The Law on Back Wages and Reinstatement

The Law on Back Wages and Reinstatement
Law pertaining to reinstatement and back wages is well settled. Reinstatement and back wages is not automatic on setting aside of the termination of service of the Workman by the Court.

We all know whenever a termination is set aside by the Court back wages and reinstatement is natural corollary. However, the law pertaining to back wages and reinstatement sometimes appears to be baffling and confusing. At times we find court awarding reinstatement and back wages for illegal termination but at the same time we find judgments where the court has held reinstatement with back wages for every illegal termination is not automatic and award compensation in lieu of reinstatement and back wages. The article attempts to find out whether the law is settled as far as reinstatement and back wages are concerned. Before traversing further, we shall refer to some of the judgments of the Supreme Court that were reported in 2021 on back wages and reinstatement for our discussion to understand the issue at hand. Some of the judgments reported in the field in the year 2021 are as follows :

  • No automatic re-instatement and back wages on violation of section 25 F of the ID Act. Madhya Bharat Gramin Bank Vs Panchamlal Yadav 2021 LLR 681 (SC).
  • No...

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Deepanjan Dey

is Senior General Manager-Employee Relations, Emami Ltd.

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