Business Law Assignment: Analysis of Sri Lankan Labor and Contract Law

This comprehensive business law report, submitted as an individual assignment for the Higher Diploma in Business Management at ICBT, delves into the intricacies of Sri Lankan law. It begins by defining law and exploring various legal systems prevalent in Sri Lanka, including Roman-Dutch law, English law, Kandyan law, Muslim law, and Thesawalmei law, while also touching upon the Supreme Law of the country. The report then transitions to employment law, also known as labor law, examining the roles and responsibilities of both employees and employers. It highlights key acts and ordinances in place to protect the weaker party within the employment context, such as the Shop and Office Employees Act, the Employees Trust Fund Act, the Payment of Gratuity Act, and the Factories Ordinance. The report further analyzes different types of employment contracts, including permanent, temporary, casual, fixed-term, and apprenticeship, and concludes with an exploration of key aspects of contract law, such as offers, invitations to treat, conditions, and warranties. The report provides a detailed overview of the legal framework governing businesses and employment in Sri Lanka.

Business Law Individual
Assignment
International Collage of Business and Technology
BUSINESS LAW
Individual Assignment on
Programme Higher Diploma in Business Management
Student Name M.D. Semini Prasangika
ICBT Student Number GM/HDBM/01/22
Subject Name Business Law
Subject Code BHNC4108
Word Count 3400
(Only the Main Assignment Body)
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Assignment
Assignment Cover Sheet
Qualification Module Number and Title
HND in Business Management BM 4157- Business Law
Student Name& No. Assessor
M.D. Semini Prasangika & GM/HDBM/01/22 Ravindi De Silva
Hand out date Submission Date
11/10/2021 11/10/2021
Assessment type
Course Work
Duration/Length of
Assessment Type
3000 words in total
Weighting of Assessment
100%
Learner declaration
I, M.D. Semini Prasangika certify that the work submitted for this assignment is my own
and research sources are fully acknowledged.
Marks Awarded
First assessor
IV marks
Agreed grade
Signature of the assessor Date
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FEEDBACK FORM
INTERNATIONAL COLLEGE OF BUSINESS & TECHNOLOGY
Module : BM4157 Business Law
Student : M.D. Semini Prasangika
Assessor : Ravindi De Silva
Assignment : Individual report
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Strong features of your work:
Areas for improvement:
Marks Awarded:

Business Law Individual
Assignment
Statement of Originality of Submitted Work
Myself M.D. Semini Prasangika
Student Id No GM/HDBM/01/22
Module Name Business Law
I hereby confirm that the work presented here in this report and all other associated
material; is wholly my own work. And I agree to assessment for plagiarism.
Signature: Semini
Date: 11/10/2021
Acknowledgment
First of all, I must give thanks to my Almighty God for the blessings given in doing
this assignment.
My sincere gratitude Ms. Ravindi De Silva, the module lecturer of Business Law.
Thank you for the support and guidance given throughout the lecture sessions and in
doing the assignment.
I also thank my parents and my colleagues for being the behind pillar in my academic
carrier. A special thanks goes to the International College of Business and
Technology, Gampaha campus for the facilities and the guidance give.
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Executive Summery
Law is a collection of conditions and responsibilities imposed by governments or
society. Sri Lanka also has a large number of laws. Most of them are laws enacted by
the government or society. Among the legal systems in Sri Lanka are Roman-Dutch
law, English law, Thesavalmei, Kandyan law, and Muslim specialized. The law is
divided by ethnicity, region, and religion. The primary purpose of the law is social
behavior.
The rules governing the relationship between the employer and the employee are
explained by labor law. The existing labor law in Sri Lanka works for the weaker
party. Various Acts and Ordinances are used for this purpose. There are Acts and
Ordinance have been prepared for that. Among those are the Shop and Office
Employees Act, the Employees Trust Fund Act, the Gratuity Payment Act, and the
Factory ordinance.
There are several types of employment in Sri Lanka. There are Permanent
employment, Temporary contract employment, Casual employment, Fixed term
employment and Apprenticeship and Training employment. These are different from
each other and have some similarities.
The contract should pay more attention to both the offer and the invitation to treat and
should pay attention to the condition and warranty when purchasing an item.
