HR Templates Termination Letter Format
Termination Letter Format Sri Lanka: Disciplinary and Probation Templates
Free termination letter formats for Sri Lankan employers — disciplinary termination with written reasons under the Termination of Employment of Workmen Act, and termination during probation — in Word and PDF, with the legal steps that must come first.
Termination in Sri Lanka is tightly regulated for employers with fifteen or more workmen. Under the Termination of Employment of Workmen (Special Provisions) Act, No. 45 of 1971, such an employer may not end the employment of a workman with more than 180 days’ service on non-disciplinary grounds without the workman’s prior written consent or the prior written approval of the Commissioner General of Labour; a termination in breach is null and void and the workman can be reinstated with back wages. Disciplinary termination is outside that approval requirement, but section 2(5) requires the employer to give the workman the reasons in writing within two working days, and Labour Tribunals test whether a fair process was followed.
Employers with fewer than fifteen workmen and probationers are outside the Act but not outside the Industrial Disputes Act: an unjustified termination can still go to a Labour Tribunal, so reasons, notice per the contract and a fair process still matter. Probation is not statutory; it must be stated in the letter of appointment together with the notice that applies during it.
The two formats here cover the common cases: a disciplinary termination issued after a show-cause letter and inquiry, and a termination during probation for unsuitability. Both list the final-settlement items that cannot be withheld.
Termination letter — disciplinary (after inquiry)
Refers to the show-cause letter, explanation and inquiry; states the misconduct and rule breached; gives the reasons within two working days as section 2(5) requires; sets out the final settlement.
[Company Letterhead]
Date: [DD Month YYYY]
Ref: [HR/TERM/____]
BY HAND / REGISTERED POST
[Employee Full Name]
[Designation], [Department]
[Employee Address]
Subject: Termination of employment on disciplinary grounds
Dear [Mr/Ms Last Name],
We refer to the show-cause letter dated [date], your written explanation dated [date] and the domestic inquiry held on [date], at which you were given the opportunity to be heard.
The inquiry found that on [date(s)] you [describe the misconduct precisely: what was done, where, the rule or instruction breached], which constitutes [gross misconduct / a serious breach of clause [x] of your letter of appointment / the Company’s code of conduct]. Having considered your explanation and your service record, the Company has decided to terminate your employment by way of disciplinary action.
Your employment is terminated with effect from [Effective Date]. In accordance with section 2(5) of the Termination of Employment of Workmen (Special Provisions) Act, No. 45 of 1971, this letter sets out the reasons for the termination and is issued to you within two working days of the decision.
Your final settlement will consist of: salary to [Effective Date]; payment for accrued annual leave in terms of section 6(6) of the Shop and Office Employees Act; [any other amounts due]. EPF and ETF contributions to the date of termination will be remitted and the relevant forms issued. [Gratuity is payable / is forfeited in terms of section 12 of the Payment of Gratuity Act on the ground of [specify] — delete as applicable.] Please return all company property, including [items], to [name] on or before [date]. A certificate of service will be issued on request.
Yours faithfully,
.................................................
[Name of Authorised Signatory]
[Designation]
[Company Name] [Company Seal]
Received by: ......................................... [Employee Name] Date: ................ (or: sent by registered post on [date], receipt no. [x])
Termination letter — during probation
Cites the probation clause and notice, records the reviews held, ends the employment with notice or pay in lieu, and lists the settlement.
[Company Letterhead]
Date: [DD Month YYYY]
Ref: [HR/PROB/____]
[Employee Full Name]
[Designation] (Probationer), [Department]
[Employee Address]
Subject: Termination of employment during the probationary period
Dear [Mr/Ms Last Name],
You were appointed to the post of [Designation] by letter dated [date], on a probationary period of [six] months commencing [start date], during which either party could terminate the employment on [two weeks’] notice or payment in lieu, as stated in clause [x] of that letter.
Your performance and suitability for the post were reviewed on [date(s)] and discussed with you on [date(s)], when the areas requiring improvement were explained. Regrettably, the required standard has not been met, and the Company has decided not to confirm you in the post.
Your employment will end on [Effective Date]. [You are not required to work the notice period and will be paid [two weeks’] salary in lieu of notice.] Your final settlement will include salary to that date, [payment in lieu of notice], and any accrued leave due in terms of section 6(6) of the Shop and Office Employees Act. EPF and ETF contributions to the date of termination will be remitted and the relevant forms issued.
Please return all company property to [name] by [date]. A certificate of service will be issued on request. We thank you for your contribution and wish you well.
Yours faithfully,
.................................................
[Name of Authorised Signatory]
[Designation]
[Company Name] [Company Seal]
Received by: ......................................... Date: ................
What a termination letter must include
- The effective date and the contractual notice or payment in lieu
- For disciplinary termination: the specific conduct, the rule breached, the show-cause and inquiry history, and the reasons (section 2(5))
- For probation: the probation clause, the reviews held and the ground of unsuitability
- The final settlement: salary to the effective date, accrued annual leave under section 6(6), EPF and ETF to date, gratuity where due, payment in lieu where applicable
- Return of company property, the certificate of service, and proof of delivery (by hand with acknowledgement or registered post)
What not to do
- Terminating a covered workman for non-disciplinary reasons without consent or the Commissioner’s approval. The termination is void; use a written mutual-separation agreement or apply to the Commissioner.
- Skipping the show-cause letter and inquiry. Tribunals look for a specific charge, a chance to explain and an unbiased decision-maker.
- Dismissing a woman by reason of pregnancy or during maternity leave. Prohibited under the Shop and Office Employees Act (s.18E) and the Maternity Benefits Ordinance.
- Withholding terminal benefits. Final salary, accrued leave and EPF/ETF cannot be withheld; gratuity is forfeitable only in the narrow cases the Payment of Gratuity Act allows.
- Treating unexplained absence as termination on day one. Write to the employee requiring a return within a stated period before treating the post as vacated.
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