336

Labour Law and Relations:

A Human Resource Management Approach

TEST YOUR KNOWLEDGE-QUESTIONS

1. What are the legislation that govern trade unions

in Sri Lanka?
2. How can a trade union gain legal recognition?
3. How many employees should associate to form
a trade union?
4. What criteria need to be fulfilled to properly
register as a trade union under the Trade Union
Ordinance?
5. Can an association of bus drivers and bus
owners form a trade union?
6. Should employers grant leave to trade union
members to attend trade union meetings?
7. Can employers take action against employees
who form trade unions in their organizations?
8. Can nurses and attendants in government
hospitals in Sri Lanka form a trade union together?

Trade Union Ordinance No 14 of 1935 is the key piece of

legislation related to trade unions in Sri Lanka. Trade Union
Ordinance No 14 of 1935 was amended by Ordinance No 3 of
1946, Trade Union Amendment Act No 15 of 1948, Act No 18 of
1958, and Act No 24 of 1970.
 Trade Union Ordinance
337

13.1 Objectives of the Ordinance

The main purpose of enacting the Ordinance is to,
· acknowledge trade unions as lawful associations, thereby
providing the due recognition to trade unions, and
make available necessary avenues for controlling trade unions
where appropriate.

13.2 Background
.According to the constitution of Democratic Socialist Republic of
Sri Lanka,freedom of association, and freedom of joining trade unions
are guaranteed to all citizens. Based on this, the Ordinance
recognizes trade unions as legal entities once they register with the
Registrar of Trade Unions.

13.3 Definition of a Trade Union

The Ordinance defines a trade union as any association or
combination of workmen or employers, whether temporary or permanent,
having among its objectives one or more of the following:
·The regulation of relations between workmen and
employers, or between workmen and workmen, or
between employers and employers:
·The imposing of restrictive conditions on the
Trade Union Ordinance 337
conduct of any trade or business;
·The representation of either workmen or employers in
trade disputes;
 Trade Union Ordinance
337
338
Labour Law and Relations:
A Human Resource Management Approach

· The promotion or organization of strikes or lockouts in

any trade or industry or the provision of pay or other
benefits for its members during a strike or lock-out.
Any federation of two or more trade unions is also
considered a trade union according to the Ordinance.
There are certain aspects of the definition that should
be emphasized.
· Though the term 'trade unions' gives us an instant idea of
an association of employees,it can even be an association
of employers.Actually, the first trade union to be registered
under the Ordinance was in fact an employers' trade
union;i.e. Employers Federation of Ceylon.
Looking at the definition it is also important to note that
a combination/association of employers and employees
jointly would not be a trade union. It has to be a
combination of either workers or employers.
· A trade union by its rule, may have any number of
objectives, but if it is to be a trade union in the legal
sense (to be regarded as a legal entity and to be
covered by the Ordinance), its principle objectives must
be one or more of the statutory objectives stated in the
definition of the Ordinance.
·The definition of workmen is extended to cover
apprenticeship as well.

13.4 Excluding Categories

Associations of the following categories of people would
not be recognized by the law.
 Trade Union Ordinance
337
Trade Union Ordinance 339

·Self-cmployed family members

Unpaid employer-employee relationships
Judicial officers
Members of the Armed Forces
Police officers
Prison officers
· Members of a corp under the Agricultural Corps
Ordinance

13.5 Registration of Trade Unions

The Ordinance requires all unions to be registered within a period of
3 months from the date it was established.
An application to be registered must be in the prescribed
form, signed by at least seven members, and include the
following particulars:
·The names, occupations, and addresses of the
members making the application
· The name of the union and the address of its head office
· The objectives for which the Union has been established
· The date of the formation of the trade union and the
number of members on that date
The titles, names, ages, addresses, and occupations of
the officers of the union
·With the application, the constitution of the trade union
(agreed by the membership) should also be forwarded to
 Trade Union Ordinance
337

the Registrar. Some aspects that should be included in the

constitution are as follows.
 Trade Union Ordinance
337
340
Labour Law and Relations:
A Human Resource Management Approach

- The place and the name of the trade union

- Main objectives of the trade union
- The membership fee
- How the funds would be used
- How the special and general meetings of the trade
union is going to be held and time periods

The conditions under which members are entitled to

benefits assured by the rules
The conditions under which fines or forfeitures can be
imposed or varied
The manner in which the rules shall be made,
amended, varied or rescinded
The manner in which the executives, the officers of
the union, the auditor or trustees shall be appointed
and removed
The safe custody of the funds
The annual audit of the accounts
The facilities for the inspection of the account books
by officers and members
The manner in which the union may be dissolved and
the funds available at the time of dissolution disposed
of
If the Registrar is satisfied that the trade union applying for
registration has complied with the provisions of the Ordinance and with
 Trade Union Ordinance
337

relevant regulations (that the objects, rules, and the constitution of the union
are in order and not unlawful), he will register the union.

