Can a Contract Worker Claim Benefits After Leaving Without Notice? Let's Discuss the Legalities

Contract Worker's Employment Dispute

A contract worker "X" worked with "Y" organization for approximately 730 working days in the last three years. However, X left thereafter and started working with another organization, "Z", without informing "Y" organization. It is noted that both organizations are under the same parent entity.

Four months later, X filed a complaint at the office of the Assistant Labour Commissioner (ALC) through a union, citing Section 10 of the Industrial Disputes Act, 1947. Mr. X is demanding retrenchment benefits or regularization of duty.

It should be noted that Mr. X also left his job at "Z" organization without informing them. The question arises whether he is entitled to receive retrenchment benefits from "Y" organization. If yes, what benefits will X be entitled to receive? Who will oversee the regularization of his employment duties?

Regards

After X abandoned the services of Y, was the Full and Final (F&F) settlement done by Y? Was any communication issued mentioning that since you have voluntarily quit the job, please accept F&F by a certain date, etc., issued by Y?

If not, X can raise a dispute about illegal termination if Y refuses to take him back to the job, which legally has not been discontinued.

Demand for Regularization

His demand for regularization may be considered by the Assistant Labour Commissioner (ACL) if the job, which was ordinarily carried out by him lastly, still exists in the same quantum and nature and the duty position has been replaced by another workman. Otherwise, ACL may recommend retrenchment benefits.

Retrenchment Compensation

The workman has to be paid, at the time of retrenchment, compensation equivalent to fifteen days' average pay for every completed year of continuous service and one month's notice pay in addition to all his legal dues, whatsoever.

However, Y can twist or give another dimension to the dispute by producing evidence that X was gainfully employed with Z.

Regards,
Shailesh Parikh

Vadodara, Gujarat

[Phone Number Removed For Privacy Reasons]

You have provided the facts file of the situation. However, the options open to you will depend on the documents file—as Shailesh Parikh mentioned, please give details from this angle as well. Please clarify his queries, and I am sure you will receive the most realistic and appropriate suggestions from the members.

Regards,
TS

Voluntary Separation and Retrenchment Compensation
If a worker left the job voluntarily, he is not entitled to retrenchment compensation. You need to see what records are available with the contractor to support voluntary separation.

Same Principal Employer Consideration
Both contractors being under the same principal employer, it would be easy to show that he was working for the second contractor, and therefore the demand for compensation is not entertained.

If your facts are correct, the employee can still raise a dispute of oral termination. However, you are not liable to reinstate him as he is not your employee. If the contractor has terminated him by way of retrenchment, the contractor is liable to pay the legal dues. If the contractor fails to do so, the principal employer is required to pay first and then recover from the contractor, as per the latest judgment of the Madras High Court.

Contract Worker Dispute: Entitlement to Benefits

A contract worker "X" worked with "Y" organization for approximately 730 working days in the last three years. After that, X left and started working with another organization, "Z", without informing organization "Y". It is important to note that both organizations are under the same parent company.

Four months later, X filed a complaint at the office of the Area Labour Commissioner (ALC) through a union under Section 10 of the Industrial Disputes Act, 1947. Mr. X is now demanding retrenchment benefits or regularization of duty. It should be noted that Mr. X also left the job at organization "Z" without giving any information.

Is Mr. X entitled to receive retrenchment benefits from organization "Y"? If so, what benefits will X receive, and who will handle the regularization of his work?

Regards.

Following the ALC's approval, disputes will be forwarded to the labor court. The court may summon our organization to provide the necessary documents. We possess the following documents:

• Payment records for the next two months from organization "Z", where X was employed after leaving organization "Y". The wages received from "Z" are higher than those from "Y".

• A letter from the HR department addressed to the ALC stating that the worker was not retrenched but instead transferred from organization "Y" to organization "Z" to streamline work operations at "Y". As a result, the worker is only eligible to receive pending dues, not retrenchment benefits.

Please advise on the next steps.

Current Situation and Legal Action

The labor court has registered three similar cases and has called us on 25th November 2014. I have hired a lawyer on behalf of my organization to handle the case. Please advise further under the above factual situation of the case.

Workers' Current Status

Now, the workers have left, and they have not worked under any of the above contractors. Out of them, one worker submitted a withdrawal letter to the Assistant Labour Commissioner (ALC) regarding submitting his complaint.

Please advise...

Let's see the case in the decision stage.

Expert/Senior Members, if you have any judgments from the High Court related to the case, for example, "Retrenchment compensation will be eligible if any casual worker leaves the job without any information and resumes another job the very next day."

Seniors, your help under the above case is requested.

Regards,
Mahesh Prasad Gupta

Management was ready to compromise with the complainer, but at the last moment of compromise, the complainer denied to settle. As a result, the case is under decision after arguments from both sides.

Court Decision on Compensation Benefits

Finally, the complainant did not agree to compromise, so the Honorable Court awarded the case as follows: "The complainant is not eligible to receive any compensation benefits; therefore, there is no need to issue any instructions to the employer."

1. The complainant (1st party) did not provide certification of retrenchment effective from 01.09.12; hence, they are not eligible to receive any compensation under the Industrial Disputes Act, 1947, Section 25F.

2. Since the termination was deemed illegal and not certified, the complainant is not entitled to any benefits.

3. There is no requirement to issue any instructions to the employer (2nd Party).

Regards, Mahesh Prasad Gupta

Honorable court awarded the case "complainer not eligible to get any compensation benefit, so no need to pass any instruction to employer" because:

1. Not certified retrenchment by the complainer (1st party) w.e.f. 01.09.12; hence, not eligible to get any compensation under the ID Act 1947, Sec 25 F.

2. Illegal termination is not certified, so the complainer is not eligible to get any benefit.

3. No need to pass any instruction to the employer (2nd Party).

Regards, Mahesh Prasad Gupta

Mahesh,

Thank you for updating us. Very few queries on the forum have their logical and final conclusions listed. But one thing worries me - illegal termination not certified. Does that actually mean it's not illegal termination? Or that complainant didn't get it certified by the labor commissioner? Is it a technical reprieve or on merit?

Sir,

The complainant is not able to be certified before the Honorable regarding his termination. This is legal because the employer has provided proof that the complainant left the job for his own benefits.

Regards

Sir, the complainant was not able to provide certification before the Honorable court regarding the legality of his termination, even though the employer has proof that the complainant left the job for his own benefits.

Regards