Employer And Workman Cannot Override The Statutory Contract Embodied In Certified Standing Order: SUPREME COURT

Contents News/Article Date: 5th August 2023 Relating to which Act: IMPORTANT PROVISIONS: Industrial Employment (Standing Orders) Act, 1946 Section 2 (b) Industrial Employment (Standing Orders) Act, 1946 Section 15 Industrial Employment (Standing Orders) Act, 1946 Applicable to which State: Acts and Rules are applicable to all States Type: Important Judgements - This case involves employment Contracts: Interpretation and Pre-eminence of Certified Standing Orders. Pertains to: Establishments and Employees in all types of Organizations running businesses for profit or non profit In this particular case, Petitioner (s)- Bharatiya Kamgar Karamchari Mahasangh Respondent (s)- M/s. Jet Airways Ltd SUBJECT: Relevance of this news: Karma Management Global Consulting Solutions Pvt. Ltd. one of the top 5 labour law consulting firms in the country, has recently hit upon yet another significant milestone in the journey of tying up SUNDEEP PURI ASSOCIATES AND ADVOCATE, where both these Firms have formally joined hands together to collaborate and create a bigger alliance by scaling up its business on Pan India basis and Internationally to give greater reach of its services together, to its hundreds of clients all over. Sundeep Puri & Associates (SD Puri& Co.) with 55+ years of existence and helmed by Adv Sundeep Puri & Adv Ravi Paranjpe is one of the largest retainer firms in India specializing in “Employment Laws” advising Corporate Sector. The Firm boasts of some clients being associated since the last 55+ years and majority since last 30-40 years. They have extensive experience in counselling Foreign MNCs and Indian MNC Clients having multi-locational Factories &/or Offices Pan-India on a daily basis on a wide range of “Employment & Labour” issues, keeping in view the cultural diversity of the workforce such as Acquisitions, Mergers, Consolidations, Reductions in work force, Maintaining union free environment by not undermining the principles of collective bargaining & also preserving operational flexibility in unionized settings, providing tailor made models for conflict free productivity that is conducive Industrial Environment, as also in respect to applicability of the various labour laws. They believe in Solution oriented Practical Advice backed by Law. On the other hand, Karma Management Global Consulting Solutions Pvt. Ltd. since 2004 is backed by 25 years of prior experience since 1979 , operating on Pan India basis and Internationally in Americas and EMEA, helmed by Pratik Vaidya , is a leading giant in payroll management, compliance and governance, human resource services, professional employment staffing and on boarding, recruitment and talent acquisition, advisory and consultations thereby offering a plethora of services with quick turn-around solutions including in-house flagship AI/ML based tech solutions so as to help organizations of different types and stature to perform better in Human Resource ensuring Risk Management, Compliance and Governance across Environmental, Social and Corporate laws and grow bigger And in this instance ISSUES: Which appropriate authority is authorised by the Industrial Employment (Standing Orders) Act of 1946 (hereafter referred to as "The Act") to issue the standing order(s)? To what extent might a private agreement or settlement between the parties supersede the Standing Order? Judgement Analysis: The Court's ruling establishes a significant precedent and emphasises the importance of the Bombay Model Standing Order as a safeguard for workmen's rights. It supports the idea that, regardless of any contractual or settlement stipulations, labourers should be entitled to permanency after completing a period of 240 days of employment. This ruling highlights the crucial function of labour laws in defending the rights of workers even in trying situations like shifts in governmental priorities or business financial struggles. The Court assures fair treatment of workers and emphasises that labour laws should be respected to protect the welfare of the working class by disallowing any concession of rights under the Model Standing Order. Subject: Employer and Workman Cannot Override the Statutory Contract Embodied in Certified Standing Order: Sc in Bharatiya Kamgar Karamchari Mahasangh V. M/s. Jet Airways Ltd.

Appended is the complete news item

Employer and Workman Cannot Override the Statutory Contract Embodied in Certified Standing Order: Sc

No agreement can override the standing orders. Interpretation is that for example if there is a prohibition in the standing orders that employer cannot transfer employees out of the state, the employer cannot write the term of inter-state transfer in employment letter. Any condition which overrides the Standing Orders would not be valid. Supreme Court Judgment dt 25.07.2023 in Bharatiya Kamgar Karmachari Mahasangh v. M/s Jet Airways Ltd. SUBJECT: This case involves employment Contracts: Interpretation and Pre-eminence of Certified Standing Orders. IMPORTANT PROVISIONS: Industrial Employment (Standing Orders) Act, 1946 Section 2 (b) Industrial Employment (Standing Orders) Act, 1946 Section 15 Industrial Employment (Standing Orders) Act, 1946 BRIEF FACTS: The respondent runs a commercial airline company that transports cargo and passengers. The appellant is representing 169 workmen who were temporarily assigned on a fixed term contract by the respondent company in various works like cleaners, drivers and operator. It is contended by the appellant that despite the permanent nature of work and completing 240 days’ service with respect to Model Standing Order mentioned in Bombay Industrial Employment (Standing Order) Rules, 1959 the employees were treated as temporary workers. Later the Trade Union raised a Charter of demands which resulted in a settlement dating 2nd May 2002. In the charter, the Bharatiya Kamgar Sena gave up their demand of permanency and the settlement deed signed guaranteed many benefits to the employees. The respondent later claimed that the employees are not entitled to permanency as per the settlement agreement between the trade union and the company. The Central Government Industrial Tribunal (CGIT) however, posed the question of whether the Union's claim for the re-employment/reinstatement of these 169 craftsmen with full back wages in its award from March 30, 2017, in response to a referral. The first party's service was fair and appropriate, and it was addressed in the negative. Based on Section 25-H of the Industrial Disputes Act, 1947, it was determined that no retrenchment had occurred because the termination of a fixed-term contract did not constitute a termination as defined in Section 2(oo)(bb) of the same Act. Therefore, the notion of hiring the concerned workers again was out of the question. ISSUES: Which appropriate authority is authorised by the Industrial Employment (Standing Orders) Act of 1946 (hereafter referred to as "The Act") to issue the standing order(s)? To what extent might a private agreement or settlement between the parties supersede the Standing Order? JUDGEMENT ANALYSIS: The Court's ruling establishes a significant precedent and emphasises the importance of the Bombay Model Standing Order as a safeguard for workmen's rights. It supports the idea that, regardless of any contractual or settlement stipulations, labourers should be entitled to permanency after completing a period of 240 days of employment. This ruling highlights the crucial function of labour laws in defending the rights of workers even in trying situations like shifts in governmental priorities or business financial struggles. The Court assures fair treatment of workers and emphasises that labour laws should be respected to protect the welfare of the working class by disallowing any concession of rights under the Model Standing Order.

Explore the knowledge archive