Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Labour Laws: |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Labour Laws: Industrial Disputes Act, 1947: Sections 2(aaa) and 25-F. Workman-Termination of services-Retrenchment compensation-Method of calculation-Principle of "twenty-six working days"- Applicability of-Services of an unskilled workman employed on monthly wages terminated due to closure of farming operations-Retrenchment compensation paid in terms of S. 25-F-Labour Court calculated the compensation on the basis of the average pay for 26 days and held that the retrenchment fell short of the amount required to be paid under S. 25-F-Accordingly, the Labour Court directed reinstatement of the workman with 50% back wages and continuity of service-High Court summarily dismissed the writ petition filed by the employer-Correctness of-Held: Since the workman was employed on monthly wages, his average pay has to be calculated in accordance with the formula given in Section 2(aaa)(i)-Thus, the average pay would be total wages in preceding three months divided by three-The principle of "twenty six working days" for determining the compensation under S. 25-F(b) is not applicable-Hence, retrenchment compensation is in full compliance of S. 25-F(b)-High Court judgment and Labour Court award set aside. Interpretation Statutes: Principles of interpretation-Literal Rule-Held: The words of a statute must prima facie be given their ordinary, natural and grammatical meaning, unless that leads to some absurdity-The language used in Section 2(aaa) of the Industrial Disputes Act, 1947 is absolutely plain and clear and there is not the slightest ambiguity in the same. Words & Phrases:"Average pay"-Meaning of-In the context of Section 2(aaa) of the Industrial Disputes Act, 1947.The respondent was appointed as an unskilled workman on the post of Mali (gardener) on a contract basis by the appellant-University. The respondent's services were terminated consequent upon the closure of the farming operations in the University and cessation of other seasonal work. The respondent was given retrenchment compensation in terms of Section 25-F(b) of the Industrial Disputes Act, 1947. The industrial dispute raised by the respondent was referred under Section 10(1) of the Act for adjudication by the Industrial Tribunal-cum-Labour Court. The Labour Court held that one day's average pay of the respondent should be calculated by dividing his monthly salary by 26 and the quotient so arrived at should be multiplied by 30 (15x2) as he had worked for two years and one month. The Labour Court further held that the retrenchment compensation paid to the respondent fell short of the amount which was to be paid under Section 25-F(b) of the Act. Accordingly, the Labour Court gave an award directing that the respondent be reinstated with continuity in service and all other consequent service benefits along with 50% back wages from the date of demand notice. The High Court summarily dismissed the writ petition filed by the appellant. Hence the appeal |
Judge | Hon'ble Mr. Justice G.P. Mathur |
Neutral Citation | 2007 INSC 62 |
Petitioner | Guru Jambheshwar University, Hisar |
Respondent | Dharam Pal |
SCR | [2007] 1 S.C.R. 993 |
Judgement Date | 2007-01-17 |
Case Number | 252 |
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