Termination of Employment of Workmen Act, No.

45 of 1971

Under the Common Law, employers have the power to employ and terminate
employees whenever they want. But because of this power, there is no job security for
the employees.

Termination of Employment of Workmen Act was introduced in that situation to limit

the power that the employers had to terminate employees.

Following employees are governed by this Act.

 An employee who has worked in an institution where employing 15 or more

employees.
 Should have worked more than 180 days during the period of 12 months.
 Should be terminated the employment on the ground of non-disciplinary action.
 Should be a scheduled employee.

Every employee who is governed by the following Acts is considered as scheduled

employees.

 Employees governed by Factories Ordinance.

 Employees governed by Wage Boards Ordinance.
 Employees governed by Shop And Office Employees Act.

Section 2(1)

As per the provisions of this section, no employer shall terminate the scheduled
employment of any workman without,

(a). the prior consent in writing of the workman, or

(b). the prior written approval of the commissioner.

As per the section 2(4), any termination of the employment on any ground other than
the disciplinary termination is governed by this act.

Therefore, it is noted that the termination of employment under disciplinary ground is

not affected by this act.

St Anthony’s Hardware vs. Rnjit Kumar

Inefficiency and incompetence cannot be equated to misconduct for which punishment

by way of disciplinary action may be imposed.
[By- Sheran Dewapriya Hettiarachchi]
Satchithanandan vs. Ghanam

The Act is not applicable where the factory and headquarters were destroyed.

Brown & Co Ltd vs. Commissioner of Labour

A probationer is not entitled to relief under this Act.

Following employees are not governed by this Act.

 Employees who have worked in an institution where employing less 15

employees.
 Employees who have worked less than 180 days during the period of 12
months.
 Employees who retired or terminated.
 Government servants and local government servants.
 Employees of co-operative society.
 Employees of any local authority.
 Employer who have been terminated on any offence.

So that a termination on a disciplinary actions such as cheating, theft is not governed

by this Act.

Where an employer makes an application to the commissioner asking his written

approval regarding a termination of an employee under this act, commissioner can
take following steps,

 The commissioner may accept or reject the application.

 Decision regarding that application should be noticed in writing to the
employer and employee within 2 months.
 The commissioner can decide the wages and other benefits at a legal
termination of a workman.

The order given by The Commissioner on above matters final and it cannot be
questioned. As well as no writ applications are made against that order of The
Commission.
[By- Sheran Dewapriya Hettiarachchi]
Section 5-

Termination in contravention of the provisions of this Act, shall be illegal, null and
void, and accordingly shall be no effect whatsoever.

In that situation, an application to The Commissioner for relief should be made within
6 months of the termination.

Section 6-

Where an employer terminates the scheduled employment of a workman in

contravention of the provisions of this Act, The Commissioner may grant following
relief,

 Reinstatement of the workman with salary arrears.

 Compensation instead of reinstatement.
 Wages and all other benefits which the workman would have received if he is
not terminated.

In the event where an employer failures to pay compensations to the workman, the
workman can proceed to the Magistrate court and take the compensation with an order
of the court.

Pand Lanka Toys exports (Pvt) Ltd v. Mahinda Madihahewa

The proceedings at any inquiry may be conducted by The Commissioner in any

manner, not inconsistence with the principle of natural justice.

Wikremasinghe v. Nethasinghe

The Commissioner can reinstate a workman.

Blanka Diamonds Ltd v. Coeme

The commissioner can grant compensation.

In the present, a workman who had made an application to The Commissioner for
relief, can make an application to the labour tribunal.
[By- Sheran Dewapriya Hettiarachchi]
Termination of Employment of Workmen (Amendment) (Special Provisions) Act
No. 51 of 1988.

Section 6 B(2)-

A workman, who applied for the relief under this Act, can apply for any other legal
remedy. That is, the workman can make an application to a labour tribunal for relief.

Independent News Paper Ltd v. Commercial and Industrial Workers Union

It was decided by a 3 bench that If a workman is not satisfied with an order made by
The Commissioner, he can make an application to the labour tribunal.

By- Sheran Dewapriya Hettiarachchi

Attorney-at-Law,

BA (Sp) Hons(Sociology) J’pura

MA(Political)-Kelaniya

MA (ug)- Colombo