The court rules that termination of a contractual employee must comply with incorporated statutory service rules, rejecting the State of Assam's appeal.
In a significant ruling, the Gauhati High Court dismissed an appeal by the State of Assam, thereby upholding the reinstatement of Ikbal Hussain Laskar, a contractual Project Officer with the Assam State Disaster Management Authority (ASDMA). The court underscored the imperative to adhere to statutory service rules when terminating contractual employees if such rules are explicitly incorporated in their employment contracts.
The division bench comprising Chief Justice Mr. Ashutosh Kumar and Justice Arun Dev Choudhury delivered the judgment on January 7, 2026. The appeal challenged a decision by a Single Judge from September 2024, which had intervened in the termination of Laskar's contract, directing his reinstatement.
Laskar's employment was terminated in November 2018 on allegations of unauthorized absence and gross indiscipline. The termination was executed without a departmental inquiry, despite the employment contract incorporating the Assam Services (Discipline & Appeal) Rules, 1964. This omission formed the crux of the respondent's challenge, asserting the necessity of a formal inquiry as per Rule 9 of the 1964 Rules.
The High Court emphasized that once an employer incorporates statutory service rules into an employment contract, those rules must be fully applied. The court rejected the State's argument that such rules do not apply rigorously to contractual employees, affirming that the incorporation of these rules has binding legal consequences.
The bench clarified that termination on grounds of misconduct, such as unauthorized absence, is inherently punitive and carries civil consequences. Therefore, it must not be misrepresented as mere non-renewal of a contract, especially when disciplinary rules apply.
Reinstating Laskar, the court granted the authorities the liberty to initiate fresh disciplinary proceedings or decide on the contract's renewal, ensuring actions align with both the contractual terms and fairness principles.
The judgment reaffirms the legal obligation of employers to follow procedural fairness when terminating employees, even in contractual engagements, thereby reinforcing the rights of contractual workers under statutory service rules.
Bottom Line:
Termination of contractual employees must adhere to the statutory service rules if the contract explicitly incorporates such rules.
Statutory provision(s): Assam Services (Discipline & Appeal) Rules, 1964
State of Assam v. Ikbal Hussain Laskar, (Gauhati)(DB) : Law Finder Doc Id # 2837944
