I had sent a legal notice through a lawyer to the company regarding illegal termination. I demanded reinstatement of employment and recovery of unpaid salary. However, the company did not reply within the timeframe mentioned in the legal notice, so I filed a complaint with the labor department. The management was not present at the first hearing. The labor department then sent another notice, stating that if the management did not appear on May 11, 2018, the labor department would take unilateral action against them.
Suddenly, I received a reply to the legal notice after 50 days, in which the management informed me that they had appointed a sole arbitrator to resolve the issue. The date has not been finalized yet.
What should I do now?
From India, Delhi
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1Suddenly, I received a reply to the legal notice after 50 days, in which the management informed me that they had appointed a sole arbitrator to resolve the issue. The date has not been finalized yet.
What should I do now?
From India, Delhi
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Dear Rupal,
Are you sure that you were formally terminated, i.e., by means of written orders by your company? If "yes," you can simply write back to the company that since the dispute raised by you is being handled by the Labor officer/Assistant Commissioner of Labor, a competent authority under the Industrial Disputes Act, 1947, you are not interested in any alternative redressal through a third party. If you are not skeptical about the current actions of the company or need an immediate resolution of the dispute at any cost, irrespective of its nature, you can cooperate with the management. It is up to you to decide.
From India, Salem
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Are you sure that you were formally terminated, i.e., by means of written orders by your company? If "yes," you can simply write back to the company that since the dispute raised by you is being handled by the Labor officer/Assistant Commissioner of Labor, a competent authority under the Industrial Disputes Act, 1947, you are not interested in any alternative redressal through a third party. If you are not skeptical about the current actions of the company or need an immediate resolution of the dispute at any cost, irrespective of its nature, you can cooperate with the management. It is up to you to decide.
From India, Salem
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Dear Rupal,
Please provide your designation, nature of duties performed, last drawn gross salary, contents of your termination letter, and whether your appointment letter includes a clause for arbitration. Also, share details about your employer.
Thank you.
From India, New Delhi
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Please provide your designation, nature of duties performed, last drawn gross salary, contents of your termination letter, and whether your appointment letter includes a clause for arbitration. Also, share details about your employer.
Thank you.
From India, New Delhi
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Thank you for your reply. My appointment letter includes a clause on arbitration. Can I communicate to management via email that I am not interested in any alternative redressal through a third party, i.e., a sole arbitrator, as the matter is pending with the Labour Department?
What actions can the Labour Department take if the management does not appear at the hearing after receiving multiple notices?
From India, Delhi
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What actions can the Labour Department take if the management does not appear at the hearing after receiving multiple notices?
From India, Delhi
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Dear Rupal,
I believe that your correct response to the pertinent question raised by our knowledgeable friend Srinath regarding the classification of your employment status, whether as a workman, supervisor, or manager, will dictate the subsequent actions in light of the recent decisions made by your management, especially considering the presence of an arbitration clause in the employment contract. It is a standard practice of the Labor Department to notify the management upon receiving any complaints of unemployment, initiating a preliminary inquiry. Fortunately, should the management opt for a peaceful resolution of the matter, the Labor Officer may facilitate the parties in resolving the issue, even if the complainant is not classified as a workman. Conversely, if the management responds negatively, presenting evidence regarding the complainant's employment status and questioning the Officer's jurisdiction on that basis, they would likely suggest that you seek recourse from the appropriate authority and close the case.
Please let me know if you need further clarification or assistance.
Best regards,
[Your Name]
From India, Salem
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I believe that your correct response to the pertinent question raised by our knowledgeable friend Srinath regarding the classification of your employment status, whether as a workman, supervisor, or manager, will dictate the subsequent actions in light of the recent decisions made by your management, especially considering the presence of an arbitration clause in the employment contract. It is a standard practice of the Labor Department to notify the management upon receiving any complaints of unemployment, initiating a preliminary inquiry. Fortunately, should the management opt for a peaceful resolution of the matter, the Labor Officer may facilitate the parties in resolving the issue, even if the complainant is not classified as a workman. Conversely, if the management responds negatively, presenting evidence regarding the complainant's employment status and questioning the Officer's jurisdiction on that basis, they would likely suggest that you seek recourse from the appropriate authority and close the case.
Please let me know if you need further clarification or assistance.
