SUPREME COURT OF INDIA
PANKAJ MITHAL, R. MAHADEVAN, JJ.
Lenin Kumar Ray – Appellant
Versus
M/s. Express Publications (Madurai) Ltd. – Respondent
Civil Appeal No. 11709 of 2024 (Arising Out of SLP (C) No. 5660 of 2023)
WITH
The Management, M/s. Express Publications (Madurai) Ltd. – Appellant
Versus
Lenin Kumar Ray – Respondent
Civil Appeal No. 11710 of 2024 (Arising Out of SLP (C) No. 12876 of 2024)
Decided On : 21-10-2024
Employment - Workman - Industrial Disputes Act, 1947 - Section 2(s) - The court interpreted the definition of 'workman' under the I.D. Act, emphasizing the nature of duties over designation, leading to the conclusion that the employee did not qualify as a 'workman' due to his supervisory role and salary exceeding the threshold.
Fact of the Case:
The employee, initially appointed as Junior Engineer, was terminated without proper procedure. The Labour Court ruled in his favor, but the High Court partially overturned this, leading to appeals from both parties.
Finding of the Court:
The court found that the employee's role was supervisory and his salary exceeded the threshold for 'workman' status under the I.D. Act, thus he was not entitled to reinstatement or back wages.
Issues: Whether the employee qualifies as a 'workman' under section 2(s) of the I.D. Act and if the termination was lawful.
Ratio Decidendi: The definition of 'workman' hinges on the nature of duties performed, not merely on job title, and the employee's supervisory role disqualified him from this status.
Result: The appeal by the employee is dismissed, and the appeal by the management is allowed.
JUDGMENT :
R. MAHADEVAN, J.
1. Leave granted.
2. These two appeals arise from an order dated 04.04.2022 passed by the High Court of Orissa at Cuttack1 [Hereinafter shortly referred to as “the High Court”] in Writ Petition (Civil) No. 2083 of 2011, whereby, the High Court partly allowed the said writ petition filed by M/s. Express Publications (Madurai) Ltd.2 [For short “the management”] challenging the award dated 22.09.2010 passed by the Labour Court, Bhubaneswar3 [Hereinafter shortly referred to as “the Labour Court”] in I.D. Case No. 27 of 2007. By the impugned order, the High Court set aside the award of the Labour Court to the extent that the employee is to be reinstated and to be paid compensation of Rs.75,000/- in lieu of back wages, while upholding the finding of the Labour Court that the employee falls under the definition of “workman” as given in section 2(s) of the Industrial Disputes Act, 1947.4 [For short “the I.D. Act”]
3. Feeling aggrieved and being dissatisfied with the respective portion of the impugned order of the High Court, both the parties have preferred the instant appeals.
4. A few facts which are necessary for disposal of both the appeals, are as follows: The management is a newspaper establishment publishing a daily newspaper in English viz. New Indian Express having its publication unit at Bhubaneswar. The employee was initially appointed as Junior Engineer (Electronics and Communication)5 [For short “E&C”] by the management on 07.06.1997 and was subsequently, confirmed in the said post on 13.07.1998. He was thereafter promoted to the post of Assistant Engineer (E&C) with effect from 01.05.2000 and was regularised in the said post with effect from 01.05.2001. While so, he was relieved from service on 08.10.2003, by paying a sum of Rs.6,995.65 towards one month salary in lieu of notice. Aggrieved by the same, he approached the Labour authorities, who referred the matter for conciliation. After failure of the conciliation and based on the opinion of the appropriate authority that an industrial dispute exists between the parties, a reference was made, which culminated in I.D. Case No. 27 of 2007, in which, the Labour Court passed an award on 22.09.2010, reinstating the employee in service along with compensation of Rs.75,000/- in lieu of back wages, after having held that the employee was a “workman” in terms of section 2(s) of the I.D. Act. Challenging the same, the management filed the aforesaid writ petition, which was partly allowed by the High Court, in the terms as already stated in paragraph 2 supra. Therefore, the present Civil Appeals by both the parties.
5. The learned senior counsel appearing for the employee contended that the employee falls within the ambit of “workman” as per section 2(s) of the Act; he was terminated by the management without any reason; he was not given any opportunity before such termination nor there was any contract of service that his services will be terminated on 08.10.2003 and thus, there was a clear violation of provision of law in terminating the services of the employee. Taking note of the same, the Labour Court rightly passed the award in setting aside such illegal termination and directing the management to reinstate the employee in service. Without properly appreciating the same, the High Court set aside the part of the award viz. direction to the management to reinstate the employee in service with payment of lumpsum compensation in lieu of back wages, by the order impugned herein, which will have to be set aside.
6. Drawing our attention to the judgments of this Court compiled in the form of typed set of papers, the learned senior counsel for the employee made the following submissions:
K.C.P. Employees Association v. K.C.P. Ltd.
Southern Ispat Ltd. v. State of Kerala
S.K. Maini v. Carona Sahu Co. Ltd.
Ananda Bazar Patrika (P) Ltd. v. Workmen
Deepali Gundu Surwase v. Kranti Junior Adhyapak Mahavidyalaya
The court established that the classification of an employee as a 'workman' depends on the nature of their duties rather than their job title or designation.
The court ruled that the employee, despite managerial designations, was a 'workman' under the Industrial Disputes Act, 1947, and her termination was illegal due to lack of procedural compliance.
The court ruled that employees in managerial roles and earning above Rs.10,000 do not qualify as 'workmen' under Section 2(s) of the Industrial Disputes Act, reversing the Labour Court's decision.
The termination of the workman was deemed unjustified and punitive, leading to an increase in compensation from Rs.2,00,000 to Rs.4,00,000 based on the nature of his duties and the stigma attached to....
The unlawful termination of service without complying with statutory procedures mandates reinstatement and full back wages for the workman under the Industrial Disputes Act.
The burden of proof regarding the status of an employee as a 'workman' lies with the employee, not the employer, as per the Industrial Disputes Act.
Termination without notice or compensation violates the Industrial Disputes Act; recognition of continuous service applies despite temporary engagement gaps.
The designation of an employee does not determine their status as a workman; rather, the dominant nature of their work is the key criterion under the Industrial Disputes Act.
The main legal point established in the judgment is the interpretation of Section 2(s)(iv) of the Industrial Disputes Act, 1947, regarding the definition of a 'workman' and the requirement for follow....
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