Compassionate Appointment Case: Supreme Court Orders Employment for Deceased Employee’s Son

The Supreme Court of India, in its judgment on January 23, 2018, ruled on the case of Smt. Subhadra v. The Ministry of Coal & Anr., addressing the issue of compassionate employment following the death of an employee. The case revolved around a widow’s claim for employment under a Bipartite Agreement governing dependents of deceased workers. The Court upheld her right under the agreement and directed the employer to appoint her son while also awarding financial compensation.

Background of the Case

The case pertains to the appellant, Smt. Subhadra, whose husband was an employee under the Ministry of Coal. He passed away on July 6, 2003, leaving behind his wife and a minor son aged 13 years. The compassionate employment policy governing such cases was outlined in a Bipartite Agreement dated December 23, 2000.

Under the agreement, a female dependent of a deceased worker had the option of choosing either employment or a monetary compensation of Rs. 3,000 per month. However, the employer insisted on placing her son on a “live roster,” meaning he would be offered employment upon turning 18. Subhadra, meanwhile, was only offered monetary compensation, which she declined, arguing that she had the right to choose employment.

Her request for employment was rejected, leading her to approach the High Court, which upheld the employer’s decision, granting her monetary compensation instead. Dissatisfied, she appealed to the Supreme Court.

Arguments by the Petitioner (Smt. Subhadra)

The petitioner contended that:

The Bipartite Agreement clearly granted her the choice between employment and monetary compensation.
The employer could not impose monetary compensation against her will when she was willing and eligible for employment.
Other similarly situated female dependents had been given employment, and she was being unfairly denied the same benefit.
The employer’s decision was arbitrary and in violation of the contractual terms of the Bipartite Agreement.

Arguments by the Respondents (Ministry of Coal & Employer)

The employer defended its position by stating:

The agreement also provided an option for placing the deceased employee’s minor son on a “live roster,” ensuring employment upon reaching the age of 18.
The employer had followed a uniform policy, wherein female dependents were offered monetary compensation when a male dependent was available for employment in the future.
The petitioner had refused to accept the monetary compensation despite multiple communications.
Employment could only be granted as per company policy and not as a matter of right.

Observations of the Supreme Court

The Supreme Court examined the provisions of the Bipartite Agreement and found that:

“In paragraph 9.5.0(ii) of the Agreement, it is very clearly and specifically mentioned that a female dependent, if below 45 years of age, has an option either to accept the monetary compensation or employment.”
“It is not an option reserved to the employer, but an option given to the employee.”
“The respondent organization kept insisting that the minor son should be placed on the live roster instead of giving employment to the widow. This was against the clear wording of the agreement.”
“Since the appellant had explicitly chosen employment instead of monetary compensation, the employer was bound to honor that choice unless she was ineligible, which was not the case.”

Final Verdict

The Supreme Court set aside the High Court’s ruling and ordered the following:

The employer must provide employment to one of the appellant’s sons, now an adult, as per his qualifications and entitlement, within two months.
The appellant must be paid Rs. 3,000 per month as monetary compensation from February 1, 2004, until the date of this judgment, along with interest at 7.5% per annum.
Additionally, the appellant must be paid a lump sum compensation of Rs. 5,00,000 (Rupees Five Lakhs) for the loss of employment opportunity over the last 13 years.

Conclusion

This judgment reinforces the principle that employment agreements and policies must be honored as written, and employers cannot arbitrarily impose terms on dependents of deceased employees. By ensuring employment for the son and providing financial relief to the widow, the Court upheld both contractual obligations and principles of justice.

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Download Judgment: Smt. Subhadra vs The Ministry of Coal Supreme Court of India Judgment Dated 23-01-2018.pdf

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