Labour Tribunal of Sri

Lanka
By Dilanga Lankathilaka
Introduction
• The Labour Tribunal of Sri Lanka is a quasi-judicial body that was established under
the Industrial Disputes Act No.43 of 1950.
• The Labour Tribunal offers a quick, informal and inexpensive way of settling
monetary disputes between employees and employers.
• Its main objective is to provide a mechanism for the resolution of disputes between
employers and employees or between trade unions and employers regarding
employment-related matters.
• In this session, we will discuss in detail the establishment, jurisdiction, composition,
cases heard, relevant acts, and how to file a case with the Labour Tribunal of Sri
Lanka.
Establishment
• The Labour Tribunal of Sri Lanka was established under the Industrial
Disputes Act No.43 of 1950.
• The Act was amended in 2003 by the Industrial Disputes (Amendment) Act
No. 56 of 2003. Subsequently, the act has been amended several times, with
the most recent amendment being in 2019.
• The amendments were made to expedite the hearing and determination of
disputes and to provide for the enforcement of decisions made by the
Labour Tribunals.
Jurisdiction
• The Labour Tribunal has jurisdiction to hear and determine disputes arising
between employers and employees or between trade unions and employers
employers in various sectors, including industrial, commercial, and service sectors.
• The disputes should relate to employment matters such as the terms and conditions
of employment, wages, bonus, gratuity, and other similar benefits, the dismissal of
an employee, the reinstatement of an employee, and trade disputes.
• The Labour Tribunal has the power to enforce its decisions and award
compensation.
Composition
• The minister may appoint any number of labout tribunals as required, Each
Labour Tribunal consists of one member. He is appointed by the Minister
of Labour, two other members appearing in the tribunal are members who
are either representing the employers or the employees. These members
should have experience or knowledge in matters related to labour.
What types of claim does the Tribunal
hear?

• The most popular items of claim lodged by employees include:

• Wages due for work done.
• Wages in lieu of notice of termination of a contract of employment by an employer
without giving the required notice.
• Pay for statutory holidays, annual leave, or rest days.
• Severance pay, long service payment or terminal payments.
• End of year payment, double pay or annual bonus/ Commission.
• Unpaid wages of up to 2 months against the principal contractor and superior sub-
contractors in the building and construction industry.
Relevant Acts
• The following Acts are relevant to the Labour Tribunal:
• The Industrial Disputes Act No.43 of 1950
• The Industrial Disputes (Amendment) Act No. 56 of 2003
• The Payment of Gratuity Act No.12 of 1983
• The Termination of Employment of Workmen (Special Provisions) Act No. 45 of 1971
• The Workmen’s Compensation Act No. 17 of 1927
• The Employment of Women, Young Persons and Children Act No. 47 of 1956
• The Wages Board Ordinance No. 27 of 1941
 Filing a Case
• To file a case with the Labour Tribunal, an aggrieved party must submit a
written complaint to the relevant Labour Tribunal. The complaint should
include the nature of the dispute, the facts of the case, and the relief sought.
The complaint should also be accompanied by relevant documents and
evidence to support the claim.
• Upon receiving the complaint, the Labour Tribunal will issue a notice to the
other party, requesting them to appear before the tribunal on a specific date.
The parties will have an opportunity to present their case, call witnesses, and
produce evidence to support their claim.
What happens after the claim has been served?

• The defendant will either:

• Agree to pay in full.
• Agree to pay but ask for time to do so by installments.
• Agree to the quantum of claim but allege that he or she is unable to pay.
• Dispute the claim in part or in whole, with or without filing a
counterclaim.
• Ignore the claim.
 Upper Limit of Claim
• This is controversial, there should not be any upper limit as per the act;
however, in practical it is different.
• The upper limit for claims heard by the Labour Tribunal is LKR 1 million
(approximately USD 5,000).
• For claims exceeding this limit, the parties can seek relief from the District
Court.