In Brief
Multiple daily wagers employed by the State of Gujarat on canal projects for over 20 years were terminated in 2010 without following retrenchment procedures. The Labour Court found breach of Sections 25(F), (G) and (H) of the Industrial Disputes Act but awarded compensation of Rs. 72,000 each instead of reinstatement. The Gujarat High Court held that once violation of mandatory statutory retrenchment procedures is established, reinstatement with continuity of service is mandatory. Compensation is inappropriate remedy for employees with long tenure. The court set aside compensation awards and directed reinstatement within three months, allowing workmen to forego backwages and claim Government benefits after reinstatement.
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