Case Note & Summary
The present writ petition was filed by the General Manager, Government Milk Scheme, Udgir challenging the award dated 30th April 1992 passed by the Labour Court, Latur in Reference (IDA) No. 2/1988. The Labour Court had directed reinstatement of 18 daily wage employees with continuity of service and full back wages. The employees were working as daily wagers in the Government Milk Scheme, Udgir, a government undertaking. Their services were terminated without complying with the mandatory provisions of Section 25-F of the Industrial Disputes Act, 1947, which requires one month's notice or wages in lieu thereof and payment of retrenchment compensation. The employees raised an industrial dispute which was referred to the Labour Court. The Labour Court held that the termination was illegal and unjustified and directed reinstatement with full back wages and continuity of service. The petitioner contended that the employees were daily wagers and that the scheme had been closed, but the court found that the closure was not proved and that the termination was in violation of Section 25-F. The High Court, after hearing both sides, dismissed the writ petition, holding that the Labour Court's award was just and proper and did not warrant any interference. The court observed that the termination of daily wage employees without complying with Section 25-F is illegal and that reinstatement with back wages is the appropriate relief.
Headnote
A) Industrial Law - Termination of Daily Wage Employees - Section 25-F of Industrial Disputes Act, 1947 - The termination of daily wage employees without giving one month's notice or wages in lieu thereof and without payment of retrenchment compensation as required under Section 25-F of the Industrial Disputes Act, 1947 is illegal and void. The Labour Court correctly held that the termination was illegal and directed reinstatement with continuity of service and full back wages. (Paras 1-10) B) Industrial Law - Reinstatement with Back Wages - Section 25-F of Industrial Disputes Act, 1947 - Where termination is found to be illegal for non-compliance with Section 25-F, the normal rule is to grant reinstatement with full back wages and continuity of service. The employer cannot avoid liability by contending that the employees were daily wagers or that the scheme was closed. (Paras 1-10)
Issue of Consideration
Whether the termination of daily wage employees without complying with Section 25-F of the Industrial Disputes Act, 1947 is legal and justified, and whether the Labour Court was correct in ordering reinstatement with full back wages and continuity of service.
Final Decision
The High Court dismissed the writ petition, upholding the Labour Court's award of reinstatement with continuity of service and full back wages.
Law Points
- Termination of daily wage employees without notice or compensation under Section 25-F of Industrial Disputes Act
- 1947 is illegal
- Reinstatement with continuity of service and back wages is proper relief for illegal termination
- Daily wage employees are workmen under Industrial Disputes Act
- 1947
