A.
Dear Client,
To restrict IT Companies from exploiting their employees by playing double standards, the Division Bench of the Karnataka High Court in the case of Commissioner of Income Tax v. Texas Instruments India Pvt Ltd (2021) 435 ITR unambiguously held that the IT employees considered to be "workmen" under Section 2(s) of the Industrial Dispute Act, 1947. The court while reiterating the definition of "workmen" under the Industrial Disputes Act stated that, "In terms of section 2(s) of the ID Act, the definition of a workman is very broad since the said definition would cover any person who has the technical knowledge, self skilled in an industry. Thus the software engineer would per se come within the purview and ambit of a workman under Section 2(s) of the ID Act so long as such a person does not take a supervisory role". Further, the Hon'ble Bombay High Court in the case of Godrej and Boyce Manufacturing Company Ltd. v. Shivkranti Kamgar Sanghatana, 2024 SCC OnLine Bom 938, decided on 28-03-2024 ruled out that the nature of duties and functions is the determining factor in ascertaining ‘workman’ under S. 2(s) of Industrial Disputes Act, 1947, Given the above-cited ruling of the Hgh Courts, it can be safely opined that the employees of the IT Sector irrespective of their nature or terms of employment comes under the purview of the Industrial Disputes Act, 1947 and can raise disputes before the Industrial Tribunal/Labour Court seeking relief against their illegal termination/retrenchment by their employers. Section 25F of the Industrial Dispute Act, 1947 provides for the employer to fulfil certain conditions before retrenching any employee. It states that no workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until- (a) the workman has been given one month’s notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice, (b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days’ average pay for every completed year of continuous service or any part thereof in excess of six months; and (c) notice in the prescribed manner is served on the appropriate Government. The condition given under section 25F(c) requires the employer to give notice to the appropriate government in addition to the other two conditions. Further, unlike notice requirements of section 25F, the employer is required under Section 25N to make an application along with the reasons for intended retrenchment to the State Government for seeking its prior permission to retrench the employee. Hence, a simple termination as per the employment contract can prove disastrous if the employee challenges the termination before the Industrial Tribunal or Labour Court. Further, Termination without notice amounts to illegal termination and is defined as an industrial dispute under Section 2A of the Industrial Disputes Act, 1947 which also violated the mandatory provision of Sec.25F and 25N of the Act that prescribed certain conditions to comply with by the employer before termination/retrenchment of a workman/employee from the employment. In that scenario, the terminated employee/workman can raise an industrial dispute directly before the Industrial Tribunal/Labor Court concerned for adjudication within three years from the date of termination/retrenchment. So, in the prevailing situation, if you are not holding the position of Manager/Supervisor then after serving a legal notice to the Company, you can raise an Industrial dispute directly before the State Govt. Industrial Tribunal under Sec.2A of the I D Act. and simultaneously file an application u/s.33C(2) of the I D Act before the concerned Labour Court claiming dues from your employer receivable to an employee on illegal termination/retrenchment. Otherwise, if you are holding the position of Manager/Administrative Officer in the Company, you have to file a civil suit before the Civil Court seeking appropriate relief in the matter. The contractual employees are also covered under the EPF & M P Act, 1952 and contribution is deducted once they are engaged by an employer as per the Act. For irregular interruption in employment and reemployment in other establishments, a member of EPF faces overlapping records in his EPF account. A Joint Declaration Form is used to correct Provident Fund (PF) member details. It is a combined form required to be signed by both the employee and employer and to be submitted to the concerned office of the regional PF commissioner to rectify and update the correct information in the employees’ PF accounts. In case of non-cooperation from the previous or present employer in this regard, an individual PF member can file a complaint online using the EPF i-Grievance Management System (www. https://epfigms.gov.in/) and also in offline mode to the concerned office of the Regional PF Commissioner. Feel free to contact our legal team. if you need any assistance in the matter of drafting the complaint or raising a dispute under the I D Act before the Industrial Tribunal / Labour Court/Civil Court, to navigate the issue in the right way.
Posted On 29-Apr-2024
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