Understanding Court-Ordered Terminal Benefits: Does It Cover More Than Just Final Settlement?

Dear Experts, In one case, in 2017, the Authority concerned under the Shops & Establishment Act set aside the dismissal of an employee in 2014. However, the employee had attained the age of superannuation on the very next day after the order passed by the Authority concerned. In a writ petition challenging the order of the Authority Concerned, the High Court issued a simple order directing the employer to pay the terminal benefits after deducting any dues payable by the employee. The Management then appealed the single judge's order through a writ appeal. Now, the Management has decided to settle the issue amicably before the outcome of the Writ Appeal pending in the HC.

Now, my query is:

1. The single judge of the High Court has given specific directions to the Management to pay terminal benefits after deducting any dues. Does this mean only the Full and Final settlement up to the date of dismissal, or does it include back wages, bonuses, etc., along with statutory liabilities for the non-employment period from the date of dismissal until reaching the age of superannuation?

I request clarification from the experts.

Thanks & Regards, V. Sridharan

You could have provided the extract of the operative portion of the order of the Appellate Authority under the S&E Act. Anyhow, since the order has set aside the dismissal and the honorable single Judge of the HC has 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 under Section 18(1) of the ID Act, 1947, with the employee concerned for the sake of caution and withdraw the Writ Appeal.