
High Court Protects Employee Rights: Quashes Unjust Disengagement in J-k.image/KL
High Court Protects Employee Rights: Quashes Unjust Disengagement in J-k
The High Court of Jammu and Kashmir and Ladakh has emphasized that terminating a contractual appointment based on allegations of misconduct, which casts a stigma on the employee, requires affording the individual an opportunity for a hearing.
In a recent ruling, Justice M A Chowdhary, on a single bench, granted relief to 16 individuals by setting aside an order issued on September 16, 2022, by the Managing Director of the J&K Handicrafts Corporation, which resulted in their disengagement. The petitioners contended that they had been engaged by the Corporation on a consolidated, contractual, need, or contingency basis for various posts and had diligently fulfilled their duties.
The disengagement, according to the petitioners, occurred following a complaint lodged with the Anti Corruption Bureau against the then Managing Director. The ACB recommended their disengagement, alleging that the appointments had been made through the abuse of authority by various Managing Directors.
The petitioners argued that the disengagement took place without providing them an opportunity to be heard, asserting that the Managing Director was obligated to follow the principles of natural justice and due process by affording them a hearing.
The counsel representing the petitioners contended that the termination amounted to an abuse of power and imposed a stigma on the individuals, insisting that such action should not be taken without a proper inquiry.
On the other hand, the senior Assistant Advocate General argued that contractual employment does not confer a vested right to continue, and courts cannot direct an employer to alter the contractual employment status once both parties have consented to it.
After considering both arguments, the court concluded that if an order is based on allegations, it is stigmatic and punitive. The court affirmed that terminating even a contractual appointment necessitates affording the employee an opportunity for a full-fledged inquiry into the allegations of misconduct.
Consequently, the court quashed the Managing Director’s order and directed the officials to reinstate the petitioners, allowing them to resume their duties as initially assigned. The court also instructed that the withheld wages, if any, earned by the petitioners during their service period, be released to them. However, the court clarified that the quashing of the order does not preclude authorities from taking action against the alleged illegal engagements, following the rules if warranted.
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