Punitive Retrenchment In absence of Departmental Regular Enquiry Violate Provision of Industrial Dispute Act

Punitive Retrenchment Without Regular Departmental Inquiry Violates Industrial Disputes Act: HP HC Labour Court's finding that termination based on alleged misconduct without conducting a proper departmental inquiry was illegal. Firstly, the court noted that the retrenchment notice dated February 26, 1999, mentioned that Ramesh Chand had been found guilty of tampering official records with malafide intention. It observed that this finding was based only on the preliminary inquiry and his own admission of guilt. Thus, the court ruled that the termination was entirely rooted in the preliminary inquiry itself. Secondly, the court referred to Section 25-F and Section 2(oo) of the Industrial Disputes Act. It noted that the provisions define “retrenchment” as termination for any reason whatsoever, “otherwise than as a punishment inflicted by way of disciplinary action.” The court also observed that an FIR had been registered against Ramesh Chand regarding the same allegations, but he wa...