Arpico Homes Ltd vs Arangalage Sandya Damayanthi – SC APPEAL 46/2020-2024

In the case between Arangalage Sandya Damayanthi (Applicant) and Arpico Homes Ltd, Richard Peiris & Company PLC (Respondents), the Court addressed whether the termination of the Applicant’s employment was justified based on her alleged breach of exclusivity clauses (Clauses 15(a) and 15(c)) in her employment contract by engaging in private notarial work during office hours without prior consent. It was held that, although a breach of the contractual provisions was established, the measure of termination was disproportionate to the nature of the misconduct. The Court reaffirmed the principle that proportionality in disciplinary actions must be observed, and that not all breaches of exclusivity necessarily warrant dismissal absent aggravating circumstances. Reliance was placed on the analysi