On attaining permanent employment, daily wage workers should be treated on an equal footing with regularly employed workmen: Orrisa High Court

It further noted that once permanent employment is granted, these employees are also entitled to additional benefits, such as pensions and higher pay scales, which are available to regularly appointed employees. Additionally, the court directed the Forest Department to assess the services of the aggrieved workmen and grant them permanence after receiving individual applications.

Section 25B defines continuous employment as continuous work for benefits, allowing for interruptions due to illness, leave or other permitted reasons, with specific criteria for calculating continuous periods of service.

Quick facts:

The workers employed by the Forest Department (“Administration”) raised various concerns such as denial of benefits as set out in the Government Resolution dated 17.10.1988. Despite their long tenure as daily wage workers, the management failed to grant them the rights enshrined in the resolution. Feeling aggrieved, the workmen approached the Gujarat High Court (“Supreme Court”) for relief.

The Workmen submitted that they were currently being remunerated significantly less than what they rightfully deserve, had the management implemented the benefits of the Government Resolutions dated 17.10.1988, 15.09.2014 and 06.04.2016. They emphasized that many of them had completed the required period of service for possible regularization and the resulting benefits.

Supreme Court comments:

The Supreme Court referred to the case of State of Gujarat vs. PWD and Forest and Employees Union ((2019) 15 SCC 248), wherein the SC held that employees initially engaged on a daily wage basis are entitled to permanent employment upon completion of a specified term of office, particularly in accordance with Section 25B of the Industrial Disputes Act. Furthermore, the SC underlined that such employees should be treated on an equal footing with regularly appointed employees upon attaining permanent employment, emphasizing the principle of equality.

Furthermore, the Supreme Court has State of Gujarat and Anr. vs. Mahendrakumar Bhagvandas and another ((2011) 2 GLR 1290) ruled that employees who have been granted permanent employment are entitled to additional benefits such as pension and higher pay scales. Therefore, the High Court has ruled that employees who meet the working hours requirement are entitled to have their service counted as continuous for their pension rights.

The Supreme Court ruled that daily wage workers should be given equal treatment and additional benefits after regularization once they become permanent. Therefore, the Supreme Court issued the following guidelines:

(i) Each Workman was directed to submit an individual declaration to the respective Range Forest Officer within three weeks. A comprehensive representation must be provided, containing all relevant facts specific to each workman, and a copy sent to the Deputy Conservator of Forest of the respective Range.

(ii) The Range Forest Officer concerned, in consultation with the Deputy Conservator of Forest, and if necessary, the Principal Chief Conservator of Forest, was tasked with deciding on the representations of the Workmen.

(iii) All appropriate consequential benefits due to the Workmen must be paid within four weeks of the decision.

(iv) Should the Workmen find themselves aggrieved by the decision of the Management, in whole or in part, they reserve the right to challenge such decision before the appropriate forum in accordance with law.

Case title:Manilal Manglaji Zariya & Ors. vs. State of Gujarat and Ors.

Case number: R/Special Civil Application No. 6844 of 2024

Applicant’s lawyer: Nirav V Parghi

Defendant’s lawyer: Ms. Nidhi Vyas, AGP

Click here to read/download the order