Human Resource Management and Labour Relations
This domain tests whether you can staff and manage a practice lawfully and fairly, and whether you understand the Sri Lankan labour relations framework that constrains disciplinary and termination decisions.
Core rules and concepts
- Job analysis produces a job description (duties, reporting, conditions) and a person specification (qualifications, experience, competencies). Recruitment attracts candidates; selection chooses between them.
- Induction and training needs analysis connect capability gaps to business needs. Appraisal should be based on evidence agreed in advance, not recollection.
- Discipline requires natural justice: the employee must know the allegation, see the evidence, be heard, be allowed representation, and face an unbiased decision-maker imposing a proportionate penalty. Progressive warnings precede dismissal except for gross misconduct.
- In Sri Lanka, Employees' Provident Fund contributions are 8 per cent from the employee and 12 per cent from the employer; the Employees' Trust Fund is 3 per cent from the employer. Wages Boards set minimum terms for many trades, and the Industrial Disputes Act provides conciliation by the Commissioner of Labour and referral to arbitration.
- Collective agreements, trade union membership and victimisation: union activity is protected, and dismissing a workman for union involvement invites an industrial dispute.
Worked example
A monthly-paid employee earning LKR 60,000 is repeatedly late. Correct handling: document dates, raise the matter privately, allow a reply, issue a written warning, set a review period. Do not deduct a day's pay without contractual authority. Statutory computation on the LKR 60,000: employee EPF 8 per cent = LKR 4,800; employer EPF 12 per cent = LKR 7,200; employer ETF 3 per cent = LKR 1,800. If dismissal follows later misconduct, contractual notice and statutory procedure must both be satisfied, with a domestic inquiry record kept.
Traps that cost marks
Treating a domestic inquiry as optional; punishing without a hearing; mixing up EPF and ETF rates or charging ETF to the employee; assuming probationers have no rights; and using transfer or demotion as a disguised penalty.