What Are Consequential Benefits? Seeking Clarity on Employee Entitlements After Reinstatement

We have dismissed one of our employees for instigating other employees to start a strike. After the completion of the inquiry as per the order, he raised an industrial dispute in the legal court. The labor court has passed an award setting aside the dismissal order dated 07.05.2001. The respondents are hereby directed to reinstate the claimant with continuity of service and all other consequential benefits. However, the claimant is not entitled to any back wages. We reinstated him in the year 2008 after the final disposal of the WP in the High Court.

Now, the said employee is claiming for bonus, leave salary, increment, PF, casual leave, privilege leave, and sick leave for encashment from 2001 to 2008. Please clarify whether he is entitled to the above benefits.

Please Explain the Meaning of Consequential Benefits

Regards,
Santosh Benalamath

If he is reinstated without back wages, he may not be eligible for consequential benefits as there is no basis for the arrival of wages during his terminated period. Furthermore, you can ask him to raise a dispute at an appropriate forum where the authority would spell out whether he is eligible for any benefits or not.