▷ The Termination of Employment of Workmen (Special Provisions) Act, No. 45 of 1971 (TEWA) was amended by Act No. 29 of 2021, which introduced an exemption for termination of employment upon a workman attaining the minimum retirement age.

▶ Termination of Employment of Workmen (Special Provisions) Act, No. 45 of 1971 (TEWA)
→ Section 3(1)(a) TEWA: The Act does not apply to any workman employed in any establishment or industry employing less than fifteen workmen on any date during the period of twelve months immediately preceding the date of termination.
▶ Industrial Disputes Act, No. 43 of 1950 (IDA)
→ Section 31E(1)(a) IDA: The provisions of Part VA of the Act (relating to retrenchment) do not apply to an employer who employs less than fifteen workmen.

▶ Termination of Employment of Workmen (Special Provisions) Act, No. 45 of 1971 (TEWA)
The TEWA does not apply to:
▻ Any public officer (including persons employed by the Government, a local authority, or a public corporation;
▻ Any person employed by a cooperative society;
▻ Any workman who has been in continuous employment for a period of less than 180 days.
→ Section 3 TEWA indicates that: The provisions of this Act, other than this section, shall not apply in certain cases or circumstances.
(1) The provisions of this Act, other than this section, shall not apply:
(a) to an employer by whom less than fifteen workmen on an average have been employed during the period of six months preceding the month in which the employer seeks to terminate the employment of a workman; or
(b) to the termination of employment of any workman who has been employed by an employer a period of less than one hundred and eighty days (...).
(c) to the termination of employment of any workman where such termination was effected upon such workman attains the minimum retirement age as specified in the Minimum Retirement Age of Workers Act;
(d) to the Government in its capacity as an employer; or
(e) to the Government in its capacity as an employer of the Local Government Service; or
(f) to any local authority in its capacity as an employer; or
(g) to any co-operative society in its capacity as an employer; or
(h) to any Public Corporation in its capacity as an employer; or
(i) to the termination of employment of any workman who has been employed by an employer in contravention of the provisions of any law for the time being in force.
(2) The other provisions of this Act shall be read and construed subject to the provisions of subsection (1), and in particular, but without prejudice to the generality of the preceding provisions of this subsection, the terms “employer”, “employers”, “workman” and “workmen” occurring in such other provisions shall be so read and construed.
▶ Industrial Disputes Act, No. 43 of 1950 (IDA)
→ Section 31E(1)(b) and (c) IDA indicates that the retrenchment provisions in Part VA do not apply to:
(a) to any employer by whom less than fifteen workmen on an average have been employed for a working day in the month preceding the month in which notice of the intention to effect retrenchment in respect of any workman employed is given by the employer to that workman, or
(b) to any industry which is of a seasonal character or in which work is performed intermittently, or,
(c) to the retrenchment of any workman who has been employed in any industry for a period which is less than one year.
(2) Where the Minister is of the opinion that the application of this Part to an industry is likely to affect that industry in such a manner as to cause serious repercussions to that industry, the Minister may by Order published in the Gazette declare that this Part shall not apply, or shall apply subject to such conditions as may be specified in that Order, to that industry.
Any Order made by the Minister under this subsection shall be placed as soon as practicable before Parliament for approval. Any Order not so approved shall be deemed to have been of no effect.
(3) In the computation of the number of workmen for the purposes of subsection (1)(a), any workman who has been employed in the industry for a period of less than one year shall also be taken into account.
(4) If any question arises as to whether an industry is of a seasonal character or whether work in that industry is done only intermittently, such question shall be determined by the Commissioner and his decision on that question shall be final and conclusive.
▶ Payment of Gratuity Act (PGA), No. 12 of 1983 (as amended)
→ Section 7 PGA stipulates that: The provisions of section 5 [payement of gratuity upon termination on employment contracts] shall not apply to or in relation to a workman-
(a) employed as a domestic servant or as a personal chauffeur in a private household;
(b) entitled to a pension under any non-contributory pension scheme.

