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Rohan Gupta (.)     07 October 2021

Shops and establishment act

 

Whether the mandate of Shops and Establishment Act, is limited only to the jurisdiction where the employee is working ?  



 6 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     07 October 2021

Jurisdiction of employment contracts

An employment contract will often state the law of the country which will apply to the contract and purport to confer jurisdiction on the courts of the same country to determine a dispute.

1 Like

Rohan Gupta (.)     07 October 2021

Thank you for your speedy response.

To get more clarity lets say if one employee was employed as a consultant at first and then he was promoted to a permanent position. In such case it is obvious that the later contract will be in effect.

It is well settled principle that every place where the company would have an office would be a seperate establishment. Now for the purposes of Shops and Establishment Act, whether an employee's jurisdiction to determine a dispute is limited to the place where he is engaged for or he can access his remedy wherever he wants to? 

Pradipta Nath (Advocate)     07 October 2021

What kind of remedy you are seeking: civil, criminal or Industrial & Labour Law?

Facts posted are incomplete.

Rohan Gupta (.)     07 October 2021

Civil remedy. I am an employee seeking claim from the company. 

Kevin Moses Paul   07 October 2021

As per your concern let me inform that section 20 of the Code of Civil Procedure (COC) states that a can be instituted in a Court within the local limits of whose jurisdiction—

(a) the defendant, or each of the defendants where there are more than one, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain; or

(b) any of the defendants, where there are more than one, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain, provided that in such case either the leave of the Court is given, or the defendants who do not reside, or carry on business, or personally work for gain, as aforesaid, acquiesce in such institution; or

(c) the cause of action, wholly or in part, arises.

You can initiate a suit either at the place where you were engaged in work (your office location) or at place where the company has been registered (ROC). This is because both the places (i.e. where you were working & where company has been registered) fills the criteria of appropriate jurisdiction related to place where the cause of action arose, as mentioned under Section 20(c) of the CPC.

Hope It Helps!

Rohan Gupta (.)     07 October 2021

If this is the case then lets say I am running a company in 4 different states and the registered office is located in the 5th state, will that mean the criteria of appropriate jurisdiction can be accessed by the aggrieved in all 5 states? 


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