No Tags Found!


Dear Friends,

Our union workers are demanding the provision of wage settlement agreement benefits to retired workers who retired during the agreement period (Agreement due on 01.10.2014 and signed/effective from 01.10.15). Please share your views on this issue.

Thank you.

From India, Nasik
Acknowledge(0)
Amend(0)

Section 19(1) of the Industrial Disputes Act, 1947, while dealing with the aspect of operations of settlements and awards, reads as follows: "A settlement shall come into operation on such date as is agreed upon by the parties to the dispute and if no date is agreed upon, on the date on which the memorandum of settlement is signed by the parties to the dispute." So, legally, any workman retiring from service on superannuation before the date of signing of the settlement cannot stake any claim for its benefits when its operation is prospective. One can argue that had the delay between the date of expiry of the previous settlement and the date of signing of the fresh settlement been avoided, those workmen leaving their service in the intervening period by the operation of the clause of superannuation would have been benefited. However, it would be untenable in the face of the mention of a specific date of prospective operation in the fresh settlement.

Regards

From India, Salem
Acknowledge(1)
SA
Amend(0)

True, it all depends upon what date was agreed upon in the settlement for it to become enforceable. If it is with retrospective effect (which happens when there is a delay in entering a fresh settlement after the expiry of the previous settlement) and some employees retired during this period, they can have a claim to the benefits of the new settlement.

B. Saikumar

From India, Mumbai
Acknowledge(0)
Amend(0)

Although the signed agreement states that the benefits agreed upon won't be applicable to employees who are retired during the gap period/uncovered period, the point of the gap period for employees would have been discussed during negotiation. Transparency during settlements will enhance trust on both ends; one should not take advantage of another's weakness as it may lead to a "disaster" in the long run.
From India, Mumbai
Acknowledge(0)
Amend(0)

CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.







Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.