Unfair to deny post retiral benefits or terminal dues to employees who have worked for a long period: Apex Court grants benefits to employees initially employed as daily wage workers
Justices Vikram Nath & Satish Chandra Sharma [07-05-2024]

Read Order: ANAND PRAKASH MANI TRIPATHI VERSUS STATE OF UTTAR PRADESH & ORS. [SC- CIVIL APPEAL NO(S). 6118 OF 2024]

Tulip Kanth

New Delhi, June 14, 2024: The Supreme Court has granted post-retiral benefits to a group of employees who were initially employed as seasonal/daily wage workers and had worked for 30 to 40 years.

The Division Bench of Justice Vikram Nath and Justice Satish Chandra Sharma took note of the fact that the appellants continued to work initially as seasonal/daily wage employees and thereafter they were regularized and continued to work till their superannuation except for one, Umesh Chandra, who died in harness in the year 2019. Most of them worked for 30 to 40 years and even more on the strength of interim orders passed by the Courts.

The Single Judge of the High Court had allowed their petitions, setting aside their termination orders directing for their regularization in service right from the year 1991. However, on appeal by the State of Uttar Pradesh, the Division Bench of the High Court had set aside the judgment of the learned Single Judge. It was also directed by the Division Bench that there shall be no refund of salary, however, for retiral and pensionary benefits, the service period would not be counted.

The core issue for consideration was whether they are entitled to post-retiral benefits and terminal dues as may be admissible to each of the appellant(s) of their legal heirs.

“Having considered the fact that the appellant(s) have worked for such a long period, it would be unreasonable and unfair to deny them post retiral benefits or terminal dues as may be admissible to the regular government employees”, the Bench asserted.

It was further noticed by the Bench that the Top Court right from 2017 had granted interim orders to the appellants who have continued to work and have since retired, except one Umesh Chandra, who died in the year 2019, while still in service.

Considering the facts and circumstances, the Bench set aside the impugned judgments passed by the Division Bench of the High Court and restored that of the Single Judge. The Bench also held that the appellants would be entitled to all consequential benefits as directed by the Single Judge.

Allowing the petition, the Bench ordered, “The respondent-State of Uttar Pradesh shall ensure that the benefits admissible to the appellant(s) or their legal heirs be paid within a period of two months from today.”