TRENDS OF REINSTATEMENT AS REMEDY IN CASES WHERE SECTION 25F OF INDUSTRIAL DISPUTE ACT 1947 WAS NOT FOLLOWED

AUTHOR –PRANAV BHASKAR, STUDENT AT SCHOOL OF LAW, PRESIDENCY UNIVERSITY BANGALORE

BEST CITATION – PRANAV BHASKAR, TRENDS OF REINSTATEMENT AS REMEDY IN CASES WHERE SECTION 25F OF INDUSTRIAL DISPUTE ACT 1947 WAS NOT FOLLOWED, ILE LEX SPECULUM (ILE LS), 1 (1) OF 2023, PG. 470-475, APIS – 3920 – 0036 | ISBN – 978-81-964391-3-2.

ABSTRACT

The article examines the judicial trend of reinstatement as a remedy in cases of retrenchment under the Industrial Disputes Act (IDA) of 1947. Retrenchment, the termination of an employee’s service by the employer for various reasons, has become a significant issue in recent times due to economic downturns and changes in business strategies. Section 2(oo) of the IDA defines retrenchment broadly, covering all forms of termination except those specifically dealt with by other provisions of the Act. Section 25F of the IDA lays down the conditions that must be followed while retrenching a worker, including providing one month’s notice, paying retrenchment compensation, and serving notice to the appropriate government. However, the court has clarified that automatic reinstatement with full back wages is not warranted in every case of illegal retrenchment, especially in the case of daily wage workers.

The landmark case of B.S.N.L vs. Bhurumal (2014) highlighted the shift in the legal position, stating that compensation instead of reinstatement could meet the ends of justice, particularly for daily wage workers. The court acknowledged that reinstatement may not be practical or viable in certain situations, and monetary compensation may be more appropriate to address the loss of employment. However, the court also emphasized that reinstatement could be granted in exceptional cases where there are compelling reasons to do so. The article explores the nuances of the court’s decisions and the factors influencing the choice between reinstatement and compensation in cases of retrenchment.

KEYWORDS: Retrenchment, Industrial Disputes Act Section 25f, Judicial Trend in reinstatement, Remedies for retrenchment, reinstatement after retrenchment.