MVR 2.7M paid by CSC in compensation for unlawful terminations

Photo shows Velaanaage; a building where several government offices are located.

An audit report of Civil Service Commission (CSC) for the year 2021 shows that the commission paid MVR 2.7 million to various parties as compensation for unlawful terminations from employment.

The audit report publicized by the Auditor General’s Office underscored that 17 civil servants working in nine organizations were unlawfully terminated from their jobs in 2021.

Subsequently, they were paid compensation ordered by courts for terminations carried out without fulfilling the required procedures stipulated in the Employment Act.

The audit report details nine cases in total where there have been payouts. They include;

  • Five cases where CSC enforced Employment Tribunal’s rulings after losing the case without filing a High Court appeal
  • Two cases ruled by the Employment Tribunal in favor of CSC which upon appeal by the complainants were overturned by the High Court
  • Two cases where rulings by Employment Tribunal against CSC were upheld by the High Court following appeal
  • One case where CSC had to pay over MVR 200,00 for failure to enforce the ruling in a case without lodging an appeal

With respect to the cases highlighted in the audit report – the Auditor General’s Office emphasized on the importance of following the legal procedures required when terminating an employee against their will. They also recommended renewing employment contracts executed with incumbent civil servants to state the amount of money that can be paid in compensation for unlawful termination in circumstances where a court ruling does not recommend the termination by CSC in light of the terms of the contract.

The Auditor General’s Office also recommended the formulation of a policy on taking administrative action against staff found negligent in fulfilling their duties in the termination of another based on the severity of the compensation payout.

Additionally, the Auditor General’s Office also recommended recovering monies incurred by the state subsequent to negligence in enforcing court judgments ordering compensation for unlawful termination from the staff identified at fault.