In Brief
Hindustan Machine Tools Ltd, a sick government company, terminated a casual helper employed for only one year (June 1976 to July 1977) by oral order. The Labour Court awarded reinstatement with continuity of service. The Supreme Court partly allowed the employer's appeal, holding that for casual workers with brief tenures where decades have passed without evidence of subsequent employment, lump-sum compensation under Section 11A of the Industrial Disputes Act is more appropriate than reinstatement. The Court directed payment of ₹50,000 as compensation in lieu of reinstatement, taking into account interim payments made during appeals.
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