P&H: Upholds Rs. 3 lakh compensation in place of reinstatement for retrenched workman

punjab-haryana
⚖️ Order Date: 31 Aug 2026
Headnotes

(i) Industrial Disputes Act, 1947, Sections 25-F, 25-G and 25-H — Retrenchment of workman — Reinstatement — There is no concept of automatic reinstatement on finding of violation of the Act — Various factors have to be taken into consideration before granting reinstatement in service,...

(ii) Industrial Disputes Act, 1947, Ss.25-F, 25-H — Retrenchment compensation — Quantum — There is no straight jacket formula for determining compensation in lieu of reinstatement — Post held, wages drawn at time of retrenchment and length of service are relevant factors — As workman had...

 


Facts of the Case

P&H: Upholds Rs. 3 lakh compensation in place of reinstatement for retrenched workman

The Punjab and Haryana High Court has refused to interfere with an order granting Rs. 3 lakh compensation to a workman whose services had been terminated in 1991, holding that reinstatement is not automatic even where violations of labour law are found.

The case was filed by Devi Dutt, who had worked as a peon with the Employees Provident Fund Organisation for about nine months. He claimed that his termination violated Sections 25-F, 25-G and 25-H of the Industrial Disputes Act, 1947, and sought reinstatement with full benefits.

The Industrial Tribunal-cum-Labour Court had accepted his claim to the extent of...

Login required to open full judgment PDF
Login to Access File