Contracts and Dismissals
Written Employment Particulars
The Shop and Office Employees Act, 1954 requires the employer to furnish the particulars of a worker's employment on the commencement of his/her work.
The written employment contract must include the following particulars: the name of the employee and designation and nature of the appointment; the date on which the appointment takes effect; the grade to which the person is appointed; basic remuneration and the scale of remuneration; whether the remuneration is paid weekly, fortnightly or monthly; cost of living allowance, if any, and other allowances if any; the period of probation or trial, if any, and the conditions governing such period of probation or trial along with the circumstances under which the appointment may be terminated during such probation or trial; conditions governing the employment along with the circumstances and conditions under which the employment can be terminated; normal hours of work; number of weekly holidays, and annual holidays; overtime rate payable; provision of medical aid, if any, by the employer; the provision of and the conditions governing any provident fund, pension scheme or gratuity scheme applicable to the employment; and prospects of promotion.
The contract is written in a language that is completely understandable by the worker and it is duly signed by the employer. The employer must retain a copy of this contract. In absence of written employment contract, the terms and conditions of employment would need to be ascertained from the oral agreement; the common law; any applicable statutory provisions; customs or usage and practices in the workplace; and any Collective Agreement or decisions of Labour Tribunals.
There is no provision on internship contracts in the labour legislation. This entails, amongst other, that for an internship payment of an allowance during the period is optional, not mandatory.
Source: §17 & Regulation 15 of the Shop and Office Employees (Regulation of Employment and Remuneration) Act, 1954
Fixed Term Contracts
Sri Lankan labour Law allows hiring fixed term contract workers for tasks of permanent nature. (EWI)There is no provision on fixed term contracts in the labour laws. The Law does talk about temporary employees and specifies that these are employed "temporarily by an employer to perform work of a temporary nature on not more than one hundred and eighty days in any year in the aggregate.
Source: §54 of the Employees’ Councils Act, No.32 Of 1979
Probation Period
There is no clear provision in labour laws on the duration of probation period in Sri Lanka. Generally, probation period is six months. The Shop and Office Employees Act requires the employer to clearly mention the period of probation, conditions governing such probation and circumstances under which the employment contract may be terminated during probation.
Employment of Trainees (Private sector) Act No. 8 of 1978 provides that employers and workers may enter a contract of training for up to maximum one year. At the end of the training period, unless for disciplinary reasons or for failure to attain satisfactory competencies in the vocation chosen, the Employer should provide employment to the trainee or in the alternative find him a suitable employment.
Source: Regulation 15(g) of the Shop and Office Employees (Regulation of Employment and Remuneration) Act, 1954; Employment of Trainees (Private sector) Act No. 8 of 1978
Regulations on Employment Security
- 1954 සාප්පු හා කාර්යාල සේවක (රැකියා හා පාරිශ්රමික රෙගුලාසි) පනත / கடைகள் மற்றும் அலுவலக பணியாளர்கள் சட்டம் 1954 (வேலைவாய்ப்பு மற்றும் ஊதியம் பற்றிய ஒழுங்குவிதிகள்) / Shop and Office Employees (Regulation of Employment and Remuneration) Act, 1954
