R.H.R. De Silva vs. Sri Lankan Catering (Private) Limited – SC APPEAL 156/2017-2024

In the case between R.H.R. De Silva and Sri Lankan Catering (Private) Limited, the court addressed the issue of whether the employee held a legitimate expectation of continuing employment until the age of 60 amidst conflicting retirement policies and practices. It was held that, although company practices supported a legitimate expectation of possible extension, the Labour Tribunal’s award of two years’ compensation was excessive. The revised award limited compensation to one year’s salary, reaffirming the principle that while discretionary powers in extending employment must be exercised fairly, compensation must reflect actual entitlement in line with established legal standards. This decision relied on the analysis of policy documents, evidence of company practice, and relevant preceden