UNIVERSITY OF VOCATIONAL TECHNOLOGY

RATHMALANA
BACHELOR OF TECHNOLOGY
IN
INDUSTRIAL MANAGEMENT TECHNOLOGY

ASSIGNMENT - 01
CORPORATION PROFILE OF PELWATTA
SUGAR COMPANY (PVT) LTD
INDUSTRIAL AND COMMERCIAL LAW – MS30406

GROUP MEMBERS – GROUP 01

CHATHURANGA - IM/19/B1/14
CHAMALI - IM/19/B1/36
ASITHA - IM/19/B1/08
ISURU - IM/19B1/18

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 ACKNOWLEDGEMENT

In preparation of this Report, we would like to extend our sincere gratitude to the following persons
for the assistance, guidance and encouragement given to finish this report successfully.
First of all, I would like to owe my special thanks to the Mr. Asanka Karunaratna course lecturer of
the course module MS30406 for providing me a lot of guidance and support to the achievement of this
report.
Then we would like to express our gratitude to University of Vocational Technology, Ratmalana for
providing us the opportunity to undergo an industrial management technology degree program. And
Mrs.Oshadie, Head of Department of Management, for the support rendered throughout our degree program
that has shown the attitude and the substance of a genius.
Next, we would like to thank all the lectures in the Department of Industrial Management for
providing me enough guidance and support.
Finally, our thanks also go to my colleagues who always motivate me by giving me support
whenever I needed.

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 CONTENT
1.0 Brief explanation about Pelawatte sugar company (pvt)ltd
1.1 introduction
1.2 History
1.3 Company layout
1.4 Main function
1.5 Nature of business
1.6 Vision and Mission
1.7 Objectives
1.8 Organizational structure
1.9 Product and services offered by Lanka sugar company ltd
1.10 Training unit
1.11 Main department of the company
1.11.1 Human resources department
1.11.2 Agriculture department
1.11.3 Department of finance
1.11.4 Factory department
1.11.5 Distillery department
1.11.6 Internal audit section
2.0 Brief explanation about law side of the pelwatta sugar company (pvt)ltd
2.1 Department policy for the sugar industry
2.1.1 The necessity of a development policy
2.1.2 Policy objectives
2.1.3 Policy instruments
2.1.4 Policy matrix
2.2 Management law
2.2.1 Legal information about pelwatte sugar company (pvt)ltd
2.2.2 Board of director’s responsibility for the financial statements
2.2.3 Auditor’s responsibilities
2.2.4 Report on other legal and regulatory requirements
2.2.5 Noncompliance with rules, regulations and management decisions
2.2.6 Management activities
2.2.7 Staff administration
2.2.8 Audit committees
2.2.9 Environmental audit
2.2.10 System and control
2.3 Labor law
2.3.1 Who do we serve
2.3.2 Sugar industry (agricultural workers) remuneration order

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2.4 The industrial relations act
2.4.1 Regulations made by the minister under section 96 of the industrial relations act
2.4.2 Second schedule (regulation 3)
2.4.2.1 Hours of work during core section
2.4.2.2 Hours of work during intercrop section
2.4.2.3 Additional work
2.4.2.4 National calculation of hourly rates
2.4.2.5 Task works
2.4.2.6 Rates of pay for cutting and/or loading
2.4.2.7 Production bonus
2.4.2.8 Disturbance allowance
2.4.2.9 Limitations on assignment of work
2.4.2.10 Conversion of monthly employment
2.4.2.11 Payment of wages
2.4.2.12 Overseas allowance
2.4.2.13 Field workers’ allowance
2.4.2.14 Travelling benefit
2.4.2.15 End of year bonus
2.4.2.16 Paid leave
2.4.2.17 Special leave
2.4.2.18 Overseas leave
2.4.2.19 Sick leave
2.4.2.20 Sugar allocation
2.4.2.21 Gratuity on retirement
2.4.2.22 Optional retirement
2.4.2.23 Gratuity of death
2.4.2.24 Maternity benefits
2.4.2.25 Grand of family of deceased worker or pensioner
2.4.2.26 Housing allowance
2.4.2.27 School transport
2.4.2.28 Medical facility
2.4.2.29 Uniforms and protective equipment
2.4.2.30 Supply of drinking water
2.4.2.31 Weekly notice of termination of employment
2.4.2.32 Trade union officials
2.4.2.33 Bonus to workers retiring before the end of the year
2.4.2.34 Issue of tools and equipment
2.4.2.35 Workers employed by job contractor
2.4.2.36 Working hour payments

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1.0 BRIEF EXPLANATION ABOUT
PELAWATTE SUGAR COMPANY
(PVT)LTD

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1.1 Introduction

Figure 1Company
Pelwatte Sugar Industries PLC is a Sri Lankan sugar manufacturing company, which is listed on the
Colombo Stock Exchange. The main sugar factory of the group is located in Buttala in the Moneragala
District, Uva Province, about 225 kilometers (140 mi) from Colombo to the east of the country. Local sugar
industries produce about 13% of Sri Lanka overall demand of sugar and pelwatte sugar industry being
largest sugar company in Sri Lanka, producing 8% from local production. Pelwatte Sugar Industries
Limited. More than 5500 workers work as local residence, part time and seasonal in the industry. The
company itself cultivate 2,700 hectares (Nucleus estate). It has settled nearly 1,500 families in the blocks.
The factory is fed their 3,500 hectare as well. More than 7,600 of out growers that spread in Monaragala,
Ampara and area around the factory.

1.2 History
Keeping with the declared aim of the Government of Sri Lanka (GOSL) to make the country self-sufficient
in sugar, a World Bank study was undertaken in 1978 to identify areas in the Monaragala District of Sri
Lanka which was considered to be suitable for rain-fed sugar cane cultivation.
Booker Tate Ltd - BTL (formerly known as Booker Agriculture International Ltd. - BAI) were invited to
carry out a feasibility study and they conducted a comprehensive study within a year and submitted their
report in 1980.The conclusion of the study was that a viable sugar estate could be established at Pelwatte
under rain fed conditions. The proposal was accepted by GOSL
Accordingly, Pelwatte Sugar Company Ltd was established in 1981. The first Board meeting of the newly
formed Pelwatte Sugar Company was held on the 30th December 1981.BAI was appointed as corporate
managers designate and began to implement the project in 1982.
The formal opening of the factory took place on 9th June 1986 by, His Excellency J.R. Jayewardene, the
President of Sri Lanka.
A factory commissioning trial was successfully undertaken in March 1986 and commercial operations
commenced on 2nd June 1986.
Pelwatte Sugar Industry was incorporated in Sri Lanka on 19th February 1981 as a private Company
managed by Booker Agriculture International Ltd. It was converted a Public Liability Company on 10th
December, 1982 and quoted in the stock exchange in 1984. In 1990, the company has changed her name to
Pelwatte Sugar Industries Ltd.
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 Subsequently the company has taken over by “Guang Dong” a Chinese company in 1994. Thereafter
Government of Sri Lanka has taken over the management until 2002.A Sri Lankan company named Master
divers (Pvt) Ltd has purchased 53.5% shareholding and taken over the management in year 2002. Master
Divers Private Limited has sold approximately 47% of the issued capital to Melstacorp which is a subsidiary
of Distillery Company of Sri Lanka PLC in year 2011 March.
As a result of that government has taken the control back under the revival of
Underperforming enterprises or underutilized assets Act No.43 of 2011” on 11 November 2011. In this period
the company has controlled under a competent authority who was the then Government Agent –
Hambanthota. This tenure has extended up to 24th August 2012 until the incorporation of Lanka Sugar
Company (Pvt) Ltd.

1.3 company layout

Figure 2Company Layout

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1.4 Main function
The main of the company is producing sugar using sugar cane. Main wastages of crushing and centrifugal
separation are bagasse and final molasses. Bagasse is use as feed to the boiler and final molasses as the feed
to the distillery

1.5 Nature of business

The company should cultivate more sugar canes. Also it should try to find a good variety of sugar cane.
The residue from the crushing mills which is known as bagasse is used as the boiler fuel. And mud from
mud filters is used to make compost. Molasses, the waste product from the low grade centrifuges, is used to
produce ethanol in the distillery. Spend wash and sludge which are the waste products from the distillery
are used to make compost.

1.6 Vision and Mission

 Vision -:
To become an eminent and technologically most advanced South Asian sugar complex that produce
20 percent of sugar and 100 percent of alcohol requirement of
Sri Lanka.

 Mission-:
To promote sugar cane cultivation, produce best quality brown sugar, alcohol and other products by
ensuring sustainable income for farmers and creating a positive workplace for employees whilst
guaranteeing remunerative return to the shareholders.

1.7 Objective

 To product 120,000 Mt of sugar.

 To support over 100,000 farmer families.
 To provide 1,500 new skill job opportunities.
 To achieve LKR 4 Billion profit.
 To contribute a minimum of 15 MW of power to the national grid.

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1.8 Organizational Structure

Organizational structure of Lanka Sugar Company (Pvt) Ltd – Pelwatte is as follows:

Figure 3organizational structure

1.9 Product & Services offered by Lanka Sugar Company Ltd

 Golden Brown Commodity Sugar | Golden Brown Value Added Picketed Sugar
 Bio – Compost Fertilizer
 Ethanol
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  Electricity Power Generation from Bio-Gas

 Production capacity (per day)

 Golden brown sugar 280MT
 Ethanol 30000 LPD
 Bio Compost 60 MT
 Electricity 3.5MW

Raw materials (per day)

 Sugar Cane 3000MT – 3500MT
 Molasses 100 – 150MT

1.10 Training Unit

There is a Training Unit in Lanka Sugar Company (Pvt) Ltd – Pelwatte. It is coming under the Department
of Human Resource (HR). Organizational structure of Training Unit as follows:
Training Officer
(Productivity Promotion Coordinator)

Admin: NAITA Trainer Workshop

Welder
Print machine operator
Contract Labor
Office assistant

There are three types of trainee’s train through the training Unit.

 In plant Trainees – Train University Students and other students of Technical collages
 NAITA Trainees – Students of National Apprentice and Industrial Training Authority and
 Company Labors

Approximately 100 students are training in Lanka sugar company (Pvt) Ltd - Pelwatte through training
center. The Training Unit provides for trainers Local as well as Overseas training facilities and they give
valuable Certificate to in Plant and NAITA students who complete training program successfully. And also
if there are vacancies, they can apply for permanent position according their qualifications and experience.
Finally, I can conclude that, Training unit provide valuable services to trainers.

1.11 Main Department of the company

Currently the company operates with main six departments. Each department consists with several sections
that are managed by HOSs and operate an Internal Audit section as an independence from other departments
and sections.

01. Human Resource Department

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02. Agriculture Department
03. Finance Department
04. Factory Department
05. Distillery Department
06. Internal audit

1.11.1 Human Resource Department

Employees of the company.

o Permanent employees
o Casual employees
o Contract employees
o Training employees

Number of the Employees

There are about 3812 employees in the company.

 Permanent employees 995

 Casual employees 1812
 Contract employees 932
 Training employees 73

In the human resource department there are nine sections. All the sections were uncrolled.

Human Resource Admin

Doing all activities of employees (recruitment, Transfer, promotion, Retirement,
compensation, gratuity and so on)

Training Centre
Training NAITA Trainees, In plant Trainees & Specially for company employees. Company
gives inbound and outbound training for the trainees and employees.

Transport Section
There are about 410 vehicles. All Vehicles’ records maintain in this section. (license, Insurance)
Security

Security section
Protecting physical and human assets of the company

Medical Centre
Supplying Medical & Other facilities for employees and settler farmers of company.

Safety Unit
Protecting every employees & Assets in the company.

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 Environment & Township
Maintain & repairing employee’s houses of the company & landscaping company premises. There are
638 houses for the employees.

Investigation Section
Investigating employees’ issues and providing solutions for the problems. Final decision taken by the
HRM.

Legal section
Main tasks are doing inquiry and signing agreements.

Structure of the HR Department

1.11.2 Agriculture Department

In this section Seed canes supply to cultivators.

Sugarcane is propagated commercially by planting whole stems or stem pieces, the so-called seed cane. The
lateral buds of the planted cane do not develop simultaneously. In general, buds near the stem apex develop
first, followed by the next lower bud and so on in order down the stem. It has been shown that this
germination gradient whole stems are maintained, but initiation of bud development is delayed, by the
presence on the seed cane of the uninjured stem apex In stems that have been segmented into cuttings with
three or more buds each, the buds of each cutting usually exhibit a similar but somewhat less pronounced
germination gradient.

Weedicides
 Paracot
 MCPA 60
 Diuron
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Diseases
 SMUT disease
 Grassy shoot disease
 Top Borer
 Pokkahboeng
 Red Rot
 Sugar Cane Rust disease

Most cultivates Varieties

SL 92-328SL 96-128 SL 95-44

M 438/59 SL 8306

Figure 4 most cultivates varieties

1.11.3 Department of Finance

The finance department of a business takes responsibility for organizing the financial and accounting affairs
including the preparation and presentation of appropriate accounts, and the provision of financial
information for managers.

