Bombay High Court Upholds Labour Rights in Landmark Judgment

Maharashtra Police Academy Ordered to Reinstate and Regularize Daily Wage Worker with Full Benefits

In a landmark decision, the Bombay High Court has upheld the rights of a daily wage worker, directing the Maharashtra Police Academy to reinstate Bharati Yashwant Salve, a former computer operator, with full benefits. This ruling comes as a significant endorsement of labour rights, emphasizing the importance of fair treatment and regularization of long-term temporary employees.

The case, presided over by Justice Milind N. Jadhav, centered around the classification of the Maharashtra Police Academy as an "industry" under the Industrial Disputes Act, 1947. The Academy had contended that it was exempt from such classification, arguing that it performed sovereign functions. However, the court found that the Academy engaged in non-sovereign activities, such as training private security personnel for fees and operating revenue-generating facilities like canteens and hostels.

The court's decision highlighted that the Academy's activities met the criteria of an "industry" as defined under Section 2(j) of the Act. It also recognized Salve as a "workman" under Section 2(s), having worked continuously for over 240 days annually for nearly eight years.

The judgment scrutinized the termination of Salve's employment, which occurred without the due process of notice or compensation, contravening Section 25F of the Act. The court deemed this termination as illegal and amounting to an unfair labour practice, reinforcing the necessity for employers to adhere to statutory requirements in retrenchment scenarios.

Additionally, the court underscored the responsibility of public institutions to ensure fair and lawful engagement practices, as highlighted in the recent Supreme Court judgment in Dharam Singh v. State of UP. It stressed that the State, as a constitutional employer, must organize its workforce on a sanctioned footing, emphasizing fairness, reasoned decision-making, and respect for the dignity of work.

With this ruling, the Maharashtra Police Academy has been instructed to reinstate Salve as a High Grade Stenographer, providing her with continuity in service, back wages, and the status of permanency. The court's directive serves as a crucial reminder of the legal protections afforded to workers and the obligations of employers to uphold these standards.

Bottom Line:

Industrial Disputes Act, 1947 - A training academy established to train police officers and other personnel, though performing certain sovereign functions, falls within the ambit of "industry" under the Industrial Disputes Act if it engages in activities like training private security personnel for fees, and operates facilities like canteens, libraries, and hostels generating revenue.

Statutory provision(s): Industrial Disputes Act, 1947 Sections 2(j), 2(s), 25F

Maharashtra Police Academy v. Bharati Yashwant Salve, (Bombay) : Law Finder Doc Id # 2794936