Sri Lanka

Sri Lanka

Capital: Sri Jayawardenapura
Currency: - LKR
LKR

Overview of Sri Lankan Labour Laws and Employment Policies

Employment Law Overview

  • Key Legislations:
    • Shop and Office Employees Act (Act No. 19 of 1954)
    • Factories Ordinance (1950)
    • Wages Boards Ordinance (1941)
  • Legal Characteristics:
    • Aim to protect employees' rights and welfare
    • Regulate working hours, leave, severance pay, and social security

Employment Contract Requirements

  • Contract Types:
    • Fixed-term contracts
    • Indefinite-term contracts
  • Contractual Provisions:
    • Must include details of job description, remuneration, working hours, etc.
  • Language and Currency:
    • Contracts must be in a language familiar to the employee
    • Currency unit is Sri Lankan Rupee (LKR)

Working Hours Regulations

  • Standard Working Hours:
    • 45 hours per week, Monday to Friday, 8 hours per day
  • Rest Days and Breaks:
    • At least one rest day per week
    • One hour meal break must be provided if working more than 8 hours per day

Leave Policies

  • Annual Leave:
    • 14 days of paid annual leave per year
  • Public Holidays:
    • 20 national public holidays
  • Special Leave:
    • Sick Leave: Up to 7 days of paid sick leave per year
    • Maternity Leave: 84 days of paid maternity leave
    • Paternity Leave: No statutory paternity leave

Employee Severance and Termination

  • Notice Period:
    • Less than 1 year of service: Nil
    • More than 1 year of service: 30 days
  • Severance Pay:
    • 1-5 years of service: 2.5 months' salary for each year of service
    • 6-14 years of service: 2 months' salary for each year of service
    • 15-19 years of service: 1.5 months' salary for each year of service
    • 20-24 years of service: 1 month's salary for each year of service
    • 25-34 years of service: 0.5 months' salary for each year of service
  • Protection Against Unfair Dismissal:
    • Employer must obtain approval from the Commissioner of Labour or employee's consent to dismiss
    • Employer must provide written reasons for dismissal

Taxation Laws

  • Personal Income Tax:

    • Salary Range (LKR)Tax Rate
      0 - 1000000%
      100001 - 1416676%
      141667 - 18333312%
      183333 - 22500018%
      225000 - 26666724%
      266667 - 30833330%
      308333 and above36%
  • Social Security Contributions:

    • Employee: 12%
    • Employer: 15%

Health Insurance

  • Insurance Policy:
    • Employees are required to participate in the universal healthcare system
  • Coverage:
    • Basic healthcare services

Compensation and Benefits

  • Minimum Wage:
    • LKR 12,500 per month
  • Salary Structure:
    • Basic salary, allowances, bonuses, etc.

Work Permits and Visas

  • Permit Requirement:
    • Foreign employees require a work permit
  • Application Process:
    • Employer applies to the Department of Labour
    • Applicant provides necessary documentation

Confidentiality and Non-Compete Clauses

  • Enforceability:
    • Confidentiality and non-compete clauses are enforceable in Sri Lanka
  • Common Provisions:
    • Restricting employees from working for competitors after leaving employment
    • Requiring employees to keep confidential information secret

Training and Development

  • Legal Requirements:
    • Employers must provide safety training and skill enhancement training
  • Government Support:
    • Government provides training grants and incentives

Workplace Diversity and Inclusion

  • Legal Requirements:
    • Prohibit discrimination based on race, religion, gender, etc.
  • Enforcement Measures:
    • Employers must have anti-discrimination policies and procedures in place

Remote Work Policies

  • Legal Framework:
    • No specific legal framework for remote work
  • Tax and Insurance Implications:
    • Remote work may impact tax and social security contributions

Authoritative Website Addresses

1.Overview of Sri Lankan Labour Laws and Employment Policies
1.1Employment Law Overview
1.2Employment Contract Requirements
1.3Working Hours Regulations
1.4Leave Policies
1.5Employee Severance and Termination
1.6Taxation Laws
1.7Health Insurance
1.8Compensation and Benefits
1.9Work Permits and Visas
1.10Confidentiality and Non-Compete Clauses
1.11Training and Development
1.12Workplace Diversity and Inclusion
1.13Remote Work Policies
1.14Authoritative Website Addresses