Labour courts see surge in lay-off cases

Chennai

While many states have brought changes to the Industrial Disputes Act which favours the companies and leaving the employees with fewer rights, advocates anticipate the increase in the number of cases in labour courts.

Incidentally, a Labour Court in Chennai has passed 10 significant judgments mostly favouring the employees in last one week. From Ashok Leyland, UKL Instruments Pvt Ltd to Eveready Industries India Limited, all were directed to pay compensation ranging from Rs 60,000 to Rs 5 lakh for terminating their employees for one reason or other.

Take the case of Eveready Industries, a household brand for batteries. Thanveerulla Sherif filed a petition requesting the court to set aside the illegal termination and to direct the company to reinstate him with full back wages and other consequential benefits.

Recording the submissions, First Additional Labour Court Presiding Officer N Venkatavaradan said, “This court is inclined to award some compensation instead of the relief of reinstatement with back wages and other benefits. Considering his service for 23 years, the company should pay Rs 5 lakh damages.”

In the case of Ashok Leyland, the court directed compensation of Rs 4 lakh to an employee terminated for alleged misconduct at its Foundry Division.

When asked about the legal recourse for people forced out or fired without severance pay, Advocate Balan Haridas said, “Employees can file a case under section 2(A) of Industrial Disputes Act and section 41(2) of TN Shops and Establishment Act among others. Such employees should move the labour court within three years. Even forced resignation can be contested as a termination.”

“Given the pandemic situation and layoffs, the labour court may see a large number of cases relating to the Industrial Disputes Act. We should try for an amicable solution and move court only if the mediation fails. Further, there is no significant apex court judgment to rely on disputes between industries and employees during the pandemic,” he added.

Advocate Nagasaila, who specialises in labour laws said, “There are many laws to safeguard the workers. But it is not being implemented by the government. Be it workers or TUs, they are also not coming forward against the management fearing victimisation in future.”