Law of Sri Lanka PDF

Law of Sri Lanka Sachith Ranasinghe B.Com (Hons), Attorney-At-Law, Notary Public, Commissioner of Oaths, CIMA MA  Outline Introduction to Law of Laws important to Employment Law in Sri Sri Lanka Entrepreneurs Lanka What is law? Why is it important? What is l...

Law of Sri Lanka Sachith Ranasinghe B.Com (Hons), Attorney-At-Law, Notary Public, Commissioner of Oaths, CIMA MA  Outline Introduction to Law of Laws important to Employment Law in Sri Sri Lanka Entrepreneurs Lanka What is law? Why is it important? What is law? Why is it important? “Law is the thing which is “ The law is enacted by the controlling the society” - Emperor” - Justinian (527-565 Plato (427 – 347 B.C) A.D.) “Law is the rule which divide “The law has come from the the Right and Wrong in the God” - Thomas Aquinas (1225 society” - William Blackstone – 1274 A.D.) - Famous English Jurist (1723 - 1780 A.D) What is law? Why is it important?  A set of rules created and enforceable by social or governmental institutions to regulate behavior, with its precise definition being a matter of longstanding debate.  Law is the system of rules which a particular country or community recognizes as regulating the actions of its members and which it may enforce by the imposition of penalties.  Constitution – The Supreme Law Statutes – Passed and enforced legislation Sources of Customs - Generally accepted behaviors among members of a social group Law in Sri Lanka Code – e.g.: Corporate Governance Code Regulations – e.g.: SEC Regulations Charters - Internally customized agreed-on virtues  Parliament/Legislature – Acts Creation Local Authorities – By Laws and Courts – Judgements (Case Law) Execution Executive - Regulations  Criminal Law (Rape, Grave Sources: Penal Code, Sexual Abuse, Robbery, Murder, supportive legislation Financial Crimes, Money Laundering, (AML Act), Prodeure Types of Law Criminal Breach of Trust, etc) laid out in CCP Act (As per the Liability) Civil Law (Divorce, Sources: Various Land Matters, Debt Legislations, Recovery, etc) Procedeure in CPC  King was the head of judiciary – e.g.: King Kakille, Sri Wickrama Rajasinghe Similar was followed in Britain – Battle of Hastings & William the Conqueror Origin of Law Portuguese – Did not embed their laws in Sri Lanka Dutch – Roman Dutch Law (Placcarts in 17th Century) British – English Law  Roman Dutch Law English Law Origin of Law in Sri Kandyan Law Lanka Thesawalamai Law Muslim Law Origin of Law in Sri Lanka  The Constitution of Sri Lanka Few Important Legal Provisions for General Public Few Important Legal Provisions for General Public Few Important Legal Provisions for General Public Fundamental Rights Fundamental Rights Fundamental Rights Fundamental Rights Fundamental Rights Fundamental Rights Fundamental Rights Penal Code CHAPTER I 1 -4 CHAPTER II 5 - 51 GENERAL EXPLANATIONS CHAPTER III 52 - 68 OF PUNISHMENTS GENERAL EXCEPTIONS, OF THE CHAPTER IV 69 - 99 RIGHT OF PRIVATE DEFENCE CHAPTER V 100 - 113 OF ABETMENT CHAPTER V A 113A - 113B OF CONSPIRACY  Penal Code CHAPTER VI 114 - 127 OF OFFENCES AGAINST THE STATE, OF OFFENCES RELATING TO THE ARMY, NAVY, AND CHAPTER VII 128 - 137 AIR FORCE CHAPTER VIII 138 - 157 OF OFFENCES AGAINST THE PUBLIC TRANQUILLITY, OF OFFENCES BY OR RELATING TO PUBLIC CHAPTER IX 158 - 169 SERVANTS, CHAPTER IXA 169A - 169H OF OFFENCES RELATING TO ELECTIONS OF CONTEMPTS OF THE LAWFUL AUTHORITY OF CHAPTER X 170 - 187 PUBLIC SERVANTS OF FALSE EVIDENCE AND OFFENCES AGAINST CHAPTER XI 188 - 224 PUBLIC JUSTICE  Penal Code OF OFFENCES RELATING TO COIN AND CHAPTER XII 225 - 256A GOVERNMENT STAMPS OF OFFENCES RELATING TO WEIGHTS AND CHAPTER XIII 257 - 260 MEASURES OF OFFENCES AFFECTING THE PUBLIC HEALTH, CHAPTER XIV 261 - 289 SAFETY, CONVENIENCE, DECENCY AND MORALS CHAPTER XV 290 - 292 OF OFFENCES RELATING TO RELIGION CHAPTER XVI 293 - 365 OF OFFENCES AFFECTING THE HUMAN BODY Penal Code OF OFFENCES AGAINST PROPERTY OF THEFT, OF EXTORTION, OF ROBBERY, OF CRIMINAL MISAPPROPRIATION OF PROPERTY, OF CRIMINAL BREACH OF TRUST, OF THE RECEIVING OF STOLEN CHAPTER XVII 366 - 451 PROPERTY, OF CHEATING, OF FRAUDULENT DEEDS AND DISPOSITIONS OF PROPERTY, OF MISCHIEF AND ILLEGAL REMOVAL OF WRECKS, OF CRIMINAL TRESPASS OF OFFENCES RELATING TO DOCUMENTS, PROPERTY-MARKS, CHAPTER-XVIII 452 - 478D CURRENCY NOTES AND BANK NOTES, OF PROPERTY-MARKS, OF CURRENCY NOTES AND BANK NOTES CHAPTER XIX NA (REPEALED) CHAPTER XX 483 - 488 OF CRIMINAL INTIMIDATION, INSULT, AND ANNOYANCE CHAPTER XXI 489 OF UNLAWFUL OATHS CHAPTER XXII 490 OF ATTEMPTS TO COMMIT OFFENCES  Convention