Court Dismisses Petition Against Reinstatement, Emphasizing Compliance with Industrial Disputes Act
Jaipur, April 15, 2026 - In a significant ruling, the Rajasthan High Court, Jaipur Bench, dismissed a writ petition filed by the Sarpanch of Gram Panchayat Thated, challenging the reinstatement of a daily wage worker. The court affirmed the Labour Court's decision, emphasizing the necessity of adhering to Section 25-F of the Industrial Disputes Act, 1947, before terminating the services of daily wage employees.
The case revolved around the termination of Shri Banshi Lal, who was employed on a daily wage basis by the former Sarpanch, albeit without the proper authority. The Gram Panchayat, citing Section 9 of the Rajasthan (Regulation of Appointments to Public Services and Rationalisation of Staff) Act, 1999, argued that the initial engagement was illegal, thus justifying the termination.
However, the court underscored that while the Act of 1999 bars regularisation of daily wage employees, it mandates compliance with the retrenchment procedures outlined in the Industrial Disputes Act. The Labour Court had previously ordered reinstatement, citing the Gram Panchayat's failure to adhere to these procedures.
Justice Munnuri Laxman, presiding over the case, noted that the petitioner had not followed the requisite steps under Section 25-F, which necessitates notice and compensation before retrenchment. Consequently, the Rajasthan High Court found no merit in the petitioner's arguments and upheld the Labour Court's award for reinstatement.
The ruling serves as a reminder to employers about the legal protections afforded to daily wage workers under the Industrial Disputes Act, despite the constraints on regularisation imposed by state legislation.
Bottom Line:
Daily wage employees cannot claim regularisation of services under Section 9 of the Rajasthan (Regulation of Appointments to Public Services and Rationalisation of Staff) Act, 1999, and their services can be terminated with due notice. However, compliance with Section 25-F of the Industrial Disputes Act, 1947 is mandatory in cases of retrenchment.
Statutory provision(s): Industrial Disputes Act, 1947 Section 25-F, Rajasthan (Regulation of Appointments to Public Services and Rationalisation of Staff) Act, 1999 Section 9
