September 22, 2018:

A workman has no right to claim back wages from his employer as of right only because the Court has set aside his dismissal order.

It has been ruled by the Apex Court that the back wages could not be awarded by the court as of right to the workman consequent upon setting aside of his dismissal/termination order.

Finding came during hearing of an Appeal against Judgement of High Court of Judicature for Rajasthan at Jaipur.

The question, which arose for consideration in the appeal, was whether the High Court and the Labour Court were justified in awarding full back wages to the deceased workman after setting aside his dismissal order holding it to be bad in law and, in consequence, directing his reinstatement in service of the appellant.

The case was that the deceased Phool Chand was in the employment of the appellant as a driver. The appellant dismissed Phool Chand from the service after holding departmental inquiry on the ground of dereliction of duties on various occasions while he was in the employment. The charge against the deceased ­workman was his continuous absence from the work, which was proved.

Labour Dispute reached the High Court after a round of litigation.  The HC directed the reinstatement of the deceased workman in service with award of full back wages for the period of 13 years.

However Apex Court observed-

''Having heard the learned counsel for the parties and on perusal of the record of the case, we are inclined to allow the appeal in part and while modifying the impugned order award 50% back wages to the deceased workman (his legal representatives) in place of full wages. 

In our considered opinion, the Courts below completely failed to see that the back wages could not be awarded by the Court as of right to the workman consequent upon setting aside of his dismissal/termination order. In other words, a workman has no right to claim back wages from his employer as of right only because the Court has set aside his dismissal order in his favour and directed his reinstatement in service.''

SC Bench further added-

It is necessary for the workman in such cases to plead and prove with the aid of evidence that after his dismissal from the service, he was not gainfully employed anywhere and had no earning to maintain himself or/and his family. The employer is also entitled to prove it otherwise against the employee, namely, that the employee was gainfully employed during the relevant period and hence not entitled to claim any back wages. Initial burden is, however, on the employee.

In some cases, the Court may decline to award the back wages in its entirety whereas in some cases, it may award partial depending upon the facts of each case by exercising its judicial discretion in the light of the facts and evidence.''

Supreme Court lays Reinstatement by Court does not mean Automatic entitlement to Back Wages (Downloadable PDF)

Supreme Court Lays Reinstatement by Court Does Not Mean Automatic Entitlement to Back Wages by Latest Laws Team on Scribd

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