SHRIPAL & ANR.versusNAGAR NIGAM, GHAZIABAD
- Citation
- 2025 INSC 144
- Decided
- 31 January 2025
- Disposal
- Disposed off
- Bench
- VIKRAM NATH
Holding
Termination of the workmen without compliance with Sections 6E and 6N of the U.P. Industrial Disputes Act, 1947 was illegal, entitling them to reinstatement, back wages and regularization.
Summary
The workmen, employed as gardeners in the Ghaziabad Nagar Nigam's horticulture department since the late 1990s, alleged that they were dismissed orally in July 2005 while a conciliation proceeding was pending, without notice or retrenchment compensation. They claimed the termination violated Sections 6E and 6N of the U.P. Industrial Disputes Act, 1947, and that they were in a de facto employer‑employee relationship despite the employer's assertion that they were contractor‑engaged casual workers. The High Court had partially modified Labour Court awards, ordering re‑engagement on daily wages, which the employer challenged. The Supreme Court examined the nature of the engagement, the employer's failure to produce contractor documents, and the employer's non‑compliance with statutory procedures, holding that the terminations were illegal. Consequently, the Court set aside the High Court's order, quashed the termination notices, ordered reinstatement with back wages (50% of the period of absence) and directed the employer to regularize the workmen within six months. The workmen's appeals were allowed and the employer's appeals dismissed.
Issues considered
- Whether the termination of the workmen during pendency of conciliation proceedings violated Section 6E of the U.P. Industrial Disputes Act, 1947.
- Whether the employer complied with Section 6N of the U.P. Industrial Disputes Act, 1947 in terminating the workmen.
- Whether the workmen were engaged directly by the Nagar Nigam or through a third‑party contractor, affecting their entitlement to reinstatement and back wages.
- Whether the ban on fresh recruitment in municipal corporations precludes regularization of long‑serving workmen.
Legislation cited
- U.P. Industrial Disputes Act, 1947s. 6E, s. 6N
Headnote
Issue for Consideration Whether the services of the appellant-workmen (gardeners) were terminated without complying with Sections 6E and 6N of the U.P. Industrial Disputes Act, 1947. Appellants, if entitled to reinstatement with back wages as also regularization of their services. – ss.6E, 6N – Non-compliance with: Held: The pattern of direct oversight and wage disbursement negates the stand of the Respondent-Employer that the Appellant- Workmen were “contractor’s personnel” – Appellants were pressing for regularization and proper
Subjects
Judgment
[2025] 1 S.C.R. 1427 : 2025 INSC 144
Shripal & Anr.
v.
Nagar Nigam, Ghaziabad
(Civil Appeal No. 8157 of 2024)
31 January 2025
[Vikram Nath* and Prasanna B. Varale, JJ.]
Issue for Consideration
Whether the services of the appellant-workmen (gardeners) were
terminated without complying with Sections 6E and 6N of the U.P.
Industrial Disputes Act, 1947. Appellants, if entitled to reinstatement
with back wages as also regularization of their services.
Headnotes†
U.P. Industrial Disputes Act, 1947 – ss.6E, 6N – Non-compliance
with:
Held: The pattern of direct oversight and wage disbursement
negates the stand of the Respondent-Employer that the Appellant-
Workmen were “contractor’s personnel” – Appellants were pressing
for regularization and proper wages through pending conciliation
proceedings, however, the Employer proceeded to discontinue
their services, without issuing prior notice or granting retrenchment
compensation – Discontinuation of the Appellants’ services, effected
without compliance with ss.6E and 6N was illegal – Appellants were
performing the same tasks of planting, pruning, general upkeep as
regular Gardeners – The principle of “equal pay for equal work”
cannot be casually disregarded when workers continuously served
for extended periods in roles resembling those of permanent
employees – Long-standing assignments under the Employer’s
direct supervision belie any notion that these were mere short-term
casual engagements – Employer’s plea of lack of an employer-
employee relationship is not supported by evidence – Furthermore,
reliance on a general “ban on fresh recruitment” cannot be used
to deny labor protections to long serving workmen – Uma Devi
cannot be used to justify exploitative engagements persisting for
years without the Employer undertaking legitimate recruitment –
Impugned order of the High Court, to the extent it confines the
* Author
1428 [2025] 1 S.C.R.
