Gratuity is a right for employees based on faithful service, and inquiries must be conducted by Labour Tribunals for forfeiture claims due to misconduct.

The Petitioner instituted this application by petition dated 15.11.2022 seeking inter alia writs of Certiorari to quash the Award dated 25.09.2020 marked P17 and the Certificate dated 02.07.2021 marked P2.

The facts of this case are briefly as follows:

The Petitioner, Lanka Milk Foods (CWE) Ltd is a company engaged in the production and distribution of dairy products which is duly incorporated under the Companies Act No. 7 of 2007. The Petitioner states that the 4th Respondent joined a subsidiary of the Petitioner Company, Lanka Diaries (Pvt) Ltd, on 28th April 1998 as a Sales Representative. Thereafter, by letter dated 22.09.1999, the 4th Respondent was transferred to the Petitioner Company with effect from 01.06.1999 and on 27.11.2009, the 4th Respondent was promoted to grade ‘Non-Executive Grade II’. The 4th Respondent worked in the Petitioner Company until his termination on 28.01.2019.

The Petitioner states that, around September 2018, the Petitioner received various complaints about the misappropriation of Company money and/or goods and fraudulent practices engaged by the Area Sales Managers, Distribution Agents and Sales Representatives. Upon inquiries, it was revealed that the 4th Respondent also had aided and abetted such fraudulent activities.

The Petitioner further states that while the investigations were ongoing, the 4th Respondent submitted a letter on 31.12.2018 marked P6 to the Director Operations of the Company stating his knowledge of such fraudulent activities committed by the Area Sales Manager and Distribution Agent and sought that the officers who have been involved in such fraudulent activities be punished.

The Petitioner states that the losses mentioned by the 4th Respondent were confirmed by a subsequent letter dated 02.01.2019 by a Distribution Agent.

The Petitioner avers that thereafter, investigations were initiated which revealed that the 4th Respondent has aided and abetted the fraudulent activities during the time period he was working under the said Area Manager. On these grounds, the Petitioner terminated the service of the 4th Respondent by letter dated 28.01.2019 marked as P3.

The Petitioner avers that subsequent to the investigations, it was revealed that the value of total loss incurred to the Petitioner due to the fraudulent activities of the said group of employees including the 5th Respondent amounts to Rs. 20,102,187.03.

In this context, the Petitioner has lodged complaints in the Criminal Investigation Department and the Crimes Division of the Mahabage Police Station against the said group of employees including the 4th Respondent for criminal breach of trust, criminal misappropriation, fraud, and undue enrichment.

The Petitioner states that on 29.07.2019, the Petitioner was notified of the application bearing No. 31/34/2019 filed by the 4th Respondent to the Labour Tribunal of Wattala challenging the termination of his employment by the Petitioner and seeking inter alia reinstatement or compensation in the absence of such re-instatement. This application is pending before the said Labour Tribunal.

The Petitioner states that on 19.08.2019, the Petitioner received a Notice signed by the 3^rd Respondent requesting the Petitioner to participate in an inquiry on 28.08.2019 on a purported complaint by the 4th Respondent against the Petitioner for inter alia non-payment of gratuity.

On 28.08.2019, representatives of the Petitioner participated in the inquiry and submitted that this should be resolved in the Labour Tribunal directing the 4th Respondent to file an application in the Labour Tribunal.

The Petitioner states that several correspondences were exchanged between the Petitioner and the Respondents regarding the legality of continuing an inquiry by the office of the 1st Respondent, particularly when there is an application pending before the Labour Tribunal on the same issue.

The Petitioner further states that the Petitioner participated at the inquiry of the 3rd Respondent on 09.09.2020 to determin