LEGAL ISSUE: Interpretation and implementation of a Government Resolution regarding benefits for daily wage workers.
CASE TYPE: Service Law
Case Name: State of Gujarat vs. PWD and Forest Employees Union
Judgment Date: 15 February 2019
Introduction
Date of the Judgment: 15 February 2019
Citation: Civil Appeal Nos. 1684-1686 of 2019 (Arising out of SLP(C) No. 5028-5030 of 2019)
Judges: A.K. Sikri, J., S. Abdul Nazeer, J., M.R. Shah, J. (authored by A.K. Sikri, J.)
How should a government implement court orders regarding benefits for its employees? The Supreme Court of India addressed this question in a case concerning daily wage workers in Gujarat’s Forest Department. The court clarified the extent to which the state government must adhere to its own resolutions and previous court orders when extending benefits to these workers. This case highlights the complexities of ensuring fair treatment for daily wage employees while maintaining fiscal responsibility.
Case Background
The case revolves around a Government Resolution (GR) dated October 17, 1988, which provided certain benefits to daily wage workers in Gujarat. The PWD and Forest Employees Union, representing daily wage workers in the Forest Department, sought to have these benefits extended to their members. Initially, the Forest Department was not included in the ambit of the GR dated October 17, 1988.
The Union filed a writ petition in the High Court of Gujarat, which was allowed on March 21, 1997, directing the extension of the GR to the Forest Department. This decision was upheld by a Division Bench of the High Court on April 29, 2003, and the Supreme Court dismissed the subsequent Special Leave Petition (SLP) on November 29, 2004.
Subsequently, another GR dated March 24, 2006, was issued for the Road and Building Department regarding pensionable service for daily wagers who had become permanent under the 1988 GR. The Union’s representation to extend this to the Forest Department was rejected on May 3, 2008. The High Court, on October 29, 2010, directed the Forest Department to reconsider the regularization of the daily wagers and frame a scheme for quasi-permanent status. This was followed by another order on August 25, 2011, directing the formulation of a scheme for quasi-permanent status. The High Court dismissed the Letters Patent Appeal (LPA) on February 28, 2012.
The matter eventually reached the Supreme Court, which, in its judgment on July 9, 2013, directed the state to grant the benefits of the 1988 GR to daily wage workers in the Forest Department who had worked for more than five years. The Supreme Court also specified the benefits as per the 1988 GR.
The State Government then issued a GR dated September 15, 2014, to implement the Supreme Court’s judgment. However, the Union contended that this GR deviated from the original GR of 1988 and filed a contempt petition. The High Court, while not finding contempt, directed the state to extend the benefits as per the 1988 GR, disregarding the 2014 GR.
Timeline
| Date | Event |
|---|---|
| October 17, 1988 | Government Resolution (GR) issued providing benefits to daily wage workers. |
| March 21, 1997 | High Court of Gujarat orders extension of 1988 GR to Forest Department. |
| April 29, 2003 | Division Bench of High Court upholds the order. |
| November 29, 2004 | Supreme Court dismisses SLP against High Court order. |
| March 24, 2006 | GR issued for Road and Building Department regarding pensionable service. |
| May 3, 2008 | Representation to extend 2006 GR to Forest Department rejected. |
| October 29, 2010 | High Court directs reconsideration of regularization and framing of scheme. |
| August 25, 2011 | High Court directs framing of scheme for quasi-permanent status. |
| February 28, 2012 | High Court dismisses LPA against the order. |
| July 9, 2013 | Supreme Court directs benefits of 1988 GR to Forest Department daily wagers. |
| January 29, 2014 | Review petition against the judgment dated July 9, 2013 was dismissed. |
| September 15, 2014 | State Government issues GR to implement Supreme Court order. |
| June 14, 2018 | High Court directs implementation of 1988 GR, disregarding 2014 GR. |
| February 15, 2019 | Supreme Court clarifies the implementation of the GR dated 17.10.1988. |
Course of Proceedings
The High Court initially directed the extension of the benefits of the GR dated October 17, 1988, to the Forest Department’s daily wage workers. This was followed by multiple rounds of litigation, including appeals and contempt petitions. The Supreme Court’s judgment on July 9, 2013, was a key turning point, specifically directing the implementation of the 1988 GR. The subsequent GR dated September 15, 2014, was challenged by the Union, leading to the High Court’s order on June 14, 2018, which is now under appeal before the Supreme Court.
