Shop and Office Employees Act Act No. 19 of 1954, dated 9 August 1954, as amended up to Act No. 44 of 1985. Published by the Ministry of Labour at http://www.labourdept.gov.lk and accessed 24 October 2011.
Remarks: The relevant provisions of the Shop and Office Employees Act apply to all shops and offices in Sri Lanka, by virtue of Ministerial declaration published in Gazette No 10,724 of 15 October 1954.
A 'shop' means any premises in which retail or wholesale business is carried on, and includes residential hotels and places where the business of the sale of articles of food or drink or the business of a barber or hairdresser or any other prescribed trade or business is carried on.
An 'office' means any establishment maintained for the purpose of the transaction of the business of any bank, broker, insurance company, shipping company, joint stock or other company, estate agent, advertising agent or forwarding or indenting agent, or for the purpose of the practice of the profession of any accountant and includes: (a) the office or clerical department of any shop, factory, mine, estate, hotel, club or other place of entertainment, or of any other industrial, business or commercial undertaking (including the business of transporting persons or goods for fee or reward and any undertaking for the publication of newspaper); and (b) such other institutions or establishments as may be declared by regulation to be offices for the purposes of this Act, whether or not they are maintained for the purposes of any profession, trade or business or for the purposes of profit.
Name of Act
Wages Boards Ordinance, Ordinance No. 27 of 1941 of 19 September 1941, as amended up to Act No. 36 of 1982. Published by the Ministry of Labour at http://www.labourdept.gov.lk and accessed 24 October 2011.
Remarks: The Wages Board Ordinance applies to all workers who are employed to perform any work in any trade. While it provides for some administrative rules of general application (subject to any trade specific rules established), it contemplates only trade-specific minimum rates of wages which are to be set by trade-specific Wages Boards.
'Trade' is defined to include any industry, business, undertaking, occupation, profession or calling carried out, performed or exercised by an employer or worker, and any branch of, or any function or process in, any trade, except any industry, business or undertaking which is carried on mainly for the purpose of giving an industrial training to juvenile offenders or orphans or to persons who are destitute, dumb, deaf or blind (§64 Wages Boards Ordinance).
Other source used
Wages Boards Ordinance - Notifications 2010 as published in the Gazette of the Democratic Socialist Republic of Sri Lanka, Extraordinary Editions 1660/34, 1664/24, and 1668/19. Further notification(s) published in Extraordinary Edition 1636/10, but relevant Gazette not identified.
Worker means any person employed to perform any work or trade.
Wages Boards Ordinance §64
Employer
Employer means any person who on his own behalf employs or whose behalf any other person employs, any worker in any trade, and includes any person who on behalf of any other person employs any worker in any trade.
Wages Boards Ordinance §64
Remarks: 'Trade' is defined to include any industry, business, undertaking, occupation, profession or calling carried out, performed or exercised by an employer or worker, and any branch of, or any function or process in, any trade, but does not include any industry, business or undertaking which is carried on mainly for the purpose of giving an industrial training to juvenile offenders or orphans or to persons who are destitute, dumb, deaf or blind (§64 Wages Boards Ordinance).
Wage
Wages includes any remuneration due in respect of overtime work or of any holiday.
Wages Boards Ordinance §64
MINIMUM WAGE FIXING
Procedure
Procedure in general
The Wages Boards Ordinance establishes a process by which minimum rates of wages are determined by tripartite, trade-specific Wages Boards, and come into force following the approval of the Minister and publication in the Gazette.
Where minimum rate of wages have been set for a trade, every employer with a worker in that trade shall pay wages at not less than the minimum rates applicable to that worker.
Wages Boards Ordinance Part II
Government decides after tripartite or bipartite body discussions/recommendations
A Wages Board may be established for any trade, or for any branch of or function or process in any such trade, by order of the Minister. All Wages Boards shall consist of the Commissioner of Labour (as Chairman), an equal number of employer and worker representatives, and up to 3 independent nominated members. A Wages Board established for any trade may also constitute a District Wages Committee for that trade in any area or district, to which the Wages Board may refer, for consideration and report, any matter regarding which the Wages Board is empowered or required to decide.
