Case at a Glance
Two daily wagers who joined Gujarat’s Forest Department in 2004 and 2008 were denied benefits under the State’s Government Resolution of 17 October 1988 (read with the GR of 15 September 2014) because Sundays and public holidays were excluded while counting 240 days of work. The State argued that the Supreme Court’s American Express rule does not apply to daily wagers. Justice Nikhil S. Kariel rejected this, holding that Sundays and paid holidays must be counted even in the first year, that piece-rate service also counts, and directed the benefits with 7th Pay Commission arrears from 1 January 2016 within 60 days.
The petitioners began working as daily wagers in the Forest Department on 1 April 2004 and 1 January 2008. The Government Resolution dated 17 October 1988 (read with the GR of 15 September 2014) grants daily wagers who complete 240 days of work benefits such as paid Sundays, medical allowance and national festival holidays, and eventually higher benefits. The department refused their claims, and an order dated 16 March 2020 was under challenge.
By an earlier order of 20 June 2025, the High Court directed the respondents to calculate the days worked, with continuity of service, following Workmen of American Express International Banking Corporation v. Management, (1985) 08 SC CK 0029. The State’s affidavit on that basis showed 16 years of 240-day service for the first petitioner and 12 years for the second. The State nonetheless argued that the American Express rule applies only under the Industrial Disputes Act and not to daily wagers under the GR, relying on the Division Bench decision in Ranjit Natvarlal Chauhan, (2011) 02 GUJ CK 0063, and that Clause 1 of the GR requires 240 days in the first year before any benefit arises.
The Key Question Before the Court
While counting 240 days under the 1988 GR, must Sundays and public holidays be included for daily wagers, as held in American Express, even in the first year of work?
‘Bread and butter’ statutes need no semantic luxuries
The Court first held that the State’s objection came too late, since the law on the GR had been settled by the Supreme Court in State of Gujarat v. PWD Employees Union, (2013) 07 SC CK 0083 (PWD-I) and State of Gujarat v. PWD and Forest Employees Union, (2019) 02 SC CK 0063 (PWD-II). PWD-I held daily wagers with more than 240 days in the first year eligible for paid Sundays, medical allowance and national holidays, and PWD-II clarified that 240 days are required in each year counted. But neither laid down how the 240 days are to be calculated. On reading paragraphs 4 to 6 of American Express, the Court found the Supreme Court was concerned with computing days “actually worked” under Section 25-B, using the word “workman” without qualification — not with whether the worker was temporary. Quoting Surendra Kumar Verma v. Central Government Industrial Tribunal, (1980) 09 SC CK 0036, it said: “Semantic luxuries are misplaced in the interpretation of ‘bread and butter’ statutes”.
On precedent, the Court noted that an earlier Division Bench in Chhaganbhai Ranchhodbhai Rathod (LPA 1495/1997) had applied American Express to a daily wager, and that Ranjit Natvarlal Chauhan did not consider it; a co-equal bench cannot silently depart from an earlier one, so the earlier decision prevails. It also relied on Executive Engineer v. Dhirabhai Bhurabhai Pagi (LPA 159/2023), which followed Chhaganbhai and holds that Sundays and official holidays count. Following Executive Engineer (O&M) v. Hareshbhai Bhurabhai Vala and Kalsumben Jina Shah, it held that piece-rate remuneration is “wages”, so periods of piece-rate work also count.
What the Court Actually Held
- The GR of 17 October 1988 requires 240 days of work, but the method of counting is governed by American Express: Sundays and paid public holidays are included, even in the first year.
- Ranjit Natvarlal Chauhan was distinguished; the earlier Division Bench view in Chhaganbhai Ranchhodbhai Rathod and the later decision in Dhirabhai Bhurabhai Pagi prevail.
- Periods of work on piece-rate basis, as per the attendance produced by the respondents, also count towards entitlement.
- The petition was allowed: the respondents must grant the GR benefits, including the 7th Pay Commission benefit from 1 January 2016, and complete calculation and disbursement of arrears within 60 days of the decision being uploaded.
Why This Judgment Matters
- Thousands of daily wagers in Gujarat’s Forest, PWD and other departments claim under the 1988 GR; the counting method decides whether they qualify at all.
- It resolves an apparent conflict between Division Bench decisions in favour of including Sundays and holidays.
- Recognising piece-rate work as service prevents departments from defeating claims by changing the mode of payment.
What Should Advocates Take Away From the Judgment?
For Daily Wage Workers
- Sundays and paid holidays should be added to days actually worked while counting 240 days under the 1988 GR.
- Piece-rate work periods recorded in attendance also count.
- Ask for attendance records; the State’s own calculation decided this case.
For Counsel
- Cite American Express, Chhaganbhai Ranchhodbhai Rathod and Dhirabhai Bhurabhai Pagi against reliance on Ranjit Natvarlal Chauhan.
- Seek a court-directed calculation of days with continuity of service, as was done here in June 2025.
- Claim consequential pay-revision benefits (7th Pay from 1 January 2016) along with arrears.
Key Takeaways
- Under the 1988 GR, the 240-day count includes Sundays and paid public holidays.
- The rule applies even to the first year of service.
- Piece-rate service counts as service for GR benefits.
- Benefits and arrears must be paid within 60 days of upload of the decision.
Frequently Asked Questions
Are Sundays counted in 240 days for daily wagers in Gujarat?
Yes. The Gujarat High Court held that, for benefits under the GR of 17 October 1988, Sundays and paid public holidays are included while counting 240 days, following American Express, even in the first year.
Does piece-rate work count as service?
Yes. Relying on earlier High Court decisions, the Court held that piece-rate remuneration is wages, so piece-rate periods recorded in attendance count.
What relief did the petitioners get?
Benefits under the 1988 GR read with the 2014 GR, including the 7th Pay Commission benefit from 1 January 2016, with arrears to be calculated and paid within 60 days.
Conclusion
The ruling settles, at least at the single-judge level, a recurring question that has kept many long-serving daily wagers out of the 1988 GR: how to count 240 days. By applying American Express and the earlier Division Bench view, the Court sided with the beneficial reading.
Practical takeaway: Daily wagers whose GR claims were rejected for falling short of 240 days should check whether Sundays, paid holidays and piece-rate periods were excluded — if so, the rejection may be open to challenge.
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