In a recent judgment by the Supreme Court of India, a decision was made regarding the reinstatement and back wages for workers involved in the case. The Court addressed the issue of continuous work days and the payment of back wages, ultimately providing clarity on the matter. This ruling has significant implications for labor laws in the country, setting a precedent for future cases involving similar disputes.
Facts
- The appellant-Board filed a writ petition challenging the award of the Labour Court.
- The Engagement Order clearly stated that the engagement was temporary and services could be terminated when the requirement is over.
- The respondents were engaged as Store Watchman on daily wages under NMR basis temporarily.
- The Labour Court found the termination of the respondents’ services to be invalid and unsustainable.
- The learned Single Judge affirmed the award of reinstatement but reduced the back wages to 50%.
- No documents were produced to prove continuous work for 240 days by either the workmen or the management.
- Respondent-Workers sought implementation of revised pay scales as per settlement agreement.
- Appellant-Board argued revised pay scales already implemented through back wages.
- The Labour Court found no evidence of back wages payment, ordered implementation of revised pay scales with arrears.
- Appellant-Board contended burden of proof not on them.
- Labour Court rejected contention, held burden of proof on Appellant-Board.
- Appellant-Board challenged Labour Court’s decision in present appeal.
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Arguments
- Mr. Paramasivam, learned counsel representing the appellant-Board, was heard.
- Ms. Sanya Kumar, learned counsel representing the respondents- workmen, was heard.
- Learned counsel for the Board presented a chart showing 50% back wages payable from the date of termination to the Labor Court’s order.
- The back wages were calculated at the rate of Rs. 18 per day as wages payable.
- 50% of the back wages payable were determined as per schedule rates from the termination date until reaching the age limit or death.
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Analysis
- Initial burden is on the respondents-workmen to prove they have worked continuously for 240 days
- Division Bench erred in not considering this initial burden before ordering reinstatement
- Appellant-Board should not be burdened to prove lack of continuous work days
- Attendance register and salary certificates not marked as documents by respondents
- The majority of respondents have reached the age of superannuation, making reinstatement impossible
- The focus is on the payment of 50% back wages and the amount payable instead of reinstatement
- Given the specific circumstances of the case, further discussion on reinstatement is not deemed necessary
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Decision
- Amount paid to respondents under Section 17-B of the Industrial Disputes Act, 1947 and additional Rs.2,00,000/- each to workmen (except deceased M. Muthuswamy Nadar) considered as back wages and compensation in full quit of all claims.
- Payment of Rs.2,00,000/- to legal representatives of M. Muthuswamy Nadar ordered by the Court.
- Amount already paid to each respondent, including Rs.2,00,000/- mandated by the Supreme Court, to be considered as full quit of all claims, including 50% back wages and compensation in lieu of reinstatement.
- Refund of the amount in deposit with Labour Court/High Court along with accrued interest to be made to the appellant-Board.
Case Title: THE SUPERINTENDING ENGINEER TWAD BOARD Vs. M. NATESAN AND ORS.
Case Number: C.A. No.-004875-004884 / 2019
