Labour Law Compliance Checklist for Employers (Sri Lanka)

1. Coverage test — identify which rules govern your workforce

The first control question is not "what template do we use?" but "which law applies to this employee group?"

• Determine whether the establishment falls under the Shop and Office Employees Act
• Identify wage-board or sector-specific rules applicable to the business
• Map coverage by function and location for multi-branch businesses
• Document the coverage decision as a written internal note, not a verbal assumption
• Cross-check against the Labour Department legislation index

2. Employment documentation before day one

• Job title and reporting line documented
• Place of work confirmed
• Start date recorded
• Wage or salary basis agreed in writing
• Normal working hours defined
• Leave basis and approval route specified
• Probation terms documented if used
• Disciplinary expectations stated
• Employee records holder identified
• Employment file connected to the payroll file so salary matches terms

3. Hours, attendance, and wage controls

Labour law problems often begin with operational drift, not deliberate misconduct.

• Roster reflects actual working hours, not assumed ones
• Overtime approvals are documented (not verbal)
• Weekly rest days are recorded and provided
• Attendance devices match payroll inputs
• Managers cannot change work patterns without HR or payroll visibility
• Time-and-attendance control model is documented

4. Leave management

• Annual leave, casual leave, and sick leave entitlements documented per employee group
• Leave register updated in real time (not backdated)
• Weekly-rest and half-holiday obligations tracked for Shop and Office employees
• Leave balances reconciled quarterly
• Maternity leave entitlements mapped under the Maternity Benefits Ordinance

5. Disciplinary and termination controls

• Charge letter process documented for misconduct dismissals
• Internal inquiry procedure established with independent finding
• Retrenchment procedure follows TEWA requirements
• Notice periods match the applicable statute and employment contract
• Final-pay calculations include all statutory entitlements (gratuity, leave encashment)

6. Inspection readiness

The most common inspection failure point: leave registers that are not updated in real time.

• Statutory registers available and current
• Wage records match bank transfer evidence
• EPF/ETF contribution records complete and accessible
• Attendance records support overtime claims and weekly rest compliance
• Written employment contracts available for all employees
• Weekly closing routine on the leave register prevents inspection findings