Umakanthan53
Labour Law & Hr Consultant
Nisha 1705
Hr Manager
+1 Other

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Termination letter was issued to a Business development manager in my company. He was compensated as per employment agreement with three months pay in lieu of notice but he say this termination is illegal as per industrial dispute act. Please advise if a BDM falls under ID act as he is manager or what can be done in such case.
From India, Gurgaon
Dear Nisha,
Designation of a job alone cannot be a sole criterion for determining the status of a job. Any employee by his/her designation as well as the predominant managerial or administrative nature of duties attached to his/her job would certainly escape the ambit of the definition of the term " workman " as defined u/s 2(s) of the IDA, 1947.
If the above principle squarely applies to the incumbant designated as a BDM and separated as per the exit clause of his contract of service, he cannot take recourse under the IDA, 1947 for any grievance, if any later.
Simply write back to him this fact.

From India, Salem
Many Thanks Umakanthan Ji for your guidance.
From India, Gurgaon
Then sir, in this case if the BDM wants to make raise a dispute against the company what would be the alternative processes for him... will he has to go for civil court procedure??
From India, Kolkata
Dear Debasish,

So far as the process of conciliation under the IDA,1947 is concerned, a person employed as a manager or supervisor in an industrial establishment can stake a claim u/s 2-A(1) against his discharge/dismissal/retrenchment before the Conciliation Officer under the Act. But the Conciliation Officer cannot decide the issue on his own as the process of conciliation is only an administrative function in character. Therefore, he only has to record conciliation failure and submit a report u/s 12(4) of the Act.

Subsequently, if the person moves the Labor Court u/s 2-A(2), whether the individual was a workman u/s 2(s) of the IDA would be decided by the court as the preliminary issue.

If the individual has the legal bent of mind he would not prefer to waste his time, money and energy in such a futile exercise;on the contrary, he would file a Civil Suit to get the dismissal/discharge declared as illegal and claim damages only.

From India, Salem
Thank you sir,
but sir as you have mentioned in above that the conciliation officer has only administrative character and he has to record conciliation failure only, sir is it an obligation for the officer to do so and he has no authority to decide the case but only to record conciliation failure and submit a report to app. govt. with in 45 days of such application to him and the app. govt. has the power to refer it to the adjudication body i.e. to the labour court as it falls under schedule 2 of the act.
again sir it is only applicable to the workman only, and under the definition of workman it is not included any person who is in a managerial or supervisor capacity, then in this case how could the BDM follow this process under ID act?

From India, Kolkata
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