In Brief
Employees of a government-undertaking sugar factory were offered a Voluntary Retirement Scheme (VRS) that did not include lay-off compensation. After accepting the VRS and receiving the special compensation package, the employees sought to claim lay-off compensation before the Labour Court. The High Court held they were no longer 'workmen' and thus lacked standing. The Supreme Court allowed the appeal, holding that although accepting a VRS ends the employment relationship, if the VRS does not expressly cover past dues like lay-off compensation, employees retain the right to claim such amounts under Section 33C(2) of the Industrial Disputes Act. The Court remitted the matter to the Labour Court for adjudication on merits.
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