Interpretation of retrenchment under the Industrial Disputes Act and entitlement to deemed continuous service based on 240 days of service within the last 12 calendar months.

( 1 ) THIS writ petition challenges the award dated 17th April 2003 delivered by the Labour Court No. 1 by which the petitioner s services were held to be terminated during the period of probation and thus he was held to be governed under the exception to the definition of retrenchment under Section 2 (oo) (bb) of the industrial DISPUTES ACT, 1947 (hereinafter referred to as the Act ). The said section reads as follows:

2 (OO) "retrenchment" means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action but does not include-- -. . . . . . . . . . . (bb) termination of the service of a workman as a result of the non-renewal of the contract of employment between the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein; or. . . . . . . . . . . . . . . .

( 2 ) THE petitioner was working as a peon with the respondents w. e. f. 12th september 1989 and worked upto 18th June 1990 continuously and without any break. He had worked as daily wager and on 8th May 1990 he was issued an appointment letter. He was working satisfactorily as daily wager. The relevant clause in the said clause relied upon and extracted by the Labour Court reads as follows:

YOU will be on probation for a period of one year which may be extended at the absolute discretion of the management. On satisfactory completion of the period of probation, your services will be confirmed in writing

( 3 ) THERE was no charge sheet or show cause as the termination was termed as arbitrary and illegal in the statement of claim filed by the petitioner. On 14th January 2001 the reference for industrial adjudication was made on the following terms:

WHETHER the services of Shri Satya Prakash have been terminated illegally and/or unjustifiably by the management and,if so, to what relief is he entitled and what directions are necessary in this respect?

( 4 ) THE Tribunal has relied upon section 2 (oo) and held that this was not retrenchment under the Act and found that the termination under Section 2 (oo) (bb) of the Act was governed under exception to Section 2 (oo) of the Act. Consequently the claim of the petitioner herein was rejected.

( 5 ) IT was this award dated 17th April 2003 which was challenged in the present petition by the petition who has contended that the Tribunal has lost sight of the definition of retrenchment under Section 2 (oo) which is extracted hereinabove.

( 6 ) LEARNED counsel for the respondent has also relied upon Section 2 (oo) (bb) of the Act and has thus relied upon the fact that the petitioner has not completed services for a period of calender year i. e. 12 months and accordingly was not entitled to the benefit of Section 25 of the Act.

( 7 ) IN my view the plea relating to Section 2 (oo) (bb) cannot be attracted in the present case. This section stipulates that the termination of the services of the workman as a result of the non renewal of the contract of employment between the employer and the workman concerned on the expiry of such contract under a stipulation in that behalf contained therein. The Tribunal has relied upon the fact that since the termination was under clause 3 of Ex. MW 1/1 which provided that the services can be terminated 24 hours notice, the petitioner was not entitled to avail of the benefit of Section 25 F of Act. Thus, the question which arose for discussion that clause 3 provided for termination of service by giving 24 hours notice. The said clause reads as under:

3. Your services can be terminated by giving 24 hours notice during the period of probation. After confirmation your services may be terminated by giving one month s notice or one month s salary in lieu thereof or in case you desire to leave the services of the Council you shall have to give one month s notice in writing.

( 8 ) THE provisions of section 25f of the Act are a