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Finance department is the key department among other departments of Lanka Sugar Company (Pvt) Ltd –
Pelwatte. Head of the Department is Deputy General Manager. Every financial and Management practices
are controlled by DGM. There are several sections in Finance department. Those main sections are:

Department of Finance

Management Accounting Financial Accounting

Purchasing Section Payroll Section
Main Stores Payable Section
Cost Accounting Section Ledger Accounting Sectio
Budgeting Section Plantation Accounting Section
(Settler accounting section, out grower accounting section, ISFO accounting section)

During my training period, I have completed all the sections are in department of finance. Overall
information’s of those sections are as follows:

Purchasing Section
Purchasing Section is important section in finance department of Lanka sugar Company (Pvt) Ltd –
Pelwatte. It Purchase items (Goods, Services and Works) which help to carry out day to day business
activities continuously

Organizational Structure of Purchasing Section

Purchasing Manager
(HOS)

Assistant Purchasing Manager

Purchasing Assistants

Purchasing Clerk

Office assistant

Purchasing Procedure
1. Request to Order (RTO) and Purchase Requisition (PR) received from Main stores.
2. After checking budget allocation on PR, Purchasing Manager Assign to Subject Related Purchasing
Assistant that RTO and PR.
3. Considering amount, if it is more than Rs. 25000/- Select Suppliers from Supply register and call
quotation.

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 4. Call quotation from selected suppliers and after two weeks’ open quotation in the tender meeting at
the in front of tender committee.
5. Prepare “User schedule” by Purchasing Assistant and give to User to get approval from User.
6. After get approval from user, prepare “Tender schedule” and present to the Tender board. As well as
according to requirements it should be present to the Technical Evaluation Committee.
7. After get approval from Tender board prepare the Purchase Order by using “Baan System” and fill the
cheque request. PO and Cheque request give to Payable section.
8. After receiving Goods Receiving Notes (GRN) from the stores if there are difference received goods
from ordered things, prepare the Return orders.

Main Stores
Main stores control by the Management Accountant. There are three sub stores in Main stores of Lanka
Sugar Company (Pvt) Ltd – Pelwatte. Agriculture stores, Factory stores and General stores. As well as there
are receiving section and computer lab also.

Organizational Structure of the Main Stores

Stores Manager
(HOS)

Factory Agriculture General Receiving Computer

Stock Keeper Stock Keeper Stock Keeper Section lab

Receiving Principal
Officer Clerk and
Accounts
Clerk
Labors

Office Assistant

Functions
 Collecting Request to Order (RTO), Preparation Purchase Requisition (PR) and handover RTO and PR
to purchasing section.
 Collecting and checking Goods and preparing Goods Receiving Notes (GRN) for Direct Issues (DI)
prepare the DIC and for return goods prepare the Return to Supplier Note.
 Arranging Goods according to stock codes and Maintaining Bin Cards.
 Checking Bin Cards with monthly reports of stock which created in system.
 Writing Store Issue Requisition (SIR) and Posting SIR into system.
 Creating Stock codes.

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 Cost Accounting Section

Cost management is an activity of managers related to planning and control of costs. Managers have to take
decisions regarding use of materials, processes, product designs and have to plan costs or expenses to
support the operating plan for their department or section. All the cost activities identify according cost code
and expenditure code. For this, company handling “Cost code” book.

Organizational structure of the cost & Accounting section

Management Accountant
(HOS)

Cost Accountant

Assistant Cost Accountant

Cost Accounting clerk

Functions

 Collecting all the cost details monthly from all the sections.
 Posting Journal Vouchers to the system and preparing monthly cost accounting pack.
 Pricing inventory Stock of Main stores and Pricing fuel stock of fuel station through system.
 Updating inventory program and making valuation adjustment.
 Preparing final cost accounts and preparation of cost detailed summary to auditors
 Preparing variance reports and enter for management accountant.
 Making arrangement for controlling cost of company.

Budgeting Section
A budget is a quantitative plan for the future that assists the organization in coordinating activities. The
budget is used by a business to set expectations for revenues and expenses in future periods. As a
Manufacturing company Lanka sugar company (Pvt) Ltd – Pelwatte is preparing detailed budget and use
“Zero based” budgeting method. Accounting period is January to December. Annual budgeted final
accounts set for next year is preparing October month of every year. Limiting factor is raw materials.

Organizational structure of the Budgeting Section

Management Accountant
(HOS)

Assistant Management Accountant

Accounts clerk

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Functions

 Preparing Budgeted Profit and Loss account, Balance sheet and Cash flow statement.
 Preparing Cane budget of Settler, OG, NE, Agronomy and ISFO.
 Preparing Agriculture supporting section budget.
 Preparation of Distillery budget.
 Preparing Other projects - Golf ground
 Capital budget prepare for each department (Finance, Agriculture, HRM, Factory, Operation and
Distillery).
 Checking Budget allocation on Purchase requisition.

Payable Section

The Accounts Payable is also an integral part of the financial department. Every payment of Lanka Sugar
company (Pvt) Ltd – Pelwatte made through this Payable section. All postings in Accounts Payable are also
recorded directly in the General Ledger. The payment program can automatically carry out bank transfers
and down payments.

Organizational Structure of the Payable Section

Payable Accountant
HOS

Assistant Payable Accountants (04) Cash Office

Main Cashier and staff members (02)

Functions

 Preparation of Supply payments based on Local Purchase Order (LPO) and Overseas Purchase Order
(OPO)
 Preparation of cheque vouchers and writes Cheques.
 Preparation of molasses payments, cane transport payments and late casual salary payments.
 Payments for land preparation

Payroll section
In a company, payroll is the sum of all financial records of salaries for an employee, wages, bonuses and
deductions. In accounting, payroll refers to the amount paid to employees for services they provided during
a certain period of time. Payroll section is important section in financial department. It is responsible for
preparing salaries of every type of employees. For prepare salary payments they use a system.
Categories of employees:
 Permanent staff - Managerial grade about 130 employees and S & P (non-executive) about 1500
employees.
 Casual workers - about 3400 workers.

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  Contract labor
 Trainees
Organizational structure of the Payroll

Payroll Account
(HOS)

Casual payroll Permanent payroll

Casual payroll in charge Permanent payroll in charge

Data entry operators Officers

Office assistant

Functions
 Collecting attendance reports and salary related details from every section on 10 th of every month and
Preparing monthly salary payments of Permanent and contract employees on 25th of every month.
 Preparing salary payments of casual labors fortnightly.
 Preparing allowances for NAITA trainees (Rs 1500/-) and in plant trainees (Rs 2500/-) monthly.
 Preparing EPF and ETF reports monthly and send to the Central bank.
 PAYE tax report to Inland Revenue department.
 Deduction from employee salaries to third parties (Bank, Insurance companies) record and pay orders
transfer to them.
 Preparing gratuity payments
 Preparing Journal Vouchers and reports on salary information report to the DGM finance on or before
10th of following month.

Ledger Accounting Section

Ledger accounting section is collecting summarized, aggregated transaction data source for the preparation
of periodic financial statements. In the G/L, data are stored according to the ‘double-entry’ system and G/L
is organized into a series of ‘accounts’ (cfr. ‘chart of accounts’): data files to record transactions of a
particular type.

Organizational Structure of the Ledger Section

Ledger Accountant

Assistant Ledger accountants (03)

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Functions

 Preparing monthly and annual final accounts (Comprehensive income statement, statement of financial
position, Cash flow statement).
 Updating fixed assets register and calculating depreciation on fixed assets according standard rates.
 Preparing monthly Bank reconciliation statement.
 Preparing bicycle payments of field assistants of OG, Settler, ISFO, NE and Agronomy.
 Preparing monthly Guest house operation activity reports (Income and expenditure).
 Preparing reports on 01kg sugar packets sales by Colombo office.

Plantation Accounting Section

Plantation Accounting section of Lanka Sugar Company (Pvt) ltd – pelwatte consists with Settler accounting
section, OG accounting section and ISFO accounting section.
There are 1600 farmers in settler, around 3000 farmers in six divisions of OG and about 300 farmers in
ISFO. Company received sugar cane approximately 350000 Mt per year from those three types of farmers.

Organizational Structure of the Plantation Accounting Section

Plantation Accountant
(HOS)

Assistant accountant Out grower Assistant Accountant Settler

Account Assistant Account clerk Account Assistant

Of ISFO
Senior Account clerk Senior Account clerk

Account clerk Account clerk

Office Assistant

Functions

 Checking weigh bridge tickets with dispatch and debit notes of all the types of farmers.
 Preparing Seed cane and Commercial cane advance payments of farmers. (HLT advance payment is Rs
1500/- per ton)
 Preparing Seed cane and Commercial cane final payments of farmers. (Rs 4000/- per commercial green
cane ton, Rs: 4300/- and Rs: 4500 per ton of seed cane) settler farmer final payment prepare at the end
of harvesting. But OG and ISFO farmer final payment prepare fortnightly.
 Updating farmer loan of those three types of farmers.
 Using monthly summary, pass Journal Vouchers to Cost account section and ledger account section.

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1.11.4 Factory Department
There are about 572 employees in the Factory and there are 6 sections of the factory department

Mill & Boiler Section

Milling and boiling sugarcane fiber and generate steam. Transfer steam to the power generation
section
Quality Control Section
Checking quality of the sugarcane. Two methods use to check sugarcane quality. Purpose is
informing to framers how they should provide sugarcane to the company correctly.
Factory Lab
Inspecting & monitoring different stage of the production process
Factory Workshop
Recovering the breakdown of the factory. Mechanical Engineering, Maintaining machine and spare
parts.
Power Generation and Electrical Maintenance
Generating power using steam provided by the mill & boiler section power & Maintaining Electrical
Supply to the company

Structure of the factory Department

Civil Engineer

Figure 5 Structure of the factory department

Sugar Manufacturing Process

Harvested sugar cane from the fields is piled, picked up, tied, and transported to the sugar factory by trucks.
In the plant, a cane carrier carries the cane to the preparatory devices such as Kicker, Leveler, and Shredder,
where the cane is cut into pieces and the prepared cane is fed into the milling tandem to extract the juice.
The material left after extracting the juice is called bagasse and is used as fuel in the boilers for steam
generation. This steam generated is used in the turbine to generate power. Part of the steam from the turbine
is used for process heating requirements. The sugar-cane juice is heated to around65-70oC in the juice
heater. Then it is passed on to the juice sulphitor, where simultaneous addition of milk of lime and SO2 gas
is done. The first sulphited juice is again heated to around 102oC and the mud is allowed to settle in a

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continuous clarifier. The clear juice is drawn out and mixed with the mud. The muddy juice, filtrate, is Tons
of Crushing per Day
taken for re-processing, whereas the left out mud or filter cake is sent out and is utilized as manure for fields.
The clear juice contains around 70% water. This water is evaporated in a series of vessels called Evaporator
bodies. The concentrated juice coming out of the last body evaporator is known as syrup which has around
55-60 Brix2. This syrup is bleached once again by passing SO2 gas in the syrup sulphitor. The sulphited
syrup is drawn to vacuum pans for further concentration and crystallization. The mixture of sugar crystals
and mother liquor, massecuite3, is dropped into crystallizers. The massecuite from crystallizers is taken to
a centrifuge for separation of sugar crystals and mother liquor. The mother liquor is again taken to the pan
for re-boiling of second and third (low-grade) massecuite. The Molasses separated from the last massecuite
is known as final Molasses, which is weighed and stored. This molasses is used in the distillation process
for generation of alcohol. Sugar obtained from first grade massecuite is dried through hot and cold air
blowers over the hopper. Grading of sugar is done through a grader and then it is bagged, weighed and
stored.

Figure 6 Cane sugar manufacturing process

1.11.5. Distillery Department

• There are around 129 employees in this Department

• Produce 33000 liters per day
• Sections under Distillery Department
• Fermentation

Fermentation of molasses to produce Alcohol. molasses pump to the fermentation section from the factory.

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Distillation
Eliminate Water & get Alcohol from fermented wash.
Storage & Issuing
Storage & issuing of Ethanol for the customers
Engineering & maintenance
Maintaining & Repairing machine of distillery department

Structure of the Distillery Department

Figure 7Structure of distillery department

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Process of the Distillery

1.11.6 Internal Audit section

Frequent or ongoing audit conducted by firm’s own or independent auditors appointed by the company to
monitoring operating results, verify financial records, evaluate internal controls, assist management in
increasing efficiency and effectiveness of business operations and to detect fraud. There is an internal
audit section in Lanka sugar company (Pvt) Ltd – Pelwatte. It is independent from other departments of
the company. Head of the section is Chief Internal auditor. He directly reports to Chairman of Lanka
Sugar Company (Pvt) Ltd

Organizational Structure of the Internal Audit Section

Chief Internal Auditor (CIA)

Assistant Internal Auditor (01)

Audit assistant (01)

Senior Audit clerk (01)

Audit clerk (09)

Office assistants and driver

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Internal audit Programme

Internal Audit program

Daily Monthly Annual Seasonal System

Program Program Program Program Audit

Pre audit Operational Annual Cane purchase/

And audit of a Statements supply/ Transport
Post audit selected area
Sugar production
Spot checks
Sales/ Dispatch Monthly accounting
Checks

Lanka Sugar Company (Pvt) Ltd – pelwatte is a valuable resource of Monaragala district. Because most of
the families in Monaragala district depend on Cane cultivation and there are approximately 5000 employees
(Permanent, Contract and casual) are working in this company. It causes for increase their quality of life.

