Sachin 25 September 2025

Contract employment reinstatement and gratuity encashment

Sir,

My cousin worked for 7 years in Contract Basis in a company owned by State Government on direct payroll. and was placed under suspension citing a false reason due to some disagreement with his superiors and office politics, and they have foreclosed the employment contract without citing any reason 2.5 years ago. The employment contract is given for 3 years initially and renewed for further 3 years on expiry, is the nature of employment in the company.

My cousin had filed the case before Labour Officer, but 2.5 years have elapsed for the matter to be referred to the labour court. and duration of the employment contract has ended about 8 months ago.

My Cousin is contesting the matter personally in the labour court, and the stage of the case is Framing of Issues,

Please suggest if my cousin can propose the Preliminary Issue on "weather my cousin is eligible to be reinstated particularly when the employment contract has ended?" at this stage of the case or will it go against him, along with the preliminary issue proposed by the opposite side "Weather enquiry conducted is fair?" As my cousin doesn't want to waste his time on unfruitful litigation.

My Cousin is relying on citation Ram Manohar Joint Hospital Vs Munna Prasad Saini and Anothe, Civil Appeal No. 5810 of 2021. wherein Supreme court reinstated a person, for the reason the company has retained a lesser seniority canditate against person being reinstated.

Thanks,

Sachin.

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Quick Summary

This discussion concerns a former state government contract employee seeking reinstatement after their 7-year contract was terminated. The contract has since expired, and the case is at the 'framing of issues' stage in labour court. The employee is unsure whether proposing reinstatement as a preliminary issue is advisable, especially given the contract's expiry and the employer's counter-argument about the fairness of the enquiry. Guidance is sought on whether reinstatement is still possible and how to proceed effectively in litigation.

3 Replies

T. Kalaiselvan, Advocate (Advocate) 25 September 2025

Since the csase is pending before labor court for almost more than 2 years and also it is in the stage of framing of issues, any opinion rendered in this regard would be a misguidance.

A plaintiff can submit his proposed issues, including any that could be treated as preliminary issues, to the court at the time of framing of issues to assist the court.

While the duty to frame proper issues rests primarily with the court, both parties are expected to help the court understand the facts and the core disputes to ensure all material issues are correctly identified and framed.

If he has filed the case seeking relief and remedy, he has to undergo the strenuous hardships due to the long stretched litigation.

If he does not wants to waste his time in this litigation he can decide accordingly.