Case Note & Summary
The judgment arises from two cross writ petitions filed by workmen and their employer, Eastern International Hotel, challenging an order dated 06/06/2018 passed by the President, Industrial Court, Maharashtra, Mumbai. The workmen, seven employees of the hotel, were terminated on 01/10/2015 without any notice or payment of wages in lieu of notice and without payment of retrenchment compensation. They filed a complaint before the Industrial Court under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU & PULP Act), alleging unfair labour practice. The Industrial Court held that the termination was illegal as it violated Section 25F of the Industrial Disputes Act, 1947, which mandates that no workman employed in any industry who has been in continuous service for not less than one year shall be retrenched until one month's notice or wages in lieu thereof and retrenchment compensation are given. The Industrial Court ordered reinstatement with full back wages and continuity of service. The employer challenged this order in Writ Petition No. 6910 of 2018, while the workmen sought implementation in Writ Petition No. 7423 of 2018. The High Court analyzed the provisions of Section 25F of the Industrial Disputes Act, 1947 and Section 30 of the MRTU & PULP Act, 1971. It held that the termination was clearly in violation of Section 25F as the employer did not give any notice or compensation. The court rejected the employer's argument that the workmen were not in continuous service for one year, noting that the workmen had worked for several years. The court also held that the Industrial Court had jurisdiction to grant reinstatement with back wages under the MRTU & PULP Act. The High Court dismissed the employer's petition and allowed the workmen's petition, directing the employer to comply with the Industrial Court's order within four weeks.
Headnote
A) Industrial Law - Termination of Workmen - Section 25F of Industrial Disputes Act, 1947 - Compliance with Pre-conditions - The termination of workmen without giving one month's notice or wages in lieu thereof and without payment of retrenchment compensation as required under Section 25F of the Industrial Disputes Act, 1947 is illegal and void. The employer cannot terminate workmen without following the mandatory pre-conditions. (Paras 10-15) B) Industrial Law - Unfair Labour Practice - Section 30 of Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - Jurisdiction of Industrial Court - The Industrial Court has jurisdiction under Section 30 of the MRTU & PULP Act, 1971 to grant relief of reinstatement with full back wages and continuity of service when the employer has engaged in unfair labour practice by terminating workmen without complying with Section 25F of the Industrial Disputes Act, 1947. (Paras 16-20) C) Industrial Law - Reinstatement with Back Wages - Full Back Wages - The Industrial Court's order of reinstatement with full back wages and continuity of service is justified when the termination is found to be illegal and in violation of Section 25F of the Industrial Disputes Act, 1947. The workmen are entitled to be put back in the position they would have been but for the illegal termination. (Paras 21-25)
Issue of Consideration
Whether the termination of the workmen by the employer without complying with the mandatory provisions of Section 25F of the Industrial Disputes Act, 1947 is legal and valid, and whether the Industrial Court was justified in ordering reinstatement with full back wages and continuity of service.
Final Decision
The High Court dismissed the employer's writ petition (WP/6910/2018) and allowed the workmen's writ petition (WP/7423/2018), directing the employer to comply with the Industrial Court's order of reinstatement with full back wages and continuity of service within four weeks.
Law Points
- Termination of workmen without complying with Section 25F of Industrial Disputes Act
- 1947 is illegal and void
- entitling workmen to reinstatement with full back wages and continuity of service. The Industrial Court has jurisdiction under Section 30 of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act
- 1971 to grant such relief. The employer cannot unilaterally terminate workmen without following the procedure under Section 25F of the Industrial Disputes Act
- 1947.