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Table of Content
Statement of Originality of Submitted Work.................................................................4
Acknowledgment...........................................................................................................4
Executive Summery.......................................................................................................5
Table of Content.............................................................................................................6
Table of Figures.............................................................................................................7
Task 01...........................................................................................................................8
1. Law Definition...........................................................................................................8
1.1. Roman Dutch Law..............................................................................................9
1.2. English Law........................................................................................................9
1.3. Kandyan Law....................................................................................................10
1.4. Muslim Law......................................................................................................10
1.5. Thesawalmei Law.............................................................................................10
2. Supreme Law...........................................................................................................10
Task 02.........................................................................................................................11
3. Employee Law = Labor Law....................................................................................11
3.1. Employee...........................................................................................................11
3.2. Employer...........................................................................................................12
4. Acts that are active in Sri Lanka to protect the weaker party..................................12
4.1. Shop and office employee Act..........................................................................12
4.2. Employees trust fund Act..................................................................................12
4.3. Payment of Gratuity Act...................................................................................13
4.4. Factories ordinances..........................................................................................13
5. Contract of employment...........................................................................................13
Task 03.........................................................................................................................14
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Task 3.1....................................................................................................................14
6. Temporary Contract of Employment.......................................................................14
Task 3.2....................................................................................................................15
3.2.1. Permanent Employment.................................................................................15
3.2.2. Probationary Employment.............................................................................16
3.2.3. Casual Employment.......................................................................................16
3.2.4. Fixed Term Contract......................................................................................17
3.2.5. Apprenticeship and Training..........................................................................17
Task 04.........................................................................................................................17
Task 4.1....................................................................................................................17
4.1.1. Offer...............................................................................................................18
Task 4.2....................................................................................................................18
4.2.1. Invitation to Treat...........................................................................................18
Task 4.3....................................................................................................................19
4.3.1. What is Contract means.................................................................................19
Task 4.4....................................................................................................................20
4.4.1. Conditions......................................................................................................20
4.4.2. Warranties......................................................................................................20
Conclusion....................................................................................................................20
References....................................................................................................................21
Table of Figures
Figure 1- Sir Salmond classification of kinds of Law....................................................8
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Task 01
1. Law Definition
Law can be defined as a rule or set of rules that have been created and implemented
by society or governments to regulate human behavior. But there is no definite
definition for law. (Courses.lumenlearning.com, 2021)
'Law' can be broadly defined more as morality, reason, order, justice on the part of
society and rules, laws, regulations, ordinances on the part of the legislature, and
judgments, courts, orders, court orders, and injunctions on the part of judges.
There are several purposes served by law. Out of these, Conflict resolution, setting
standards, protecting freedom, and maintaining order are specialized.
Sir Salmond classification of kinds of law
Sir Jhon Salmond refers to eight kind of law
Figure 1- Sir Salmond classification of kinds of Law
Sources of Law
Basic things for court decisions and legislation. (Libguides.uchastings.edu, 2021)
 Common Law
 Case Law
 Statutes
 Customs
 Constitutional Law
Legal Systems used in Sri Lanka
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Kinds of Law
Imperative
Law
Physical or
Scientific
Law
Natural or
Moral Law
Conventional
Law
Customary
Law
Practical or
Technical Law
International
Law
Civil Law

Business Law Individual
Assignment
A legal system is a set of procedures based on which the law is interpreted and
enforced
(Nyulawglobal.org, 2021)
Various legal systems have influenced the development of law in Sri Lanka. They are
Roman Dutch law, English law, Sinhala law (often referred to today as Kandyan law),
Thesawalmei law and Muslim law. The reasons for the existence of a mixed legal
system in Sri Lanka can be attributed to the different languages, ethnicities,
consequences of religious traditions and the long-term influence of foreign rulers in
the country. Ceylon was successively ruled by the Portuguese, Dutch and British
between 1505. It did not have a permanent impact on the legal and legal institutions of
Sri Lanka. But the legal development of the country was severely affected by the
Portuguese, the Dutch and the British.
The two major legal systems in Sri Lanka are Roman-Dutch law and English law.
Among other legal systems, Kandyan law, Thesawalmei, and Muslim law play a
major role in Sri Lanka.
1.1. Roman Dutch Law
The Portuguese were driven out by the Dutch in the 1600s. At the same time, Roman-
Dutch law spread throughout the country with the Dutch rule over the coastal areas of
Sri Lanka. In the 18th century, Roman-Dutch law became increasingly used in the
southwest and south. As a result, private property (land) rights in these areas
expanded rapidly, and the transfer of property was subject to Roman-Dutch law. The
Dutch also sought to symbolize the ritual law of various ethnic groups. Roman Dutch
law generally applies when Sri Lankan law and local law do not regulate relevant
issues. This Roman Dutch law applied to the Dutch settlers, to the locals who served
them, to the locals who converted to Christianity, to a limited number of Sinhalese
and Tamils living in the forts.
1.2. English Law
The British arrived in 1796 and by 1815 the whole island had fallen to the British.
