2. The following new sections are hereby inserted immediately after section 7 of the Payment of Gratuity Act, No. 1? of 1983 (hereinafter referred to as the " principal enactment") and shall have effect as sections 7A. 7B and 7c of the principal enactment:"
| 7A,
| | (1) Where by an Order made under subjection (2) of section 2 of the Conversion of Public Corporations or Government Owned Business Undertakings into Public Companies Act, No. 23 of 1987 declaring that a company is incorporated to take over the functions of a public corporation or take over and carry on a Government Owned Business Undertaking, any workmen of that corporation or undertaking who becomes a workman of that company and who becomes, upon the making of that Order, entitled to the payment of any gratuity under this Act, shall, notwithstanding anything in the preceding provisions of this Act, be paid such gratuity either in cash or in the form of bonds issued by the Central Bank of Sri Lanka. | | |
| | (2) Every bond referred to in subsection (1) shall carry Interest at the current rate of interest payable on medium term government bonds issued by the Central Bank of Sri Lanka and shall be encashable"
| | | (a) on the expiration of a period of ten years from the date of the Order , tinder subsection (2) of section 2 of the Conversion of Public Corporations or Government Owned Business Undertakings into Public Companies Act, No. 23 of 1987, in respect of that company : or |
| (b) on the termination of the .services (whether by retirement, death, operation, of law or otherwise) of such workmen by such company; |
| (c) on the date on which shares in such company are first offered for sale to the public, |
|
| | (3) Any bond referred to in subsection (1) may be surrendered before maturity by the holder for the purchase of any shares in the company offered for sale. | | |
| | (4) Every such bond shall be issued in such manner, and subject to such terms as may be prescribed. | | |
|
|
| 7B. The Minister may make rules in respect of any matter required by this Act to be prescribed. |
|
| 7C. In determining for the purposes of section 5(1) of this Art, whether a workman in any company which takes over the functions of a public corporation or takes over and carries on any Government Owned Business Undertaking has completed five years of service in such company, his period of service with the public corporation or the Government Owned Business Undertaking shall be included.". |
|
|
Sri Lanka Consolidated Acts