Is My Father's Sudden Job Termination a Case of Retrenchment Under the Industrial Dispute Act?

Hi.

My father has been working with Bhushan Private Limited in Chandigarh in a clerical position for the past 23 years. One day, his employer informed him not to come to the office without providing any prior notice. Does this action by the employer fall under the Industrial Dispute Act as retrenchment? Does my father have any rights to claim compensation? If yes, please provide guidance.

Thank you.

Your father can raise a dispute under Section 2-A of the Industrial Disputes Act, 1947 before the Labor Officer for the area.

Thank you for your response, sir.

Is it practically beneficial to pursue a case under Section 2A, or would it be a waste of time and money? Is the process slow and time-consuming? We are concerned that if we file a complaint under the mentioned section, the company may delay providing other benefits such as gratuity or PF.

My father's salary is above 10,000. Is he not covered under the Workmen of ID Act?

It is the nature of the work performed that determines the status of the job. If your father had been employed to do any manual, skilled, unskilled, or clerical work, then his salary has no relevance.

What I suggested is the only speedy and efficacious remedy available to a workman against any unlawful termination of his employment. Every remedial effort has a time frame. If it is delayed for some reason or the other, you have to put up with it. The Court can grant a relief of reinstatement with back wages or some monetary compensation in lieu thereof depending upon the circumstances of each case. So no one can fix the time limit or consider it as a waste of time because retrenchment compensation against illegal termination cannot be claimed without instituting a case under the Act. If gratuity is delayed, the employer will have to pay interest for the entire period of default, and for the settlement of PF, you need not solely depend on him if he is non-cooperative.

Regards