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Formation of Employment Contracts

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Srilankan laws relating to employment contracts

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Formation of Employment Contracts

  1. 1. Employment Law Shifan Tariq Formation of
  2. 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. 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. 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. 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. 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. 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. 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. 9.  Leading to contracts that are necessarily “Sustainable as well as Equitable” Conclusion Thank You!

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