on the Suppression of Terrorist Financing Act, No. 25 of 2005 (CSTFA) Prevention Of Money Laundering Act No.5 of 2006 Financial Transactions Reporting Other Legislations Act, No. 06 of 2006 (FTRA) Computer Crime Act, No. 24 of 2007 Code Of Criminal Procedure Act (No. 15 of 1979) Civil Legislation (General) Marriage Registration Ordinance. No. 19 of 1907 Partnership Ordinance of 1890 Registration of Business Names Act (No.07 of 1987) Companies Act (No 07 of 2007) Law & Business – For Entrepreneurs Types of Businesses Sole Proprietorships Partnerships Companies Law & Business – For Entrepreneurs SOLE PROPRIETORSHIPS – REGISTRATION PARTNERSHIPS – REGISTRATION NOT COMPANIES - REGISTRATION REQUIRED NOT REQUIRED IF IN THE FULL NAME OF THE REQUIRED BUT ADVISED (AS PER PFO NO. 40 OWNER 0F 1840 WHERE THE INITIAL CAPITAL EXCEEDS 1000LKR) Business Registration – Sole & Partnerships 1. Obtain the relevant application form from the respective Divisional Secretariat Office. The following two documents are required to submit for this purpose. – An application form to register the business name of a Sole Proprietorship. – An application form to obtain the required report from Grama Niladharee on the registration of the business name. 2. Hand over the certified report of the Grama Niladharee and the duly completed application form along with the registration fee to the Divisional Secretary. 3. After considering the above documents, the Divisional Secretary will issue the Certificate of Registration of Business Name. It is required to display this certificate at the business place. Company A company is a legal entity formed by a group of individuals to engage in and operate a business Registration commercial or industrial enterprise. Company Registration  4. (1) Subject to the provisions of subsection (2), any person or persons may apply to incorporate a company, other than a company limited by guarantee, by making an application for the same to the Registrar in the prescribed form signed by each of the initial shareholders, together with the following documents:  a declaration stating that the name of the company is not identical or similar to that of an existing company  the articles of association of the company, if different from the articles set out in the First Schedule hereto, and signed by each of the initial shareholders Company Registration ▪ consent from each of the initial directors under section 203, to act as a director of the company ; and ▪ consent from the initial secretary under subsection (2) of section 221, to act as secretary of the company (2) A company shall have not less than two shareholders, provided that a company may have a single shareholder where such single shareholder is the Secretary to the Treasury who is holding shares on behalf of the Government of Sri Lanka or is an individual or a body corporate  As per the Act, there are 03 main types of companies. (1) Limited Companies. (Could be Public Limited Companies AKA Listed Companies, or could be Types of Private Limited Companies) (2) Unlimited Companies. Companies (3) Limited by Guarantee Companies. Special types of Companies: a) Off-Shore Companies b) Overseas Companies Additional Laws Important for Entrepreneurs – Intellectual Property Law Governing statute, Intellectual Property Act No. 36 of 2003, came into effect on the 12th of November 2003. This Act was designed to promote national creativity, protect creative efforts and honor Sri Lankan international obligations. Copyrights Patents Trademarks Industrial Designs Geo Indications ICs Employment Law Wages Board Ordinance Shop and Office employees’ Act Employment of Women, young Persons and Children Act Maternity Benefits Ordinance Workmen’s Compensation Ordinance 1.Wages Board Ordinance Wages Boards are bodies set up under the Wages boards Ordinance of 1941 (as amended) to ensure minimum wages and a few other conditions such as holidays, leave and overtime rates in respect of specified trades. Their principal function is to determine the minimum wage payable to Workers in a particular trade. The minimum wage may be prescribed as a basic rate plus a special living allowance based on the cost-of-living index or a consolidated amount. Failure to pay at least the minimum wage is an offence. 