Lanka Milk Foods (CWE) PLC vs. B.KJ. Prabath Chandrakeerthi, Commissioner General of Labour – CA-WRT-433/2022-2024

In the case between Lanka Milk Foods (CWE) PLC and several labour officials and employees, the court addressed the issue of whether gratuity should be awarded or forfeited for an employee dismissed due to fraud and misappropriation. It was held that the award and certificate granting gratuity in such circumstances were illegal and ultra vires, reaffirming the principle that claims to gratuity in cases involving alleged misconduct must adhere to procedural and statutory requirements under the Payment of Gratuity Act and Industrial Disputes Act. The decision relied on established statutory law and relevant judicial precedents, emphasizing that the appropriate forum for determining forfeiture for misconduct is the Labour Tribunal, which must consider such disputes under section 31B(1)(c).

B.