In Brief
A daily-wage worker employed for eight years by the Public Works Department was terminated without following mandatory procedural requirements under the Industrial Disputes Act. While the Labour Court found the termination illegal and ordered reinstatement with back wages, the High Court substituted a small lump-sum payment. The Supreme Court held that reinstatement is not automatic for daily-wage workers terminated for procedural violations alone, where no unfair labour practice or discrimination is found. Instead, monetary compensation is appropriate because such workers cannot claim permanent regularisation. The Court modified the award to increase compensation to Rs. 3.25 lakhs, partly allowing the appeal.
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