Sascon Knitting Company (Pvt) Ltd. v Commissioner General of Labour, Free Trade Zones & General Services Employees Union, G.M. Shiromala Gajanayake and 49 Others – SC APPEAL 52/2014-2020

In the case between Sascon Knitting Company (Pvt) Ltd. and the Commissioner General of Labour (along with associated labour authorities and employees’ representatives), the court addressed whether the transfer of employees from Sascon Knitting to San Fashions Ltd. constituted a termination of employment under the Termination of Employment of Workmen (Special Provisions) Act. It was determined that such transfers—when conducted between legally distinct corporate entities not expressly authorized by employment contracts—amounted to termination, thereby requiring compliance with statutory termination procedures. The findings established that the employment letters did not permit transfers between separate entities, and that the Commissioner General of Labour’s jurisdiction was properly exerci