Employers to be required to deposit bond before filing cases under TEWA and IDA

• Cabinet approval to amend TEWA and IDA 
• Move to prevent employees from waiting decades for payments

Cabinet has approved mandating employers deposit a bond before initiating legal action to terminate employees or in cases of industrial disputes to protect workers, an official said yesterday. 

Cabinet Co-Spokesman Dr. Ramesh Pathirana said Cabinet had approved the proposal tabled by Industries Minister Bandula Gunawardena to amend the Termination of Employment of Workmen (Special Provisions) Act. No. 45 of 1971 (TEWA) and the Industrial Disputes Act No. 43 of 1950 (IDA). 

“Under the proposed amendments, court proceedings can only be started after depositing a bond amount when employers institute legal action to terminate employees or in instances of industrial disputes. This decision was taken because employees often have to wait 15-20 years for court cases to be resolved and by that point the employers have died, left the country and in some instances the company has gone bankrupt,” he said. 

Dr. Pathirana pointed out that under this system, once the case was resolved, the employee will have access to the bond, which improves their income security. 

The new provision will be valid if employers decide to take legal action to terminate employees against the orders of the Commissioner General of Labour under the Termination of Employment of Workmen (Special Provisions) Act No.45 of 1971 or a decision of the Magistrate Court to enforce those orders or against a decision of an Industrial Arbitrary Tribunal or Industrial Court under the provisions of the Industrial Disputes Act No. 43 of 1950.