United Tea, Rubber and Local Produce Workers’ Union vs Hanwella Rubber Products Limited :Employee’s Refusal to Transfer Leads to Justified Termination
A recent judgment delivered by the Hon. President of the Labour Tribunal, Awissawella, reaffirmed an employer’s right to enforce contractually valid transfers and to take disciplinary action where appropriate. The case was filed by the United Tea, Rubber and Local Produce Workers’ Union against Hanwella Rubber Products Limited, where the applicant challenged the termination of his employment following his refusal to accept a transfer. The termination was based on multiple grounds, including the employee’s refusal to accept a lawful transfer, a distinct act of disobedience, and unbecoming of an employee holding the post in the company and thereby breach the trust and confidence reposed on the employee. Referring to the principles laid down in Ceylon Estate Staff Union v. Superintendent and Others, the Tribunal held that although an employee has the right to respond to a proposed transfer, that right is subject to limitations defined by the employment contract. The Tribunal noted that the transfer in question was neither mala fide nor contrary to the terms of employment and did not involve any change in the conditions of service. Therefore, it was held to be just and equitable. In light of the applicant’s refusal to comply with the transfer, along with the distinct charges of disobedience and breach of confidence, the Tribunal found the termination to be legally valid and justified.
