Ceylon Petroleum Corporation vs Commissioner of Labour and 02 others – CA APPLICATION NO.868/08-2012

The case between Ceylon Petroleum Corporation and the Commissioner of Labour (Department of Labour, Colombo 5) addressed whether an order directing the petitioner to pay gratuity, calculated for a period during which the 3rd Respondent was not in active service, was lawful under the Payment of Gratuity Act. The court held that the service of the 3rd Respondent was to be treated as continuous despite a termination and re-employment, reaffirming the principle that continuous service may include periods previously interrupted if subsequently validated by a competent authority. This decision relied on the interpretation of statutory provisions under the Payment of Gratuity Act, emphasizing that orders by statutory bodies determining employment status can render service continuous for the purpo