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Sri Lanka

How to Hire Workers in Sri Lanka | Employer of Record (EOR) in Sri Lanka

Looking to establish your business in Sri Lanka? Our EOR services provide expert guidance on local employment regulations, ensuring a smooth entry into this market. We handle all aspects of local employment, from managing payroll to navigating complex labor laws, allowing you to focus on your core business. With our support, you can confidently expand your business into Sri Lanka, knowing that you have a trusted partner managing your international employment needs.

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Sri Lanka, known for its stunning landscapes, rich history, and warm hospitality, offers great opportunities for businesses looking to expand internationally. TCWGlobal simplifies the process of hiring in Sri Lanka, offering comprehensive solutions for building your contingent workforce.

With a population of over 21 million people, Sri Lanka boasts a young and dynamic workforce. From the ancient ruins of Anuradhapura to the beautiful beaches of Bentota, the country offers a unique blend of culture and natural beauty.

When expanding your business into Sri Lanka, compliance with local regulations is essential. TCWGlobal, as your employer of record, ensures that your contingent workforce is fully compliant, reducing risks for your organization.

In addition to compliance, TCWGlobal provides personalized services and benefits for your contingent workforce. Whether you require assistance with payrolling management, benefits administration, or any other aspect of HR, our team is committed to meeting your needs.

By partnering with TCWGlobal, you can confidently expand your business into Sri Lanka, knowing that your contingent workforce is in capable hands. Our expertise and comprehensive solutions make us the ideal partner for businesses seeking to establish a presence in this dynamic market.
Worker Classifications

There are no official subcategories of Workers in Sri Lanka. However, there are various industry-specific rules.

Fixed-Term Contracts

​Fixed-term contracts are permitted in Sri Lanka. They are usually for a a maximum of 12 months. If it is renewed beyond a year or repeatedly renewed, it will be deemed an indefinite contract. Termination requirements can be negotiated and included in the fixed-term agreement.

Probationary Periods

Probationary periods up to six months are permitted in Sri Lanka. The contract must clearly state the length and any conditions such as circumstance under which the contract may be terminated during probation.


In Sri Lanka, Workers recognize between 12 and 14 public ("mercantile") holidays, about 8 of which tend to fall on workdays and some of which are multiple days long. Generally, public holidays are paid days off and if work is performed on a public holiday the Worker receive an alternative day off or an extra day's wage. However, there are different rules governing different industries. On Full Moon Pya Day specifically, all Workers are entitled to paid leave or 150% of wages.2024:Tamil Thai Pongal Day - January 15 Duruthu Full Moon Poya Day - January 25Independence Day - February 4Navam Full Moon Poya Day - February 23Mahasivarathri Day - March 8Medin Full Moon Poya Day - March 24Good Friday - March 29Id Ul-Fitr - April 11Day prior to Sinhala & Tamil New Year Day - April 12Sinhala & Tamil New Year Day - April 13Bak Full Moon Poya Day - April 23May Day - May 1Vesak Full Moon Poya Day - May 23-24Id-Ui-Alha - June 17Poson Full Moon Poya - June 21Esala Full Moon Poya Day - July 20Nikini Full Moon Poya Day - August 19Milad-Un-Nabi - September 16Binara Full Moon Poya Day - September 17Vap Full Moon Poya Day - October 17Deepavali Festival Day - October 31 Ill Full Moon Poya Day - November 15Unduvap Full Moon Poya Day - December 14Christmas Day - December 25


Shop and office employees that work at least 28 hours in any one week are entitled to 1.5 days' paid holiday in that week or the week immediately thereafter. Generally, Workers get a half day on Saturday and a full day on Sunday. They are also entitled to 14 days' annual leave for each completed year of service or pro-rata portion thereof. Other rules apply to other industries.

Sick Leave

During the first year of service, shop and office employees are entitled to one day's paid casual leave for every two months worked. After the first year of service, shop and office employees are entitled to seven days' paid casual leave per year.

Working Hours

The normal workday for all shop and office employees cannot exceed nine hours in a day (inclusive of a one-hour meal period) and 45 hours in a week.


Shop and office employees are entitled to 150% of wages for overtime work. Overtime hours cannot exceed 12 hours. Executives and other professionals are not entitled to overtime.

Mandatory Bonuses

A 13th month salary is not mandatory in Sri Lanka.


Except in cases of dismissal on disciplinary grounds, termination requires a reason, notice as stipulated in the employment contract, prior written consent of the Worker, and written approval from the Commissioner of Labour. Severance may be due if the Worker has more than five years of service or if the dismissal is considered unjust. The amount of severance is dependent upon the length of service. For example, in the case of an unjust dismissal, employees with one to five years of service would be entitled to 2.5 months' salary for each completed year of service (12.5 months in total).


There are no statutory requirements for Worker resignation. Resignation does not require approval from the Commissioner of Labour.

Other End of Employment Rules

Collective dismissals (aka "retrenchment") require one month's notice for any Worker who has completed a year of service.

How an EOR Can Help You Win Fast

TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.

Common Pitfalls in Choosing an EOR

When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.