▷ Fixed-term contracts are not specifically regulated by statute. Their use and termination are governed by the terms of the individual employment contract and general principles of contract law.

▷ There is no statutory limitation on the valid reasons for which a fixed-term contract may be concluded.

▷ There is no statutory maximum cumulative duration for successive fixed-term contracts.

▷ No statutory provisions were found in the examined legislation in this respect.

▷ Employment contracts in Sri Lanka are governed by common law. There are no specific statutory provisions regulating fixed-term contracts or probationary periods.
▷ With regard to termination of employment, both the Industrial Disputes Act and the Termination of Employment of Workmen (Special Provisions) Act (TEWA) define “workman” broadly. Neither Act distinguishes between probationary workers and fixed-term workers. As a result, once a worker has completed the minimum period of service required under TEWA (generally 180 days), the protective provisions of TEWA apply regardless of whether the worker is employed on a probationary or fixed-term basis.

▷ No statutory provisions were found in the examined legislation in this respect.

▷ Workers' categories excluded: workers in establishments with fewer than 15 employees; workers with less than 180 days of service; public sector employees; employees of cooperative societies; probationary workers (first 180 days).
▶ Termination of Employment of Workmen (Special Provisions) Act, No. 45 of 1971 (TEWA)
→ Section 3(1)(a): The Act does not apply to an employer who employs fewer than 15 workmen on average during the six months preceding the termination.
→ Section 3(1)(b): The Act does not apply to the termination of employment of any workman who has been employed for a period of less than 180 days.
→ Under section 3 (c to g as of 2008 amendment): The Act applies only to the private sector. It does not cover public officers or persons employed by the Government, local authorities, public corporations, or cooperative societies.

▶ Termination of Employment of Workmen (Special Provisions) Act, No. 45 of 1971 (TEWA)
→ The Act does not expressly require the employer to inform the employee of the reasons for dismissal, except in cases of disciplinary dismissal (section 2(5) TEWA).
→ Under section 2(1) TEWA, any dismissal of a worker covered by TEWA, which is not a disciplinary dismissal, cannot take place without:
(a) the prior consent in writing of the worker; or
(b) the prior written approval of the Commissioner General of Labour.
→ In addition, when an employer applies for the Commissioner’s approval, the Commissioner may direct the employer to furnish any information or explanation (§ 13 TEWA). The worker concerned must be served with a copy of the application and afforded an opportunity of being heard (§ 2(2)(a) TEWA).

▶ Industrial Disputes Act, No. 43 of 1950 (IDA)
→ Section 32A IDA prohibits unfair labour practices by employers, including:
▻ Dismissal of a workman by reason only of his membership of a trade union or of his engaging in trade union activities (§ 32A(b) IDA);
▻ Dismissal of any workman or office-bearer of a trade union for any statement made by such workman or office-bearer in good faith before any tribunal or person in authority; or any statement regarding acts or omissions of the employer relating to the terms and conditions of employment, of the members of such trade union made by such workman or office-bearer, in pursuance of an industrial dispute for the purpose of securing redress or amelioration of working conditions of such members (§ 32A(f) IDA).
→ Section 40 IDA makes it an offence to dismiss a worker because he/she has become entitled to the benefit of any collective agreement, award or order (Section 40(1)(k)), or because the worker takes part in any proceedings against the employer, either as a witness or as a party (Section 40(1)(j) and (p) IDA).
▶ Maternity Benefits Ordinance, No. 32 of 1939 (as amended)
→ Under section 10 of the Maternity Benefits Ordinance, when a woman worker absents herself from work in accordance with the provisions of the Ordinance (maternity leave), it shall not be lawful for her employer to give her notice of dismissal during such absence or on such a day that the notice will expire during such absence.
→ Section 10A (1) of the Maternity Benefits Ordinance provides that: The employment of a woman worker shall not be terminated by reason only of her pregnancy or confinement or of any illness consequent on her pregnancy or confinement.
▶ Constitution of the Democratic Socialist Republic of Sri Lanka
→ Article 12(2) of the Constitution indicates that: No citizen shall be discriminated against on the grounds of race, religion, language, caste, sex, political opinion, place of birth or any such grounds.

