Rahul (appellant) was working as a Clerk in a Nationalised Bank posted at MG Road Branch, Panipat. He joined the branch on 1st November, 2016 and was assigned the duties of cashier. As per appellant he attended the duty

CS Professional · Labour Laws and Practice · PYQS · June 2024
Rahul (appellant) was working as a Clerk in a Nationalised Bank posted at MG Road Branch, Panipat. He joined the branch on 1st November, 2016 and was assigned the duties of cashier. As per appellant he attended the duty on 10th and 11th November, 2018 and his attendance was marked on the muster roll for both days. But according to the Bank authorities the appellant absented from duties on both days without permission. The case of the Bank further was that the appellant on 10th November, 2018 entered the Bank with about 15 persons in the morning and went to the office of the Chief Manager and thereafter left the office. Again, on 11th November, 2018 he worked up to 2.30 pm and absented himself from duty thereafter. The bank deducted two days wages of appellant treating him absent from duty. As a reason of this, Appellant went on strike, later he provoked other bank employees as well and they all went on strike for first four hours on 13th November, 2018 without complying the notice period. Hence, the bank issued an administrative circular as per their Standing Orders, the employees cannot go on strike for first four hours, warning the employees that they would be committing a breach of their contract of service if they participate in the strike. By ignoring the order, they have participated in the strike from the beginning of the working hours on 13th November, 2018. The employees however, resumed work on that day after the strike hours and the bank did not prevent them from doing so. The bank had already made it clear in advance, that if they will go on strike for first four hours, they would not be entitled to the wages for the whole day and hence they need not report for work thereafter. On 16th November, 2018, the Bank issued a circular directing the managers to deduct the full day's wages of those employees who had participated in the strike. The employees requested to the Chief Manager not to make deduction from wages, but the bank deducted their wages, hence the employees referred the matter to the Labour Court. On the basis of above facts, answer the following questions: What are the consequences of illegal strike, explain it, whether the Banking Industry come under the category of Public Utility Services?

Answer & Explanation:

Consequences of Illegal Strike: In the case of Express Newspaper (P) Ltd. v. Michael Mark, (1962) II L.L.J. 220 (S.C.), the Supreme Court held that where the workmen who had participated in an illegal strike, did not join their duties which resulted in their dismissal under the Standing Orders, participation in strike means that they have abandoned their employment. However, the employer can take disciplinary action against the employees under the Standing Orders and dismiss them. Any workman who commences, continues or otherwise acts in furtherance of a strike which is illegal under the Industrial Disputes Act, 1947, shall be punishable with imprisonment for a term which may extend to one month, or with fine which may extend to fifty rupees or with both. [Section 26(1)]. In the case of Vijay Kumar Oil Mills v. Their Workmen, it was held that the act of a workman to participate in an illegal strike gives the employer certain rights against the workman, which are not the creation of the Statute but are based on policy, and the employer has every right to waive such rights. In a dispute before the Tribunal, waiver can be a valid defence by the workman. However, waiver by the employer cannot be a defence against prosecution under Section 26 and something which is illegal by Statute cannot be made legal by waiver (Punjab National Bank v. Their Workmen). Banking Industry as Public Utility Service: Section 2(n) of the Industrial Disputes Act, 1947 defines the term "Public Utility Service" which means- any railway service or any transport service for the carriage of passengers or goods by air, any service in, or in connection with the working of, any major port or dock; any section of an industrial establishment, on the working of which the safety of the establishment or the workmen employed therein depends; any postal, telegraph or telephone service; any industry which supplies power, light or water to the public; any system of public conservancy or sanitation; any industry specified in the First Schedule which the appropriate Government may, if satisfied that public emergency or public interest so requires, by notification in the Official Gazette, declare to be a public utility service for the purposes of this Act, for such period as may be specified in the notification. The nationalised bank come under the Public Utility Services as defined in Section 2 (n)(vi) of the Industrial Disputes Act, 1947.

Topics: Industrial Disputes Act, 1947

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