Distilleries Company of Sri Lanka vs Deputy Commissioner of Labour – sllr 2007 volume 1 page 361

The case between Distilleries Company of Sri Lanka and the Deputy Commissioner of Labour addressed the issue of whether a surcharge on gratuity under the Payment of Gratuity Act (as amended by Act 62 of 1992) is imposed even when gratuity has been paid by the employer within the legislatively prescribed period. It was held that liability for payment of the surcharge attaches from the due date of the gratuity, regardless of subsequent reinterpretation of the statute. The principle reaffirmed is that statutory obligations related to gratuity and the associated surcharge begin at the point of legal liability, not at a later judicial clarification. Relevant statutory provisions, specifically Section 5(1) and Section 5A of the Payment of Gratuity Act, were relied upon, and it was emphasized tha