Best regards,
[Your Name]
From India, Salem
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Dear Madam,
I think we are not hitting the bull's eye in our replies due to the absence of relevant information such as your designation, responsibilities, and the exact clause relating to the so-called arbitration in the appointment letter. The Industrial Disputes Act provides for an arbitration process, and the appointment of an arbitrator requires joint consent; no single party can unilaterally appoint an arbitrator in labor disputes. However, all of this can be addressed after receiving the above and other related information.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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I think we are not hitting the bull's eye in our replies due to the absence of relevant information such as your designation, responsibilities, and the exact clause relating to the so-called arbitration in the appointment letter. The Industrial Disputes Act provides for an arbitration process, and the appointment of an arbitrator requires joint consent; no single party can unilaterally appoint an arbitrator in labor disputes. However, all of this can be addressed after receiving the above and other related information.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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Thank you all for the response. I worked as a process associate in a BPO. The arbitration clause states, "Any and all disputes arising in connection with the appointment letter and service shall be referred to arbitration, which shall be conducted following the Arbitration and Conciliation Act, 1996, by a sole arbitrator appointed by the General Council of the company. The venue of the arbitration shall be Delhi, and the language shall be English. You agree to submit yourself to the exclusive territorial jurisdiction of the courts in Delhi.
Can I reply to management via email, stating that I am not interested in any alternative redressal through a third party, i.e., the sole arbitrator, as the matter is pending with the Labour Department?
What action can the Labour Department take if the management does not appear at the hearing after receiving multiple notices?
From India, Delhi
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Can I reply to management via email, stating that I am not interested in any alternative redressal through a third party, i.e., the sole arbitrator, as the matter is pending with the Labour Department?
What action can the Labour Department take if the management does not appear at the hearing after receiving multiple notices?
From India, Delhi
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Dear Rupal,
Well, you were a "Business Associate" in a B.P.O. Still, we are not able to understand from that nomenclature whether the incumbent of the post would be a "workman" as defined u/s 2(s) of the Industrial Disputes Act, 1947 or not. Simply speaking, a BPO organization performs any process or part of any process of another organization through its own employees. Therefore, right from the General Manager down to the entry-level employee performing the outsourced process activities in such a BPO would be its "business associate" only; hence decide for yourself where and how you fit in.
Interestingly, nowadays, in the private sector, particularly in the IT and ITES companies, the designations are rendered more attractive and fashionable by the usage of catchy phrases like business associate, sales executive, Team lead, etc., though the duties they discharge are either basically technical or clerical or simply with some incidental supervisory functions. It is not the designation but the predominant nature of the work performed by the employee that is the decisive factor in deciding whether he is a workman or not to seek redress under the ID Act, 1947.
Coming to the arbitration clause in your appointment orders, you've not mentioned whether such a clause is included in the appointment orders issued to all employees in the B.P.O. The objective of the Arbitration & Conciliation Act, 1996, as I understand, is to comprehensively cover international commercial arbitration and conciliation as well as domestic arbitration and conciliation.
From India, Salem
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Well, you were a "Business Associate" in a B.P.O. Still, we are not able to understand from that nomenclature whether the incumbent of the post would be a "workman" as defined u/s 2(s) of the Industrial Disputes Act, 1947 or not. Simply speaking, a BPO organization performs any process or part of any process of another organization through its own employees. Therefore, right from the General Manager down to the entry-level employee performing the outsourced process activities in such a BPO would be its "business associate" only; hence decide for yourself where and how you fit in.
Interestingly, nowadays, in the private sector, particularly in the IT and ITES companies, the designations are rendered more attractive and fashionable by the usage of catchy phrases like business associate, sales executive, Team lead, etc., though the duties they discharge are either basically technical or clerical or simply with some incidental supervisory functions. It is not the designation but the predominant nature of the work performed by the employee that is the decisive factor in deciding whether he is a workman or not to seek redress under the ID Act, 1947.
Coming to the arbitration clause in your appointment orders, you've not mentioned whether such a clause is included in the appointment orders issued to all employees in the B.P.O. The objective of the Arbitration & Conciliation Act, 1996, as I understand, is to comprehensively cover international commercial arbitration and conciliation as well as domestic arbitration and conciliation.
From India, Salem
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I have sent an email to the HR manager yesterday stating that this matter is pending in the Labour department, so I am not interested in resolving the dispute through a sole arbitrator. However, there has been no response from the management yet.
Is a lawyer allowed in the Labour department during the hearing?
From India, Delhi
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Is a lawyer allowed in the Labour department during the hearing?
From India, Delhi
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Labour department.pdf
IR Labour Management.ppt