I just came across a scenario wherein an employee is recruited for a particular job position. After 2 years, management decided that no more that job poistion is required, hence they abolished the same and asked that person to move to other department. But that concerned person is refused to accept the new department.
Are there any legal issues involved in this case? Whether the concerned person can approach labour court in this case
From India, Coimbatore
Are there any legal issues involved in this case? Whether the concerned person can approach labour court in this case
From India, Coimbatore
Dear Rajesh S,
What clause about transfer has been mentioned in the appointment letter issued to the employee? Many companies include the following clause:
Your services are liable to be transferred from one department to another, from one place to another place, and also liable to be transferred to any place, associate company’s subsidiary organisations or any company wherever the interest of the principal in India, and also your services are liable for deputation or loan to other organisation in which the management may have an interest.
In the above paragraph, the verbiage about the transfer clause is clear. If this type of clause is included in the letter of appointment, then the company's administration can issue the transfer order (TO). The conditions of TO are binding on the employee, and if he/she does oblige to the conditions, then the administration can initiate disciplinary action against the employee.
However, the above-mentioned approach is of negative discipline. Counsel the employee and explain to the employee that the administration does not wish to have any conflict with the employee. The transfer is in the interest of both the employee and the company. Therefore, he/she should not create conditions wherein his/her exit from the company happens on a bitter note.
Thanks,
Dinesh Divekar
From India, Bangalore
7879What clause about transfer has been mentioned in the appointment letter issued to the employee? Many companies include the following clause:
Your services are liable to be transferred from one department to another, from one place to another place, and also liable to be transferred to any place, associate company’s subsidiary organisations or any company wherever the interest of the principal in India, and also your services are liable for deputation or loan to other organisation in which the management may have an interest.
In the above paragraph, the verbiage about the transfer clause is clear. If this type of clause is included in the letter of appointment, then the company's administration can issue the transfer order (TO). The conditions of TO are binding on the employee, and if he/she does oblige to the conditions, then the administration can initiate disciplinary action against the employee.
However, the above-mentioned approach is of negative discipline. Counsel the employee and explain to the employee that the administration does not wish to have any conflict with the employee. The transfer is in the interest of both the employee and the company. Therefore, he/she should not create conditions wherein his/her exit from the company happens on a bitter note.
Thanks,
Dinesh Divekar
From India, Bangalore
Whatever Dinesh has stated are perfect. To add to what he has said, I would say that as far as an employer is concerned, whenever a position is abolished, there are two options; one to retrench the employee or to offer him another position which requires the same skill and gives salary and perks not less than what he was getting from the previous position. Therefore, even if he prefers a legal battle, he will not be able to win it. He cannot any way go directly to Labour Court, but can reach out the Labour Officer who is a conciliation officer. In the conciliation you can very well say that he has not been refused employment, but has offered employment in other department, and that would satisfy the relevant provisions of the Industrial Disputes Act.
From India, Kannur
From India, Kannur
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