IMMEDIATE LEGAL QUESTIONS HAUNTING INDIAN STAFFING COMPANIES
Having been focused on the Staffing Industry in India which is at its crucial stage and our long standing experience of 30 years in the direct Litigation Support and acting for PSU‘s and Corporate and present counseling in Staffing Business for important Staffing Industry players we have always been focused on the analysis of proactive and preventive steps Staffing Companies can and should take to avoid claims and liability.
Despite these efforts it seems the Lawyers and Consultants end up doing more damage control in Courts and Tribunals. Through this damage control many lessons are learned. This is a continuing effort and cannot be viewed on a short term basis.
With each matter the Staffing Companies legal Team have always made an effort and during the course of the case and certainly at the end to talk about lessons learned. While they are numerous, and each perspective could be the subject of a book on the topic, the following are a few amongst the many key questions of which this is the first part:
1. Many a times the Contract signed with the employee is styled as Fixed Term Contract with a stipulation for termination, why is that there is litigation on termination ?
The Law is not clear since there is no positive provision in the Industrial Disputes Act as the action for termination in a Fixed Term Contract hinges on exclusion provided under Sec 2 (oo) of the Industrial Disputes Act. Therefore application of the exclusion by the Employer is subject to the Redressal Mechanism provided in the Act and there being different layers of redressal the damages that it could cause to the Staffing Company on an order of re-instatement could be onerous.Clients may insist termination without Notice pay but the best bet is to have a secure termination process based on sound legal advice.
With Regards
VS Rajan Associates,
Advocates & Notaries -Legal Consultants-HR
No.27, Ist Floor, Singapore Plaza,
No.164, Linghi Chetty Street,
Chennai - 600 001.
E-mail : rajanassociates@eth,net,
Off : 044-42620864, 044-65874684,
Mobile : 9025792684-9025792634
Having been focused on the Staffing Industry in India which is at its crucial stage and our long standing experience of 30 years in the direct Litigation Support and acting for PSU‘s and Corporate and present counseling in Staffing Business for important Staffing Industry players we have always been focused on the analysis of proactive and preventive steps Staffing Companies can and should take to avoid claims and liability.
Despite these efforts it seems the Lawyers and Consultants end up doing more damage control in Courts and Tribunals. Through this damage control many lessons are learned. This is a continuing effort and cannot be viewed on a short term basis.
With each matter the Staffing Companies legal Team have always made an effort and during the course of the case and certainly at the end to talk about lessons learned. While they are numerous, and each perspective could be the subject of a book on the topic, the following are a few amongst the many key questions of which this is the first part:
1. Many a times the Contract signed with the employee is styled as Fixed Term Contract with a stipulation for termination, why is that there is litigation on termination ?
The Law is not clear since there is no positive provision in the Industrial Disputes Act as the action for termination in a Fixed Term Contract hinges on exclusion provided under Sec 2 (oo) of the Industrial Disputes Act. Therefore application of the exclusion by the Employer is subject to the Redressal Mechanism provided in the Act and there being different layers of redressal the damages that it could cause to the Staffing Company on an order of re-instatement could be onerous.Clients may insist termination without Notice pay but the best bet is to have a secure termination process based on sound legal advice.
With Regards
VS Rajan Associates,
Advocates & Notaries -Legal Consultants-HR
No.27, Ist Floor, Singapore Plaza,
No.164, Linghi Chetty Street,
Chennai - 600 001.
E-mail : rajanassociates@eth,net,
Off : 044-42620864, 044-65874684,
Mobile : 9025792684-9025792634
