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Back Wages

H. S. Thukral ,
  10 March 2009       Share Bookmark

Court :
Suprem Court
Brief :
Back Wages when reinstatement awarded by the Labour Court Decided March 2009
Citation :
P. V. K. Distillery Limited vs Mahendra Ram
Whether the Labour Court was justified in awarding full back wages, while directing the employer to re-instate the workman in service? - Held, although services of the respondent have been terminated unjustifiably and illegally, it itself does not create a right of reinstatement with full employment benefits and full back wages - It would be unreasonable to put a huge burden on the appellant by directing them to reinstate respondent with continuity of service and with full back wages, because the appellant's factory had been declared sick and remained closed for many years and has been assigned to a new management in order to rehabilitate/reconstruct it - Directed the employer to deposit 50% of back wages by way of arrears of back wages, instead of full wages awarded by the Labour Court
 
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