Punjab and Haryana High Court Sets Precedent by Declaring Exploitative Employment Undertakings Void

Landmark Judgment Emphasizes Constitutional Guarantees of Fairness and Equality in Employer-Employee Relations

In a landmark judgment, the Punjab and Haryana High Court has ruled that exploitative undertakings extracted from employees by employers, demanding the forfeiture of statutory rights, are void ab initio. The judgment was delivered in the case of Ranjit Singh v. State of Punjab, where the court underscored the constitutional principles of fairness, equality, and non-arbitrariness, marking a significant win for employee rights.

The case involved Ranjit Singh, a Tubewell Operator with the Municipal Council, Khanna, whose services were terminated unjustly without a show cause notice. Following a prolonged legal battle, Singh was reinstated by an Industrial Tribunal's award, which directed the continuation of service and payment of back wages. However, the Council reinstated him only after he agreed to sign an affidavit, waiving his claim to arrears and past service benefits.

Justice Harpreet Singh Brar, presiding over the case, highlighted that such undertakings obtained under duress violate statutory rights and are contrary to the employer's constitutional obligations. The judgment emphasized that public employers must adhere to higher standards of fairness and cannot arbitrarily deny employees their legal rights.

The court relied on various precedents, including the Punjab Civil Service Rules and judgments from higher courts, to reinforce the notion that service rendered prior to termination must be counted for pensionary benefits. It criticized the Council's arbitrary refusal to consider Singh's past service, deeming it violative of Articles 14 and 21 of the Constitution, which protect against arbitrary state actions and uphold the right to livelihood.

Justice Brar further noted the imbalance of power between employers and employees, stressing that public employers should serve as model examples of fairness and non-arbitrariness. The judgment underscored the importance of adhering to a fair procedure established by law, preventing arbitrary abuse of power, and maintaining constitutional guarantees.

In conclusion, the High Court set aside the impugned order denying Singh his rightful benefits, directing the respondents to count his past service towards regularization and pension calculation within three months. This decision sets a significant precedent, reinforcing employee rights against exploitative practices in the workplace.

Bottom Line:

Service Law - Exploitative undertakings taken from employees under duress, to forgo statutory rights, are void ab initio. Employer's actions must align with constitutional guarantees of fairness, equality, and non-arbitrariness. 

Statutory provision(s): Constitution of India Articles 14, 16, 21; Indian Contract Act, 1872 Sections 16, 19A, 23; Punjab Civil Service Rules

Ranjit Singh v. State of Punjab, (Punjab And Haryana) : Law Finder Doc Id # 2785830