Questions and Answers

Friend in Need Society and Charity Commissioners Department

Question: I would be thankful if you publish in the ‘Ceylon Daily News’ the procedure to become a contributor of the above institutions.

L. J. S. Fernando, Colombo 5.

Answer: You can contribute to either or both institutions. One is the Colombo Friend in Need Society at 171, Sir James Peiris Mawatha, Colombo 2. Their telephone Nos. 2544992, 2421651 and e-mail [email protected]. The other is the Charity Commissioner’s Department which is under the Colombo Municipality. Currently there is no commissioner but you can contact the Asst. Charity Commissioner Mr. Jayasinghe on Tel. 2696123 or 0777313237.

The Colombo Friend in Need Society you can become an annual member with a fee of Rs. 350 or a life member with a fee of Rs. 3,500. They are involved in providing artificial limbs and also run a transit home for those receiving artificial limbs for a two week period. You can contribute towards this.

The CMC Charity Commissioner’s office has charity projects such as elders home, an orphanage, about 4 creches and also provide relief to about 12,000 people with a monthly family allowance ranging from Rs. 400 to Rs. 1,000. They also have a vocational training program for the poor unemployed youth. You can contact the Asst. Charity Commissioner and contribute towards any of the projects.

Maternity leave for contract employee

Question: I am working in a construction firm and all the employees are on contract basis for a period of one year. If the contract period is extended for another year, the employees are entitled for 14 days annual leave.

My problem is I’m on maternity leave from November 15, 2009 and entitled for 84 working days maternity leave. My contract period is only up to December 31, 2009.

Please explain whether I’m entitled for January 2010 salary or not.

Anula Silva, Demanhandiya

Answer: Since your contract period ends on December 31, 2009 and that you are on maternity leave from November 15, 2009, that is before the end of your contract, you are entitled to the three months maternity leave. When we state that you are entitled to three months of working days as maternity leave, it assumes that your contract will be renewed at the end of the one year period. However the extension of the contract is entirely a matter for your employer to decide. In case your employer decides not to renew your contract your employer has to pay you for the 84 days.

Since the employer would have to pay you from November 15 up to December 31, 2009, they have to also pay you for the balance period making up the 84 working days. This is a statutory requirement.

Renewal of Identity Card

Question: My Identity Card bearing No. 483370849V became unreadable due to the ink fading away. I met the Grama Niladhari of Ihalabiyanwila North who gave me a form to fill up, and she promised me to send the form to the relevant authorities with my original birth certificate and original disfigured identity card.

It is nearly four months now and I am still awaiting for a new identity card for me.

I would be thankful to you if you could kindly help me to solve my matter.

H. D. G. Wijayaratna, Kadawatha.

Answer: Did you contact the Grama Niladari and check whether she has forwarded your application to the Department of Registration of Persons through the Divisional Secretary’s office. If this has been done most probably your application is held up in the Department of Registration of Persons. We are aware that some times if not often it takes as much as 10 months to receive the National Identity Card (NIC) due to the overload in this office.

Recently the Department put all application on hold as priority was given to students sitting the GCE ‘O’ Level. When you handed over your application to the Grama Niladari, she would have handed back to you a slip which was a part of the application form bearing the reference number of your application. We require that number in order to follow up on your NIC.

This acknowledgement slip bearing your reference number is very necessary for follow up of your application.

Request for payment of unpaid EPF balance

Question: I was employed in a garment factory up to September, 2008 and on the request made in the formal way EPF dues up to March 2007 was paid to me on 14.12.2008. As there was a void of 18 months, I made inquiries from the relevant authority on 19.01.2009. Thereafter, I made a fresh application to the authority concerned on 27.03.2009 on the above subject with the following information for easy reference.

My EPF Membership No. 16930/C/41 previous payment file No. 2008337.

Since then all the inquiries I made over the phone were without avail. As I intend to start a small business in the near future, please be kind intervene in this matter and help me to get the balance paid at the earliest possibility.

