Long Battle for Justice: Can This Employee Negotiate Directly with Management for Fair Settlement?

Dear seniors, I would like to seek clarification for the matters mentioned below and the way forward. This is not a hypothetical scenario; it is based on true events and facts.

• An employee worked for a Global MNC as a stores assistant from the year 1986. At that time, he was a daily wage employee, but the salary slip was from the company name.

• In 1990, the employee became a monthly salary worker (consolidated monthly temporary worker), with the salary slip in the company name.

• In 2002, the employee demanded permanency from the company, having worked for more than 16 years.

• Eventually, the employee approached the Labour Department for help, and conciliation proceedings took place. The verdict was in favor of the employee, awarding permanency.

• The company went for an appeal in the Labour Court, challenging the award. Meanwhile, the company issued a termination order while the case was in proceedings in 2005.

• Challenging this, the employee filed a separate writ petition in the Labour Court against it.

• The employee was denied entry to the office premises.

• The Labour Court judgment came in 2012 in favor of the employee, awarding reinstatement with back wages.

• The employer again appealed in the High Court, and the case is still pending.

• The employer has no evidence or proofs and just appealed in the High Court to drag the case.

• The employee has strong evidence and a strong hold on the case but is financially deprived and needs to travel from his native place to Chennai for every hearing, which is 350 km from Chennai, making it very hard for him.

• Meanwhile, the employee fell very sick and can hardly walk. Adding fuel to the fire, no judges were appointed, which again dragged the case further.

• Now, as the company knows they can't win the case, they are approaching the employee's lawyer for an out-of-court settlement. The amount they quoted was very low, and the employee is not satisfied with it (the case has been running for about 15+ years, and if the employee had been made permanent as per his grade, he would be getting around 45,000/PM, as confirmed by another employee who worked with him and is still working in the same company).

• The company has offered around 25 lakhs, whereas the employee's demand is much higher due to his present health condition and family situation.

• Also, the company has not sent any formal settlement negotiation letter or mail in this respect. The company lawyer approached the employee's lawyer.

Help required

1. Was the settlement amount offer truthful, considering the long hard battle fought by the employee and his poor health issue? (The employee's age is 52 now.)

2. Can the employee directly approach management to see whether they have proposed the offer in alignment with the employee's lawyer?

3. What can the employee demand in the amount offered? (At the time of termination, the employee was getting approximately Rs 8,000/- as a monthly salary.)

4. The employee's father was murdered while on duty while visiting one of the company's mines, based on which the employee was given a job. However, in the case proceedings, the employee has not mentioned anything regarding it, and proofs for the same are also with the employee. Can he open this in court now?

Happy to share any documents personally. We all know that labor cases take time, but 30 years is too long. Proper guidance could benefit the employee to the fullest. If any additional info is required, I am also happy to share.

Dear Calyanaramon, your conspectus of the case reminds me of the proverb, "It is always better to nip in the bud."

Whether the employee, who is now 52 years old, is of sound health or not, he has not attained the age of superannuation. After reinstatement, he has the prerogative to decide to retire voluntarily on health grounds at any time before his actual superannuation.

Similarly, whether the employee's initial appointment was on compassionate grounds or not, he was in continuous service of the establishment from 1986 to some time in 2012 when the Labour Court awarded reinstatement with back wages. There is still a presumption that he is in the service of the establishment, although an appeal by the management against the award is pending in the High Court. Your post is purposely silent about any orders passed by the High Court under Section 17-B of the Industrial Disputes Act, 1947, granting interim relief of last drawn full wages. This gives rise to another inevitable presumption that for all practical purposes now, he would be drawing a salary of Rs. 45,000 per month on the analogy of his peer mentioned in your post. In such a perplexing situation, people like us cannot come to a conclusion on whether the amount of Rs. 25 lakh offered by the management as a one-time settlement, including past claims towards notional salary and terminal benefits like gratuity, is very reasonable.

I appreciate the current move of the management in principle for an Out-of-Court Settlement. However, its reasonableness depends on the actual calculation of the dues. It would be better to talk to the employee and his counsel and arrive at an amicable settlement. If possible, seek the assistance of the Conciliation Officer for the area.

Dear Sir,

Thank you for the response. Just a small clarification: the order was passed in the Labour Court, after which the management appealed in the high court, and the case is still pending.

The non-employment case was already decided by the Labour Court in favor of the workman, granting the relief of reinstatement with back wages and continuity of service. The Writ Appeal, only at the behest of management, is pending in the High Court. Therefore, it is for the management to settle the dispute amicably with the workman by negotiation and withdraw the writ.