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 2.0 BRIEF EXPLANATION ABOUT LAW
SIDE OF THE PELWATTA SUGAR
COMPANY (PVT)LTD

LAW side of
pelwatte sugar
company

Policies related to Management The industrial

Labour LAW
sugar industry LAW relations act

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2.0Policies related to sugar industry
2.1 Development policy for the sugar industry

2.1.1 The necessity of a development policy

Sugar is an essential food commodity that provides caloric energy, and the country produces only 8% of the
required amount, with the rest imported at a cost of more than Rs.35 billion annually. As a result, the sugar
sector has a huge potential to contribute to GDP, employment, food and energy security, poverty alleviation,
and the economic status of the country's underdeveloped areas. By 2020, the government hopes to have
reached a 50 percent self-sufficiency level. This necessitates the creation of sugarcane cultivation and
processing complexes in new locations, in addition to the modernization and expansion of existing sugar
mills. Sugarcane business development requires a lot of money, and sugar production alone isn't very
appealing to investors. As a result, diversification of the sugar sector with goods like ENA, electricity,
animal feed, organic fertilizer, and so on is critical for the industry's long-term viability. Furthermore,
effective industry planning, supervision, and regulation are essential to meet the country's sugar
development goals.
The country has ideal climatic and soil conditions for sugarcane farming, with ample acreage in the
intermediate and dry zones.
Because of the significant price volatility, sugar-producing and exporting countries have adopted various
regulations to protect their industries, which has exacerbated the instability. As a result, the international
market price of sugar is greatly distorted.
Sri Lanka lacks a sugar policy, and as the country is aiming for quick growth in this sector by utilizing the
country's potential while dealing with international market conditions, a sugar strategy is required.

2.1.2 Policy objectives

To attain the following basic objectives, the strategy must emphasize the formation of public-private
partnerships in the sugar sub-development. sector's
 The social and economic development of underdeveloped areas in Sri Lanka's dry and intermediate
zones, as well as the improvement of people's living standards in those places.
 Expansion of sugarcane production and diversification of the sugarcane sector to include sugar,
jiggery, syrup, vinegar, fruit-flavored drinks, ENA, electricity, fertilizer, animal feed, and other
products will increase GDP contribution and create job opportunities.
 Import substitution industrialization (ISI) policy for sugar, ENA, and related products saves foreign
exchange.
 Sugar sector agro-industrial expansion and diversification to improve the industry's competitiveness
and long-term viability.
 Assisting in the country's food and energy security.
 Develop a legal, institutional, and regulatory framework for the sugar industry.
 Enhancing sugar and molasses processing efficiency.
 Investing in sugar development with a profit motive.
 Fix the price of sugar in the United States.
 Farmers receive incentives for raising cane output and producing high-quality cane, and enterprises
receive incentives for improving processing efficiencies and ensuring equity in the distribution of
earnings between grower and miller.

25 | P a g e
  Ensure mills have enough cane.
 Invest in water resources and infrastructure to support sugar production.
 Develop workforce to meet the needs of the sugar industry.
 SRI's functions should be expanded.
 By reducing carbon dioxide emissions and increasing green energy production, we can contribute to a
more sustainable future.

2.1.3 Policy instruments

In see of the sugar industry in Sri Lanka, building public-private associations within the improvement of the
sugar segment is required as the major thrust of the approach to realize wide goals such as social and
financial improvement of the in reverse ranges within the dry and halfway zones, make lawful, organization
and administrative system for sugar improvement, incentivize speculation in sugar advancement, stabilize
the residential sugar cost, expanding commitment to GDP and work era by extending sugarcane region and
generation, expansion of the sugarcane industry, guarantee cane provider to plants, ensure neighborhood
sugar industry, create water assets, foundation and labor for sugar improvement, extend the work of SRI and
reinforce regulation outline work.
Based on the doing without examination on over issues and forecasted destinations of the sugar industry, the
taking after approaches may be prescribed to attain 50% of self-sufficiency in sugar division.
1). Organization Approach: To form an empowering environment for the sugar segment since Sri Lanka does
not have a conducive lawful, organization and administrative system for the improvement of such a
sector. 20
2). Investment Approach: Sugar manufacturers/investors ought to be given adequate motivations to
contribute in unused sugarcane-factory-distillery-cogeneration complexes, broaden into other preparing
businesses, grow and modernize the existing mills/distilleries etc. Since sugar, ENA generation and power
era is profoundly capital seriously, the government has got to guarantee adequate returns to their venture
inside a shorter period.
3). Generation and Arrive Arrangement: The existing second rate sugarcane assortments ought to be
replaced with superior high-cane-yielding high-sugar assortments and the handling efficiencies have
to be moved forward. The cane property ought to be adequately huge to guarantee satisfactory pay for
producers and each sugar process ought to have an adequate least degree of arrive inside a brief
separate to guarantee a adequate supply of cane to the process.
4). An Estimating Approach: Estimating of sugarcane, sugar and by-products could be a exceptionally
critical approach instrument within the sugar industry improvement and within the past there has been
no sound estimating instrument for them. Sugarcane has been paid on the premise of weight and has
hence given no motivating force to sugarcane producers to make strides the sugar substance in cane
and to the plants to move forward handling efficiencies. A reasonable estimating arrangement will
offer assistance increment generation efficiencies and livelihoods of sugarcane cultivators and mill
operators, guarantee conveyance of wage between cultivators and mill operators and balance out the
residential advertise cost of sugar to ensure sugar makers and customers.
5). Consequence Approach: A few purport control components ought to be presented to ensure the
neighborhood sugar industry and sugar industry co-products from cheap imports. A moment
arrangement which incorporates an adequate duty rate ought to be presented to ensure the industry as
well as the shopper.
6). Water Assets and Foundation Improvement Arrangement: Renovation/rehabilitation of the existing
water system tanks and canal systems is of fundamental significance in both the existing and modern

26 | P a g e
 regions of sugar improvement as water is the foremost restricting calculate for growing sugarcane
development and accomplishing tall yields. Numerous irrigation tanks are accessible within the
existing and potential regions of sugar advancement. Since these tanks are under the Office of
Irrigation, a component should be formulated to achieve this errand.
7). Labor Advancement Approach: The extension and advancement of the sugar industry needs labor of
distinctive disciplines and fitting activity has got to be taken to guarantee that the desired labor is
accessible for the division. Agriculturists, Engineers, Technologists, Bookkeepers, Professionals etc.
are required in large numbers. Since the existing educational programs of the nation don't create labor
for the wants of the sugar industry, essential courses of action need to be made with the preparing teach
to prepare individuals within the regions required for the industry.

2.1.4 Policy matrix

Policy instrument objectives strategies
1. Institutional To make a lawful, a. Build up a service called the ‘Ministry of Sugar Industry’ by
policy regulation and blending all existing government teach which are included
administrative system within the sugar segment in arrange to maintain a strategic
for sugar distance from duplications and irregularities.
advancement.
b. A high-powered body named as “Sri Lanka Sugar Board”
comprising of the taking after individuals to be set up by
sanctioning the “Sri Lanka Sugar Act” to exhort the
government on the arrangement and administrative
measures.

i. Secretary to the Service which has been proposed to be

recently set up as the Service of Sugar Advancement
(Chairman)
ii. An agent from the Service of Finance
iii. An agent from each Service dealing with the subjects
of arrive, water resources/irrigation, horticulture and
environment
iv. An agent from the Lanka Sugar Company (Private)
Ltd.
v. An agent from the Sugarcane Investigate Institute.
vi. Agents from the private division who are included
within the sugar Industry.

c. Build up a “Sugar Stabilization Fund” beneath the same

Act (Sri Lanka Sugar Act) to supply help to ranchers and
plants and to stabilize the neighborhood sugar cost by
making lack installments to merchants amid cost boosts to
secure buyers and to pay cost bolsters to sugar makers
amid cost drops. This Sugar Stabilization Finance might
be established by redirecting a parcel of duty income
which has been proposed to extend the SCL on brown
sugar by Rs. 10/= per kg, and forcing 2% CESS on
imported sugar and ENA. The entire sum that can be
collected by expanding the over said SCL and forcing the
CESS on sugar and ENA will roughly be Rs. 7.2 Bn per
annum.

27 | P a g e
 d. Correct the SRI Act to broaden its scope of specialist to
incorporate innovation exchanges and improvement
capacities. This will empower the SRI to include in
inquire about capacities and encourage the
adoption/application of the knowledge/technology created
through investigate.
2. Investment To incentivize a. Give income/cooperate charge exclusions for a beginning
policy venture in sugar period of five a long time for renovation/modernization of
improvement and the existing sugar plants and refineries and for cogeneration
increment scale of
operation b. Give 100% assess concessions for the importation of
apparatus, gear and saves to set up modern mills/distilleries
which have a least plant measure of 2,000 TCD. Plant sizes
underneath a 2,000 TCD capacity will be allowed 50%
charge concessions for the importation of apparatus,
hardware and saves.

c. Allow 100% charge concession for the importation of

apparatus, gear and saves for remodel/ modernization of
existing mills/distilleries.

d. Look for financing through giver organizations beneath

CDM (carbon exchanging): Since sugar qualifies for carbon
exchanging by contributing to feasible vitality generation,
moderation of nursery gas emanations and empower
industrialized nations to meet their emanation lessening
targets, stores may well be found through carbon trading.

e. Indicate that the least plant measure and greatest operational

zone for each sugar process ought to be 2000 TCD and 40-
50 km span individually.
3. Production To extend tall quality a. Present a working capital credit conspire for sugarcane
and land sugarcane yields, cultivators with the back help of the proposed Sugar
policy guarantee cane Stabilization Finance. This proposed advance plot will
supplies to plants, give a most extreme sum of Rs. 200,000 per Ha for
pull in ranchers for unused planting and Rs. 185,000 per Ha for replanting
sugarcane with unused prevalent cane assortments.
development and
increment sugar and b. Perceive sugar as an essential nourishment thing and
ENA recuperations. amplify the help given to other nourishment crops by the
government, such as free water and expansion
administrations, to sugarcane growers.

c. Distribute an adequate least degree of arrive for each

existing process agreeing to their plant measure such as
3,300 Ha for a 1,250 TCD process, 5,300 Ha for a 2,000
TCD process, 9,900 Ha for a 3,000 TCD process and
10,800 Ha for a 3,300 TCD process inside a 40-50 km
sweep.

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 d. Set up four modern sugar plants in Monaragala,
Batticaloa, Kilinochchi and Ampara areas with the plant
sizes of 2,500 TCD, 2,000 TCD, 3,300 TCD and 2,000
TCD individually inside a 40 – 50 km sweep.
Appropriate arrive has been distinguished; 22,815 Ha in
Monaragala, 12,000 Ha in Baticaloa, 30,000 Ha in
Kilinochchi and 4,500 Ha in Anuradhapura.
e. Apportion greater arrive property for person cultivators
to guarantee adequate pay from sugarcane for their food.
A least holding estimate of 2 ha is proposed for each
family and arrive fracture ought to be precluded.

f. f. Receive a quality-based cane installment framework

which considers the quality of person farmer’s cane
supplies and its variety agreeing to time of collecting.
Rancher families that develop beneath production lines
with a least plant measure of 2,000 TCD and 80 YPH
will be paid Rs. 5,000 /= per Mt.

g. Present mechanized farming hones for development and

collecting of sugarcane.
4. Pricing policy increment livelihoods a. Embrace a quality and productivity-based cane installment
and guarantee framework to create high-quality sugarcane, empower mill
dissemination of operators to make strides preparing efficiencies and
wage between guarantee impartial division of continues between producer
cultivators and mill and the miller.
operators and
stabilize the b. Embrace a double estimating instrument for locally-
household showcase produced and imported sugar to form the previous cheaper
cost of sugar to than the last mentioned by forcing a variable tax to secure
ensure sugar makers the neighborhood sugar industry
and shoppers.
c. Create a productivity cost component which is the ex-
factory cost for locally-produced sugar taking into thought
taken a toll of generation, preparing proficiency, benefit and
hazard edges adequate for venture, generation charges etc. If
you don't mind see add 01.

d. Force a variable tax on the imported sugar based on the

effectiveness cost to balance out the residential advertise
cost and a certain level of settled tax to guarantee income
for the government.

e. Decide the by-product costs concurring to the items for

which they are used.

f. Expel extract obligations and value-added assess (VAT) on

ENA to empower it to be utilized as a fuel.
5. Import policy To ensure the nearby a. Present an isolated HS classification for brown sugar and
sugar industry from white sugar to dodge disarray when executing border
cheap imports of measures.
sugar and other

29 | P a g e
 sugarcane-based b. Increment the extraordinary product exact (SCL) on brown
items. sugar by Rs. 10/= per kg in arrange to dishearten
importation of brown sugar and keep the SCL on white
sugar less than brown sugar. At that point the entire sum of
SCL on brown sugar will be Rs. 40/= per kg and SCL on
white sugar will be Rs.30/= per kg.

c. Increment purport duty rates by 5% for all sorts of sugar by-

products. d. Increment the custom obligation on ENA to
Rs.450/= with the reason of fixing the border measures of
ENA importation. e. Force the next tax rate of Rs. 15/= per
kg for importation of jaggery/Sakkara in arrange to secure
neighborhood fabricates who are found in far off regions of
the Badulla and Monaragala locale.
6. Water To guarantee water a. Renovate/rehabilitate the Uda Walawe tank, Lady Oya tank
resources and system water and (Senanayake Samudraya), Ekgal Oya tank and Kantale tank
infrastructure other offices for with their canal systems. Development of the modern
development sugarcane flooded extend of Maduru Oya supply ought to be
policy. development and quickened with the reason of nourishing the recently
handling. recognized ranges for sugar mills.

b. A water asset advancement committee ought to be

designated beneath authority of the Secretary to the Service
of Water system and Water Asset Administration for the
improvement of water 25 resources within the dry zone and
restore the leaving tanks for sugarcane development.

c. Recognize the improvement of other framework, such as

street systems, water supply, schools, healing centers etc., in
modern sugar venture ranges as a duty of the government.
7. Manpower To create labor needs a. Build up a sugar industry preparing center joined to the
development of the sugar segment Sugarcane Investigate Established to prepare labor for the
policy. industry

b. Orchestrate with colleges and other significant instructive

organizations to incorporate subjects related to sugarcane in
their degree/diploma programs

c. Discover worldwide collaboration with the territorial nations

such as Thailand, India, Mauritius, Pakistan, Philippines etc.
and well built up nations such as Australia, Brazil etc. to
prepare the sugar industry and inquire about staff on sugar
and ENA fabricating, cogeneration etc.

