Gujarat HC Orders 1988 And 2014 GR Benefits For Outsourced Forest Daily-Wager, Counting Sundays And Holidays Toward 240 Days

The petitioner joined the Forest Department as a daily wager in 1988 and was placed on outsourcing from 2014.

He sought benefits under the Government Resolutions dated 17 October 1988 and 15 September 2014, contending that Sundays and public holidays should be included when calculating 240 days of service.

Following the Court’s direction, the State filed a revised attendance calculation which recorded 14 years in which the petitioner completed 240 days, applying the principle in Workmen of American Express International Banking Corporation.

The petition also challenged his transfer to outsourcing and sought other reliefs, including the benefit of the Seventh Pay Commission.

Section 25-B of the Industrial Disputes Act, 1947 defines continuous service and provides for deemed continuous service in specified circumstances; Section 25-F addresses retrenchment protection for qualifying workmen.

In Workmen of American Express International Banking Corporation v. Management of American Express International Banking Corporation, (1985) 4 SCC 71, the Supreme Court held, in interpreting Section 25-B, that “actually worked” may include days during which the workman remained employed and was paid wages, including Sundays and paid holidays.

The Government Resolutions dated 17 October 1988 and 15 September 2014 provide benefits to qualifying daily-wage workers, with 240 days in each relevant year required for that year to count.

The Court also relied on Chhaganbhai Ranchhodbhai Rathod v. Deputy Executive Engineer, LPA No. 1495 of 1997, and Executive Engineer v. Dhirabhai Bhurabhai Pagi, LPA No. 159 of 2023, in which the Gujarat High Court held that Sundays and official or public holidays are included in calculating 240 days for the purposes of the 1988 Resolution.

Under State of Gujarat v. PWD Employees Union, (2013) 12 SCC 417, and State of Gujarat v. PWD and Forest Employees Union, (2019) 15 SCC 248, only years in which the workman completed 240 days count toward the relevant service-based benefits.

The Court rejected the State’s reliance on Ranjit Natvarlal Chauhan v. Morbi Nagar Palika, 2011 (2) GLR 1783, which had distinguished temporary employees from daily wagers.

It considered the earlier Division Bench ruling in Chhaganbhai directly relevant to daily-wage employees claiming benefits under the 1988 Resolution, and noted that later decisions had followed that approach.

The Court held that the Resolutions do not prescribe a separate method for calculating 240 days; accordingly, Sundays and public holidays must be included under American Express.

This method applies even when assessing the 240-day threshold in the first year.

Applying the revised attendance sheet, the Court directed the State to grant the benefits available to the petitioner under the Resolutions.

It further relied on Balvantbhai Motibhai Khant v. State of Gujarat, SCA No. 480 of 2019, concerning continuity of service and salary differentials where an employee who should have received permanency was later left without work or engaged through outsourcing.

If the petitioner had completed ten years’ qualifying service, any subsequent period when he was not employed was to count as continuous service for retiral benefits only; periods actually worked through outsourcing or piece-rate arrangements were to count as service, with the difference between the amounts paid and the regular salary payable to be calculated.

The authorities were directed to calculate and disburse the benefits, including arrears, within 60 days of the judgment being uploaded.

The petition was disposed of as allowed.