A.
Dear Client,
Regardless of reasons, on cessation of employment, an employee is entitled to an experience certificate, relieving letter and F & F settlement dues from the employer within 30 days of the last working days (LWD) post-completion of the notice period and denial of which amounted to victimization and unfair labour practices on the part of the employer as defined under Section 2(47) of the Industrial Disputes Act, 1947. As per the mandate of Section 27 of the Indian Contract Act,1872, any terms and conditions of an agreement that directly or indirectly compel the employee to serve the employer or put a restriction on them joining the competitor or other employer are not valid. The employee has the right to resign from employment even if he has agreed to the employment bond to serve the employer for a specific period. In the case where the employer can prove that the employee is joining the competitor to disclose the trade secret, then the court may issue an injunction order restricting the employee from joining the competitor. Further, Section 73 of the Act makes provision for unliquidated damages (not stipulated in a contract), Section 74 deals with liquidated damages (stipulated in a contract), and no compensation is attracted for mere breach of contract under Section 73. Section 74 of the Act, unless such breach resulted in an actual loss or damage to the opposite party employer. So, in the prevailing situation, if you are not holding a position of manager or supervisor in the Company, but a workman as defined under Sec.2(s) of the Industrial Dispute Act, 1947. serving a legal notice to the Company reach out to the office of the concerned Labour Commissioner or the office of the Chief Inspector, Shops and Establishments, as the case may be, to file a complaint against the company over alleged unfair labour practice for redressal of your grievance, Apart from this, you can file an application under Sec.33C(2) of the Industrial Disputes Act, 1947 before the State Labour Court claiming your dues from the Company. But, if you are holding the position of Manager or Administrator in the Company, you have to file a civil suit against the Company before the Civil Court seeking appropriate relief in the matter. If you are an employee of the IT Company then be informed that 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 sector employees considered to be "workmen" under Section 2(s) of the Industrial Dispute Act, 1947. 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. If required, consult or hire an Advocate experienced in service matters to navigate the issue in the right way.
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