Sub-second Show Cause Notice

The Honorable Supreme Court in Ramzan Khan's case held that the delinquent employee should be heard regarding the inquiry report and findings on the basis of which the disciplinary authority proposes to impose a penalty on him. No action that adversely affects an employee should be taken behind his back according to the principles of natural justice. Therefore, it became incumbent on the employers to issue a second show cause notice to the delinquent employee before imposing any penalty based on the inquiry findings. Even though this judgment was delivered in connection with Article 311, which is applicable to civil services, the industry, both in the public and private sectors, has also followed this condition. However, the standing orders or rules of the private industry do not contain such a stipulation requiring the service of a second show cause notice on the employee. Therefore, the courts have made this requirement less rigid by holding in some cases that failure to issue a second show cause notice will not vitiate the inquiry unless the delinquent employee shows that such omission has caused prejudice to his defense.

However, by way of abundant caution, it is advisable to issue a show cause notice as it may become a contentious issue subsequently before the courts where the employer is called upon to defend his failure or omission once the employee discharges his burden of proving how it caused prejudice to his defense.

B. Saikumar

HR & Labour Law Consultant

Chipinbiz Consultancy Pvt. Ltd.

Mumbai.

From India, Mumbai

Dear All, Please give me some information to make a checklist format about the daily or monthly EHS checking list. Thank you. Best Regards Shaon HR Executive
From Bangladesh, Chittagong

Dear Colleagues/friends,

My company is a principal employer to a few vendors; however, we also sign agreements with various clients to do business with them. Ours is a car rental company.

We have entered into an agreement with X Hotel to provide 30 drivers and cars. The cars and drivers are parked at the hotel to provide the necessary service agreed upon with the client. However, at no point is it agreed that the client will pay the salary or monitor the attendance of the drivers. We have our own staff on the hotel premises who manage our cars and drivers. Given this situation, is it necessary for the hotel to provide us with Form V to obtain a license to run the business?

From India, Thana

Dear Prabhu,
Good question!
Once the drivers are covered under your firm, there is no need for Form V under CLRA. If you proceed further and obtain a license under the CLRA act, then the Motor Vehicle Act comes into the picture. Keep them on your rolls and ensure all statutory documents are followed. This is one critical issue when we outsource our commercial transportation.
Ramana, Coke.

From India

Dear Prince,

I concur with Mr. Ramana Murthy. In this case, your establishment and the hotel are two different establishments, and it is not the business of the hotel to carry on transport service. Hence, the hotel is not the principal employer, and you are not the contractor. Therefore, there is no need for you to take the license, nor for the hotel to register under CLRA.

B. Saikumar
HR & Labour Law Advisor
Mumbai
09930532927

From India, Mumbai

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