INSTITUTE OF TECHNOLOGICAL STUDIES V. COMMISSIONER OF LABOUR AND OTHERS

INSTITUTE OF TECHNOLOGICAL STUDIES V.
COMMISSIONER OF LABOUR AND OTHERS

COURT OF APPEAL
SATHYA HETTIGE PC. J. P/CA
GOONERATNE. J.
CA 970/97
SEPTEMBER 11TH,2009

Termination of Employment (Sp.Prov) (TEWA) Act No. 45 of 1977 as amended - Section 2, Section 6, Section 6A - Closure of business? Industrial Disputes Act - Section 3 (1),Section 48 - Comparison - Closure of any section, branch or business - within Section 6A?

The petitioner sought to quash the order granting compensation to the workmen under Section 6A TEW Act on the basis that, there was no closure of the business and the compensation granted was excessive.

The respondents who were security personnel employed with the petitioner Company were unilaterally transferred to a security company which took over the security of the petitioner company. The workmen protested and complained to the Commissioner. The Commissioner of Labour after holding that, there was a closure of a business, and acting under Section 6A granted compensation.

Held

(1) Unilateral discontinuance of the 3 workmen in the security division would constitute constructiv

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