1. E m p l o y e e
R e l a t I o n s
Prepared By Mohamed Ramzan
Lecturer Ishri Haniffa
Assessment 02

2. EMPLOYEE RELATIONS
Employee relation can be seen as encompassing the study of all aspects of the
people at work. its mainly connected with the relationship between employer and
employee and their interaction at the work place. The relationship between the
employer and the employee is very vital in the performance and the productivity
of an organization. Every aspect to do with the employees in any organization is
usually handled by the human resource department of the organization. These
departments especially in the private sector and international organization must
ensure that the interests of the employees and their welfare are considered to
avoid constrained relations between the employer and the employee. This paper
will look at the issues surrounding the employees’ relations in the international
human resource management
This is mostly concerned about the problems that occur in the workplace and
how to solve it in affective way. Employees are the backbone of an organization
so once they are happy with their work we can see more productivity it is a
positive sign for the organization, to maintain this employer must know to prevent
the problems that’s going to occur in present and future. Good employee
relations also ensure that they are given guidance and information to help them
in proper comprehension of the objectives, principles and policies of the
organization. It also ensures that the employees have information about their
rights and are helped to resolve their poor performance issues or workplace
misconduct.

3. Labor law
Labor law mediates the relationship between employees, employers, trade
unions and the government. Collective labor law relates to the relationship
between employee, employer and union. Individual labor law concerns
employees' rights at work and through the contract for work. Employment
standards are social norms (in some cases also technical standards) for the
minimum socially acceptable conditions under which employees or contractors
are allowed to work. Government agencies (such as the former U.S. Employment
Standards Administration) enforce labor law (legislative, regulatory, or judicial).
Labor law provide many benefits to employees, such as
 Minimum wage – one of the most basic benefits of labor laws is minimum
wage. They paid hourly or day. In UK per hour they are paid 6.31 pounds
and Sri Lanka per month minimum wage is RS 6500
 Workplace safety - Labor laws are also intended to ensure that employers
provide safe and hospitable working conditions. If anything go wrong or
damage to employees, employers are responsible for the incident
 Other working condition - Employees are also required under federal law
to provide working conditions that do not violate employees' basic rights.
Such laws prohibit lie detector tests and various forms of harassment,
such as sexual harassment, as well as discrimination on the basis of race
and gender. They also protect "whistle-blowers," workers who report legal
violations made by their employers.
 Workers compensation - Workers compensation programs constitute
another benefit to employees by providing compensation for employees
who have been injured on the job, regardless of how they were hurt.

4. Injured employees can be reimbursed for their medical expenses and for
pain and suffering which result from the injury. The federal program only
covers federal employees and not all states have workers' compensation
statutes. In some states, the amount an inured worker can recover is
limited and the employee is prohibited from suing their employer in court,
so this also provides some benefit to employers.
Sri Lankan labor law
The Department of Labor was started under the Indian Immigrant Labor
Ordinance No. 01 of 1923, with the objective of providing welfare for migrant
Indian estate Laborers. With the gradual realization of the Importance of the
Local Labor Force, activities pertaining to the security and welfare of Labor Force
were entrusted on a Labor Controller. Later, the Post of Labor Controller was
changed in to the Commissioner of Labor, and in 1994, the Post of
Commissioner General of Labor was created with comprehensive powers. The
legislature has taken steps to pass about 50 basic legislations during the past 87
year period towards the welfare and protection of the Labor Force. The
fundamental function of the Department of Labor is to implement these
legislations. For this purpose, these functions are implemented Under 13
Principle Divisions of the Department, and in addition to that, 11 Zonal Labor
Offices, 39 District Labor Offices, 17 Sub-Labor offices and 10 District Factory
Inspecting Engineer's Offices are functioning.

