Case Note & Summary
The case involves writ appeals filed against an order of a learned Single Judge who upheld the award of the Labour Court but directed payment of Rs.75,000 as compensation to each workman. The workmen were selected in an interview on 30.12.1999 for execution of works on contract basis and were appointed on consolidated remuneration of Rs.1,553 per month for a period from 17.01.2000 to 31.03.2000. Clause 4 of the appointment order stated that if the workmen were found unsuitable for the job on joining, the contract was liable for termination without notice. The workmen were terminated without notice. The Labour Court held the termination illegal and ordered reinstatement with continuity of service but without backwages. The learned Single Judge upheld the award but directed payment of Rs.75,000 compensation to each workman. The appeals were filed by both the workmen (seeking backwages) and the employer (BESCOM) challenging the award. The Division Bench of the Karnataka High Court held that the termination was illegal as the workmen were not given an opportunity to show cause. However, considering the short-term nature of the contract, the court upheld the reinstatement with continuity of service but without backwages, and directed payment of Rs.75,000 compensation to each workman in lieu of backwages. The court relied on Section 11A of the Industrial Disputes Act, 1947, which gives discretion to the Labour Court to award appropriate relief. The appeals were disposed of accordingly.
Headnote
A) Labour Law - Contractual Employment - Termination Without Notice - Workmen appointed on contract basis for a fixed period from 17.01.2000 to 31.03.2000 with clause allowing termination without notice if found unsuitable - Termination without notice held illegal as workmen were not given opportunity to show cause - Reinstatement with continuity of service but without backwages upheld - Compensation of Rs.75,000 each in lieu of backwages directed (Paras 3-10). B) Labour Law - Section 11A Industrial Disputes Act, 1947 - Relief in Case of Illegal Termination - Labour Court has discretion to award reinstatement with or without backwages or compensation - In case of short-term contractual employment, reinstatement without backwages and compensation appropriate - Held that workmen are entitled to reinstatement with continuity of service but not backwages (Paras 8-10).
Issue of Consideration
Whether the termination of workmen appointed on contract basis for a fixed period without notice was justified, and what relief should be granted.
Final Decision
The appeals are disposed of upholding the order of the learned Single Judge directing reinstatement with continuity of service but without backwages, and payment of Rs.75,000 compensation to each workman.
Law Points
- Contractual appointment
- termination without notice
- reinstatement without backwages
- compensation in lieu of backwages
- Section 11A of Industrial Disputes Act
- 1947
