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Gujarat Hc: Daily Rated Employees Who Have Completed More Than 10 Years of Service Will Be Treated as Permanent Employee With Regular Pay Scale and Benefits via Government Resolution.

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The writ petition was filed by the petitioner for being aggrieved by the fact that he had not been granted the benefit of Unavailed Privilege Leave of 300 days to his credit after his retirement from service in the case of Hirabhai Nanabhai Bhoi v. State of Gujarat.


The petitioner was appointed as Daily Wager alongside the granted benefit of government resolution dated 17.10.1998 on completion of five years of service. He retired from the service. Later on, he was terminated, and therefore, he applied to the Labour Court contending that he had worked for 240 days in a year to which the Labour Court allowed. The respondent failed to challenge the order by the Labour Court in this court. Now, the petitioner has retired and demanded the benefit of leave encashment of 300 days based on G.R. dated 17.10.1988. 


The counsel submitted before the court that some other employee also approached this court and that made the order in their favor and therefore they are availing their benefit of encashment but the petitioner was not granted the benefit of leave encashment which is itself arbitrary and unjustified. Once the employee concerned is treated for all purposes as a permanent employee under government resolution dated 17.10.1988 and thereafter denied the benefit affix for segments of such employee who are labeled as a daily wager by resolution dated 18.7.1994 violate Article 14 and 16 of Constitution of India. It is also incorrect on part of the State Government to retain back benefit and right conferred on such employees already provided to them via government resolution. 


The counsel submitted before this court that G.R government resolution would not be applicable if the petitioner has not completed 240 days in the 1st year of his service and the present incident petitioner failed to do the same and therefore he must not be entitled to the said benefit. In addition to this, the Counsel referred the case of State of Gujarat (supra), the apex court might have ignored the fact that SLP  against the decision of Division Bench of this court was dismissed and review was also dismissed. Therefore, an appeal may not be considered. 


The court took the reference of the writ application of the State of Gujarat & Anr. v. Mahendrakumar Bhagwandas & Anr. reported in 2011 (2) GLR 1290 in which the division bench of this court observed that 

“G.R. dated 17.10.1988, a committee was constituted for considering the condition of service of the daily laborer and artisan in different departments of the State Government. The recommendation of the committee was accepted and thereby provided benefits to the workmen from 1.10.1998 including benefits like payment of minimum wages, paid weekly holidays, medical facility, and national holidays. After completion of five years of continuous service under section 25B of the Industrial Dispute Act, 1947, daily wage laborer will be entitled to a fixed monthly salary of Rs.750 along with dearness allowance, membership of provident fund, the benefit of paid holidays, and leave wages. After completion of 10 years of continuous service under section 25B of the Industrial Dispute Act on or before 01.10.1998, the daily rated employee upon whom G.R. applied would be treated as a permanent employee with all benefit conferred on them. Also permanent in the sense of protection of service and not treating employees on regular administration of government.”

“It is further resolved and stated in clause (10) of the resolution dated 18.7.1994 that classification of employees based on the completion of service for 5/10/15 years of continuous service must be given benefit prescribed under their specific category on immediate basis. The government resolution contained detailed records of such daily rated employees with the maintenance of seniority list, pension, and termination of service by way of retrenchment.”

Consequently, the resolution dated 18.7.1994 didn’t come into effect, and another impugned judgment dated 6.4.2000 declared that petitioners who have completed more than 10 years of service as daily workers will be treated permanent employees with regular pay scale and other benefits entitle to them which are also a mandatory requirement of the state government.


The court held that the petitioner was entitled to encashment of the Unavailed Privilege Leave to the extent of 300 days. The respondent was directed to calculate the amount of encashment of the Unavailed Privilege Leave to the extent of 300 days within four weeks from the date of receipt of the writ order. 

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