Paradigm Clothing (Private) Limited vs. Mahagamage Chandramadu and others – SC APPEAL NO.106/2014-2014

In the case between Paradigm Clothing [Private] Limited and its blue-collar workers, the court addressed whether the employer’s mass transfer of employees, conducted during a public holiday and enforced by injunctions and warning notices, amounted to constructive termination of employment. It was determined that the transfers were carried out in a manner that was unjust, lacked bona fide intent, and failed to properly consider either employee welfare or procedural fairness. The findings established that the employees’ claims of constructive termination were substantiated and that the employer’s conduct was motivated by suspicion rather than evidence, thereby breaching principles of natural justice. Compensation awarded to the employees was upheld, subject to deductions for accrued interest