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Labour Tribunal awards Rs. 800,000 to former Redd Barna employee

by Kumar Wethasinghe

President Colombo Labour Tribunal M. Sridharan awarded Rs. 805,896 compensation in lieu of reinstatement to the former cashier/senior secretary of Redd Barna Sri Lanka. The Tribunal held that Redd Barna had acted with prejudice when the applicant refused to accept a Rs. 310,632 retrenchment package forced on her by them.

The applicant, Miss G. S. Ranasinghe of Wellampitiya told the Tribunal that she joined Redd Barna in 1980 as a clerk and was promoted as cashier/senior secretary in 1996 and worked in Colombo.

In mid 1996, she was offered a retrenchment package. In December '96, she was informed not to report for duty in view of a pending ruling by the Commissioner of Labour.

Later in April '97, the Redd Barna unconditionally withdrew their application made to the Commissioner of Labour and requested the applicant to resume duties with a mala fide transfer to Matale.

When she failed to report to Matale notice of vacation of post was effected on her in May 1997.

In its order, the Tribunal cited "If an unjustified and unwarranted order of transfer results in the termination of service of a workman, then the Industrial Adjudication is not helpless so as to extend its arm of justice to meet out a particular circumstance or situation."

"Transfer must not be made by way of punishment that is to say there must not be colourable exercise of power of transfer of a workman, so as to victimise him. If the appointment was made only to a particular place. The particular employee cannot be transferred out from that place."

(2 SLR part 12 page 314-1998)

The President of the Tribunal, M. Sridharan said "When I evaluate the entire evidence and the circumstances of this application, I am of the view that the Respondents was prejudiced against the applicant for not accepting the retrenchment package. Consequent to this, transfer order was made and the said transfer is mala fide.

And I hold that the services of the applicant was constructively terminated by the Respondent. Therefore, the applicant is entitled for relief by this Tribunal.

Applicant in her application prayed for reinstatement with back wages. When I consider the circumstances of this application, applicant alleged victimisation against the Respondent. Under these circumstances order of reinstatement would create further disputes between the applicant and the respondents.

Therefore, I am not inclining to award reinstatement. I am of the view that the proper relief would be to award compensation in lieu of reinstatement.

Considering the long period of service and the age, future prospects of employment in similar nature to the applicant and also the package offered by the respondent, I award 6 years salary by way of compensation in lieu of reinstatement.

The last drawn salary of the applicant was Rs. 11,193. Therefore, Rs. 11,193 - x 72 = 805,896.

I order the 1st Respondent to deposit this total sum of Rs. 805,896 with the Assistant Commissioner of Labour, Colombo North. Thereafter the applicant is free to withdraw this sum. The applicant is also entitled to statutory due if any.

Ajantha Athukorale with L.K.M. Perera appeared for the applicant.

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