Ceylon Bank Employees Union vs Hatton National Bank, PLC – SC APPEAL NO. 22/2016-2016

In the case between Mrs. K.L.S. Mendis (represented by the Ceylon Bank Employees Union) and Hatton National Bank, PLC, the court addressed whether the termination of Mrs. Mendis’s employment was justified based on allegations of fraud and misconduct. It was held that the evidence—including an admission by Mrs. Mendis regarding unauthorized account transfers—supported the Bank’s decision to terminate her employment, and it was further determined that no credible evidence of duress was established. The court reaffirmed the principle that an employer may lawfully terminate an employee where misconduct leads to loss of trust and confidence, as supported by documentary and testimonial evidence. Reliance was placed on the High Court’s finding and established precedents, highlighting the necessit