COUNTRY

Employment contracts in Sri Lanka can be written, oral, or implied. Written employment contracts are signed by both the employer and the employee in a language well understood by the employee. Employees that work in an office or shop must be provided the following information in writing:

• name and designation of the employee,

• type of appointment,

• date of appointment,

• payment terms, wages and bonuses,

• employment conditions,

• working hours and leave, and

• termination terms.

Employment contracts in Sri Lanka can be for a fixed or indefinite term.

The standard work week in Sri Lanka is capped at 45 hours with eight hours a day, Monday through Friday. Overtime is capped at 12 hours a week and is paid at 150% of the basic rate. Male employees between the ages of 14 and 18 generally cannot work at night, which is between the hours of 6 p.m. and 6 a.m. However, male employees between the ages of 16 and 18 can work between the hours of 6 a.m. and 10 p.m. if working in a hotel, restaurant, or place of entertainment. Female employees also are prohibited from working at night, with a few exceptions. Female employees who are at least 18 years old may work in a residential hotel or restaurant between 6 p.m. and 10 p.m., or in an office between 6 p.m. and 8 p.m.

Employees receive up to seven days a year of sick leave in Sri Lanka. In the first year of employment, sick leave is accrued at a rate of one day every two months.

Female employees receive 12 weeks of paid maternity leave in Sri Lanka. Up to two weeks can be taken before the expected due date and the remaining 10 weeks taken after the birth. If the pregnancy does not result in a live birth, the employee is entitled to six weeks of leave, with two to be taken before the expected due date and four weeks taken after. Maternity benefits for the period leading up to and including the date of confinement must be paid by the employer within 48 hours of the employee providing proof of the pregnancy. Payment for the period after the birth are paid in two installments in the second and fourth week of leave.

Employers failing to pay the minimum wage in Sri Lanka can face sanctions from the government. Overtime pay is paid at a percentage of the employee’s normal wages. There is no requirement in Sri Lanka for employers to provide bonuses.

Employees in Sri Lanka receive 14 days of paid leave annually after one year of service. Employees with less than one year of service are entitled to between four and 10 days of leave as follows:

• 10 days if employment starts on or after the first day of April but before the first day of July,

• seven days if employment starts on or after the first day of July but before the first day of October, or

• four days if employment starts on or after the first day of October but before the end of December.

Employees must take a minimum of seven consecutive days of annual leave at once and within 12 months of accrual. The specific dates on which leave may be taken is a matter agreed upon between the employer and employee.

In Sri Lanka, the public holidays are:

• Duruthu Full Moon Poya Day

• Tamil Thai Pongal Day

• Sri Lanka National Day

• Navam Full Moon Poya Day

• Mahasivarathri Day

• Madin Full Moon Poya Day

• Good Friday

• Bak Full Moon Poya Day

• Sinhala & Tamil New Year's Eve

• Sinhala & Tamil New Year's Day

• May Day (Labor Day)

• Id-Ul-Fitr (Ramazan Festival Day)

• Vesak Full Moon Poya Day

• Day following Vesak Full Moon Poya Day

• Poson Full Moon Poya Day

• Id-Ul-Alha (Hadji Festival Day)

• Esala Full Moon Poya Day

• Nikini Full Moon Poya Day

• Binara Full Moon Poya Day

• Milad-Un-Nabi (Holy Prophet’s Birthday)

• Vap Full Moon Poya Day

• Deepavali

• Ill Full Moon Poya Day

• Unduvap Full Moon Poya Day

• Christmas Day

Sri Lanka has a universal public healthcare system . Some private employers offer additional health insurance plans.

Employment contracts may be terminated in Sri Lanka at the end of the contract term (if for a fixed term), by the employer or by the employee. Employers can dismiss an employee for misconduct, disciplinary reasons or poor performance. Employers must notify employees in writing of the reason for dismissal no later than two days after the termination. Justifiable grounds for terminating an employee include:

• gross negligence,

• abusive or insubordinate behavior,

• fraud, theft or dishonesty,

• intoxication or other impairment, and

• abandonment or frequent absenteeism.

Termination of an employee for any reason other than for disciplinary reasons, including redundancy, generally must be approved by the Labor Commissioner or consented to by the employee.