Losing a job can happen very suddenly.
An employee may be called into a meeting and told:
“Your services are terminated from today.”
Another person may receive a letter saying that employment has been terminated for misconduct.
Someone else may be told that the company is restructuring and that the position no longer exists.
A common question is:
“Can my employer just do this?”
There is no single answer for every termination.
Whether a termination can be challenged may depend on why the employment was terminated, what procedure was followed, what evidence exists, what type of employment relationship was involved, and what legal remedy is available.
It is also important to understand something from the beginning:
Termination is not simply a question of whether the employer gave notice.
1. First, identify what actually happened
Before deciding whether a termination was unfair, it is important to identify exactly how the employment relationship ended.
For example:
- Were you expressly dismissed?
- Were you told not to report to work again?
- Were you asked to resign?
- Were you suspended and never permitted to return?
- Did a fixed-term contract reach its agreed end?
- Was the termination said to be for misconduct?
- Was it said to be because of restructuring, retrenchment or closure?
These situations may all result in a person losing employment.
Legally, however, they may raise different questions.
That is why one of the first things to examine is the letter, email, message or other communication by which the employment is said to have ended.
2. Why did the employer terminate you?
The reason given by the employer matters.
A disciplinary dismissal based on alleged misconduct is not necessarily treated in the same way as a termination caused by restructuring, retrenchment or closure.
Similarly, the expiry of a genuine fixed-term arrangement may raise different issues from the dismissal of an employee whose employment was otherwise continuing.
So when someone says:
“The company terminated me.”
an important next question is:
“Why does the employer say it terminated you?”
The answer can affect both the legal position and the remedy that may be available.
3. Termination is not only about notice
Employees often focus on whether the employer gave one month, two months or some other period of notice.
Notice can certainly matter.
The employment contract may provide for notice or payment instead of notice.
But payment of notice does not automatically answer whether the termination itself was legally justified.
For example, there may still be questions about:
- the reason for termination;
- whether misconduct was actually established;
- whether a fair procedure was followed;
- whether statutory protection applies; and
- what remedy the employee may have.
So:
“They paid me one month's salary instead of notice.”
does not necessarily mean:
“Therefore the termination cannot be challenged.”
4. If misconduct is alleged, the allegation is not automatically proved
Suppose an employer says:
“You committed misconduct. Therefore, you are dismissed.”
That allegation is not automatically established merely because the employer has made it.
Depending on the circumstances, important questions may include:
Was the employee told what the allegations were?
Was the employee given an opportunity to respond?
Was a disciplinary inquiry held?
What evidence supported the allegation?
Were the conclusions actually supported by that evidence?
A recent Supreme Court judgment provides a useful example.
In Paul Manuwelage v Colombo Young Men’s Christian Association, SC Appeal No. 175/2017, decided on 2 June 2026, the Labour Tribunal had considered the evidence and found that the employer had not proved the charges against the employee on a balance of probabilities. The termination was consequently found to be unjust and unfair.
The practical point is simple:
An allegation of misconduct may still have to withstand scrutiny if the termination is challenged.
5. What legal remedy may be available?
There is no single legal route for every termination.
Depending on the circumstances, an employee may need to consider whether relief is available through a Labour Tribunal, the Department of Labour, or under the Termination of Employment of Workmen (Special Provisions) Act.
The correct route depends on the nature of the employment and the way in which it ended.
For example, certain non-disciplinary terminations may fall within the statutory protection requiring the employee's written consent or prior approval of the Commissioner of Labour, where the relevant legislation applies.
Likewise, a workman whose employment has been terminated may, in appropriate circumstances, seek relief before a Labour Tribunal.
The important point is that an employee should not assume:
“All terminations are dealt with in the same way.”
They are not.
6. If the termination was unfair, reinstatement is not automatic
Another common assumption is:
“If I prove the employer terminated me unfairly, I must get my job back.”
Not necessarily.
In Paul Manuwelage, the Labour Tribunal found the termination unjust and unfair.
However, it also considered that reinstatement would serve no useful purpose because the relationship of trust and confidence between the parties had broken down. Compensation was awarded instead. The Supreme Court ultimately restored the Labour Tribunal's compensation award.
So two different questions may arise:
Was the termination unjust or unfair?
and, if it was:
What remedy is just and equitable in the circumstances?
If a Labour Tribunal Finds Your Termination Unfair, Will You Automatically Get Your Job Back — and How Is Compensation Decided? (coming soon)
I Was Dismissed for Misconduct – Does My Employer Have to Prove the Charges? (coming soon)
My Employer Asked Me to Resign Instead of Terminating Me – Should I Sign? (coming soon)
I Was Suspended from Work, But No Inquiry Was Held – What Can I Do? (coming soon)
7. Do not ignore the time limit
This is one of the most important practical points.
An employee may think:
“I will first speak to HR.”
“The company said they will reconsider.”
“We are trying to settle the matter.”
Meanwhile, time passes.
Applications concerning termination before a Labour Tribunal are generally subject to a six-month period from the date of termination.
A six-month period is also important in relation to applications for relief under the Termination of Employment of Workmen legislation.
Therefore, the date on which employment ended is not merely another factual detail.
It can be critically important.
Informal negotiations should not cause an employee to lose sight of an applicable legal deadline.
8. What should you do immediately after termination?
The first steps are usually practical.
Identify exactly when the employment ended.
Find out what reason the employer has given.
Preserve the termination letter and the related documents.
Keep the appointment letter or employment contract, salary records, warning letters, charge sheets, suspension letters, inquiry documents, emails, messages and other relevant records.
Be cautious about signing a resignation, settlement or release without understanding its effect.
And because legal time limits may already be running, obtain appropriate advice without unnecessary delay.
So, was the termination unfair?
The answer cannot usually be found by asking only:
“Did they give me notice?”
The more useful questions are:
Why was the employment terminated?
What evidence supports the reason given?
What procedure was followed?
Was the termination disciplinary or non-disciplinary?
Which employment laws apply?
What remedy may be available?
And importantly:
When did the termination happen, and is a legal time limit already running?
An employee who suddenly loses a job will understandably focus first on the loss of income.
But legally, the early period after termination may also be the most important time to understand exactly what happened and what remedies remain available.
The fact that an employer issued a termination letter does not, by itself, answer whether the termination was legally justified.
General information only. This article provides general legal information. The appropriate legal remedy depends on the facts and documents relating to each individual matter. Reading this guide does not by itself create an Attorney-at-Law/client relationship.