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contract employee involved in theft(ID ACT)

(Querist) 19 May 2008 This query is : Resolved 
ONE OF CONTRACT EMPLOYEE IS ENGAGED FOR LAST 6 YEARS.

HE HAS BEEN CAUGHT RED HANDED FOR THEFT,A FIR IS FILED,THEN HE NOT CAME BACK,NEITHER COMPANY NOR CONTRACTOR ISSUED HIM A TERMINATION LETTER.

THE CONTRACT EMPLOYEE THEN FILED A DEMAND NOTICE AGAINST PRINCIPAL EMPLOYEER,NOW THE CASE UNDER JURDICTION UNDER LABOUR COURT. UNDER THE ID ACT 1947 UNDER SECTION 10(1)


1.KINDLY SUGGUST WHAT ARE THE CONSEQUENCES COMAPNY HAVE TO FACE.

2.IF WE GO FOR A SETTLEMENT WITH THE WORKER,WOULD THE COURT WILL ACCEPT THE SETTLEMENT.

3.HOW CAN WE DEFEND OURSELF.

amit gupta_lawyer (Expert) 19 May 2008
here you have not specified the terms and condition of contract with the employee and certainly if the terms is still left when he left then you have to give termination notice to him or general public atlarge but still you can take plea of that fir in your given case but for future only since he left the place but not for his past working before that incident
H. S. Thukral (Expert) 19 May 2008
Since the employee was engaged through contractor, you don't have any liability towards him.

In the written statment you deny any employer-employee relationship with him. Although, it seems that you had control and supervision over him which are factors deciding in favour of existence of an employer employee relation but there are other factors such as who appointed him, who paid him wages and who had power to terminate his services.
However if the employer employee relation ship is established you can take the defence that his services were not terminated and he voluntary abandoned the job.
You have also option of re-employing him and then simply discharge him on loss of faith. You can also hold a domestic inquiry and terminate his services.

Although settlement shall have a legal binding , it is advisable that no settlement should be made at this stage. Wait for conciliation proceedings before the Conciliation Officer of the Labour Department or let the dispute be referred to Labour Court. A settlement can be made with the workman at both platforms.
On the facts of the case the workman has poor chances of getting an award in his favour from the labour court. He is only trying to secure some money as a bargain for little harassment he can cause to the employer which you are contemplating to oblige him.


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