1. Overview of the Case
The petitioner challenged the concurrent judgments of the Sindh Labour Appellate Tribunal and the Sindh Labour Court dismissing his grievance application against his termination from service after sixteen years. The court laid down the principle that an employer cannot terminate an employee for alleged unauthorized absence or misconduct without confronting him through a regular, lawful disciplinary process and affording a meaningful opportunity of defence in accordance with the principles of natural justice, and that retrospective termination of service is legally unsustainable.
2. Brief Facts
Briefly, the petitioner claims that he was appointed as Junior Clerk by respondent No.1 on 17.05.2006 on a consolidated salary of Rs.3,500/- per month and remained on its rolls, receiving salary and being registered with EOBI. The petitioner has produced material, including his appointment order, salary record, bank statements and EOBI registration, establishing that he was appointed by respondent No.1 and remained on its rolls for a substantial period.
3. Questions of Law
- Can an employer terminate an employee for alleged unauthorized absence without conducting a regular disciplinary inquiry?
- Is a retrospective termination order legally sustainable without prior determination of misconduct through due process?
4. The Court’s Answers
Question 1
Can an employer terminate an employee for alleged unauthorized absence without conducting a regular disciplinary inquiry?
“The termination of the petitioner, having been effected without satisfactory proof of compliance with the mandatory requirements of disciplinary proceedings and the principles of natural justice, cannot be sustained.”
Paragraph 12
Question 2
Is a retrospective termination order legally sustainable without prior determination of misconduct through due process?
“The termination of the petitioner, having been effected without satisfactory proof of compliance with the mandatory requirements of disciplinary proceedings and the principles of natural justice, cannot be sustained.”
Paragraph 12
5. Practical Relevance
Employers should document disciplinary allegations, provide the required opportunity of defence and consider the consequences of an unlawful termination. Employees and advisers should examine the actual order, underlying inquiry and available remedies.