Deputy Minister of Labour Mahinda Jayasinghe has instructed the Department of Labour to conduct a comprehensive investigation into the operations of the popular restaurant chain Mr. Koththu, following widespread public outrage over allegations of employee abuse that surfaced on social media.
In a statement issued on June 30, the Deputy Minister directed labour officials to investigate allegations that the chain’s owner, Viraj Wickramanayake, had verbally and physically abused employees.
The investigation will also examine whether the company has properly paid Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) contributions in accordance with labour laws.
The Labour Department is expected to carry out inspections at all 12 branches of the restaurant chain across the country.
Authorities have also been instructed to determine whether employees at branches that have reportedly been closed in recent years received the compensation and other benefits they were legally entitled to.
During the inspections, labour officials will also obtain first-hand accounts from employees regarding workplace conditions and any industrial disputes they may have experienced.
The Deputy Minister has instructed the Labour Department to submit a comprehensive report containing its findings before July 7.
The probe follows the circulation of CCTV footage on social media allegedly showing an employee being assaulted inside a Mr. Koththu outlet.
Following his arrest and subsequent release on bail, owner Viraj Wickramanayake released a video admitting that the audio recordings and CCTV footage circulated on social media were authentic and had not been generated using artificial intelligence.
He publicly apologised to all employees, including an employee identified as Nipun who was seen being assaulted in the footage, and said he had undertaken before court to pay appropriate compensation to those affected.
Wickramanayake also stated that he had employed nearly 10,000 people over the course of the business’s 19-year history and expressed regret over instances where he had failed to control his anger and behaviour.
He further thanked the government and the President for allowing the police and judiciary to act independently without political interference, while claiming he had also been subjected to an intense social media smear campaign.
The businessman added that he had obtained substantial loans from several leading commercial banks and financial institutions and was continuing to operate the business amid challenging economic conditions.
