Case Note & Summary
The petitioner, Maharashtra State Road Transport Corporation (MSRTC), challenged the judgment of the Labour Court dated 22.08.2017 allowing Complaint (ULP) No.49/2016 filed by the respondent employee, and the judgment of the Industrial Court dated 18.07.2018 dismissing Revision (ULP) No.23/2017. The respondent employee, a conductor, suffered an accident on 20.04.2008 while on duty, resulting in multiple fractures to both legs below the knees. He was under treatment until 30.06.2009. On 31.07.2009, the Civil Surgeon declared him unfit for the conductor's job as he could not stand for long durations. The petitioner issued a termination order dated 17.04.2012 terminating the respondent's services with retrospective effect from 31.07.2009. The respondent filed a complaint under Section 28(1) of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU and PULP Act) after more than three years, along with an application for condonation of delay, which was allowed and not challenged by the petitioner. The Labour Court set aside the termination, and the Industrial Court dismissed the revision. The High Court considered the petitioner's three grounds: (i) the termination was based on medical unfitness, (ii) the respondent was not a workman under the Industrial Disputes Act, and (iii) the termination was not with retrospective effect but from the date of the medical certificate. The court rejected all grounds, holding that termination with retrospective effect is illegal and that the employer cannot terminate services without providing an opportunity of hearing. The court also noted that the petitioner did not challenge the condonation of delay order. The High Court dismissed the writ petition, upholding the judgments of the Labour Court and Industrial Court.
Headnote
A) Service Law - Termination with Retrospective Effect - Unfair Labour Practice - Termination of an employee with retrospective effect from a date prior to the order of termination is illegal and amounts to unfair labour practice under the MRTU and PULP Act, 1971 - The employer cannot terminate services with retrospective effect without providing an opportunity of hearing to the employee - Held that the Labour Court and Industrial Court correctly set aside the termination (Paras 6-8).
Issue of Consideration
Whether termination of an employee with retrospective effect is legal and valid, and whether the Labour Court and Industrial Court correctly set aside such termination.
Final Decision
The High Court dismissed the writ petition, upholding the judgments of the Labour Court and Industrial Court. The termination order dated 17.04.2012 with retrospective effect from 31.07.2009 was set aside.
Law Points
- Termination with retrospective effect is illegal
- Natural justice requires opportunity of hearing before termination
- Section 28(1) of MRTU and PULP Act
- 1971 provides remedy against unfair labour practices
