Section 25 - Industrial Disputes Act

Industrial Disputes Act , Section 25(H) – Explained

Industrial Disputes Act , Section 25(H) – Explained - Applies to the cases where employer has proposed to take into their employment any persons to fill up the vacancies and the employer is required to give an opportunity to the “retrenched workman” and offer him re­employment and if such retrenched workman offers himself for re­employment, he shall have preference over other persons, who have applied for employment against the vacancy advertised - The object behind enacting Section 25(H) of the ID Act is to give preference to retrenched employee over other persons by offering them re­employment in the services when the employer takes a decision to fill up the new vacancies - Industrial Disputes (Central) Rules, 1957 Rule 78, provides that Section 25(H) of the ID Act is applicable only when the employer decides to fill up the vacancies in their set up by recruiting persons - So, in order to attract the provisions of Section 25(H) of the ID Act, it must be proved by the workman that firstly, he was the “retrenched employee” and secondly, his ex­employer has decided to fill up the vacancies in their set up and, therefore, he is entitled to claim preference over those persons, who have applied against such vacancies for a job while seeking re­employment in the services. - Industrial Disputes (Central) Rules, 1957 Rule 78. 2019 SCeJ 033

Workmans termination was held illegal - Awarded lump sum compensation, therefore, not a case of a retrenchment

Industrial Disputes Act, Section 25(H) - Retrenchment - Workmans termination was held illegal and, in consequence thereof, he was awarded lump sum compensation of Rs.12,500/­ in full and final satisfaction, which was also accepted by him - This was, therefore, not a case of a retrenchment of the respondent from service as contemplated under Section 25(H) of the ID Act. 2019 SCeJ 033

Regularization of an employee already in service does not give any right to retrenched employee

Industrial Disputes Act, Section 25 (H) – Regularization of an employee already in service does not give any right to retrenched employee so as to enable him to invoke Section 25 (H) of the ID Act for claiming re­employment in the services - The reason is that by such act the employer do not offer any fresh employment to any person to fill any vacancy in their set up but they simply regularize the services of an employee already in service - Such act does not amount to filling any vacancy. 2019 SCeJ 033