Case Note & Summary
The petitioner, Akhil Bharatiya Ashanghathit Rozandari Kamgar Sanghathana, a registered trade union, filed a writ petition challenging the termination of services of daily wage workers (Rozandari Kamgars) engaged under the National Rural Employment Guarantee Scheme (NREGA) in Aurangabad district. The workers were employed by the respondents (State of Maharashtra and its officers) on a daily wage basis under the scheme. Their services were terminated without any prior notice or hearing, and without payment of retrenchment compensation. The petitioner contended that the termination violated the principles of natural justice and the provisions of Section 25F of the Industrial Disputes Act, 1947, which mandates notice and compensation before retrenchment. The respondents argued that the workers were engaged under a scheme and were not regular employees, and thus the protections of the Industrial Disputes Act did not apply. The court analyzed the facts and legal provisions, noting that the workers had been in continuous service for more than 240 days and were entitled to the protections under Section 25F. The court held that the termination without notice or hearing was in gross violation of natural justice and the Industrial Disputes Act. The court set aside the termination orders and directed the respondents to reinstate the workers with continuity of service and back wages at 50% from the date of termination till reinstatement. The court also directed the respondents to comply with Section 25F if any future retrenchment is contemplated.
Headnote
A) Service Law - Termination of Daily Wage Workers - Natural Justice - Termination of Rozandari Kamgars under NREGA without notice or hearing violates principles of natural justice - Held that even daily wage workers are entitled to a hearing before termination (Paras 5-6). B) Industrial Disputes Act, 1947 - Section 25F - Retrenchment Compensation - Termination of workers without payment of retrenchment compensation as required under Section 25F of the Industrial Disputes Act, 1947 is illegal - Held that the provisions of Section 25F apply to daily wage workers who have completed 240 days of continuous service (Paras 7-8). C) NREGA - Rozandari Kamgars - Status - Workers engaged under the National Rural Employment Guarantee Scheme are entitled to the protections of the Industrial Disputes Act, 1947 - Held that the scheme does not exclude the applicability of labour welfare legislation (Para 9).
Issue of Consideration
Whether the termination of services of daily wage workers (Rozandari Kamgars) engaged under the National Rural Employment Guarantee Scheme without complying with the principles of natural justice and without payment of retrenchment compensation under Section 25F of the Industrial Disputes Act, 1947 is legal and valid.
Final Decision
The court allowed the writ petition, set aside the termination orders, directed reinstatement of the workers with continuity of service and back wages at 50% from the date of termination till reinstatement, and directed compliance with Section 25F for any future retrenchment.
Law Points
- Natural justice
- termination without notice
- Section 25F of Industrial Disputes Act
- 1947
- NREGA Scheme
- daily wage workers
- retrenchment compensation
- reinstatement
