ID 72001 – Industrial Law

Assignment 1
Reg. No: SEU/IS/13/EG/011
Name: G S U Ahmadh

Q1. Advantages and disadvantages of having probation period of employees

Advantages:
1) Can be able to decide if the working relationship is good
One of the benefits of using a probation period is that it allows both the employer and employee
to decide if the working relationship is a good fit.
You can evaluate whether the new hire fits in with the company culture and has the necessary
skills. At the same time, your new hire gets a chance to see if he really likes the position and
company atmosphere.
2) Evaluation
The most significant and fundamental benefit of probation periods at work is the ability of an
employer to evaluate employee performance more closely and avoid retaining new hires who
can't meet the standards. You can schedule more frequent performance reviews during the
probation period and offer the new worker some additional training and attention. This can ensure
your new hire is ready to work productively and do quality work when the probation ends.
3) Termination
Another positive aspect associated with a probationary period is that the employer is capable to
terminate the employee without repercussion during the evaluation term.
4) Economic Pros
A probationary period has financial benefits: an employer need not make a significant financial
investment (benefits, for example) in an employee until the examination period ends. Giving new
hires a probationary period can also help your company save money. New hires might get paid
less, work fewer hours and not get their benefits until they successfully complete the period. If
your company follows this practice and your new hire doesn't work out, your company will have
saved some money in wages and benefits versus hiring them without probation.

Disadvantages:

1) Resignation
A probation employee can resign at will, leaving the employer with an unexpected vacancy.
2) Lower Performance:
 Since they may feel that their jobs are at stake, new hires can feel more stress and feel less valued
by the company. This can cause your new hires to have less confidence doing their work, resulting
in higher turnover, lower productivity and reduced work quality.
3) Creates legal risks in states where employment is at will
Employees might confuse passing the probation period as a promise of continual employment,
and they may try to take legal action against the company if they're dismissed.
4) Negatively affect your company's reputation
Prospective applicants may have less trust for a company that has a probation period since this
may indicate that the company is not confident with its hiring choices. The prospect of little job
security can also turn off qualified individuals from applying to the company, especially in a good
job market where applicants have many other choices.

Q2. What are the requirements for registration of trade union in Sri Lanka and what are
the consequences of non-registration?
Note: The following answer was written based on the Trade Unions Ordinance. (Ordinances Nos: 14 of
1935 and 3 of 1946. Acts Nos: 15 of 1948, 18 of 1958 and 24 of 1970)

Requirements for Registrations:

1) Every trade union established before the date of the commencement of this Ordinance shall
apply to be registered under this Ordinance within a period of three months reckoned from that
date.
2) Every trade union established after the commencement of this Ordinance shall apply to be
registered under this Ordinance within a period of three months reckoned from the date on
which it was so established.
3) Every application for registration of a trade union shall be made to the Registrar in the
prescribed form and shall be signed by at least seven members of the union, any of whom may
be officers thereof.

4) Uncancelled stamps to the value of one rupee shall be affixed to every such application which
shall be accompanied by a copy of the rules of the trade union and a statement of the following
particulars, namely—
a. The names, occupations and addresses of the members making the application;
b. The name of the trade union and the address of its head office;
c. The titles, names, ages, addresses and occupations of the officers of the trade union.
5) The following documents are needed for the registrations according to the Labour Department.
a. ‘B’ form completed according to instruction provided
b. The constitution prepared according to the ‘extract’ provided or duly completed ‘extract’
provided
c. A copy of the minutes of the inaugural meeting
d. A copy of the attendance sign-in sheet relevant to inaugural meeting
Consequence of not registering the Trade Union
According to the 25 of the Trade Union Ordinance, A trade union shall not enjoy any of the rights,
immunities or privileges of a registered trade union until it is registered.
The following are the rights of a registered union which are not allowed to be enjoyed by a not
registered union.
1) No action or other legal proceeding shall be maintainable in any civil court against any registered
trade union or any officer or member thereof in respect of any act done in contemplation or in
furtherance of a trade dispute.
So, this is not applicable for a not registered union and it is applicable to be held accountable in
a civil court in respect of any act.

2) Trade union is not liable for tortious act. An action against a trade union or against any members
or officers thereof on behalf of themselves and all other members of the trade union in respect of
any tortious act alleged to have been committed by or on behalf of the trade union in
contemplation or in furtherance of a trade dispute shall not be entertained by any court.
But for a not registered Union, they can be hold accountable for such actions.