Labour Law & Hr Consultant
+2 Others

Dear Friends,
Our Union worker demanding to provide Wage Settlement agreement benefits to retired workers who retired during agreement period. (AGREEMENT DUE ON 01.10.2014 AND SIGNED/EFFECTIVE FROM 01.10.15) ,Share your view on this issue.

From India, Nasik
Dear Rupesh,
Section 19(1) of the Industrial Disputes Act,1947, while dealing with the aspect of operations of settlements and awards, reads as follows:
" A settlement shall come into operation on such date as is agreed upon by the parties to the dispute and if no date is agreed upon, on the date on which the memorandum of settlement is signed by the parties to the dispute".
So, legally, any workman retiring from service on superannuation before the date of signing of the settlement can not stake any claim for its benefits when its operation is prospective.
One can argue that had the delay in between the date of expiry of the previous settlement and the date of signing of the fresh settlement been avoided, those workmen leaving their service in the intervening period by the operation of the clause of superannuation would have been benefitted. But it would be untenable in the face of the mention of a specific date of prospective operation in the fresh settlement.

From India, Salem
True, it all depends up on what date was agreed upon in the settlement for it to become enforceable.If it is with retrospective effect (which happens when there is delay in entering a fresh settlement after the expiry of the previous settlement) and some employees retired during this period, they can have a claim to the benefits of the new settlement.

From India, Mumbai
Although the signed agreement stands that the benefits agreed wont be applicable to the employees who are retired during the Gap period/uncovered period, however the point of Gap period of employees would have been discussed during negotiation.
Transperency during settlements will enhance trust on both ends, one shall not take advantage of others weakness as it may lead "disaster" in a longer run.

From India, Mumbai
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