Umakanthan53
Labour Law & Hr Consultant

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Dear Experts:
In one case, in 2017 the Authority concerned under shops & Establishment Act set asiding the dismissal of employee in 2014. However, the employee has attained the age of superannuation on the very next day of the order passed by the Authority concerned. In a writ petition over the order of the Authority Concerned, the High Court passed a simple order directing the employer to pay the terminal benefits after due deduction of dues if any payable by the employee. The Management again preferred writ appeal over the single judge order. Now the Management decides to settle the issue amicably before the outcome of the Writ Appeal pending in HC. Now my query is:
1. The single judge of the High Court has made specific direction to the Management to pay terminal benefits after deduction of dues if any. will it mean only the F & F settlement upto the date of dismissal or it mean by inclusive of back wages, Bonus etc.etc. with statutory liability for his non-employment period from the date of dismissal to attained the age of superannuation?
Request clarification from the experts. Thanks & regards, V Sridharan

From India, Mumbai
Dear Sridhar,
You could have given the extract of the operative portion of the order of the Appellate Authority under the S&E Act. Any how, in as much as the order having set aside the dismissal and the hon'ble single Judge of the HC having directed the employer to pay the terminal benefits, the employee has to be impliedly reinstated into service with back wages, continuity of service and all attendant benefits from the date of dismissal in 2014. Since he attained the age of superannuation on the very next day of the order, he shall be deemed to have been retired and the salary dues from the date of dismissal including annual increments if any, annual bonus etc have to be paid to him as arrears. Certainly these items also form part of the usual terminal benefits such as gratuity, cash value of leave at credit etc.
You can effect a settlement u/s 18(1) of the ID Act, 1947 with the employee concerned for the sake of caution and withdraw the Writ Appeal.

From India, Salem
Thank you very much Sri Umakanthan Sir for your valuable views. It is our regular practice to enter into settlement u/s 18(1) of the ID Act disputed matters, if any comes for settlement. Likewise this would also be done. Regards, V Sridhar
From India, Mumbai
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