- New unified labour code in May
The Ministry of Labour and Foreign Employment has revealed plans to introduce a unified labour code by May 2023 aimed at streamlining the hiring and firing process and ensuring greater female participation in the labour force.
Speaking to The Sunday Morning Business, Secretary to the Minister of Labour and Foreign Employment Shan Yahampath stated that pursuant to the 2023 Budget proposal to introduce new labour policies, the introduction of a unified labour code by May 2023 was being sought. He further stated that steps had been taken to commence a consultative process with all stakeholders including chambers and worker unions.
Elaborating further, he stated: “There are around 40 labour-related statutes in Sri Lanka, of which only around 16 are commonly used. These statutes are outdated and overlapping and some of their definitions are no longer applicable in the present context.
“Therefore, we are introducing a unified labour code which will seek to move away from the current employee-friendly labour law system to a system that strikes a balance between the rights of the employee and the employer in order to promote business development and entrepreneurship behaviour within the country.”
He further stated that one of the main purposes of the new unified labour code was to streamline the hiring and firing process. He pointed out that these reforms were vital because the current stringent laws regarding termination had proved to be a key weakness that had dissuaded the inflow of foreign investment into the country.
Yahampath noted that one of the main reasons for the low female participation in the labour force had been the outdated labour laws of the country, which were contrary to the best interests of female workers.
He pointed out that the prevailing laws did not allow a female employee to work at night without prior permission and that the current law regarding payment of EPF and ETF had discouraged employers from hiring part-time workers, which was disproportionately impacting female employees who usually required such flexible working hours.