VidhiSangh

Supreme Court of India · 02/11/2018

THE MANAGEMENT OF SRI RAMNARAYAN MILLS LTD. versus SECRETARY COIMBATORE DISTRICT TEXTILE WORKERS UNION (HMS) AND ORS

[2018] 13 S.C.R. 1198 · 2018 INSC 1037

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Summary

The Supreme Court upheld rejection of a mill’s proposed standing-order amendment introducing break in service as a punishment. Existing punishments adequately addressed misconduct, while the proposed addition risked arbitrary use even for a day’s absence and prejudice to gratuity entitlement. It conflicted with the beneficial scheme and continuous-service calculation under the Payment of Gratuity Act. The proposal was neither reasonable nor bona fide, and the employer’s appeal was dismissed.

Issues

  1. Whether break in service should be added to the employer’s certified standing orders as a punishment.
  2. Whether the proposal would improperly prejudice continuous-service and gratuity rights.

Held

Result

Employer’s appeal dismissed; rejection of the proposed break-in-service punishment in the certified standing orders upheld.

Judgment PDF: Supreme Court of India, [2018] 13 S.C.R. 1198.