Case Note & Summary
The State of Maharashtra, through the Secretary of Medical Education and Drugs Department, the Director of Medical Education and Research, and the Dean of Grant Medical College and J.J. Group of Hospitals, filed a writ petition challenging an order of the Industrial Court dated 30 June 2022. The Industrial Court had allowed a complaint filed by 55 daily wager employees (respondents) working as Aayas, Ward Boys, and Peons at J.J. Hospital, directing the petitioners to make them permanent with continuity of service. The employees had been engaged on a daily wage basis for periods ranging from 1986 to 1998, and many had worked for over 240 days in a calendar year. The Industrial Court found that their termination without following the procedure under Section 25-F of the Industrial Disputes Act, 1947 constituted an unfair labour practice under Item 1 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU & PULP Act). The State argued that the employees were not entitled to permanency as they were engaged on a temporary basis and that the Industrial Court had erred in granting relief. The High Court, after hearing both sides, dismissed the petition, holding that the Industrial Court's order was just and proper. The court noted that the employees had worked for decades and that the State's action in terminating them without compliance with Section 25-F was arbitrary. The High Court upheld the direction for reinstatement with continuity of service but did not disturb the Industrial Court's decision not to award back wages. The petition was dismissed with no order as to costs.
Headnote
A) Industrial Law - Permanency - Daily Wager - Continuous Service - Section 3(5) of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - The Industrial Court directed the State to make daily wager employees permanent with continuity of service, finding that they had worked for more than 240 days in a calendar year and that their termination without following due process constituted an unfair labour practice. The High Court upheld the order, holding that the employees were entitled to permanency and that the State's petition lacked merit. (Paras 1-10) B) Industrial Law - Unfair Labour Practice - Termination - Section 25-F of the Industrial Disputes Act, 1947 - The termination of daily wager employees who had completed 240 days of service without compliance with Section 25-F (notice, retrenchment compensation) was held to be an unfair labour practice under Item 1 of Schedule IV of the MRTU & PULP Act. The Industrial Court's finding of unfair labour practice was affirmed by the High Court. (Paras 5-8) C) Industrial Law - Reinstatement - Back Wages - The Industrial Court granted reinstatement with continuity of service but did not award back wages. The High Court upheld this relief, noting that the employees had been working for decades and that the State's action was arbitrary. (Paras 9-10)
Issue of Consideration
Whether the Industrial Court was justified in directing reinstatement with continuity of service and permanency benefits to daily wager employees who had worked for more than 240 days in a calendar year, and whether the State's petition challenging the order should be allowed.
Final Decision
The High Court dismissed the writ petition, upholding the Industrial Court's order dated 30 June 2022 directing the petitioners to make the respondents permanent with continuity of service. No order as to costs.
Law Points
- Permanency
- Daily wager
- Continuous service
- 240 days
- Industrial Disputes Act
- 1947
- Section 3(5) of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act
- 1971
- Unfair labour practice
- Reinstatement
- Back wages
