Unsplashed background img 1
RETRENCHMENT:-When engagement of workman was for specific period and conditional, provision of retrenchment will not apply in such case. - The Industrial Disputes Act, 1947

Workman was contractual employee appointed for short fixed term of 3 months which was extended from time-to-time with stop gap arrangement by giving breaks for one or 2 days. He had completed 240 days service during the 12 calendar months prior to termination. When the regular appointed was appointed, the services of the contractual employees were terminated by giving one month's notice. Workman raised an industrial dispute. Industrial Tribunal considering the breaks for 2-3 days as artificial breaks, held the termination without holding departmental enquiry or giving show cause notice, as illegal being in violation of Section 25F of the Act, directing the management for his reinstatement without back-wages. Both the Management and the workman challenged the award in separate writ petitions. It has been held that the appointment was on short-term vacancy for fixed period of 3 months, clearly indicating that appointment, hence in such cases compliance of Section 25F of the Industrial Disputes Act, 1947 is not required.

Termination of services of the workman after appointment of regular employee is not retrenchment as per Section 2(00) (bb) of the Industrial Disputes Act, 1947 if the contract of employment is having stipulation that for continuance on regular appointment.

-Employees State Insurance Corporation vs. C.G.I. T. cum-Labour Court. 2017 LLR 808 (M.P.)

The Industrial Disputes Act,1947

Did you find this content helpful?

Yes No

Call us on 09920-100-462 |Request a quotation

LK Nakashe Consultants Pvt. Ltd is India’s leading compliance & labour law consulting firm. Headquartered in Mumbai, we are ISO 9001 Certified & Crisil Certified, and we serve all 29 states and 7 union territories of India. Our service bouquet includes Registration & Renewal Services, End-to-End Monthly Compliance Services, Audit & Due Diligence Services, Advisory & Consulting Services, Payroll Management Services and Contract Staffing Services. Our client list of 750+ companies includes some of India’s biggest business conglomerates, MNCs, public listed companies & SMEs

First-of-its-kind app that UN-COMPLICATES compliance & labour laws. Download for free on iOS & Android Google play App store