This page was last updated on:
2025-11-21
Written Employment Particulars
Every employer, upon engagement of an employee, should provide him, in writing, the terms and conditions showing the name and address of the employer, contract duration, probation terms, terms of employment, employee’s remuneration and its intervals, benefits provided in sickness or pregnancy, hours of work and other bonuses and incentives.
The employment contract that does not specify its duration and or date of termination is a contract concluded for an indefinite period. The duration and the date of termination are provided in case of casual work, seasonal work, or for the performance of a specific service.
Source: §12(2) of the Labour Act 1985
Probation Period
The Labour Act specifies the maximum probationary period (single, non-renewable probationary period) as:
- One day in the case of casual work or seasonal work; or
- Three months in any other case
Either party may terminate the employment contract by providing notice period of either one week in case of casual or seasonal work or two weeks in any other case.
Section 18A under the Labour Amendment Act 2023 regulates hourly work. The newly added provision regulates contracts where workers are paid only for the hours they actually work. Such hourly contracts cannot stop the worker from doing other jobs or self-employment in the hours they’re not working for that employer.
Over any two consecutive months, the worker’s earnings under the hourly contract must not fall below the applicable minimum set under the collective bargaining agreement; if they do, the employer must top up the difference. Hourly contracts are not allowed at all if the applicable collective bargaining agreement prohibits them.
Source: §12(5) of the Labour Act 1985
Termination of Employment
To ensure fair labour practices, the Labour Act outlines various grounds and procedures related to the termination of Employment.
Employment of an employee can be terminated by mutual agreement between an employer and employee. Other kinds of termination include resignation, retirement, retrenchment, dismissal for misconduct and expiry of fixed term contract. Any termination outside these grounds is consider unfair, and the employee is entitled to reinstatement or compensation.
The employer may terminate the employment contract due to operational requirements; this is called retrenchment (collective dismissal). The employer must follow the procedure mentioned in the Labour Act in case of retrenchment. The 2023 amendment in the labour law introduced the retrenchment compensation system.
Immediate dismissal is allowed only in case of gross misconduct, which includes theft, fraud, assault, or any behaviour that damages the employer’s trust and confidence in the employee.
Regulations on Employment Security
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Labour Act 1985, last amended in 2015