Non-renewal of a fixed-term contract is excluded from retrenchment under Section 2(oo)(bb), rendering Section 25-F inapplicable.

The appellant was engaged as a Chowkidar on a contractual basis for 89 days from 24 July 1997 and was granted successive extensions, allegedly continuing in service until 30 June 1998.

His services were not extended from 1 July 1998, without notice or reasons.

The appellant claimed that he had completed more than 240 days of service during the preceding twelve months and that the termination violated the mandatory requirements of the Industrial Disputes Act, 1947.

The Labour Court allowed his claim and passed an award dated 9 February 2001 in his favour.

The State challenged the award in CWP No. 7667 of 2001, which was allowed by the Single Judge on 9 July 2025, resulting in the setting aside of the Labour Court’s award.

The appellant preferred the present Letters Patent Appeal.

Whether the cessation of the appellant’s contractual employment upon non-renewal of his engagement amounted to “retrenchment” under Section 2(oo) of the Industrial Disputes Act, 1947.

Whether the termination was excluded from the definition of retrenchment under Section 2(oo)(bb), and consequently whether the protections under Section 25-F of the Act were attracted.

The Court applied Section 2(oo) of the Industrial Disputes Act, 1947, which defines “retrenchment” as termination of a workman’s service by the employer for any reason, subject to specified exclusions.

Section 2(oo)(bb) excludes from retrenchment the termination of a workman’s service resulting from the non-renewal of a fixed-term contract upon its expiry, or termination in accordance with a stipulation contained in the contract.

Consequently, where contractual employment ends due to expiry or non-renewal of the contract, the notice, compensation and other safeguards under Section 25-F are not attracted.

The appellant’s engagement was admittedly contractual and for specified periods, with successive extensions only up to 30 June 1998.

The Court treated the cessation of employment from 1 July 1998 as resulting from the non-renewal or non-extension of the contractual engagement, rather than as an independent termination by way of retrenchment.

Since such cessation fell within the statutory exception under Section 2(oo)(bb), the appellant’s completion of more than 240 days, even if accepted, did not make Section 25-F applicable.

The Court therefore found no illegality, infirmity or perversity in the Single Judge’s decision setting aside the Labour Court’s award.

Accordingly, it held that Section 25-F was not attracted, upheld the Single Judge’s judgment dated 9 July 2025, and dismissed the appeal.

Pending miscellaneous applications, if any, were also disposed of.