▶ Maternity Benefits Ordinance, No. 32 of 1939 (as amended)
→ Section 10: When a woman worker absents herself from work in accordance with the provisions of this Ordinance, it shall not be lawful for her employer to give her notice of dismissal during such absence or on such a day that the notice will expire during such absence.
→ Section 10A: The employment of a woman worker shall not be terminated by reason only of her pregnancy or confinement or of any illness consequent on her pregnancy or confinement.
▶ Industrial Disputes Act, No. 43 of 1950 (IDA)
→ Section 32A(b): No employer shall dismiss a workman by reason only of his membership of a trade union or of his engaging in trade union activities.
→ Section 32A(f): No employer shall dismiss any workman or office-bearer of a trade union for any statement made by such workman or office-bearer in good faith before any tribunal or person in authority; or for any statement regarding acts or omissions of the employer relating to the terms and conditions of employment of the members of such trade union, made in pursuance of an industrial dispute for the purpose of securing redress or amelioration of working conditions of such members.
→ Section 40(1)(j), (k) and (p): It is an offence for an employer to dismiss a worker because the worker takes part in any proceedings against the employer (either as a witness or as a party), or because the worker has become entitled to the benefit of any collective agreement, award or order.

▶ Termination of Employment of Workmen (Special Provisions) Act, No. 45 of 1971 (TEWA)
→ No specific statutory form is required for the notice of termination itself. However, for any termination other than disciplinary dismissal, the employer must either obtain the prior written consent of the workman or apply for the prior written approval of the Commissioner General of Labour (§ 2(1) TEWA).
→ A copy of the employer’s application for approval must be served on the workman concerned, who shall be afforded an opportunity of being heard (§ 2(2)(a) TEWA).
→ The decision of the Commissioner General of Labour granting or refusing approval must be in writing and communicated to both the employer and the workman (§ 2(2)(d) TEWA).

▶ Termination of Employment of Workmen (Special Provisions) Act, No. 45 of 1971 (TEWA)
▷ There is no statutory notice period under TEWA.
→ Termination of employment of workers covered by TEWA for any reason other than disciplinary action is subject to the prior written approval of the Commissioner General of Labour (§ 2(1) TEWA).
▶ Industrial Disputes (Hearing And Determination Of Proceedings)(Special Provisions), Act No 13 of 2003
→ The Commissioner is required to make a decision within two months from the date of receipt of the application (§ 11 of the Industrial Disputes (Hearing and Determination of Proceedings) (Special Provisions) Act, No. 13 of 2003).
▶ Industrial Disputes Act, No. 43 of 1950 (IDA)
→ The specific retrenchment notice and timing provisions in Part VA of the IDA (Sections 31F and 31G) generally do not apply to workers covered by TEWA. Those provisions apply only to cases where TEWA does not apply (i.e., establishments with 15 or more workers).
▻ For more information, see below under collective dismissals.

▶ Termination of Employment of Workmen (Special Provisions) Act, No. 45 of 1971 (TEWA)
→ The Act applies to any termination of employment other than disciplinary dismissal, including terminations for economic reasons (retrenchment or closure), whether one workman or several workmen are affected, provided the worker falls within its scope of application (private sector, establishment with 15 or more workers on average during the six months preceding the termination, and at least 180 days of continuous service) (§ 2(1) and § 3(1) TEWA).
▶ Industrial Disputes Act, No. 43 of 1950 (IDA)
→ Section 48 of the IDA defines “retrenchment” as the termination by an employer of the services of a workman or workmen on the ground that such workman or workmen is or are in excess of the number of workmen required by such employer to carry on his industry.

▷ There is no statutory obligation to consult trade unions or workers’ representatives before carrying out a retrenchment or economic dismissal.

