Understanding Section 17B of the ID Act: Does It Apply to Monetary Awards Challenged in High Court?

Dear Sir, Is section 17B of the ID Act, 1947 applicable when the judgment delivered by the labor court is in the form of a monetary award (a lump sum of approximately 5 lakh in place of reinstatement) which has been challenged by the employer in the High Court and is still pending?

Regards, Birendra

Section 17B applies only to directions to the employer that require the employer to reinstate the worker. If the order is to pay a lump sum, an appeal can be filed by depositing the necessary percentage of the amount, which may be up to 75% of the amount ordered by the tribunal.

Dear Birendra,

Applicability of Section 17B of the ID Act 1947

Section 17B of the ID Act 1947 should be applicable even in the matter of lump-sum payment in lieu of reinstatement. The issue is that our people interpret only the words, not the meaning. In present days, courts mostly grant a lump-sum amount instead of reinstatement. Ask your advocate to review the order of five lakh and request monetary compensation by calculating the loss of pay until the date of retirement if reinstatement is not possible.

Dear Madhu Sir, Please share the section of the ID Act through which it is mandatory to deposit 75 percent of the total monetary fund before going to challenge in the High Court against any Labour Court judgment if the LC judgment is delivered in monetary form in favor of the workman instead of reinstatement.

Regards, Birendra

I didn't say that the ID Act specifies that to appeal against the order of the Labour Court, 75% of the sum should be deposited. I only mentioned that it shall be the "required percentage" and may even be 75%. Normally, for any appeal against the order of a lower court involving financial commitment, the deposit of 75% of the amount is required.

Dear Mr. Birendra,

The court sets the conditions prior to an appeal for the order passed by the court. No, there is no prior deposit required before filing an appeal against Section 17B of the Industrial Disputes Act (IDA) of 1947. However, the employer may be required to pay the employee full wages while the appeal is pending.

Explanation

Section 17B of the IDA requires employers to pay full wages to employees while an appeal is pending in the High Court or Supreme Court. This is applicable when a Labour Court, Tribunal, or National Tribunal orders the reinstatement of an employee. The employer must pay the employee's last drawn wages, including any maintenance allowance. The employee must file an affidavit stating that they were not employed during the relevant period. The court may order that no wages are payable if it is proven that the employee was employed and received adequate remuneration during the relevant period.