Subject: Effect of the Amendment - Sec 2A of the Act - Sub Section (2) & (3) Direct Reference of Dispute for Claiming Permanency
Dear All,
Previously, an employee employed by the contractor could not approach a Labour Court for claiming permanency without the assistance of a Labour Union. Now, by the amendment, he/she can approach the Labour court directly.
The remedy is as follows:
1. Firstly, he/she must make an application to the Labour Department Conciliation Officer.
2. If no action is taken by the Conciliation Officer, then he/she can file an application to the Labour Court for the adjudication of the Dispute.
3. The time limit for questioning all such disputes in relation to discharge, dismissal, termination, or retrenchment is 3 years.
Issues for the Principal Employer:
1. Individual contractor employee grievances are subject to conciliation by the Labour Officer and thereafter by the Labour Court. Previously, the method of reference by the government was a deterrent.
2. This can potentially open the floodgates of contractor employee litigation for claiming permanency.
Remedial Measures:
Appropriate remedial measures based on legal advice should be taken to ensure the proper termination/severance of contractor employees.
Knee-jerk reactions should be avoided.
With Regards,
Advocates & Notaries & Legal Consultants for Staffing & Recruiting Industry
E-mail: rajanassociates@eth.net
9025792684-9025792634
Dear All,
Previously, an employee employed by the contractor could not approach a Labour Court for claiming permanency without the assistance of a Labour Union. Now, by the amendment, he/she can approach the Labour court directly.
The remedy is as follows:
1. Firstly, he/she must make an application to the Labour Department Conciliation Officer.
2. If no action is taken by the Conciliation Officer, then he/she can file an application to the Labour Court for the adjudication of the Dispute.
3. The time limit for questioning all such disputes in relation to discharge, dismissal, termination, or retrenchment is 3 years.
Issues for the Principal Employer:
1. Individual contractor employee grievances are subject to conciliation by the Labour Officer and thereafter by the Labour Court. Previously, the method of reference by the government was a deterrent.
2. This can potentially open the floodgates of contractor employee litigation for claiming permanency.
Remedial Measures:
Appropriate remedial measures based on legal advice should be taken to ensure the proper termination/severance of contractor employees.
Knee-jerk reactions should be avoided.
With Regards,
Advocates & Notaries & Legal Consultants for Staffing & Recruiting Industry
E-mail: rajanassociates@eth.net
9025792684-9025792634