Employment Agreement Essentials
Key elements and requirements for employment contracts in Sri Lanka, ensuring compliance and protection for both employers and employees.
Types of Employment Agreements
Indefinite Employment Contracts are highly valued by experienced professionals in Sri Lanka as they provide the stability and documentation needed for important life decisions. These contracts are essential for securing bank loans, mortgages, and serving as professional references - making them the preferred choice for skilled workers looking for long-term career growth.
Indefinite Employment Contracts
No pre-defined end date, most common type of employment agreement
- ✓ Ongoing employment relationship
- ✓ Full statutory benefits and protections
- ✓ Standard notice periods apply
- ✓ Covered by Termination Act
Fixed-Term Contracts
Specified duration up to five years maximum
- ✓ Clear end date defined
- ✓ Project-based employment
- ✓ Renewal options possible
- ✓ Converts to indefinite after 5 years
Casual Employment
Short-term or irregular work arrangements
- ✓ No guaranteed hours
- ✓ Task-specific engagement
- ✓ Limited benefits entitlement
- ✓ Flexible scheduling
Apprenticeship Agreements
Training-focused employment for skill development
- ✓ Structured training program
- ✓ Fixed training period
- ✓ Reduced compensation
- ✓ Educational components
Essential Contract Clauses
Basic Employment Details
- ✓ Job title and description
- ✓ Work location
- ✓ Start date
- ✓ Reporting relationships
- ✓ Probation period terms
Remuneration & Benefits
- ✓ Base salary amount
- ✓ Payment frequency
- ✓ Bonus structures
- ✓ Allowances
- ✓ Benefits package
Working Hours & Leave
- ✓ Standard work hours
- ✓ Overtime policies
- ✓ Annual leave entitlement
- ✓ Sick leave provisions
- ✓ Public holidays
Confidentiality & IP
- ✓ Confidential information definition
- ✓ Non-disclosure terms
- ✓ Intellectual property rights
- ✓ Post-employment obligations
- ✓ Data protection
Probationary Period
Duration
Typically 3-6 months, maximum extension of 3 months
Performance Review
Regular evaluation of skills and cultural fit
Notice Period
Shorter notice periods during probation
Benefits
Limited benefits may apply during probation
Confidentiality & Non-Compete Clauses
Confidentiality Terms
Scope of Confidentiality
Clear definition of confidential information and trade secrets
Duration
Obligations during employment and post-termination period
Data Protection
Compliance with data protection laws and regulations
Return of Materials
Requirements for returning confidential materials upon termination
Non-Compete Terms
Geographic Scope
Reasonable geographic limitations for restrictions
Time Period
Limited duration of post-employment restrictions
Business Scope
Specific business activities covered by restrictions
Compensation
Payment for post-termination restrictions
Need Help with Employment Agreements?
Our legal experts can help you draft compliant employment agreements that protect your interests while ensuring fair terms for your employees.