▶ Termination of Employment of Workmen (Special Provisions) Act, No. 45 of 1971 (TEWA)
→ Any termination for economic reasons (including retrenchment) requires either the prior written consent of the workman or the prior written approval of the Commissioner General of Labour (Section 2(1) TEWA).
▶ Industrial Disputes Act, No. 43 of 1950 (IDA)
→ Section 31F of the IDA indicates that: Where an employer intends to effect retrenchment in respect of any workman employed in an industry carried on by that employer, he shall, unless such retrenchment is in consequence of an agreement between the employer or the representative of the employer and the workman or the representative of the workman, or a settlement or award under this Act—
(a) give to that workman at least one month’s notice in writing of such intention, and, if that workman is a member of a trade union, to that trade union, and
(b) send a copy of such notice to the Commissioner.

▶ Termination of Employment of Workmen (Special Provisions) Act, No. 45 of 1971 (TEWA)
▷ There is no general statutory obligation to notify workers’ representatives. However:
▷ Under TEWA, a workman who is a member of a trade union may be represented by a trade union officer in proceedings before the Commissioner.
→ Section 17A TEWA provides that: In any proceedings at any inquiry held by the Commissioner, the employer or the workman may be represented by an officer of a trade union of which such employer or workman is a member.
▶ Industrial Disputes Act, No. 43 of 1950 (IDA)
▷ Under the IDA, in the case of intended retrenchment of a trade union member (where TEWA does not apply), notice must be given to the trade union.
→ Section 31F IDA indicates that: Where an employer intends to effect retrenchment in respect of any workman employed in an industry carried on by that employer, he shall, unless such retrenchment is in consequence of an agreement between the employer or the representative of the employer and the workman or the representative of the workman, or a settlement or award under this Act—
(a) give to that workman at least one month’s notice in writing of such intention, and, if that workman is a member of a trade union, to that trade union, and
(b) send a copy of such notice to the Commissioner.

▶ Termination of Employment of Workmen (Special Provisions) Act, No. 45 of 1971 (TEWA)
→ Any termination for economic reasons requires the prior written approval of the Commissioner General of Labour if the prior written consent of the workman has not been obtained (§ 2(1) TEWA).
▶ Industrial Disputes (Hearing And Determination Of Proceedings)(Special Provisions), Act No 13 of 2003
→ Section 11 of the Industrial Disputes (Hearing And Determination Of Proceedings)(Special Provisions) provides that: In the exercise of his powers under section 2 of the Termination of Employment of Workmen (Special Provisions) Act, to grant or refuse approval to an employer to terminate the scheduled employment of any workman, it shall be the duty of the Commissioner to make his order within two months of the date of receipt of the application from the employer.
▶ Industrial Disputes Act, No. 43 of 1950 (IDA)
→ In cases where TEWA does not apply, the IDA does not require prior approval by the Commissioner for retrenchment. It provides only for the Commissioner's role in the settlement of any industrial dispute arising from the intended retrenchment (§ 31H IDA).

▷ There is no statutory requirement for approval by workers’ representatives.

▷ There are no statutory priority rules (e.g., based on age, length of service, or social considerations) governing the selection of workers for retrenchment.

▶ Industrial Disputes Act, No. 43 of 1950 (IDA)
→ Under section 50 IDA, where after any employer has effected any retrenchment in respect of any workman, the employer proposes to employ any new workman, he shall give preference to the workman retrenched by him if such workman offers himself for re-employment.
▷ Note: There is no statutory indication as to the duration of such priority. This provision applies in residual cases where TEWA does not apply and the conditions in section 31E(1) IDA are met.

▷ There is no statutory obligation on the employer to consider alternatives to dismissal (such as transfers, retraining, or reduced working time) before carrying out a retrenchment.