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2.2 Management Law
2.2.1 Legal information about pelwatta sugar company (pvt)ltd

LSCPL (Lanka Sugar Company (Pvt) Ltd) is a wholly owned subsidiary of the Ministry of Plantation
Industries and Export Agriculture.

On November 11th, 2011, the government took over both the Pelwatta and Sevanagala factories by a statute
titled “Revitalization of Under-Performing Enterprises or Underutilized Assets, Act No.43 of 2011”. This
action was based on a report by a cabinet subcommittee tasked with examining the sugar industry's
performance and industrial qualities in terms of economic development at the time. The committee
suggested that the government takeover both the Sevanagala and Pelwatta sugar factories, as well as 34
other institutes, after completing an in-depth examination on their economic value and performance.

In the next year, a competent authority was appointed. However, the contract was extended till August 24,
2012, when Lanka Sugar Company (Pvt.) Ltd (LSCL) was formed.

The enterprise will be self-funded and run profitably, allowing it to save money on foreign exchange
expenditures on imported sugar and ethanol to Sri Lanka.

In 2019, the country's sugar demand is expected to reach 590,171 Mt per year. Based on 2019 data, Sri
Lanka imports 90.65% of its yearly sugar requirement while spending a massive Rs. 33.5 billion on foreign
expenditure.

In 1978, a World Bank-funded research was carried out in Sri Lanka to identify locations ideal for sugar
cane growth in order to minimize the country's reliance on imported sugar. Based on the findings, Booker
Tate PLC (previously Booker Agriculture International Ltd) of the United Kingdom conducted a feasibility
study into the introduction of rain-fed cane growing and the building of a sugar mill at Pelwatte in the
Moneragala District of Sri Lanka's Uva Province. Pelwatte Sugar Company Ltd was established as a state-
owned corporation in 1981, and it was managed by Booker Tate PLC.

Pelwatte Sugar Distilleries (Pvt) Ltd, a subsidiary created in 1997, commenced operations in September,
processing ethanol and bio-compost from molasses, a by-product of the company's sugar producing process.

The Sri Lankan government sold its stake in the company on the Colombo Stock Exchange in 2002. Master
Divers (Private) Limited, a Sri Lankan corporation, bought 53.5 percent of the company for Rs. 300 million.

Pelwatte Dairy Industries (Pvt) Limited, a new subsidiary of the corporation, was established in 2006, with
an investment of Rs. 1.8 billion in a dairy processing facility and an animal feed producing factory in the
Monaragala District.

Master Divers sold around 47 percent of the company's issued capital to Melstacorp, a subsidiary of
Distilleries Company of Sri Lanka PLC, in March 2011. Around 36% of the capital is held by Master Divers
(Private) Limited and linked parties.

Under the contentious legislation known as the "Revitalization of Underperforming Enterprises and
Underutilized Assets Act," the government expropriated full ownership of Pelwatte Sugar and Sevanagala
31 | P a g e
Sugar Industries Co Ltd, as well as its subsidiaries, in November 2011. The company was ordered to wind
up by the Commercial High Court of Western Province in March 2013.

The Sri Lankan Distilleries Company maintains that they are the company's legal owners, but they have also
filed an official claim with the Compensation Tribunal for their losses.

Pelwatte Sugar Industries PLC is a Colombo Stock Exchange-listed sugar manufacturing firm in Sri Lanka.
The group's primary sugar factory is located in Buttala, in the Moneragala District of Uva Province, about
225 kilometers (140 miles) east of Colombo. Pelwatte Sugar Company Ltd (Pelwatte Sugar) was founded
on February 19, 1981. On December 10, 1982, it became a Public Limited Liability Company. Pelwatte
Sugar Industries Ltd became the controlling company's name in 1990. In 1984, it was listed on the Colombo
Stock Exchange for the first time.

Pelwatte Sugar (PSIL) produces 450,000 metric tons of sugar (440,000 long tons and 500,000 short tons).
Pelwatte Sugar Distilleries (Private) Ltd, a subsidiary, started processing ethyl alcohol and bio compost
from molasses, a by-product of the sugar producing process, in September 1997. About 1,300 regular
employees and 3100 casual and seasonal employees work for the company. The Company owns and runs a
sugar factory with a crushing capacity of 3,000 metric tons of sugar cane (3,000 long tons; 3,300 short tons).
In the Uva province, it leases a nucleus estate of around 2,000 hectares (4,900 acres), a settler area of 3,000
hectares (7,400 acres), and a big number of growers.

32 | P a g e
2.2.2 Board of Directors Responsibility for the Financial Statements
The Board of Directors is responsible for the accurate and timely preparation of these financial statements
in accordance with Sri Lanka Accounting Standards, as well as for any internal control that management
deems necessary to enable the preparation of financial statements free of material misstatements, whether
due to fraud or error.

2.2.3 Auditor’s Responsibility

The role is to provide an opinion of the financial statements based on the findings of audit. The audit was
carried out in compliance with the Sri Lanka Auditing Standards. According to the Standards, Auditor must
follow ethical guidelines and plan and conduct the audit in order to acquire reasonable certainty that the
financial statements are free of material misstatements.
An audit entails following procedures to collect audit evidence about the financial statements' quantities and
disclosures. The processes chosen are based on the auditor's judgment, which includes a risk assessment of

33 | P a g e
major financial statement falsification, whether due to fraud or error. Internal control relevant to the
Company's preparation and fair presentation of the financial statements is considered by the auditor in
making those risk assessments in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. An
audit also includes assessing the suitability of accounting principles and the reasonableness of management's
accounting estimations, as well as assessing the financial statements' overall presentation. I believe the audit
evidence I have collected is sufficient and appropriate to support my audit conclusion.

2.2.4 Report on other legal and regulatory requirements

In accordance with section 163 (2) of the Companies Act, No. 7 of 2007, please clarify the following points.
(a) In paragraph 2.2, the grounds for the opinion, as well as the scope and limitations of the audit, are
detailed.
(b) In my opinion,
- Except for the impact of the concerns listed in the Basis for Qualified Opinion paragraph, we have
collected some information and the explanation required for the audit in the company. And we observe
that information. so, according to that we can coming to the conclusion that the company has kept
appropriate according records.
- The Company's financial statements are in compliance with Section 151 of the Companies Act, No. 07
of 2007.

2.2.5 Non-compliance with rules, regulations and management decisions

The following examples of non-compliance with laws, rules, and regulations were discovered.

Rules and Regulations Non-compliance

(a) Companies Act No. 07 of 2007

(i) 131 Section Although an Annual Report is required to be

submitted to the Registrar of Companies within 30
days of the date of the Company's Annual General
Meeting, the Company did not prepare one for the year
under review.

(ii) 133 Section Despite the fact that the Board of Directors of the
Company is required to call an Annual General
Meeting of Shareholders once a calendar year, not later
than six months after the date of the Company's
Balance Sheet and on a day not later than fifteen
months after the previous Annual General Meeting, the
Company has not held one since 2014.

2.2.6 Management Activities

The following are some observations.

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(a) Only 36 cases were completed out of a total of 104 events submitted to the Pelwatte Sugar Company's
Investigation Division during the year under review. The Company had not taken the necessary steps to
conclude its investigation, such as hiring enough investigators.
(b) At the time of the examination carried out in the Legal Division, the relevant information or any file on
cases reported until the end of the year under review were not available at the institution, and the
Management had not taken actions to assign the duties properly to the Legal Officer who had been
recruited during the year under review, or to organize the Legal Division properly.
(c) The Sevanagala Sugar Company's Carbon Dioxide Production Project was given over to a private
company in 2014, and the Company gave the land, electricity, water, and other infrastructure facilities
required for this purpose for free. Similarly, without taking into account those factors, the Company had
allowed that Company to sell Carbon Dioxide for less than the market price of Rs. 25, despite the fact
that the Company had allowed a private company to make profits for up to 20 years using the Company's
resources, and the Management had taken no steps to revise those prices and increase the Company's
revenue.
(d) Although a contract worth Rs. 27,067,812 had been awarded for the installation of Wastewater
Treatment Plants in Sevanagala Sugar Company, and it was supposed to be completed by May 2014,
the Company had failed to obtain an Environmental Protection License, which should have been
obtained by the Factory, because the Management had not taken action to complete it by the end of the
year under review.
(e) Even though there was a surplus of 409 liters of Diesel as of 23 January 2018, the Company had not
taken steps to repair the machine or provide a new fuel supply machine when pumping fuel from the
Fuel Dispensing Pump (electric) which was purchased for Rs. 479,808 in the year under review, because
the issue is less than issued at the time of issuing fuel, the Company had not taken steps to repair the
machine or provide a new fuel supply machine.
(f) 22 of the 66 oxygen cylinders in Sevanagala Sugar Company's main warehouse were missing, and the
company had not conducted investigations or attempted to recover the losses from accountable
personnel.
(g) There were more than ten Acetylene cylinders left at Sevanagala Sugar Company's storeroom. These
abnormalities had occurred as a result of the Company's failure to maintain store books, and the
Company had taken no action to address the matter.
(h) Sevanagala Sugar Company suffered a loss of Rs. 78,185 due to weak internal control processes and the
absence of acetylene gas in the 26 acetylene cylinders during the year under review. The Management,
on the other hand, had taken no steps to identify the officials guilty and recoup the money.
(i) According to the Corporate Governance Guide's "Appendix G," the Company Secretary's responsibilities
include documenting the activities of Board of Directors meetings and keeping records. The Company
Secretary, on the other hand, had not been allocated such responsibilities, and these tasks had been
delegated to another official.

2.2.7 Staff Administration

The Company had not taken steps to obtain an approved Scheme of Recruitment from the Department of
Management Services or to identify specific employees, and as a result, eight management level officers
were hired on a short-term contract basis at the Company's headquarters, and these appointments were
repeatedly extended.
35 | P a g e
2.2.8 Audit Committees
Despite the fact that the Company had appointed an Audit Committee, activities such as the preparation of
financial statements in accordance with Sri Lanka Accounting Standards, holding Annual General Meetings,
and sending Annual Reports to the Registrar of Companies were not completed on time because the Board
of Directors were not informed.

2.2.9 Environmental Audit

Even by the conclusion of the year under review, the Factory's Wastewater Refining Unit had not been
finished, and the Company had made no steps to mitigate the environmental damage caused by releasing
wastewater into the environment.

2.2.10 Systems and Controls

Deficiencies in systems and controls discovered during the audit were brought to the attention of the
Company's Chairman on a regular basis. The following domains of systems and controls necessitate special
attention.

System and control areas Observation

a) Human resource management Steps should be taken to prepare an approved
recruitment scheme and hire specific
personnel.

b) Procurement It is necessary to make arrangements to carry

out procurement activities in compliance with
the Procurement Guidelines' requirements.

36 | P a g e
2.3 Labor law

2.3.1 Who do we serve

The company encompasses an energetic administration with a vision to think, arrange and act on the success
of agrarian economy of the country. The company emphatically accepts that the nation contains a more
noteworthy potential to create the country economy, to kill destitution and provincial unemployment inside a
brief period of time by embracing correct policies beneath open private partnership. The Pelwatte company
has set a commendable benchmark on this course to memorize viable lessons for approach creators,
speculators and the cultivating community.
The company’s technique has been regularly centering towards the improvement of the cultivating
community in which the company works effectively. This methodology has made an empowering
environment for country individuals to take part energetically within the improvement handle by utilizing
cutting edge innovation and best practices.
LSCP has taken a much centered approach when choosing on how best we may react to community needs,
given the characteristics and nature of our area. We identified exceptionally early within the piece that
individuals got to have get to key ways of building a life for themselves and their families. In this way in our
CSR activities, there's a really positive center on instruction as an implies of elevating rustic youth and
giving them with the implies to look for profitable prospects.

