Thaksala Weavers Ltd. v. Dhanawathie Perera and Others – sllr 1994 volume 3 page 116

The case between THAKSALA WEAVERS LTD. (the employer) and DHANAWATHIE PERERA (the workwoman) and others involved the issue of whether suspension without prompt action amounted to constructive termination under the Industrial Disputes Act. It was held that suspension, when coupled with failure to serve a charge sheet and unreasonable delay in initiating a domestic inquiry, may amount to constructive termination, entitling the employee to relief. The principle reaffirmed is that an employer must act in a timely manner upon raising charges, honoring the requirements of industrial justice and fair process. The judgment was grounded on relevant statutes and prior decisions, underscoring that prolonged uncertainty and inaction by the employer can constitute a de facto termination.

Grero J. — I