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smadanhr@gmail.com
3

Dear professionals, I have recently joined new company, here 18(1) settlement have been made with regard to wage increase. There is no union but have 5 member committee. Now, all employees had signed the settlement, except 2 and these 2 persons are being paid old salary only. The settlement agreed upon was really a good settlement, which pays more benefits to employees. Despite several attempts to convince these employees by the management, they refuse to sign.
Now, will it create any adverse impact before law on the pretext of "equal pay for equal work". Pls suggest.

From India, Madras
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Madhu.T.K
Seasoned Ir Professional
Ram K Navaratna
Hr Consultancy
KK!HR
Management Consultancy

KK!HR
1530

The accepted position of law is that a settlement is effective only on the parties to the settlement. If somebody openly resents the settlement then that employee cannot derive its benefits. There is a legal principle called "One cannot approbate and reprobate in the same breath" meaning that one cannot derive benefits while taking exception to the terms, one has to accept or reject the total package.
Even if the employee claims on the basis of equal work, there is a sound case to defend the action. You need to be sure that you have the documents to prove the employee's refusal to go by the settlement.

From India, Mumbai
Madhu.T.K
4193

If any one or two of the employees, being minority, do not agree for a settlement, it is good to involve the Conciliation Officer, the Labour Officer, and make it a settlement u/s 12(3) of the ID Act. He will, obviously, decide considering the majority. A settlement u/s 12(3) will become a settlement binding on all employees.
From India, Kannur
smadanhr@gmail.com
3

Respected sirs, Thank you for your valuable advices. Regards, Madhan S
From India, Madras
Ram K Navaratna
244

To avoid such issues it is always suggested to have 12 (3) settlement as suggested by Mr. Madhu which is safer binding on existing as well future employees during the valid period.

Good discussions.

Ram K Navaratna

From India, Bangalore
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