Shifting of Employees
Jaydeep Kurup
(Querist) 17 March 2009
This query is : Resolved
A company wants to shift its employees from Mumbai to Surat.
1. Whether any mandatory allowance needs to be paid.
2. Whether the company can compel the employees to shift, if there is an enabling clause in the appointment letter. Can the company terminate, if certain employees do not agree.
Pls clarify.
PALNITKAR V.V.
(Expert) 17 March 2009
Do you mean that the entire unit is being shifted or is it in the nature of transfer. If it is in the nature of transfer and the employment letter does not prohibit it, then the employee can be transferred. If he is not willing to join the new posting(assuming that there is no prohibitory clause) then he can be terminated. An employee has no right to ask for retention at a particular place unless his terms of appointment say so. There is no law which makes it mandatory to pay allowance every month in case of transfer.
KODAKKAL SHIVAPRASAD
(Expert) 17 March 2009
if concerned company having good profit then it certainly pay special allowance like TA/HA while in shifting their office from one state to other state, but in my opinion i do not know whether any company insist such clues in their appointment letter issued prior to joining duty as it is not good practice at that stage.
H. S. Thukral
(Expert) 17 March 2009
Transfer is an implied condition of service unless the terms of appointment specifically prohibit it. Where it appears that transfer is a malafide or is being effected to punish an employee it can be challenged but in your case it appears that company is starting a new unit and employees are being shifted. In one of case perhaps Calcutta High Court observed that employee can not be transferred to a unit at a different place which came into existence after the joining of service by such an employee. The argument was that when an employee joined a particular company, he considered the places where the company units operated and probablities of transfer to such units but a unit at a new place was out of his contemplation. I am not aware if this law holds good now. But Courts now a days are not encouraging challenges to transfers by the employees.
Guest
(Expert) 18 March 2009
I totally agree with Mr. Palnitkar and Mr. Thukral.
I also say that sometimes, some establishments to escape the mandatory stipulated conditions of "closure" in the I.D.Act, adopt the tactics of "shifting" or "mass transfer". If that is so, those transfer orders or shifting orders, on the face of them appear to be legal but are not justifiable and are malafide and can be challengable in the court of law.
A. A. JOSE
(Expert) 18 March 2009
I agree with all above viewpoints.
Hiralal Das
(Expert) 04 April 2009
I agree with the opinions of my learned members friend. You may follow them which should the proper ways to solve the problem.