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Appellants to future daily-wage engagement without continuity or
meaningful back wages, is set aside – Orders/communications
terminating services, quashed – Respondent shall reinstate and
regularize the Appellants – Appellants to be treated as continuing
in service from the date of their termination, entitled to 50% of the
back wages in the terms directed. [Paras 10, 13, 11,18]
Labour Laws – Labour jurisprudence – Failure of Employer
to produce muster rolls – Adverse inference can be drawn
against the Employer:
Held: Failure of the Employer to furnish muster rolls in full despite
directions, leads to an adverse inference – Indian labour law strongly
disfavors perpetual daily-wage or contractual engagements in
circumstances where the work is permanent in nature – Morally and
legally, workers who fulfil ongoing municipal requirements year after
year cannot be dismissed summarily as dispensable, particularly
in the absence of a genuine contractor agreement. [Para 15]
Case Law Cited
Secretary, State of Karnataka v. Umadevi [2006] 3 SCR 953 :
(2006) 4 SCC 1 – held inapplicable.
Jaggo v. Union of India [2024] 12 SCR 1235 : 2024 SCC OnLine
SC 3826 – relied on.
List of Acts
U.P. Industrial Disputes Act, 1947.
List of Keywords
Sections 6E, 6N of the U.P. Industrial Disputes Act, 1947; Gardeners;
Permanent employees; Horticulture Department; Ghaziabad Nagar
Nigam; Municipality; Termination; Reinstatement; Back wages;
Regularization of service; Direct oversight; Wage disbursement;
Employer-employee relationship; Employer’s direct supervision;
Casual engagements/employees; Municipal functions; Pending
conciliation proceedings; Discontinuation of services; “equal pay
for equal work”; Contractor; Third-party contractor; Daily-wage
engagement; Daily-wage; Contractual engagements; Muster rolls;
Contractual Hiring; Public Employment; Prior notice; Retrenchment
compensation; Municipal duties; Permanent posts; Labour laws;
Labour jurisprudence; “ban on fresh recruitment”.
[2025] 1 S.C.R. 1429
Shripal & Anr. v. Nagar Nigam, Ghaziabad
Case Arising From
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 8157 of 2024
From the Judgment and Order dated 01.03.2019 of the High Court
of Judicature at Allahabad in WC No. 13381 of 2012
With
Civil appeal No(s). 8158-8179 Of 2024
Appearances for Parties
Ms. Amiy Shukla, Shakti Vardhan, Shantanu Kumar, Malak
Manish Bhatt, Ms. Neeha Nagpal, Ms. Sukanya Joshi, Advs. for
the Appellants.
Shakti Vardhan, Ms. Amiy Shukla, Shantanu Kumar, Malak Manish
Bhatt, Ms. Amiy Shukla, Shakti Vardhan, Ms. Dipa Rakesh Kumar,
Devanshu Yadav, Kartik Yadav, Gautam Awasthi, Ms. Anzu. K.
Varkey, Girijesh Pandey, Dr. M P Singh, Ms. Alpana Pandey, Ajay
Kumar Tiwari, Avanish Pandey, Sriram P, Advs. for the Respondent.
Judgment / Order of the Supreme Court
Judgment
Vikram Nath, J.
1. These appeals, one filed by certain workmen (hereinafter, the
workmen in all the appeals are referred to as the Appellant Workmen)
and the other by the employer department i.e., Ghaziabad Nagar
Nigam (hereinafter referred to as the Respondent Employer as the
employer in all the appeals), arise out of a common final judgment and
order dated 01.03.2019, passed by the High Court of Judicature at
Allahabad in Writ Petition No. 13381 of 2012 and connected matters.
2. By the impugned judgment, the High Court considered the legality
of two conflicting sets of awards passed by the Labour Court,
Ghaziabad—one set allowing reinstatement of some workmen with
partial back wages, and another set denying relief altogether to other
similarly placed workmen.
3. The factual matrix leading up to the appeal before us is as follows:
3.1 The Appellant Workmen claim to have been engaged as
Gardeners (Malis) in the Horticulture Department of the
1430 [2025] 1 S.C.R.
