Budgetary Relief Allowance of Workers Act

Arrangement of Sections

1. Short title.

2. Competent Authority.

3. Payment of Budgetary Relief Allowance.

4. Special provisions regarding continuation of employment.

5. Duty of the employer to maintain a register.

6. Powers of competent authority.

7. Offences and penalties.

8. Liability of the directors and certain officers for offences committed by a body of persons.

9. Payment due under this Act to constitute part of a worker’s wages or salary.

10. Failure to pay sums due to workers.

11. Action against default of payment of the allowance.

12. Conditions necessary for the prosecution for offences under this Act.

13. Retrospective effect.

14. Interpretation.

15. Sinhala text to prevail in case of inconsistency.

4 of 2016.

AN ACT to provide for the payment of a budgetary relief allowance by employers to workers and for matters connected therewith or incidental thereto

[Date of Commencement: 24th March, 2016; s. 3: 1st May 2015.]

1. Short title.

This Act may be cited as the Budgetary Relief Allowance of Workers Act.

2. Competent Authority.

(1) The Commissioner-General shall be the competent authority for the purposes of this Act.

(2) The competent authority may delegate to any officer of the Department of Labour any power, function or duty conferred or imposed on, or assigned to, such authority by this Act.

3. Payment of Budgetary Relief Allowance.

(1) With effect from May 1, 2015, every employer in any industry or service shall, in respect of each month pay to every worker employed by him, a Budgetary Relief Allowance (hereinafter referred to as “the allowance”), calculated on the following basis—

(a) in the case of a worker whose monthly wages or salary for the month of May, 2015 (hereinafter referred to as the “relevant month”) is rupees forty thousand or below, the allowance payable shall be one thousand five hundred rupees:

Provided however, that in the case of a worker who for any reason other than the failure of the employer to provide work for such worker, does not work for the required number of days in a month as prescribed by any written law or contract of employment, the allowance payable to such worker for such month shall be in proportion to the number of days he has worked during such month;

(b) in the case of a worker who is paid a daily rate not exceeding rupees one thousand six hundred for the relevant month, the allowance payable shall be sixty rupees per day for each day he has worked during the month;

(c) in the case of a worker who is employed in the relevant month on a piece-rate basis, the allowance payable in respect of a month shall be not less than fifteen per centum of the total wages or salary payable to such worker for that month:

Provided however, the total allowance payable for a month under paragraph (a), (b) or (c) shall not exceed one thousand five hundred rupees;

(d) in the case of a worker whose monthly wages or salary for the relevant month exceeds rupees forty thousand and does not exceed rupees forty one thousand five hundred, the allowance payable shall be the difference between rupees forty one thousand five hundred and the amount of wages or salary for the relevant month;

(e) in the case of a worker who is paid a daily rate of a sum exceeding rupees one thousand six hundred and not exceeding rupees one thousand six hundred sixty for the relevant month, the daily allowance payable shall be one twenty fifth of the difference between rupees forty one thousand five hundred and the total wages for the relevant month.

(2) Notwithstanding the provisions of subsection (1), every employer in any industry or service shall, in respect of each month commencing from January 1, 2016 pay to every worker referred to in subsection (1) employed by him, an allowance calculated on the following basis—

(a) in the case of a worker whose monthly wages or salary for the relevant month is rupees forty thousand or below, the allowance payable shall be one thousand rupees:

Provided however, that in the case of a worker who for any reason other than the failure of the employer to provide work for such worker, does not work for the required number of days in a month as prescribed by any written law or contract of employment, the allowance payable to such worker for such month shall be in proportion to the number of days he has worked during such month;

(b) in the case of a worker who is paid a daily rate not exceeding rupees one thousand six hundred for the relevant month, the allowance payable shall be a sum of forty rupees per day for each day he has worked during the month;

(c) in the case of a worker who is employed in the relevant month on a piece-rate basis, the allowance payable in respect of a month shall be not less than ten per centum of the total wages or salary payable to such worker for that month:

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