Termination Process
In Sri Lanka, an employee can only be terminated by an employer in the following circumstances:
- With the prior written approval of the Commissioner of Labour.
- With the employee’s consent.
- Where there is justifiable cause for termination.
Termination with notice by the employer without justifiable cause is unenforceable and considered unjust termination.
If an employee has been employed for over a year, they are entitled to one month's notice. If they've been employed less than one year, they are not entitled to any notice.
Severance Pay
Employees who have completed five years of service are entitled to a gratuity at the following rate:
- Half a month’s wages for each completed year of service for monthly paid employees
- 14 days' salary for each year of completed service for other employees.
This amount is payable in all circumstances.
Redundancies are compensated according to service length:
- 2.5 months’ pay per year of service for 1 to 5 years.
- 2 months’ pay per year of service for 6 to 14 years.
- 1.5 months’ pay per year of service for 15 to 19 years.
- 0.5 months’ pay per year of service for 25 to 34 years.