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Respondent Employer, Ghaziabad Nagar Nigam, since the year
1998 (in some instances, since 1999). According to them, they
continuously discharged horticultural and maintenance duties—
such as planting trees, maintaining parks, and beautifying
public spaces—under the direct supervision of the Respondent
Employer. They further allege that no formal appointment letters
were ever issued to them, and that they were persistently
denied minimum wages, weekly offs, national holidays, and
other statutory benefits.
3.2 In 2004, the Appellant Workmen, along with many other similarly
situated employees, raised an industrial dispute (C.B. Case
No. 6 of 2004) before the Conciliation Officer at Ghaziabad,
seeking regularization of their services and the requisite statutory
benefits. They contend that, upon learning of this demand,
the Respondent Employer began delaying their salaries and
subjected them to adverse working conditions. Eventually,
around mid-July 2005, the services of numerous workmen were
allegedly terminated orally, without any notice, written orders,
or retrenchment compensation.
3.3 Since the above termination took place during the pendency
of the conciliation proceedings, the Appellant Workmen argue
it violated Section 6E of the U.P. Industrial Disputes Act, 1947.
Consequently, the State Government referred the disputes
concerning both (i) regularization and (ii) legality of the alleged
termination, to the Labour Court, Ghaziabad for adjudication.
3.4 The Labour Court proceeded to decide the references vide
two orders:
(i) Order dated 03.06.2011: In numerous adjudication cases
(e.g., Adjudication Case Nos. 448, 451, 467 of 2006, etc.),
the Labour Court passed awards holding the terminations
illegal for want of compliance with Section 6N of the U.P.
Industrial Disputes Act, 1947, and directed reinstatement
with 30% back wages.
(ii) Order dated 11.10.2011: However, in about 41 other
adjudication cases (e.g., Adjudication Case Nos. 269,
270, 272, etc.), the Labour Court arrived at a contrary
conclusion, dismissing the claims on the finding that the
concerned workmen had not been engaged directly by the
Nagar Nigam but rather through a contractor, and hence
[2025] 1 S.C.R. 1431
Shripal & Anr. v. Nagar Nigam, Ghaziabad
had no enforceable right to reinstatement or regularization
against the Respondent Employer.
3.5 Aggrieved by the adverse portion of the awards (i.e., those
granting reinstatement), the Respondent Employer, Ghaziabad
Nagar Nigam, filed several writ petitions before the High Court of
Judicature at Allahabad, challenging the Labour Court’s findings.
On the other hand, the workmen whose claims were dismissed
by the other set of awards also approached the High Court by
filing their own writ petitions. All these writ petitions were heard
together, culminating in the common judgment dated 01.03.2019,
which partly modified the Labour Court’s conclusions.
3.6 Through the impugned judgment, the High Court held that while
the Labour Court was correct in exercising jurisdiction under
the U.P. Industrial Disputes Act (since municipalities could be
treated as “industry”), there remained factual complexities as to
whether the workmen were genuinely on the rolls of the Nagar
Nigam or were provided by contractors. The High Court also
noted that the State Government had, by notifications/orders,
placed a ban on fresh recruitments in Municipal Corporations,
thereby restricting direct appointments to any post. Ultimately,
the High Court partially modified the relief granted, directing re-
engagement of the workmen on daily wages, with pay equivalent
to the minimum in the regular pay scale of Gardeners, while
allowing future consideration of their regularization if permissible
by law.
4. Both the Appellant Workmen and the Respondent Employer have
now approached this Court by way of Special Leave Petitions. The
workmen primarily seek full reinstatement with back wages and a
direction to secure their regularization, whereas the Respondent
Employer seeks to quash the modifications ordered by the High
Court on the ground that the High Court exceeded its jurisdiction
by granting partial relief akin to regular employees, contrary to
constitutional provisions and the State’s ban on recruitment.
5. Learned counsel for the Appellant Workmen made the following
submissions:
I. Continuous Service & Comparable Duties: The Appellant
Workmen had continuously discharged horticultural and
maintenance duties—like planting trees, upkeep of public parks,
1432 [2025] 1 S.C.R.
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and general beautification—under the direct supervision and
control of the Respondent Employer for periods often exceeding
a decade. They insist such long-standing, continuous work
parallels that of permanent Gardeners.
