Garment factory ordered to compensate Rs 26.6 m to employees

Mahinda P.Liyanage Galle Daily News Correspondent

The management of a garment factory in Niyagama, Talgaswala, Galle was ordered to pay Rs 26.6 million as compensation to a group of 418 garment employees whose employment had been terminated in 2009, 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 for each employee of a group of 224 applicant respondents who were at the final phase of the case.

The High Court Judge executed his order in respect of an appeal filed by Paradigm Clothing (Pvt.) Ltd pleading for the nullifying of 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 against malicious transfer orders served on them on April 8, 2009.

The garment workers in their plaint had cited the management of the garment factory for constructive termination of their services in the guise of transferring them to other two 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 an order guaranteeing the above compensation. Accordingly, 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 factory.

The Galle Labour Tribunal’s order had been challenged by the appellant firm at Provincial High Court in Galle.

However, Galle High Court Judge in his order substantiated that the Labour Tribunal chairman had not erred in his judgment awarding the compensation. Counselor Thusara de Silva appeared on behalf of the employees both in Labour Tribunal and High court.

Attorney at law M Adomali looked after the interest of the garment company.