2. Shop and Office employees’ Act One of the most important and relevant statues in Sri Lankan Labour law is the Shop and Office Employees’ (Regulation of Employment and Remuneration) Act No. 19 of 1954. The Act applies to all employees within the definition of a “shop” or “office” and is in five parts as follows; Part I Regulation of hours of employment in shops and offices: health and comfort of employees Part II Payment of remuneration Part III Regulation of remuneration Part IV Closing order for shops Part V General matters 2. Shop and Office employees’ Act The Act does not apply to the State as an employer. Unlike, the Wages Boards Ordinance, this Act specifically defines the entitlements of workmen, and does not vest decision making power in a separate autonomous body except under certain circumstances which is limited to wage fixation. The main provisions of the Act are Hours of Work, Weekly Holidays, Annual Holidays, Casual Leave, Maternity Leave, Salary Payments & Deductions, Letter of Appointment, Records of Employees An employee is? An employee is defined as a person who is employed in or about the business of a shop or office. However, there is one exception to this definition. If the person under employment works in a bazar or works for charitable/other purposes that is: 1. Carried on for either one month or less OR; 2. In business in connection with funerals OR; 3. A member of tutorial staff of schools OR; 4. A watcher or a caretaker then, the Shop and Office Act does not apply to them. Main Elements 1. Minimum age of employment 2. Minimum wages 3. Regulation of hours of employment 4. Holidays 5. Meals 6. Sanitary and washing facilities 7. Maintaining records 8. Maternity benefits 9. Payments 10.Termination 1.Minimum age of employment Anyone who is under the age of 16 cannot be employed. However, there is one exception to the rule: If someone is under the age of 16, they can be involved in: 1. Agri-business activities of their family OR; 2. In a business activity that is organised for an educational/charitable purpose This is only allowed as long as the person takes part in these activities before or after school. 2. Minimum Wages The minimum wage for a month is LKR 12,500. In addition to this, you have to provide your employees with a budgetary allowance of LKR 2,500 + other allowances of LKR 1,000. This is defined in the National Minimum Wage of Workers Act No. 3 of 2016. 3. Regulation of Hours The normal day’s work is limited to 8 hours and a normal working week is limited to 45 hours, excluding 1 hour for meals. Persons employed in different classes of shops and different classes of offices may have different hours of work, subject to several restrictions. Work in excess of the normal hours has to be treated as overtime and paid for at a rate not less than one and one-half times the hourly rate. Overtime Overtime is when an employee works beyond their normal hours of work (45 hours). The amount of overtime hours they can work for per week is limited to 12 hours only, however. An employee who works overtime has to be paid one and a half times their usual hourly rate. 4. Holidays Under the Shop and Office Act, an employee can take certain types of holidays: a) Weekly holidays b) Annual leave c) Casual leave or sick leave d) Public holidays e) Full moon Poya holidays a) Weekly Holidays If the employee works for 28 hours or more every week, they’re entitled to one and a half days of paid leave. Usually, they get these holidays as a half-day on Saturday and a full day on Sunday. However, many companies give the entire Saturday off as well. b) Annual Leave Employees are entitled to 14 days of Time period the employee Number of annual leave they’ll be entitled to on was hired on their first year their second year annual leave a year for every year Between January 1 and they’ve worked for. March 31 14 days Annual leave is calculated Between April1 and June 30 10 days depending on when the person has Between July 1 and September 30 of the previous 7 days been employed. year Between October 1 and 4 days December 31 c) Casual/Sick Leave Employees are entitled to take up to 07 days of paid leave for: Private matters Ill health Or any other reasonable cause Casual leave entitlement applies to employees who have been working in a given company for over a year. If they’re in their first year of employment, they can only take one day of casual leave for every two months of service. d) Public Holidays Sri Lanka has a few public holidays on its calendar. These holidays are always paid for by the company (they’re usually Mercantile holidays). These holidays include: 1. Independence day 2. May day 3. Sinhala and Tamil New Year 4. Christmas and etc. If the employees are to work on these holidays, they have to be paid a minimum of twice their daily salary. e) Full Moon Poya Days Employers are required to grant employees paid holidays on all of the full moon poya days. If they require them to work, need to pay them a minimum of one and a half times the daily salary. 