Invalid dismissal may not lead to reinstatement where loss of confidence makes continued employment impracticable, compensation replacing relief.

An invalid dismissal does not automatically require reinstatement in industrial adjudication. Although reinstatement is the usual relief after a termination without enquiry, the remedy depends on the facts and may be denied where continued employment has become impracticable or inexpedient. The Court treated a stenographer in a small establishment as occupying a position of confidence and trust, and held that the employee's retention of confidential communications justified a bona fide loss of confidence. On those facts, reinstatement was refused and compensation in lieu of reinstatement was held to be the proper relief.

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Issues: Whether, after holding that the termination was not a valid termination simpliciter but amounted to dismissal without enquiry, the employee was nevertheless entitled to reinstatement or only to compensation in lieu of reinstatement.

Analysis: In industrial adjudication, reinstatement is the normal consequence of an invalid dismissal, but it is not an invariable rule. The appropriate relief depends upon the facts of each case, and reinstatement may be refused where the nature of the employment is such that continued association has become impracticable or inexpedient. A stenographer in a small establishment occupies a position of confidence and trust, and the employer's loss of confidence may be relevant where the employee has retained copies of confidential communications and thereby created a legitimate apprehension that such conduct may recur. On those facts, reinstatement was considered unsuitable and compensation was found to be the proper relief.

Conclusion: The employee was not entitled to reinstatement and was entitled only to compensation in lieu of reinstatement.

Ratio Decidendi: Where a dismissal is held invalid, reinstatement is ordinarily granted, but it may be refused and compensation substituted if the employee's position is one of confidence and the employer has a bona fide and reasonable loss of trust making reinstatement inexpedient.

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