What the Pandemic Revealed about Private Sector Loyalty to their Employees

Introduction

The worldwide COVID-19 pandemic put leadership to the ultimate test, compelling organizations to balance survival with empathy. The pandemic put a stop to industry, rocked the global economy, and put millions of private sector workers in jeopardy. The pandemic revealed whether companies genuinely valued their employees or merely viewed them as expenses. 

Some private companies in Sri Lanka, particularly those in the banking and IT industries, rapidly adjusted and provided their employees with sincere assistance. Many others, on the other hand, suffered and turned to layoffs, poor communication, and lesser compensation. Employees became nervous, disengaged, and suspicious of company promises as a result of this lack of empathy.

The outbreak revealed the vulnerability of employer-employee relationships and highlighted the gap between policy and practice. It also demonstrated that empathy and moral leadership are essential, rather than optional, for achieving sustained success. Thanks to the loyalty and motivation of their workers, companies that prioritised employee care have thrived all over the world.

Resilience is fueled by compassionate leadership, which is exemplified by the rise of multinational corporations like Google, Microsoft, and Unilever as leaders in compassionate crisis management. (Jope, 2020).

Covid-19 policy responses in other countries

Many countries introduced emergency social security policies to protect their private sector employees which was helped them to maintain financial stability and reduce their mental burden during the crisis. (unfortunately Sri Lanka did not adopt to this kind of emergency mechanism) 

India – EPF scheme: allows a non-refundable advance during the pandemic which employees need not deposit back into their EPF account.

Malaysia: Employees under the age of 55 are allowed to withdraw RM500 per month for 12 months to buy essential goods.

Singapore – Employers were supported via a job support scheme under which they received a 25% cash grant on the monthly wages of each employee who is part of the Central Provident Fund.

Brazil: The government increases withdrawal limits from FGTS—a fund that provides account-based cash benefits to employees upon termination of employment for any reason (Abayasekara, 2020).

Employee protection: Legal framework in Sri Lanka

Employees are covered by:

1.      Shop and Office Employees Act

2.      Industrial Disputes Act (IDA)

3.  Termination of Employment of Workmen act (TEWA)

However, these laws were not intended to address crisis situations.

Therefore, many employees lost their jobs without any benefits. 

The industries that were most affected by the COVID-19 pandemic in Sri Lanka include tourism, apparel and textile manufacturing, construction, transportation, and small and medium enterprises (SMEs) (NHRCD, 2020).

Social Security: Private sector employees are entitled to EPF and ETF benefits. But, during the crisis, early withdrawals were not permitted, like in other countries mentioned above.

Wages and job security: during the pandemic, the Department of Labour unofficially indicated that they would not object to employers paying only basic salary or half salary. Later they published that the minimum pay should be Rs. 14500. However, they were unable to issue any official statements regarding salaries and wages during the pandemic.  

Workplace safety: Covid-19 was not included as an occupational disease under the Workmen’s Compensation Ordinance; it was difficult to arrange compensation claims.  Additionally, during and after the pandemic, government sector pregnant mothers were given special consideration and allowed to work from home. However, in the private sector, the guidance was not widely communicated; it was merely advised and legally enforced. Therefore, some private organizations ignored the recommendations due to operational reasons. 

Work-from-home arrangements: the ‘work-from-home’ concept was not addressed in existing labour law. Therefore, it took place by employer-employee mutual agreement. But, were the expenses for employees’ internet usage and communication expenses was reimbursed?

 

Recommendation

• During the crisis, there should be a mechanism to withdraw EPF/ETF 
• Employers should facilitate employees to withdraw the above statutory benefits without discontinue their ongoing service.
• Existing labour laws need to be revised and updated.
• Department of Labour needs to stand in more genuinely with stronger manner to support employees. 

Conclusion

The lesson for Sri Lanka's private sector is clear: company strategy must prioritise employee well-being rather than focusing solely on crisis management.

In the end, COVID-19 served as a mirror reflecting the true human aspect of businesses worldwide.
It was demonstrated that how employers handle their employees in times of crisis reveals their true selves.

Reference 

Jope, A. (March 18, 2020) unilever-arabia Unilever announces Covid-19 actions for all employees Available at: https://www.unilever-arabia.com/news/2020/unilever-announces-covid-19-actions-for-all-employees/. [Accessed: 08 November 2025]

 Abayasekara, A. (December 14, 2020) Talking economics Protecting Jobs and Enterprises during crises: How can Sri Lanka respond better? Available at: https://www.ips.lk/talkingeconomics/2020/12/14/protecting-jobs-and-enterprises-during-crises-how-can-sri-lanka-respond-better/. [Accessed on November 11, 2025]

 NHRDC, 2020 DCS Quarterly Labour Force Survey report and Central Bank Annual Report (2019) and NHRDC survey (2020). Available at https://nhrdc.gov.lk/nhrdc/index.php/contact-us?option=com_content&view=article&id=5&Itemid=3&lang=en