Termination of a workman on a contractual basis may not constitute retrenchment if the employment is of a permanent nature, and unfair labor practices may warrant compensation instead of reinstatement.

JUDGMENT :

M. K. Thakker, J.

1. Rule returnable forthwith. Learned advocate Mr.Aakash Modi waives service of Rule on behalf of respondent.

2. With the consent of both the parties heard finally.

3. Being aggrieved and dissatisfied with the order passed by the learned Presiding Officer, Labour Court, Ahmedabad dated 14.02.2020 in Reference T.No.1202 of 2003 whereby, the learned Presiding Officer, Labour Court has allowed the reference partly by declaring the termination of the respondent-workman is illegal and directed the petitioner to reinstate the respondent-workman with 30% back wages with continuity of services.

4. The gist of the petition is as under:

4.1. The respondent workman has initially appointed as floorboy by Gujarat State Handicrafts Development Corporation Ltd. from 26.06.1992 to 25.06.1993. He was appointed on contractual bases for the period of 2 years from 01.03.1994 in Gurjari Emporium at Madras by contractual appointment order dated 18.02.1994. The said store is for development of handloom and handicraft products. On completion of the above contractual period again the respondent-workman by contractual appointment order dated 22.04.1996 appointed as respondent-workman for the period of 1 year on contractual basis. Gurjari Emporium, Madras communicated to its Gandhinagar office vide communication dated 28.08.1996 that respondent-workman who is appointed on contractual basis is not coming to the office from 26.08.1996 and informed further that he has left to his native place without informing the office and without having sanctioned of any leave. The Personal Manager by letter dated 15-18.10.1996 informed to the Manager, Gurjari Emporium, Madras to clarify that whether the respondent-workman joined his duty after leave on 26.08.1996 to 07.09.1996 and to inform whether he is on duty or not. It was further requested to send monthly record of contractual staff of Gurjari Emporium, Madras. The workman did not report to its duty since 19.10 1996 therefore, vide communication dated 15 – 17.02.1997 the respondent-workman was asked to give his explanation. Thereafter, the contractual appointment was renewed for the period of 1 year from 01.03.1997 vide order dated 26– 29.03.1997. On 18.04.1997 the Gurjari Emporium, Madras informed that though contractual appointment has been renewed but they did not receive any information from the workman about joining the office. The respondent-workman was informed vide letter dated 02.05.1997 that in spite of renewal of his contractual appointment he did not join his service due to which the office would be compelled to cancel his contractual appointment order. Thereafter, Gurjari Emporium, Madras by communication dated 26.05.1997 informed that the respondent workman has submitted joining report on 19.05.1997 and subsequently, Zonal Manager, Chennai vide letter dated 08.11.1998 informed that respondent-workman goes on long leaves and there was no productivity from him in the office and his services are not required. Considering the above communication by office order dated 3.12.1998 respondent workman was transferred from Gurjari Emporium, Madras to Ahmedabad, Gujarat and posted at Vatva store. Vide office order dated 13.04.2000 the workman was asked to work at Vadaj store for administrative convenience and effective control. Thereafter on 12.07.2000 the respondent-workman was informed to give an application for his renewal of contractual appointment if he is interested. No application was received from the respondent-workman and therefore, higher office was informed accordingly. On 31.07.2000 Deputy Manager was instructed not to take respondent-workman on work till he makes an application in writing. It was informed personally to the respondent-workman that if he is interested in working then he must submit an application but it was stated by the respondent-workman that he will submit the same later on. As no application was preferred for continuation of contractual appointment therefor