Todays burning topic is hire and fire. Everybody is talking and debating whether this policy should be implemented or not, but do we realize that this policy is already applicable to one set of employees segregating them from others. Officers of the private sectors who are not covered by the Industrial Disputes Act , 1947, no specific
act or forum is applicable to them .They can be hired or fired anywhere, any time any moment. They have no relief from any specific forum like other set of employees.
We may divide whole employment in three main segments : -
Pure Government employees
Employees who are working in Corporations\Autonomous bodies and are under the control of different ministries
Employees of the private sectors.
There is a specific forum for Government employees .They can approach an administrative tribunal regarding any matter in connection with service conditions employment. Jurisdiction of writ petition is also available to them.
The officers of the Corporations who are not covered by the I.D.Act,1947 can also invoke writ jurisdiction .The class three and four employees are covered under Industrial Disputes Act,1947, and can approach the Labour Court\Tribunal through appropriate procedure . Labour Courts and Tribunals are semi-judicial courts and are supposed to deliver quicker and faster judgement in the form of an award which is non appealable .
The class three and four employees (without going into the complication of coverage of workman ) of private sector too are covered by I.D. Act , 1947 and can approach the Labour court for relief by way of award. If we see employment in all the sectors there is only one class that officers of the private do not have any specific remedy. They can be discharged form the services anywhere, any time, any moment .They can only approach the Civil Courts for breach of contract for damages . The procedure is very lengthy and time consuming as it is a well known fact.
This step-motherly treatment to the officers of the private organizations segregating them from the fraternity of other employees and gives them a feeling of insecurity and instability which is neither in the interest of the employees , employers nor in the interest of the company.
This is the part of the intelligensia of the country who serve private sector as officers throughout of their employment remaining insecure therefore in the knowledge that their full energy is not utilized.
I remember an incident when the General Manager of a shoe company called me one morning saying that his company’s A\C car was missing, and when he went to the factory to inform the management he found that the company had picked up the car at the previous night. He was stopped on the gate and was served a termination letter by the security guard . He was very disturbed and wanted to know what remedy was available to him for relief.Unfortunately , I had to answer - go to the civil court.
In another incident a very senior officer of the company arriving at work was stopped at the gate . His car keys were taken by the security guards and he was not allowed to enter the premises . Later on , he was informed by the management that his services were no longer required . No notice was given and no legal dues were ever paid to him . This atmosphere of insecurity prevents the officers from using their initiative and energies to the optimum - instead making them busy for a better jump in search of stability and security which comes only through financial gains. In this case the basic fragment of mutual trust and cooperation remain disturbed which does not allow for healthy relationships to develop for longevity in the workplace, which ultimately effects the productivity of the organization in particular and the country at large.
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On 31 December 2015 the President gave his assent to certain amendments to the Payment of Bonus Act, 1965. The amendments have increased the wage threshold for determining applicability of the Act from INR 10,000 to INR 21,000 per month.
The Payment of Bonus Act, 1965 provides for the payment of statutory bonus to eligible employees. The bonus payable is to be determined on the basis of profits or on the basis of production or productivity of the establishment.
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