Once a Wages Board is established, it shall determine a general minimum time-rate (i.e. minimum wage for time workers) in the relevant trade or part there-of within one year. The Wages Board may also determine a general minimum piece-rate and a guaranteed time-rate for piece workers, and overtime rates for time workers and piece workers. Such rates may consist of a basic rate and a special allowance (adjustable in accordance with the applicable cost of living index number), which shall together constitute the minimum rate of wages for the relevant trade.
Before making a decision in relation to minimum rates of wages, the Board must publicise the proposed decision and allow for a period during which written objections may be submitted for the Boards consideration. The decision must then be submitted through the Commissioner of Labour to the Minister for approval, and will only take effect once notice of such approval is published in the Gazette or on such later date specified in the notification. Where the Minister does not approve of the decision, the matter may be referred back to the Wages Board for reconsideration.
Where a Wages Board cannot be established for a particular trade, or fails to make a decision within one year of its establishment, the minimum rates of wages for the relevant trade may be set by the Commissioner of Labour. The Commissioner must also publicise any propose decision and submit the proposal to the Minister for approval and notification.
Remarks: The Shop and Office Employees Act establishes a separate process by which minimum remuneration levels may be set for shop and office employees. This process reflects that of enterprise or industry-wide collective bargaining (the level to be determined by order of the Minister) and the resulting determination will only be applicable to those parties who expressly consent to the determination. Parties who do not consent to coverage will not be bound, unless the matter is referred (by order of the Minister) to a tripartite Tribunal for compulsory determination.
The constitution of the Shop and Office Employees Tribunal reflects that provided for in the Wages Boards Ordinance, insofar as it will be constituted by the Commissioner and an equal number of each of the employer representatives, employee representatives and nominated members. Moreover, the 2010 Notifications of the Wages Board for the Retail and Wholesale Trade and the Wages Board for the Hotel and Catering Trade (both of which fall clearly within the definition of 'shop' for the purposes of the Shop and Office Employees Act) are both expressed as having been made under the Wages Boards Ordinance. The information in the Minimum Wages part of this report is therefore limited to that taken from the Wages Boards Ordinance.
Criteria
Cost of living
No statutory criteria for setting the minimum rates of wages identified. However, minimum rates set by a Wages Board decision may consist of a special allowance at a rate to be adjusted, at such intervals and in such manner as the Wages Board directs, to accord as nearly as practicable with the variation in the cost of living index-number applicable to workers in that trade.
Wages Boards Ordinance §20(2)(a)(ii)
Coverage
Scope
The scope of the minimum rates of wages and other rules set in Wages Board decisions, made under Part II of the Wages Boards Ordinance, are subject to the order of the Minister under §§6 and 8 of the Ordinance.
However, Part I of the Wages Boards Ordinance (which establishes rules relating to rates of payment and permissible deductions) applies to all workers who are employed to perform any work in any trade, subject to any Wages Board decisions or other prescriptions under Part II.
Wages Boards Ordinance §§2, 3, 5, 6, 8
Coverage rate
Currently, minimum rates of wages apply to over 35 trades in Sri Lanka.
Wages Boards Ordinance - Notifications 2010 Notifications in Gazette 1660/35 - minimum rates of wages for 27 trades Notifications in Gazette 1664/24 - minimum rates of wages for 3 trades Notifications in Gazette 1668/19 - minimum rates of wages for 5 trades Notification(s) in Gazette 1636/10 - relevant Gazette not located
Remarks: A 2002 publication by the Ministry of Employment and Labour Sri Lanka reported that 43 Wages Boards had been established, of which 36 were formed on tripartite basis ('Understanding Labour Law', p13).
Specific minimum wage rates
» Specific minimum wage by occupation
A Wages Board may be empowered to set minimum rates of wages for a specified branch of a trade, or particular function or process within a trade. Further, and irrespective of their jurisdiction, Wages Boards may determine different rates of wage for particular branches of the trade or affecting particular classes of workers.
