Dear all, Is any rule there in labour acts for pay revision for MNC (400crores business) company located in Visakhapatnam.
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If there is a trade union active in your industry and it gives notice of change seeking pay revision, then you will have to commence the negotiation and aim for settlement. Failing which, the mandatory process of conciliation followed by adjudication is possible as per the Industrial Disputes Act 1947.
From India, Mumbai
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1593From India, Mumbai
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Understanding Wage Revision and the IT Sector's Position Under the ID Act
To my knowledge, there is no act prescribing timely revision of wages except under the Payment of Minimum Wages Act, which ensures that all are paid at least the minimum wages published by the respective governments from time to time. I presume the MNC firm in Delhi, belonging to a friend, is in the IT sector. Based on this premise, there could exist a doubt in their minds as to whether they are covered under the ID Act or not.
There has been a general feeling that the IT sector is not a designated 'industry' and therefore, they are not entitled to the rights of a 'workman' as promised in the ID Act. Please read on:
"The government of Tamil Nadu in India has recently issued a circular clarifying that employees of the IT Sector are covered under the ID Act, 1947, and have the right to form trade unions. This development has caused consternation in industry circles, which believed that the IT Sector was outside the ambit of this Act. Obviously, for some reason, the IT Sector has been misinformed of the correct position under the law.
In the current state of the controversy, it is necessary to illuminate the rights of the employees and the correct legal position. Except for supervisory or managerial level employees, all other employees are considered as 'workmen' under the ID Act if they perform any manual, skilled, unskilled, technical, operational, and clerical work. Even as recently as 2016, the Supreme Court in Raj Kumar Vs Director of Education reiterated that its leading judgment in H.R Adyanthaya Vs. Sandoz (India) Ltd. in 1994 is decisive on the issue of who is a 'workman' and succinctly restated the ratio that 'a person to be a workman under the ID Act must be employed to do the work of any of the categories, viz., manual, unskilled, skilled, technical, operational, clerical, or supervisory. It is not enough that he is not covered by any of the four exceptions to the definition. We reiterate the said interpretation.'
Clearly, no detailed argument is necessary to establish the proposition that an IT Professional performs a skilled function and is a workman. Only IT employees employed in supervisory or managerial roles would be exempt from the application of this Act. No doubt there are decisions of the Supreme Court that were decided on the unique facts of the case and have caused some confusion on the issue, hence the need to restate the Court's latest reiteration of the law to dispel any doubt that the IT Sector enjoys no exemption from the law. Therefore, to avoid litigation and much acrimony with employees, lay-offs, retrenchments, and terminations of employees must be in compliance with the requirements of the ID Act." (Source: http://www.mondaq.com/india/x/503158...ct+ID+Act+1947)
We are learning that trade unions/associations are being formulated in the IT sector, not only in Tamil Nadu but also in other states. Therefore, the time is not far when red flags will be installed in front of granite-laden complexes, and we may hear chants of 'inquilab zindabad' in the country.
From India, Bangalore
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To my knowledge, there is no act prescribing timely revision of wages except under the Payment of Minimum Wages Act, which ensures that all are paid at least the minimum wages published by the respective governments from time to time. I presume the MNC firm in Delhi, belonging to a friend, is in the IT sector. Based on this premise, there could exist a doubt in their minds as to whether they are covered under the ID Act or not.
There has been a general feeling that the IT sector is not a designated 'industry' and therefore, they are not entitled to the rights of a 'workman' as promised in the ID Act. Please read on:
"The government of Tamil Nadu in India has recently issued a circular clarifying that employees of the IT Sector are covered under the ID Act, 1947, and have the right to form trade unions. This development has caused consternation in industry circles, which believed that the IT Sector was outside the ambit of this Act. Obviously, for some reason, the IT Sector has been misinformed of the correct position under the law.
In the current state of the controversy, it is necessary to illuminate the rights of the employees and the correct legal position. Except for supervisory or managerial level employees, all other employees are considered as 'workmen' under the ID Act if they perform any manual, skilled, unskilled, technical, operational, and clerical work. Even as recently as 2016, the Supreme Court in Raj Kumar Vs Director of Education reiterated that its leading judgment in H.R Adyanthaya Vs. Sandoz (India) Ltd. in 1994 is decisive on the issue of who is a 'workman' and succinctly restated the ratio that 'a person to be a workman under the ID Act must be employed to do the work of any of the categories, viz., manual, unskilled, skilled, technical, operational, clerical, or supervisory. It is not enough that he is not covered by any of the four exceptions to the definition. We reiterate the said interpretation.'
Clearly, no detailed argument is necessary to establish the proposition that an IT Professional performs a skilled function and is a workman. Only IT employees employed in supervisory or managerial roles would be exempt from the application of this Act. No doubt there are decisions of the Supreme Court that were decided on the unique facts of the case and have caused some confusion on the issue, hence the need to restate the Court's latest reiteration of the law to dispel any doubt that the IT Sector enjoys no exemption from the law. Therefore, to avoid litigation and much acrimony with employees, lay-offs, retrenchments, and terminations of employees must be in compliance with the requirements of the ID Act." (Source: http://www.mondaq.com/india/x/503158...ct+ID+Act+1947)
We are learning that trade unions/associations are being formulated in the IT sector, not only in Tamil Nadu but also in other states. Therefore, the time is not far when red flags will be installed in front of granite-laden complexes, and we may hear chants of 'inquilab zindabad' in the country.
From India, Bangalore
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