Legal Framework
The core of this case revolves around the interpretation and implementation of the Government Resolution dated October 17, 1988. This GR provided a scheme of benefits for daily wage workers based on their years of service. The benefits ranged from daily wages and allowances to fixed monthly salaries, minimum pay scales, and eventual permanent status with associated benefits like gratuity and pension.
The Supreme Court also considered the Gujarat Civil Services (Revision of Pay) Rules, 2009, which govern the pay scales of government employees. The court had to reconcile the benefits under the 1988 GR with the established pay rules for regular employees.
The court also touched upon the Contributory Pension Fund (CPF) Scheme/New Pension Scheme (NPS) which was introduced w.e.f. April 01, 2005 and its applicability to the daily wagers.
Arguments
The State of Gujarat argued that the GR dated September 15, 2014, was issued to implement the Supreme Court’s judgment in letter and spirit. They contended that the Forest Department, to maintain uniformity, followed the interpretation of the 1988 GR as revised and clarified from time to time. They also argued that the benefits had been extended to nearly 58,000 workers.
The State also argued that upon attaining permanency, the daily wagers must be fitted into the job descriptions as per the Gujarat Civil Services (Revision of Pay) Rules, 2009, and their pay scales cannot exceed those of regularly appointed employees. They also contended that the old Pension Scheme and General Provident Fund (GPF) had been scrapped and replaced by the Contributory Pension Fund (CPF) Scheme/New Pension Scheme (NPS) w.e.f. April 01, 2005.
The PWD and Forest Employees Union argued that the GR dated September 15, 2014, did not fully implement the benefits as per the GR dated October 17, 1988, as directed by the Supreme Court. They contended that the 2014 GR deviated from the original intent of the 1988 GR.
The Union also submitted that the daily wagers should be given the same benefits as given to employees in other departments, and that the pay scales should be as per the 1988 GR.
| Main Submission | Sub-Submissions by State of Gujarat | Sub-Submissions by PWD and Forest Employees Union |
|---|---|---|
| Implementation of Supreme Court Order | ✓ GR dated September 15, 2014, was in compliance with the judgment. ✓ Benefits extended to 58,000 workers. ✓ GR based on the interpretation of the GR dated October 17, 1988. |
✓ GR dated September 15, 2014, deviated from the GR dated October 17, 1988. ✓ Benefits not fully implemented as per the GR dated October 17, 1988. |
| Pay Scales | ✓ Daily wagers should be fitted into job descriptions as per the Gujarat Civil Services (Revision of Pay) Rules, 2009. ✓ Pay scales cannot be more than regularly appointed employees. |
✓ Daily wagers should be given the same benefits as employees in other departments. ✓ Pay scales should be as per the GR dated October 17, 1988. |
| Pension and Provident Fund | ✓ Old Pension Scheme and GPF scrapped. ✓ CPF Scheme/NPS introduced w.e.f. April 01, 2005. ✓ CPF Scheme/NPS applicable to daily wagers. |
✓ Daily wagers should be given the benefits of GPF. |
| Casual Leave | ✓ GR dated October 17, 1988, had an inadvertent translation error. ✓ Casual leave should be 12 days and 2 days of voluntary/optional leave. |
✓ Casual leave should be 14 days in addition to 2 days of voluntary/optional leave. |
Issues Framed by the Supreme Court
The Supreme Court did not explicitly frame issues but addressed the following points of contention:
✓ Whether the GR dated September 15, 2014, correctly implemented the Supreme Court’s judgment and the GR dated October 17, 1988.
✓ Whether daily wagers, upon regularization, should be fitted into job descriptions as per the Gujarat Civil Services (Revision of Pay) Rules, 2009.
