MP High Court Upholds Labour Rights: Daily Wage Worker to Be Reinstated with 50% Back Wages
In an important ruling, the Madhya Pradesh High Court has upheld the rights of daily wage workers who have been unfairly dismissed from their jobs. Justice Vishal Mishra, presiding as a single judge, supported a decision made by the Labour Court, which directed the reinstatement of a daily wage worker along with 50% back wages. The court ruled that the worker’s termination violated the Industrial Disputes Act (ID Act) and was, therefore, illegal.
Background of the Case
A daily wage worker had been dismissed from his job without following proper legal procedures. He took the matter to the Labour Court, arguing that his termination was unjust and violated the Industrial Disputes Act (ID Act), 1947. The Labour Court ruled in his favor, ordering his reinstatement with 50% of his back wages as compensation for the period of unemployment.
Dissatisfied with this ruling, the State government challenged the decision in the Madhya Pradesh High Court, arguing that reinstatement should not be granted automatically in cases of unfair dismissal. The State also contended that daily wage workers do not have the same employment rights as permanent employees.
Key Observations of the Court
Justice Vishal Mishra dismissed the State’s argument, stating that:
- Violation of the Industrial Disputes Act: The termination was in direct violation of the ID Act, which protects workers from arbitrary dismissal. Any worker, whether permanent or daily wage, is entitled to due process before being removed from service.
- Reinstatement is a Valid Remedy: The court reaffirmed that when an employee is unfairly dismissed, reinstatement is a suitable remedy, especially in cases where no valid reason for termination exists.
- 50% Back Wages as Compensation: Since the worker was unemployed due to illegal termination, the court ruled that he should receive half of his lost wages from the time of dismissal until reinstatement.
Why This Judgment is Important
This ruling strengthens the rights of daily wage workers in India, ensuring that they are not unfairly dismissed without following proper legal procedures. It also highlights that employers, including the government, must adhere to labor laws and cannot terminate workers arbitrarily.
By granting reinstatement and 50% back wages, the Madhya Pradesh High Court has set an important precedent for future cases involving unfair termination of contractual and daily wage employees.
