A contract worker "X" worked with "Y" organization for approximately 730 working days in the last three years. However, X left thereafter and started working with another organization, "Z", without informing "Y" organization. It is noted that both organizations are under the same parent entity.
Four months later, X filed a complaint at the office of the Assistant Labour Commissioner (ALC) through a union, citing Section 10 of the Industrial Disputes Act, 1947. Mr. X is demanding retrenchment benefits or regularization of duty.
It should be noted that Mr. X also left his job at "Z" organization without informing them. The question arises whether he is entitled to receive retrenchment benefits from "Y" organization. If yes, what benefits will X be entitled to receive? Who will oversee the regularization of his employment duties?
Regards
From India, Delhi
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3Four months later, X filed a complaint at the office of the Assistant Labour Commissioner (ALC) through a union, citing Section 10 of the Industrial Disputes Act, 1947. Mr. X is demanding retrenchment benefits or regularization of duty.
It should be noted that Mr. X also left his job at "Z" organization without informing them. The question arises whether he is entitled to receive retrenchment benefits from "Y" organization. If yes, what benefits will X be entitled to receive? Who will oversee the regularization of his employment duties?
Regards
From India, Delhi
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Dear Mahesh,
After X abandoned services of Y, was F&F settlement done by Y? Was any communication mentioning that since you have voluntarily quit the job, please accept F&F by ...(date) etc. issued by Y?
If not, X can raise a dispute about illegal termination. If Y refuses to take him on the job which legally has not been discontinued.
His demand for regularization may be considered by ACL if the job, which was ordinarily carried out by him lastly, still exists in the same quantum and nature and the duty position has been replaced by another workman. Otherwise, ACL may recommend retrenchment benefits.
The workman has to be paid, at the time of retrenchment, compensation equivalent to fifteen days' average pay for every completed year of continuous service and one month notice pay in addition to all his legal dues, whatsoever.
However, Y can twist/give another dimension to the dispute by producing evidence that X was gainfully employed with Z.
Regards,
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65
From India, Mumbai
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After X abandoned services of Y, was F&F settlement done by Y? Was any communication mentioning that since you have voluntarily quit the job, please accept F&F by ...(date) etc. issued by Y?
If not, X can raise a dispute about illegal termination. If Y refuses to take him on the job which legally has not been discontinued.
His demand for regularization may be considered by ACL if the job, which was ordinarily carried out by him lastly, still exists in the same quantum and nature and the duty position has been replaced by another workman. Otherwise, ACL may recommend retrenchment benefits.
The workman has to be paid, at the time of retrenchment, compensation equivalent to fifteen days' average pay for every completed year of continuous service and one month notice pay in addition to all his legal dues, whatsoever.
However, Y can twist/give another dimension to the dispute by producing evidence that X was gainfully employed with Z.
Regards,
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65
From India, Mumbai
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Hello Mahesh Prasad Gupta,
You have provided the facts file of the situation. However, the options open to you will depend on the documents file - as Shailesh Parikh mentioned, please give details from this angle as well. Please clarify his queries, and I am sure you will receive the most realistic and appropriate suggestions from the members.
Regards,
TS
From India, Hyderabad
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You have provided the facts file of the situation. However, the options open to you will depend on the documents file - as Shailesh Parikh mentioned, please give details from this angle as well. Please clarify his queries, and I am sure you will receive the most realistic and appropriate suggestions from the members.
Regards,
TS
From India, Hyderabad
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If a worker left the job voluntarily, he is not entitled to retrenchment compensation. You need to see what records are available with the contractor to support voluntary separation.
Both contractors being under the same principal employer, it would be easy to show that he was working for the second contractor and therefore the demand for compensation is not entertained.
From India, Mumbai
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Both contractors being under the same principal employer, it would be easy to show that he was working for the second contractor and therefore the demand for compensation is not entertained.
From India, Mumbai
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Dear Mr. Gupta,
If your facts are correct, the employee can still raise a dispute of oral termination. However, you are not liable to reinstate him as he is not your employee. If the contractor has terminated him by way of retrenchment, the contractor is liable to pay the legal dues. If the contractor fails to do so, the principal employer is required to pay first and then recover from the contractor, as per the latest judgment of the Madras High Court.
From India, Pune
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If your facts are correct, the employee can still raise a dispute of oral termination. However, you are not liable to reinstate him as he is not your employee. If the contractor has terminated him by way of retrenchment, the contractor is liable to pay the legal dues. If the contractor fails to do so, the principal employer is required to pay first and then recover from the contractor, as per the latest judgment of the Madras High Court.
From India, Pune
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Now the labor court registered similar three cases and called us on 25th November 2014. I have hired a lawyer on behalf of my organization to handle the case. Please advise further under the above factual situation of the case.
Now the workers have presently left; they have not worked under any of the above contractors. Out of them, one worker submitted a withdrawal letter to ALC regarding submitting his complaint.
Please advise...
From India, Delhi
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Now the workers have presently left; they have not worked under any of the above contractors. Out of them, one worker submitted a withdrawal letter to ALC regarding submitting his complaint.
