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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.

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

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.

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.