Case Note & Summary
The petitioners, a group of doctors, were appointed as Medical Officers on contract basis in the Employees State Insurance Scheme (ESIS) dispensaries run by the State of Maharashtra. They were appointed between 1986 and 1998 and their contracts were renewed periodically. In 2004, the State terminated their services without any prior notice or opportunity of hearing. The petitioners challenged the termination and sought regularisation of their services. The court examined the facts and found that the petitioners had been working continuously for several years, some for over a decade, and their services were terminated arbitrarily. The court held that the petitioners had a legitimate expectation of regularisation, especially since the State had regularised similarly situated employees in the past. The court also noted that the ESI Act, 1948 does not prohibit regularisation of contract employees. The court directed the State to consider the petitioners' cases for regularisation in accordance with law and to frame a policy for regularisation of contract employees in ESIS dispensaries. The court quashed the termination orders and directed the State to reinstate the petitioners with continuity of service and consequential benefits.
Headnote
A) Service Law - Regularisation - Contract Employees - Legitimate Expectation - Articles 14, 16 of the Constitution of India - Petitioners were appointed as Medical Officers on contract basis in ESIS dispensaries and continued for years with renewals - State terminated their services without affording any opportunity of hearing - Held that the petitioners had a legitimate expectation of regularisation and the termination was arbitrary and violative of Articles 14 and 16 (Paras 1-21). B) ESI Act, 1948 - Medical Officers - Contract Appointment - Regularisation - The ESI Scheme provides for appointment of Medical Officers on contract basis, but the State cannot continue such appointments indefinitely without regularising them - Held that the State must frame a policy for regularisation and consider the petitioners' cases (Paras 1-21).
Issue of Consideration
Whether the petitioners, who were appointed as Medical Officers on contract basis in ESIS dispensaries, are entitled to regularisation of their services and whether their termination was arbitrary and illegal.
Final Decision
The court allowed the writ petitions, quashed the termination orders, and directed the State to consider the petitioners' cases for regularisation in accordance with law. The petitioners were directed to be reinstated with continuity of service and consequential benefits.
Law Points
- Regularisation of contract employees
- legitimate expectation
- Articles 14 and 16 of the Constitution
- ESI Act
- 1948
- termination of contract employees
- parity with regular employees
