A.
Dear Client,
In the absence of a buyback policy of notice period in the contract of employment or any waiving policy allowing an employee to walk out post-resignation, you have to serve the required notice period. Even if you need an early release from the service on the grounds of adverse health conditions that also depends upon the discretion of the Employer and for breach of contract employer can take legal as well as disciplinary action against you including termination/retrenchment of an employee. The clause (c) of Section 2(oo) of the Industrial Dispute Act, 1947 states that “retrenchment means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include – (a) voluntary retirement of the workman or (b) retirement of the workmen on reaching the age of superannuation, (bb) termination of the service of the workman as a result of the non-renewal of the contract of employment, (c) termination of the service of a workman on the ground of continued ill-health. 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. 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". 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 21-May-2024
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