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Supreme Court Ruling on Work-Charged Status for Daily Wagers in Himachal Pradesh

The Supreme Court of India recently issued a significant judgment concerning the employment status of daily wage workers in Himachal Pradesh . The case, consolidated under several Civil Appeal numbers (1595 of 2025 and others), involved numerous appeals challenging the High Court's decisions on granting "work-charged status" to daily wagers who had completed eight years of service. The bench comprised Justices J.K. Maheshwari and Aravind Kumar.

Case Background

The core legal question before the Supreme Court was whether completing eight years of service as a daily wager automatically entitled an individual to "work-charged status." This issue stems from past government schemes aimed at regularizing the employment of daily wage workers in various departments, including Public Works and Public Health.

Several lower court rulings had favored granting work-charged status based on eight years of service. However, the State of Himachal Pradesh argued against this, highlighting the financial burden on the exchequer. The state referenced its previous attempt to modify the 1994 scheme (Mool Raj Upadhyaya v. State of H.P.) through an interlocutory application, which was ultimately withdrawn.

Legal Precedents and Arguments

The Supreme Court extensively reviewed previous judgments, particularly Mool Raj Upadhyaya v. State of H.P. (1994 Supp. (2) SCC 316), which established a 10-year continuous service requirement for work-charged status. The court also considered State of H.P. and Ors. v. Ashwani Kumar (Civil Appeal No. 5753 of 2019), where the court upheld a Tribunal's order granting work-charged status after eight years but restricted the relief to notional benefits to mitigate the financial impact on the state.

The State's argument centered on the financial implications of granting work-charged status retroactively to a large number of daily wagers. The respondents, represented by various advocates, argued that past rulings, including Rakesh Kumar and Ors. v. State of Himachal Pradesh and Ors. , supported their claim based on established service tenure.

The Supreme Court's Decision

The Supreme Court, referencing Ashwani Kumar (supra), affirmed that daily wagers are entitled to work-charged status upon completing eight years of service. However, mirroring the Ashwani Kumar ruling, the court limited the relief to "notional benefits," a significant concession to the State's financial concerns. This means that while the workers receive the work-charged designation, their back pay and other benefits will be calculated only from the date of the Tribunal order, not retroactively from the completion of their eight years of service.

The court explicitly stated that this judgment is in rem , meaning it applies broadly and directs the State to cease employing daily wagers and to comply with the established legal framework for appointments. The court also clarified that the State could not selectively implement rulings beneficial to it while ignoring others. The appeals were disposed of accordingly, with no order as to costs.

Implications

This judgment provides some clarity for daily wage workers in Himachal Pradesh but limits the financial implications for the state. Future appointments are expected to adhere to proper legal channels as per Secretary, State of Karnataka v. Uma Devi [(2006) 4 SCC 1]. The decision highlights the ongoing tension between providing fair employment opportunities and managing public finances.