5. Meals If the employees work more than 5 hours a day, they are to be given intervals to eat their meals. For every four hours of work an employee does, they can take a half an hour break to eat their meals. So, an average employee (that works 8 hours a day) will get an hour to eat their meals. In addition, have to provide and maintain a suitable place for the employees to have their meals as well. 6. Sanitary and Facilities Employers are required to provide and maintain appropriate sanitary and washing facilities for their employees at the workplace. These facilities must be designated separately for male and female employees. However, if the employer can demonstrate to a 'prescribed officer' that suitable sanitary facilities are available within a specified distance from the workplace, they may be granted a certificate exempting them from the obligation to provide onsite facilities. 7. Records Employers are required to maintain a few documents and records of the employees at the shop or office like: A service record A remuneration record with the personal details Even after termination, these have to be maintained for up to two years. 8. Maternity Benefits If or when female employees decide to have children, they are entitled to paid leave following the birth of their child or children. For the first and second child, female employees are entitled to 84 days of paid leave, which includes 14 days of pre-confinement leave. This allows pregnant employees to begin their maternity leave 14 days before their due date. After the birth of the third child and beyond, they are entitled to 42 days of paid maternity leave, with 14 days of pre-confinement leave included. 8. Maternity Benefits Employers are prohibited from terminating an employee’s contract due to pregnancy or any complications arising from it. Additionally, dismissal notices cannot be issued during the period of maternity leave. Maternity leave is granted in addition to any holidays or annual leave that the employee is ordinarily entitled to. If a female employee is nursing a child under the age of one year, she must be given two nursing intervals within a nine-hour work period. Furthermore, once a female employee has notified the employer of her pregnancy, she must not be assigned to any work that could pose harm to her or the child. 9. Payments to Employees An employee’s salary must be directly paid to them. However, certain deductions can be made. 1. Authorized deductions (example: advance payments): 2. Deductions according to the Income Tax Ordinance or the Inland Revenue Act; 3. Any other deduction made or issued by a court of law 10. Termination of Employment There are two acts that talk about termination: 1. The Industrial Disputes Act (IDA) 2. The Termination of Employment of Workmen Act (TEWA). Employees can be terminated; i. With the consent of the employee (e.g. in the form of a resignation) or; ii. With the written approval of the Commissioner of Labor (COL) or; iii. With justifiable cause ‘Justifiable Causes’? Disciplinary Causes: Misconduct Unsatisfactory performance Persistent and unauthorised absence Abusive/unruly behaviour Dishonesty and theft Intoxication Non-Disciplinary Causes: Inefficiency/incompetence Breach of contract Conviction of an offence What to do if terminated without proper cause? Employee can seek redress in labor If not satisfied, employee can take the tribunal and work the way through ADR case to a civil litigation Notice of Termination No mandatory notice period for individual terminations. But Termination of Employment of Workmen (Special Provisions) Act No. 45 of 1971 (TEWA) governs specific circumstances related to termination, particularly in cases of retrenchment. In such cases, a minimum one-month notice period is required before termination. This entitlement applies only to employees who have completed one year of service. In other cases, employment contracts define the notice period or supercede TEWA provisions. State Sector Employees All the rules and regulations needed to be followed by the government servants are mentioned in the Establishment code (E-code) of Sri Lanka. Revised time to time by the Ministry of Public Administration circulars. Q & A Session  Identify and briefly describe four (04) main Comprehension types of leave entitlements available to an office worker in Sri Lanka. (10 Minutes)