In Brief
A daily-wage worker employed by a public works department for eight years was terminated verbally in 1991 without following mandatory procedures under the Industrial Disputes Act. The Labour Court ordered reinstatement with partial back wages. The High Court substituted this with Rs. 25,000 lump-sum compensation. The Supreme Court partly allowed the appeal, enhancing compensation to Rs. 3.25 lakhs. The Court held that reinstatement is not automatic for daily-wage workers terminated solely for procedural non-compliance (Section 25F violation), as such workers lack regularization rights and can be re-terminated. Instead, monetary compensation is appropriate unless termination involved unfair practices or discrimination against juniors.
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