Non-Renewal Of Contract During Probation Does Not Amount To ‘Retrenchment’ Under Industrial Disputes Act: Gujarat High Court

Post published: August 14, 2022
Post category:Daily Judgments / Gujarat High Court
Reading time:3 mins read

Non-Renewal Of Contract During Probation Does Not Amount To ‘Retrenchment’ Under Industrial Disputes Act

Case: Chief Executive & 1 Other(S) VS Vanjibhai Laljibhai Chaudhary

Coram: Justice Biren Vaishnav

Case No.: C/SCA/10361/2008

Court Observation: Viewed from the definition of “retrenchment” defining Section 2 (oo) (bb), the `term’ excludes termination of service of a workman as a result of nonrenewal of a contract of the employment or termination on expiry in view of a stipulation as contained in the order therein.

…it is now a well settled principle of law that the appointment made on probation/ad hoc for a specific period of time and such appointment comes to an end by efflux of time and the person holding such post can have no right to continue in the post.

The restrictive provisions relating to retrenchment are not applicable in the facts of the present case as the termination of service of the respondent was squarely covered by the exception clause added to the definition of “retrenchment” in Section 2 (oo) (bb)of the I.D. Act. This is both a case of termination of service of a workman as a result of non-renewal of contract of employment and the contract being terminated under an express stipulation in that behalf contained in the contract. Therefore, the finding of the Labour Court to the effect that the provisions of Sections 25F, 25G and 25H of the I.D Act were violated is incorrect.

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