Year-End HR Readiness Checklist: 20 Items to Close by Dec 31

Five phases, twenty tasks. Tick them off as you go, or print the page and use it on paper.

The 30-second version

Leaving year-end tasks to the last minute leads to confusion, inaccurate records and a messy start to January. Work through five phases:

Records: are employee files complete and secure?
Leave and attendance: do the balances match reality?
Payroll: are salary, deductions, EPF and ETF reconciled?
Contracts and compliance: what expires, renews or falls due?
Performance and planning: are reviews closed and next year mapped?

Dec 31 is your internal closing date, not every statutory deadline.

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Before you start: Dec 31 is not a universal deadlineFor businesses in Sri Lanka, EPF, ETF, tax and other employment obligations each have their own payment and reporting schedules. Keep a separate schedule of statutory deadlines so year-end preparation does not cause missed dates.

Phase 1

Review employee records and documentation

Accurate records support payroll, communication, workforce planning and employment documentation.

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1Verify personal informationFind outdated contact details, addresses and emergency contacts. Request updates and reflect them in HR records.
2Check employment documentsConfirm appointment letters, agreements and job descriptions are on file. Chase anything missing.
3Review emergency contacts and key detailsCurrent information helps HR respond when an employee needs help or something unexpected happens.
4Organise and secure personnel filesClassify documents, limit access to authorised people, and remove unnecessary duplicates in line with your retention and data protection practices.

Phase 2

Reconcile leave and attendance records

Incomplete records cause disagreements, wrong leave calculations and friction when time-off requests arrive next year.

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5Verify annual leave balancesCompare recorded balances with approved requests and attendance. Investigate gaps and update the HR system.
6Review pending leave requestsFind applications awaiting approval or clarification. Work with managers and employees to settle them before the year closes.
7Check attendance and working-time recordsReview missed entries, overtime and other working-time data. Fix errors with supervisors before the data feeds payroll or reporting.
8Review leave policies and carry-forwardCheck policies are clearly communicated and consistently applied. Review carry-forward arrangements against contractual and statutory requirements.

Do not assume leave expires on Dec 31Leave entitlements and carry-forward depend on applicable employment legislation, contracts and your policies. Verify the requirements before adjusting any balance.

Phase 3

Complete payroll and financial checks

Wrong salary data, unresolved deductions or incomplete contribution records hurt employees and create extra work for HR and finance.

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9Reconcile salary recordsCompare payroll with approved salary changes, employee details and payment information. Resolve discrepancies before finalising the period.
10Review allowances, deductions and outstanding paymentsCheck allowances, overtime, deductions and reimbursements. Confirm approvals and supporting documents exist.
11Verify EPF and ETF recordsCompare payroll with EPF and ETF payment records. Check employee details, contribution calculations and payment acknowledgements for gaps or inconsistencies.
12Organise payroll and tax documentationKeep salary records, payroll reports, payment confirmations and tax documents in order. Review employer responsibilities under Sri Lankan tax requirements and prepare for reporting and certificate deadlines that may fall next year.

Phase 4

Review contracts and compliance responsibilities

Surface upcoming renewals, unresolved employment matters and responsibilities that need attention.

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13Identify contracts requiring renewalSpot agreements nearing expiry. Talk to managers and employees early about renewal, extension or another arrangement.
14Complete pending probation reviewsFind probations ending soon or still under review. Collect supervisor feedback, document the assessment and communicate the decision.
15Review HR policies and workplace proceduresCheck handbooks, leave, attendance and disciplinary guidelines for needed updates. Get revisions approved and communicated.
16Review employment compliance responsibilitiesLook for outstanding obligations, required records or pending admin matters. Review Sri Lankan labour requirements and keep a separate schedule of statutory deadlines.

Phase 5

Close performance reviews and prepare for the new year

Finish outstanding performance conversations and set HR priorities so January starts with a clear plan.

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17Complete pending performance appraisalsFind employees with unfinished reviews. Work with managers to gather feedback, discuss achievements and address improvement areas.
18Update performance recordsDocument appraisal results, development discussions and agreed objectives. They support future reviews, training decisions and workforce planning.
19Identify training and development needsUse manager and employee feedback to spot skill gaps. Prepare a training list for next year's learning and development planning.
20Prepare the HR workforce planReview expected recruitment, employee movements, departmental needs and organisational changes. Agree HR priorities with management and draft an initial plan.

What happens when year-end tasks are left unfinished?

Problems roll into the new year. A structured closing process helps you find them early, assign owners and keep a clear record of open actions.

Inaccurate employee recordsMay affect payroll administration.
Unresolved leave balancesCan lead to disagreements with employees.
Delayed contract reviewsMay create avoidable staffing difficulties.
Missing documents and incomplete contribution recordsMake internal audits and compliance reviews harder.

Quick FAQ

Why should HR teams complete a year-end checklist?

It helps you review employee records, payroll information, leave balances, contracts and performance documentation, and makes outstanding responsibilities easier to spot before the new calendar year begins.

Is December 31 the statutory deadline for all HR and payroll responsibilities in Sri Lanka?

No. December 31 is a useful internal closing date, but EPF, ETF, tax and other employment-related responsibilities each have their own payment and reporting schedules.

What should HR check when reviewing EPF and ETF records?

Compare employee information and payroll contribution records with the relevant payment confirmations and submitted details. Investigate and correct any discrepancies or missing records through the appropriate procedures.

Should unused employee leave automatically expire at year-end?

Not necessarily. Entitlements and carry-forward depend on applicable legislation, contracts and organisational policies. Verify the requirements before adjusting balances.

Start the year with a clean slate

Closing the year well means more than paperwork: reviewing employee information, checking payroll accuracy, resolving leave issues, maintaining documentation and not overlooking key responsibilities. Work through these 20 areas before December 31 and you enter the new year with more accurate records, clearer priorities and better-prepared HR operations.