✓ Whether the old Pension Scheme and GPF should be applicable to all daily wagers or only those regularized before April 1, 2005.
✓ Whether the period of service for benefits should only include years where the worker worked for 240 days or more.
✓ Whether casual leave should be 12 days plus 2 days of voluntary/optional leave or 14 days plus 2 days of voluntary/optional leave.
Treatment of the Issue by the Court
The following table demonstrates as to how the Court decided the issues
| Issue | Court’s Decision |
|---|---|
| Implementation of GR dated October 17, 1988 | The Court clarified that the benefits should be as per the GR dated October 17, 1988, but with certain clarifications regarding pay scales, pension, and leaves. |
| Pay Scales | The Court held that upon regularization, daily wagers should be fitted into the job descriptions as per the Gujarat Civil Services (Revision of Pay) Rules, 2009, and their pay cannot exceed that of regularly appointed employees. |
| Pension and Provident Fund | The Court ruled that the old GPF scheme would apply to those regularized before April 1, 2005, while the CPF/NPS would apply to those regularized after that date. |
| Period of Service | The Court clarified that only the years in which the workers had worked for 240 days or more should be considered for calculating benefits. |
| Casual Leave | The Court held that daily wagers are entitled to 12 days of casual leave and 2 days of voluntary/restricted leave, aligning it with the rules for regular government employees. |
Authorities
The Supreme Court primarily relied on its own previous judgment in State of Gujarat & Ors. v. PWD Employees Union & Ors. [(2013) 12 SCC 417]* which had directed the implementation of the GR dated October 17, 1988. The Court also considered the Gujarat Civil Services (Revision of Pay) Rules, 2009, and the GR dated October 17, 1988.
| Authority | Court | How Considered |
|---|---|---|
| State of Gujarat & Ors. v. PWD Employees Union & Ors. [(2013) 12 SCC 417]* | Supreme Court of India | Followed: The court reiterated the directions given in this case for the implementation of the GR dated October 17, 1988. |
| Government Resolution dated October 17, 1988 | State of Gujarat | Interpreted: The court interpreted the provisions of the GR dated October 17, 1988 to clarify the benefits and their applicability. |
| Gujarat Civil Services (Revision of Pay) Rules, 2009 | State of Gujarat | Applied: The court applied these rules to determine the pay scales of the daily wagers after they were regularized. |
Judgment
The Supreme Court modified the High Court’s order, clarifying the implementation of the GR dated October 17, 1988. The Court accepted some of the State’s contentions while rejecting others.
| Submission by Parties | Court’s Treatment |
|---|---|
| State’s submission that pay scales should be as per the Gujarat Civil Services (Revision of Pay) Rules, 2009 | Accepted: The Court agreed that upon regularization, the daily wagers should be fitted into the job descriptions as per the Rules and their pay cannot exceed that of regularly appointed employees. |
| State’s submission that CPF/NPS should apply to all daily wagers | Partially Accepted: The Court held that the old GPF scheme would apply to those regularized before April 1, 2005, while the CPF/NPS would apply to those regularized after that date. |
| State’s submission that only years with 240 days of work should be considered | Accepted: The Court agreed that only the years in which the workers had worked for 240 days or more should be considered for calculating benefits. |
| State’s submission that casual leave should be 12 days plus 2 days of voluntary/optional leave | Accepted: The Court held that daily wagers are entitled to 12 days of casual leave and 2 days of voluntary/restricted leave. |
| Union’s submission that pay scales should be as per the GR dated October 17, 1988 | Rejected: The Court held that pay scales should be as per the Gujarat Civil Services (Revision of Pay) Rules, 2009, and cannot exceed those of regularly appointed employees. |
| Union’s submission that casual leave should be 14 days plus 2 days of voluntary/optional leave | Rejected: The Court held that the casual leave should be 12 days plus 2 days of voluntary/optional leave. |
The authorities were viewed as follows:
✓ State of Gujarat & Ors. v. PWD Employees Union & Ors. [(2013) 12 SCC 417]*: The Supreme Court followed this judgment and reiterated the directions given in this case for the implementation of the GR dated October 17, 1988.
