Termination Of Services Without Prior Notice Violates Principles Of Natural Justice, Gujarat High Court Directs Forest & Environment Department To Reinstate Workmen

The Gujarat High Court single-judge bench of Justice Hemant M. Prachchhak held that the termination of services of Workmen without issuing any prior notice violates the principles of natural justice.

It was noted that the Forest and Environment Department (Gujarat) illegally terminated the services of its Workmen, to deprive them of benefits under the Government Resolution dated October 17, 1988. The Resolution promised several allowances and leaves to the daily wage workers, subject to the years in service.

Brief Facts:

The matter pertained to the employment circumstances of Petitioner Nos. 2 to 15 (“Workmen”) within the Forests and Environment Department, where they served on a daily wage basis between January 1, 2006, and August 1, 2007.

The Petitioners (“Workmen”) were employed by the Forests and Environment Department (“Management”). They served on a daily wage basis. Despite their tenure exceeding seven years as daily wagers, they received only minimum wages under the Minimum Wages Act, 1948. No additional benefits or entitlements such as regular pay scales or various types of leaves were granted to them. Upon reaching the age of retirement, they were deprived of retirement benefits as well.

Subsequently, the Supreme Court in State of Gujarat and others v. PWD Employees' Union and others [(2013) 8 SCALE 579], directed the State of Gujarat to extend the benefits outlined in the Government Resolution of October 17, 1988, to all daily-wage workers in the department with over five years of service. In response to the Supreme Court's directive, the Workmen, alongside similarly situated employees, filed a Special Civil Application in the Gujarat High Court (“High Court”).

The High Court instructed the Management to individually review each workman's case and, if deemed eligible, grant them the benefits specified in the Government Resolution. Consequently, the Workmen, among others, became entitled to these benefits. However, despite this court order, the Management failed to comply. Subsequently, the Workmen initiated a Civil Application against the Management for contempt. However, they withdrew this application upon receiving communication and assurances from the Management.

Following these events, the Management orally terminated the services of Workmen on October 1, 2015. Consequently, the Workmen filed a petition before the High Court challenging the oral termination by the Management. The Workmen argued that the oral termination should be declared null and void, and they should be reinstated with continuity in service, along with the entitlement to benefits under the Government Resolution of October 17, 1988.

The Government Resolution dated 17th October 1988 confers the following benefits:

(i) They are entitled to daily wages as per the prevailing Daily Wages. If there is presence of more than 240 days in first year, daily wagers are eligible for paid Sunday, medical allowance and national festival holidays.

(ii) Daily wagers and semi-skilled workers who has service of more than five years and less than 10 years are entitled for fixed monthly salary along with dearness allowance as per prevailing standard, for his working days. Such daily wagers will get two optional leave in addition to 14 misc. leave, Sunday leave and national festival holidays. Such daily wagers will also be eligible for getting medical allowance and deduction of provident fund.

(iii) Daily wagers and semi-skilled workers who has service of more than ten years but less than 15 years are entitled to get minimum pay scale at par with skilled worker along with dearness allowance as per prevailing standard, for his working days. Moreover, such daily wagers will get two optional leave in addition to 14 misc. leave, Sunday leave and national festival holidays. He/she will be eligible for getting medical allowance and deduction of provident fund.

(iv) Daily wagers and semi-skilled workers who has service of more than 15 years will be considered as permanent worker and such semi-skilled workers will get current pay scale of skilled worker along with dearness allowance, local city allowance and house rent allowance. They will get benefit as per the prevailing rules of gratuity, retired salary, general provident fund. Moreover, they will get two optional leave in addition to 14 misc. leave, 30 days earned leave, 20 days half pay leave, Sunday leave and national festival holidays. The daily wage workers and semi-skilled who have completed more than 15 years of their service will get one increment, two increments for 20 years service and three increments for 25 years in the current pay scale of skilled workers and their salary will be fixed accordingly.

Observations by the High Court:

The High Court held that the termination of services of Workmen without issuing any prior notice violates the principles of natural justice. Additionally, the High Court held that the termination was aimed at depriving the Workmen of the benefits entitled to them under the Government Resolution dated October 17, 1988. It held that such an act by the Management was illegal and contrary to the principles of natural justice. Therefore, the High Court held that the action of the Management in terminating the services of Workmen necessitates quashing and setting aside.

Furthermore, the High Court held that the letter issued by the Conservator of Forest failed to provide details regarding the basis upon which it concluded that Workmen had not completed 240 days of work within 5 years, which is a prerequisite for availing the benefits of the Government Resolution dated October 17, 1988.

Consequently, the High Court set aside and quashed the order by the Management and the letter dated issued by the Conservator of the Forest.

Therefore, the High Court directed the Management to reinstate the Workmen into service with all consequential benefits and continuity of service, though without back wages, from the date of its oral termination.

About the benefits of the Government Resolution dated October 17, 1988, the Workmen were instructed to submit appropriate representations to the Management, providing comprehensive details of their workdays as daily wagers within two weeks.

Subsequently, the Management was mandated to review the representations submitted by the Workmen, providing them with proper opportunity, and decide on the same within six weeks from the date of receipt of such representations, considering relevant court judgments and the specific circumstances of the present case.

Case Title: PWD and Forest Employees Union & Ors. vs State Of Gujarat & Ors.

LL Citation: 2024 LiveLaw (Guj) 67

Case No.: R/SPECIAL CIVIL APPLICATION NO. 7638 of 2016 With CIVIL APPLICATION (FOR DIRECTION) NO. 1 of 2018 In R/SPECIAL CIVIL APPLICATION NO. 7638 of 2016

Advocate for the Workmen: Mr Shalin Mehta Senior Advocate with Mr. Ninad P Shah with Aditi S Raol (8128) for the Petitioner(s) No. 1. Ms Vidhi J Bhatt (6155) for the Petitioner(s) No. 10,11,12,13,14,15,2,3,4,5,6,7,8,9

Advocate for the Management: Mr Jay Trivedi Agp for the Respondent(s) No. 1,2,3,4,5 Rule Served By Ds for the Respondent(s) No. 1,2,3,4,5

Click Here To Read/Download Order