Srilankan laws relating to employment contracts

1. Employment Law
Shifan Tariq Formation of

2. 
Like any other contract, contract of employment is an agreement between two parties ; in this case uniquely between the Employer & Employee.
This creates a relationship between the employer & employee based on Terms & Conditions; which govern the rights & obligations of each other.
 These terms & conditions can either be express or implied.
Introduction

3. 
Most importantly to agree upon…..
 the remuneration & nature of work
 specify working hours & overtime
 provisions on holidays & leave applications
 pension & sick benefits
 termination notices & dismissals
 period of contract & restrictive covenants
Why do we need a contract ?

4. 
Express terms, are the terms that have been specifically included & agreed by both parties either in writing, orally or a mix of both.
E.g: Remuneration of the employee.
 Implied terms, are terms not included in the contract but contain an array of conditions that have to be agreed upon on mutual basis.
E.g: Work in good faith to the employer
Terms & Conditions

5. 
 The Shop & Office Employees Act – governs employee entitlements as Working hours, Holidays, Facilities & Remuneration etc..
E.g: S.19 deals with the time & manner of payment of remuneration.
 Wages Board Ordinance No.27 of 1941(with amendments) – The objective of this legislation is regulate wages & other emoluments being employed.
E.g: S.2 specifies the time span before which the wages of previous month should be paid. i.e; a person receiving salary for the month, shall be paid before the next 10 days of following month.
An overview of Sri Lankan Statutory provisions
(On terms & conditions in formation of employment contract)

6. 
 Maternity Benefit Ordinance No.32 of 1939 –provides for various obligations pertaining to confinement of woman at work .
E.g: S.10A provides that a women shall not be terminated from employment due to confinement.
 EPF & ETF Acts–Established a Provident & Trust fund for employees benefits
E.g: Every employer must pay 3% as ETF out of the total earnings of each employee.
An overview of Sri Lankan Statutory provisions
(On terms & conditions in formation of employment contract)

7. 
 The Payment of Gratuity Act No.12 of 1983
The Employment of Woman, Young persons & Children Act No.47 of 1956
 Factories Ordinance No. 45 of 1942.
These are some of the major acts that regulate the formation of a contract. Most of the time these regulatory provisions are implied rather than being expressly stated.
An overview of Sri Lankan Statutory provisions
(On terms & conditions in formation of employment contract)

8. 
It is necessary to implement these rights & obligations to the best possible manner , so as to
“maintain a balance between the express & implied terms.”
 Which shall mean to cover laws of the land, ratified laws by the country & simultaneously varies on the employee grades & working conditions which collectively seeks to avoid industrial unrest.
Conclusion

9. 
Leading to contracts that are necessarily “Sustainable as well as Equitable”
Conclusion
Thank You!