Associated Newspapers of Ceylon Ltd. vs Commissioner of Labour and Others – sllr 2004 volume 3 page 407

The case between Associated Newspapers of Ceylon Ltd. (petitioner) and the Commissioner of Labour and others (respondents) addressed whether commissions earned by an employee should be considered in computing gratuity under the Payment of Gratuity Act No. 12 of 1983, as well as the proper determination of the period of service and the differentiation between piece rates and commissions. It was held that commissions are not to be included in the wage calculation for gratuity, reaffirming the principle that only the basic salary, allowances, and piece rates, not commissions, form the basis for such computation. This decision relied on the statutory definitions and legislative intent of the Payment of Gratuity Act, emphasizing the legal distinction between fixed piece rates and variable commi