{"id":314431,"date":"2024-02-17T14:00:06","date_gmt":"2024-02-17T08:30:06","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=314431"},"modified":"2024-02-23T09:36:58","modified_gmt":"2024-02-23T04:06:58","slug":"calcutta-high-court-directs-immediate-reinstatement-with-consequential-benefits-based-on-nature-of-employment-scc-blog","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2024\/02\/17\/calcutta-high-court-directs-immediate-reinstatement-with-consequential-benefits-based-on-nature-of-employment-scc-blog\/","title":{"rendered":"\u2018Nature of Employment to be judged on the basis of duties performed, not Employer\u2019s Letter\u2019; Calcutta High Court directs reinstatement"},"content":{"rendered":"
\n

Calcutta High Court:<\/span> In an appeal against the order of single judge reinstating the respondent after termination for unsatisfactory performance, a division bench comprising of Rai Chattopadhyay*<\/span> and V.M. Velumani, JJ., dismissed the appeal and upheld the reinstatement of respondent, emphasising that the termination without statutory compliance was unjustified and illegal. The Court recognised the respondent as a “workman” and ordered his immediate reinstatement with back wages and consequential benefits and observed,<\/p>\n

“The nature of employment cannot be judged on the letter issued by the employer but on the nature of duties performed by the employee.”<\/p>\n

Factual Background<\/p>\n

In the instant matter, respondent was engaged by the appellant company as a trainee pursuant to an engagement letter dated 23-10-1987, for four years. The respondent’s employment was terminated on 18\/20-01-1992 due to alleged unsatisfactory performance during the training period, as per the provisions of Clause 7 of the engagement letter.<\/p>\n

The respondent raised a grievance against the termination under the Industrial Disputes Act, 1947<\/a>, resulting in an order of reference by the Assistant Labour Commissioner. The Industrial Tribunal, in its award dated 04-04-2001, directed the appellant to reinstate the respondent with back wages and other benefits. The appellant challenged the Tribunal’s award through a writ petition, which was dismissed by the Single Judge vide order dated 06-05-2016. Aggrieved by the impugned order of Single Judge, the appellant preferred the present appeal challenging the same.<\/p>\n

Moot Point<\/p>\n

    \n
  1. \n

    Whether the respondent, engaged as a trainee, should be considered a ‘workman’ under the Industrial Disputes Act, 1947<\/a>?<\/p>\n<\/li>\n

  2. \n

    Whether the termination of the respondent’s employment constituted ‘retrenchment’ under Section 2(oo)<\/a> of the Industrial Disputes Act, 1947<\/a>?<\/p>\n<\/li>\n

  3. \n

    Whether the Industrial Tribunal had jurisdiction to entertain the dispute and pass the award?<\/p>\n<\/li>\n<\/ol>\n

    Court’s Assessment<\/p>\n

    The Court noted that the respondent, despite being designated as a trainee, performed duties of a permanent nature, indicating an employer-employee relationship. The Court asserted that the absence of a structured training program, lack of performance appraisal, and engagement in essential tasks without a designated trainer pointed towards unfair labour practices by the appellant.<\/p>\n

    “An employment if is resorted to as a mechanism to frustrate the claim of the employee to become regular or permanent against a job which continues or the nature of duties is such that the colour of traineeship is given to take it out from the clutches of S. 2(oo) of the said Act of 1947, then such stipulations cannot be regarded as fair or bona fide.”<\/p>\n

    The Court held that respondent should be considered a “workman” based on the nature of his duties and continuous employment with the appellant. Citing precedents Trambak Rubber Industries Ltd.<\/span> v. Nashik Workers Union<\/span>, (2003) 6 SCC 416 and Tungabhadra Sugar Works (P) Ltd.<\/span> v. Labour Court<\/span>, 1982 SCC OnLine Kar 226 the Court affirmed that a trainee could be considered a “workman” under the Industrial Disputes Act. The Court further state that “this Court finds that termination, if any, of the respondent No.3, should have been preceded with due observance of the provisions under section 25-F<\/a> of the Industrial Disputes Act, 1947<\/a>.”<\/span><\/p>\n

    The Court emphasised the importance of considering the nature of duties performed rather than the designation given by the employer. Consequently, the Court deemed the termination of the respondent’s employment without following statutory procedures and principles of natural justice as unjustified and illegal.<\/p>\n

    “This Court is unhesitant to hold that the respondent no.3 would have to be considered as a ‘workman’ of the appellant, within the meaning of Section 2(s)<\/a> of the Industrial Disputes Act, 1947<\/a>. The findings of the Tribunal, as well as the Hon’ble Single Judge, as to the same, is liberated from any error and not to be interfered, in any manner, whatsoever.”<\/p>\n

    Court’s Decision<\/p>\n

    The Court dismissed the appeal and upheld the Tribunal’s award and the Single Judge’s judgment, affirming the respondent’s status as a ‘workman’ and directed the appellant to reinstate the respondent with full benefits including back wages, within sixty days from the date of the judgment.<\/p>\n

    [ABP Ltd.<\/span> v. State of W.B.<\/span>, 2024 SCC OnLine Cal 1458<\/a>, order dated 13-02-2024<\/span>]<\/p>\n

    *Judgment by Justice Rai Chattopadhyay<\/span><\/strong><\/p>\n\n

    Advocates who appeared in this case :<\/p>\n

    Mr. Susanta Pal, Mr. P. Basu and Mr. N. Banerjee, Counsel for the Appellants<\/p>\n

