A resident of Ropar, Prem Chand was inducted as a watchman with the government on daily wages on December 7, 1979 and worked till February 26, 1983.

His services were terminated on February 26, 1983, but the order of termination was later set aside by the Labour Court, which also directed the authorities to reinstate him, but without arrears.

He was reinstated on August 11, 1983, put on regular payscale and served till he was superannuated on December 31, 1998.

The Labour Court also directed that Prem Chand should be paid gratuity as if there was no discontinuity in his service.

District Food and Supplies Controller, Ropar, however, challenged the order before the High Court.

Counsel for the Controller submitted that for calculating gratuity only the actual service can be considered in case of a daily wage worker.

Dismissing the appeal filed by the Controller and upholding the decision of the Labour Court, Justice K Kannan said, “The provision for continuity of service in the award of the Labour Court could only be seen in the context of every other benefit which the workman would have been entitled to, other than the back wages, which, by express order, the Labour Court was disallowing in this particular case.”

Justice Kannan observed: “The continuity in the sense employed by the Labour Court ought, in my view, to be applied also to the entitlement of gratuity. The petition is therefore dismissed.”