New Employment Bill Law Coming Soon- Here’s Why It Matters!

Why you should be excited for the new employment law bill

Sri Lanka stands on the verge of a momentous change with the forthcoming Employment Law Bill, aiming to reform century-old labor laws. The proposed changes seek to overcome challenges like complexity, discrimination, and inflexibility, which have hindered local businesses and deterred foreign investors. In this blog article, we will delve into five compelling reasons why you should be excited about the new Employment Law Bill. By streamlining regulations, fostering gender equality, and promoting a business-friendly environment, the bill promises a more dynamic and prosperous future for Sri Lanka’s labor market. The nation eagerly awaits the transformative impact of this bill, as discussions surrounding new employment bills continue to fuel excitement for the opportunities that lie ahead.  

1. Attracting Foreign Investment: 

The Employment Law Bill aims to attract foreign investors for two main reasons. Firstly, it promotes inclusivity by preventing workplace discrimination, making Sri Lanka an appealing investment destination. The country’s commitment to safety, demonstrated by endorsing conventions like C190 against harassment, further bolsters investor confidence. 

 The bill’s appeal also stems from addressing current labor law shortcomings. It balances employee-employer rights, allaying investor concerns about unfair treatment. Additionally, the bill modernizes outdated labor laws, ensuring they align with contemporary work trends and conditions. This adaptability makes Sri Lanka an attractive choice for global investors. 

2. Empowering Local Businesses: 

The empowerment of local businesses is propelled by the proposed legislative changes, such as those pertaining to gratuity payments and night-time work, as these exemplify a broader transformative approach. The removal of existing constraints on gratuity payments marks a significant leap, eliminating the stipulation of five years of continuous service and a workforce of 15 employees. This liberation from rigid requirements stands to unburden smaller enterprises, encouraging their workforce expansion, thereby amplifying productivity and bolstering the nation’s economic advancement. 

Moreover, the introduction of a 1 ½ payment scheme for male employees working during the night introduces an innovative facet. This incentivizes businesses to embrace flexible working hours, catering adeptly to the diverse needs of employees and augmenting overall productivity. These proposed regulations, alongside others of similar ilk, collectively foster an environment conducive to the growth of local enterprises, as they navigate a dynamic and ever-evolving economic landscape. 

3. Ensuring Fairness and Inclusivity: 

The Employment Law Bill addresses issues related to fairness and inclusivity in the workplace. By introducing legal provisions on occupational safety, health, and welfare of employees, Sri Lanka demonstrates its commitment to safeguarding workers’ well-being. The relaxation of legal provisions for night work of women employees, subject to certain conditions, ensures that female workers are not disadvantaged due to restrictive regulations, promoting gender equality, and encouraging more women to participate in the workforce. 

4. Embracing Modern Labor Practices: 

The proposed changes in labor rules reflect today’s work trends and economic shifts. New laws covering part-time jobs, traineeships, and apprenticeships make it easier for businesses to hire and manage their workforce. This encourages a mix of talents and helps people develop skills, which can attract foreign investors wanting a skilled and adaptable workforce. 

 Excitingly, there’s also a rule in the mix allowing university students to work part-time even though that’s not in practice that much. These changes together will create a more modern labor environment that suits how businesses operate today. 

5. Balancing Employee and Employer Rights: 

The Employment Law Bill aims to create a fairer labor environment by addressing unfair practices and promoting a better relationship between employers and employees. For instance, it stops trade unions from using unfair tactics and makes sure employers give timely decisions on discipline. This fair approach can lead to a more cooperative and productive workplace that benefits both workers and businesses. 

 Unlike the current law that often hurts business functioning and survival by favoring employers more than employees, the new bill aims to create a better balance. For example, trade unions currently have a lot of power over workers, especially in big export-focused companies. The new law suggests guidelines that encourage businesses to think about both employee well-being and business success, leveling the playing field and reducing the current bias toward employees.


The proposed Employment Law Bill in Sri Lanka holds significant promise for positive changes. It aims to attract foreign investment through friendly regulations and supports local businesses with financial relief and flexible work arrangements. This paves the way for fair workplaces, modern labor practices, and a balanced relationship between employers and employees, potentially reshaping the job market and boosting the country’s economy. 

As we eagerly anticipate the implementation of the Employment Law Bill, its positive impact becomes increasingly apparent, positioning Sri Lanka as an appealing investment destination. While the bill’s potential benefits are evident, it’s important to acknowledge that opinions on it vary based on individual perspectives. Public sentiment fluctuates due to personal beliefs, values, and political orientations. This diverse range of viewpoints enriches the conversation about the bill’s effectiveness and potential outcomes, underscoring the complexity of the matter. 



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