2.3.2 Sugar industry (agricultural workers) remuneration order

This Compensation Arrange was made by the Serve of Labor and Mechanical Relations upon proposals from
the National Compensation Board beneath segment 96 of the Mechanical Relations Act 1973. It sets down the
least rates of compensation and conditions of business in regard of certain categories of workers.
The primary Compensation Arrange in regard of this division was made on 27 September 1974 by the at that
point Serve of Labor and Mechanical Relations. Earlier to that, the compensation and conditions of business

37 | P a g e
were represented by Compensation Direction Orders made beneath the Control of Compensation and
Conditions of Business Law, 1961.
A manager may pay a laborer compensation at a rate higher than that endorsed within the Compensation
Arrange and give him with more favorable conditions of business but on no account ought to the diminish a
worker's compensation or modify his conditions of service so as to form them less favorable than what is
stipulated within the Compensation Arrange.
Any manager who falls flat to comply with any of the arrangements of the Compensation Arrange might
commit an offense and might, on conviction, be at risk to detainment for a term not surpassing six months
and to a fine not surpassing two thousand rupees.

2.4 The industrial relations act

2.4.1 regulations made by the minister under section 96 of the industrial relations act.
GN No. 214 of 1983 Effective 01.10.1983
GN 64 of 1985 wef 1.10.83 GN 65 of 1986 wef 1.06.86
GN 79 of 1987 “1.07.87 Act 36 of 1988
GN 191 of 1989 “10.12.88 Reprint 1 of 1990
GN 145 of 1990 “1.02.90 Act 40 of 1993 wef 14.12.93
GN 8 of 1995 “30.01.95 GN 9 of 1995 “ 30.01.95
GN 45 of 1995 “20.04.95 GN 194 of 1997 “ 1.07.97
GN 140 of 1998 “1.07.98 GN 129 of 1999 “ 1.07.99
Reprint 2/1999 GN 168 of 2000 “ 1.07.2000
GN 135 of 2001 “1.07.2001 Act 20 of 2001
GN 185 of 2002 “1.07.2002 GN 174 of 2003 “ 1.07.2003
GN 160 of 2004 “ 1.07.2004
1. These regulations may be cited as the Sugar Industry (Agricultural Workers) (Remuneration Order)
Regulations 1983.
2. (1) In these regulations: -
"Act" implies the Mechanical Relations Act;
"chief guardian" implies a guard who is in charge of each guardian utilized on a bequest and its
annexes;
"continuous business" implies the business of a specialist beneath an assenting or beneath more than
one assenting where the interim between one assenting and the following does not surpass 28 days;
"earnings" implies - (a) fundamental wages; (b) compensation for work worn out overabundance of
an ordinary day's work or on an open occasion; and (c) any stipend or reward paid beneath sections
5, 6, 7, 11 or 12 of the Moment Schedule;
"employer" implies any individual who utilizes a worker; "field laborer (male/female)" implies a
laborer who performs manual errands related to agriculture; "gardener" implies a specialist who is
adequately gifted as to be able on his possess to sow seeds, trim supports, plan blossom beds and
38 | P a g e
 for the most part tend plants; "hospital hireling" implies a laborer who is joined to a bequest clinic
- (a) for the purpose of doing messenger's work or assisting a dresser; and
(b) is not required to clean the hospital premises;
“intercrop season”, in relation to an employer means the period intervening between the end of a
harvest and the beginning of the next harvest; (Amended GN 8/95)
“job contractor” has the same meaning as in the Labor Act; (Act 20 of 2001)
"land" means a land on which canes are, or are intended to be, cultivated;
"light field work" includes tidying and cleaning in camps, offices and factory yards, doing light
weeding, gate keeping, supplying of drinking water to other workers and working as herdsman and
in stables and handling manure;
"light trimming" means the operation commonly known as "passe la serpe pour enlever la paille
gonflée" whilst cutting canes; (Amended GN 79/87)
"marqueur" means a worker who records the presence at work of other workers and performs other
minor clerical duties;
"miller" has the same meaning as in the Cane Millers and Planters Arbitration and Control Board Act;
"normal day's work" has the meaning assigned to it in paragraph 1 of the Second Schedule;
"overseer (grade 1)" means a worker who is responsible for supervising the work of not more than
24 workers and required to -
(a) complete his daily duties;
(b) be in attendance when payment of wages is effected to workers under his supervision;
(c) prepare the weekly pay sheet of workers under his supervision on the required form;
(d) record the attendance of workers under his supervision, or the task set to each worker, or the
amount of work done or the money earned by each worker per day; (Amended GN 79/87)

"overseer (grade 2)" means a worker responsible for supervising the work of other workers;
"owner" in relation to land, includes a lessee or a beneficial occupier;
"pensioner" means a worker who is in receipt of a pension under the Sugar Industry Pension Fund
Act, the Sugar Industry Retiring Benefits Act or the National Pensions Act;

"regular labor force" has the meaning assigned to it in Part V of the Labor Act;
"special category" in relation to a worker, refers to a worker who does light field work and is
employed in accordance with section 98 of the Act;

“stipulated hours” means the hours specified in paragraphs 1and 1A of the Second Schedule;
(Amended by GN 80 of 2010)

"trade union" means a trade union in respect of which the Registrar of Associations has issued a
certificate stating that the union represents not less than twenty-five per cent of the workers
employed by an employer;

"watchman (grade 1)" means a watchman who is in charge of the offices or the annexes of an
estate;

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 "watchman (grade 2)" means a watchman other than a chief watchman or a watchman (grade 1);

"worker"
(a) means a worker employed in the sugar industry;
(b) includes –
(i) a worker previously described or commonly known, in the sugar industry, as -
(A) a field worker;
(B) a watchman;
(C) a night soil worker;
(D) a hospital servant;
(E) an overseer;
(F) a platelayer;
(G) a marqueur; or
(H) a loco-stoker; and
(ii) a worker whose work is allied to or substantially comparable to the work done by a worker
specified in paragraph (b)(i) of this definition; and
(iii) a worker employed by a job contractor; (Act 20 of 2001)

(c) does not include -

(i) a worker to whom the Sugar Industry (Non- Agricultural Workers) (Remuneration Order)
Regulations 1985 applies;
(ii) a person employed by the Mauritius Sugar Industry Research Institute.

"working day" has the same meaning as in the Labor Act;

"young person" means a worker who has attained the age of 15 years but is under the age of 18
years.

(2) A worker shall be deemed to be employed in the sugar industry if he is employed on an express or
implied contract of service, by or on behalf of a miller or an owner of land, or by a job contractor, to
do any work mainly concerned with - (Act 20 of 2001)
(a) the preparation of land, the growing, harvesting, or processing of canes, the construction, repair or
maintenance of roads, bridges or water works wholly or substantially required for the purposes of
the sugar industry, and any other work incidental to the exploitation of land; or
(b) the transport of canes, sugar, materials or supplies used in connection with any work specified in
paragraph (2) (a).

3. (1) Subject to these regulations and to paragraph 5 of the Second Schedule, every worker shall be:
(a) remunerated at the rates specified in the First Schedule; and
(b) governed by the conditions of employment specified in the Second Schedule.
(2) Where, for more than 6 days, a worker continuously replaces a worker drawing a higher remuneration,
he shall, as from the first day of replacement and for so long as he continues to replace the other
worker, be remunerated at the rate specified for the other worker. (Amended GN 79/87)

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 (3) Paragraphs 9 to 11, 13 to 19, 23, 24, 30, 32 and 33 of the Second Schedule shall not apply to a worker
employed by or on behalf of an employer whose total area of land does not, in the aggregate, exceed
25 arpents. (Amended GN 65/86)
(4) Paragraphs 7, 9, 10, 11(3) to (7), 13(2), (3) and (4), 14 to 28 and 30 to 33 of the Second Schedule shall
not apply to a worker employed by a job contractor. (Act 20 of 2001)
(5) Every field worker (female) employed on an 8-hour day and whose former basic wage or salary was
Rs 2929.84 per month or Rs 112.69 per day shall be paid, in lieu of her integrated wage or salary, a
wage or salary of Rs 3061.84 per month or Rs 117.76 per day. (GN 160/2004)
4. Any agreement by a worker to relinquish his eligibility for a paid holiday or to forego a paid holiday shall
be void.
5. (1) Every employer who owns either a sugar factory or more than 100 arpents of land under sugar cane
cultivation shall define clearly in writing the qualifications and duties of all categories of workers in
his employment and shall make such document available to any worker at his request or to any trade
union which has negotiating rights or representational status with him. (Amended Act 36/88)
(2) Where a vacancy occurs other than in the grade of field workers or a new post is created at any level
of the hierarchy in his enterprise, the employer shall advertise such vacancy or new post by a notice
conspicuously displayed outside his main office and sub-offices, if any, and, before having recourse
to external recruitment, consider offering the vacant or new post to his workers in the lower grade.
(Amended Act 36/88)
6. (1) Where an employer who owns either a sugar factory or more than 100 arpents of land under sugar
cane cultivation needs to provide training for the performance of a work in his enterprise, he shall,
when selecting the appropriate person, give consideration in priority to his workers who hold
appropriate qualifications.
(2) Where a worker is selected for training under paragraph (1), he shall be entitled to paid time off
during the training period. (Amended Act 36/88)
7. (1) Nothing in these regulations shall prevent an employer from paying a worker, remuneration at a rate
higher than that specified in the First Schedule or from granting him conditions of employment more
favorable than those specified in the Second Schedule.
(2) Nothing in these regulations shall authorize the employer of a worker in his service at the date of the
commencement of these regulations to reduce the worker's remuneration or to alter his conditions of
employment so as to make them less favorable to the worker.
(3) Where, as at 30 June 1987, a worker was being paid remuneration at a rate higher than that specified
in the First Schedule for his category, the employer shall as from 1 July 1987, pay to the worker an
additional remuneration of 15 per cent of that specified rate. (Amended GN 79/87)
8. Every employer who is a miller or an owner of land shall conspicuously display a copy of these
regulations near the entrance to every office or sub-office of his undertaking or business so that it may be
inspected by every worker.
9. The rates specified in regulation 3(5), the First Schedule and paragraphs 5 and 6 of the Second Schedule
include the appropriate additional remuneration payable under the Additional Remuneration Act.
10. The Sugar Industry (Agricultural Workers) (Remuneration Order) Regulations 1974 are revoked.
11. These regulations shall be deemed to have come into operation on 1 October 1983.

Made by the Minister on 30 December 1983

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2.4.2 Second schedule (regulation 3)

2.4.2.1 Hours of work during crop season (amended GN 8/95)

(1) Subject to subparagraph (4), where a worker other than a watchman is employed otherwise than on task
work, the length of a normal day's work, excluding any time allowed for a meal break shall be -
(a) on a Saturday, 5 hours; and
(b) on every other day which is not a public holiday
(i) 6 hours for a special category worker or a female worker after she has entered on the seventh
month of pregnancy;
(ii) 7 hours for every other worker. (Amended by GN 80 0f 2010)
(2) Subject to subparagraph (4), where a worker other than a watchman is employed on task work, he shall
be deemed to have performed a normal day's work if -
(a) excluding any time allowed for a meal break he remains diligently at work for -
(i) 5 hours on a Saturday; or
(ii) 6 hours on every other day which is not a public holiday; or
(b) he completes the task allotted to him.
(3) The task allotted to a worker, other than a watchman, on a Saturday shall be equivalent to five-sixths of
the task allotted on any other day which is not a public holiday.
(4) The length of a normal day's work for a watchman shall be 10 hours on every day which is not a public
holiday. (Amended by GN 80 of 2010)

2.4.2.2 Hours of work during intercrop season (GN 8/95)

(1) Subject to subparagraph (3), where a worker other than a watchman is employed otherwise than on task
work, the length of a normal day’s work, excluding any time allowed for a meal break, shall be -
(a) 6 hours on every day, other than a Saturday or a public holiday, for a special category worker or for a
female worker after she has entered on the seventh month of pregnancy;
(b) 8 hours on every day other than a Saturday or a public holiday.
(2) Subject to subparagraph (3), where a worker, other than a watchman, is employed on task work, he shall
be deemed to have performed a normal day’s work if—
(a) excluding any time allowed for a meal break, he remains diligently at work for 6 hours on everyday
other than a Saturday or a public holiday; (Amended GN45/95)
or
(b) he completes the task allotted to him.
(3) The length of a normal day’s work for a watchman shall be 12 hours on every day other than a Saturday
or a public holiday. (amended by GN 80 of 2010)
(4) Except where he voluntarily undertakes to do so, no worker other than a watchman shall be required to
work either on a Saturday or a public holiday during intercrop season. (Amended GN45/95)

2.4.2.3 Additional work (amended GN 80 of 2010)

(1) Subject to subparagraph (2), where a worker works on any week day in excess of the stipulated hours or
works during intercrop season on any Saturday which is not a public holiday, the employer shall, in
respect of the additional work, remunerate the worker at not less than one and a half times the rate at
which the work is remunerated when performed during the stipulated hours.
(2) Where a worker works on a public holiday, the employer shall, in addition to the remuneration payable,
remunerate the worker in respect of any work done –
(a) during the stipulated hours, at not less than twice the rate at which the work is remunerated when
performed during the stipulated hours on a week day;
(b) in excess of the stipulated hours, at not less than 3 times the rate at which the work is remunerated
when performed during the stipulated hours on a week day.

