Dear All
Our company is registered under Companies Act, all labour laws are applicable to Co. The brief fact of the case is that, we had one unit which was running on lease. Due to financial crisis & the original owner is asked to vacate the premises, the said lease unit is closed down in the year 2011/2012 by transferring all permanent workers & staff to our other 3 units and terminated labour contract with the contractor who had engaged some contract workers. (the said contract was registered under The Contract Labour ( R & A) Act 1971).
Since the labour contract of contractor had been terminated, the contractor terminated services of his contract workers. Being grieved the contract workers file complaint of oral termination before the Asst. Labour Commissioner (ALC) under Section 2 (A) of ID Act for conciliation which was not settled. Subsequently the ACL send failure report and the Reference ID were made in Labour Court in the year 2012. The said Reference trial on merits and the court has passed Award in the year 2015 and held that the oral termination of contract workers are illegal hence directed "Reinstatement with full back wages and Continuity in service."
The workers send letter to implement the said order and provide employment, since the business of the said unit was closed down the order can not be implemented but we had not filed any Appeal in the said matter.
Subsequently, the workers approach Dist. Collector for recovery of claim amount under the provisions of Land Revenue Act, the Collector issued notice to us to pay the dues , failing which complainant workers names will entered on the company property as the dues of land revenue. We intimated to Collector that the said property was on lease & the company is close down.
The Collector issued directions to Tahsil accordingly complainant workers names entered on the leased property. Thereafter, the complainant again approach Collector by filing another application to enter their names on the personal property of the Managing Director. Based on the application their names entered on the personal property of MD.
Under the circumstances what are the remedies available to company to defend the matter. Can we file Writ & get stay order not to take further actions. Please advice.
Manager HR.
20th July 2019 From India, Nashik
Dear Ijaj,
Since the original adjudication of the dispute has reached its finality of recovery proceedings without the aggrieved management exhausting the appeal provisions, the description of the facts appears to be selective or insufficient.
(1)When the unit/factory was leased out to a third party under a documented agreement by the Company, the lessee becomes the occupier of the factory and as such what prompted you to absorb the permanent workmen of the lessee by way of transfer of their services to your other units?
(2) If the lessee was the principal employer to the contract labor engaged in the leased out unit, how come you were impleaded as a party in the dispute in the stages of conciliation and adjudication under the I.D Act, 1947?
Without perusing the award, I think that it will not be possible to offer any suggestion about the further action at this stage.
20th July 2019 From India, Salem
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