Continuity of service mandates calculating benefits from initial appointment date, not the date of reinstatement award.

The petitioner was appointed as a Labourer in 1991 and was terminated in 2004.

The Labour Court, Rajkot, in Reference (LCJ) No. 21 of 2009, directed reinstatement with continuity of service but without back-wages on 31.12.2014, an order subsequently confirmed by the High Court in 2016.

Following a subsequent writ petition in 2020 (SCA No. 7629/2020), the High Court directed the respondents to grant the petitioner benefits under the Government Resolution (GR) dated 17.10.1988.

However, the respondent authority’s order dated 29.01.2022 calculated these benefits from the date of the Labour Court's award (29.01.2020) rather than the petitioner's initial appointment date in 1991.

The petitioner challenged this calculation, seeking arrears and interest from 01.01.1996.

Whether the benefits flowing from the Government Resolution dated 17.10.1988 should be calculated from the date of initial appointment or the date of the award when "continuity of service" has been granted by a competent court.

Government Resolution (GR) dated 17.10.1988 provides for pay fixation and terminal benefits for daily wagers based on the length of completed service.

When "continuity of service" is granted, a workman cannot be denied GR benefits on the ground of not completing 240 days of work during a period of illegal termination.

An employer cannot take advantage of its own illegal action to deny service benefits.

The respondent authority committed a grave illegality by "wiping out" the previous service of the petitioners despite the Labour Court's grant of continuity of service.

Following the binding precedent in State of Gujarat v. Ashok Laxmanbhai Parmar, once continuity of service is established, the workman is entitled to benefits from the initial date of appointment.

The period between illegal termination and reinstatement must be counted either as actual or notional service for the purpose of calculating years of service under the 1988 GR.

Consequently, the respondents' decision to trigger benefits only from the date of the award was held to be contrary to law.

The court directed the respondents to grant benefits notionally from the date of initial appointment until the date of the Labour Court award and pay actual salary differences and retiral benefits from the date of the award until superannuation.

The court ordered all arrears to be cleared by 15.05.2026 with interest at 6% p.a. on any shortfall from 01.12.2020 until the date of actual payment.