Kehelkaduvithanalage Don Dihan Ajantha Dias & M. M. Neil Priyantha vs. Blue Diamond Jewellery Worldwide PLC – SC APPEAL 104/2019-2023

In the case between Kehelkaduvithanalage Don Dihan Ajantha Dias and M. M. Neil Priyantha (Applicants) and Blue Diamond Jewellery Worldwide PLC (Respondent), the court addressed whether cessation of directorship under Article 81(2) of the Articles of Association led to automatic termination of employment, and whether the actions of the respondent constituted constructive dismissal. It was held that removal from directorship does not, by itself, terminate employment when considered with the relevant Articles, and that the continued payment of salaries and statutory contributions evidenced an ongoing employment relationship. The Labour Tribunal’s award for constructive termination was upheld, and the High Court judgment was set aside, reaffirming the principle that directorship and employment