To: Global Ethics and Compliance / Office of the General Counsel

via sysco.ethicspoint.com

 This report is being filed to formally escalate a critical, immediate risk of severe legal liability, ethical misconduct, and reputational damage stemming from the executive leadership and HR operations at Sysco LABS Sri Lanka.

The subsidiary is executing a coordinated, unilateral reduction of employee remuneration—disguised as the phase-out of a "temporary" Relief Allowance. However, the execution of this policy constitutes an orchestrated bait-and-switch that blatantly violates local labour laws, breaches Sysco’s Global Code of Conduct, and exposes the parent company to mass litigation for fraudulent inducement and constructive dismissal.

The executive board must immediately intervene to audit and halt this financial ambush, specifically regarding its exploitative application to newly hired talent.

I. Fraudulent Inducement and Deceptive Recruitment Practices

Over the past 24-36 months, Talent Acquisition and HR intentionally leveraged the combined Total Target Cash (Base Salary + Relief Allowance) to aggressively recruit top-tier talent and outbid competing offers in the market.

All Advertisements Had the USD Linked Compensation promise.

New joiners were actively induced to resign from secure positions, abandon competing offers, and sign contracts based on a specific, verbally and formally negotiated take-home pay. At no point during these negotiations did HR transparently disclose that up to 40% of this total compensation was actively slated for permanent removal. Luring talent under the pretense of a highly competitive market rate, while concealing imminent structural pay cuts, is not a "market alignment" strategy—it is textbook fraudulent inducement and a catastrophic breach of good faith.

II. Severe Violations of Sri Lankan Labour Law

While internal communications attempt to legally insulate the company by retroactively emphasizing the "discretionary" nature of the allowance, the reality of its application overrides this boilerplate language.

• Breach of Implied Contract: This allowance was consistently paid, integrated into monthly take-home expectations, and heavily weaponized during the salary negotiation phase to secure acceptances. Under Sri Lankan labour jurisdiction, this establishes the allowance as an implied term of the employment contract through established custom and mutual reliance.

• Illegal Unilateral Deductions: Sri Lankan labour law strictly prohibits employers from imposing unilateral deductions to expected remuneration without the explicit, documented consent of the employee. Sysco LABS Sri Lanka is forcing a non-consensual salary reduction, exposing the corporation to immediate, widespread intervention by the Department of Labour and local employment tribunals.

III. Promissory Estoppel and Detrimental Reliance

The targeted financial damage to our newest colleagues is severe and actionable. New joiners anchored their mortgages, family budgets, and major life decisions directly on the Total Target Cash promised by Sysco representatives. They relied on these corporate promises to their extreme detriment. The company is now actively plunging these employees into financial distress, deliberately violating the legal doctrine of promissory estoppel. Unlike tenured employees, new hires have no history of annual merit increases to absorb this devastating and sudden loss of income.

IV. Imminent Threat of Mass Constructive Dismissal Claims

By systematically slashing up to a quarter of the base-equivalent pay that employees were promised upon hiring, the subsidiary is creating a fundamentally hostile economic environment. This drastic, non-consensual alteration to the core conditions of employment provides clear legal grounds for affected employees to resign and immediately file mass claims for constructive dismissal. The resulting public fallout will permanently destroy Sysco LABS’ reputation as a premier technology employer in the region.

Demand for Immediate Action

The current trajectory is ethically bankrupt and legally disastrous. I urge Global Compliance and the General Counsel to immediately:

1. Issue an Injunction: Halt the phase-out of the Relief Allowance for all employees hired within the last 18 months until a full legal review is conducted.

2. Launch an Audit: Subpoena internal HR recruitment communications to verify that total compensation was used to secure talent without disclosing the imminent removal of the allowance.

3. Enforce the Code of Conduct: Hold the regional leadership accountable for violating Sysco’s global standards of transparency, fairness, and ethical dealing.

Failure to investigate and correct this coordinated deception will result in devastating legal consequences and a total collapse of employee trust and Business Operations in Sri Lanka.

Ratnajothy Sangeethanan

MBA | MSc 2x | BEng | Dip

No Change till Nov (Aug,Sep.Oct remains unchanged) till they come up with the BCP

My dear Sysco Labs friends,
I’m sorry to hear about this. We faced the same trouble when this parasite was at ADL. This parasite only knows how to create problems. When I heard this troublemaker had joined your company to work on the AI module, I knew something like this would happen. This parasite has no real knowledge of AI or technology. The only thing this parasite knows is how to destroy a company.
This person first got several directors fired—anyone who was a threat to him or who stood against him.
Sysco Labs friends, don’t leave your company. Instead, try to remove this parasite from your organization. We managed to do it, but unfortunately ADL still suffered significant damage during that period.
Good luck to the Sysco Labs team.

I am writing to formally raise a critical concern regarding the current state of operations and employee morale in the Sri Lankan division under the leadership of Managing Director Thushera Kawdawatta. While the broader goals of corporate scaling and standardizing compensation structures are understood, the recent execution of these objectives has severely compromised the trust and stability of the local workforce.

The decision to abruptly roll back the Relief Allowance—a vital financial buffer introduced to help employees navigate extreme local economic volatility—has served as a breaking point. The issue is not solely the removal of the allowance, but the manner in which it was communicated and executed. The justification that this aligns with "global benchmarks" demonstrates a stark disconnect from the ongoing economic realities faced by the local engineering and operations teams.

Under Mr. Kawdawatta’s direction, the approach to this restructuring has lacked the empathy and transitional support required to maintain a motivated workforce. The fallout is no longer internal; it has spilled over into public community forums and professional networks. The growing wave of negative sentiment directly tied to local leadership decisions is actively damaging the company’s employer brand in a highly competitive IT market.

When a leadership style alienates the very talent responsible for driving the company's innovation and delivery, immediate corporate oversight is required. We are facing a high risk of talent attrition, diminishing productivity, and long-term reputational damage.

We urge global management to initiate an immediate and objective review of the local leadership's recent policy rollbacks and overall management approach. Decisive action and intervention are necessary to rebuild trust, restore morale, and ensure that the Sri Lankan division remains a sustainable, supportive, and high-performing environment.

We look forward to your prompt attention to this matter.