J. Pathmasiri de Silva, Kalutara.

Answer: Sorry we could not answer your question earlier due to the long queue of questions. It also takes time to get through to then Government Departments.

We managed to contact the EPF Section of the Central Bank and according to them your balance payment of an amount more than Rs. 31,200 perhaps including interest as well has been transferred to your Bank account on November 18, 2009. Your question to us was dated November 7 and received on November 9, 2009.

We trust you have now received this money. If not please let us know. Trust we have been of service to you.

Long delay in payment of EPF arrears

Question: I have to thank you immensely for taking up my problem with the Central Bank which was published in the daily newspaper twice on 9.7.2009 and 27.8.2009.

In this regard on your advice during the last four months almost every fortnight I contacted Mr. Wickramaratne of the Central Bank on his telephone No. 2477224, that he give lame excuse of the delay. Very often he said that he had referred the papers to the audit for checking and would pay after certification of the audits. However, several months passed and they have failed to pay me the dues.

So that being the situation I once again, hesitatingly seek your kind assistance in this regard.

J. H. G. Gunawardena, Etul Kotte.

Answer: We checked up with the EPF Section of the Central Bank and there seems to be some confusion. They say that a part payment of Rs. 38,751.64 was paid on 20.09.2007 under the reference number of T4274. They state that there is no balance on the Reference No. T4272.

Could there be another reference number. We are not able to trace the papers relating to your question in August 2008 as we do not keep these papers for so long. Why don’t you take the receipts of payment by Walker Sons & Co. Ltd., your employer and call over at the EPF Central Bank office with a set of copies. You may meet Mr. Wickremeratne and resolve your problem.

EPF and gratuity

Question: I wish to refer you to the answer given by you to H. D. T. Anthony of Kelaniya to his question on ‘Entitlement of EPF and gratuity’ appearing in the ‘Daily News’ of 17.12.2009.

In regard to the payment of gratuity to retired Government pensioners. I wish to refer you to ‘Section 7 of the Payment of Gratuity Act No. 12 of 1983’ which states as follows:

The provision of section 5 shall not apply to or in relation to a workman:

(a) employed as a domestic servant or personal chauffeur in a personal household.

(b) entitled to a pension under non contributory pension scheme.

Therefore, I feel that your answer to the 2nd part of his question is misleading and it should be corrected immediately before he takes wrong step.

Nandana S. Pushpakumara, Gonawala.

Answer: We are pleased to note that many readers and interested in the OPA At Your Service Page and also pay their attention to every question and the answers given. Whilst trying to assist the public we do not claim that our answers are always correct or accurate. We do look forward to comments on the answers given by us and expeditiously answer such comments.

We rechecked with Department of Labour and confirm that retired Government pensioners if they are re-employed in the private sector will be entitled to EPF, ETF and gratuity (gratuity entitlement being subject to a minimum service of 5 years and employment of more than 15 employees in that organisation).

However, there is a legal difference in the terms of employment. If in ‘Contract of Employment’ these such employers are entitled to EPF, ETF and gratuity as mentioned above. In rare cases of ‘Contract for Employment’ then such employees are not entitled to EPF, ETF and gratuity.

The definition of latter is quite complicated and can be explained only by the Department of Labour.

Entitlement of gratuity for a retired pensioner re-employed

Question: I am a retired Government servant drawing a monthly pension and employed as an Internal Auditor of a foreign funded project in line with instructions of Management Services Circular No. 10 of 26.12.2000 which is repealed by Management Services Circular No. 33 of 05.04.2007. Having completed five years service in the project, my contractual service will expire on 3.11.2010.

Payment of Gratuity Act No. 12 of 1983, Section 7 (b) states that: The provision of Section 5 shall not apply to or in relation to a workman entitled to a pension under any non contributory pension scheme.

So, there is an ambiguity on entitlement of gratuity for project employees who draw government pensions.

