Labour & Employment in India

As per the Indian Legal system, the terms “worker” and “employee” are different in nature and hence, the remedies provided by the law also varies for both. In the discussion below, we shall discuss the remedies available to workers and employees and the different rules of termination for the employees in India.

Which authority has jurisdiction in cases related to employment or labour issues?

The jurisdiction of the cases for remedies in such cases depend upon the type of right which has been infringed. Say for example, for a matter on the termination of the employment there was a wrongful forfeiture of the gratuity. For remedy in these cases, the appropriate forum for deciding this case shall be the one established under the gratuity regulations.
When determining an appropriate jurisdiction in the case of workers, the Apex Court held that-
If the dispute is not an ‘industrial dispute’ nor is it related to the enforcement of rights granted under industrial laws, civil courts will have jurisdiction.
If the dispute is an ‘industrial dispute’, but if the remedy sought does not come under the ambit of the industrial law, but common law, civil courts would have the jurisdiction over such cases.
In an ‘industrial dispute’, the remedy is sought under industrial law, the civil courts would have jurisdiction.
In the above mentioned instances, the term industrial dispute shall include the disputes arising out of discharge, dismissal or retrenchment of the workers.

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Reinstatement or Specific performance in the case of employees and workers-

For employees, Indian law is clear on the issues of the specific performance of the employment contracts or the matter of reinstatement itself. Under the Specific Relief Act, 1963, in the matter of private employment, even in case there is an illegal termination of the employees in India, he would only be able to demand compensation/ damages and relief as per the specific performance of the contract could not be demanded as-

The employment contract is on a personal service
The contract shall be determined by providing a prescribed period’s notice.

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In case of Workers

If a worker is fired from a job because of a reason, it was decided by the courts that the termination order would be set aside only if the termination was not according to the cause or in case the enquiry done by the employer was not fair.
If the employee secured employment through false representation, the courts held the termination as just.
In a similar manner, the decision of termination was held just by the courts in a situation where the employee engaged in misappropriation or had displayed habitual absence from his job. In such cases the enquiry before the dismissal was held as just.

Damages

For employees According to the law, the quantum of damages paid must be in accordance with the context of the employment agreement. In S.S. Shetty v Bharat Nidhi Ltd, The Supreme Court decided that the employment contract expressly terms that the termination would be carried out by a prior notice of 1 month, the damages awarded would be ordinarily up to a month’s salary. Therefore, the courts have only awarded the salary for the notice period and denied any damages to be paid for the further period of unemployment beyond the stipulated notice period.

For workers

As has been mentioned above, the quantum of damages should be based on the fact as to whether the damages are paid instead of the reinstatement or in addition to the reinstatement.

In each case, the relevant facts shall be considered before deciding upon the damages required to be paid.

Conclusion

The labour law in India is quite vast, and has provided provisions for various matters involved with the labour law. Hence, for this reason, it is advised that you seek legal advice from an experienced labour lawyer for matters related to the employment contract or any other work issue.