In certain instances, the Registrar may call for further

information to satisfying himself that the application
 Trade Union Ordinance
341

complies with the provisions of the Ordinance. The

registrar might also request the trade union to change its
proposed name if it is identical or resembles that of an
existing trade union.
Upon registration - the Registrar will issue a 'certificate of
registration' to the union. This certificate of registration (unless
cancelled or withdrawn) will be conclusive evidence for all
purposes that the trade union has been duly registered under this
Ordinance.

Ifthe Registrar is of the opinion that the union applying for

registration has not complied with the provisions of the Ordinance;
or its regulations, objects, rules, or constitution conflicts with the
provisions of the Ordinance or are unlawful; he may reject the
application for registration and refuse to register such trade union.
In instances of such refusals, the aggrieved party may appeal
against the refusal by filing a petition of appeal in the District Court,
within 30 days of the refusal.

Hence, in order to register under the Trade Union Ordinance

and gain legal recognition, trade unions should

- have more than seven members;

-be an association of either employees or employers
(employers and employees cannot form a trade
union together);
- have one or more of the statutory objectives stated
in the definition of trade unions included in the
Trade Union Ordinance 341
principal objectives of the trade union; and
- apply for registration within 3 months of the
formation of the trade union.
342

13.6 Consequences of Being Unregistered

If a trade union is unregistered, it will be considered an unlawful
association and cease to enjoy any of the rights, immunities
(protection), or privileges of a registered trade union.
The trade union/its officers/agents
- cannot take part in any trade dispute;
- cannot promote, organize, or finance any strike or
lockout;and
cannot provide pay or other benefits to its members
during a strike or lockout.
The trade union will be dissolved and its funds disposed
No person shall, (except for the purpose of defending
proceedings against the union or dissolving the union and
disposing of its funds in accordance with the rules), take part in the
management/organization/or act on behalf of the union.

13.7 Withdrawal or Cancellation of Registration

The Registrar has the authority to cancel or withdraw a
certificate of registration; and shall give 2 months notice in
writing of his intention to do so.
Instances of registration cancellation or withdrawal:
i. At the request of the trade union upon its
dissolution
ii. If the registrar is certain that
-the certificate of registration was obtained by fraud
or mistake;
- any one of the objectives or rules of the trade
union is unlawful;
 Trade Union Ordinance 343

- the constitution of the trade union or of its

executive is unlawful;
- that the trade union has deliberately and after
notice from the Registrar,
o disregarded any provisions of the Ordinance;
or
o allowed any rules inconsistent with the
provisions to continue in force; or
o has rescinded any rule providing for any
matter,for which provision is required by section
38;
- the funds of the trade union are expanded in an
unlawful manner/on an unlawful object/on an
objectives not authorized by the rules of the
union.; or
- the trade union has ceased to exist.

13.8 Rights, Immunities, and Privileges of

Registered Trade Unions
The Ordinance gives a trade union or its officers or members
immunity from action with regard to acts done in furtherance or
contemplation of a trade dispute on the grounds that it,
· induces another person to break a contract of
employment;
· is in interference with trade, business, or
Trade Union Ordinance 343
employment of some other person;or
· is in interference with the right of someother
person to dispose of his capital or labour.
 Trade Union Ordinance 343
344 Labour Law and Relations:
A Human Resource Management Approach

Moreover, the Ordinance grants a trade union/its

members/officers immunity from torturous acts committed in
contemplation or in furtherance of a trade dispute. It should
be noted that to obtain protection under the above provisions,
the acts should have been done either in furtherance or
contemplation ofa trade dispute, and where there is no trade
dispute the section will not apply.
·Any registered trade union may sue and be sued
in its registered name. An unregistered union may
sue and be sued under the name by which it was
known or by which it had been operating.
A registered trade union has the right to be
recognized by the employers.
· Registered trade unions have the right to take
part in trade disputes or promote, organize, or
finance a strike or a lockout.
A registered trade union can represent its members
in industrial disputes.
Aregistered union may own movable orimmovable
property in the name of its trustees.
Any fine ordered to be paid by a trade union may
be recovered by distress or sale of any movable
property belonging to the trade union.
The companies Act,Societies Ordinance, Business
Names Act,Co-operative Societies Act shall not
apply to a 'registered trade union'.

13.9 Trade Unions of Public Officers

 Trade Union Ordinance 343

Though trade unions of private sector workers were

recognized by the Trade Union Ordinance in 1935,
 Trade Union Ordinance
345

government sector employees gained this right only in

1948 through an amendment to the Ordinance. This right
was further extended by an amendment in 1970.However,
there are still certain differences in the provisions of the
Ordinance with regard to government sector employees
and private sector employees.

13.10 Special Provisions Regarding Government

Sector Trade Unions
According to the Trade Union Ordinance, public officers
mean any person in the employment of the Government of Sri
Lanka whatever may be the term or duration of employment.

