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change of service enviroment by employer

Querist : Anonymous (Querist) 06 November 2009 This query is : Resolved 
I am serving National ins. co. as a dev. officer in 2004 our co. made direct tie up with financial instt. like banks,motor dealers etc. The impact of it is a curse for us as we have no field left from where we can fetch premuim. As our job is like a contract so co.is now deducting our allowances & increaments. My queries as below.
1. The step of tie ups by the co. is legal without informing us?
2. Can co. deduct our allowances & increments when there is no fault on my side?
3. Can I challenge the co. for making these changes in any court?
Kiran Kumar (Expert) 06 November 2009
you can not challenge it.

u are working on contract basis (as u said) as an empployee only, and your job is absolutely as according to contract only.

u r not a member of Board of Directors, so as far as policy matters are concerned you have no locus standi to challenge the same.

H. S. Thukral (Expert) 06 November 2009
My opinion is as follows:
Development Officer in one of the judgments of the Supreme Court are held to be workmen. The action of the Insurance Co. tantamount to a change of service conditions which requires a notice/legal procedure under section 9A of the ID Act. If you have union of Dev officer then raise an industrial dispute through it.
Sudharsan.m (Expert) 06 November 2009
I agree with Mr.Harbhajan, however even then during the tie ups previous company employees no way should get affected according to their old contracts, if yes, then they can challenge before the High Court under Article 226 of the constitution through PIL on behalf of employees even if you dont have locus standi as said earlier by our learned collegue.
Also National Insurence Company is a Govt Undetaking company,it is state under constitution of India, therefore you can challenge by invoking Special Original Jurisdiction, if you approach service lawyer, you can get all remedies before the court with retrospectively.
Raj Kumar Makkad (Expert) 06 November 2009
I differ with the opinion of Harbhajan n Sudarshan on the ground that there is no change of service condition of the development officer if their employer makes direct ies ups with some other company etc. just for their business purpose. The employees/say contracted labour has got not locus standi to challenge the action of their master.

The company might have given some targets to be achieved monthly or yearly and if any employees fails to achieve those, the employer is rightly entitled to deduct the remuneration connected with the targets and no such employee can challenge such legally enforceable agreement thereafter.
niranjan (Expert) 06 November 2009
I agree with Makkadsir.


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