Hi In our company operation has given to one organisation on contract basis.As a result of which some staff is surplus(causal,Trainees,Regular,Contraual).One day management given a notice that their services are not requred and ask them to clear their account settlement.As a result of which almost all employee settle their final account after submission no dues certificate.Now all employee goes to labor office and submit a petition for their reinstatement.Now labor office ask us to attend a meeting.My quistion is as they have clear their settlement then their petition is justified or not.Kindly advise Mantu71
From India, Calcutta
21From India, Calcutta
Dear Going to the Lab Commr is their right .You will have to explain before the authority and satisfy that the retrenchment is valid & proper as per the provisions of the ID Act.Get prepared for that.Hire a local specialist/consultant if you feel the need. With Regards V.Sounder Rajan E-mail : 
From India, Bangalore
From India, Bangalore
As Rajanassociates stated going to Labour Office or Labour Court is their right. The employees may even defend that they were forced to sign some papers but were totally ignorant of the consequences. The Labour Deptt, which is suppoosed to be inclined towards labour side, may even ask the employer for reinstatement of the workers retrenched. However, the employer has every right to retrench the workers who are found surplus but after following the relevant provisions of Industrial Disputes Act. If your company has an employment strength of 100 or more, you should have applied to the government for permission to retrench the workers. Similarly, you should have given notice to the workers three months before such retrenchment. Retrenchment of employees by employer who employs 100 or more workers (or where chapter VB of the ID Act applies) without approval of the government will be treated as invalid. In case you employ less than 100 but not less than 50 employees, you need to give at least one month notice and intimate the government of your intension to retrench the listed employees. Notice can be waived if you compensate by way of salary for the month(s) The above being the grounds, your act of retrenchment shall not be justified just by asking the employees to sign an agreement for mass retrenchment or settlement. In labour issues, mass retrenchment will always be viewed very seriously. Therefore, while attending the hearing you have to show how the workers became surplus?, why should'nt the workers be given alternative employment in your other comapnies within a radius of 5 sq. kms? and why the notice in form P-A seeking permission from the Govt was not issued? Even in the case of concerns employing less than 50 employees, although prior intimation to the govt. is not required, you should have informed the employees of the retrenchment by way of notice in form form P. Please study the matter properly before attending the hearing. I hope some other members may also have inputs to share with you. Let's take that also before we come to a conclussion. Regards, Madhu.T.K
From India, Kannur
From India, Kannur
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