Wages Boards Ordinance §§8, 27
» Specific minimum wage by sector
Wages Boards are empowered to set minimum rates of wages for particular trades.
Wages Boards may determine different rates of wages for particular areas of workers within a single trade.
Wages Boards Ordinance §27
» Minimum wage levels for specific categories of workers
» Trainees
A Wages Board may determine the conditions subject to which any workers may be employed in that trade as apprentices or learners.
Wages Boards Ordinance §40
» Domestic Workers
No minimum wage rate for domestic workers identified.
» Disabled
Permits may be granted by the Commissioner of Labour exempting the employment of a person with an infirmity or physical injury from minimum rates of wages which are otherwise applicable to that employment. The exemption may be subject to such conditions as may be prescribed.
Such permits may be revoked by the Commissioner after giving notice in the prescribed manner to the employer of the worker.
Wages Boards Ordinance §39
» Piece-rate workers
A Wages Board may determine a minimum rate of wages for piece work (a general minimum piece-rate) and a minimum time-rate to apply in the case of workers employed in piece-work for the purpose of securing to such workers a minimum rate of remuneration on a time-work basis (a guaranteed time-rate).
Where no general minimum piece rate have been set for a trade to which a general minimum time rate applies (i.e. the minimum rate for time work set by a Wages Board decision), an employer must ensure that any piece-workers are paid a piece-rate that yields at least the same remuneration as the general minimum time-rate.
Wages Boards Ordinance §§20(1)(a), 20(1)(b), 36
Level
Minimum wage level(s) in national currency
The minimum wage levels vary by industry, position and seniority, according to the terms of the relevant Wages Board decision.
One example is the Notification of the decision of the Wages Board for the Garments Manufacturing Trade, which stipulates the following range of minimum wage rates: (i) Grade 1(a) - between 8,100 rupees and 8,900 rupees per month, depending on year of employment; (ii) Grade V - 4,830 rupees per month.
Wages Boards Ordinance - Notifications 2010 See Notification 1669/19 published 27 August 2010 at pp6A-7A
Last minimum wage update
The date of the last minimum wage update varies across the industries, between 4 dates in 2010: (1) Notifications in Gazette 1660/35 (26 trades) - 30 June 2010 (2) Notifications in Gazette 1664/24 (3 trades) - 30 July 2010 (3) Notifications in Gazette 1668/19 (5 trades) - 27 August 2010 (4) Notification(s) in Gazette 1636/10 (number not known) - 31 October 2010
Wages Boards Ordinance - Notifications 2010 See also Increases for Private Sector 2010 at www.labourdept.gov.lk
In-kind allowances
An employer shall pay wages in legal tender directly to the worker, without any deduction other than an authorized deduction made with the consent of the worker. Authorized deductions are limited to deductions made in respect of: (i) advances of money made by the employer to the worker; (ii) payments which are made, at the instance of the worker, out of the wages of the worker by the employer to any other person (who is not the employer or an agent of the employer) in order to discharge any obligation of the worker or for any other purpose; (iii) income tax or inland revenue; (iv) an order, process or decree made or issued by a court fo law; or (v) as otherwise prescribed.
Wages Boards Ordinance §2(a)
Rate of payment
» Weekly
Where not covered by a Wages Board decision, an employer shall fix the wage period, which must not exceed one month. Where the employer fixes a wage period that does not exceed 1 week, the employer shall pay the wages for that period within 3 days of the expiry of that period.
Where a Wages Board is established with respect to the employers trade, the Wages Board may determine the period of work (not in any case exceeding one month) in respect of which wages shall be paid to workers, and specify the number of days from the end of that period within which wages shall be paid.
Wages Boards Ordinance §§2(b)(i), 5(1), 23(1)
» Monthly
Where not covered by a Wages Board decision, an employer shall fix the wage period, which must not exceed one month. Where the employer fixes a monthly wage period, the employer shall pay the wages for that period within 10 days of the expiry of that period.
