What Happens at a Labour Tribunal Case
An ex-employee can apply to a Labour Tribunal within six months. It hears both sides and can order reinstatement, back wages or compensation.
On this page
- Who can apply, and by when
- What a tribunal can decide
- The stages of a case
- Settlement before the case is decided
- What "just and equitable" means
- Reinstatement, back wages or compensation
- If you want to appeal
- The record that goes into a case
- Frequently asked questions
- How many Labour Tribunals are there?
- How long does an ex-employee have to apply?
- Can a case be settled before the tribunal decides it?
- What can the tribunal order?
- Can I appeal a Labour Tribunal order?
- Does the tribunal re-hear the evidence on appeal?
A dismissed workman, or their trade union, can apply to a Labour Tribunal within six months of the date of termination. Workman is the Act’s word for an employee it covers. The tribunal hears both sides, then makes the order it finds just and equitable: reinstatement, back wages, or compensation instead. There are 39 tribunals nationally, each a one-person court. This sits inside the wider map in labour law in Sri Lanka, the employer’s map of every Act.
Who can apply, and by when
A workman, or a trade union acting for a member workman, applies in writing to a Labour Tribunal. The application must be made within six months of the date of termination (Industrial Disputes Act No. 43 of 1950, s.31B(7)). This time limit applies whatever the reason for the termination, and whatever the size of the employer. See what steps must an employer follow before disciplining or dismissing an employee for how a dismissal should be handled. See do you need approval to dismiss staff in Sri Lanka for the separate consent-or-approval process under the Termination of Employment of Workmen (Special Provisions) Act (TEWA).
What a tribunal can decide
Under s.31B(1), an application can raise:
- The termination of the workman’s services.
- Whether gratuity is due, and how much, where the employer had fewer than 15 workmen on any day in the 12 months before the termination.
- Whether a gratuity forfeiture under the Payment of Gratuity Act was correctly made.
- Other matters relating to terms of employment that are prescribed by regulation.
The stages of a case
The Industrial Disputes Act sets out the tribunal’s duty, not a day-by-day timetable. It must hold “such inquiries” and hear “such evidence” as it considers necessary, then make an order (s.31C(1)). Regulations set the exact days for serving the application, and for the employer’s reply. Ask the tribunal or a labour lawyer for the current timetable in your case.
Settlement before the case is decided
The tribunal may pause its own case if it finds the same matter is already under discussion between you and the workman’s trade union. If it results in a settlement, the tribunal makes its order match the settlement’s terms (s.31B(2)(a)). The Industrial Disputes Act sets out no other settlement route. It does not say whether an unrepresented workman can settle directly with you, or how a tribunal would treat that. Ask the tribunal or a labour lawyer.
What “just and equitable” means
The Industrial Disputes Act gives the tribunal this one standard: make the order that appears “just and equitable” (s.31C(1)). It does not list factors the tribunal must weigh, and no official source supplies one either. No outcome can be predicted from the wording alone.
Reinstatement, back wages or compensation
The tribunal may order reinstatement, back wages, or compensation instead of reinstatement. This holds “notwithstanding anything to the contrary in any contract of service” (s.31B(4), s.31B(6)(c)). At an employer with fewer than 15 workmen, it can also rule on gratuity. Where a case ends in reinstatement or a payout and the employment does end, the ordinary final-pay rules still apply. See what must an employer pay on an employee’s last day.
If you want to appeal
An order of a Labour Tribunal is final, except on a question of law. That appeal goes to the High Court for the province where the tribunal sits (s.31C(3)). A further appeal lies to the Supreme Court, with leave (s.31DD(1)). This is a review of a point of law. No source says the appeal court re-hears the evidence. An employer who appeals, applies in revision, or applies for a writ must first pay security in cash (s.31C(4)). The table below sets out how much.
| If the tribunal orders | Security an employer who appeals, applies in revision, or applies for a writ must pay first |
|---|---|
| A sum of money | An amount equal to that sum |
| Reinstatement | 12 times the workman’s monthly salary or wages at the time employment ended (26 times the daily wage if daily-paid) |
| Both money and reinstatement | Both amounts above, added together |
The record that goes into a case
An appeal reviews a point of law. No source says the appeal court re-hears the evidence. The charge sheet, any warning letters, and the inquiry notes made at the time are what that factual record is built from. See what a warning letter should contain for keeping that record properly from the start.
Do this automatically in Humanised. A tribunal case is decided on the evidence put before it. Contract-aware HR software is where that record should already be. There is a free 7-day assisted trial, set up by the Humanised team on your own data.
This is general guidance, not legal advice. For a real case, speak to a labour lawyer or the Labour Department.
Frequently asked questions
How many Labour Tribunals are there?
39, each established under the Industrial Disputes Act, and each a one-person court.
How long does an ex-employee have to apply?
Six months from the date their employment ended.
Can a case be settled before the tribunal decides it?
Yes, where a trade union discussion with you results in a settlement, the tribunal can make its order match it. The Industrial Disputes Act does not describe a separate route for a settlement outside that.
What can the tribunal order?
Reinstatement, back wages, compensation instead of reinstatement, or gratuity where the employer has fewer than 15 workmen.
Can I appeal a Labour Tribunal order?
Only on a question of law, to the High Court for the province, and only after paying the security the Industrial Disputes Act sets out.
Does the tribunal re-hear the evidence on appeal?
The appeal is on a question of law. No source says the appeal court re-hears the evidence.
Was this article helpful?
Your feedback helps us improve these guides.