An employer might be guilty of flouting the drill prescribed by Section 25F of the Industrial Disputes Act while dismissing a daily wage worker who has put in more than 240 days of continuous service.

But that does not mean he should be invariably reinstated with back-wages.

In Assistant Engineer, Rajasthan Dev. Corporation and another v. Gitam Singh, the Supreme Court reiterated that the right to be reinstated is reserved for permanent employees. In other cases, said the Court, award of compensation for illegal termination would normally meet the ends of justice. It therefore ordered payment of Rs 50,000 as compensation for illegal termination while turning down the request for reinstatement with 25 per cent back-wages.

(This article was published on February 3, 2013)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.