Deficiencies of the Prevailing Labour Law in Sri Lanka

Topics: Employment, Labour market flexibility, Sri Lanka Pages: 11 (3545 words) Published: December 13, 2011


Employment is a
An act of employing
State of being employed
The work in which one is engaged; occupation.
An activity to which one devotes time
The percentage or number of people gainfully employed:
"a vicious spiral of rising prices under full employment" (William Henry Beveridge).

1.2. Definition of Employee and Employer
“A person who is hired to provide services to a company on a regular basis in exchange for compensation and who does not provide these services as part of an independent business” “An employee is a person who works in the service of another person under an express or implied contract of hire, under which the employer has the right to control the details of work performance” (Black's Law Dictionary). “An employee is hired for a specific job or to provide labor and who works in the service of someone else” (the employer). The IRS classifies a worker as an employee as follows:

In general, anyone who performs services for an organization is an employee if the organization can control what will be done and how it will be done.

1.0.Types of Employment
There are a variety of employment types that can offer new staff including Permanent, full-time, part-time, casual, fixed term employment, traineeships and apprenticeships.

2.1. Figure: Types of Employments

Permanent employment
Can work continuously until retirement.
Letter of appointment must be given.
Can be asked to undergo a probationary period.
If progress is unsatisfactory during probationary period, the period can be extended or service terminated. Even during the probationary period employees can enjoy all facilities under Labour Laws. Apart from permanent employment, there are other new forms of employment that are widely practiced in the world today. Full Time Employment

Full-time employees work on a regular weekly basis and are expected to work a full week. Part Time Employment
Part-time work is a new concept adopted only in few institutions such as BPO Companies. They engage school-leavers and unemployed IT educated youth such as IT operators for a few hours in a day. Unfortunately, Labour Laws are silent on part-time workers. Part-time employees usually work on a regular ongoing basis. They are paid on a pro rata basis. They are entitled to the following to: Part-time workers are paid for the total number of hours they have worked. They do not enjoy any benefits such as leave, gratuity and ETF. However, they are entitled to EPF. Under the EPF, part-time employees are covered and shall enjoy the benefits of EPF. Casual Employment

Casual employees are employed on an irregular basis as needed. The can work as many hours as agreed between the employer and the employee. They: A casual employee has no right to expect daily or regular employment. A casual employee may report for work as and when they like and they can be employed as and when the employer pleases. The practice of having casual employees to substitute for absence of permanent employees is very common. However, the Termination of Employment (Special Provisions) Act gives coverage to an employee who has worked 180 days for a period of 12 months immediately preceding termination. Where the nature of work is of a transitory nature, it would be considered casual employment and all such workers are treated as Casual Employees. However, where such work recurs at regular intervals and forms part of the business, it may fall under temporary employment. Labour laws are silent on “Casual employment”. It is, there for, necessary to treat them like any other employee. They should come under EPF and ETF coverage. A casual employee is one who is taken, either for work of a casual nature or on the basis of fulfilling a casual need. Several companies maintain a register of those who are registered for work, when work is available....
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