How does termination of employment work in Sri Lanka?
Notice, disciplinary dismissal and the Termination of Employment Act explained.
Last reviewed: 22 October 2026
The Termination of Employment of Workmen Act
The Termination of Employment of Workmen (Special Provisions) Act No. 45 of 1971 (TEWA) applies to employers with 15 or more workmen on average in the preceding six months. Non-disciplinary termination, such as retrenchment, needs consent or the Commissioner's approval.
Disciplinary dismissal
An employer may dismiss for proven misconduct. The employee should be told the charges in writing, given a chance to respond, and usually receive the reasons for dismissal in writing within two days if requested.
Notice periods
Notice periods are usually set by the employment contract. Where the contract is silent, reasonable notice is expected.
Compensation
Where termination is approved under TEWA, compensation is calculated under a formula published by the Commissioner General of Labour.
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Contact usThis information is for general guidance only and does not constitute legal advice. Laws and rates change; please consult a qualified Attorney-at-Law for your specific situation.