Twelve respondents instituted a civil suit before the Senior Sub-Judge against the employer's action of their termination and retrenchment from service. The reliefs they claimed in the suit consists in the: Declaration t

CS Professional · Labour Laws & Practice · PYQS · June 2023
Twelve respondents instituted a civil suit before the Senior Sub-Judge against the employer's action of their termination and retrenchment from service. The reliefs they claimed in the suit consists in the: Declaration to the effect that the orders of their termination or retrenchment from service were illegal, and Entitlement against the retrenchment with back wages. It was pleaded that the plaintiffs-respondents were skilled workers working in a hydel project in Alandpur in various capacities such as T. Mate, Mixer Operator, Beldar etc. for more than 5 years and therefore as per the standing orders and the rules, they were regular employees of the defendants. It was alleged that the defendant-appellants did not maintain any seniority list of the workers and different categories of services on the said project and they arbitrarily removed the plaintiffs-respondents from service by obtaining their signatures on papers under coercion and force and also forcing them to accept payments. It was further alleged that the defendant-appellants while removing plaintiffs-respondents did not comply with seniority criteria. As a result, juniors were retained in service and seniors were retrenched. It was alleged that the action was discriminatory and contrary to law resulting in victimization. This claim of the plaintiffs-respondents was contested by the defendant-appellants on the grounds that common suit could not have been filed since the cause of action of each defendant was distinct and separate; the plaintiffs-respondents were appointed on purely temporary basis and after the completion of the project, their services were validly terminated. On the contrary, the plaintiffs-respondents claimed injunction and reinstatement. On the diligent perusal of the above case, answer the following questions referring to legal provisions and decided case law, if any: The retrenchment should be bona fide and there should not be victimisation or unfair labour practice on the part of employer. Explain what acts of the employer would not constitute retrenchment under the Industrial Disputes Act, 1947.

Answer & Explanation:

In the case of Workmen of Subong Tea Estate vs. The Outgoing Management of Subong Tea Estate, (1964) 5 S.C.R. 602; A.I.R. 1967 S.C. 420) , the Court laid down that the management can retrench its employees only for proper reasons, which means that it must not be actuated by any motive of victimisation or any unfair labour practice. The employer has to execute retrenchment in accordance with Section 25F of the Industrial Disputes Act, 1947. This section states that a workman employed in any industry working continuously for at least 1 year cannot be retrenched unless the following conditions are fulfilled: The workman has been served a notice of 1 month in writing that states the reasons for retrenchment or the workman has been paid in lieu of such notice, wages for the notice period. The workman is paid compensation equivalent to the average pay of 15 days' for every completed year of continuous service. The period of 6 months or more is considered equivalent to a year for calculation of retrenchment compensation. Notice in the prescribed manner is served on the appropriate Government. According to Section 25N of the Industrial Disputes Act, 1947, an industrial establishment which employs 100 employees or more, has to fulfill certain additional conditions for retrenchment of the workman. The section states that a workman employed in any industry working continuously for at least 1 year cannot be retrenched unless the following conditions are fulfilled: The workman has been served a notice of 3 months in writing that states the reasons for retrenchment or the workman employee has been paid in lieu of such notice, wages for the notice period. The prior permission of the appropriate Government or such authority as may be specified by that Government by notification in the Official Gazette has been obtained on an application made in this behalf. Section 25G of the Industrial Disputes Act lays down the procedure of retrenchment, which states that an employer can terminate the employment of the last workman hired, by way of retrenchment. If any other employee is retrenched, then the employer has to specify the reason for doing so. For this, the employer is required to maintain a seniority list of its employees. In absence of any of the abovementioned acts of the employer, the retrenchment would not be constituted under the Industrial Dispute Act, 1947.

Topics: Industrial Disputes Act, 1947

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic