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prathapachandran (advocate)     17 July 2010

retrenchement

the entire staff in a charitable society constituted by the kerla kadhi and village industries board was retrenched without followint the proceedure. the organisations asstets and liabilites were taken over by khadi board kerala. the labour court fount that retrenchment was illegal and ordered compensation. does the retrenche workers have a right for reinstatemtn in kerala khadi board in wich the societies asstes weere merged./ taken over . the society was fully controled by kerla khadi board and consttituted with approval of governemnt is ther any case law similar to this


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 2 Replies

H. S. Thukral (Lawyer)     17 July 2010

In Industrial law ( Industrial Disputes Act ) Section 25 under various sub-heads deals wth retrenchment, closure and transfrer fo undertaking. Retrenchment is a termination of service for whatsoever reasons. In earlier cases the SC held that workers terminated on closure or transfer of undertaking were not retrenched and hence no compensation as per section 25 F was payble . Therefore section 25 FF and 25 FFF were introduced in the ID Act so that the workers could be paid compesnsation as if they were retrenched. However subsequently view was changed while interpreting the definition of retrenchment that is retrenchment is termination of service for whatsoever reason except for reasons stated in section 2(OO)

In your case it is to be seen who retrenched the workmen. The earstwhile employer or the the employer who took over assests and liabilities. If the employees were retrenched by the transferee then you can seek reinstatement. However if the employee were retrenched by the transferor in consequence to the closure then workmen shall be entitled compensation as per section 25F.

Shreyas Zinjarde (Advocate/Consultant)     17 July 2010

If the rertrenchment is held invalid and reinstatement is granted,and that the same project is takenn over, before taking any action plese find out as to what documentation was made. Whether the party taking over the project is made aware of the entire litigation?


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