Record compensation awarded to garment employees

Mahinda P Liyanage, Galle Daily News corr

The management of a garment factory in Niyagama, Talgaswala, Galle was ordered to pay a record Rs 26.6 million as compensation to a group of 418 garment employees whose employment had been constructively terminated in 2009.

Counsel Thusara de Silva elaborating the High Court Judge’s order to the garment employees. Picture by Mahinda P. Liyanage

The order was made by Southern Provincial High Court Judge K. B. K. Hiruburegama yesterday.

The High Court Judge also ordered the appellant company to pay an appeal case fee of Rs 1,000 to each employee of the group of 224 applicant respondents who were at the final phase of the case.

The High Court Judge executed this order in respect of an appeal filed by Paradigm Clothing (Pvt) Ltd pleading for the nullifying the Galle Labour Tribunal order of September 24, 2010 awarding the above compensation to the group of employees who had litigated against the garment firm for malicious transfer orders served on them on April 8, 2009.

The garment workers in their plaint had cited the garment firm management for constructive termination of their services in the guise of transferring them to two other branches of the same establishment with a veiled plan to shut down the factory.

The Galle Labour Tribunal chairman after a long hearing of the case had issued his order guaranteeing the above compensation.

Each employee was entitled to receive compensation calculated at the rate of three months’ salary per each year and any part thereof out of the total period of their service in the garment company.

The Galle Labour Tribunal’s order had been challenged by the appellant firm at the Southern Provincial High Court in Galle. However, the Galle High Court Judge in his order ruled that the Galle Labour Tribunal chairman had not erred in his judgment awarding the above compensation.

Counsellor Thusara de Silva appeared on behalf of the employees both before the Labour Tribunal and SP High Court, Galle. M. Adomali, attorney- at-law looked after interests of the appellant company.