The Orissa High Court has issued a significant directive, ordering the State Bank of India (SBI) to pay a total of ₹40 lakh to two former daily-wage sweepers, Mayadhar Nayak and Baina Nayak. The court mandated a payment of ₹20 lakh to each individual, acknowledging their nearly three decades of service and the challenging prospects for new employment in the current "AI era."
A Decades-Long Legal Battle
Mayadhar Nayak and Baina Nayak began their service as daily-wage sweepers at SBI's Government Treasury Branch in Bhubaneswar in 1994 and 1995, respectively. Their legal struggle commenced in 1999 when they first approached the High Court, seeking permanent employee status and benefits comparable to temporary staff. Over the years, various court orders were issued, including directives in 2007 for SBI to consider them for sweeper posts if available, and in 2008, to allow them to continue working and be paid under the Minimum Wages Act.
Despite these interventions, the workers were eventually removed from service on July 19, 2025, under the Industrial Disputes Act. SBI provided each worker with ₹3,30,934 as retrenchment compensation and salary in lieu of notice. A single judge initially dismissed their subsequent petitions, leading to an appeal that brought the case before a division bench of Justices Krishna S Dixit and Chittaranjan Dash.
Court Rejects SBI's Offer, Cites "Sweat & Blood"
The division bench firmly rejected SBI's initial offer of ₹5 lakh each as compensation, deeming it "too frugal." The court emphasized the profound dedication of the workers, stating they had given their "sweat & blood" to the bank. A crucial aspect of the court's reasoning was the bleak employment outlook for the aging workers.
"The Appellants, who have given their sweat & blood, cannot seek gainful employment elsewhere at their present declining age," the court observed. "In the AI (artificial intelligence) era, we are not sure that they would be able to eke out their livelihood, having spent prime of their life blood in the menial job all these years."
This recognition of the difficulty for manual laborers to find new work in an increasingly automated landscape played a significant role in the quantum of compensation awarded.
Why Permanent Status Was Not Granted
While acknowledging the sweepers' long service, the High Court clarified that it could not compel SBI to grant them permanent employee status. The court noted that previous orders only instructed the bank to consider them for vacancies or allow them to continue work, not to confer a legal right to permanent jobs. Furthermore, the court considered the evolving banking sector, where SBI had begun outsourcing such work, and the substantial financial burden that regularizing their positions after so many years would impose on the bank.
The Final Order: ₹40 Lakh Compensation
Ultimately, the judges concluded that a lump sum compensation was the most equitable solution. They set aside the earlier order and directed SBI to pay ₹20 lakh to each worker, totaling ₹40 lakh, within eight weeks. The court also stipulated a penalty for delayed payment: 1% interest per month for the first month, increasing to 2% per month thereafter. It was also noted that any interest incurred due to delays caused by bank officials could potentially be recovered from those officials.
The bench concluded by emphasizing that this ruling was based on the specific facts and circumstances of this particular case and should not be interpreted as a precedent for all similar situations.