In Brief
Between 1986-89, the Tamil Nadu Water Supply and Drainage Board engaged ten store watchmen on temporary daily wage basis with explicit notice that services were purely temporary and would end without notice. The Board terminated them in 1990 upon reorganizing its stores. The Labour Court in 2000 held the termination invalid and ordered reinstatement with full back wages. The High Court affirmed but reduced back wages to 50%. The Supreme Court upheld the 50% back wages award and compensation in lieu of reinstatement (as reinstatement was impractical—respondents had reached retirement age). The Court directed that all amounts already paid constituted full settlement of all claims.
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