Madhya Pradesh High Court in MPMKVV Co. Ltd. & Others vs. Surendra Kumar Gupta (Misc. Petition No. 4540 of 2023), held that reinstatement is not a necessary consequence of illegal termination, especially for contractual employees. The petitioner had completed over 240 days of service and was orally terminated, leading the Labour Court to order reinstatement with 25% back wages. The High Court, while upholding the finding of illegal termination, substituted reinstatement with lump sum compensation.
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