Commercial and Industrial Workers’ Union vs Unilever Ceylon Ltd. – CA WRIT APPLICATION NO: 548/2010-2013

In Commercial and Industrial Workers’ Union v. Unilever Ceylon Ltd. and Others, the court addressed whether a reduction in annual salary increments, withholding of service increments, and reduction of annual leave for 802 employees of Unilever Ceylon Ltd. was justified due to participation in a strike from 5th May 1998 to 20th May 1998. It was held that the employer’s actions were permissible under the relevant collective agreement, as the period of strike was expressly agreed to be treated as no-pay leave by a memorandum of settlement. The principle established was that contractual commitments arising from settlement agreements will be enforced where the parties have designated the period as ‘no-pay,’ thereby triggering corresponding consequences for increments and leave under the collect