5. The mission of Sri Lankan Labor and labor relation
“Contribute towards the Socio-Economic Development through the
Promotion of Industrial Peace and Harmony, Social Protection, Rights at
Work and Productivity.
The vision
“"A Satisfied Productive Sri Lankan Labor force"
Objectives
 To empower and strengthen tripartite relationship
 To ensure globally accepted rights and conditions at work
 To eliminate child labor
 To protect and empower employed women and promote gender equity
and equality
 To expedite relevant labor law reforms
 To initiate action to develop a comprehensive social protection strategy
Major thrust areas
 Industrial Peace and Harmony - In accordance with article 12 of the
Constitution, there can't be any discrimination on the grounds of race,
religion, language, caste, sex, political opinion, place of birth or any one of

6. such grounds. There is no special provision in constitution or labor laws to
prevent discrimination in employment related matters. Laws also prohibit
discrimination against disabled persons in matters of employment as well
as workers involved in union activities and give equal rights to everyone in
the workplace
 Labor Standards and Enforcement - A Wage Board may fix a wage
period for a specific trade and specify the days at the end of which the
wages will be paid to the workers. If a worker is not covered under the
Wage Board decision, an employer may fix the wage period. However, in
either case, wage period can't exceed one month.
Section 17 of Shop and Office Employees Act, 1954 requires the employer
to furnish the particulars of a worker's employment on the start of his/her
work. These particulars of employment contain the basic conditions of
employment like job and its grade/scale for which an employee is hired,
remuneration, wage period, overtime rates payable and other conditions of
employment. (Regulation 15)
Fixed hiring
Sri Lankan labour Law allows hiring fixed term contract workers for tasks
of permanent nature. (EWI) There is no provision on fixed term contracts
in the labour laws.
Notice Requirement
The regulations require termination notice before terminating services of
an employee. However, the law does not deal with individual dismissals
rather it talks only about retrenchment (collective dismissals). Workers
may be retrenched only after giving at least one month's notice. A worker
is eligible for this one month notice only after one year of service. A worker
with less than one year of service is not entitled to any notice.
(Section 31-F of Industrial Disputes Act)
 Protection of Working Women and Elimination of Child Labor –
In accordance with section 345 of the Sri Lankan Penal Code, unwelcome
sexual advances by a person of authority in a working place are

7. considered sexual harassment. The perpetrator of harassment may be
punished either with imprisonment up to a term of five years, or with fine,
or both. He/she may also be ordered by the court to pay an amount, as
determined by the court, to the victim of harassment for injuries.
In accordance with provisions of Employment of Women, Young Persons
and Children’ Act, a child is a person under the age of 14 years. Section
13 of the Act prohibits employment of children except in those
circumstances provided under the Act. Section 10 of Shop and Office
Employees Act also prohibits employment of children under the age of 14
years.
 Occupational, Safety and Health
Employer cares
In accordance with section 6 onwards of the Factories Ordinance, 1942, it
is obligatory on the employer to ensure health, safety and welfare of
persons at workplace.
Free protection
Different provisions under the Factories Ordinance, 1942 require the
employer to provide free protective equipment (breathing apparatus, eye
protection glasses, exhaust appliances) to the worker whose work
involves exposure to wet or injurious substances. (Sections 32, 51, 53 &
58 of Factories Ordinance)
Labour Inspection System
Labour Inspection system seems quite in line with the provisions of
C081 as Sri Lanka became the first South Asian country to launch the
Labour Inspection System Application. The system allows the Labour
Ministry to better coordinate its labour administration institutions in
country's 56 labour department offices. The Industrial Safety Division
works under the Department of Labour to ensure safety, health and
welfare of workers at the workplace by registering factories and
conducting routine inspections. Labour Inspection system is provided
under various sections of Factories Ordinance.

