Daily Wage Workers Granted Regularization: Supreme Court Overturns High Court Ruling

The case of Pandurang Sitaram Jadhav & Others vs. The State of Maharashtra Through Its Dairy Manager & Anr. deals with the longstanding demand for regularization of daily wage workers employed at the Regional Dairy, Konkan, Maharashtra. The Supreme Court, in its judgment on September 25, 2019, upheld the rights of these workers and ordered their regularization.

Background of the Case

Eleven daily wage workers, who had been working at the Konkan Regional Dairy since as early as 1983, filed complaints before the Industrial Court of Maharashtra in 2001. They claimed that they had worked continuously for over 240 days and were entitled to permanent status under labor laws.

The Industrial Court ruled in favor of the workers in 2004, stating that:

• They had worked continuously for several years without permanent status.
• They were denied benefits such as increments, provident fund, and retirement benefits.
• The State’s argument that there were no sanctioned posts was unjustified.

The State of Maharashtra appealed, and while a Single Judge Bench of the Bombay High Court dismissed the appeal in 2007, a Division Bench reversed this decision in 2008, citing the lack of regular recruitment procedures and sanctioned posts.

The workers then appealed to the Supreme Court.

Legal Issues and Arguments

Arguments by the Appellants (Workers):

• They had worked continuously for 12 to 20 years and performed duties equivalent to permanent employees.
• Several other employees of the same dairy had been regularized under similar circumstances.
• The State could not deny regularization merely due to a lack of sanctioned posts.

Arguments by the Respondents (State of Maharashtra):

• The workers were not recruited through a formal selection process.
• There were no sanctioned posts, and recruitment was frozen due to financial constraints.
• The decision of the Division Bench was justified under the principles laid down in State of Karnataka vs. Umadevi.

Supreme Court’s Observations

The Supreme Court examined the issue of unfair labor practices and held:

“The fact that these persons had continued as daily-rated employees for years together itself shows that there was a requirement of permanent posts, and this methodology could not be utilized to deprive the appellants of the benefits of permanency.”

The Court also clarified that State of Karnataka vs. Umadevi did not apply in this case, stating:

“The judgment in Umadevi dealt with powers under Articles 32 and 226 and did not restrict the power of the Industrial Court to prevent unfair labor practices.”

Key Rulings and Conclusion

The Supreme Court set aside the High Court’s order and ruled:

• The workers were entitled to regularization with effect from the date of filing their complaints in 2001.
• The State of Maharashtra must issue regularization orders within three months.
• The workers would receive benefits for their period of service but not back wages.

This judgment reaffirms the principle that workers cannot be deprived of their rights under labor laws by keeping them in perpetual temporary employment. It ensures that long-serving workers receive fair treatment and employment security.

Petitioner Name: Pandurang Sitaram Jadhav & Others.
Respondent Name: The State of Maharashtra Through Its Dairy Manager & Anr..
Judgment By: Justice Sanjay Kishan Kaul, Justice M.R. Shah.
Place Of Incident: Konkan, Maharashtra.
Judgment Date: 25-09-2019.

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