Gujarat High Court orders Rs. 50,000/- to workman as full and final settlement in lieu of reinstatement and back wages

Case- Thakor Shivaji Kanaji vs Water Supply And Sewerage Board
Decided on: 3rd July 2023

CORAM: HON’BLE Justice Rajendra M. Sareen


The case involves a petitioner named Thakar Shivaji Kanaji who challenged the judgment and award passed by the Labour Court, Mehsana in Reference (LCM) No. 493 of 2008 (Old LCK No. 639 of 2003). The Labour Court had awarded a lump sum compensation of Rs. 10,000/- in lieu of reinstatement and back wages. The petitioner sought reinstatement and back wages or alternatively an enhancement of the compensation awarded.

Facts of the Case

The facts of the case indicate that Thakor Shivaji Kanaji worked as a laborer with the respondent (Water Supply and Sewerage Board) from 2001 with a monthly salary of Rs. 2000/-. The respondent terminated the petitioner’s services on 30/6/2003 without notice or notice pay, allegedly violating the provisions of Section 25(F), 25(G), and 25(H) of the Industrial Disputes Act. The petitioner approached the Assistant Labour Commissioner, who referred the dispute to the Labour Court Mehsana for adjudication.

The submissions made by the workman’s advocate focused on establishing that the workman was employed by the respondent directly and not by any contractor. The Labour Court found in favor of the workman, holding that he had worked for 240 days in the last preceding year and that the termination was illegal due to the lack of proper procedure under the Industrial Disputes Act.

On the other hand, the employer’s advocate contended that the workman was employed by a security contractor and not directly by the respondent. However, the Labour Court found no evidence supporting this claim and held that the workman was indeed under direct employment.


The Court observed that while the termination was illegal, reinstatement after a gap of over 20 years would not serve any purpose. Therefore, instead of Rs. 10,000/- awarded by the Labour Court, the Court ordered the respondent to pay a lump sum amount of Rs. 50,000/- to the workman as full and final settlement in lieu of reinstatement and back wages.


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Written by- Aadit Shah

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