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2.4.2.4 Notional calculation of hourly rates (amended GN 80 of 2010)
For the purpose of calculating remuneration –
(a) for work done in excess of a normal day's work;
(b) for work performed on a public holiday;
(c) for task work;
(d) in respect of deductions for absences;
(e) for workers paid at a daily rate; and
(f) for any other reason,
a month shall be deemed to consist of 22 days during intercrop season and 26 days during crop season and
the basic hourly rate shall be calculated according to the formula –
(i) W/260, in the case of a watchman;
(ii) W/173.33, in the case of any other worker,
wherein "W" means the monthly basic wage of the worker.

2.4.2.5 Task work

(1) Field work, wherever possible, shall be performed on a task basis and measured by the gaulette.
(2) Where a task includes the weeding of a road adjacent to a field, that weeding shall be measured
separately and remunerated at a rate which shall not be less than the rate for weeding the field, increased
by 10 per cent.

2.4.2.6 Rates of pay for cutting and/or loading (GN 160/2004)

(1) Subject to subparagraphs (2) and (3), cutting and/or loading of properly trashed canes shall be paid for
by weight at a rate not below the following rates per tonne:
(a) cutting and carrying canes over a distance not exceeding 15 gaulettes and loading -
(i) in trailers drawn by Scammell type wheel tractors Rs147.99
(ii) in lorries Rs138.76
(iii) in tramway wagons and baskets Rs129.52
(iv) in low trailers drawn by Ferguson type wheel tractors Rs129.52
(b) cutting and carrying canes over a distance not exceeding 15 gaulettes and stacking at not more than 3
gaulettes from the point of loading Rs113.72
(c) cutting canes Rs74.01
(d) loading canes in Scammell type trailers—
(i) if carried over a distance not exceeding 3 gaulettes Rs68.43
(ii) if carried over a distance exceeding 3 gaulet tes but not exceeding 15 gaulettes Rs83.33
(e) loading canes in trailers other than that of the Scammel type -
(i) if carried over a distance not exceeding 3 gaulettes Rs61.09
(ii) if carried over a distance exceeding 3 gaulet tes but not exceeding 15 gaulettes Rs74.01
(f) loading canes in lorries -
(i) if carried over a distance not exceeding 3 gaulettes Rs66.45
(ii) if carried over a distance exceeding 3 gaulet tes but not exceeding 15 gaulettes Rs80.10
(g) cutting canes collectively up to and not exceeding 5 lines and windrowing the cut canes on one line
for mechanical loading Rs77.71
(h) cutting canes up to and not exceeding 3 lines and stacking the cut canes in stacks of 400kgs or
thereabout for mechanical loading Rs77.71
(i) cutting canes collectively on more than 3 lines but not exceeding 6 lines and stacking the cut canes in
stacks of 400kgs or thereabout for mechanical loading Rs81.34
(2) Where a worker is required to dig ruts and remove straw for stacking cut canes for mechanical side-
loading he shall be paid an allowance of not less than Rs3.76 per tonne.
(3) (a) Where canes have not been properly trashed within 3 weeks of cutting, an additional Rs15.51 per
tonne shall be paid to the worker who may, in such cases be required by the employer to carry out light
trimming with a billhook.

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 (b) Where canes have not been properly trashed within 3 weeks of cutting and the worker is not required
to carry out light trimming, he shall be paid an allowance to be agreed upon between the worker and
the employer, but which shall not be less than 33% of the allowance payable under sub-paragraph
(a).
(c) Where at the time of cutting, a full trashing is required owing to the condition of the canes, such work
shall be paid for at a rate to be agreed upon between the employer and the worker or, failing such
agreement, at a rate to be fixed by the Minister.
(d) Where canes have to be carried over a distance of more than 15 gaulettes in a field, the relevant rates
for cutting and loading or for cutting or loading done separately shall be increased by Rs 1.23 per
tonne for each additional gaulette or fraction of a gaulette, and such increased rates shall be paid for,
on the total amount of canes cut/ or loaded by the worker in the field.
(e) Where a worker has, during cutting, to move straw from one interline to another, he shall be paid an
additional Rs10.78 per tonne of canes cut.
(f) (i) Where the yield of canes is less than 20 tonnes per arpent, the relevant rates for cutting and
loading shall be increased by not less than Rs12.76 per tonne and the relevant rates for cutting or
loading done separately shall be increased by not less than Rs6.36 per tonne.
(ii) Where the yield of canes is less than 10 tonnes per arpent, the relevant rates for cutting and
loading shall be increased by not less than Rs17.26 per tonne and the relevant rates for cutting or
loading done separately shall be increased by not less than Rs8.26 per tonne.
(g) (i) Where at the point of loading, there is a difference in level, other than a slope of more than 2 feet,
an additional allowance of Rs5.97 per foot per tonne shall be paid for each additional foot or part of
a foot, in excess of the 2 feet.
(ii) The difference in level shall be measured by the perpendicular distance between the level of the
field and that of the road at the point of loading and, where there is no road, by the perpendicular
distance between the level of the field and that of the ground on which the vehicle rests at the time
of loading.
(h) Where the gradient of the slope in a field is steeper than 1 in 3, an additional Rs11.34 per tonne shall
be paid.
( i) Where, in any week, a worker -
(i) attends work on not less than 5 days; and
(ii) earns not less than the minimum basic wage each day, he shall be paid a bonus equivalent
to 5 per cent of his weekly earnings.
(j) Where a worker is required to carry canes for loading across the lines "saute muraille" also known
as "barfe" he shall be paid an allowance of Rs4.56 per tonne in addition to the relevant rates
specified in sub-paragraph (1).

2.4.2.7 Productivity bonus

Every worker who does cutting and/or loading of canes in the crop season shall be entitled to a productivity
bonus representing a percentage of his actual earnings over a period of a fortnight according to the following
table— (GN 160/2004)
Productivity Bonus Fortnightly Earnings
5% on earnings between Rs2153 and 2639
6% " not exceeding 2932
7% " " 3231
8% " " 3478
9% " " 3641
10% " " 3952
11% " " 4152
12% " " 4496
13% " " 4723
14% " " 5034
15% " exceeding 5034

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2.4.2.8 Disturbance allowance
Where a worker is required, at the end of the crop on one estate, to help terminate the crop on another estate,
irrespective of regions, he shall be entitled to a disturbance allowance of—
(a) in the case of a field worker, Rs10 daily;
(b) in the case of an overseer, Rs25 daily. (Amended GN 79/87)

2.4.2.9 Limitations on assignment of work

(1) No field worker (female) or young person shall be compelled to do -
(a) holing;
(b) uprooting;
(c) forking;
(d) crowbar work;
(e) loading;
(f) cutting;
(g) heavy cleaning or clearing;
(h) heavy buttage;
(i) any work involving the carrying of a load of more than 18 kilos;
(j) epierrage;
(k) ploughing while in charge of other workers;
(l) stub (souche) plantation;
(m) facing of stones (parmentage);
(n) altering the position of stone wall in accordance with the current practice in the northern region;
(o) furrowing after subsoiling;
(p) cutting and loading canes for planting;
(q) burying leguminous plants without ploughing; or
(r) handling of bagasse cubes. (Amended GN 79/87)

(2) No female worker shall, after she has entered on the seventh month of pregnancy, be required to do any
work other than light field work.

(3) No young person shall be required to do -

(a) any work other than unskilled field work;
(b) work under rollers;
(c) work as a sample boy;
(d) work as cleaner or stoker feeding bagasse or centrifugal helper.
(4) No field worker shall be required to perform "sens inverse" light trimming. (Amended GN 79/87)

(5) No female worker referred to in regulation 3(5) shall be required to perform any operation comprised in
plantation of canes.
(6) (a) Subject to sub-subparagraph (b), no male worker above the age of 55 years shall be compelled to
carry or load canes.
(b) A male worker above the age of 55 years may be required to carry canes where he is performing the
duties, and is paid at the rate specified in paragraph 5(1)(g), (h) or (i). (Amended GN 65/86)

(7) Where a female worker is required to carry a basket of scum, sand, manure or cane tops, the employer
shall cause a male worker to be present to help her lift the basket.
(8) No female worker above the age of 55 years shall be compelled to carry sand or scum.
(Amended GN 65/86)

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2.4.2.10 Conversion to monthly employment
Every daily worker who has completed 24 months' continuous employment with the same employer in a
grade shall be classified as a monthly worker in that grade and shall be paid accordingly with effect from the
first day of the next ensuing month.

2.4.2.11 Payment of wages

(1) Every monthly worker shall be paid his wages in 2 instalments, not later than the fifteenth and the last
working day of the month.
(2) Every daily worker shall be paid his wages during working hours
(a) on Saturday, during the crop season;
(b) on the last working day of the week, during the intercrop season. (Amended GN8/95)

(3) All payments of wages shall be made at the estate office or sub office.
(4) Every worker shall, within 72 hours after every payment receive a pay slip showing -
(a) his name;
(b) his total wages and allowances;
(c) the number of working days; and
(d) the number of days on which he was present at work.
(5) Where a day on which a worker attends work is not a working day, he shall be informed of the fact on
the same day.

2.4.2.12 Overseers' allowance

(1) Every overseer who is in charge of the spraying of herbicides or pesticides shall be paid an allowance of
Rs1.35 for each day on which he performs such work.
(2) Every overseer affected to the supervision of workers engaged in cutting and loading of canes shall be
entitled to an allowance of 0.6% of the wages (excluding the regularity and productivity bonus) of the
workers under his supervision for each day on which he performs such work. (Amended GN 79/87)

(3) (a) Subject to sub-paragraph (4), every overseer who is employed on a monthly basis and is not provided
with housing accommodation by his employer shall be entitled to an allowance of -
(i) Rs65.00, if he is single;
(ii) Rs75.00, if he is married and has no dependent child;
(iii) Rs80.00, if he is married and has up to 2 dependent children;
(iv) Rs85.00, if he is married and has more than 2 dependent children. (Amended GN 79/87)

(b) For the purpose of sub-paragraph (a), "dependent child" means a child or an adopted child under the age
of 18 who is living with and is wholly or substantially maintained by the overseer.
(4) Where the rent paid by an overseer is higher than the allowance he receives under subparagraph (3), he
shall be entitled to an additional allowance representing the difference between the rent paid and the
allowance up to a maximum of -
(i) Rs10.00 if he is single;
(ii) Rs15.00 if he is married.
(5) No overseer shall be required to carry -
(a) water for the workers under his supervision; or
(b) any tool or other material. (Amended GN 79/87)

(6) All stationery, pens or pencils used by an overseer in connection with his work shall be provided by his
employer. (Amended GN 79/87)

(7) Every overseer who is required to go from house to house after working hours in order to inform workers
under his supervision of a change of site of work, shall be entitled to an allowance of Rs25 on each
occasion he performs such extra work. (Amended GN 79/87)
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2.4.2.13 Field workers' allowance
(1) Every field worker (male) who, in the course of a normal day's work, is required to do—
(a) heavy clearing;
(b) holing;
(c) uprooting;
(d) forking;
(e) ploughing while in charge of other workers;
(f) stub (souche) planting;
(g) facing of stones (parmentage);
(h) altering the position of stone walls in accordance with the current practice in the northern regions;
(i) furrowing after subsoiling;
(j) cutting and loading canes for planting;
(k) burying leguminous plants without ploughing;
(l) handling of bagasse cubes;
(m) crow-bar work; or
(n) epierrage,
shall be entitled to an allowance equivalent to not less than 15 per cent of his wages for that day.
(2) Every field worker, (female) who, in the course of a normal day's work, is required to do trashing,
relevage de paille, spreading of fertilizer or any operation comprised in planting including the
application of ash, sand, scum and manure shall be entitled to an allowance equivalent to not less than 15
per cent of her wages for that day.
(3) Every worker who, in the course of a normal day's work is required to spray herbicides or pesticides or to
do stone or concrete breaking, shall be entitled to an allowance equivalent to not less than 20 per cent of
his wages for that day.
(4) Where a worker who is engaged to spray herbicides or pesticides is, owing to climatic conditions,
required to stop such work after 2 hours and perform some other work, he shall be entitled to the
allowance specified in subparagraph (3).
(5) Every male field worker who, in the course of a normal day's work, is required to cut cane tops shall be
entitled to an allowance equivalent to not less than 15 per cent of his wages for that day.
(Amended GN 65/86)
(6) (a) Every field worker who, in the course of a normal day's work, is required to do trashing for
mechanical loading, shall be paid an allowance of Rs5 for that day. (Amended GN 79/87)
(b) In the case of a field worker (female), the allowance specified in subparagraph (6)(a) shall be paid in
addition to the allowance payable under subparagraph (2). (Amended GN 79/87)

2.4.2.14 Travelling benefits

(1) Every worker shall, where the distance between his residence and his site of work exceeds 3.2 km (2
miles) be entitled to free transport or be paid a daily allowance equivalent to the full return bus fare
between his residence and the most practicable place nearest to his site of work. (Amended GN 79/87)
(2) Every employer shall provide an auto cycle to every marqueur who is required to cover a distance of 5
miles or more daily from the estate's office so as to perform his duties, such auto cycle remaining the
employer's property and the cost of running and maintaining it being borne by him.
(3) Every watchman who –
(a) is solely engaged in patrolling sugar cane plantations; and
(b) has not been issued with a bicycle by his employer,
shall, in addition to the allowance payable to him under subparagraph (1), be entitled to a bicycle allowance
of Rs1.25 in respect of each day on which he performs those duties. (Amended GN 65/86)

(4) Every overseer who has not been issued with a bicycle by his employer shall, in addition to the
allowance payable to him under subparagraph (1), be entitled to an allowance of Rs1.25 in respect of
each day on which he comes to work on a bicycle. (Amended GN 79/87)

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2.4.2.15 End of year bonus
(1) Every worker who has worked for the same employer in a year shall be entitled, at the end of that year to
(a) a bonus equivalent to 18 per cent of his yearly earnings if he has, both during the crop and intercrop
seasons of that year, performed a number of normal days' work which is not less than 62 per cent and
not more than 75 per cent of the number of days of work of the crop and the intercrop seasons taken
together; or
(b) a bonus equivalent to 20 per cent of his yearly earnings if he has, both during the crop and intercrop
seasons of that year, performed a number of normal days' work which is more than 75 per cent but
not more than 85 per cent of the number of days of work of the crop and the intercrop seasons taken
together; or
(c) a bonus equivalent to 22 per cent of his yearly earnings if he has, both during the crop and intercrop
seasons of that year, performed a number of normal days' work which is more than 85 per cent of the
number of days of work of the crop and the intercrop seasons taken together.
(Amended Act 36 of 1988)
(2) Every worker who does not qualify for a bonus under subparagraph (1), shall be entitled to be paid a
bonus equivalent to 8.4 per cent of his yearly earnings.
(3) For the purpose of subparagraph (1) a day on which a worker -
(a) was absent with the employer's authorization,
(b) has reported for work but has not been offered work by his employer, or
(c) has absented himself on grounds of illness or injury after notification to his employer under
paragraph 18 (3),
shall count as a working day.

