Bombay High Court in J Fibre Corporation vs. Maruti Harishchandra Amrute (Writ Petition No. 10454 of 2024), recently ruled that employers must adhere to proper retrenchment procedures outlined in the ID Act, even when valid business reasons exist for reducing staff. The court observed that the employer failed to present the seniority list before the Labour Court and delayed retrenchment compensation by 6 months after issuing the termination letter. Consequently, the court ordered the employer to pay a lump sum compensation instead of back wages, since reinstatement was not possible as the employee had reached retirement age. Additionally, the court directed the employer to release all due payments, affirming that terminal benefits cannot be denied without specific statutory authority.
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