Case Note & Summary
The appeal arose from a dispute under the Industrial Disputes Act, 1947 concerning seasonal workmen employed by a cooperative sugar mill. The appellant employer challenged the concurrent findings of the Labour Court and High Court that the respondents were retrenched workmen entitled to reinstatement. The Labour Court and High Court had concluded that since the respondents had worked for more than 240 days in a year, they were retrenched workmen within the meaning of Section 2(oo) of the Act, and that the employer had not complied with Section 25F, thereby rendering the retrenchment void and directing reinstatement. On appeal by special leave, the Supreme Court directed the appellant to furnish details of crushing seasons from 1987-88 to 1993-94. The additional affidavit disclosed that each crushing season commenced around October or November and closed around March or April. The respondents did not work throughout the year but only during those crushing seasons and ceased work upon the closure of each season. The core legal issue was whether the cessation of work at the end of the crushing season for seasonal workmen amounted to retrenchment under Section 2(oo), thereby attracting the requirements of Section 25F. The appellant contended that the work was seasonal and that clause (bb) of Section 2(oo) excluded the termination of seasonal work from the definition of retrenchment. The Labour Court and High Court had reasoned that because the respondents worked over 240 days, they were retrenched and the employer failed to comply with Section 25F. The Supreme Court examined the crushing season data and concluded that the respondents were not working throughout the season but only during the crushing seasons. Since the work was seasonal, the cessation of work at the end of the season did not amount to retrenchment under Section 2(oo) because clause (bb) expressly excluded termination of employment as a result of non-renewal of contract of employment or termination under a stipulation in that behalf, and seasonal employment fell within that exclusion. The Court held that the view taken by the Labour Court and the High Court was illegal. However, to protect the interests of the workmen, the Court directed the appellant to maintain a register for all workmen engaged during the enumerated seasons and, when a new season started, to make a publication in neighbouring places where the respondents normally lived, so that if they reported for duty, the appellant would engage them in accordance with seniority and exigency of work. The appeals were accordingly allowed, but without costs, setting aside the orders of reinstatement.
Headnote
A) Industrial Disputes - Retrenchment - Seasonal Work Cessation - Industrial Disputes Act, 1947, Section 2(oo)(bb) - Workmen engaged only during crushing seasons and ceasing work at the end of the season were not retrenched within the meaning of Section 2(oo), and therefore Section 25F was not attracted; the Labour Court and High Court erred in holding retrenchment void and directing reinstatement; the employer was directed to maintain a register of workmen and offer re-engagement according to seniority and exigency of work when the new season started - Held that seasonal cessation of work falls under the exclusion in clause (bb) of Section 2(oo) and is not retrenchment
Issue of Consideration
Whether cessation of work by seasonal workmen at the end of the crushing season amounts to retrenchment under Section 2(oo) of the Industrial Disputes Act, 1947, thereby requiring compliance with Section 25F
Final Decision
Appeals allowed; the view taken by Labour Court and High Court held illegal; respondents not retrenched; appellant directed to maintain register and offer re-engagement according to seniority and exigency of work when new season starts
Law Points
- Cessation of work by seasonal workmen at the end of crushing season does not amount to retrenchment under Section 2(oo) of Industrial Disputes Act
- 1947 in view of clause (bb)
- Section 25F compliance not required for seasonal work cessation
- employer must maintain register and re-engage seasonal workmen as per seniority when new season starts
