Dear All, We are running a startup in Mysuru Karnataka. I need to add a jurisdiction clause in my hr handbook for legal issues. Can some help me to frame this paragraph? Thanks
From India, Bengaluru
1From India, Bengaluru
Dear member,
A jurisdiction clause is a part of the legal agreement or contract and it should be included where the parties want all disputes arising under their agreement to be determined by a particular court. In your case, it is Mysuru.
However, it is appropriate to insert the jurisdiction clause in the Appointment Letter. Under the provisions of the Indian Contract Act, 1872, an Appointment Letter is a valid contract between an employer and employee.
Companies insert this clause in the standing orders that are approved by the Department of Labour. Since these are approved by the government authorities, they have legal validity. In contrast, what legal validity "Employee Handbook" has? Nothing.
The purpose of the "Employee Handbook" is to give work instructions or to codify a general code of conduct. The scope of appointment letter or standing orders is broad and minute details cannot be mentioned. To fill the gap, the "Employee Handbook" is created.
In view of this, I recommend you revising the place of the insertion of this clause. The draft of the clause could be as below:
Any dispute arising out of or in connection with this Appointment Letter, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by the courts within Municipal limits of Mysuru city only.
Thanks,
Dinesh Divekar
From India, Bangalore
A jurisdiction clause is a part of the legal agreement or contract and it should be included where the parties want all disputes arising under their agreement to be determined by a particular court. In your case, it is Mysuru.
However, it is appropriate to insert the jurisdiction clause in the Appointment Letter. Under the provisions of the Indian Contract Act, 1872, an Appointment Letter is a valid contract between an employer and employee.
Companies insert this clause in the standing orders that are approved by the Department of Labour. Since these are approved by the government authorities, they have legal validity. In contrast, what legal validity "Employee Handbook" has? Nothing.
The purpose of the "Employee Handbook" is to give work instructions or to codify a general code of conduct. The scope of appointment letter or standing orders is broad and minute details cannot be mentioned. To fill the gap, the "Employee Handbook" is created.
In view of this, I recommend you revising the place of the insertion of this clause. The draft of the clause could be as below:
Any dispute arising out of or in connection with this Appointment Letter, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by the courts within Municipal limits of Mysuru city only.
Thanks,
Dinesh Divekar
From India, Bangalore
I am sorry to differ from the view of our learned friend Mr.Dinesh.
In employment matters/disputes, only the last place of work determines jurisdiction of the authorities. For example, if the Company head-quarted at Mysore selects a candidate for appointment as its workman and posts him at its branch at Mangalore and later arises some employment dispute between them, then the workman can approach the authority at Mangalore for redress and not go over to Mysore just because it is mentioned so in the HR Manual. Such a clause would be applicable for trade/commercial disputes only. Even this is as per the residential place of the applicant in case of pecuniary claims under the Consumer Protection Act.
Therefore, it is not necessary to include such a clause in the HR handbook.
From India, Salem
In employment matters/disputes, only the last place of work determines jurisdiction of the authorities. For example, if the Company head-quarted at Mysore selects a candidate for appointment as its workman and posts him at its branch at Mangalore and later arises some employment dispute between them, then the workman can approach the authority at Mangalore for redress and not go over to Mysore just because it is mentioned so in the HR Manual. Such a clause would be applicable for trade/commercial disputes only. Even this is as per the residential place of the applicant in case of pecuniary claims under the Consumer Protection Act.
Therefore, it is not necessary to include such a clause in the HR handbook.
From India, Salem
Dear Umakanthan Sir,
The focus of my post was more on where to include the clause on the jurisdiction of the disputes. The originator of the post has mentioned that he wishes to include it in the employee handbook. I suggested including it in the appointment letter.
Yes, the place of the settlement of the jurisdiction of the dispute will have to be the place of appointment. Naturally, it will vary according to the needs of the organisation.
Regards,
Dinesh Divekar
From India, Bangalore
The focus of my post was more on where to include the clause on the jurisdiction of the disputes. The originator of the post has mentioned that he wishes to include it in the employee handbook. I suggested including it in the appointment letter.
Yes, the place of the settlement of the jurisdiction of the dispute will have to be the place of appointment. Naturally, it will vary according to the needs of the organisation.
Regards,
Dinesh Divekar
From India, Bangalore
Employee Hand book is created and developed to describe some expectations of employees and to outline the policies, programs and benefits available to the eligible employees. Employee hand book will answer many questions about employment with the company
Managements of all companies believe that professional relationships are easier when all employees are aware of the culture and values of the organization. In that context,Employee handbook will serve as a guide which will help the readers to better understand the vision for the future of companies business and the challenges that are ahead.
In short, Employee Hand book is Company HR Policies/HR Manual at the micro level.
From India, Aizawl
Managements of all companies believe that professional relationships are easier when all employees are aware of the culture and values of the organization. In that context,Employee handbook will serve as a guide which will help the readers to better understand the vision for the future of companies business and the challenges that are ahead.
In short, Employee Hand book is Company HR Policies/HR Manual at the micro level.
From India, Aizawl
Dear colleagues,
The prevailing labour laws governing matters of Employment and its terms will take precedence over anything contrary contained in the manual/ handbook. In particular , matters of termination, no other court will have jurisdiction, other than authorities created under those laws ie the Industrial Disputes Act. Therefore , to suggest inclusion of jurisdiction clause, running contrary to this is displaying ignorance of the correct legal position.
I fully share views expressed by Mr. Umakanhan.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
The prevailing labour laws governing matters of Employment and its terms will take precedence over anything contrary contained in the manual/ handbook. In particular , matters of termination, no other court will have jurisdiction, other than authorities created under those laws ie the Industrial Disputes Act. Therefore , to suggest inclusion of jurisdiction clause, running contrary to this is displaying ignorance of the correct legal position.
I fully share views expressed by Mr. Umakanhan.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
The employment related disputes is not bind by putting the jurisdiction clause. Because all the acts have been enacted by the Centre and state govt frames rules to enforce and administrate the acts & laws.
In recent past one contractor from AP received a notice from the court of Odisha, to settle the claim of workers(wages & OT) working under him at Bhutan. In the instant case two countries and two states of India is involved. The contractor paid the claim of workers complying the order of Court at Odisha.
From India, Mumbai
In recent past one contractor from AP received a notice from the court of Odisha, to settle the claim of workers(wages & OT) working under him at Bhutan. In the instant case two countries and two states of India is involved. The contractor paid the claim of workers complying the order of Court at Odisha.
From India, Mumbai
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