▷ Sri Lanka has no statutory numerical threshold distinguishing “individual” from “collective” economic dismissals.
▷ The Termination of Employment of Workmen (Special Provisions) Act (TEWA) applies to termination for economic reasons (including retrenchment and closure), whether one workman or several are affected, provided the worker meets the scope criteria under section 3(1) TEWA.
▷ For workers covered by TEWA, the prior approval mechanism under section 2 of TEWA is the governing procedure. There are no specific additional procedural requirements applicable only to retrenchment or collective economic dismissals under TEWA.
▷ The specific retrenchment procedures in sections 31E–31H of the Industrial Disputes Act, including the one-month notice requirement under section 31F and the two-month waiting period under section 31G, generally do not apply to workers covered by TEWA. They apply only to cases that are not covered by TEWA and meet the conditions in section 31E(1) of the IDA (i.e., establishments with 15 or more workers on average, non-seasonal industries, and workers with at least one year of continuous service).

▶ Payment of Gratuity Act (PGA), No. 12 of 1983 (as amended)
→ Section 5(1) PGA provides that: Every employer who employs or has employed fifteen or more workmen on any day during the period of twelve months immediately preceding the termination of the services of a workman in any industry shall, on termination (whether by the employer or workman, or on retirement or by the death of the workman, or by operation of law, or otherwise) of the services at any time after the coming into operation of this Act, of a workman who has a period of service of not less than five completed years under that employer, pay to that workman in respect of such services, and where the termination is by the death of that workman, to his heirs, a gratuity computed in accordance with the provisions of this Part within a period of thirty days of such termination.
→ The gratuity is payable on termination of employment for any reason, including dismissal by the employer, resignation, retirement, death of the workman, or by operation of law (§ 5(1) PGA).
→ Section 6(2) PGA indicates that: A workman referred to in subsection (1) of section 5 shall be entitled to receive as gratuity a sum equivalent to:
(a) half a month's wage or salary for each year of completed service, computed at the rate of wage or salary last drawn by the workman, in the case of a monthly rated workman; and
(b) in the case of any other workman, fourteen days' wage or salary for each year of completed service, computed at the rate of wage or salary last drawn by that workman:
Provided, however, in the case of a piece-rated workman, the daily wage or salary shall be computed by dividing the total wage or salary received by him for a period of three months immediately preceding the termination of his employment, by the number of days worked by him in that period.
(3) Notwithstanding the provisions contained in subsection:(2); the gratuity payable to a workman referred to in the first provision of subsection (1) in respect of the period of service for which he is entitled to a gratuity under part I of this Act shall be computed at the rate of a sum equivalent to fourteen days' wage or salary of that workman for each year of completed service based on the rate of wage or salary payable in the month in which such land vested in the land Reform Commission or was acquired under the Land Acquisition Act.
▷ Exception: Section 7 PGA stipulates that: The provisions of section 5 shall not apply to or in relation to a workman-
(a) employed as a domestic servant or as a personal chauffeur in a private household;
(b) entitled to a pension under any non-contributory pension scheme.
▶ Industrial Disputes Act, No. 43 of 1950 (IDA)
→ Section 31B(1)(b) and section 31B(6)(c) IDA: In establishments employing less than fifteen workmen, a workman (or a trade union on his behalf) may apply to a Labour Tribunal for an order for payment of gratuity or other benefits due on termination of services.

▷ There is no separate statutory redundancy payment or severance pay specifically linked to economic dismissal (retrenchment) in Sri Lanka.
→ The gratuity under the Payment of Gratuity Act applies to termination for any reason, including economic reasons.
→ In addition, where termination results from the closure of the business in contravention of the Termination of Employment of Workmen (Special Provisions) Act, the Commissioner General of Labour may order further compensation under section 6A(1) TEWA (see Avenues for redress section).

▷ Note on the nature of the gratuity:
▻ The gratuity under the Payment of Gratuity Act is a statutory long-service benefit payable upon termination after five completed years of service. It is not a remedy or sanction specifically designed for unfair or illegal dismissal. The primary remedies for illegal termination under the Termination of Employment of Workmen (Special Provisions) Act remain reinstatement with back wages (§§ 5 and 6 TEWA), or compensation in cases of illegal closure (§ 6A TEWA).