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Abstract
This paper aims to explore how the existing legislations in Sri Lanka protect virtual employees and define their terms, conditions, rights and obligations of employment as well as identify the instances virtual employees face discrimination and unfair treatment by their employers. Employing in-depth interviews with 30 different types of virtual employees along with employers, and other key informants such as officials of the Department of Labor, employer’s organizations, employee trade unions, and Judiciary, the authors identified how even the basic rights of many virtual employees are not protected, where employers mainly use their discretion to decide the terms and conditions of employment. It was specially observed how virtual employment is misused by employers and how it is used to evade employers’ legal responsibilities in a center stage of inadequate legal coverage, poor government monitoring, and employee unawareness. Given the fact that the virtual employees are same as normal employees, protection of their rights through necessary changes to the labor laws, balancing flexibility and protection, is recommended.