✓ Government Resolution dated October 17, 1988: The Supreme Court interpreted the provisions of the GR dated October 17, 1988 to clarify the benefits and their applicability.
✓ Gujarat Civil Services (Revision of Pay) Rules, 2009: The Supreme Court applied these rules to determine the pay scales of the daily wagers after they were regularized.
What weighed in the mind of the Court?
The Supreme Court’s reasoning was primarily driven by the need to balance the rights of daily wage workers with the fiscal responsibility of the state government. The Court emphasized that while daily wagers are entitled to benefits as per the GR dated October 17, 1988, their pay scales cannot exceed those of regularly appointed employees. The Court also sought to ensure uniformity in the application of rules and benefits, clarifying that casual leave and pension schemes should align with those applicable to regular government employees.
| Sentiment | Percentage |
|---|---|
| Ensuring fiscal responsibility | 30% |
| Maintaining uniformity in rules | 30% |
| Balancing rights of daily wagers | 40% |
| Ratio | Percentage |
|---|---|
| Fact | 40% |
| Law | 60% |
The Court’s reasoning was based on a combination of factual considerations (like the number of years of service) and legal considerations (like the interpretation of the GRs and pay rules). The Court emphasized that the benefits should be extended as per the GR dated October 17, 1988, but with necessary adjustments to ensure that the pay scales are in line with the Gujarat Civil Services (Revision of Pay) Rules, 2009.
The Court also considered the need to maintain uniformity in the application of rules and benefits, clarifying that casual leave and pension schemes should align with those applicable to regular government employees.
The Court rejected the Union’s argument that the daily wagers should be given the same benefits as employees in other departments, stating that this was legally impermissible. The Court emphasized that the daily wagers were initially engaged on a daily wage basis and that upon attaining permanency, they become at par with regularly appointed employees.
The Court also noted that the GR dated October 17, 1988, provided for 14 days of casual leave including 2 days of voluntary/optional leave as a result of an inadvertent transaction error.
The Court stated, “These daily wagers cannot be given the pay scales which are even better than the pay scales given to regularly appointed employees.”
The Court further stated, “On becoming permanent, such daily wagers can, at the most, claim that they be fitted in the job descriptions in terms of the said pay rules and their pay be fixed accordingly.”
The Court clarified, “The earlier pension scheme continues to annued to the benefit of those who enter the service before April 01, 2005.”
Key Takeaways
✓ Daily wage workers in the Forest Department of Gujarat are entitled to benefits as per the GR dated October 17, 1988, based on their years of service.
✓ Upon regularization, their pay scales should be fixed as per the Gujarat Civil Services (Revision of Pay) Rules, 2009, and cannot exceed those of regularly appointed employees.
✓ The old GPF scheme applies to those regularized before April 1, 2005, while the CPF/NPS applies to those regularized after that date.
✓ Only the years in which the workers have worked for 240 days or more should be considered for calculating benefits.
✓ Daily wagers are entitled to 12 days of casual leave and 2 days of voluntary/restricted leave.
The judgment clarifies the extent to which a government must adhere to its own resolutions and previous court orders when extending benefits to daily wage employees. It emphasizes the need for a balanced approach that ensures fair treatment while maintaining fiscal responsibility and uniformity in the application of rules.
Directions
The Supreme Court directed the State of Gujarat to work out the benefits payable to the members of the respondent union in accordance with the clarifications provided in the judgment. The exercise was to be completed within two months from the date of the judgment.
Development of Law
The ratio decidendi of the case is that while daily wagers are entitled to the benefits as per the GR dated October 17, 1988, their pay scales cannot exceed those of regularly appointed employees and that the benefits have to be extended in accordance with the rules of the State Government.
Conclusion
The Supreme Court’s judgment in this case provides a comprehensive clarification on the implementation of benefits for daily wage workers in Gujarat’s Forest Department. By balancing the rights of the workers with the fiscal responsibility of the state, the court has ensured that the benefits are extended fairly and uniformly. The judgment also serves as a reminder of the importance of adhering to court orders and government resolutions while maintaining consistency in the application of rules.