ACT, No. 12 OF 2010

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PARLIAMENT OF THE DEMOCRATIC
SOCIALIST REPUBLIC OF
SRI LANKA
NATIONAL INSTITUTE OF LABOUR
STUDIES ACT, No. 12 OF 2010
[Certified on 06th October, 2010]
Printed on the Order of Government
Published as a Supplement to Part II of the Gazette of the Democratic
Socialist Republic of Sri Lanka of October 08, 2010
PRINTEDAT THEDEPARTMENT OFGOVERNMENTPRINTING,SRILANKA
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National Institute of Labour Studies 1
Act, No. 12 of 2010
[Certified on 06th October, 2010]
L.D.—O. 59/2006.
ANACT TO ESTABLISH ANATIONAL INSTITUTE OF LABOUR STUDIES; TO
ESTABLISH A BOARD OF GOVERNORS FOR THE ADMINISTRATION OF
THE INSTITUTE; TO ESTABLISH TECHNICAL COMMITTEES AND A
DIVISION OF STUDIES FOR TRADE UNIONS; TO CONDUCT RESEARCH,
CARRY OUT SURVEYS AND PROVIDE TRAINING FOR THE PROMOTION OF
LABOUR STUDIES IN SRI LANKA; AND TO PROVIDE FOR MATTERS
CONNECTED THEREWITH OR INCIDENTAL THERETO.
Be it enacted by the Parliament of the Democratic Socialist
Republic of Sri Lanka as follows :-
1. This Act may be cited as the National Institute of Short title.
Labour Studies Act, No. 12 of 2010.
ESTABLISHMENT OF THE NATIONAL INSTITUTE OF LABOUR STUDIES
2. (1) There shall be established, in accordance with Establishment of
the provisions of this Act, an Institute which shall be called the National
Institute of
the National Institute of Labour Studies (hereinafter referred
Labour Studies.
to as the “Institute”).
(2) The Institute shall, by the name assigned to it by
subsection (1), be a body corporate with perpetual succession
and a common seal and may sue and be sued in such name.
3. The objects of the Institute shall be— Objects of the
Institute.
(a) to implement workers education programmes with
the collaboration of local or foreign institutes, to
take measures to ensure welfare of workers in order
to make them active partners in the development
process;
(b) to conduct seminars, workshops, conferences and
meetings on labour studies and publish magazines,
journals, periodicals and books in relation thereto;
2—PL 005150—4090 (08/2010)
2 National Institute of Labour Studies
Act, No. 12 of 2010
(c) to undertake research, carry out surveys and
provide courses of studies relating to labour
studies;
(d) to establish and maintain libraries and information
services;
(e) to work in close collaboration with institutions,
organizations, associations and societies both
national and foreign, with similar objectives;
(f) to conduct courses including Diploma Courses on
Labour Studies with the assistance of Universities
and similar institutions and award certificates and
diplomas where so required; and
(g) to engage in and promote activities aimed at
maintaining industrial harmony.
Powers of the 4. The Institute shall have such powers as may be
Institute.
necessary for the discharge of its objects and functions and
in particular shall have the power to do all or any of the
following:—
(a) to acquire, hold, take or give on lease or hire,
mortgage, pledge and sell or otherwise dispose of,
any movable or immovable property;
(b) to open and maintain current, savings or deposit
accounts in any bank or banks;
(c) to accept grants or donations from persons or bodies
of persons, whether in or outside Sri Lanka;
(d) to enter into or perform, all such contracts as may
be necessary for the exercise of its powers or the
discharge of its functions;
National Institute of Labour Studies 3
Act, No. 12 of 2010
(e) to invest any money belonging to the Institute
including any unapplied income, in any security
or to invest any such money in the purchase of
immovable property in Sri Lanka or vary such
investments, or to place in fixed deposits in any
bank; any portion of such money as are not required
for immediate expenditure;
(f) to borrow such sums of money as may be necessary
for the purpose of discharging its functions;
(g) to enter into agreements with other institutions,
whether in Sri Lanka or abroad, having objects
wholly or partly similar to those of the Institute for
the exchange and training of personnel, research
and advisory services; and generally, for such
purposes as may be in furtherance of their common
objectives;
(h) to appoint, employ, remunerate and exercise
disciplinary control over and dismiss such officers
and servants as are necessary for the discharge of
the functions of the Institute under this Act;
(i) to charge fees for the services and assistance
provided by the Institute; and
(j) to do all such other things which in the opinion of
the Institute are necessary to facilitate the discharge
of its functions.
