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Retrenchment compensation

(Querist) 18 November 2018 This query is : Resolved 
Dear Sir,

Please suggest me ....we have employed employees on 2 year contract basis as technician. Now contract is over. So we have to pay Retrenchment compensation to employees or not??
Isaac Gabriel Online (Expert) 19 November 2018
As per contract no compenstion is payable.
Kumar Doab (Expert) 19 November 2018
Apparently NO.
What is the opinion of legal cell of establishment that has copy of said agreement/Contract?
M V Gupta (Expert) 20 November 2018
As per Section 2 (oo) (bb) of the Industrial Disputes Act, 1947 termination of employment on account of non renewal of employment agreement on expiry shall not be regarded as retrenchment. Hence you will not be liable to pay retrenchment compensation if the contract of the employees is not renewed and consequently they are removed.
Dr J C Vashista (Expert) 21 November 2018
Non-renewal of contract after 240 days is covered under retrenchment for that you are liable to compensate.
Kumar Doab (Expert) 23 November 2018
Show the personnel file of said employees ( containing said agreement say; FTC as in query) containing their employment records (previous including gaps/artificial gaps etc etc) to your legal cell and for a considered opinion in person by a very able LOCAL counsel/Law firm specializing in concerned filed of law e.g; :Labor/service matters as in your case, and well versed with LOCAL applicable rules, precedence, latest judgments etc …. and worth his/her salt, can advise you after examining all case related docs, inputs, evidences on record.
Obtain proper legal opinion in writing!
One should not fall for IT’s and entities loitering at online portals to allure unsuspecting querists. There are many threads on such instances at LCI also.
Online discussions are not substitute to in person discussions with a very able counsel of unshakable repute and integrity specializing in concerned field of law.
There are such very able counsels at each location.
Check for such counsels at LOCAL; Labor court/CGIT, CAT, School-Educational tribunal,Civil Courts, HC, SC,..
You can also try for FREE legal Aid from Legal aid center (DLSA) that is usually within LOCAL courts complex..preferably from a very able counsel specializing in Labor/service matters.
Your counsels can advise after examining all docs/record/inputs pertaining to your matter and help you. You can also search threads on similar query in SEARCH option ON left Hand side of threads in Forum/Experts section. Having learnt a lesson, remember to consult beforehand for your matters or any matter about which you are not properly informed.
Kumar Doab (Expert) 23 November 2018

In the meantime you may go thru;
Allahabad High Court
Ircon International Ltd. vs Shri Baikunth Nath Dubey S/O Shri ... on 4 August, 2005
Author: R Tiwari
Bench: R Tiwari
https://indiankanoon.org/doc/463079/

Supreme Court of India
S.M. Nilajkar And Ors. vs Telecom, District Manager, ... on 31 March, 2003
Equivalent citations: AIR 2003 SC 3553, 2003 (3) ALT 17 SC, 2003 (2) AWC 1648 SC, 2003 (97) FLR 608, JT 2003 (3) SC 436, (2003) IILLJ 359 SC, 2003 (3) MhLj 9, 2003 (3) SCALE 533, (2003) 4 SCC 27, 2003 3 SCR 156
Author: R Lahoti
Bench: R Lahoti, B Kumar
https://indiankanoon.org/doc/138212981/

and pick up relevant points.
Your legal cell and/or LOCAL counsel approached by you in person would be supporting written legal opinion by citations.
Isaac Gabriel Online (Expert) 23 November 2018
The judgement referred, though not specific and tghe facts of the case does not seem to be appropriate. Neverthless it touches the ID act and 240 days of continuous working, you can try your luck.
M V Gupta (Expert) 24 November 2018
@Shri Vasishta. The point raised by you obviously is under Section 25F of ID Act, 1947 which provides for payment of retrenchment compensation for workmen who has been in employment continuously for a period of one year. Period of one year is defined to mean 240 days or more of continuous employment. But this section comes in to play if the termination amounts to retrenchment as defined in Section 2 (oo) of the ID Act. In terms of this definition retrenchment does not include cessation of employment on the expiry of the written contract of employment. Therefore in such cases Section 25F providing for payment of compensation does not apply. In this connection it may be noted that in case of projects of seasonal nature or temporary, workmen are engaged under written contract for a specified period.
Kumar Doab (Expert) 24 November 2018
The quwery was;
"Dear Sir,
Please suggest me ....we have employed employees on 2 year contract basis as technician. Now
contract is over. So we have to pay Retrenchment compensation to employees or not??"



Citations do touch upon the query and posts related to the query.

The query is apparently from employer’s side, for an employee that is designated Technician and to pay Retrenchment Compensation.
As per the language/draft of query: Apparently the querist knows the employee is Workman.
Hence ID Act is referred, in responses.

However impression has also been shared in responses, in posts posted so far in the thread.

Still the Technician can be a Workman and many not be!
There can be many views of courts of law!

It is not clear who/what is this Technician; say; if IT employee is being called Technician, or ECG machine operator etc etc


Kumar Doab (Expert) 24 November 2018
IT employee is a ‘workman,’
Between K Ramesha and HCL Technologies Limited decided by Additional Labour Court Presiding Officer S. Nambirajan
https://www.thehindu.com/news/cities/chennai/it-employee-is-a-workman-says-court/article8582566.ece


Contract worker not covered by Industrial Disputes Act
Delhi High Court
Ram Kishan vs Management Of M/S American ... on 18 December, 2009
Author: S. Muralidhar
https://indiankanoon.org/doc/1894170/

Delhi District Court
Co. (India) Ltd. vs . Presiding Officer I.T. Ii, 2003, ... on 16 April, 2013
Author: Sh. Chandra Gupta

The claimant is ECG technician …
that the services of the workman were terminated by the management vide its letter dated 08.04.2005 under the guise of non­ renewal of contract/traineeship
https://indiankanoon.org/doc/174500804/

Technician covered as Workman!

Shri Krishna Kant Pa... v. Presiding Officer, I... | Allahabad High Court ...

https://www.casemine.com/judgement/in/5ac5e4594a93261aa7922ae7

Delhi High Court
Mohit Electronics vs The Workman Tahir Hussain on 22 March, 2018

Once the view of the Labour Court is found to be plausible, as well as possible, the brief of this Court stands discharged
https://indiankanoon.org/doc/16899332/
Kumar Doab (Expert) 24 November 2018


The counsel approached by querist is to exert and opine after examining extent facts of the matter, record, inputs.

If the matter is at Delhi and if the the querist wishesd, he/she may approach LCI Expert Mr. H.S.Thukral with personnel file of the employee(s) having record of employment (with or without gaps) and give inputs in person for a considered opinion.


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