Illegal Termination Without Compliance with Section 25F Justifies Reinstatement, But Gainful Employment Disentitles Back Wages: Gujarat High Court Upholds Labour Court Award

1. Case Snapshot

Case Name: Directorate Of Pension And Provident Fund vs Jasubhai R Valodara (with Cross Petition)

Citation: Special Civil Application No. 14228 of 2023 & Special Civil Application No. 8060 of 2024

High Court: High Court of Gujarat at Ahmedabad

Bench: Hon'ble Mr. Justice Devan M. Desai

Date of Judgment: 16th June, 2026

Area of Law: Labour Law, Industrial Disputes Act, Service Law, Retrenchment, Back Wages

2. Judgment in Brief

The Gujarat High Court dismissed both a petition filed by the employer (Directorate of Pension and Provident Fund) challenging reinstatement of a part-time sweeper, and a cross-petition filed by the employee seeking full back wages. The employee worked as a part-time cleaner from 1988 until 2002, when he was orally terminated after undergoing brain surgery. The Labour Court found the termination illegal for violation of Section 25F of the Industrial Disputes Act and ordered reinstatement with continuity of service but without back wages. The High Court upheld the finding of illegal termination, holding that the employer failed to prove that the employee had not completed 240 days of continuous service, as it withheld vital records. However, the Court denied back wages because the employee admitted to earning Rs. 2,000/- per month by cleaning houses during the period of termination, establishing gainful employment. The Court also rejected the employer's limitation objection, as the employee had pursued representations and conciliation until 2012 before filing the reference in 2013.

3. Relevant Facts

Employment and Termination

• The workman was employed as a part-time sweeper/cleaner in the Office of the Directorate of Pension and Provident Fund from 01.05.1988.

• He was not appointed on any sanctioned post.

• The employee underwent brain surgery and when he tried to resume duties after two months, he was orally told that his services were no longer required.

• His services were terminated in 2002 without any notice or compliance with Section 25F of the Industrial Disputes Act.

Litigation History

• The employee filed Special Civil Application No. 10114 of 2006 seeking reinstatement.

• The Court granted liberty to approach the employer by way of representation.

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