Question:

Which of the following statement is true for loss of confidence by management in the workman?

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Loss of confidence is a recognized ground in employment law for discharge or denial of reinstatement.
Updated On: Oct 31, 2025
  • Even when dismissal or discharge is held to be wrongful, the court may not order reinstatement if the employer is able to establish that the workman held a position of trust and there was loss of confidence.
  • Loss of confidence may also be a ground for discharge simpliciter of the workman
  • Both (a) and (b)
  • Neither (a) nor (b)
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The Correct Option is C

Solution and Explanation

Step 1: Understanding “loss of confidence.”
In service law, particularly in cases involving employees in positions of trust, loss of confidence is a valid ground for termination.
Step 2: Case law.
Courts have held that even if dismissal is wrongful, reinstatement may be denied if loss of confidence is proved. Similarly, discharge simpliciter can also be justified on this ground.
Step 3: Conclusion.
Thus, both statements (a) and (b) are correct, making option (c) the right answer.
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