Basically, employment is a contractual relationship between the employer and the employee. As such, the mutual rights and obligations arise only from the terms of the contract of employment. Any breach by either party is a subject matter of the Indian Contract Act, 1872, and the forum for redressal is the Civil Court.
The Industrial Disputes Act, 1947, is a special enactment for the investigation and settlement of industrial disputes. Despite originating from the Law of Contract, the ID Act, 1947, is designed to modify existing contracts between those covered under the Act, namely the employer and the workmen, to ensure industrial peace.
Analyzing the definition of the term "workman" under Section 2(s) of the ID Act, 1947 reveals that individuals employed mainly in managerial or administrative capacities are not considered workmen. The Legislature's intention is to exclude those who do not fall within the workman definition from the Act's application.
If an employed person does not meet the workman criteria as defined in the ID Act, 1947, they cannot seek recourse under the Act for alleged illegal termination. Any claim filed must demonstrate inclusion within the definition clause; otherwise, it will be dismissed. The Tribunal under the Act has the power to set aside termination orders and order reinstatement with back wages and benefits, while the Civil Court can only set aside orders and award damages.
Judicial precedents may not cover every aspect of employment. Therefore, individuals not classified as workmen under the Act must seek remedies for employment grievances based on common understanding alone.