In Brief
A daily-wager construction helper was terminated in 1998 without compliance with Section 25-F of the Industrial Disputes Act, 1947. The Industrial Tribunal, High Court, and lower courts all ordered reinstatement with 40% back-wages. The Supreme Court affirmed reinstatement but modified the back-wages award. While acknowledging that 40% back-wages was awarded by all three forums, the Court held that such payment is not automatic upon statutory violation. Finding that thirteen years of 40% back-wages (1998–2015) would impose unreasonable financial burden on the employer-corporation, the Court substituted a lump sum settlement of ₹1.5 lakh in lieu of full back-wages, partly allowing the appeal on grounds of peculiar circumstances."
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