Dear Colleague,
The Said driver was engaged continuously from the year 2004 it seems from your write up. From 2011 he was covered under PF and then he continues till date without any appointment order. This is basically a system to be relooked for review and refine the system if any more Personnel are working like this. The organization may take the drivers off-role through contractors which is an effective way to manage the Role instead of having On-Roll Drivers. This is widely practiced and through the contractor you may do all compliances which is hassle free.
Coming to the present Driver it is presumed that the organization had a practice of paying salary directly to him by voucher or other modes. From the given details it is better to pay and close the matter with all magnanimity as some one should not work without any order of appointment or clarity on what is his status in the organization for a long time.
Under such circumstances:
1. Gratuity to be paid for the total service based on the BASIC +DA if any at the rate of 15 days of wages for every completed year of service
2. Kindly examine whether you paid the " personal allowance" in lieu of DA or it is totally independent and the purpose is different. In such case take call carefully to exclude.
3. Gratuity is payable only on BASIC+ Dearness Allowance if any as of now under the present Law.
Sec 2 (s) “wages” means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employments and which are paid or are payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance.
You need to take call after examination on the component " Personal Allowance"
4. With regard to the Retrenchment Compensation it is payable under the Industrial Disputes Act 1947. Here there are notices to be served and compensation is payable based on the balance service remaining for the subjected driver. Here better you consult a Labour Law Consultant and then decide the course of action as there are provision to send notices to the authority, notice to Trade Union if any and compensation worked out for the remaining service ( balance service of the driver) considering the 2 important definitions- Wages & Workmen as given below :
2(gg) (rr) 4 " wages" means all remuneration capable of being expressed in terms of money, which would, if the terms of employment, expressed or implied, were fulfilled, be payable to a workman in respect of his employment or of work done in such employment, and includes--
(i) such allowances (including dearness allowance) as the workman is for the time being entitled to;
(ii) the value of any house accommodation, or of supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of food- grains or other articles;
(iii) any travelling concession;
(iv) any commission payable on the promotion of sales or business or both;]
but does not include--
(a) any bonus;
(b) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the workman under any law for the time being in force;
(c) any gratuity payable on the termination of his service;]
2(s) " workman" means any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and for the purposes of any proceeding under this Act in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute, or whose dismissal, dischasrge or retrenchment has led to that dispute,
but does not include any such person--
(i) who is subject to the Air Force Act, 1950 (45 of 1950 ), or the Army Act, 1950 (46 of 1950 ), or the Navy Act, 1957 (62 of 1957 ); or
(ii) who is employed in the police service or as an officer or other employee of a prison; or
(iii) who is employed mainly in a managerial or administrative capacity; or
(iv) who, being employed in a supervisory capacity, draws wages exceeding 10,000/- rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature.
The analysis shows that he is deemed to be a Workmen under ID act and all his components to be taken into account for Retrenchment Compensation working.
Caution: Retrenchment is a trick subject and depending on the number of workers employed in your organization Chapter VA or VB will apply and there are pre-conditions applicable like Notice/ Approval/ Payment of Retrenchment compensation all in single go etc. Hence suggest if you really want to take this route then consult a Labour Law Practitioner then do.
Other best alternate is that you may try to convince the driver briefing the justification and try to put on VRS like proposal so that he will also go happily and there will be no Dispute later on.
Suggest that give the driver a good payment reasonably worked out and take it like resignation on his own accord.
The final option is that no workmen can deny accepting " transfer" if it is on genuine ground and it is the prerogative of the employer. If you have vacancy elsewhere under same employer, then no harm in transferring him to that place. However kindly regularize his service properly with an order officially at least now. Otherwise every chance that he wins in an ID later on if arises.
Overall kindly take a calculated risk and close the case and look and review such systems and streamline
All the Best, God Bless,
Dr.P.SIVAKUMAR
Doctor Siva Global HR
Tamil Nadu