End a role on economic grounds in Sri Lanka, the right way.
Answer a few questions and the toolkit builds your evidence pack as you go — the consent-or-approval route, the tapering compensation figure and the records that prove you followed TEWA.
Sri Lanka — TEWA (Act No. 45 of 1971): prior written consent or the Commissioner of Labour’s approval for economic terminations (employers with 15+ workmen), on the Gazette 1384/6 tapering scale capped at 48 months.
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Termination on economic grounds — for Sri Lankan employers
In Sri Lanka, ending a job for economic reasons is not a decision the employer makes alone. Under the Termination of Employment of Workmen Act No. 45 of 1971 (TEWA), an employer with 15 or more workmen may not terminate a worker with 180 days’ service on economic grounds without the worker’s prior written consent or the Commissioner of Labour’s prior written approval — a termination in breach of this is null and void. This free AI toolkit walks you through the correct route for your exact situation and builds the evidence pack the Commissioner expects.
The process, step by step
- Business case — record the genuine economic reason the role is no longer needed; TEWA is about the post, not the person.
- Check the scope — TEWA applies where the employer has 15 or more workmen (six-month average) and the worker has 180 or more days’ service.
- Consent or approval — obtain the worker’s prior written consent; if it is not given, apply to the Commissioner of Labour for prior written approval before any termination.
- Commissioner’s determination — the Commissioner may fix the compensation payable; the decision is final and no order is made after six months.
- Compensation & final pay — pay the TEWA compensation on the tapering scale, plus any gratuity and dues, at termination.
TEWA compensation
Compensation follows the tapering per-year scale in Gazette Extraordinary 1384/6 (15 March 2005) — more months are paid for each of the early years of service and fewer for the later ones — subject to an overall cap of 48 months’ salary. TEWA prescribes no statutory notice period; the consent/approval regime substitutes for it.
| Years 1–5 | 2.5 months’ salary per year |
| Years 6–14 | 2 months’ salary per year |
| Years 15–19 | 1.5 months’ salary per year |
| Years 20–24 | 1 month’s salary per year |
| Years 25–34 | 0.5 month’s salary per year |
Overall cap: 48 months’ salary, however long the service. The Commissioner of Labour fixes the amount where approval is sought, and that determination is final.
Notice
| TEWA (economic termination) | No statutory notice — prior consent or Commissioner’s approval instead |
| Any contractual notice | As set by the contract or the Shop & Office Act (about 1 month) |
A termination on economic grounds without the worker’s written consent or the Commissioner’s prior written approval is null and void (TEWA s.5).
The consent / approval gate
TEWA does not turn on the number of workers dismissed — the consent-or-approval requirement applies to a single economic termination once the employer has 15 or more workmen and the worker has 180 days’ service. Either the worker gives prior written consent, or the Commissioner of Labour gives prior written approval; the Commissioner may fix the compensation, the decision is final, and no order is made after six months. Disputes are heard by the Commissioner of Labour or a Labour Tribunal.
Common questions
Can I make a role redundant without approval?
No. If you have 15 or more workmen and the worker has 180 days’ service, an economic termination needs the worker’s prior written consent or the Commissioner of Labour’s prior written approval. A termination without either is null and void under TEWA s.5.
How much compensation is payable?
On the Gazette 1384/6 scale: 2.5 months’ salary per year for years 1–5, 2 months for years 6–14, 1.5 months for years 15–19, 1 month for years 20–24 and 0.5 month for years 25–34, capped at 48 months’ salary overall.
Is there a notice period?
TEWA prescribes no statutory notice — the consent-or-approval regime takes its place. Any notice you give is contractual or under the Shop & Office Act (about one month).
Reference: Termination of Employment of Workmen (Special Provisions) Act No. 45 of 1971 ss.2, 3, 5, 6B, 6D; Gazette Extraordinary 1384/6 (15 Mar 2005). General information for employers, not legal advice.