5. (1) The administration, management and control of Administration
the affairs of the Institute shall be vested in the Board of of the Institute
to be vested in
Governors of the Institute (hereinafter referred to as the the Board.
“Board”).
(2) The Board shall for the purpose of administering the
affairs of the Institute exercise, perform and discharge the
powers, duties and functions conferred or imposed on or
assigned to the Institute by this Act.
4 National Institute of Labour Studies
Act, No. 12 of 2010
Constitution of 6. (1) The Board shall consist of the following :—
the Board.
(a) six ex-officio members, namely—
(i) the Secretary to the Ministry of the Minister
in charge of the subject of Labour;
(ii) Commissioner-General of Labour;
(iii) the Secretary to the Ministry of the Minister
in charge of the subject of Industrial
Development or his representative;
(iv) a representative from the General Treasury;
(v) The Director-General of the Institute; and
(vi) a representative from the Universities
nominated by the University Grants
Commission established by the Universities
Act, No. 16 of 1978;
(b) thirteen members appointed by the Minister
(hereinafter referred to as the “appointed members”),
namely—
(i) an officer, not below the rank of a Senior
Assistant Secretary, of the Ministry of the
Minister in charge of the subject of Public
Administration, nominated by that Minister;
(ii) an officer, not below the rank of a Senior
Assistant Secretary of the Ministry of the
Minister in charge of the subject of
Education, nominated by that Minister;
(iii) an officer, not below the rank of a Senior
Assistant Secretary of the Ministry of the
Minister in charge of the subject of
Vocational Training, nominated by that
Minister;
National Institute of Labour Studies 5
Act, No. 12 of 2010
(iv) four members representing trade unions;
(v) four members representing employers; and
(vi) two members distinguished in the field of
Labour Studies.
(2) The Secretary to the Ministry of the Minister in charge
of subject of Labour shall be appointed by the Minister as
the Chairman of the “Board” and the Commissioner-General
of Labour shall be as the Vice-Chairman of the Board.
(3) The Chairman and Vice-Chairman shall hold office
for a term of three years and shall be eligible for
reappointment.
(4) If the Chairman is by reason of illness or absence from
Sri Lanka, temporarily unable to perform the duties of his
office, the Minister shall appoint Vice-Chairman to act in
his place.
(5) If the Vice-Chairman is by reason of illness or absence
from Sri Lanka, temporarily unable to perform the duties of
his office, the Minister may appoint another member to act
in his place.
(6) A person shall be disqualified from being appointed
or from continuing as a member of the Board, if he—
(i) is, or becomes a member of Parliament or a member
of a Provincial Council or a member of a Local
Authority as the case may be; or
(ii) directly or indirectly, holds or enjoys any right or
benefit under any contract made by or on behalf of
the Institute; or
(iii) has any financial or other interest as is likely to
affect prejudicially the discharge by him of his
functions as a member of the Board.
6 National Institute of Labour Studies
Act, No. 12 of 2010
(7) The members of the Board holding office on the day
immediately preceding the date of commencement of this
Act shall continue to hold office until such time the Board is
reconstituted under section 6 of the Act.
Duties of the 7. It shall be the duty of the Board to advice the Minister
Board. on any or all of the matters related to the objects of the
Institute and or any such matter referred to the Board for
advice by the Minister.
