Can a Worker Still Involve the Labour Department After Legal Notice and Response Over Job Termination?

Can an employee approach the Labour Department after sending a legal notice which has been duly replied to regarding the termination of his temporary employment after the completion of his term and inadmissible medical claims after about one year?

Background of the Employment Issue

An employee was appointed as a temporary employee for one year (ASTHAI NIYUKTI). After completing his term, he was not given further employment. He served a legal notice after one year of completing his term of appointment. A reply to the legal notice was provided. Instead of approaching the Labour Court, he submitted a complaint at the Chief Minister's Window. As a result, the Labour Department has sent a notice to the company to appear and reply regarding the worker's complaint.

Questions Regarding Labour Department's Actions

1) Can the Labour Department take cognizance of the complaint when a detailed reply has already been sent in response to the employee's legal notice?

2) When the employee has already taken legal action instead of seeking conciliation, can the employee now approach the Labour Department?

Dear Raj,

Replies to your questions are as follows:

Can the Labour Department take cognizance of the complaint when a detailed reply has already been sent by way of a reply to the legal notice of the employee?

Reply: Even if the employee serves the notice to the employer before approaching the labour office, the labour officer has to consider the matter that comes to their table. While the labour officer is a government functionary, the lawyer is a professional who works in a private capacity. The rebuttal given to the lawyer could come in handy while giving a reply to the labour officer. By the way, the labour officers use their discretion, and their decisions are not necessarily against the employers. Even if the labour officer rules against the decision of the employer, and the employee approaches the labour court, you can defend your case.

When the Employee has already adopted a Legal course of action instead of conciliation, can an employee approach the Labour department now?

Reply: The employee has just served a lawyer's notice. The employee has not filed a suit against the company. The receipt of the notice cannot become an impediment to the conciliation. You can approach the employee for reconciliation even now. Nevertheless, if your company has followed a proper legal process, then what is there to reconcile?

Final comments: You have approached this forum with your questions. However, I wish you had given background information on the case. You have mentioned that the employee was employed as a temporary worker for one year. Did your company issue an appointment letter to the company, and if yes, what were the employment terms and conditions?

Second, how was the employee communicated that his employment would be discontinued? Do you have proof of communication?

Third, in the first paragraph, you say that the employee has raised inadmissible medical claims. But before discontinuation of the employment, and during the Full and Final Settlement (FFS), did your company obtain a signature from the employee stating no claims were pending with the company?

Thanks,

Dinesh Divekar

Legal course of action vs. conciliation

Legal action is distinct from conciliation. You have only responded to the notice sent by the employee through an advocate. The Labour Department is unaware of it, and even if it is made known to them, they can proceed with the complaint given by the employee. It may not be maintainable because if the terms of appointment provide for a fixed term, then the employee cannot claim an extension or regularization. If the employee is not fit for work, nobody can advise you to hire them. However, the process should be followed.

Appearing before the Labour Department

Therefore, you should appear before the appropriate officer in the Labour Department and produce the document to establish that the employee was appointed on a fixed-term contract (FTC) for one year, which would automatically terminate without any communication. However, ensure that you have not issued any stigmatic order to terminate them. A simple service order stating that they have been relieved from service following clause No.....of the appointment order would be sufficient to discharge them. If you included unnecessary reasons like non-performance or submission of inadmissible medical bills, the order will become stigmatic, and you may have to defend it.

In case of any termination, the legal recourse available for a workman is to raise an industrial dispute under the ID Act before the Conciliation Officer. Whether a temporary workman can raise an industrial dispute or not is altogether a different question. It is based on the terms and conditions and various other extenuating factors. Serving a legal notice and replying to the said notice do not matter; it will have no impact at all. The Labour Department, on receipt of a letter from the CM Cell, has the power to take action against the same by summoning the employer. We need to see the facts and circumstances of the case, as Mr. Madhu mentioned.

Conciliation Process with the Labor Department

No one can stop the actions of an aggrieved person. Whether it's maintainable or not is a different question. If you are called for conciliation by the labor department, you (or your advocate, if permissible) have to appear and present your side of the arguments. Much would depend on the documents in support of your stand.