Where a Wages Board is established with respect to the employers trade, the Wages Board may determine the period of work (not in any case exceeding one month) in respect of which wages shall be paid to workers, and specify the number of days from the end of that period within which wages shall be paid.
Wages Boards Ordinance §§2(b)(iii), 5(1), 23(1)
» Other
Where not covered by a Wages Board decision, an employer shall fix the wage period, which must not exceed one month. Where the employer fixes a wage period that exceeds 1 week but does not exceed 2 weeks, the employer shall pay the wages for the period within 5 of the expiry of that period. Where the employer fixes a wage period that exceeds 2 weeks, the employer shall pay the wages for that period within 10 days of the expiry of that period.
Where a Wages Board is established with respect to the employers trade, the Wages Board may determine the period of work (not in any case exceeding one month) in respect of which wages shall be paid to workers, and specify the number of days from the end of that period within which wages shall be paid.
Officers are appointed to make sure that the provisions of the Wage Ordinance come into effect. The officers have the power to enter and inspect any premises in which workers are employed for the purpose of ascertaining whether the provisions of the Ordinance are being complied with.
Employers of workers in any trade are required to maintain and keep in the premises where the trade carried out a clear and accurate written record of the following information in respect of each wage period: (a) the wage period, (b) the names of the workers who are paid wages in respect of such wage period, (c) the number of hours or days during which each such worker has worked in such wage period, (d) the wages paid to each such worker in respect of such wage period, (e) the date of payment of such wages, (f) the deductions from such wages, and (g) particulars of such other matters as may be prescribed.
Where the employer fails to keep such a record, the Commissioner may assess the wages or short payment thereof on the basis of all evidence (both oral and documentary) available to him.
Wages Boards Ordinance §§3, 3D(1), 41, 52, 55
Remarks: The record-keeping requirements vary slightly depending on whether a Wages Board has been established for the trade in which the employer employs workers (see §§3 and 41 of the Wages Boards Ordinance).
Fines in national currency for non-respect of legislation
Every employer who fails to comply with the Wages Boards Ordinance or a Wages Board determination relevant to the employers trade shall be liable to a fine of: (i) in the case of a first offence - not less than 100 rupees but not more than 250 rupees; (ii) in the case of a second offence - not less than250 rupees but not more than 500 rupees; and (iii) in the case of a subsequent offence - not less than 500 rupees but not more than 1,000 rupees.
Where the fine relates to a failure to pay the minimum rates of wages determined by a Wages Board, the employer will be further liable to a fine not exceeding 50 rupees for each day on which the offence is continued after conviction.
Wages Boards Ordinance §§4, 44(1), (2)
Other penalties
In the case of a third or subsequent offence, an employer may be liable to a term of imprisonment not exceeding 6 months. This sentence may be in addition or in the alternative to a fine of between 500 and 1,000 rupees.
In addition to any fine or prison sentence, and whether for a first, second or subsequent offence, the court may order an employer to pay: (a) where a worker has not been paid the amount which ought properly to have been paid to that worker, such sum as may be found by the court to represent the difference between such amount and the amount actually paid and the surcharge payable in accordance with §4(2A) Wages Ordinance Board; (b) where no portion of the wages due to that worker has been paid, such sum as may referred by the Court to represent such wages and the surcharge payable in accordance with §4(2A) Wages Ordinance Board.
Remarks: The surcharge payable in accordance with §4(2A) Wages Ordinance Board shall be calculated as follows: (a) where such sum is in arrears for a period exceeding 1 month but not exceeding 3 months, a surcharge of 20% of such sum; (b) where such sum is in arrears for a period exceeding 3 months but not exceeding 6 months, a surcharge of 30% of such sum; (c) where such sum is in arrears for a period exceeding 6 months but not exceeding 12 months, a surcharge of 40% of such sum; (d) where such sum is in arrears for a period exceeding 12 months, a surcharge of 50% of such sum.
Results generated on: 29th March 2024 at 05:58:14.
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