Power of the 8. (1) The Minister may give special or general directions
Minister to give in writing as to the performance of the duties and the exercise
special or
of the powers of the Board, and the Board shall give effect to
general
directions to the such directions.
Board.
(2) The Minister may in consultation with the Board
exempt any member of trade union from the payment of a fee.
Term of office. 9. (1) An appointed member of the Board shall hold
office for a period of three years from the date of such
appointment.
(2) The Minister may if he considers it expedient to do
so, by Order published in the Gazette, remove, with reasons
assigned therefor, any appointed member of the Board from
office.
(3) An appointed member of the Board in respect of whom
an Order under subsection (2) is made by the Minister shall
vacate his office on the date of the publication of such Order
in the Gazette.
(4) An appointed member of the Board may at any time
resign his office by a letter addressed to the Minister.
(5) In the event of a vacancy occurring in the
membership of the Board as a result of any appointed
member vacating office by death, resignation, removal from
office or otherwise, another person shall, having regard to
the provisions of section 6, be appointed to fill such
vacancy.
National Institute of Labour Studies 7
Act, No. 12 of 2010
(6) Where another person is appointed to fill a vacancy
caused by the death, resignation, removal from office or
otherwise of an appointed member, the person so appointed
shall hold such office for the unexpired period of the term of
office of the member of the Board whom he succeeds.
(7) Where any appointed member is by reason of illness,
infirmity or absence from Sri Lanka temporarily unable to
perform his duties, for a period of not less than three months,
another person may having regard to the provisions of section
6, be appointed to act in his place.
(8) Any appointed member of the Board, who is absent
without leave from three consecutive meetings of the Board
shall be deemed to have vacated his office.
10. (1) The Chairman or in absence of the Chairman, Meetings of the
the Vice-Chairman shall preside at all meetings of the Board. Board.
In the absence of the Chairman or Vice-Chairman from any
meeting of the Board, the members present at such meeting
shall nominate one member from amongst those present, to
preside at such meeting.
(2) In the event of an equality of votes at any meeting of
the Board, the Chairman, Vice-Chairman or the member
presiding at such meeting shall in addition to his vote, have
a casting vote.
(3) The meetings of the Board shall be convened by the
Chairman and shall be held as frequently as is necessary for
the purpose of effectively discharging the functions of the
Institute under this Act.
(4) The quorum for meeting of the Board shall be five
members.
(5) The Board may pay any member with the approval of
the Minister, such remuneration or allowance, as may be
decided by the Board with the concurrence of the Minister
in charge of the subject of Finance.
8 National Institute of Labour Studies
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(6) Subject to the provisions of this Act, regulations
may be made by the board regulating the procedure to be
followed with regard to the conduct of its meetings and the
transaction of business at such.
(7) The Board shall in the exercise of its powers, the
performance of its duties and the discharge of its functions,
be subject to and act in accordance with such directions as
the Minister may from time to time issue.
Delegation of 11. (1) The Board may delegate to any member of the
powers and Board any of the powers and duties.
duties of the
Board.
(2) The member to whom such powers and duties have
been delegated shall exercise and perform such powers and
duties subject to the general or special directions of the
Board, which may be issued from time to time.
Proceedings of 12. Subject to the provisions of subsection (4) of section
the Board not to 10 the Board shall have the power to act notwithstanding
be invalid by
reason of any any vacancy in its membership and no act or proceedings of
vacancy or the Board shall be invalid by reason only of the existence of
defect in the any such vacancy or any defect in the appointment of a
appointment of
member. member thereof.
Seal of the 13. The seal of the Board—
Board.
(a) shall be in the custody of the Chairman of the Board;
(b) shall be of such design and shall be approved by
the Board and may be altered in such manner as
may be determined by the Board; and
(c) shall not be affixed to any document except in the
presence of two members of the Board, both of whom
shall sign the document in token of their presence.
