Termination of service: HC awards up to ₹5-lakh relief to 16 Punjab financial corp ex-workers

Chandigarh The Punjab and Haryana high court has directed Punjab Financial Corporation (PFC) to give a compensation of ₹65,000 for each year of service to 16 of its former workers terminated in the past 20 years. The court, however, put a ₹5-lakh cap on the maximum sum a worker will be paid.

The high court acted on the plea of the former workmen, who had sought directions that corporation be directed to reinstate them or in the alternative appropriate compensation be granted for illegal termination of their services.

A Patiala tribunal though had refused orders for their reinstatement, but directed that they be compensated with up to ₹8,000 for each year of service rendered by them. They were appointed between 1984 and 1994 and were working as watch and ward staff duties. The corporation deals in taking over properties in the case of default in re-payment by loanees. All the workmen were employed to carry out watch and ward duties over such properties.

The corporation had opposed reinstatement as well as award of compensation, stating that there was no relationship of master and employee between them.

The court found that the workmen were not appointed against a regular post and they were appointed for watch and ward staff duty of the units. In view of this, the court said that they are not entitled to reinstatement.

As of compensation, it said that the court is required to balance the interest of both the parties. While the corporation is spending the public money on the other hand, workmen were chucked out of service without following the provisions of the Industrial Dispute Act, 1947, have to be granted an appropriate relief. The orders of terminating the services of the workmen were passed without following the procedure under the law, the court held, directing that the petitioners will be entitled to compensation of ₹65,000 per year, subject to maximum cap of ₹5 lakh.