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Case Studies Based on Practical Experience

EOR Services for a Dubai Company Hiring Employees in Sri Lanka

Helping a Dubai Business Employ Sri Lankan Talent Without Establishing a Local Entity

A Dubai-based company wanted to build a team of professionals in Sri Lanka to support its growing operations. The company had identified the talent it required but did not have its own Sri Lankan legal and employment infrastructure.

Rather than establishing a local company solely to employ a small group of professionals, the organization partnered with Formix for an Employer of Record solution in Sri Lanka.

Formix became the local employing entity for the relevant workforce arrangement, allowing the Dubai company to retain day-to-day management of its employees while Formix handled the employment administration and statutory responsibilities in Sri Lanka.

The Challenge

The client needed to employ Sri Lankan professionals while operating from Dubai. The challenge was not recruitment—the company already understood the roles and workforce requirements. The challenge was establishing a compliant employment structure without creating an entirely new local corporate and HR infrastructure.

The company needed employment contracts, payroll, statutory contributions, employee records, leave administration, HR support, and appropriate processes for managing the employment relationship.

It also needed confidence that employees would receive the same structured employment administration expected from a locally established employer.

Formix Became the Local Employer

Through the EOR arrangement, the relevant employees were formally employed through Formix’s local employment structure while continuing to work for the Dubai company’s business operations.

The Dubai company retained control over the employees’ daily responsibilities, work allocation, performance expectations, schedules, and business objectives. Formix managed the local employment responsibilities surrounding the workforce.

This allowed the client to operate its Sri Lankan team without independently establishing a Sri Lankan company solely for employment purposes.

Transitioning Existing Employees Into the EOR Structure

A particularly important component of the engagement was the ability to support existing personnel who needed to transition into a formal EOR employment arrangement.

Rather than simply changing the name appearing on a payslip or informally moving employees onto Formix’s letterhead, the process required proper employment documentation and coordination of the relevant employment transition.

Where personnel are transferred, Sri Lankan Labour Department guidance emphasizes continuity of statutory rights, which makes proper documentation and employment administration particularly important.

Formix coordinated the employment transition so the relevant employee documentation, payroll records, statutory requirements, and HR administration could be managed under the EOR structure.

EPF and ETF Administration

For employees covered by Sri Lankan employment requirements, statutory contributions form an important part of the EOR responsibility.

Formix manages the applicable EPF and ETF administration as part of the local employment structure. Sri Lanka’s Department of Labour states that EPF requires a minimum 8% employee contribution and 12% employer contribution, while the Employees’ Trust Fund Board states that ETF is an employer contribution of 3% of monthly total earnings.

The EOR structure means the Dubai company does not have to independently establish the local processes required to calculate, administer, and remit these employment-related contributions.

For employers with 15 or more employees, the ETF Board also currently requires electronic remittance and monthly return submission for contributions from July 2026 onward.

Payroll, Leave and HR Administration

Formix manages the ongoing employment administration surrounding the Sri Lankan workforce. This includes payroll coordination, employee records, statutory contribution administration, leave management, HR documentation, and employee support.

The Dubai company remains involved in operational management and provides the relevant payroll and employment inputs, while Formix manages the local employer-side processes.

This creates a practical division of responsibilities: the client manages the work; Formix manages the local employment infrastructure.

Managing the Full Employee Lifecycle

The EOR relationship extends beyond monthly payroll. Formix supports the employee lifecycle from onboarding and employment documentation through ongoing HR administration and, where required, compliant offboarding.

This gives the Dubai company a single local partner for its Sri Lankan workforce rather than requiring management to coordinate separate payroll, HR, and employment administration providers.

The Outcome

Formix enabled the Dubai company to establish and manage a Sri Lankan workforce through an EOR structure without requiring the client to immediately establish its own Sri Lankan employment infrastructure.

The company gained a structured local employment solution covering payroll, EPF, ETF, HR administration, employee documentation, and ongoing workforce support while retaining direct control over the employees’ day-to-day work.

The engagement demonstrated how EOR services for Dubai companies hiring in Sri Lanka can provide a practical route to international workforce expansion while reducing the administrative complexity of establishing a local employment operation.

Why Formix for EOR in Sri Lanka

Formix provides Employer of Record services in Sri Lanka for international companies hiring and managing local employees. Our EOR model supports employment documentation, payroll, EPF and ETF administration, HR support, onboarding, employee records, leave administration, and offboarding.

For Dubai companies hiring employees in Sri Lanka without establishing a local company, transferring an existing workforce into a structured EOR arrangement, or managing Sri Lankan employees through an international business, Formix provides a comprehensive local employment solution backed by a global network spanning more than 150 countries.

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