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Srinibas Goradia vs Arvind Kumar Sahu & Ors.

Not available · 2025 INSC 1467Decided 17 Dec 2025
Not available
Justice Prashant Kumar Mishra · Justice N.V. Anjaria

Background

The appellant worked as a cashier at a hotel business run by the respondent for roughly 12-13 years, receiving provident fund and state insurance benefits, before his salary was abruptly stopped. He learned via an RTI request that his employer considered him terminated. The Labour Court at Jeypore, Odisha allowed his reference, held the termination illegal, and ordered reinstatement with full back wages. The Orissa High Court reversed this, holding the appellant did not qualify as a "workman" under Section 2(s) of the Industrial Disputes Act, 1947: the central question on which his entire claim depended.

Decision Breakdown

The Supreme Court held that the High Court had erred in taking a narrow view of who counts as a "workman." Looking at the appellant's actual duties as a cashier under the employer's direction, his receipt of statutory employment benefits, and his long, continuous 12-13 years of service, the Court found he squarely fell within the statutory definition. It upheld the Labour Court's finding that the appellant had completed the requisite 240 days of continuous service in a year and that his termination violated Section 25-F of the Act (which mandates notice/compensation before retrenchment). The Supreme Court set aside the High Court's judgment and restored the Labour Court's award of reinstatement with full back wages, directing compliance within two weeks.

Lesson Learnt

An employee performing routine duties under an employer's supervision and control, such as a cashier, generally qualifies as a "workman" under the Industrial Disputes Act regardless of job title, and an employer cannot terminate such an employee's long service without following the mandatory notice/compensation procedure under Section 25-F.

Official source (sci.gov.in)View Judgment (PDF)

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