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Labour & Industrial LawSupreme Court of India

Jasmer Singh v. State of Haryana & Anr.

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 346 of 2015)Decided 13 Jan 2015
Civil Appeal No. 346 of 2015
Justice V. Gopala Gowda · Justice C. Nagappan

Background

The appellant was a daily-wage worker with the PWD (B&R) in Karnal, Haryana, from January to December 1993. His service was terminated on 31.12.1993 without notice, notice pay, or retrenchment compensation, and without following the "last come, first go" rule required for retrenchment. An Industrial Tribunal found he had worked more than 240 days in the preceding calendar year (a legal threshold that triggers retrenchment protections) and set aside the termination, ordering reinstatement with back wages. The Punjab and Haryana High Court's Single Judge, and then a Division Bench, reversed that finding and upheld the termination.

Decision Breakdown

The Supreme Court held that the Industrial Tribunal's factual finding, that the workman had completed over 240 days of continuous service, based on muster-roll evidence that the employer never genuinely disputed, was well-supported and should not have been disturbed by the High Court exercising its limited supervisory jurisdiction under Article 227 of the Constitution. The Court reiterated that industrial welfare legislation must be read purposively in favour of protecting workers' livelihoods, and that a termination made without complying with Sections 25-F, 25-G and 25-H of the Industrial Disputes Act (notice, retrenchment compensation, and seniority-based retrenchment) is void from the outset. Because the termination was void ab initio, the workman was entitled to full back wages, not just reinstatement, following the principle that denying back wages to an illegally terminated employee effectively rewards the employer for its illegal act.

Lesson Learnt

A daily-wage or contract worker who has completed 240 days of continuous service in a year gains statutory protection against termination without notice, compensation, and adherence to seniority, and courts reviewing such disputes under writ jurisdiction should not casually overturn a labour court's factual findings made on the evidence.

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