Settlement reached in court. applicability to all the workers.
Querist :
Anonymous
(Querist) 27 January 2011
This query is : Resolved
Some 85 workers of the company filed a case of recovery in labour court on closure of the company. The company was a sick company and reached a settlement at the around 25 % of total demand in the court. the workers present on the day of settlement in the court and representative of Management signed and their advocates signed the settlement in the court. Accordingly 65 workers accepted the payment as per the settlement. However, 20 workers did not accept the payment and filed a separate suit for recovery in same labour court.
The Query: whether some workers about 20% of total strength of workmen can file such application when majority of workers have accepted the settlement ? in fact they were part of the original suit.
I hv read some yrs back that Supreme Court has ruled that when such settlement is signed in court and majority (more than 75%) of workers have accepted the same, the remaining workers have to accept that settlement.
Pl throw light on the above siting any case law, more particulary from HC or SC to decide in the matter
Kirti Kar Tripathi
(Expert) 27 January 2011
The answer of this question is depends on certain conditions. In case, there exist any union in the industry and the settlement was arrived between said union and management during the course of conciliation proceedings, the settlement is binding to each employee. In case settlement was arrived between union and management outside the conciliation proceedings and was presented for registration, the the conciliation officer is bound to asked objection on it, if is remained unchallenged, it is binding to all workman, otherwise it is binding to those workman, who are member to that particular union, which was party in settlement. In case a workman, who is member of any union, which not party, the settlement is not binding to him.In case, any workman accept benefit under the settlement, he can not challenge the settlement on the ground that he or the union to which he is member was not party to settlement. But in case, the workman are entered into the settlement in individual capacity, the settlement is binding to those workman only. rest of the workman are not bound by the settlement. But in the present case, the question relates with payment of closer compensation, which statutory rights of workman, any settlement contrary to the provisions of close compensation will not be binding to any party as no settlement can defeat the provision of law.
Querist :
Anonymous
(Querist) 31 January 2011
Dear shri KK Tripathiji,Thank you very much for response.
There was no union in the factory. All the individual workers filed the case collectively.
the 20 workers now opposed to the settlement has approached local union and has filed cases individually. Union has nnot filed case.
In The settlement terms one of the clause states that settlement amount includes all the dues i.e. closure compensation, gratuity, leave balance and other outstanding dues of the workers. This was accepted by the workders.
Trust based on above further u can throw further lights on the case position.
Kirti Kar Tripathi
(Expert) 31 January 2011
In this eventually the settlement will be binding on those who has signed the settlement and also to workman, who have received benefits under the settlement. The settlement will not be binding to other workman who did not sign the settlement or have not received benefits under the settlement.
Kirti Kar Tripathi
(Expert) 31 January 2011
In this eventually the settlement will be binding on those who has signed the settlement and also to workman, who have received benefits under the settlement. The settlement will not be binding to other workman who did not sign the settlement or have not received benefits under the settlement.
Querist :
Anonymous
(Querist) 04 February 2011
Thank you Tripathiji,
I will revert back with more input on the case filed by workers who hv not signed the settlement
