Employment Facts (Employment Contract)

Employment Contract

  • Can be in writing or by word of mouth or inferred through conduct. The terms can be expressed or implied.
  • For a Shop & Office employee, the following particulars of employment should be provided in writing: name, designation, nature of employment and grade, normal hours of work, rate and frequency of remuneration (including allowances and overtime), probationary period, normal working hours, leave, holidays and superannuation benefits, other benefits (such as medical and insurance), prospects of promotion, and other conditions of employment.

Probation Period

  • Not statutorily stipulated.
  • May vary from six months to one year, depending on the nature of employment.
  • The period of probation must be clearly stated in the letter of appointment.
  • Services of an employee can be terminated without giving reasons during the probation period.

Fixed-Term Employment

  • Term is not statutorily stipulated.
  • Automatic termination of services upon the expiry of the fixed term.
  • Can be renewed for a further period. Continuous renewal may constitute permanent employment.


  • Payable daily, weekly or monthly.
  • Salary assessment is possible. But it should not be less favourable than before.
  • Payment should be Sri Lankan Rupees (expatriate workers may be paid in designated foreign currency).