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Suruchi (Advocate)     28 April 2008

Retrenchment

In case an IT company wishes to offer alternate employment due to reallignment being done in the present company what are the legal needs that is to be satisfied in such a case and if the company wants to issue letter for the same what are the things to be mentioned in the letter so that there is no lacuna in the said letter.



 4 Replies

H. S. Thukral (Lawyer)     28 April 2008

Dear The employer has a right to reorganise his business the way he likes. If in the process the workforce has to be reduced , the same is justified subject to provisions of section 25 F of the Industrial Disputes Act. If on offering the alternate employment, the employees accepts it an agreement can be signed with the concerned employee or the union/assocaition to which he is a member. If one does not accept the employment he would be entitiled to retrenchment compensation as per law. The agreement must refer that the altered terms of conditions of service are in continuation of existing service. Kindly also go through Section 9A of the ID Act.

Guest (n/a)     29 April 2008

hihihihihihihihi

Guest (n/a)     04 May 2008

sir, i need clarification that, i have been terminted without any reason and any enquiry and i was working as executive grade e3 for past 23 yearsut i dont have any authorityof anything except taking the worki from the workmen and i have filed a petition in the office of LABOUR COMMISSIONER bangalore and my case is handled by DLC in first sitting management has objected for the petition since i am in a category of supervisory level and it wont come under this office, but i have given the reply to that i am also a industrial employee why it wont come under dlc. please clarify and con firm me whether i am not eligible to this office i have case tomorrow i.e 54th of may 2008, thanking you ismail ali

H. S. Thukral (Lawyer)     05 May 2008

The status of an employee whether he is working in mamagerial or administrative capacity or whether he is a workman under section 2(s) of Industrial Dispute Act is both a question of fact and law. The Industrial Court will sum of the evidecne and decide the question as per law. The Labour Authorities or the aprropriate government, when seized of an industrial dispute attempts to bring in a settlement between the parties in order to establish and maintain industrial peace. It does not have power to adjudicate the dispute. It, in case of failure of cnciliation proceedings shall refer the dispute to an industrial court for adjudication. A writ in HC can be filed if the appropriate Government doesnot act in the matter.
I am not fully aware of the facts in your case but the only factor that you did not have the authoriity is not conclusive proof of your being in workman category. If the work assigned to you involves creativeness and imagination you can still be termed as working in managerial and administrative capacity. A painter is held to be not a workman whereas a geolist and an accountant were held to be workmen. There is a long list of cases and situation in each case varies as two person though designated similar would not be perfroming identical duties.
You must stress in your rejoinder that duties perfromed by you were of such nature to bring you in category of workmen. I point out that the wage/allowances/etc have no bearing on this question.

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