Informal economy

The working conditions of home-based workers in Sri Lanka: A literature review

Desk study to identify the nature and extent of home-based work in Sri Lanka, specifically with respect to workers in micro and small enterprises, in the lower tiers of national and global supply chains

This desk review identified specific sectors, the nature and types of home-based work in them, their geographical areas, and connections with global/domestic supply chains. In Sri Lanka, most home-based workers are engaged in the production of traditional goods or work in the garment sector. Literature related to working and living conditions, remuneration, violence in the world of work, informality and occupational health and safety issues were reviewed.

The most critical issues faced by the home-based work sector in Sri Lanka are unsatisfactory working conditions, low wages, the lack of social security coverage, no coverage under labour laws, and risks associated with home-based work and harassment, especially faced by women workers.

In Sri Lanka, it is not possible to get precise estimates of home-based workers as a broad group because there are no specific questions related to place of work in national statistics and the labour force survey. Also, it is difficult to distinguish between home-based workers – who are “homeworkers” (part of the supply chains and receive outsourced work) and those who are “own-account” independent workers (who sell their produce directly to the market) – as the data and statistics available do not distinguish between the two.

Sri Lankan labour laws do not cover homeworkers or own-account workers working from home in a specific manner, and they remain outside legal coverage and labour law protection. Legislation designed specifically for home-based workers or specific inclusion in existing legislation is also needed to protect them. Sri Lanka has not ratified the ILO’s Home Work Convention, 1996 (No. 177).

Raising awareness among home-based workers about the importance of understanding the calculation of piece rate wages, maintaining quality standards, and the possible certification of their skills, is also essential to ensure that they receive the payment they deserve, and to help them link with global and domestic supply chains.