Payment Of Back Wages Not An Automatic Consequence Of Unlawful Dismissal: Calcutta High Court
2 months ago

Payment Of Back Wages Not An Automatic Consequence Of Unlawful Dismissal: Calcutta High Court

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The Calcutta High Court has held that the direction of payment of back wages is discretionary and it vests a court with the authority to consider the totality of facts and circumstances in any individual case. “Direction towards payment of back wages is a discretionary power which has to be exercised by a court keeping in mind the facts in their entirety and neither a strait jacket formula nor a rule of universal application can be laid down in such cases,” the division bench held. The Court in its judgement clarified that a terminated employee seeking back wages is required to explicitly plead or provide a statement before the court of first instance or adjudicating authority that they were not gainfully employed or were employed at a lower wage. The court further highlighted, “On perusal of the entire materials as placed before us and on consideration of the reported decision of the Hon'ble Apex Court as cited from the side of the Bar it appears to us that the legal position is fairly settled by a catena of decisions that direction to pay back wages in its entirety is not an automatic consequent upon the declaration of dismissal order bad in law.” “The concept of discretion is in-built in such exercise.

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