II. Direct Engagement & Wage Disbursement: They aver that
their wages, though inadequate, were paid directly by the
Horticulture Department of the Respondent Employer, nullifying
the Employer’s claim of contractual hiring. Muster rolls and
internal notes are cited to show direct employer-employee
relations.
III. Illegal Termination: Alleging violation of Sections 6E and 6N of
the U.P. Industrial Disputes Act, 1947, the Appellant Workmen
maintain their abrupt termination in July 2005 (during pendency
of conciliation proceedings) was devoid of due process and
statutory payments, rendering it patently illegal.
IV. Entitlement to Reinstatement & Regularization: Given their
long service and the principle of “equal pay for equal work,”
the Appellant Workmen submit they deserve full reinstatement
with back wages and a legitimate pathway to regularization, as
opposed to the partial relief of mere daily-wage re-engagement
prescribed by the High Court.
6. On the other, the learned counsel for the Respondent Employer,
Ghaziabad Nagar Nigam made the following submissions:
I. Compliance with Constitutional Requirements: Emphasizing
the constitutional scheme of public employment, it is urged
that there was (and remains) a ban on fresh recruitment in
Municipal Corporations, and no proper selection process was
ever followed to appoint the Workmen on any sanctioned posts.
II. No Direct Employer-Employee Relationship: The Respondent
Employer contends that all horticulture work was carried
out through independent contractors appointed via tender
processes. It claims any partial wage documentation cited by
the Workmen fails to establish direct engagement.
III. Inapplicability of Regularization: Relying on Secretary,
State of Karnataka vs. Umadevi1 , it is asserted that no daily
1 (2006) 4 SCC 1
[2025] 1 S.C.R. 1433
Shripal & Anr. v. Nagar Nigam, Ghaziabad
wager can claim permanent absorption without adherence to
constitutional requirements and availability of duly sanctioned
vacancies.
IV. Inadequate Proof of 240 Days’ Service: The Respondent
Employer points out that the Workmen did not convincingly
demonstrate they completed 240 days of continuous work in
any calendar year, thus undermining the assertion that their
cessation from service was illegal.
V. Challenge to Modified Relief: Finally, it argues that the
High Court’s direction to pay minimum-scale wages and to
consider the Workmen for future regularization oversteps legal
boundaries, disregards the recruitment ban, and fosters an
impermissible avenue of public employment. The Respondent
Employer, therefore, seeks the quashing of the impugned
judgment.
7. Having heard the arguments and submissions of the learned
counsel for the parties and having perused the record, this Court
is of the considered opinion that the nature of engagement of the
Appellant Workmen, the admitted shortage of Gardeners, and the
circumstances under which their services were brought to an end,
merit closer scrutiny.
8. It is undisputed that, while the Appellant Workmen were pressing
for regularization and proper wages through pending conciliation
proceedings, the Respondent Employer proceeded to discontinue
their services, without issuing prior notice or granting retrenchment
compensation. At this juncture, it is to have a look at the requirements
of Section 6E of the U.P. Industrial Disputes Act, 1947 which has
been reproduced hereunder:-
“6E. [ Conditions of service, etc. to remain unchanged in
certain circumstances during the pendency of proceedings.
[Inserted by U.P. Act No. 1 of 1957.]
(1) During the pendency of any conciliation proceeding
before a Conciliation Officer or a Board or of any proceeding
before a Labour Court or Tribunal in respect of an industrial
dispute, no employer shall, -
(a) in regard to any matter connected with the dispute, alter,
to the prejudice of the workmen concerned in such dispute,
1434 [2025] 1 S.C.R.
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the conditions of service applicable to them immediately
before the commencement of such proceeding, or
(b) for any misconduct connected with the dispute,
discharge or punish, whether by dismissal or otherwise
any workman concerned in such dispute save with the
express permission in writing of the authority before which
the proceeding is pending.
(2) During the pendency of any such proceeding in respect
of an industrial dispute, the employer may, in accordance
with the standing orders applicable to a workman concerned
in such dispute, -
(a) alter, in regard to any matter not connected with
the dispute, the conditions of service applicable to that
workman immediately before the commencement of such
proceeding, or
(b) for any misconduct not connected with the dispute,
discharge or punish, whether by dismissal or otherwise :
Provided that no such workman shall be discharged or
dismissed, unless he has been paid wages for one month
and an application has been made by the employer to
the authority before which the proceeding is pending for
approval of the action taken by the employer.
