Missing Clauses in HR Documents: How Can They Lead to Future Disputes and Confusion?

Implications of Missing Clauses in HR Documents

In HR practices, the inclusion of specific clauses in appointment letters and standing orders is crucial to establishing clear guidelines and expectations for both the employer and the employee. The absence of a clause regarding 'Retirement (Superannuation) Age' in an appointment letter can lead to ambiguity and potential disputes in the future regarding the retirement age of an employee. Similarly, the lack of a 'Transfer' clause in Standing Orders may result in uncertainties and challenges when it comes to transferring employees between roles or departments within the organization. It is essential for organizations to ensure that these important clauses are clearly defined and communicated to avoid misunderstandings and legal issues down the line.

Normally, a standing order will contain these two important clauses, and I am concerned about how the certifying officer certified it without the superannuation clause and transfer clause. If the Standing Orders (Certified) do not contain the age of superannuation and transfer of employment, the same can be incorporated by means of an amendment to the Standing Orders. The same has to be certified by the appropriate authority as well. The process involves the same steps followed for certification.

Alternatively, you can publish a notice under Section 9A of the Industrial Disputes Act incorporating the retirement age and transfer clause. But under normal circumstances, it will likely be rejected by the workers. Upon rejection, the matter will obviously proceed to conciliation or even adjudication. Since the mistake was not committed by the workers but by the employer themselves, the latter should involve the workers/employees in the decision-making process.

Retrenchment and Termination Concerns

If the age of superannuation is not mentioned in standing orders, appointment orders, or by Section 9A of the ID Act, then the termination of workmen at an age decided by the employer will attract retrenchment clauses or be considered illegal termination.

Retirement Age and Standing Orders

The retirement age will be 58 for being a member of EPF in the absence of a retirement clause in an appointment letter. It is not a big problem if the age of retirement (superannuation) mentioned in standing orders shall be considered final. Furthermore, the management can also amend the age of retirement at a later date by issuing an amendment to the appointment letter.

Transfer Clause in Standing Orders

The company cannot transfer an employee if there is no clause in the Standing Orders. In many cases, clauses are omitted due to copy-paste situations and get certified unscrupulously.

Any suggestion depends upon the law as well as the regulation governing the service conditions. Who is the employer? Is it the Government or its undertaking? Or, is it a private sector firm?

Independent Clauses in Employment Contracts

The two clauses are completely independent of each other.

Retirement Age Clause

Not having a retirement age in the appointment letter is not a big problem. Many companies do not have it. It will then be as per the Standing Orders of the company. If there is no retirement age in the Standing Orders (which would be rare), then the retirement age in Model Standing Orders will apply.

Amending Employment Terms

Even otherwise, it should be easy enough for the company to issue an amendment to the terms of employment to communicate it to the workers.

Transfer Clause

If there is no transfer clause in the standing orders (and I am assuming it is not mentioned in the appointment letter either), then the employee cannot be transferred to another location or branch unless the worker accepts the same.

If you fear so much about it, why don't you issue a general circular for the attention of all? You can even address such a circular individually and ask them to return one copy with their 'acceptance' signature. I don't anticipate any problem forthcoming from the employee if the superannuation age is commonly applicable to all employees.

Alternatively, compile a revised Terms and Conditions of service, a complete charter, and circulate it; place it on the notice board. If the Standing Order is in vogue, suitable amendments may be processed and approved. I don't think you'll have any problem on this account.