Employers cannot backdate an employee's termination in order to deprive them of benefits accrued during service, according to a recent ruling by the Punjab and Haryana High Court. The court was hearing a 25-year old case involving a former roadways worker whose termination date had been retrospectively changed.
Justice Namit Kumar emphasized that termination takes effect either immediately from the date of the order, or on a future date specified. However, backdating a termination order to an earlier date cannot be allowed and should not strip employees of entitlements earned. “Terminations cannot apply retroactively prior to when they actually occurred, as this would improperly remove benefits accumulated during employment,” the judge noted.
The petition in question was filed back in 1999 challenging actions by the Punjab Roadways Transport Corporation. The employee's date of birth on record had been altered, and termination subsequently backdated to December 1994. By setting this decision aside regarding retrospective application, the court upheld that a worker's accrued rights cannot be nullified through unlawful procedures.
The petitioner's retirement will now be recognized from the actual June 1995 termination order date. All consequential benefits from January to June 1995 must also be granted within three months. This significant ruling ensures lawful process is followed when ending work relationships, protecting worker entitlements from impermissible retroactive denial.
