Ceylon Bank Employees’ Union vs Hatton National Bank PLC – SC APPEAL NO. 75/2012-2021
In the case between Ceylon Bank Employees’ Union (on behalf of B. D. Niroshan) and Hatton National Bank PLC, the court addressed the issue of whether the dismissal of a bank employee, accused of cheque-related misconduct and breach of internal rules, was justified, and whether compensation was due under statutory provisions including Section 31B(6)(c) of the Industrial Disputes Act. It was held that the termination was legally valid and no compensation was owed, reaffirming the principle that grave misconduct in banking, particularly conduct that undermines public confidence, precludes reinstatement and compensation. The decision relied on established authorities concerning employment misconduct and on statutory construction, emphasizing that upholding standards of probity in banking outwe

