Workmen Challenging Their Alleged Termination Can Be Directed To Deposit Ex-Gratia Compensation Until Final Disposal: Gujarat High Court

The Gujarat High Court has held that where the disengagement of workmen by an employer is under dispute, the former claiming illegal termination and the latter asserting voluntary resignation arrangement, the Labour Court may direct deposit of ex-gratia amount in the interim.

Justice Biren Vaishnav thus upheld a Labour Court's decision directing the workmen to deposit the ex-gratia amount until final disposal of the dispute between the parties.

The Bench was hearing a petition whereby the workmen had challenged their purported termination from the Respondent-employer.

The Respondent, per contra, submitted that it is not termination that was the result of the end of an employer-employee relationship between the parties, but a voluntary resignation pursuant to which an amount of compensation / ex-gratia payment was accepted by the workmen.

The Single Judge Bench reasoned that even though the Petitioners are correct that the order of the Division Bench cited by the Respondent pertained to voluntary retirement, the Labour Court was yet to adjudicate whether 'retrenchment' was voluntary or not.

Case No.: C/SCA/21086/2019