The Punjab & Haryana High Court has recently addressed an important issue regarding employment termination. The Court ruled that employers cannot deprive employees of their benefits by backdating their termination. Here’s a breakdown of the case and its implications:
The Case Background
In this case, the Court examined a writ petition challenging an order by the Managing Director of the PRTC (PEPSU Road Transport Corporation). The order had retired a bus driver from service effective December 31, 1994, even though the official retirement date was set in 1995.
Details of the Case:
- Driver’s Service History: The driver began his service in 1970, with a recorded date of birth of July 20, 1938. According to this, he should have retired on July 31, 1996, when he turned 58.
- Retirement Order: The driver was retired retroactively on December 31, 1994, based on an assumption that his date of birth should have been December 1936 (to comply with licensing regulations for heavy vehicles).
Court’s Observations
Justice Namit Kumar clarified that:
- Termination Dates: An employer can choose to make the termination effective either immediately or at a specified future date. However, it cannot be made effective retroactively.
- Protection of Benefits: Employees’ rights and benefits earned during their service must be protected. Termination cannot strip them of benefits by applying it to a date before it actually happened.
Legal Precedents
The Court referred to a previous case, Rajinder Singh vs Board of School Education Haryana and another (1996), which established that punitive measures cannot be applied retrospectively.
Court’s Ruling
- Order Set Aside: The Court set aside the retrospective retirement order from 1995.
- New Retirement Date: The driver’s retirement date is now considered June 8, 1995, the date when the impugned order was passed.
- Benefits: The driver is entitled to all benefits from January 1, 1995, until June 8, 1995. These benefits should be granted within three months from receiving the certified copy of this order.
This ruling reaffirms the principle that employment termination and its effects must respect the actual dates and cannot be applied retroactively to disadvantage the employee.