Is Our Company Breaching Contract by Delaying Wage Increases Due to Economic Struggles?

Dear all,

In my company, we conducted collective bargaining and reached a collective bargaining agreement in which it was decided that our company would increase labor wages by Rs. 6 every year. However, due to poor economic conditions, we are currently unable to implement this increment. Is this a breach of contract? What could be the consequences? Your assistance is appreciated.

Vijay Vyas
Manager HR

Dear Vijay,

This is not a breach of contract but rather a non-implementation of the settlement by the management. If the workers approach the Labour department, the government may take action for this breach of settlement, which is punishable under section 29 of the Industrial Disputes Act, 1947. Workers can also file their claim under section 33 (C)(2) of the ID Act before the Hon'ble Labour Court.

Opinion submitted as requested.

Regards,
R.N. Khola
Skylark Associates, Gurgaon
(Labour Law & Legal Consultants)
09810405361

Dear All,

We, a company, entered into a rental agreement with the landlord in August 2007. The lock-in period for this agreement is 3 years, of which 1 and a half years have already passed. Due to the recession, we have been unable to meet the administrative expenses. We requested the landlord to reduce the rent by about 30%. We have learned that some landlords have offered and provided discounts to their tenants. However, our landlord is not cooperating and has refused to provide the discount despite our numerous requests and continuous follow-up. Furthermore, he is asking us to vacate the office with one month's notice if required, and is demanding the balance of the lock-in period rents (approximately 15 months), or he will waive off the deposit amount.

In these circumstances, can we proceed legally? What measures/actions can we initiate? Can anybody suggest the best approach to resolving this issue?

Shashikanth.