Easily manage employment in Sri Lanka

Employees can either be dismissed summarily - if just cause if provided - otherwise, termination must be in accordance with the terms stipulated in the employment contract. A decision to let an employee go must be approved by the Labour Commissioner.

There is no minimum notice period under Sri Lankan law but it’s common to notify employees at least six months before termination.

Employees are only entitled to severance payment proportional to their tenure working with an employer — if they’re dismissed unfairly.

• 2.5 months pay per year for years 1 - 5, capped at 12.5 months pay
• 2 months pay per year for years 6 - 14, capped at 30.5 months pay
• 1.5 months pay per year for years 15 - 19, capped at 38 months pay
• 1 month pay per year for years 20 - 24, capped at 40 months pay
• Half a month’s pay per year for years 25 - 34, capped at 48 months pay

Probation periods range from six months for general staff, to 12 months for technical or supervisory staff.