EID Parry directed to re-employ 650 workers

“An extraordinary situation calls for a path-breaking approach to offer extraordinary remedy with principles of fairness, equity, good conscience and socio-legal justice without offending the rule of law altogether. As far as the present case on hand, the claim of reinstatement alone is prohibited when a compensation amount is paid… [but] there is no bar for ordering re-employment of the workers while taking into consideration the peculiar facts and circumstance of the case,” said Justice V Parthiban, upholding the order of the Industrial Tribunal. 

The dispute dates back to 1992 when EID Parry purchased the building and machineries of Nava Bharat Ferro Alloys at Pugalur, but without taking over the employees. The company terminated the workers after paying notice pay and compensation, and all other statutory dues like gratuity and PF were also settled. But the workers raised an industrial dispute before the state government, which was referred to the tribunal. Since the dispute was kept pending for 16 years and nearly 200 workers have been re-employed on fresh terms by the management, the tribunal ordered re-employment and not re-instatement. This order was challenged by both EID Parry and the workers.