News
Court orders delisting of life insurance agents’ trade union
View(s):The Court of Appeal (CA) has issued an order to the Assistant Labour Commissioner to delete or expunge from the Registrar of the Trade Unions, the registration of the “Life Insurance Agents Association (LIAA)” and to cancel its certificate of registration.
The bench comprising Judges Sobitha Rajakaruna and Dhammika Ganepola gave the ruling after considering a petition filed by the Insurance Association of Sri Lanka (IASL) challenging the decision by the Assistant Labour Commissioner to register the Life Insurance Agents Association as a trade union.
The IASL argued that there was a stringent and separate legal regime that governed insurance agents and it differed from the legal regime that governed workmen and employees. It pointed out insurance agents were prohibited by law from being workmen or employees.
The IASL told the bench that under the law a trade union could only be formed and registered by workmen/employees and thus, the insurance agents being independent contractors could not form, join or register a trade union under the Trade Union Ordinance as they were not ‘workmen’ under the said Ordinance.
Delivering its judgment, the Court stressed that a mere label of an ‘insurance agent’ could not be considered as an accessory to assess whether such an agent would come within the definition of workmen stipulated in the Trade Union Ordinance.
The Judges held that the Assistant Labour Commissioner had not adopted a lawful mechanism in arriving at the impugned decision, especially in reference to the question of whether the relationship between such members and the life insurance institutions was in the nature of the contract for services or independent contractors.
The Court, however, stressed that it was unable to assess and determine whether the members of the Respondent (LIAA) come within the definition of ‘workman’ under the Trade Union Ordinance as there was no evidence before Court to make such a determination.
Nigel Hatch PC with Siroshni Illangage instructed by Indunil Bandara appeared for the petitioner. Deputy Solicitor General Chaya Sri Nammuni with State Counsel M. Fernando appeared for the Assistant Labour Commissioner. Nagananda Kodithuwakku appeared for the LIAS. Malaka Palliyaguru with Sanjeewa Ranaweera appeared for the Insurance Regulatory Commission of Sri Lanka.
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