THE SHOP AND OFFICE EMPLOYEES ACT NO.15 OF 1954

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Labour Law Reforms

Wednesday, 25 February 2009 00:00

THE SHOP AND OFFICE EMPLOYEES ACT NO.15 OF 1954

The rigid regulation of working hours and overtime is of serious concern to the manufacturing and service sectors in the context of the need to look at flexible working arrangements to adapt to market conditions. There are certain provisions in the S&O E Act which are totally obsolete. For example, regulation to sub section 1 prohibits employment of females in or about the business of any shop or office for any period exceeding 9 hours a day (inclusive of a interval). This in effect means that a female employee cannot work overtime at all in a shop or office. Quite apart from this provision being an impediment to women in the context of equal opportunities in employment, this restriction is totally out of date and is irrelevant in the current labour market environment. In this regard, it is also relevant to draw attention to the observations made in 2006 to the government of Sri Lanka by the ILO Committee of Experts on the application of Convention No.111. The observations make special reference to the restrictions imposed on women and the need to amend the law with regard to facilitating the employment of women in the Information Technology sector. It is interesting to note the following observation: “The Committee welcomes the information and asks the government to keep it informed of any further development in this respect as well as to provide it with copies of the relevant provisions as amended”. In addition, the Act also restricts overtime work of an employee to 12 hours a week. This restriction is unrealistic and cuts across the principle of “reasonable overtime” and needs to be reviewed.

The total prohibition of employing females after 8.00 p.m., other than in certain identified establishments under the S&O E act also needs to be reviewed in today’s context where females constitute a substantial proportion, if not a majority in the service sector. In this regard specific reference is made to the business process outsourcing industry which has developed in Sri Lanka and has a lot of potential for employment generation, especially to females. Call centres necessarily require working during the night for obvious reasons. Despite repeated requests/submissions made to authorities, the provision still remains in the statute book.

Another important matter that we have drawn the attention of the authorities is with regard to holidays. This needs to be addressed from two angles. Firstly, from the point of view of the excessive number of holidays. Secondly, from the point of view of the provisions in the different statutes applicable to the private sector. The following matters should be taken note of in this regard.

a) The period of 28 hours (inclusive of leave and holidays) a week to qualify for the 1-1/2 days paid weekly holidays is not sufficient by way of a qualifying period, as the objective of the weekly holidays provision is to grant a reasonable period of rest to an employee each week. There is no rationale in permitting an employee who does not work the full week (45 hours) the benefit of 1-1/2 days paid weekly holidays. The provision as it stands envisages 1-1/2 days paid holidays a week so long as an employee works 28 hours (inclusive of leave and other holidays). It is suggested that the qualifying period for 1/1-2 days paid weekly holidays be 45 hours including leave and holidays. An amendment on these lines will assist in permitting better attendance at work and higher productivity.

b) It is not at all logical to insist on additional holidays by way of weekly holidays when the normal weekly holiday coincides with a statutory holiday. The public sect

or and a majority of the Wages Boards do not stipulate such additional holidays. Many holidays are granted each year on account of public holidays coinciding with normal weekly holidays for employees covered by the S&O E act. When viewed in the context of the number of holidays in the country, this gives rise for even greater concern. Apart from the aspect of loss of working time due to these additional holidays, much disruption and confusion results as in many Companies, their offices need to be closed on such days whereas their factories remain open. The issue of working time lost and the resultant effect on productivity is exacerbated as these situations invariably lead to long weekends.

It is unfortunate that this issue was discussed before the Labour Law Reforms Sub Committee of the National Labour Advisory Council last year and a suggested compromise was that an amendment to section 5(2) of the S& O E Act be introduced in relation to weekly holidays by way of an additional proviso. The suggested proviso is as follows:

“Provided, however, that in the event a statutory holiday coincides with a weekly holiday or a weekly half holiday the employer shall either grant the additional holiday on any day prior to 31st December in that year or make payment of an additional day’s or half day’s wage as the case may be to the employee in lieu of such additional holiday/half holiday”.