Mackwoods (Pvt.) Ltd. Vs. V. Kumarasinghe et al. – WRT-86/19-2023

In the case between Mackwoods (Pvt.) Ltd. and the Commissioner General of Labour, the Assistant Commissioners of Labour, several individual labour officers, and the Ceylon Mercantile & General Workers Union (CMU) representing terminated employees, the court addressed whether the cessation of employment constituted a lawful termination under Section 2 of the Termination of Employment of Workmen (Special Provisions) Act or if it amounted to frustration due to circumstances beyond the petitioner’s control. It was held that the cessation of employment was not a result of contract frustration, but an unlawful termination effected without proper statutory consent or approval. The principle reaffirmed is that employer-initiated cessation of employment amidst foreseeable financial adversity requir