2.4.2.16 Paid leave

(1) Every daily worker who reckons a number of working days which is not less than 80 per cent of the
number of working days during which his employer was harvesting his sugar cane crop shall, in the
following year, be eligible for leave on full pay as follows-
(a) 7 working days in January to be determined by the employer; and
(b) every public holiday, other than a Sunday, which occurs while he is in the employment of that
employer and on which he does not work.
(2) Every worker who has been in the continuous employment of the same employer for 12 months shall in
any year be eligible, in addition to the leave specified in subparagraph (1), for leave on full pay on 7
working days at any time in the year, other than the month of January.
(3) A worker shall, except in special circumstances, give not less than 48 hours' notice when applying for
leave and the approval of the leave shall be subject to the requirements of the employer.
(4) Leave shall not be cumulative and shall be taken in the year in which the worker is eligible to it.
(5) Wages in lieu of leave shall be paid at the end of the year if the employer fails to grant any leave applied
for by the worker.
(6) A worker who ceases to be employed after qualifying for leave under subparagraph (1) or (2) and is not
lawfully dismissed for misconduct, shall be entitled to be paid for 7 working days in lieu of his January
leave if he has not already taken it.
(7) Every watchman who works regularly on Sundays shall, in addition to the leave specified in
subparagraph (1) or (2), be entitled to 3 days' paid leave in every month, one of the days being a Sunday.
(8) (a) Where a worker who reckons continuous employment with the same employer for a period of not less
than 10 consecutive years—
(i) retires or is asked to retire on or after the age of 60;
(ii) retires before reaching the age of 60 on the ground of permanent incapacity to perform his work as
certified by a Government Medical Practitioner; or
(iii) retires under paragraph 21,
he shall be entitled to 3 months leave on full pay to be taken before retirement. (Amended GN9/95)

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(b) For the purpose of sub-subparagraph (a), "worker" means a worker who is employed by an employer
who owns either a sugar factory or more than 42.2087 hectares (100 arpents) of land under sugarcane
cultivation. (Amended GN9/95)

2.4.2.17 Special leave

(1) Every monthly worker shall be entitled to -
(a) 6 continuous working days' leave on full pay on the occasion of his marriage;
(b) 4 days' leave on full pay, on the occasion of the marriage of his child or of the death of his spouse,
father, mother or child.
(2) No worker shall claim the privilege specified in subparagraph (1)
(a) more than once.
(3) Every worker who has during the harvest season attended work on a number of days not falling below 90
per cent of the number of days on which he is required to work for his employer shall be entitled to 2
days' special leave on full pay during the following intercrop season.

2.4.2.18 Overseas leave

(1) Subject to subparagraph (2), every employer shall allow every worker reckoning continuous employment
with the same employer for a period of not less than 10 years a leave with pay of not more than 6 weeks
every 10 years to be wholly spent abroad. (Amended GN 79/87)
(2) The leave specified in subparagraph (1) shall be taken during intercrop season and shall not be
cumulative.

2.4.2.19 Sick leave

(1) Subject to subparagraph (3), every monthly worker who is sick shall be entitled in every year to -
(a) 21 working days' leave on full pay, and
(b) 21 days' leave on half pay if -
(i) he is admitted to a hospital or clinic; or
(ii) he cannot resume work after his discharge from a hospital or a clinic and requires time to
recuperate;
or
(iii) although he is not admitted to a hospital or a clinic, it is certified by a Government Medical
Officer that he is unwell and requires time to recuperate.
(2) Subject to subparagraph (3), every daily worker who has been in continuous employment with the same
employer for at least 12 months and who is sick, shall in any year, be entitled to 21 working days' leave
on full pay;
(3) Where a worker absents himself on grounds of illness, he shall notify his employer of the fact not later
than the second day of absence and, where his absence lasts for more than 4 days, he shall, in addition,
forward to his employer a medical certificate not later than the day following the fourth day of his
absence.
(4) Where, in any year, a worker who is entitled to sick leave under subparagraph (1) or (2) has taken less
than 21 days' sick leave, he shall be paid his basic wages for every day by which that period of 21 days
exceeds the number of days of sick leave taken by him.

2.4.2.20 Sugar allocation

(1) Every monthly worker who is employed by a miller shall be entitled at the end of every crop to a free
allocation of 20 kilos of sugar which shall be white in the case of a miller producing white sugar.
(2) A worker entitled to a free allocation of sugar may opt for a cash allowance representing the market
value of the sugar allocation.

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2.4.2.21 Gratuity on retirement
(1) Every employer who owns either a sugar factory or more than 42.2087 hectares (100 arpents) of land
under sugar cane cultivation shall pay a gratuity to or in respect of every worker who has worked for him
for not less than 10 consecutive years if
(a) he retires or is asked to retire on or after the age of 60;
(b) he retires before reaching the age of 60 on the ground of permanent incapacity to perform his work
certified by a Government Medical Practitioner; or
(c) he dies whilst he is on leave prior to retirement under paragraph 15 (8). (Amended GN 9/1995)
(2) (a) The gratuity shall be paid in a lump sum calculated according to the following formula—
(i) 30 (W - 1.23P) where a worker reckons not more than 25 consecutive years of service; or
(ii) N x 0.75 W, where—
(A) a worker joins employment on or after 30 January 1995; or
(B) a worker reckons more than 25 consecutive years of service.
(b) For the purpose of subparagraph (a)—
(i) "W" means either the last monthly wage or, in the case of a worker in a special category, the
highest monthly wage received by the worker during his employment on the estate;
(ii) "P" means the monthly pension to which the worker is entitled on the date the gratuity under
subparagraph (1) becomes payable;
(iii) “N” means the number of years of service. (Amended GN 9/1995)
(3) The monthly pension under subparagraph (2)(b) includes—
(a) any part of the pension which has been commuted to a lump sum;
(b) the monthly pension payable under the Sugar Industry Pension Fund Act or the pension payable
under the Sugar Industry Retiring Benefits Act;
(c) the contributory retirement pension payable under the National Pensions Act; and
(d) the pension value of the lump sum payable to the worker under section 48(2) of the National
Pensions Act.
(4) For the purpose of subparagraph (3)(c), the contributory retirement pension means—
(a) where the worker is aged 60 or over on the date the gratuity under subparagraph (1) is due and -
(i) he has elected to receive the contributory retirement pension, the contributory retirement pension
payable to him at that date; or
(ii) he has not elected to receive the contributory retirement pension, the contributory retirement pension
which would have been payable to him had he elected to receive that pension.
(b) where the worker is under the age of 60 on the date the gratuity under subparagraph (1) is due, the
contributory retirement pension which would have been payable had he –
(i) been able to retire for National Pensions purposes at that date, and
(ii) elected to receive that pension.
(5) Every worker who retires before the age of 60 on the ground of permanent incapacity shall, in addition to
any compensation to which he is entitled in respect of that incapacity under the Workmen's
Compensation Act or under Part V of the National Pensions Act be paid the gratuity under this
paragraph.
(6) A gratuity payable to a worker under this paragraph shall be reduced by the amount of the gratuity
payable to him under the Sugar Industry Retiring Benefits Act.
(7) (a) Where a worker dies, the gratuity shall be paid—
(i) to the surviving spouse; or
(ii) where the deceased leaves no spouse, in equal proportion to his dependents.
(b) For the purpose of this subparagraph—
(i) “spouse” means the person with whom the worker had contracted a civil or religious marriage and with
whom he lived under a common roof at the time of his death;
(ii) “dependent” means the person who was living in the deceased worker’s household and wholly or partly
dependent on his earnings of the time of his death. (Amended GN 9/1995)

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2.4.2.22 Optional retirement (amended by GN 79/87; gn9/95 and act 20/2001)
(1) In this paragraph, "worker" means a worker who is employed by an employer who owns either more
than 100 arpents of land under cane cultivation or a sugar factory.
(2) Every monthly worker who has been in continuous employment with the same employer for a period of
not less than 10 years may retire on or after reaching the age of—
(i) in the case of a female worker, 50 years;
(ii) in the case of a male worker, 55 years; and shall be paid a gratuity.
(3) (a) The gratuity shall be paid in a lump sum calculated according to the formula—
(i) 30 (W — 1.23P), where a worker reckons not more than 25 consecutive years of service; or
(ii) N x 0.75 W, where—
(a) a worker joins employment on or after 30 January 1995; or
(b) a worker reckons more than 25 consecutive years of service.
(b) For the purpose of sub-subparagraph (a) —
(i) "W" means either the last monthly wage or, in the case of a worker in a special category, the
highest monthly wage received by the worker during his employment on the estate;
(ii) "P" means the monthly pension to which the worker is entitled on the date the gratuity under
subparagraph (2) becomes payable.
(iii) “N” means the number of years of service
(4) The monthly pension under subparagraph (3)(b) includes -
(a) any part of the pension which has been commuted to a lump sum;
(b) the monthly pension payable under the Sugar Industry Pension Fund Act or the pension payable
under the Sugar Industry Retiring Benefits Act;
(c) the contributory retirement pension payable under the National Pensions Act; and
(d) the pension value of the lump sum payable to the worker under section 48 (2) of the National
Pensions Act.
(5) The contributory retirement pension referred to in subparagraph (4) (c) shall -
(a) in the case of a female worker aged 55 or over; or
(b) in the case of a male worker aged 58 or over; on the date the gratuity under subparagraph (2) is due,
be deemed to be the contributory retirement pension which would have been payable had the worker
been able to retire under the National Pensions Act on that date.
(6) (a) Where a worker dies while he is on leave prior to retirement under paragraph 15 (8), he shall be
entitled to the gratuity payable under this paragraph.
(b) The gratuity shall be paid—
(i) to the surviving spouse; or
(ii) where the deceased leaves no spouse, in equal proportion to his dependents.
(c) For the purpose of this subparagraph—
(i) “spouse” means the person with whom the worker had contracted a civil or religious marriage
and with whom he lived under a common roof at the time of his death;
(ii) “dependent” means the person who was living in the deceased worker’s household and wholly or
partly dependent on his earnings at the time of his death.

2.4.2.23 Gratuity at death

(1) Every employer who owns either -
(a) more than 100 arpents of land under cane cultivation; or
(b) a sugar factory, shall pay a gratuity upon the death of a worker who has worked for him for not less
than 24 consecutive months.
(2) (a) The gratuity shall be paid in a lump sum and calculated according to the formula N x W/2
(b) For the purpose of sub-subparagraph (a) -
(i) "N" means the number of years of service;
(ii) "W" means either the last monthly wage or, in the case of a worker in a special category, the
highest monthly wage received by the worker during his employment on the estate;
(Amended by GN 9/1995)

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(3) (a) The gratuity shall be paid -
(i) to the surviving spouse; or
(ii) where the deceased leaves no spouse, in equal proportion to his dependents.
(b) For the purpose of sub-subparagraph (a)—
(i) "spouse" means the person with whom the worker has contracted a civil or religious marriage and
with whom he lived under a common roof at the time of his death;
(ii) "dependent" means the person who was living in the deceased worker's household and wholly or
partly dependent on his earnings at the time of his death.
(4) No gratuity shall be payable where a lump sum or a pension is payable under the Workmen's
Compensation Act or under Part V of the National Pensions Act.

