Case ran for 2 years in the labor court. The employee won and received subsistence allowance and back wages. Later on, the employer appealed to the high court. The case ran for 3 years, and the employer won the case. If the employer wins the case in the high court against the labor court order, will the employee need to return the subsistence allowance and back wages paid to him?
From India, Bangalore
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1From India, Bangalore
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Understanding Labor Law and Social Justice
No, my dear friend. Labor Law is based on the doctrine of social justice. In labor jurisprudence, the status of the disputants, namely the employer and the employee, is not treated as litigants of equal strength for establishing their respective contractual rights created by their employment relationship. The employer always stands on a higher pedestal because of their superior position as the employment provider, exercising control over the employee in terms of hiring their services, ensuring attendance, methods of work, payment of compensation for cooperation, performance appraisal and rewards, transfer, and infliction of punishments, including dismissal for proven violations of rules of discipline, and so on.
Therefore, certain payments made to the employee in special circumstances under legal obligations cannot be recovered by the employer after the total extinction of the employment relationship. Payment of subsistence allowance to an employee kept under suspension pending inquiry is an indication of the existence of the employment relationship as well as economic assistance to enable the delinquent employee to face the disciplinary trial based on the principles of Natural Justice when they are deprived of their normal earnings.
When the employee's dismissal is set aside in adjudication and reinstatement with back wages is ordered, and if the employer prefers an appeal before the High Court or Supreme Court without reinstating the employee, then only Section 17B comes into play. The success of the employer's appeal will not result in the recovery of the already paid subsistence allowance, back wages prior to the award, and the wages payable under Section 17B.
From India, Salem
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No, my dear friend. Labor Law is based on the doctrine of social justice. In labor jurisprudence, the status of the disputants, namely the employer and the employee, is not treated as litigants of equal strength for establishing their respective contractual rights created by their employment relationship. The employer always stands on a higher pedestal because of their superior position as the employment provider, exercising control over the employee in terms of hiring their services, ensuring attendance, methods of work, payment of compensation for cooperation, performance appraisal and rewards, transfer, and infliction of punishments, including dismissal for proven violations of rules of discipline, and so on.
Therefore, certain payments made to the employee in special circumstances under legal obligations cannot be recovered by the employer after the total extinction of the employment relationship. Payment of subsistence allowance to an employee kept under suspension pending inquiry is an indication of the existence of the employment relationship as well as economic assistance to enable the delinquent employee to face the disciplinary trial based on the principles of Natural Justice when they are deprived of their normal earnings.
When the employee's dismissal is set aside in adjudication and reinstatement with back wages is ordered, and if the employer prefers an appeal before the High Court or Supreme Court without reinstating the employee, then only Section 17B comes into play. The success of the employer's appeal will not result in the recovery of the already paid subsistence allowance, back wages prior to the award, and the wages payable under Section 17B.
From India, Salem
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TAMIMI LAbor LAw.pdf