Rajasthan HC Shields Daily Wager's Job: Procedure Trumps 'Illegal' Hiring Tag

In a swift ruling that underscores procedural sanctity in labour disputes, the Rajasthan High Court at Jaipur dismissed a writ petition by the Sarpanch of Gram Panchayat Thated, upholding a labour court's order reinstating daily wage worker Shri Banshi Lal. Justice Munnuri Laxman, hearing the matter at the admission stage on April 15, 2026, ruled that termination required strict adherence to Section 25-F of the Industrial Disputes Act (ID Act), 1947—even if the initial engagement was unauthorized. This decision, cited as 2026 LiveLaw (Raj) 148 , reinforces worker protections against abrupt dismissals.

Unauthorized Hire Sparks Long Fight

The saga began when a former Sarpanch of Gram Panchayat Thated, District Kota, engaged Banshi Lal as a daily wage worker—allegedly without authority. Banshi Lal continued working until his termination in line with the Rajasthan (Regulation of Appointments to Public Services and Rationalisation of Staff) Act, 1999 (Act of 1999). He approached the Labour Court, securing an ex parte reinstatement award on November 9, 2021 (Annex.5). The Panchayat's bid to set it aside via an application on July 30, 2025 (Annex.6) was rejected, prompting this writ petition (S.B. Civil Writ Petition No. 20114/2025).

Key questions: Could an 'illegal' appointment justify summary termination? Did the Act of 1999 override ID Act safeguards for daily wagers?

Panchayat's Stand: Back to Square One

Represented by counsel Ritesh Kumawat, the petitioner argued the initial hiring was void ab initio, as the Sarpanch lacked power to appoint. Continued service didn't legitimize it, they claimed, invoking Section 9 of the Act of 1999, which bars regularization of daily wagers and permits termination with notice—plus retrenchment compensation under Section 25-F ID Act if applicable.

Worker's Silent Defense, Court's Focus on Procedure

No counsel appeared for respondent Banshi Lal, represented through Narendra Kumar Tiwari of Hindu Mazdoor Sabha. The Labour Court had already found non-compliance with Section 25-F, a point the High Court deemed undisputed. This procedural lapse—requiring one month's notice or wages in lieu, plus 15 days' pay per year of service—proved fatal to the Panchayat's case.

Decoding the Legal Shield: Section 9 Meets Section 25-F

Justice Laxman dissected Section 9 of the Act of 1999, quoting its core:

“No person who is a daily wage employee... shall have or shall be deemed ever to have a right to claim for regularisation of services on any ground whatsoever and the services of such person shall be liable to be terminated at any time with due notice. Provided that in the case of workmen falling within the scope of Section 25-F of the Industrial Disputes Act... retrenchment compensation... shall be paid...”

The Court clarified: Illegality of appointment doesn't erase Section 25-F obligations. The Labour Court's findings on non-compliance stood unassailable, trumping regularization bars. No precedents were directly cited, but the ruling aligns with ID Act jurisprudence prioritizing retrenchment formalities for protected workmen.

Key Observations - "The initial appointment of the workman was illegal for the reason that the Sarpanch had no authority to engage such person..." - " Section 9 of the Act of 1999 clearly bars the regularisation... and also contemplates the requirement of following the provisions as contained in Section 25-F..." - "The findings of the Labour Court clearly demonstrate that the petitioner has not followed the requirement of Section 25-F..." - "When the petitioner has not followed the procedure of Section 25-F... this Court cannot find any fault with the impugned award passed by the Labour Court on merit."

Petition Nixed: A Procedural Victory with Lasting Echoes

"The present writ petition is devoid of any merit and, therefore, the same is hereby dismissed at the admission stage," declared Justice Laxman. Banshi Lal's reinstatement holds, signaling to public employers: Follow retrenchment rules or face labour court scrutiny. For daily wagers in Rajasthan, this tempers the Act of 1999's bite, ensuring terminations aren't shortcuts around ID Act mandates. Future cases may test if 'illegal' hires universally demand such compliance, bolstering procedural fairness in casual labour disputes.