Quick Summary: Two employees from Agrofab Machineries challenged their job termination, and the court ruled in their favor, canceling the order to deposit job loss compensation.
Surendra Dasariya and Ashish Gaikwad, former employees of Agrofab Machineries in Nagpur, lost their jobs on December 30, 2014. They filed complaints arguing that their job termination was unfair.
The employer, Agrofab Machineries, wanted the employees to give back their job loss compensation as a condition for fighting their termination. Initially, the Labour Court disagreed with this demand, but later, the Industrial Court changed the decision and required the deposit.
The employees' lawyer argued that according to Section 25(F) of the Industrial Disputes Act, 1947, job loss compensation must be paid before termination. They believed that even if their complaints were dismissed, they should keep the compensation.
"Payment of job loss compensation is required before termination," argued the employees' lawyer.
The employer's lawyer argued that if the employees wanted to fight their job termination, they should give back the compensation. They mentioned previous Supreme Court decisions to support their case.
Judge Rohit W. Joshi decided that the Industrial Court made a mistake in requiring the deposit. The order to deposit the compensation was canceled, and Surendra Dasariya and Ashish Gaikwad's complaints were accepted again.
"It is unfair to make the employee return the amount as a condition for fighting the job termination," stated the judgment.
The case will continue in the Labour Court on October 13, 2025, where both parties will appear without needing a separate notice.
The decision emphasizes the importance of fair practices in job terminations and highlights the legal rights of employees under the Industrial Disputes Act.