National Institute of Labour Studies 9
Act, No. 12 of 2010
STAFF OF THE INSTITUTE
14. Subject to the provisions of this Act and any Staff of the
regulations made thereunder, the Board shall have the Institute
power to—
(a) appoint, dismiss, and exercise disciplinary control
over the officers and servants of the Institute;
(b) fix the wages or salaries or other remuneration of
the staff;
(c) determine the terms and conditions of service of
such staff; and
(d) establish and regulate schemes for the benefit of
such staff.
15. (1) The Board shall appoint a person to be the Appointment of
the Director-
Director-General of the Institute, who shall be the Chief
General.
Executive Officer of the Institute for a period of three years
and eligible for reappointment if the Board decides.
(2) The Director-General shall execute or perform such
powers, functions and duties as may be delegated to him by
the Board.
(3) The Board may appoint such other Directors as may
be necessary for the purposes of the Institute.
16. (1) The Board may appoint such number of Technical Establishment of
Committees as are necessary for the purpose of carrying out Technical
Committees.
the functions under this Act.
(2) A Technical Committee appointed by the Board shall
carry out its functions and fulfill its obligations as stipulated
in the terms of reference given to such Technical Committee
by the Board.
10 National Institute of Labour Studies
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(3) The Board shall determine the period of office of each
Technical Committee and reconstitute the same wherever
necessary.
(4) The Board may where it consider it necessary so to
do, co-opt as a member to a Technical Committee any person
who possesses the required knowledge and experience in
the relevant field.
(5) The Technical Committee shall comprise of three
members. Namely, a representative each of the employees,
the employers and the public sector.
(6) The Board shall nominate one member to be the
Chairman of the Committee.
(7) The Board may pay to any member or co-opted member
of a Technical Committee with the approval of the Minister,
such remuneration or allowance, as may be decided by the
Board.
Establishment of 17. (1) There shall be established a Division of Studies
a Division of for Trade Unions (hereinafter referred to as “the Division of
Studies for
Trade Unions. Studies”) for the implementation of the objects set out in
subsection(4). The Division of Studies shall commence the
discharge of its functions from such date as the Minister
may by Order published in the Gazette appoint .
(2) The Board shall appoint a Director who shall function
as the Divisional Head of the Division of Studies.
(3) The Board shall appoint officers and servants as may
required for the purposes of the Division of Studies.
(4) The objects of the Division of Studies shall be to—
(a) provide training for members of Trade Unions,
employees, employers, representatives of employers
and employees and public servants; and
National Institute of Labour Studies 11
Act, No. 12 of 2010
(b) conduct training courses, seminars, workshops
on labour laws, trade unions, finance, commerce,
trade, supply of goods and services, labour
management and such other courses which in the
opinion of the Board will facilitate development of
trade unions.
(5) The Divisional Head of the Division of Studies and
officers and servants shall act under the general or special
directions of the Director-General of the Institute.
(6) The Board may establish such number of branches of
the Division of Studies in the regions as are required in its
opinion for the achievement of the objects of the Division
of Studies.
18. (1) The Institute may make rules in respect of all or Rules.
any matter for which rules are authorized or required by this
Act to be made.
(2) Every rule made by the Institute under subsection (1)
shall not have effect until it is approved by the Minister and
is published in the Gazette.
19. Where the Institute employs any person who has Service to the
institute deemed
entered into a contract with the Government by which he
to be a service to
has agreed to serve the Government for a specified period, the Government
any period of service to the Institute by that person shall be for the purposes
of certain
regarded as service to the Government for the purpose of
contracts.
discharging the obligations of such contract.
20. (1) At the request of the Board, any officer in the Appointment of
public service serving in the Ministry of the Minister may, public officers
with the consent of the Secretary to the Ministry of the to the staff of
the Institute.
Minister given with the concurrence of the Chairman of the
Public Service Commission and of that officer, be temporarily
appointed to the staff of the Institute for such period as may
be determined by the Board, or with like consent, be
permanently appointed to such staff.
