Reinstatement with full back wages is discretionary; short service, employer sickness, and non-employment burden can justify compensation instead.

Under Section 11A of the Industrial Disputes Act, 1947, reinstatement with full back wages is discretionary, not automatic. In deciding the proper relief, the Court must consider the nature and duration of employment, the employer's financial condition, and whether the workman has first discharged the burden of showing non-gainful employment after termination. The burden on non-employment is initially negative and lies on the workman, with the onus shifting only after that threshold is met. Where the employer is a sick unit and employment was short and intermittent, equity may justify compensation in place of reinstatement with full back wages. The award was set aside and compensation was substituted.

---

---

Issues: Whether the award of reinstatement with full back wages was justified, and whether compensation could be substituted having regard to the short duration of employment, the financial condition of the employer, and the burden regarding gainful employment.

Analysis: Relief of reinstatement and back wages under Section 11A of the Industrial Disputes Act, 1947 is discretionary and not automatic. In determining the appropriate relief, relevant factors include the nature and duration of employment, the financial condition of the establishment, and whether the workman has discharged the burden of showing that he was not gainfully employed after termination. The burden on non-employment is a negative one resting initially on the workman, with the onus shifting only after that burden is discharged. Where the employer is a sick unit and the workman has served only for short and intermittent periods, the court must balance equities and may grant compensation instead of reinstatement with full back wages.

Conclusion: The award of reinstatement with full back wages was set aside and compensation of Rs. 2,00,000 was directed in substitution.

---