P&H: Non Renewal of Fixed Term Contract Is Not Retrenchment Under Industrial Disputes Act

punjab-haryana
⚖️ Order Date: 21 Sep 2026
Headnotes

(i) Industrial Disputes Act, 1947, S.2(oo)(bb) — Termination of service — Contractual engagement for specified period — Non-renewal of contract on expiry — Cessation of service on account of non-extension of contractual engagement falls within exception carved out u/s. 2(oo)(bb) and does not amount to...

(ii) Industrial Disputes Act, 1947, S.25-F — Retrenchment compensation and notice — Where workman’s service comes to an end by non-renewal of fixed-term contractual appointment, provisions of S.25F are not attracted. (Para 9)

(iii) Industrial Disputes Act, 1947, S.2(oo)(bb) — Contractual appointment — Appellant engaged on contractual basis and extended from time to time — Non-renewal thereafter justified the cessation of service under the statutory exception.  (Para 9)


Facts of the Case

P&H: Non Renewal of Fixed Term Contract Is Not Retrenchment Under Industrial Disputes Act

The Punjab and Haryana High Court has dismissed an appeal filed by Satish Kumar, upholding the view that the end of his contractual engagement did not amount to retrenchment under the Industrial Disputes Act, 1947.

The case arose from Satish Kumar’s appointment as a Chowkidar on a contractual basis for 89 days in July 1997. His engagement was extended from time to time and continued till 30 June 1998. When his services were not extended further from 1 July 1998, he challenged the termination, claiming that he had completed more than 240 days of continuous service and that the management...

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