Dear All,
I require an urgent response from all of you. Our company is a Government Contractor and had undertaken a maintenance job at the Odisha Government Unit. Now, our company's job is complete as per the work order, and we have the following queries:
First Work Order Completed
a- In this order, we hired Daily Wage workers from the local area and paid minimum wages plus allowances (allowances demanded by the union, which were not in accordance with the law).
b- All workers worked for less than 240 days (to determine continuous services).
c- We paid a bonus to all workers up to the cap ceiling of Rs. 7000/-
d- The Labor Department verified and issued No dues certificates.
Second Work Order Completed
a- In this order, we hired the same Daily Wage workers from the local area who were with us in the first order, paid minimum wages plus allowances (allowances demanded by the union, which were not in accordance with the law).
b- All workers worked for less than 240 days (to determine continuous services) in this order as well.
c- We paid a bonus to all workers up to the cap ceiling of Rs. 7000/-
Our project has been completed for the last 15 days, and now the Union is demanding the following from our company:
1- Until the receivable Full & Final Settlement (as per the law, the bonus we have to pay is capped at Rs. 7000/- only, nothing more as per statutory law), they are asking for wages to be paid to labor without any work/projects.
2- Requesting Leave wages for all workers by combining the present days of the First Work order and the Second Work order.
3- Asking for Retrenchment Compensation for all workers (as the company no longer has any projects/jobs with the Client-Government).
In My Opinion
- Combining both work orders, Workers/Union cannot claim Leave Wages because in a single order, no one completed 240 working days.
- Combining both work orders, Workers/Union cannot claim Retrenchment Compensation because in a single order, no one completed 240 working days, and there are no projects/jobs between our company and the client.
I kindly request you to respond to my queries above urgently with references to the law.
Thanks,
Pramod
From India, Mumbai
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I require an urgent response from all of you. Our company is a Government Contractor and had undertaken a maintenance job at the Odisha Government Unit. Now, our company's job is complete as per the work order, and we have the following queries:
First Work Order Completed
a- In this order, we hired Daily Wage workers from the local area and paid minimum wages plus allowances (allowances demanded by the union, which were not in accordance with the law).
b- All workers worked for less than 240 days (to determine continuous services).
c- We paid a bonus to all workers up to the cap ceiling of Rs. 7000/-
d- The Labor Department verified and issued No dues certificates.
Second Work Order Completed
a- In this order, we hired the same Daily Wage workers from the local area who were with us in the first order, paid minimum wages plus allowances (allowances demanded by the union, which were not in accordance with the law).
b- All workers worked for less than 240 days (to determine continuous services) in this order as well.
c- We paid a bonus to all workers up to the cap ceiling of Rs. 7000/-
Our project has been completed for the last 15 days, and now the Union is demanding the following from our company:
1- Until the receivable Full & Final Settlement (as per the law, the bonus we have to pay is capped at Rs. 7000/- only, nothing more as per statutory law), they are asking for wages to be paid to labor without any work/projects.
2- Requesting Leave wages for all workers by combining the present days of the First Work order and the Second Work order.
3- Asking for Retrenchment Compensation for all workers (as the company no longer has any projects/jobs with the Client-Government).
In My Opinion
- Combining both work orders, Workers/Union cannot claim Leave Wages because in a single order, no one completed 240 working days.
- Combining both work orders, Workers/Union cannot claim Retrenchment Compensation because in a single order, no one completed 240 working days, and there are no projects/jobs between our company and the client.
I kindly request you to respond to my queries above urgently with references to the law.
Thanks,
Pramod
From India, Mumbai
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Entitlement to Leave and Retrenchment Compensation
It seems that your company engaged the same group of workers consecutively or simultaneously for both projects. This may have resulted in continuous engagement for more than 240 days. Thus, the workers are entitled to leave with wages and retrenchment compensation. However, as per Section 2(oo) of the Industrial Disputes Act, 1947 (IDA), retrenchment is the termination of service of a worker "for any reason whatsoever," but excludes termination by way of punishment inflicted pursuant to disciplinary action, voluntary retirement, retirement on reaching the age of superannuation, continued ill health, and termination of the service of the workman as a result of the non-renewal of the contract of employment between the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein.
Contractual Engagement and Employment Period
Did your company issue appointment letters to the workers for every project separately, specifically indicating the period of employment linked with the project? Analyze the situation based on such contracts of employment and the method of engagement.
Regards
From India, Mumbai
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96It seems that your company engaged the same group of workers consecutively or simultaneously for both projects. This may have resulted in continuous engagement for more than 240 days. Thus, the workers are entitled to leave with wages and retrenchment compensation. However, as per Section 2(oo) of the Industrial Disputes Act, 1947 (IDA), retrenchment is the termination of service of a worker "for any reason whatsoever," but excludes termination by way of punishment inflicted pursuant to disciplinary action, voluntary retirement, retirement on reaching the age of superannuation, continued ill health, and termination of the service of the workman as a result of the non-renewal of the contract of employment between the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein.
Contractual Engagement and Employment Period
Did your company issue appointment letters to the workers for every project separately, specifically indicating the period of employment linked with the project? Analyze the situation based on such contracts of employment and the method of engagement.
Regards
From India, Mumbai
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