Supreme Court Criticizes Maharashtra for Firing Long-term Workers: What Does This Mean for Employee Rights?

Supreme Court Indicts Maharashtra Government

The Supreme Court has indicted the Maharashtra government for terminating its employees in the Irrigation Development Corporation after transferring irrigation schemes to a sugar factory. Although the employees had been working for the corporation for 10 years, it maintained that they were casual workers. They moved the labour court and the Bombay High Court and won benefits under the Industrial Disputes Act. The government appealed to the Supreme Court, which asked the government to give them 25 percent back wages and continuity of service, though they would not be reinstated. The court remarked that a government corporation should not imitate the attitude of private sector employers.

"Termination should be the last resort; in this case, the government did not appear to make any effort to absorb them in other activities of the department or insist on the sugar factory to absorb them," the court said in the judgment on State vs Sarva Shramik.

The Supreme Court's ruling highlights the importance of fair treatment of employees, especially in cases of termination. When terminating employees, it is crucial for organizations to consider alternative solutions such as redeployment within the organization or facilitating absorption by other entities. In this scenario, the government was directed to provide compensation and continuity of service to the affected workers. To ensure compliance with labor laws and uphold ethical practices, organizations should prioritize employee welfare and explore all possible avenues before resorting to termination.