Continental Apparels (Pvt) Ltd. v. B.R.K. Meda & 153 Others – CA APPLICATION NO.344/08-2012

The case between Continental Apparels (Pvt) Ltd. (Plaintiff) and the Commissioner of Labour, B.R.K. Meda, D.S. Edirisinghe, and selected affected workers (Defendants) addressed whether the petitioner’s relocation of its factory and resultant transfer of employees constituted a bona fide transfer or an effective closure of its business under the Termination of Employment (Special Provisions) Act. It was determined that the petitioner’s actions amounted to a closure of business necessitating compensation to employees, not a lawful intra-group transfer. The court further held that compensation should be recalculated according to the more recent Gazette No.1384/07 (15th March 2005) rather than the earlier formula. This decision reaffirmed the principle that a closure disguised as a transfer at