Labour Court’s Ruling: Lump Sum Compensation Awarded to Peon Petitioner Upheld by Gujarat High Court

In a recent ruling by the Gujarat High Court, the decision of the Labour Court to award a lump sum compensation to a peon petitioner has been upheld. The petitioner, who had worked on a temporary basis from 1997 to 2011, challenged the compensation amount, claiming it to be inadequate considering the long period of service. The court’s decision, which found no errors in the award, underscores the importance of fair labor practices and adherence to due process. Stay updated on legal developments with regards to labor rights in this significant case.

Arguments

  • The petitioner has challenged the impugned award passed by the Labour Court
  • The petitioner was appointed as a peon on a temporary basis in 1997 and worked until 2011
  • The petitioner claims that the compensation awarded is meagre considering the long period of service
  • The petitioner alleges the employer of adopting unfair labor practices
  • The petitioner’s counsel argues that due process as per the Industrial Disputes Act was not followed in the termination
  • The petitioner seeks to quash the impugned award and modify the compensation
  • The Labour Court awarded a lump sum compensation of Rs. 50,000 to the petitioner.
  • The petitioner was working on a purely temporary basis with a monthly salary of Rs. 900.
  • The petitioner applied for a peon position in 2006 and was appointed on a temporary basis for two hours with a salary of Rs. 900.
  • The respondent deposited the awarded sum of Rs. 51,000 before the Labour Court.
  • The Labour Court converted the application into a reference in 2013 and partly allowed it in 2018.
  • The award included the lump sum compensation of Rs. 50,000 in lieu of reinstatement and a cost of reference of Rs. 1000.
  • The appointment order to the petitioner clearly stated the temporary nature of the employment.

Analysis

  • The Labour Court’s decision to award lump sum compensation to the petitioner was found to be appropriate
  • Upon review of the award, no errors were identified in the decision-making process
  • The petition lacks merit in challenging the Labour Court’s ruling

Decision

  • Notice is discharged.
  • No order as to costs.
  • The petition is dismissed.

Case Title: SAGATHIYA LAXMAN JESABHAI Vs. THE RESIDENTIAL DEPUTY COLLECTOR

Case Number: R/SCA/11205/2019

Click here to read/download original judgement

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