In Sri Lanka, employees are entitled to paid annual leave under the Shop and Office Employees Act. The minimum entitlement is 14 days for employees with less than five years of service, increasing to 21 days for those with five or more years.

Statutory entitlement

14 days of annual leave for less than 5 years of service. 21 days for 5 or more years of service.

Eligibility

Employees must have worked for at least one year to be entitled to the full annual leave entitlement.

Employer obligations

  • Grant annual leave as per the statutory minimum (14–21 days based on service).
  • Pay the employee's full wages during annual leave.
  • Pay for unused annual leave on termination of employment.

Employee rights

  • Right to 14–21 days of annual leave based on service.
  • Right to be paid at full wages during annual leave.
  • Right to paid leave payout on termination.

Common pitfalls

  • Not increasing leave after 5 years — the entitlement increases from 14 to 21 days.
  • Not paying for unused leave on termination — this is a statutory requirement.

How annual leave accrues

After one year of service, the employee is entitled to 14 days of paid annual leave. After 5 years, this increases to 21 days.

Frequently asked questions

Can annual leave be carried forward?

Unused annual leave can be carried forward by mutual agreement.

Sources

This page is provided for general guidance and does not constitute legal advice. Always check the cited primary source for current law before making employment decisions.