AIR 2007 SUPREME COURT 1040 ::2007 AIR SCW 834 ::2007 LAB. I. C. 956 ::2007 (2) AIR Kar R 474 ::2007 (1) CurLR 931 ::(2007) 112 FacLR 880 ::2007 (2) SCC 265 ::(2007) 2 Scale 340 ::2007 (2) ServLJ 482 SC ::(2007) 3 AllMR 394 (SC) ::2007 (3) All MR 394 ::2007 (1) ESC 84 ::2007 (1) LabLN 740 ::2007 (3) Mah LJ 63 ::2007 (2) RajLW 877 ::2007 (1) SCT 717 ::2007 (2) ServLR 475 ::2007 (1) Supreme 440 ::(2007) 2 JCR 126 (SC) ::(2007) 2 CurLJ(CCR) 456

Supreme Court Of India

(From : Punjab and Haryana)*

Hon'ble Judge(s): G. P. Mathur, Dalveer Bhandari , JJ

Industrial Disputes Act (14 of 1947) , S.25F(b), S.2(aaa)— Retrenchment compensation - Computation - Principle of 26 working days evolved under Gratuity Act - Is not applicable. C. W. P. No. 4475 of 2005, D/- 21-3-2005 (P and H), Reversed. Payment of Gratuity Act (39 of 1972) , S.4— The principle of "26 working days" is not to be applied for calculating retrenchment compensation to be paid as per S. 25-F(b)(i) to a monthly paid workman.(Para 12) Section 25-F(b) requires payment of retrenchment compensation to a workman which shall be equivalent to 15 days' average pay for every completed year of continuous service or any part thereof in excess of six months. Average pay has been defined in Section 2(aaa) and, therefore, average pay has to be determined strictly in accordance with the aforesaid provision and not on the basis of some hypothetical calculation. Section 2(aaa) contemplates four different kinds of wage period for payment of wages. Clause (i) speaks of monthly paid workman and here the average wage has to be calculated by arriving at the average or mean of three complete calendar months. Clause (ii) refers to weekly paid workman. Clause (iii) deals with daily wage workman. The fourth category would be a case where it is not covered by any of the sub-clauses (i), (ii) or (iii). The language used in Secti....