Hindu new year
5. May day
6. Day Immedialty Succeeding the Full Moon vesak Poya Day
7. Holy Prophets Birthday
8. Chrismas Day
Poya Holidays
Every Full Moon Day.
19. Hotels
Working Hours - 8 hrs per day and 5 hrs forHalf day ( Excluding meal interval)
For Hotel Trade under the section 42-45 split shifts can be implemented over the
period of 12 hrs .
If provided Free meals EPF fund required to be made contribution to the value of the
Free meals.

11. Employment of Females
No female employee could employee before 6.00 am after 10.00 pm
Can be employed before 6.am with following conditions.
1. Residential Hotel as a receptionist.
2. Ladies cloakroomattendant.
3. Ladies Linen Roomattendant
4. Ladies Lavatory Attendant.
20. Labor Official Powers
 Entry and Inspection.
 Request to produce registers or records.
 To take police Officers to visit
 Right to question any person
 Call copies of documents
21. Labor Tribunals
Read , INDUSTRIAL DISPUTES ACT
PART IVA
LABOUR TRIBUNALS
31A. Establishment and condition of labour tribunals.
31B. Applications to a labour tribunal.
31C. Duties and powers of labour tribunal in regard to applications under section 31B.
31D. Appeal to High Court on question of law arising out of the order of a labour
tribunal.
31DD. Appeal to Supreme Court from High Court and powers of Supreme Court on
appeal.
31DDD. Repealed.
31DDDD. Payment of security on determination of appeal or application.
22. Late Attendance

12. When Considering last three months attendance if continuously late forwork may
issue letter of warning.
Employer is entitled to deduct proportionate salary forlate attendance.
23. Leave
ANNUAL LEAVE – Permanent Employees
Vacation/ Annual Leave cannot be obtained from the date of appointment to 31st
December of same year. Annual Leave has to be earned.
From January 1st to December 31st of the next year, you will be entitled to Vacation /
Annual Leave based on your date of employment the previous year.
Date of Employment Leave Entitlement
Between 1st Jan - 31st March 14 Days
Between 1st April - 30th June 10 Days
Between 1st July - 30th September 07 Days
Between 1st Oct - 31st December 04 Days
Contract employees
Shall pay 1 day annual for every month completed and if complete over 10 month
continues service shall pay additional 2 days .
There is no provision to pay for balance annual leave when terminated without
notice law provide circumstances forpayment in lieu of annual leave.
Resignation without notice is breach of contract where employer may not pay for
annual leave balance.
Casual leave /
Entitles ½ day forcompleted month in first years and second calendar Year7 days for
full year.

13. Maternity leave
Live birth of First and second Child
84 working days ( 14 days can be requested as pre confinement leave ) with pay.
3rd
Child ,Viable Foetus or Dead Child- 42 working days with pay
The law required the female employee to give notice to the employer of the number
of children she has and request to leave.
No employer can terminate female employee based on any reasons related to
pregnancy orconfinement.
Restrictions of injurious work
24. Medical leave and Certificate
There is no legal provision related to medical leave it is based on the consent or
agreement by the employer,
Persons are entitled to issue
a. Registered with Medical council of Sri Lanka
b. Registered Ayruvedic Physicians
c. Registered Homeopathy Practitioners
25.Overtime
Normal Working day who exceed 9 hrs ( including meal interval) shal pay 1 ½ hourly
rate.
Statutory holidays shall pay 2 times of hourly rate
Day payment 1/8 of day rate.
Restrictions on Overtime forFemale & Young Persons.

14. Female and male less than 18 years old shall not be work more than 9 hours per day.
26. Probation
Mutual agreement between employer and employee and law normal will not
interfere on employers decision not to confirm ordiscontinue of service unless there
is evidence of mala fides.
28.punishment
types
 Dismissal
 suspension
 Stop Increments
 Fine
 Demotion
 Transfer
 Warning
28. Records.
Service Records (form F ) - Employee information sheet.
 Company name
 Employee name
 Sex
 Date of birth
 Race
 Nationality
 Civil Status
 D O J
 Post
 Basic Salary
Time and Holiday records
The Remuneration Records

15.  Name
 Designation
 NIC no
 EPf No
 Bais salary
 Allowances
 Gross Remunsration
 All deductions
 Net pay
 EPF
 ETF
 Employer contributions on statutory payments
 Recovered income tax details.
 Acknowledge form employee.
Commissions of labor has empower to calculate any shot payments that may occur if
employer fail to maintain proper records.
Overtime Records
Records on female employees -asper the maternity benefits ordinance.
29. Resignation
Employee who resign liable to give notice as required by contact or must pay in lieu
How ever employer cannot force orcannot with held earned salary or cannot debut
from the provided fund payments or fromgratuity payments
employer can with held annual leave withhold pay at a such a situation.
Employer can with draw notice only before employer accepted the notice.
Resignation during a inquiry – it is advisable to clearthe intention of the accepting
the resignation where must accepted with a conditions that employer can withdraw
within certain period and continue with the inquiry,

16. 30.retirement
no law stipulated the age of retirement. It is depend on the agreement. It is adviced
to mention the age limit as 50 -F /55 Male.
employed must have proper service break a acceptable to the commissioner ( one
year).
As per the termination of employment act no45.
By
S .P. Chandimal Gunasekara
(Bsc.Mgt (Hons)Sp USJP ; PQHRM )
Human ResourcesConsultant