Job Security in Sri Lanka
Introduction
The guarantee that one can
maintain their employment without worrying about losing it at any time is known
as job security. For many workers in Sri Lanka, job security is a major
concern, particularly in light of changes in the job market and economy
Discussion
Many workers ask: “Is my job really secure?” Why they ask job security
matters?
·
Employees ask for reduces their stress, enables
long-term planning (financial, family, education).
·
Employers ask for stable workforce fosters institutional
knowledge, higher retention costs avoided, better productivity.
· People in society ask for high job insecurity can lead to lower consumer spending, weaker social cohesion, and increased welfare burdens.
Importance of job security
Why Job Security Has
Become a Problem?
Job security has become a problem in Sri Lanka because of
several reasons are as follows
*Economic Crisis-companies
face losses, they often reduce staff to cut costs.
*Rise of contract and
temporary jobs-These jobs often don’t have strong legal protection, so
workers can lose them easily.
*Technological change-
automation or digital systems in offices can reduce the need for workers.
*Weak awareness of employee
rights
*Labour law enforcement issues
Job Security in Sri Lanka
The stability and safety of a
person's employment is referred to as job security. In Sri Lanka, job security
can be different depending on where the employee work. Because government
employees are safeguarded by strict regulations and seldom lose their
positions, government occupations are typically relatively secure.
However, job security is not always assured in the private sector. Many employees are engaged on a contract or short-term basis, which means that their employment may terminate when the contract expires or if the business experiences financial difficulties.
Example: Job Security Problems in Sri Lanka’s
Tea Estate Sector
Tea estate workers are important for Sri Lanka's economy, many of them deal with unstable employment and poor working conditions. Most of estate workers receive daily wages & low wages, meaning they are paid only for the days they give in. They can lose their jobs or their income if there is bad weather, an illness, or a drop in tea production (Wickramasekara E.S.,Virajini R.K.H. & Hettige I.S., 2025).
The Termination of Employment
of Workmen Act and other labour rules are not sufficiently safeguarding estate
workers because many of them do not have permanent employment contracts.
Additionally, some employees may not be aware of their legal rights and may be
reluctant to report unjust treatment for fear of losing their jobs or the
estate's housing.
Another problems we can see,
·
The low daily wages they receive & make it
difficult for them to save money.
·
Some casual workers may not receive social
security benefits like EPF or ETF.
·
Few opportunities for training or promotion,
which makes it challenging to establish a successful career.
· Dependence on estate management
decisions for housing and welfare, which reduces freedom to speak up.
Here are some of the Legal Acts in Sri Lanka that fall under the Department of Labour and related to job security and employment rights. The Department of Labour (Sri Lanka), which is part of the Ministry of Labour and Foreign Employment, is responsible for administering all of these Acts (Department of Labour , 2025).
Termination of Employment of Workmen (Special Provisions) Act No. 45 of 1971
This is the main legislation that protects employees in the private sector from wrongful termination of employment. Employers have no authority to terminate employees without the employee's consent or the Commissioner of Labour's written approval.
Shop and Office Employees (Regulation of Employment and Remuneration) Act No.19 of 1954
This Act establishes guidelines for employees' salaries, working hours, and holidays in stores and offices. It contributes to ensuring that employees have stable employment and fair working conditions.
Industrial Disputes Act No. 43 of 1950
This Act offers a means of resolving disputes between employers and employees through the Labour Department. It also protects workers who are involved in trade unions or industrial actions from being unfairly dismissed.
Wages Boards Ordinance No. 27 of 1941
This law sets minimum wages and other conditions for different
industries.
Employees’ Provident Fund (EPF) Act No. 15 of 1958
This law requires employers to contribute to a retirement savings fund for employees. It doesn’t directly protect a job but gives financial security after retirement or job loss.
Employees’ Trust Fund (ETF) Act No. 46 of 1980
Similar to EPF, this provides additional social security benefits to employees.
Minimum Retirement Age of Workers Act No. 28 of 2021
This law sets a minimum retirement age (usually 60 years) for private sector workers.
Conclusion
For Sri Lankan workers, job stability is crucial because it makes them feel secure and helps them make plans for the future. Many people still struggle because of short-term contracts, a lack of awareness of their rights, and financial difficulties, despite legislation protecting workers from wrongful termination. Employees should develop their skills and be aware of their legal rights, and businesses and the government should collaborate to generate stable and equitable jobs.
References
Ariyarathna, B.A.R.R., 2020. Employment Security of Probationary Workers in Sri Lanka: A Comparative Legal Analysis. Volume 29, pp. 130–135.
Department of Labour, 2025. Labour Legislations. [Online]
Available at: https://labourdept.gov.lk/labour-legislations/
[Accessed 08 November 2025].
