No notice to be provided before retrenching a contract or casual worker

It is a general perception that once a worker completes 240 days of service in preceding 12 months, he cannot be retrenched without providing one month's notice indicating the reasons for retrenchment. If no notice is served the workman should be paid wages for the period of the notice.

Though this perception holds true but there are certain exceptions to it. It has now been clarified by the Supreme Court that contractual employees are not regular employees and their termination does not amount to retrenchment. Also, the casual workers employed in different establishments under a single employer can now be retrenched without giving a notice even if he or she has completed 240 days of service. Thus, provisions under Section 25F of the Industrial Disputes Act, 1947 need not be complied with before retrenching a casual or contractual worker.