·While the private sector has no restrictions with

regard to various categories of workers and different
work places being eligible for membership in trade
unions, government sector unions' membership
eligibility is restricted to;
- only different grade officers of one specific
government department (department wise); or
- same grade officers (or specified service, class, or
category of workers/officers) from various
government departments (category wise).
·While private sector trade unions can have up to
50% outsiders as officers, government sector trade
unions can have only two outsiders as officers.
One such outsider should be either the secretary or
the president and the other, a member of the trade345
Trade Union Ordinance
union.
Government sector trade unions of staff officers
cannot federate,affiliate, or amalgamate with any
other private or government trade union.
 Trade Union Ordinance
345
346
Labour Law and Relations:
A Human Resource Management Approach

· Government sector trade unions of staff officers

cannot also maintain political funds, unlike in
private sector unions.

13.11Unfair Labour Practices under Industrial

Dispute Act
Further, extending the rights given to trade unions
by Trade Union Ordinance, Industrial Dispute
(Amendment) Act No 56 of 1999 has made available the
following rights to trade unions, protecting employees
against anti-union discrimination.
An employer shall not
· require a workman to join or refrain from joining
any trade union as a condition of his
employment;
· require a workman to withdraw or refrain from
withdrawing his membership of a trade union as
a condition of his employment;
· dismiss a workman by reason only of his
membership in a trade union or of his engaging
in trade union activities;
give any inducement or promise to a workman
for the purpose of preventing him from becoming
or continuing to be amember,office bearer,or
representative of a trade union;
prevent a workman from forming a trade union,
or
 Trade Union Ordinance
345

supporting a trade union by financial or other

means;
· interfere with the conduct of the activities of a
trade union;
· dismiss or otherwise take disciplinary action
against any workman or office bearer of a trade
union
 Trade Union Ordinance
347

- for statements made by the workman or office

bearer in good faith before any Tribunal or person
in authority,

- a statement made on acts or omissions of the

employer on terms and conditions of employment
· refuse to bargain with a trade union which has in
its memberships not less than 40% of the
workmen on whose behalf such trade union seeks
to bargain. Breach of any of the above provisions
by the employer will amount to an offence, and
upon conviction after a trial before a Magistrate
Court, be fined.

13.12 Leave to Attend Trade Union Sessions and

Meetings
The Ordinance does not address the issue of granting leave to
employees toattend meetings or sessions of their trade unions. It is
generally the discretion of the employers to grant such leave or not.
However, as a means of benevolence on the part of the management,
granting such leave to attend trade union sessions, for a reasonable
number of employees on written application, can be recommended.
Such approval would help to reduce the negative attitudes of trade
unions towards management and lead to good labour management
relations. If a collective agreement specifies such granting of leave,
Trade Union Ordinance 347
then it is a must that the leave be granted according to the agreement.

Sometimes trade unions might seek approval to hold trade

union meetings in the company premises. Here again, it is up to the
management to grant such approval or not. However, management
can allow such meetings to be held in the premises with certain
restrictions.
 Trade Union Ordinance
347
348
Labour Law and Relations:
A Human Resource Management Approach

Written permission should be obtained from the

management each time such meeting is to be held

Only employees of the company would be allowed

to be present at the meetings
Meetings would not be held during working hours,
during intervals, or after working hours

13.13 Different Forms Relating to Trade Unions

Form B : Application for Registration of Trade Unions
Form C: General Statement of Assets and Liabilities
Form D: Certificate of Registration of Trade Unions
Form E: Request to Withdraw or Cancel the Certificate of
Registration
Form G: Notice of Change of Name of Trade Union
Form H : Notice of Amalgamation of Trade Unions
Form I : Notice of Dissolution of Trade Unions
Form J : Notice of Change of Office of a Registered Trade
Union

Form K: Application for the Registration of New Rules or

Alteration of Rules

Form L: Notice of Change of Officers or of the Title of Any

Officers

Form M: Form of Accounts to be kept by the Treasurer or

Other Officer in Charge of Accounts of a Trade

 Trade Union Ordinance
347

union
Form N: Annual Returns of the Trade Union to be sent to the
Registrar
 Trade Union Ordinance
347
Trade Union Ordinance 349

TEST YOUR KNOWLEDGE-ANSWERS

1. Trade Union Ordinance and Industrial Disputes Act

2. Byregistering under the Trade Union Ordinance with the

Registrar of trade unions.

3. A minimum of seven members. There is no maximum level.

4. - have more than seven members;

- be an association of either employees or employers

(employers and employees cannot form a trade union
together);

have one or more of the statutory objectives stated in the

definition of trade unions trade union;and

apply for registration within 3 months of the formation of the

trade union.

5. No. A federation of employers and employees cannot gain legal

recognition. To form a trade union, members should be either
employees or

6. It is not a mandatory requirement, and is at the discretion of the

management.