(3) Notwithstanding anything contained in sub-section
(2) no employer shall during the pendency of any such
proceeding in respect of an industrial dispute, take any
action against any protected workman concerned in such
dispute, -
(a) by altering, to the prejudice of such protected workman,
the conditions of service applicable to him immediately
before the commencement of such proceeding, or
(b) by discharging or punishing, whether by dismissal or
otherwise, such protected workman, such with the express
permission in writing of the authority before which the
proceeding is pending.
Explanation. - For the purposes of this sub-section, a
‘protected workman’ in relation to an establishment, means
[2025] 1 S.C.R. 1435
Shripal & Anr. v. Nagar Nigam, Ghaziabad
a workman who, being an officer of a registered trade union
connected with the establishment, is recognized as such
in accordance with rules made in this behalf.
(4) In every establishment, the number of workmen to
be recognized as protected workmen for the purposes
of sub-section (3) shall not exceed one per cent of the
total number of workmen employed therein subject to
a minimum number of five protected workmen and a
maximum number of one hundred protected workmen
and for the aforesaid purpose, the State Government may
make rules providing for the distribution of such protected
workmen among various trade unions, if any, connected
with the establishment and the manner in which they may
be chosen and recognized as protected workmen.
(5) Where an employer makes an application to a Board,
Labour Court or Tribunal under the proviso to sub-section
(2) for approval of the action taken by him, the authority
concerned shall, without delay, hear such application and
pass, as expeditiously as possible, such order in relation
thereto as it deems fit.”
9. On a plain reading of this section, we can deduce that any unilateral
alteration in service conditions, including termination, is impermissible
during the pendency of such proceedings unless prior approval is
obtained from the appropriate authority. The record in the present
case does not indicate that the Respondent Employer ever sought
or was granted the requisite approval. Prima facie, therefore, this
conduct reflects a deliberate attempt to circumvent the lawful claims
of the workmen, particularly when their dispute over regularization
and wages remained sub judice.
10. The Respondent Employer consistently labelled the Appellant
Workmen as casual employees (or workers engaged through an
unnamed contractor), yet there is no material proof of adherence to
Section 6N of the U.P. Industrial Disputes Act, 1947, which mandates
a proper notice or wages in lieu thereof as well as retrenchment
compensation. In this context, whether an individual is classified
as regular or temporary is irrelevant as retrenchment obligations
under the Act must be met in all cases attracting Section 6N. Any
termination thus effected without statutory safeguards cannot be
undertaken lightly.
1436 [2025] 1 S.C.R.
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11. Furthermore, the Employer’s stance that there was never a direct
employer-employee relationship is wholly unsubstantiated. If, in
fact, the Appellant Workmen had been engaged solely through
a contractor, the Employer would have necessarily maintained
some form of contract documentation, license copies, or invoices
substantiating the contractor’s role in hiring, paying, and supervising
these workers. However, no such documents have been placed
on record. Additionally, the Employer has failed to establish that
wages were ever paid by any entity other than its own Horticulture
Department, which strongly indicates direct control and supervision
over the Workmen’s day-to-day tasks is a hallmark of an employer-
employee relationship. Had there been a legitimate third-party
contractor, one would expect to see details such as tender notices,
contract agreements, attendance records maintained by the
contractor, or testimony from the contractor’s representatives. The
absence of these crucial elements undermines the Employer’s claim
of outsourced engagement. In fact, it appears that the Workmen were
reporting directly to the Horticulture Department officials, receiving
instructions on their duties, and drawing wages issued under the
Municipality’s authority. This pattern of direct oversight and wage
disbursement substantially negates the narrative that they were
“contractor’s personnel.” Consequently, the discontinuation of their
services carried out without compliance with statutory obligations
pertaining to notice, retrenchment compensation, or approval under
Section 6E of the U.P. Industrial Disputes Act, stands on precarious
ground. The very foundation of the Employer’s defense (i.e., lack of
an employer-employee relationship) is not supported by any credible
or contemporaneous evidence.
