Hapugastenna Plantations PLC vs. R. A. Gunatilaka – SC Appeal 205/2017-2025

In the matter of Hapugastenna Plantations PLC and R. A. Gunatilaka, the court addressed the issue of whether retirement at a mandatory age constitutes constructive termination of services and the Labour Tribunal’s jurisdiction in such matters. It was held that retirement, when accompanied by prior notice and the payment of gratuity, does not amount to ‘termination of services’ under Section 31B (1)(a) of the Industrial Disputes Act, thereby precluding Labour Tribunal jurisdiction. The decision reaffirmed the principle that there is no legitimate expectation of continued employment beyond the mandatory retirement age for non-essential personnel, especially when company policy dictates re-employment on a contract basis only for essential positions. This decision relied on Section 31B (1)(a)