Tivian, 2025. The importance of job security in turbulent times. [Online]
Available at: https://www.tivian.com/uk/job-security/
[Accessed 08 November 2025].
Wickramasekara, E.S., Virajini, R.K.H. & Hettige, I.S., 2025. Understanding workplace wellbeing among tea pluckers in Sri Lanka: a qualitative exploration. Journal of Institute of Human Resource Advancement, 9(1), pp. 60–69.
Importance of job security: YouTube Vedio:https://youtu.be/DU-Geqppdxc
This blog provides a concise and useful summary of the intricacies of job security in Sri Lanka, highlighting the shortcomings of the country's current labor laws while also skillfully describing the main causes of insecurity (contract work, economic disaster).
ReplyDeleteThank you for commenting on my blog. All employees should understand job security in the workplace, especially in relation to labour laws. When employees are satisfied in an organization, it leads to higher productivity.
ReplyDeleteThis blog provides a comprehensive overview of job security in Sri Lanka, effectively connecting economic, legal, and sector specific factors. The integration of labour legislation and real examples, such as the tea estate sector, strengthens the analytical depth of the discussion.
ReplyDeleteYour encouragement is truly appreciated. I included the tea estate sector as an example because their wages are reviewed annually in the national budget, and they often face low salaries as well as issues with EPF and ETF contributions. These challenges highlight why job security is such an important topic in this sector.
DeleteYour report is very clearly explains the situation of job security in Sri Lanka. The examples and legal acts you included show good understanding and practical knowledge. The flow is easy to read, and the content is well-organized.
ReplyDeleteThank you for your feedback. I included these labour acts to help workers understand the protections they have. Even though there are laws that ensure job security, many workers are still unaware of their rights. I hope this blog helps create more awareness.
DeleteGood post! You make a strong case about job security in Sri Lanka — especially in public or state‑bank jobs, where economic instability and high turnover make security a major HR challenge.
ReplyDeleteThank you for your comment. I appreciate you pointing out the situation in public and state-bank jobs. These sectors are often seen as stable, but economic challenges and frequent staff turnover have made job security a major concern. Because of this, HR departments face difficulties in keeping employees, maintaining productivity, and ensuring long-term stability. Your observation words great value to the discussion.
ReplyDeleteThis blog offers a comprehensive and well-organised overview of job security issues in Sri Lanka. It clearly explains why job security matters, the key challenges workers face, and how economic conditions, contract work, and technology contribute to growing uncertainty. The inclusion of real examples such as the tea estate sector and relevant labour laws strengthens the analysis and makes the content practical and informative. Overall, it provides a balanced and meaningful discussion on the importance of job stability and the need for stronger protections, awareness, and fair employment practices in Sri Lanka.
ReplyDeleteYour appreciation truly motivates me. Many workers share a common concern: Is my job truly secure? I tried to address this issue in my explanation. And also I Included real examples and labour laws was meant to make the topic more relatable.
ReplyDeleteAs someone working in hospitality, I found this article on job security in Sri Lanka very relevant. In hotels, we see firsthand how uncertainty in employment affects not only our staff but also the quality of service we deliver to guests. When employees feel secure in their jobs, they are more motivated, more willing to invest in training, and more committed to creating memorable guest experiences. But when contracts are short‑term or wages unstable, it creates stress that inevitably shows in service standards.
ReplyDeleteThe points about tea estate workers resonate with us too—many hospitality workers face similar challenges with seasonal demand, daily wages, and limited career growth opportunities. Strengthening labour protections and investing in skills development would not only uplift workers but also help industries like ours build a stable, professional workforce. Job security isn’t just about protecting livelihoods; it’s about building confidence, dignity, and long‑term value for both employees and employers
Absolutely. You’ve highlighted such an important point. Job security is critical not just for employee wellbeing, but also for service quality in hospitality. When staff feel safe and supported, they’re more motivated, committed, and able to deliver memorable guest experiences. Investing in skills, fair wages, and stable contracts truly benefits both employees and the organization.
DeleteThis is a clear and thoughtful explanation. It highlights an important reality in Sri Lanka’s workforce. You have effectively balanced the comparison between government and private-sector employment.
ReplyDeleteThank you for your kind comment. I mean ,Sri Lankan workers need stable jobs so they can feel secure and plan their future.
DeleteEven though laws exist, many still suffer from short contracts, limited awareness of their rights, and financial challenges. To improve this, employees should build their skills and know their legal rights, while businesses and the government should work together to create fair, stable employment opportunities.
ReplyDeleteThis write-up clearly explains why job security is so important for workers in Sri Lanka and how economic challenges, contract jobs, and low awareness of rights make it a growing concern. It also highlights real examples, like the Tea Estate Sector, and shows how existing labor rules and regulations help protect employees. A well-structured and informative overview of the issues workers face today.