If any workman is prevented from receiving gratuity from another employment, for the simple reason that he is drawing a pension as a retired govt servant, seems not fair.

Since, we intend doing right thing, it would be much appreciated, if you could advise us on payment of gratuity to workmen who are retired govt servants drawing pensions and serving in the project, provided that all other requirements in this regard are met.

P. Nilaweera, Gonawala, WP.

Answer: If you are a government pensioner, now working on a project that has no connection with the Department where you worked as a government servant, then you are entitled to EPF, ETF and gratuity.

This is on the basis that your employment on the project does not entitle to another pension on either a contributory or non contributory nature.

The fact that you have served the government and entitled yourself to a pension, does not exempt your new employer from paying your EPF, ETF and gratuity provided you are entitled to gratuity by minimum 5 years of service and there being minimum 15 employers in that organisation.

If in any doubt please contact the Labour Department Office. Even if there are not less than 15 employees but if you have completed five continuous years of service, the Labour Department will consider the gratuity payment by your employer.

Resident Non National Foreign Currency Account

Question: I am a foreigner resident in Sri Lanka working for a local company for over six years. I maintain a tax file and pay tax on my local earnings.

I also maintain a Resident Non National Foreign Currency Account to which certain receipts from abroad are credited representing income earned outside Sri Lanka. I would like to know whether the income credited to this account is liable to tax in Sri Lanka. Please advise early.

Alec Robertson, Colombo 5.

Answer: To the best of our information remittances to and amounts lying in any of the foreign currency accounts whether it is resident or non resident and whether it is a local or foreigner there is no tax at present.

Therefore, you as a non national will not be taxed on you income earned outside and remitted to your foreign currency account. Similarly there will be no withholding tax on the interest received in such an account.

If you want any further clarification you may contact one of the officers in the Inland Revenue Department on Tel. 3009262.

ETF claim

Question: I worked for a company for about 10 years and resigned. Later I joined another firm where I worked for a three years and have retired now.

I had already claimed the ETF from the first company. Since I had already obtained my first claim, am I entitled to apply for ETF without completing five years of service?

I am over 60 years now. Should I wait till five years is passed to claim the second ETF.

M. Mahir, Wattala

Answer: Usually one has to wait for five years to claim ETF after having claimed once. However, if you have passed the age of 60, that is after your 60th birthday, you can claim again even though you have not completed five years since your previous claim. This exception is because your have now retired and also passed the age of 60.

Non payment of EPF

Question: First of all I take this opportunity to thank you for the valuable service rendered through ‘Daily News’ paper under the Question and Answer column. As your advice in the ‘Daily News’ of September 17, 2009 the EPF matter taken to the Commissioner of Labour General’s consideration. After his consideration immediate action was taken by the Regional Commissioner and the due settled by the employer on October 21, 2009 at the Labour Department, Hatton.

However the non payment for my service at the Puttalam district estate inquiry is going on at the moment at the Labour Department, Puttalam. The Commissioner informed me that he could make available only the non payable due from 1982.

Kindly let me know whether I could claim the interest for the non payable due from 1982 to up to date.

Once again I expect your invaluable advice in this regard.

S. Joseph, Nuwara Eliya.

Answer: We are glad to note that your EPF matter has now been resolved by the Regional Commissioner of Labour, Hatton.

Similarly, we trust that the Regional Commissioner of Labour, Puttalam too will solve your matter soon. However, our understanding is that the Commissioner can levy a penalty on your employer which penalty is for the Government. Unfortunately, the EPF Department cannot pay you interest on contributions not received by them. Therefore, you will not get any interest unless the Commissioner can pursue your employer to pay you some compensation in lieu of the loss of interest.

Your employer may not pay both, the penalty and compensation for loss of interest. If by any chance the employer is not asked to pay the penalty you my request the Commissioner to negotiate interest compensation for you. We are happy to have served you as yours was a deserving case.