Forced Resignation Dilemma: Can an Assistant Manager Seek Help from the Labor Office?

Dear All,

Can an Assistant Manager approach the labor office regarding issues related to forced resignation?

Determining Workman Status Under the ID Act

The labor court will entertain matters related to a 'workman' under the ID Act. The mere designation of "Assistant Manager" cannot be used to determine the status. To ascertain whether an employee falls within the category of workman, the nature of their duties must first be examined.

Assuming that this Assistant Manager falls within the category of workman, they should first send a letter with acknowledgment to the company, stating that they were asked to resign forcefully and requesting the cancellation of such a letter to allow them to continue their job. If the company does not allow them to rejoin, they may then approach the labor commissioner to raise the dispute.

In all probability, the Assistant Manager will not fall under the category of Workman, although his charter of duties will clarify this point.

In case he does not fall under this category, then he may send a legal notice. Based on the reply, or in case no reply is received, the court can be approached.

Best wishes,

Col. Suresh Rathi

Determining Workman Status Under the ID Act, 1948

Irrespective of the designated nature of duty, it will determine whether he or she falls within the purview of a workman or not. However, if he or she is engaged in managerial or supervisory activities such as having signing authority, directing juniors, performance evaluation and data analysis, planning to enhance sales, etc., they cannot fall within the definition of a workman under Section 2(S) of the ID Act, 1948.

Understanding Basic Salary and Minimum Wages

With regard to your second query, it's not necessary to have the basic salary equal to the minimum wages. It can be split into certain allowances like HRA, Conveyance, LTA, Medical reimbursement, etc., provided that the gross salary should not be less than the minimum wages prescribed by the state government under Section 3 of the Minimum Wages Act. Also, the basic salary should not be less than 50% of the gross to contribute to statutory benefits like EPF, Bonus, and Gratuity.

Bonus Threshold Limit

The bonus threshold limit under Section 2(13) is basic plus DA, which should not be more than 21,000.

Thanks & Regards,

V SHAKYA
HR & Labour Laws Advisor

An employee designation will never determine the workmen status. If he is not vested with the power of sanctioning leave to the people reporting to him, then he will come under the status of workmen, and he can approach the legal machineries.

With regard to the wages, Basic DA and HRA are treated as wages under section 2 (h) of the MW Act. For bonus, only Basic and DA will be treated as wages under the PB Act.