Malafide retrenchment would lead to reinstatement with back wages: Supreme Court

Malafide retrenchment would lead to reinstatement with back wages: Supreme Court

Supreme Court in Armed Forces Ex-officers Multi Services Cooperative Society Ltd. vs. Rashtriya Mazdoor Sangh (INTUC) C.A. No. 293/2022, on August 11, 2022, while recognising the settled principle of law that a bona fide policy decision for reorganising the business based on economic considerations is within an enterprise’s proprietary decision and retrenchment in this context must be accepted as an inevitable consequence, however the said decision should fulfil the test of ‘bona fide’ requirement. The Supreme Court confirmed the decision made by the Tribunal and the High Court setting aside the termination and directed reinstatement of employees and affirmed the conclusion drawn by them that the entirety of business is not lost due to the strike and the retrenchment seems to have been imposed as retribution against the workmen for going on a strike.

Also read: Ankita Rudra joins Jio as Head HR Academy

Stay connected with us on social media platform for instant update click here to join our LinkedInTwitter & Facebook

Business Manager

View all posts

Add comment

Your email address will not be published. Required fields are marked *

November 2024

Tech & Human Equation

Submit Your Article

Would you like to share your views? submit your Aricle by clicking on the button below. Submit your Article
error: Content is protected !!