In cases relating to termination of labour, where such termination is evidently illegal, awarding of reinstatement with full back wages by Courts should not be a merely mechanical exercise and the same shall be done considering the circumstances of the case. The same was held by the Supreme Court in District Development Officer & Anr. vs. Satish Kantilal Amrelia.[1]

In the order dated 28.11.2017, the court reasoned that same by considering daily wage workers, who have no right claim regularization. Therefore, the Employer even after the order of reinstatement with full back wages always has the option of terminating his employment after giving suitable monetary compensation.

In this regard, the Apex Court though added a Caveat by stating that in case the termination of a daily wage worker has been given effect to by resorting to unfair labour practices or in violation of the policy of ‘last come-first go’, or in case where a junior is regularized and a senior workman is terminated, in such cases, the terminated worker should be allowed reinstatement. In such scenarios, reinstatement should be a rule unless opposed by weighty reasons to grant compensation instead or by reasons for not doing the same being stated in writing.[2]



[1] District Development Officer & Anr. vs. Satish Kantilal Amrelia (28.11.2017 – SC Order): MANU/SCOR/49785/2017

[2] Labour Law Reporter March 2018 Edition

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