TASMAC Must Grant Permanent Status to Employees Completing the Statutory Continuous-Service Period

The second respondents in the five petitions were employed as salesmen in TASMAC shops and sought permanent status before the Assistant Commissioner of Labour (Enforcement).

By orders dated 14 May 2026, the Assistant Commissioner directed TASMAC to confer permanent status on them.

TASMAC challenged those orders under Article 226 of the Constitution.

At the hearing, the Court was referred to a Madurai Bench Division Bench judgment dismissing TASMAC’s appeals against orders granting permanent status in comparable cases.

1. Whether the Assistant Commissioner’s orders directing TASMAC to confer permanent status on the respondent-employees should be set aside.

2. Whether the Madurai Bench Division Bench judgment in W.A. (MD) Nos. 2017 to 2022 of 2025 and 651 to 755 of 2026 warranted dismissal of these petitions.

The Court referred to the Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981, and stated that management is legally bound to grant permanent status to employees who have completed the mandatory period of continuous service prescribed by the relevant labour laws.

It also relied on the Madurai Bench Division Bench judgment in W.A. (MD) Nos. 2017 to 2022 of 2025 and 651 to 755 of 2026, which had affirmed the grant of permanent status in comparable proceedings.

The Court noted that the impugned orders granted permanent status to TASMAC salesmen and that the Madurai Bench Division Bench had already dismissed TASMAC’s appeals in comparable cases, thereby confirming the grant of permanent status.

In light of that decision and the stated obligation to grant permanent status to employees who satisfy the prescribed continuous-service requirement, the Court found no basis to allow TASMAC’s challenges.

There was no order as to costs, and the connected miscellaneous petitions were closed.