12. The evidence, including documentary material and undisputed facts,
reveals that the Appellant Workmen performed duties integral to the
Respondent Employer’s municipal functions specifically the upkeep
of parks, horticultural tasks, and city beautification efforts. Such
work is evidently perennial rather than sporadic or project-based.
Reliance on a general “ban on fresh recruitment” cannot be used
to deny labor protections to long-serving workmen. On the contrary,
the acknowledged shortage of Gardeners in the Ghaziabad Nagar
Nigam reinforces the notion that these positions are essential and
ongoing, not intermittent.
13. By requiring the same tasks (planting, pruning, general upkeep)
from the Appellant Workmen as from regular Gardeners but still
[2025] 1 S.C.R. 1437
Shripal & Anr. v. Nagar Nigam, Ghaziabad
compensating them inadequately and inconsistently the Respondent
Employer has effectively engaged in an unfair labour practice. The
principle of “equal pay for equal work,” repeatedly emphasized by
this Court, cannot be casually disregarded when workers have
served for extended periods in roles resembling those of permanent
employees. Long-standing assignments under the Employer’s direct
supervision belie any notion that these were mere short-term casual
engagements.
14. The Respondent Employer places reliance on Umadevi (supra)2
to contend that daily-wage or temporary employees cannot claim
permanent absorption in the absence of statutory rules providing
such absorption. However, as frequently reiterated, Uma Devi itself
distinguishes between appointments that are “illegal” and those that
are “irregular,” the latter being eligible for regularization if they meet
certain conditions. More importantly, Uma Devi cannot serve as a
shield to justify exploitative engagements persisting for years without
the Employer undertaking legitimate recruitment. Given the record
which shows no true contractor-based arrangement and a consistent
need for permanent horticultural staff the alleged asserted ban on
fresh recruitment, though real, cannot justify indefinite daily-wage
status or continued unfair practices.
15. It is manifest that the Appellant Workmen continuously rendered
their services over several years, sometimes spanning more than a
decade. Even if certain muster rolls were not produced in full, the
Employer’s failure to furnish such records—despite directions to
do so—allows an adverse inference under well-established labour
jurisprudence. Indian labour law strongly disfavors perpetual daily-
wage or contractual engagements in circumstances where the
work is permanent in nature. Morally and legally, workers who fulfil
ongoing municipal requirements year after year cannot be dismissed
summarily as dispensable, particularly in the absence of a genuine
contractor agreement. At this juncture, it would be appropriate to recall
the broader critique of indefinite “temporary” employment practices
as done by a recent judgement of this court in Jaggo v. Union of
India3 in the following paragraphs:
2 (2006) 4 SCC 1.
3 2024 SCC OnLine SC 3826
1438 [2025] 1 S.C.R.
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“22. The pervasive misuse of temporary employment
contracts, as exemplified in this case, reflects a broader
systemic issue that adversely affects workers’ rights
and job security. In the private sector, the rise of the gig
economy has led to an increase in precarious employment
arrangements, often characterized by lack of benefits,
job security, and fair treatment. Such practices have
been criticized for exploiting workers and undermining
labour standards. Government institutions, entrusted
with upholding the principles of fairness and justice, bear
an even greater responsibility to avoid such exploitative
employment practices. When public sector entities engage
in misuse of temporary contracts, it not only mirrors the
detrimental trends observed in the gig economy but also
sets a concerning precedent that can erode public trust
in governmental operations.
………
25. It is a disconcerting reality that temporary employees,
particularly in government institutions, often face
multifaceted forms of exploitation. While the foundational
purpose of temporary contracts may have been to address
short-term or seasonal needs, they have increasingly
become a mechanism to evade long-term obligations owed
to employees. These practices manifest in several ways:
• Misuse of “Temporary” Labels: Employees engaged
for work that is essential, recurring, and integral to
the functioning of an institution are often labelled
as “temporary” or “contractual,” even when their
roles mirror those of regular employees. Such
misclassification deprives workers of the dignity,
security, and benefits that regular employees are
entitled to, despite performing identical tasks.
• Arbitrary Termination: Temporary employees are
frequently dismissed without cause or notice, as
seen in the present case. This practice undermines
the principles of natural justice and subjects workers
to a state of constant insecurity, regardless of the
quality or duration of their service.
