Employment
Termination requires the Commissioner's or the worker's consent
The Termination of Employment of Workmen Act requires an employer of 15 or more workers to obtain either the worker's written consent or the Commissioner General of Labour's prior approval before terminating on non-disciplinary grounds. This makes economic dismissal an administrative process rather than a notice-and-pay exercise, and it is the single most distinctive feature of Sri Lankan employment law.
Governing law
- Termination of Employment of Workmen (Special Provisions) Act, No. 45 of 1971 — Commissioner approval for termination.
- Industrial Disputes Act, No. 43 of 1950 — Labour Tribunals and arbitration.
In practice
TEWA approval is required for non-disciplinary termination in covered workplaces. The Shop and Office Employees Act sets hours, holidays and overtime for commercial staff. EPF and ETF contributions are compulsory and separately administered. Labour Tribunals hear unjust termination claims and may order reinstatement or compensation. Disciplinary dismissal for cause falls outside TEWA, so the characterisation of a dismissal is where these disputes are actually fought. Labour Tribunal jurisdiction is equitable and not limited to strict contractual rights.