    Mr. R. Guha Thkurata, Ms. Senjuti Sengupta, Ms. Dona Ghosh and Ms. Dipa Roy, Counsel for the Respondent 3<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    “Where the job continues without even any performance appraisal or periodical renewal, and the person engaged in the same would be termed as a “trainee”, as it is in the present case, the same would be considered as unfair labour practice.”<\/p>\n","protected":false},"author":67514,"featured_media":290502,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[60891,2689,21414,63087,60565,2729,65431],"class_list":["post-314431","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-backwages","tag-Calcutta_High_Court","tag-designation","tag-justice-rai-chattopadhyay","tag-nature-of-employment","tag-Reinstatement","tag-trainee"],"yoast_head":"\nCalcutta High Court directs immediate reinstatement with consequential benefits based on nature of employment | SCC Blog<\/title>\n<meta name=\"description\" content=\"Calcutta High Court directed immediate reinstatement with consequential benefits based on nature of employment not Employer\u2019s Letter.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2024\/02\/17\/calcutta-high-court-directs-immediate-reinstatement-with-consequential-benefits-based-on-nature-of-employment-scc-blog\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"\u2018Nature of Employment to be judged on the basis of duties performed, not Employer\u2019s Letter\u2019; 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termination order quashed","author":"Editor","date":"April 18, 2022","format":false,"excerpt":"Gujarat High Court: Biren Vaishnav, J. allowed a petition which was filed challenging the order of termination passed by the respondent \u2013 authority, by which, the services as Assistant Motor Vehicle Inspector, Class-III of the petitioner has been terminated on the ground of lodging of an FIR under Sections 7,\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/12\/1200px-Gujarat-High-Court-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/12\/1200px-Gujarat-High-Court-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/12\/1200px-Gujarat-High-Court-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/12\/1200px-Gujarat-High-Court-1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/12\/1200px-Gujarat-High-Court-1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":254485,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/09\/20\/wrongful-termination-reinstatement-with-full-back-wages-not-automatic-in-every-case-holds-supreme-court\/","url_meta":{"origin":314431,"position":1},"title":"Wrongful termination| Reinstatement with full back wages not automatic in every case, holds Supreme Court","author":"Prachi Bhardwaj","date":"September 20, 2021","format":false,"excerpt":"Supreme Court: The bench of R. Subhash Reddy* and Sanjiv Khanna, JJ has held that reinstatement with full back wages is not automatic in every case, where termination\/dismissal is found to be not in accordance with procedure prescribed under law. The ruling came in the matter where, A Clerk-cum-Cashier was\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":219381,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/09\/11\/del-hc-reinstatement-cannot-be-granted-where-employee-acts-in-a-manner-by-which-management-loses-confidence-in-him-order-of-reinstatement-quashed\/","url_meta":{"origin":314431,"position":2},"title":"Del HC | Reinstatement cannot be granted where employee acts in a manner by which management loses confidence in him; order of reinstatement quashed","author":"Bhumika Indulia","date":"September 11, 2019","format":false,"excerpt":"Delhi High Court:\u00a0J.R. Midha, J. allowed a writ petition filed by the employer challenging the award of the Labour Court whereby the respondent was ordered to be reinstated with 40% back wages. The employer had engaged the respondent on daily wages, who deposited deficient sale proceeds for several months in\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":314426,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/02\/17\/calcutta-high-court-sets-aside-discharge-order-and-directs-reinstatement-as-constable-in-rpf-scc-blog\/","url_meta":{"origin":314431,"position":3},"title":"\u2018Not practised any fraud\u2019; Calcutta High Court sets aside RPF Constable\u2019s Discharge Order and directs Reinstatement","author":"Ritu","date":"February 17, 2024","format":false,"excerpt":"\u201cThe term \u2018serious crime\u2019 connotes a crime beyond the ordinary, inviting a more serious major punishment than what may be given in the case of a minor omission.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"calcutta high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":328918,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/08\/17\/reinstatement-after-alleged-misconduct-removed-cannot-be-treated-as-re-employment-chhattisgarh-hc\/","url_meta":{"origin":314431,"position":4},"title":"Reinstatement in service after alleged misconduct is removed cannot be treated as re-employment: Chhattisgarh HC grants consequential benefits deprived to employee","author":"Arushi","date":"August 17, 2024","format":false,"excerpt":"If the Government servant has been terminated without adhering to Article 311 of the Constitution, then in such a case the provisions cannot be interpreted in favour of the State to deprive the employee of his legitimate claim.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Chhattisgarh High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Chhattisgarh-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Chhattisgarh-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Chhattisgarh-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Chhattisgarh-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":212616,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/03\/29\/pak-sc-contractual-employee-cannot-press-for-reinstatement-of-service-can-only-claim-damages-for-unexpired-period-of-his-service\/","url_meta":{"origin":314431,"position":5},"title":"Pak SC | Contractual employee cannot press for reinstatement of service; can only claim damages for unexpired period of his service","author":"Bhumika Indulia","date":"March 29, 2019","format":false,"excerpt":"Supreme Court of Pakistan: The Three-Judge Bench of Gulzar Ahmed, Faisal Arab And Ijaz Ul Ahsan, JJ., dismissed a petition filed by a contractual employee holding that he had approached the wrong forum for relief. Petitioner herein was appointed as an ECG Technician in District Headquarters Hospital, Rawalpindi on a\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/supreme_court_of_jpakistan.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/supreme_court_of_jpakistan.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/supreme_court_of_jpakistan.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/supreme_court_of_jpakistan.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/supreme_court_of_jpakistan.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/314431","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67514"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=314431"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/314431\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/290502"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=314431"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=314431"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=314431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}