In Brief
A daily-wage worker (Peon-cum-Driver) was employed for approximately 2.5 years by the State of Gujarat's Panchayat Department and terminated in February 1992. The Labour Court found the termination illegal due to violation of Section 25-G of the Industrial Disputes Act (absence of prior notice and retrenchment compensation). The respondent sought reinstatement and back wages. The Supreme Court, applying the principle from Bharat Sanchar Nigam Limited v. Bhurumal, held that where a daily-wage worker's termination is illegal only on procedural grounds and 25 years have elapsed, monetary compensation is more appropriate than reinstatement. The Court awarded Rs. 2,50,000 in lieu of reinstatement and back wages, holding reinstatement would serve no purpose since daily-wage workers cannot claim regularisation and could be re-terminated after reinstatement.
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