8.  Social Protection
Invalidity Benefit
The Employees' Trust Fund Act, 1980 provides for invalidity benefit in the
case of non-occupational accident/injury/disease resulting into permanent
invalidity. The benefit is paid as a lump sum of the total employee and
employer contributions plus interest (Section 24 of the Employees' Trust
Fund Act,1980)
Pension Rights
Insured workers are eligible for old age benefit (pension) when they reach
the age of 55 years (50 years for women workers), or when they retire
from the covered employment and join public service, on the marriage of
an employed women, on emigrating from Sri Lanka permanently, on
permanent disability or on the closure of a workplace by government
orders. A lump sum of employee and employer contributions plus interest
is paid. (Section 23 of Employees' Provident Fund Act, 1958
Dependent's/Survivors' Benefit
The regulations provide for survivor benefit for nominee or legal heirs. The
benefit is paid as a lump sum of the total employee and employer
contributions plus interest (Section 25 of the Employees' Trust Fund
Act,1980)
 Education, Training, Research and Development
Training
Section 26 of the Factories Ordinance requires that no young worker
(under the age of 18 years) will be allowed to work on a machine unless
he has been fully instructed about the dangers involved in operating the
machine, has received sufficient training in that regard and is working
under supervision of an experienced and knowledgeable worker.

9. UK Labor Department
Employment contracts
Employers within the UK can chose the legal system they wish to govern
employment agreements. However, if no choice of law designation has been
made in the employment agreement, the law of the country in which the
employee is located will typically apply. Additionally, pursuant to the Employment
Rights Act of 1996, all employees in the UK are entitled to receive, within two (2)
months of hire, a written statement from their employer setting forth the terms
and conditions of the employment. This statement is required for both fixed-term
and indefinite contracts and must include the following information:
• the employee’s date of commencement of employment and the
duration of the employment;
• job title and duties;
• amount of pay and pay intervals;
• place of employment;
• sick pay;
• normal hours of work;
• holidays;
• pension entitlement;
• grievance and disciplinary procedures;
• notice of termination requirements; and
• Probationary period if applicable.

10. Employee wages
The National Minimum Wage Act of 1998 sets forth the minimum pay per hour
almost all workers within the UK are entitled to by law. The minimum wage rate
varies per age group up to the age of twenty-one (21), but for any employee over
twenty-one (21) years of age, the minimum wage rate is currently £6.19 an hour.
The government is also set to publish consolidated and simplified National
Minimum Wage Regulations in late April of 2013.
An employee's standard number of working hours is the hours set forth in the
employee's particular employment contract. Typically, adult employees may not
be required to work in excess of forty-eight (48) hours per week. Employers are
not required to pay workers for overtime for hours worked in excess of that set
forth in the employment contract but, the employees' average pay for the total
hours worked may not fall below the national minimum wage.

11. Discrimination Laws
The primary legislation prohibiting discrimination and harassment in the UK is the
Equality Act 2010. The law, which follows three major European Union
Directives, strictly prohibits discrimination and harassment based upon a wide
array of protected characteristics, including the following:
 age;
 disability;
 gender reassignment;
 marriage and civil partnership;
 pregnancy and maternity;
 race, ethnicity, national origin or skin color;
 religion or belief;
 sex;
 sexual orientation;
 part-time work;
 fixed-term work; and
 trade union membership activities.

12. Termination
Employment contracts can be terminated for various reasons including expiration
of the employment contract, termination by mutual agreement, death or
retirement of the employee, dismissal of the employee, or due to a redundancy.
Both the employee and employer are normally entitled to a minimum period of
notice of termination of the employment relationship as set forth in the
employee's employment agreement. The UK government is in the process of
preparing a model template settlement agreement to be utilized when employers
and employees wish to terminate the employment relationship and plans on
introducing the template in the summer of 2013.
Redundancies
In the UK redundancies are implemented when employers determine that the
company cannot afford to keep an employee and must terminate the
employment. Long-term employees are entitled to compensation from their
employers in the event they are made redundant and the law requires employers
to act fairly when making redundancy decisions. Specifically, the employer is
required to send the employee a written statement explaining why the employer
wants to implement the redundancy and hold a consultation meeting. If the
employer plans on dismissing more than twenty (20) employees, it must have a
group consultation; otherwise the employer may consult employees individually.
The employer must always consult with the employees at least 30 days before
the dismissal and give them or their representatives written information about the
proposed number of dismissals, the effect dismissals will have on the company
and alternatives to dismissal.