Bombay High Court Allows Reinstatement of Daily Wage Worker in Unfair Labour Practice Case. Petitioner completed 240 days of service and was orally terminated without following Section 25(f) of Industrial Disputes Act, 1947.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The petitioner, Tanaji Baburao Tanugade, filed a complaint under the MRTU & PULP Act, 1971 alleging unfair labour practice by the Kolhapur District Central Cooperative Bank. He claimed he worked as a daily wage worker from May 1996 to September 1998, completing more than 240 days in a calendar year, and was orally terminated without following due process or paying compensation under Section 25(f) of the Industrial Disputes Act. The Labour Court allowed his complaint, ordering reinstatement with continuity. The Industrial Court reversed, holding that daily wage workers cannot claim permanency. The High Court, in writ jurisdiction, restored the Labour Court's order, emphasizing that completion of 240 days of service in a calendar year makes a daily wage worker permanent, and termination without compliance with Section 25(f) is an unfair labour practice. The court directed reinstatement with continuity of service and 50% back wages.

Headnote

A) Industrial Law - Unfair Labour Practice - Termination of Daily Wage Worker - Items 1(b) and (f) of Schedule IV of MRTU & PULP Act, 1971 read with Section 25(f) of Industrial Disputes Act, 1947 - The petitioner, a daily wage worker, claimed he worked from May 1996 to September 1998 and was orally terminated after completing more than 240 days. The Labour Court held termination illegal and ordered reinstatement. The Industrial Court reversed, holding that daily wage workers are not entitled to permanency. The High Court restored the Labour Court's order, holding that completion of 240 days confers permanency and termination without compliance with Section 25(f) is an unfair labour practice. (Paras 1-14)

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Issue of Consideration

Whether the oral termination of a daily wage worker who had completed more than 240 days of service in a calendar year without following the due process under Section 25(f) of the Industrial Disputes Act, 1947 constitutes an unfair labour practice under the MRTU & PULP Act, 1971.

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Final Decision

The High Court allowed the writ petition, set aside the Industrial Court's order, and restored the Labour Court's order dated 03.02.2010, directing reinstatement of the petitioner with continuity of service and 50% back wages.

Law Points

  • Unfair labour practice
  • daily wage worker
  • completion of 240 days
  • deemed permanent
  • oral termination
  • Section 25(f) Industrial Disputes Act
  • 1947
  • reinstatement with continuity
  • MRTU & PULP Act
  • 1971
  • Schedule IV items 1(b) and (f)
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Case Details

2016 LawText (BOM) (09) 57

WRIT PETITION NO.11343 OF 2011

2016-09-16

R. M. SAVANT, J.

Shri. Abhay Nevagi a/w Ms. Prerna Patil i/by Abhay Nevagi & Associates for the Petitioner, Shri. M. S. Topkar for the Respondent No.1

Shri. Tanaji Baburao Tanugade

The Manager Kolhapur District Central Coop. Bank Ltd., Member, Industrial Court, Kolhapur

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Nature of Litigation

Writ petition challenging the order of the Industrial Court which set aside the Labour Court's order of reinstatement.

Remedy Sought

The petitioner sought reinstatement with continuity of service and declaration of unfair labour practice.

Filing Reason

The petitioner's services were orally terminated after he had completed more than 240 days of service, without following due process under Section 25(f) of the Industrial Disputes Act.

Previous Decisions

The Labour Court allowed the complaint and ordered reinstatement. The Industrial Court allowed the revision and set aside the Labour Court's order.

Issues

Whether the oral termination of a daily wage worker who completed 240 days of service without compliance with Section 25(f) of the Industrial Disputes Act constitutes an unfair labour practice. Whether a daily wage worker is entitled to permanency upon completion of 240 days of service.

Submissions/Arguments

Petitioner argued that he worked from May 1996 to September 1998, completed 240 days, and was orally terminated without notice or compensation, constituting unfair labour practice. Respondent argued that the petitioner was a daily wage worker appointed as and when work was available, and there was no termination; he simply stopped reporting for work.

Ratio Decidendi

A daily wage worker who completes 240 days of service in a calendar year becomes deemed permanent, and termination without following Section 25(f) of the Industrial Disputes Act, 1947 is an unfair labour practice under the MRTU & PULP Act, 1971.

Judgment Excerpts

The Petitioner herein is the original Complainant who has filed Complaint (ULP) No.69 of 1999 invoking items 1(b) and (f) of Schedule IV of the MRTU & PULP Act, 1971. It was his case that since he had completed more than 240 days of service in a calender year, he had become permanent, and therefore his services could not be terminated without following the due process of law and without payment of compensation as contemplated by Section 25(f) of the Industrial Disputes Act.

Procedural History

The petitioner filed Complaint (ULP) No.69 of 1999 before the Labour Court, Kolhapur, which was allowed on 03.02.2010. The respondent filed Revision Application (ULP) No.31 of 2010 before the Industrial Court, Kolhapur, which was allowed on 18.10.2011, setting aside the Labour Court's order. The petitioner then filed the present writ petition before the High Court.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU & PULP Act): Schedule IV, Items 1(b) and (f)
  • Industrial Disputes Act, 1947: Section 25(f)
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High Court Bombay High Court Allows Reinstatement of Daily Wage Worker in Unfair Labour Practice Case. Petitioner completed 240 days of service and was orally terminated without following Section 25(f) of Industrial Disputes Act, 1947.