We are entering 18(1) settlement with our workmen once in 3 years. Till now the % of distribution of increase is 50% in the 1st year, 25% in the 2nd & 3rd years. Our finance head advised to change the % into 40 : 30: 30 as the cash outflow is high in the 1st 2 years. Is he right? Can we break the existing set up? Can i get any copy of settlement made for 3 or 5 years with % distribution?
From India
From India
Your Fiance Head apprehension is correct. For amending the existing agreement , you have to discuss with the workmen and convince them. The amended clause you can (referring to the original agreement ) enter into another settlement under Section 18(1) if the Industrial Disputes Act. I suggest, it is always better to convert the same settlement under 18(1), into a Settlement under section 12(3) of the ID Act, on mutual agreed clause, to avoid any future claim / interpretation.
From India, Madras
294From India, Madras
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SALARY CERTIFICATE- MINISTRY OF FINANCE's Notification on formats.docx
RS - Amendment in Inter State Migrant Workmen Act 1979 - (1.12.2010).pdf