Case Note & Summary
The dispute involved the termination of services of employees Daulat Singh and others by their employer, The Railway Employees Cooperative Banking Society Ltd. The employees contended that their termination was illegal as they had been continuously employed for over six months. The prescribed authority under the Rajasthan Shops and Commercial Establishments Act, 1958, ruled in favor of the employees, stating they had worked continuously since June 16, 1992. However, the Division Bench of the High Court overturned this decision, claiming a break in service due to a four-day gap in July 1992. The Supreme Court, upon reviewing the case, found that the Division Bench had misinterpreted the employment letters and the continuity of service. The court noted that the initial appointment as casual labor was from June 16, 1992, and the subsequent appointment letter dated July 19, 1992, confirmed continuity of service from that date. The court emphasized that the employer's argument regarding a break in service was not substantiated and that the employees had indeed completed the required six months of continuous service. Consequently, the Supreme Court restored the Single Judge's ruling and the orders of the prescribed authority, allowing the appeals with costs.
Headnote
A) Labour Law - Continuous Employment - Definition of Continuous Employment - Rajasthan Shops and Commercial Establishments Act, 1958, Section 28-A - The court examined whether the employees had been in continuous employment for six months prior to termination. It held that the Division Bench erred in concluding a break in service based on a four-day hiatus, thus restoring the Single Judge's decision affirming the prescribed authority's ruling in favor of the employees (Paras 1-4).
Issue of Consideration
Whether the appellants were in continuous employment for a period of not less than six months before termination of their services.
Final Decision
The Supreme Court set aside the impugned judgment of the Division Bench and restored the judgment of the learned Single Judge, confirming the orders of the prescribed authority. The appeals were allowed with costs.
Law Points
- Continuous employment
- termination of services
- employer's obligations
- prescribed authority's jurisdiction
- appointment letters
