An Analysis of Sri Lankan Legal Framework on Termination of Employment due to Redundancy

The term redundancy has become a household term during the post Covid era, due to the large number of layoffs and business closures. However, the loss of employment is of big concern to the world economies as it creates social unrest and economic downturn. Thus, termination due to redundancy has been addressed both on legal terms and on the economic front as it has already spread to government sector jobs which were once recognized as the most secured employment sector. When loss of employment occurs in one country it can have major impact on brain drain and future economic revival. Further, redundancy payments such as golden handshakes are costing more for the businesses than anticipated, which in turn would spell bad for the business at the end as it not only loses their experienced and competent workforce but much needed funds as well. As unemployment rises due to redundancy the effected Former workers need to start from the scratch as they might lack the expertise required by the new job opportunities. Therefore, this research tends to focus on the issue of termination of employment due to redundancy. First the researcher conducted a field survey among selected experts of the field to identify what factors leads to termination due to redundancy. Further, the researcher observed and studied on Sri Lankan laws relating to the subject matter and focused on the UK laws and standards on redundancy. Through conducting a comparative analysis on both local and foreign context, the researcher was able to identify the loopholes and areas to be developed in local context. Finally, the researcher made certain recommendations to lower or to rectify the issue of termination of employment on redundancy grounds and to improve the available compensation schemes.