British assumed that Roman-Dutch Law was the general system in Sri Lanka and
imposed that it shall continue along with the customary laws in Sri Lanka. Thereafter
Roman Dutch law was considered as the basic law in Sri Lanka. The law of Sri Lanka
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is based on the English common law system. As a result, English legal principles,
such as judicial precedent and rate determination, govern the interpretation of case
law. Civil cases are heard by the District Court, the Criminal Magistrate's Court and
the High Court. The decisions of these cases are appealed to the Court of Appeal and
later to the Supreme Court. English law includes criminal law, administrative law, and
commercial law.
1.3. Kandyan Law
Kandyan law is a ritual law that originated in the Kingdom of Kandy and applies to
Buddhists and Sri Lankans in the former provinces of the Kandyan Kingdom.
Kandyan law is one of the three customary laws still in use in Sri Lanka. As
enshrined in the Kandyan Declaration and Amendment Ordinance of 1938, Kandyan
law now governs marriage, adoption, property transfer and inheritance. Kandyan
Sinhalese have the opportunity to get married under the Marriage and Divorce
(Kandyan) Act or the general marriage.
1.4. Muslim Law
Muslim law is a special law applicable to Muslims living in Sri Lanka. Muslim law is
different from Sharia law or Islamic law, but Muslim law includes certain aspects of
Islamic law or Sharia law. Today, the personal affairs of Muslims are governed by
Muslim law. Used for marriage, divorce and maintenance, for example.
(Archives.dailynews.lk, 2021)
1.5. Thesawalmei Law
This law applies to Tamils in the Jaffna Province. In the case of Sivagnanalingam vs.
Sundaralingam, the Supreme Court in 1988 clarified that Thesavalmei law is the
private law of the Jaffna Tamils living anywhere in the country and applies to the
movable and immovable property of the Jaffna Tamil people. (Nyulawglobal.org,
2021)
Sivagnanalingam v. Suntheralingam In the case of Sivagnanalingam S.
Sundaralingam, the Supreme Court in 1988 ruled that Thesavalmei was the personal
law of the Jaffna Tamils and that it applied to their movable and immovable property
and belonged to any part of the country.
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2. Supreme Law
Supreme Law can be taken as another important topic when discuss about the legal
system in Sri Lanka. Supreme law is the constitution of the democratic socialist
republic of Sri Lanka. Supreme Law has been revised 19 times in Sri Lanka. The 20th
Amendment to the Constitution is currently in use in Sri Lanka. A 2/3 majority is
required to amend or repeal the Constitution.
Opinion
Personal opinion about the legal system is that if there is one legal system instead of
the various legal systems in Sri Lanka, it will contribute to the success of the country.
Different legal systems have emerged in Sri Lanka because of locals are divided
according to different ethnicities, religions and races. Therefore, there are conflicts of
opinions among the people of Sri Lanka. If one legal system applies to every religion,
ethnic group or nation, will be possible to enforce the law fairly.
 All the above information indicates that there is a diversified legal system in Sri
Lanka
Task 02
3. Employee Law = Labor Law
Employment law is the legal field that governs the relationship between employer
and employee. (Study.com, 2021)
Reasons why these rules apply to employees
 To prevent inconvenience
 To promote health and safety
 To establish the minimum level required for economic assistance
 To prevent work disruption due to disputes between labor and management
3.1. Employee
A person who works under the guidance and control of someone else for a salary or
wage. The employer recruits the employee and the employee works under the
employer.
Goal - Being able to help themselves and their families financially.
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Roles and responsibilities - To serve the employer faithfully, to abide by the rules, to
respect the employment contract, and to ensure the loyalty and diligence of the
service.
3.2. Employer
An employer is a person who contacts someone else, promising to pay a salary or
wage under guidance and control. The employer recruits the employee and the
employee works under the employer. (Nderitu, 2021)
Goal - Maximize productivity and efficiency
Roles and responsibilities - Ensuring the safety, health, well-being, care, and
provision of a conducive work environment for employees.
Sri Lanka labor law does not work against to the weaker party of the society. The
purpose of Sri Lankan labor law is social justice. Labor law has enacted some laws to
protect the rights of weaker parties. Various acts have been implemented in Sri Lanka
to protect the weaker parties' rights.
4. Acts that are active in Sri Lanka to protect the weaker party
4.1. Shop and office employee Act
An Act regulating the employment of shops and offices, the regulation of working
hours and salaries to be paid to employees, and related or related events.
(Srilankalaw.lk, 2021)
Key points considered by this act
 Working hours of an employee in a shop or office
 The health and comfort provide to employees
 Maternity benefits for working women
 employee’s payment
 Closing orders for shops
 offenses and penalties
4.2. Employees trust fund Act
An Act to establish a fund called the Employees' Trust Fund and to provide for or
related matters. (Srilankalaw.lk, 2021)
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