Please advise...
From India, Delhi
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Let's see the case in the decision stage.
Expert/Senior Members, if you have any judgments from the High Court related to the case, for example, "Retrenchment compensation will be eligible if any casual worker leaves the job without any information and resumes another job the very next day."
Seniors, your help under the above case is requested.
Regards,
Mahesh Prasad Gupta
From India, Delhi
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Expert/Senior Members, if you have any judgments from the High Court related to the case, for example, "Retrenchment compensation will be eligible if any casual worker leaves the job without any information and resumes another job the very next day."
Seniors, your help under the above case is requested.
Regards,
Mahesh Prasad Gupta
From India, Delhi
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It is better to hire a good lawyer to take care of this case. Members of this forum cannot help you because the circumstances of the case, along with all its details, would be critical to providing correct advice. We here on the forum would not have access to those details.
From India, Mumbai
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From India, Mumbai
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Dear Sir,
I already have a lawyer handling the case. Now, before the court makes a decision, the honorable court has called both parties to discuss a possible compromise. The complainant is now willing to withdraw the case with a compensation of Rs. 30,000. They made this offer before the honorable court.
I seek your advice on whether to proceed with the compromise or pursue a decision.
Regards, Mahesh Prasad Gupta
From India, Delhi
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I already have a lawyer handling the case. Now, before the court makes a decision, the honorable court has called both parties to discuss a possible compromise. The complainant is now willing to withdraw the case with a compensation of Rs. 30,000. They made this offer before the honorable court.
I seek your advice on whether to proceed with the compromise or pursue a decision.
Regards, Mahesh Prasad Gupta
From India, Delhi
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Again, how will members on the forum tell you whether you should compromise or not?
We do not know the circumstances, what the other lawyer has presented, or what the details of the case are.
Your lawyer can give you the answer based on the possibility of the judgment going in your favor or against you.
From India, Mumbai
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We do not know the circumstances, what the other lawyer has presented, or what the details of the case are.
Your lawyer can give you the answer based on the possibility of the judgment going in your favor or against you.
From India, Mumbai
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Management ready to compromise with complainer but at the last moment of compromise complainer denied to settle so the case under decision after the argument from both side.
From India, Delhi
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From India, Delhi
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Finally, the complainant did not agree to compromise, so the Honorable Court awarded the case as follows: "The complainant is not eligible to receive any compensation benefits; therefore, there is no need to issue any instructions to the employer."
1. The complainant (1st party) did not provide certification of retrenchment effective from 01.09.12; hence, they are not eligible to receive any compensation under the Industrial Disputes Act, 1947, Section 25F.
2. Since the termination was deemed illegal and not certified, the complainant is not entitled to any benefits.
3. There is no requirement to issue any instructions to the employer (2nd Party).
Regards,
Mahesh Prasad Gupta
From India, Delhi
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1. The complainant (1st party) did not provide certification of retrenchment effective from 01.09.12; hence, they are not eligible to receive any compensation under the Industrial Disputes Act, 1947, Section 25F.
2. Since the termination was deemed illegal and not certified, the complainant is not entitled to any benefits.
3. There is no requirement to issue any instructions to the employer (2nd Party).
Regards,
Mahesh Prasad Gupta
From India, Delhi
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Honorable court awarded the case "complainer not eligible to get any compensation benefit, so no need to pass any instruction to employer" because:
1. Not certified retrenchment by the complainer (1st party) w.e.f. 01.09.12; hence, not eligible to get any compensation under the ID Act 1947, Sec 25 F.
2. Illegal termination is not certified, so the complainer is not eligible to get any benefit.
3. No need to pass any instruction to the employer (2nd Party).
Regards, Mahesh Prasad Gupta
From India, Delhi
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1. Not certified retrenchment by the complainer (1st party) w.e.f. 01.09.12; hence, not eligible to get any compensation under the ID Act 1947, Sec 25 F.
2. Illegal termination is not certified, so the complainer is not eligible to get any benefit.
3. No need to pass any instruction to the employer (2nd Party).
Regards, Mahesh Prasad Gupta
From India, Delhi
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Mahesh,
Thank you for updating us. Very few queries on the forum have their logical and final conclusions listed. But one thing worries me - illegal termination not certified. Does that actually mean it's not illegal termination? Or that complainant didn't get it certified by the labor commissioner? Is it a technical reprieve or on merit?
From India, Mumbai
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Thank you for updating us. Very few queries on the forum have their logical and final conclusions listed. But one thing worries me - illegal termination not certified. Does that actually mean it's not illegal termination? Or that complainant didn't get it certified by the labor commissioner? Is it a technical reprieve or on merit?
From India, Mumbai
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Sir complainer not able to certified before the Honorable regarding his termination is legal because employer proof it the complainer left the job for his benefits. Regards
From India, Delhi
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From India, Delhi
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Sir complainer not able to certified before the Honorable court regarding his termination is legal eventhough employer proof it the complainer left the job for his benefits. Regards
From India, Delhi
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From India, Delhi
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Legal Clarification on Negative Covenants in Employment Agreements.pdf