2.4.2.24 Maternity benefits (amended GN145/90)

(1) Subject to subparagraph (3), where a female worker has remained in continuous employment with the
same employer for 12 months immediately preceding her confinement, she shall, on production of a
medical certificate, be entitled to -
(a) 12 weeks' leave on full pay to be taken at her discretion before and/or after confinement provided that
at least 6 weeks' leave shall be taken immediately following the confinement; and
(b) an allowance of Rs500 payable within 7 days of her confinement, (Amended GN9/95)
(c) 800 ml of milk per day during the 3 months following her confinement or an allowance of Rs3 per
day if milk is not readily available.
(2) Subject to subparagraph (3), where a female worker is pregnant and has worked for the same employer
for not less than 150 days during the 11 months immediately preceding her confinement, she shall be
entitled to -
(a) the leave specified in subparagraph (1)(a) on half pay; and
(b) the benefits specified in subparagraphs(1)(b) and (c).
(3) Where a female worker who has at any time had 3 confinements is pregnant, she shall not be entitled to
the benefits specified in subparagraph (1) but she shall be entitled to only the leave specified in
subparagraph (1)(a) without pay.
(4) Where a female worker suffers a miscarriage which is duly certified by the estate medical practitioner or
a Government Medical Officer, she shall be entitled to a maximum of 2 weeks' leave on full pay.
(5) When the wife of a monthly worker is pregnant and is not attended to by the estate midwife, she shall be
entitled to a maternity allowance of Rs300 unless she is entitled to an allowance under subparagraph (1).
(Amended GN 145/90)

2.4.2.25 Grant to family of deceased worker or pensioner

(1) Where a worker dies, and he has during the 12 months immediately preceding his death, been in the
continuous employment of his employer, the employer shall pay a gratuity of Rs2,000—
(Amended GN9/95)
(a) to the surviving spouse; or
(b) where the deceased leaves no spouse, to a member of the deceased's family designated by the
employer.
(2) Where a pensioner dies, the person who was his employer at the date of his retirement shall pay a
gratuity of Rs1,500. (Amended GN9/95)
(a) to the surviving spouse; or
(b) where the deceased leaves no spouse to a member of the deceased's family designated by the
employer.

2.4.2.26 Housing allowance

(1) Every employer who owns more than 100 arpents of land under sugar cane cultivation shall pay to every
monthly worker who is 18 years of age or over and for whom suitable accommodation is not provided,
an allowance of
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 (a) Rs56.00, if the worker is unmarried;
(b) Rs61.00, if the worker is divorced by the decision of a court of law, or where there is separation
supported by an affidavit;
(c) Rs61.00, if the worker is a widow or widower; or
(d) Rs61.00, if the worker is married. (Amended GN 79/87)
(2) For the purpose of this paragraph -
(a) a worker shall be deemed to be married where he cohabits with a person with whom he has
undergone a civil marriage or a religious union ceremony; and
(b) where both parties to the marriage are working for the same employer, they shall be entitled to an
allowance of only Rs61.00 between them. (Amended GN 79/87)

2.4.2.27 School transport

Every employer who owns more than 100 arpents of land under cane cultivation shall -
(a) provide transport facilities for -
(i) children of his workers who attend a secondary school; and
(ii) children, not above 20 years of age, of his workers who attend a technical or vocational school
recognized by the Ministry of Education, Arts and Culture; or (Amended GN 79/87)
(b) pay to the worker the appropriate return bus fare in respect of every such child.

2.4.2.28 Medical facilities

(1) Every worker who -
(a) has been in continuous employment for 2 consecutive years with an employer who owns more than
100 arpents of land under sugar cane cultivation; and
(b) is qualified for intercrop employment during the preceding crop season, shall be entitled to -
(i) free medical attention from a medical practitioner nominated by his employer;
(ii) receive, free of charge, any drug which may be prescribed by an estate medical practitioner or by a
Government Medical Officer where the drugs prescribed by him are not available at the hospital;
(iii) expenses not exceeding Rs300.00 per year incurred for the dental treatment of the worker, his
wife and children, which expenses are duly certified by a registered dentist and that sum or any
part of it which is not claimed by the worker shall be cumulative for a period of 2 years;
(Amended GN 79/87)
(iv) a transport allowance equivalent to the return bus fare when he is referred by the estate medical
practitioner to a Government Medical Officer for treatment.
(2) For the purpose of subparagraph (1) (iii) -
(a) "dental treatment" includes "tooth extraction", "filling of tooth" and "cleaning of tooth";
(b) "wife" means the person with whom the male worker has contracted a civil or a religious marriage
and with whom he lives under a common roof;
(c) where both parties to a marriage are working for the same employer, the allowance shall not exceed
Rs300 per year. (Amended GN 79/87)
(3) Every worker engaged in spraying herbicides or pesticides shall be entitled to be medically examined
once every 6 months at his employer's expense.
(4) (a) Every worker and his dependents who reside on the estate and who fall sick at any time shall be
provided with free transport by the employer to and from a Government Hospital.
(b) For the purpose of subparagraph (a), "dependents" means the spouse of the worker and his children
or any person who is living with and is wholly or substantially maintained by him.
(Amended GN 79/87)

2.4.2.29 Uniforms and protective equipment

(1) Every employer shall, at least once a fortnight, provide every worker engaged in field work with a pair of
good quality gloves.
(2) Every employer shall provide -
(a) one plastic raincoat every 2 years -
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 (i) to every cane-carrier worker required to work in the open;
(ii) to every mobile loader helper; and
(b) one helmet to every mobile loader helper. (Amended GN 79/87)
(3) Subject to subparagraph (5), every employer shall provide -
(a) not later than 31 May of every second year, 2 pairs of boots simultaneously to every worker engaged
on irrigation work or on cleaning lakes, canals or marshes; (Amended GN 79/87)
(b) a plastic raincoat once every 2 years to every worker engaged on overhead irrigation work; and
(c) an appropriate mask to every field worker.
(4) (a) Subject to sub-subparagraphs (b) and (c) and to subparagraph (5), every employer shall provide:
(i) 2 pairs of boots simultaneously every two years, but not later than 31 May of every second year;
(ii) 2 uniforms of hard wearing material not later than 31 May in every year; and
(iii) a waterproof overall with short sleeves and a hood every 2 years, the pattern of which shall be
agreed upon between the worker and the employer or, failing agreement, as prescribed by the
Minister, but not later than 31 May of every second year; to every monthly worker and to every
worker who becomes monthly employed.
(b) The issue of uniforms, waterproof overall and the first pair of boots to a worker who becomes
monthly employed shall be made within one month of such appointment.
(c) The issue of the second pair of boots in respect of the year 1987 to every worker specified in
subparagraph 3(a), to every monthly worker and to every worker who becomes monthly employed
shall be made not later than 1 January 1988.
(d) No worker shall be entitled to boots under sub subparagraph (a) if he is already provided with boots
under subparagraph 3(a). (Amended GN 79/87)
(5) Every employer whose total area of land under cane cultivation does not, in the aggregate, exceed 100
arpents, may instead of providing uniforms and boots to his workers, pay them an allowance at the rate
of -
(a) Rs75.00 in lieu of one uniform,
(b) Rs40.00 in lieu of one pair of boots.
(6) (a) Every pair of gloves shall be made of rubber or of such other material as may be agreed upon
between the employer and the worker.
(b) Every pair of boots shall be mini-rubber boots.
(c) Every article of protective clothing or equipment -
(i) shall bear an easily identifiable mark;
(ii) may remain in the worker' s possession;
(iii) shall remain the employer's property; and
(iv) shall be replaced by the employer as soon as it becomes unserviceable.
(7) Every employer shall, once every 3 years, provide every overseer and every watchman with a good
quality raincoat, other than one made of plastic.
(8) Every worker engaged in spraying herbicides or pesticides shall be provided with such protective
equipment as is specified in section 16 of the Pesticides Control Act.

2.4.2.30 Supply of drinking water

Every field worker shall be entitled to be supplied with a reasonable quantity of drinking water in the field.

2.4.2.31 Weekly notice of termination of employment

After 2 weeks' continuous employment with the same employer, a daily worker shall be entitled to one clear
week's notice of dismissal, and the worker shall be required to give to his employer one clear week's notice
of his intention to leave.

2.4.2.32 Trade union officials

(1) Every worker who is a member of a trade union shall, subject to subparagraph (3), have the right to
invite a trade union official to attend at his place of work for the purpose of discussing matters relating to
his remuneration or conditions of employment.

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(2) Every official of a recognized trade union shall, subject to subparagraph (3) have the right to attend at the
place of work of such trade union's members for the purpose of discussing matters relating to their
remuneration or conditions of employment.
(3) Every worker who intends to invite a trade union official under subparagraph (1) or any trade union
official who intends to attend at a place of work under subparagraph (2) shall -
(a) where the place of work is a factory, give previous notification to the factory manager or one of his
assistants; and
(b) in any other case, give previous notification to the estate manager or one of his assistants.

2.4.2.33 Bonus to workers retiring before the end of the year

(1) Every worker who retires before the end of the year and who has performed a number of normal day's
work equivalent to 62 per cent of the working days during his employment in that year shall be paid a
bonus equivalent to 18 per cent of his earnings in that year.
(2) Every worker who does not qualify for a bonus under subparagraph (1) shall be paid a bonus equivalent
to 8.4 per cent of his earnings in that year.
(3) For the purpose of subparagraph (1), a day on which a worker -
(a) has absented himself with the employer's authorization;
(b) has reported for work but has not been offered work by his employer; or
(c) has absented himself on grounds of sickness or injury after notification to his employer under
paragraph 18(3), shall count as a working day.

2.4.2.34 Issue of tools and equipment (amended GN 79/87)

(1) Every employer shall issue -
(a) all tools and equipment used in the performance of work to every monthly worker; and
(b) a bill-hook to every monthly worker who is employed to cut canes.
(2) (a) The bill-hook under subparagraph 1(b) shall -
(i) be surrendered to the employer at the end of each crop season; and
(ii) be replaced by a new one at least once every 2 crop seasons.
(b) All tools, equipment and bill-hook specified in subparagraph (1) shall remain the property of the
employer.

2.4.2.35 Workers employed by job contractor

(1) Every worker employed by a job contractor shall be entitled, at the end of any year, to a bonus equivalent
to 8.4 per cent of his total earnings in that year provided that he has remained in continuous employment
with the same job contractor for at least 4 weeks in that year.
(2) For the purposes of subparagraph (1), a worker shall be deemed to be in continuous employment where
he has worked an average of at least two-thirds of the total number of working days during which he has
been in the employment of the job contractor.
(3) (a) Every job contractor shall provide a pair of boots, a pair of good quality gloves once a fortnight and
an appropriate mask to every field worker.
(b) Every article of protective equipment –
(i) may remain in the possession of the worker;
(ii) shall remain the property of the job contractor; and
(iii) shall be replaced by the job contractor as soon as it becomes unserviceable. (Act 20 of 2001)

2.4.2.36 Working hour payments

Working hours
 An employee works a maximum of 45 hours per week and pays OT on working hours. OT hours are
also limited to 12 per week.
 An OT payment is usually 1.5 times the daily wage of an employee.

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Leaves for employees
I. Annual leaves
 Employee who have worked for the company for more than a year can take 14 leaves a year, but
these 14 leaves very depending on the month the employee joined the company.
II. Casual leaves
 You can take seven days off a year for a reasonable reason. Also, if the employee has been with
the company for less than a year, these seven days cannot be taken at once. If you want you can
get a little casual leaves for 2 months.
III. Public holidays
 Paid leave is mandatory during these holidays. If a special order comes in and employees have
to work on public holidays, they have to pay twice as much OT in one day.
IV. Poya holiday
 Leave with pay even on Poya days
V. Maternity leave
 Female employees receive maternity leave. The first and second child will get 84 days of paid
leave and the children after the second child will get 42 days of paid leave.

How to terminate employees

1. With the consent of the employee.
 An employee resigns voluntarily with a letter of resignation.

2. With the written approval of the commission of labor.

 Dismissal of an employee with the written approval of the Commission of Sri Lanka.

3. With justifiable cause

 Employees' behavior and behavior are not good enough and employees who do things like work
outside the construct can be fired at any time.
 If the employee goes to court for any reason, the management must have evidence of dismissal.
 An employee must be notified at least once before being fired at once.

Minimum wage
10000
+
(2500+1000)
Budgetary allowance
+
Other allowance
=
13500 minimum salary

Time period the employee was hired on their first Number of annual leaves they'll be
year entitled to on their second year
Between January 1 and March 31 14 Days
Between April 1 and June 30 10 Days
Between July 1 and September 30 of the previous year 7 Days
Between October 1 and December 31 4 Days

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How to give break

 A half-hour break is given every 4 hours of work

Every 4 hours

30 minutes’ break

Sanitary and washing facilities

 Divide male and female into separate sanitary landfill facilities.

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 REFERENCE

 http://www.lankasugar.lk/index.php/about-us/corporate-information

 http://www.lankasugar.lk/index.php/about-us/our-chairman

 https://www.lankasugar.lk/pelwatte/index.php/management-team

 https://lankasugar.lk/index.php/9-about-us?start=4

 https://m.marketscreener.com/quote/stock/PELWATTE-SUGAR-INDUSTRIES-
20702514/company/

 https://www.sundayobserver.lk/2021/02/28/business/lanka-sugar-company-posts-rs-1200-m-
net-profit-2020

 https://m.facebook.com/pg/lankasugar/posts/

 https://lk.linkedin.com/company/lscl

 https://www.emis.com/php/companyprofile/LK/Pelwatte_Sugar_Industries_Plc_en_2313998
.html

 https://en.m.wikipedia.org/wiki/Pelwatte_Sugar_Industries

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