12 National Institute of Labour Studies
Act, No. 12 of 2010
(2) Where any officer in the public service is temporarily
appointed to the staff of the Institute, the provisions of
subsection (2) of section 14 of the National Transport
Commission Act, No. 37 of 1991, shall mutatis mutandis,
apply to and in relation to him.
(3) Where any officer in the public service is permanently
appointed to the staff of the Institute, the provisions of
subsection (3) of section 14 of the National Transport
Commission Act, No. 37 of 1991, shall mutatis mutandis,
apply to and in relation to him.
FINANCE
Fund of the 21. (1) The Institute shall have its own fund.
Institute.
(2) There shall be credited to the fund of the Institute—
(a) all such sums of money as may be voted from time
to time by Parliament for the use of the Institute;
(b) all such sums of money as may be received by the
Institute in the exercise, performance and discharge
of its powers, duties and functions; and
(c) all such sums of money as may be received by the
Institute by way of loans, donations, gifts or grants
from any source whatsoever, whether in or outside
Sri Lanka.
(3) There shall be paid out of the fund of the Institute—
(a) all such sums of money as are required to defray
any expenditure incurred by the Institute in the
exercise, performance and discharge of its powers,
duties and functions under this Act; and
(b) all such sums of money as are required to be paid
out of such fund, by or under this Act.
Financial year of 22. The financial year of the Institute shall be the
the Institute. calendar year.
National Institute of Labour Studies 13
Act, No. 12 of 2010
23. The provisions of Article 154 of the Constitution Audit of
relating to the audit of accounts of public corporations shall Accounts.
apply to and in relation to, the audit of the accounts of the
Institute.
GENERAL PROVISIONS
24. (1) The Minister may make regulations in respect of Regulations.
matters for which regulations are required or authorized by
this Act to be made or which are required by this Act to be
prescribed.
(2) Every regulation made under subsection (1) shall be
published in the Gazette and shall come into operation on
the date of such publication or on such date as may be
specified in such regulation.
(3) Every regulation made under subsection (1) shall as
soon as convenient after its publication in the Gazette be
brought before Parliament for approval and any regulation
which is not so approved shall be deemed to be rescinded
with effect from the date of such disapproval, but without
prejudice to anything previously done thereunder.
(4) Notification of the date on which any regulation is
deemed to be rescinded shall be published in the Gazette.
25. Any expenses incurred by any person brought Expenses
against him before any court in respect of any act which is incurred by any
person to be
done by him under this Act or on the direction of the Board
paid by the
shall, if the Court holds that the act was done in good faith, Institute.
be paid out of the fund of the Institute.
26. The Institute shall be deemed to be a Scheduled The Institute
Institution, within the meaning of the Bribery Act and the deemed to be a
scheduled
provisions of that Act shall be construed accordingly. Institution
within the
meaning of the
Bribery Act.
14 National Institute of Labour Studies
Act, No. 12 of 2010
Officers and 27. All members, officers and servants of the Institute
servants of the shall be deemed to be public servants within the meaning,
Institute deemed
and for the purposes of the Penal Code.
to be public
servants.
Sinhala text to 28. In the event of any inconsistency between the
prevail in case Sinhala and Tamil texts of this Act, the Sinhala text shall
of inconsistency.
prevail.
Interpretation. 29. In this Act, unless the context otherwise requires—
“Labour Studies” shall include the subjects of
industrial relations, national or international
labour standards, laws relating to labour, trade
unions, employer-employee relations,
employer-employee representative or
organizations, worker education, human
resource management and development
administration, business management,
productivity, manufacturing, trade marketing,
social development and any study, project,
programme, research, consultancy, survey,
seminar, workshop, conference, training course
or similar work related to labour economics or
any other subject relevant thereto as shall be
prescribed by the Minister.

National Institute of Labour Studies 15
Act, No. 12 of 2010
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