Uma Devi Judgment Cannot Justify Exploitative Employment Practices: Supreme Court On Illegal Termina

Supreme Court Orders Reinstatement of Ghaziabad Nagar Nigam Workers, Calls Out Unfair Labor Practices

 

In a significant judgment upholding labor rights, the Supreme Court of India ruled that the termination of certain workmen employed by the Ghaziabad Nagar Nigam was illegal. The Court ordered their reinstatement with 50% back wages and directed the municipal body to initiate a fair process for their regularization. Advotalks : Talk to Lawyers

 

Background of the Case

 

The case stemmed from an industrial dispute raised by gardeners (malis) in the Horticulture Department of Ghaziabad Nagar Nigam. Despite working continuously since 1998-99, they had no formal appointment letters or statutory benefits. In 2004, they sought regularization and fair wages through the Conciliation Officer. However, in 2005, their services were abruptly terminated—without notice, written orders, or compensation—even as conciliation proceedings were ongoing.

 

The workmen argued that this violated Section 6E of the U.P. Industrial Disputes Act, 1947, which prohibits altering employment conditions during an ongoing dispute. The matter was referred to the Labour Court, which delivered conflicting awards—one directing partial reinstatement and another denying relief on grounds of contractor employment. The Allahabad High Court later modified the relief, ordering daily-wage re-engagement with minimum pay but no back wages, prompting both parties to appeal before the Supreme Court.

 

Key Issues Before the Supreme Court

 

1. Legality of Termination – Whether the termination violated Sections 6E and 6N of the U.P. Industrial Disputes Act, which mandate due process before termination during a pending dispute.

 

 

2. Employer-Employee Relationship – Whether the workmen were directly employed by the Nagar Nigam or through contractors.

 

 

3. Right to Regularization – Whether decades of service in essential municipal roles created a legitimate claim for regularization.

 

 

4. Applicability of the Uma Devi Judgment – The Nagar Nigam relied on Uma Devi (2006) to argue that casual workers cannot demand regularization. The Court, however, clarified that Uma Devi applies to illegal appointments, whereas these workers had been engaged in perennial municipal functions, making their employment irregular but not illegal.

 

 

 

Supreme Court's Verdict

 

In Shripal & Anr. v. Nagar Nigam, Ghaziabad (Civil Appeal No. 8157 of 2024), a bench of Justice Vikram Nath and Justice Prasanna B. Varale ruled in favor of the workmen, making key observations:

 

1. Termination Was Illegal – The Court held that terminating workers midway through conciliation, without notice or compensation, violated labor laws. It emphasized that employers cannot unilaterally alter service conditions during a pending dispute.

 

 

2. Direct Employment Was Proven – The Nagar Nigam’s claim of hiring through contractors lacked evidence. Wages were paid directly by the Horticulture Department, proving a direct employer-employee relationship.

 

 

3. Unfair Labor Practices – The Court criticized the Nagar Nigam’s long-term use of workers without regularization, stating that the "equal pay for equal work" principle cannot be ignored.

 

 

4. Uma Devi Judgment Was Misapplied – The Court rejected the employer’s reliance on Uma Devi, clarifying that it cannot be used to justify prolonged exploitation under the guise of casual employment.

 

 

5. Reinstatement and Back Wages – The Court ordered:

 

Immediate reinstatement in previous or equivalent posts.

 

50% back wages from the date of termination to reinstatement.

 

Continuous service benefits, including seniority and promotions.

 

A transparent regularization process within six months to prevent workers from being indefinitely retained as daily wagers.

 

 

 

 

This ruling sends a strong message against exploitative employment practices, reinforcing the principle that long-serving workers in essential roles deserve dignity, fair treatment, and job security.

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