Understanding Worker vs. Management Roles: How Do Labor Laws Affect Their Rights?

Dear Members,
What is the difference between workers as defined in labour laws from non worker or management & staff category in terms of working conditions, benefits and separation/termination from service. What steps could be taken from the beginning of employment to avoid the first contention in litigation – denial by employer of the employer-employee relationship.
Khalil ur Rehman

Classification of Employees: Workers vs. Non-Workers

A simple classification is that an employee who has no reportee under them is a worker, whereas an employee who has at least one reportee under them is a non-workman or supervisory employee.

Most of the new-gen companies call their employees associates/partners or give them positions like Assistant Managers with a view to keep them away from the purview of labor laws, i.e., the Industrial Disputes Act. However, in reality, by labeling employees as associates, partners, or managers, they do not automatically become supervisors; it is the function and authority that determine whether a particular employee is a worker or not. For example, a pilot is considered a workman even if their salary exceeds 3 lakhs per month because administratively, no one reports to them.

At the same time, if a pilot is given the right to approve leave for their subordinates, evaluate their performance, or initiate disciplinary action against employees, they can be classified as a supervisor.

Employee-Employer Relationship

If someone is working for you, you cannot deny an employee-employer relationship. To be very frank, I am not an anti-worker personnel manager! In my opinion, whatever is available to them should be given to them. No strategic HR can give you proper advice on how to keep the employees away from their rights. Many think that by giving them a fancy designation like managers, you can make them non-workers. No, that is not correct. You cannot run a business without workers, and that is true. Therefore, if you expect that I will provide a solution to create a policy where employees working for you have no employee status, I am sorry.