[2025] 1 S.C.R. 1439
Shripal & Anr. v. Nagar Nigam, Ghaziabad
• Lack of Career Progression: Temporary employees
often find themselves excluded from opportunities
for skill development, promotions, or incremental pay
raises. They remain stagnant in their roles, creating
a systemic disparity between them and their regular
counterparts, despite their contributions being equally
significant.
• Using Outsourcing as a Shield: Institutions
increasingly resort to outsourcing roles performed
by temporary employees, effectively replacing one set
of exploited workers with another. This practice not
only perpetuates exploitation but also demonstrates
a deliberate effort to bypass the obligation to offer
regular employment.
• Denial of Basic Rights and Benefits: Temporary
employees are often denied fundamental benefits
such as pension, provident fund, health insurance, and
paid leave, even when their tenure spans decades.
This lack of social security subjects them and their
families to undue hardship, especially in cases of
illness, retirement, or unforeseen circumstances.”
16. The High Court did acknowledge the Employer’s inability to justify
these abrupt terminations. Consequently, it ordered re-engagement
on daily wages with some measure of parity in minimum pay.
Regrettably, this only perpetuated precariousness: the Appellant
Workmen were left in a marginally improved yet still uncertain status.
While the High Court recognized the importance of their work and
hinted at eventual regularization, it failed to afford them continuity of
service or meaningful back wages commensurate with the degree
of statutory violation evident on record.
17. In light of these considerations, the Employer’s discontinuation of the
Appellant Workmen stands in violation of the most basic labour law
principles. Once it is established that their services were terminated
without adhering to Sections 6E and 6N of the U.P. Industrial Disputes
Act, 1947, and that they were engaged in essential, perennial duties,
these workers cannot be relegated to perpetual uncertainty. While
concerns of municipal budget and compliance with recruitment rules
merit consideration, such concerns do not absolve the Employer
1440 [2025] 1 S.C.R.
Supreme Court Reports
of statutory obligations or negate equitable entitlements. Indeed,
bureaucratic limitations cannot trump the legitimate rights of workmen
who have served continuously in de facto regular roles for an
extended period.
18. The impugned order of the High Court, to the extent they confine
the Appellant Workmen to future daily-wage engagement without
continuity or meaningful back wages, is hereby set aside with the
following directions:
I. The discontinuation of the Appellant Workmen’s services,
effected without compliance with Section 6E and Section 6N
of the U.P. Industrial Disputes Act, 1947, is declared illegal.
All orders or communications terminating their services are
quashed. In consequence, the Appellant Workmen shall be
treated as continuing in service from the date of their termination,
for all purposes, including seniority and continuity in service.
II. The Respondent Employer shall reinstate the Appellant
Workmen in their respective posts (or posts akin to the duties
they previously performed) within four weeks from the date of
this judgment. Their entire period of absence (from the date
of termination until actual reinstatement) shall be counted for
continuity of service and all consequential benefits, such as
seniority and eligibility for promotions, if any.
III. Considering the length of service, the Appellant Workmen shall
be entitled to 50% of the back wages from the date of their
discontinuation until their actual reinstatement. The Respondent
Employer shall clear the aforesaid dues within three months
from the date of their reinstatement.
IV. The Respondent Employer is directed to initiate a fair and
transparent process for regularizing the Appellant Workmen
within six months from the date of reinstatement, duly considering
the fact that they have performed perennial municipal duties
akin to permanent posts. In assessing regularization, the
Employer shall not impose educational or procedural criteria
retroactively if such requirements were never applied to the
Appellant Workmen or to similarly situated regular employees
in the past. To the extent that sanctioned vacancies for such
[2025] 1 S.C.R. 1441
Shripal & Anr. v. Nagar Nigam, Ghaziabad
duties exist or are required, the Respondent Employer shall
expedite all necessary administrative processes to ensure these
longtime employees are not indefinitely retained on daily wages
contrary to statutory and equitable norms.
19. In view of the above, the appeal(s) filed by the workmen are allowed,
whereas the appeal(s) filed by the Nagar Nigam Ghaziabad are
dismissed.
20. All pending applications stand disposed of. No orders as to costs.
Result of the case: Appeals disposed of.
†
Headnotes prepared by: Divya Pandey
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