SL SC | Termination of employee justified where he did not act with full honesty; Court allows appeal by employer

Supreme Court of the Democratic Socialist Republic of Sri Lanka: A Full Bench of Sisira J. de Abrew, Murdu N.B. Fernando and S. Thurairaja, JJ., allowed an appeal filed in terms of Article 154(P) of the Constitution read with Section 31-DD of the Industrial Disputes Act (as amended) and Section 9 of the High Court of the Provinces (Special Provisions) Act No. 19 of 1990.

The Applicant-Respondent, in this case, was the Manager attached to Thanamalwila Branch of Uva Development Bank.  His services were terminated by the Bank and there were several charges levelled against him at the domestic inquiry, the President of the Labour Tribunal had decided that the Applicant-Respondent of the said Bank had not acted with 100% honesty in dealing with affairs of the bank, subsequently an appeal was filed in the High Court where they had affirmed the order of the Labour Tribunal who had held that the termination of services of the Applicant-Respondent was unjustified and had ordered reinstatement and  ½ back wages. Being aggrieved by which the Employer-Appellant had filed the instant petition.

The Court while allowing the appeal relied on the judicial decisions of National Savings Bank v. Ceylon Bank Employees Union, 1982 (2) SLR 629 and Bank of Ceylon v. Manivasagasivam, 1995(2) SLR 79, held that the President of Labour Tribunal who stated that the Manager had not acted with 100% honesty when he was dealing with his duties cannot be ordered to be reinstated in the same bank with back wages. Thus, the decision of both the President of the Labour Tribunal and the High Court Judge were held to be wrong and were set aside making the termination of the Applicant-Respondent justified. [Uwa Development Bank v. Ceylon Bank Employees Union, SC Appeal No. 39 of 2016, decided on 02-07-2019]

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