'Inability To Create Permanent Posts No Grounds To Employ Temporary Workers For Unreasonably Long Period': Bombay High Court

The Bombay High Court has held that the inability to create permanent posts or financial limitations cannot justify employing workers who perform permanent and essential duties on a temporary basis for years together. The Court observed that continuing such workers on short-term or contractual appointments amounts to unfair labour practice and violates the constitutional principles of equality and dignity in employment.

Justice Milind N. Jadhav was hearing writ petitions filed by drivers and firemen of the Malegaon Municipal Corporation challenging the orders of the Industrial Court, which had dismissed their complaints of unfair labour practices. The petitioners had been engaged by the Corporation since 2017 without any interruption in service. Their services were abruptly terminated in July 2025.

The Petitioner argued that the reason given by the Respondent in their Affidavit-in-Reply, that the administrative expenses of the Corporation have crossed 45% of the total expenses of establishment, cannot be held as a reason against granting permanency to the Petitioners.

The Court noted that if the Corporation's argument is accepted, it would amount to enslavement of the Petitioners as bonded labourers, and the Court cannot be a mute spectator to such a situation. It observed:

“… continuation of Petitioners until their termination on a temporary basis prima facie amounted to exploitation of Petitioners when the nature of their duty is such that they are engaged for performing the tasks alongside permanent/regular employees of the Corporation. Once this facet is proven, Petitioner deserve permanency.”

The Court observed that the petitioners were performing integral and regular functions of the Municipal Corporation, such as operating fire services and driving essential vehicles. It held that on the ground of non-availability of sanctioned posts, the case of the Corporation cannot be accepted. On the argument of the corporation that it is powerless due to the limit on its expenditure prescribed by the government resolution, the Court observed:

“… the condition contained in the Government Resolution cannot be held as a yardstick for depriving the benefit of permanent status to the workmen when in the same breath Corporation has the power to appoint Safai Kamgars and all those appointments expressly recommended and sanctioned by the State Government. Thus, denial of the substantive right of Petitioners would be arbitrary and high-handed.”

The Court reiterated that similarly placed workers cannot be treated differently, and it does not align with Articles 14, 16 and 21 of the Constitution of India.

Accordingly, the Court quashed the orders of the Industrial Court and the termination orders issued by the Corporation on July 2, 2025. It directed the Malegaon Municipal Corporation to reinstate the petitioners within one week with continuity of service, full back wages, and to confer upon them the status of permanent employees from the date of the judgment.

Case Title: Pradip Ramesh Shinde & Ors. v. Malegaon Municipal Corporation, Malegaon [Writ Petition No. 7949 of 2025]

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