Collective Agreements Law in Sri Lanka

Collective Agreements Law in Sri Lanka

Collective Agreements Law in Sri Lanka: Understanding the Basic Principles

Collective agreements are legal documents that outline the terms and conditions of employment of workers who are represented by a trade union or other collective bargaining unit. The law governing collective agreements in Sri Lanka is set out in the Industrial Disputes Act No. 43 of 1950, which provides for the establishment of Collective Agreements between employers and employees or their authorized representatives.

In Sri Lanka, collective agreements are negotiated between trade unions and employers or their representative bodies. These agreements are legally binding and provide an important mechanism for resolving disputes between workers and management. The agreements set out the terms and conditions of employment, such as wages, hours of work, leave entitlements, and other benefits.

The Industrial Disputes Act also provides for the establishment of a Conciliation Board, which is responsible for assisting in the negotiation of collective agreements and resolving disputes that arise during the negotiation process. The Board is made up of representatives from employers, trade unions, and the government and has the power to issue binding recommendations to resolve disputes.

Collective agreements in Sri Lanka must also comply with the country`s labor laws and regulations. For example, the Payment of Gratuity Act No. 12 of 1983 sets out the requirements for paying gratuity to employees who have completed five or more years of continuous service. Collective agreements cannot override these legal requirements.

Under Sri Lankan law, collective agreements are valid for a period of up to three years and must be renegotiated before they expire. If the parties are unable to reach a new agreement, the matter can be referred to the Labor Commissioner for resolution.

The role of collective agreements in Sri Lanka is important in promoting job security, improving working conditions, and maintaining good relations between employers and workers. Collective bargaining encourages cooperation between workers and management, which can lead to increased productivity and economic growth.

In conclusion, the Collective Agreements Law in Sri Lanka provides a framework for workers and employers to negotiate and agree on terms and conditions of employment, and to resolve disputes through peaceful means. The law is designed to promote fairness and equity in the workplace, and to ensure that workers` rights are protected. As such, it is an important tool for promoting economic growth and social justice in Sri Lanka.