In Brief
Hindustan Machine Tools, a government company, terminated a casual helper after 10 months of employment in 1977. The Labour Court set aside the termination and ordered reinstatement with back wages and continuity of service. The High Court's Division Bench upheld this order, but the Supreme Court partly allowed the employer's appeal. The Court held that given the casual nature of employment, short tenure, and passage of decades, lump sum compensation (Rs. 50,000) was more appropriate than reinstatement. The Court directed the company to pay this amount to the employee instead of implementing reinstatement.
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