Termination of Employment Procedures

Governing Laws

Two main statutes govern termination in Sri Lanka:

  • Termination of Employment of Workmen (Special Provisions) Act No. 45 of 1971 (TEWA): This act outlines specific requirements for terminating employment, particularly regarding retrenchment (large-scale layoffs).
  • Industrial Disputes Act No. 43 of 1950: This act provides a broader framework for resolving employment disputes, including those arising from termination.

General Procedures

  • Written Notice: Employers must provide written notice to the employee clearly stating the reason for termination.
  • Notice Period: Sri Lankan labor law doesn't mandate a fixed notice period for individual terminations. However, the notice period can vary depending on:
    • Reason for Termination: The reason for termination may influence the required notice period.
    • Employment Contract: The terms of the employee's contract might specify a notice period.
  • Prior Approval: Under the TEWA, employers generally need prior approval from the Commissioner of Labour or the employee's written consent before termination. The Commissioner assesses the legitimacy of the reason for termination before granting approval.

Exceptions and Considerations

  • Termination by Mutual Consent: If the termination happens due to employee resignation, employer approval isn't required.
  • Disciplinary Action: If termination results from disciplinary action, the employer must notify the employee in writing of the reasons within two days of termination.
  • Closure of Business: When termination occurs due to business closure, the TEWA provides specific guidelines for compensation and benefits payable to the employee.

Additional Points

It's advisable to consult the specific terms of the employment contract for any additional clauses related to termination. Sri Lankan labor law can be complex. If you're unsure about the legality of a termination, seeking legal advice is recommended.

For further details, you can explore resources from the Sri Lankan Ministry of Labour: Sri Lanka Ministry of Labour website.