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2006 (11) TMI 725 - SC - Indian Laws

Issues Involved:
1. Nature of Employment and Termination
2. Allegation of Unfair Labour Practice
3. Jurisdiction of the Industrial Tribunal
4. Entitlement to Permanent Status
5. Application of Section 25-F of the Industrial Disputes Act
6. Re-employment and Compensation

Detailed Analysis:

1. Nature of Employment and Termination:
The Respondent engaged the Appellant on a temporary basis for various industrial projects. The Appellant's services were utilized for specific project durations, and upon completion, his employment was terminated. The appointment letters explicitly mentioned the temporary nature of employment and the automatic termination upon the expiry of the specified period. The Appellant worked intermittently from 1978 to 2000, with employment periods ranging from a few days to several years.

2. Allegation of Unfair Labour Practice:
The Appellant claimed that the Respondent engaged in unfair labour practices by employing him temporarily for an extended period to deprive him of permanent status and privileges. He argued that his continuous employment since 1978 indicated the perennial nature of the job. The Industrial Tribunal, however, found no evidence of artificial breaks in service or unfair labour practices. The Tribunal concluded that the employment was project-specific and temporary, aligning with the nature of the Respondent's work.

3. Jurisdiction of the Industrial Tribunal:
The Tribunal determined that the primary issue was the termination of the Appellant's services on 10.05.2000, which fell under Item 1 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, rather than Item 9. The Tribunal noted that the Appellant should have sought remedy under Section 32 of the Act for alleged illegal termination but approached the Tribunal for permanency after termination, making the complaint unsustainable.

4. Entitlement to Permanent Status:
The Appellant argued that his long-term temporary employment entitled him to permanent status. However, the Tribunal and subsequent court judgments emphasized that merely working for 240 days in a year does not confer a right to regularization. The nature of the Respondent's project-based work necessitated temporary employment, and there was no statutory obligation to grant permanent status based on the duration of employment alone.

5. Application of Section 25-F of the Industrial Disputes Act:
The courts examined whether the termination of the Appellant's services complied with Section 25-F of the Industrial Disputes Act, which mandates compensation for retrenchment. The Tribunal found that the Respondent had paid all legal dues and compensation to the Appellant, who accepted them without protest. Therefore, the termination was deemed lawful, and there was no basis for claiming unfair labour practices.

6. Re-employment and Compensation:
The Supreme Court noted that the Respondent had discontinued direct employment for project work and had started outsourcing. Despite this, the Respondent offered to use its influence with contractors to secure employment for the Appellant. The Court acknowledged this effort and dismissed the appeal, expressing satisfaction that the Respondent provided some relief to the Appellant.

Conclusion:
The Supreme Court upheld the findings of the Industrial Tribunal and the High Court, concluding that the Respondent's temporary employment practices were bona fide and aligned with the nature of its project-based work. The Appellant's claims of unfair labour practices and entitlement to permanent status were not substantiated. The appeal was dismissed, with the Court noting the Respondent's willingness to assist the Appellant in securing alternative employment through its contractors.

 

 

 

 

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