Small Shopkeeper Facing False Retrenchment Suit: How Should I Respond?

Dear members, as the subject states, I am a small shopkeeper with only one employee. He had been working with me for the past seven years but recently left and filed a retrenchment suit against me. I have responded stating that I have never terminated him and am willing to continue his employment.

Guidance Needed on Retrenchment Suit

What should be done in this situation as he has misrepresented the facts and filed a false suit? I seek your valuable guidance on this matter.

Thank you and regards.

If you take his personal file and his details to meet the Joint Commissioner of Labour, explain and show the relevant documents with you. He is the correct person to guide you, or you have to approach a legal adviser.

Regards

Evidence and Employee Termination

What evidence did the employee submit to show that you terminated his services? If he has not submitted any evidence, then it indicates that he left the service on his own. The very fact that you are ready to take him back into service also indicates that you have not terminated his services, but he only left the service, and it does not amount to retrenchment. Why should you be willing to take an employee back into service if you have terminated his service? However, you have not discussed the evidence part of the issue on both sides to enable the members to reply more specifically.

Regards,
B. Saikumar
HR & Labour Law Adviser

Thank you for the reply. Please suggest, if the workman admits that he is willing to leave the job on his own, what are the dues to be paid to him? Please guide again.

Thank you.

Settlement Dues for Employee

The dues may consist of the full and final settlement of the following:

1. The wages that accrued to him for the period he worked but remain unpaid, if any.
2. Moneys, incentive amounts, commissions, etc., if any, owed by you to the employee as per your contract or terms of appointment.

Since you have stated that you have only one employee, the Bonus Act 1961 or the Gratuity Act 1972 is not applicable to your shop.

Regards,
B. Saikumar
HR & Labour Law Advisor

Dear seniors, I need your help once again. In the last hearing, the C.O. wrote in the proceedings that after a number of hearings, the issue has not been resolved, and the case has been concluded. It can be taken for future reference or reporting. The workman has been paid 15 days' wages by the management, and no earned wages are due. Afterward, I paid the amount in cash, and myself, the workman, and the union leader's advocate signed the proceedings. So, sir, my request to you is: what does this decision mean? Please elaborate.

Thanks & kind regards.

Conciliation Outcome and Next Steps

When the Conciliation Officer (C.O.) records that the issue (termination/retrenchment) has not been solved, it means the conciliation ended in failure. Now, he has no more to do with the case. He will submit the report to the State Government for further action. The State Government, if it feels that there still exists a dispute, may refer the case to the Labour Court to decide the issue of retrenchment. If it is of the opinion that there is no dispute, it may close the matter.

Regards,
B. Saikumar

Respected seniors, I need your help regarding the above case. Since the workman requested an F.O.C. report from the C.O., he was given the failure report upon his request. Subsequently, the workman filed a suit in the labor court. In front of the judge at the labor court, the workman stated that he does not want to join the duty and requested assistance in obtaining his benefits. The judge then issued an order stating that the management is prepared to have the workman back on duty at any time, but the workman has declined to do so. As a result, the case has been adjourned until the next date.

My request to you, seniors, is to clarify the dues applicable to our shop, which has had only one employee working for the past 7-8 years. Please provide detailed information on this matter. I would be grateful for your assistance.

Thanks and kind regards.

The issue of dues other than earned wages has been addressed earlier. As for the dues of earned wages, the CO, as reported in your post, has stated that no wages are outstanding to the workman. You can present to the court the copy of the proceedings along with the receipts or acknowledgments showing that the workman has received the dues. If necessary, seek advice from a local advocate specializing in labor laws to present your case before the court, as examining the documents is crucial to understanding the case and evidence.

Regards,
B. Saikumar
In-House HR & IR Advisor