Bombay High Court Upholds Industrial Court's Order on Unfair Labour Practices by Mumbai University; Directs Payment of Salary Equivalent to Lowest Grade. Employment of Workers on Casual Basis for Extended Periods Without Permanency Amounts to Unfair Labour Practice Under Schedule IV of MRTU & PULP Act, 1971.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The judgment pertains to a batch of 18 writ petitions arising from complaints before the Industrial Court under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971. The petitioners included unions and employees of the University of Mumbai, who alleged that the university engaged in unfair labour practices under items 5, 6, and 9 of Schedule IV by employing them as temporary or casual workers for extended periods, with the object of denying them permanent status and benefits. The employees, numbering over 900 in various cadres such as junior clerks, security guards, sweepers, peons, data entry operators, etc., claimed to have worked for more than 240 days in each block of 12 months, thus eligible for permanency. The Industrial Court, in several complaints (ULP Nos. 13/2014, 282/2013, 385/2014, etc.), passed orders in January 2018, declaring the university guilty of unfair labour practice and directing that the employees be paid salary equivalent to the lowest grade of regular employees from the date of judgment and restraining termination without due process. The university challenged these orders in writ petitions, while the employees also filed petitions seeking enhanced relief. The High Court clubbed all 18 petitions and issued Rule, making it returnable forthwith, and heard them finally. The court recorded the factual matrix and the arguments canvassed by both sides, with lead arguments for employees by Mr. Shailesh Naidu and for the university by Senior Advocate Srihari Aney. The court examined the nature of employment and the Industrial Court's findings that the university's actions fell within the ambit of unfair labour practice. It ultimately disposed of the petitions, upholding the Industrial Court's orders and directing the university to comply with the directions of payment of minimum salary and maintenance of status quo, thereby granting relief to the workers. The decision reinforced the principle that employing workers on a prolonged temporary basis with the objective of depriving them of permanency constitutes an unfair labour practice, warranting appropriate directions for regularization and equal pay.

Headnote

A) Labour Law – Unfair Labour Practice – Continuing employees as temporary/casual for years with object to deny permanency – Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, Schedule IV Items 5, 6, 9 – Industrial Court found Mumbai University engaged in unfair labour practice by employing 938+ workers for years without permanency, despite completing 240 days in blocks of 12 months – Court directed payment of salary equivalent to lowest grade of regular employees from date of order and restrained termination – Held that such practice constitutes unfair labour practice (Paras 5-8).

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Issue of Consideration

Whether the Industrial Court correctly held that the University of Mumbai engaged in unfair labour practices under Schedule IV of the MRTU & PULP Act by employing workers on temporary/casual basis for extended periods and granting relief of permanency and equal pay.

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Law Points

  • Unfair labour practices under items 5
  • 6
  • 9 of Schedule IV of MRTU & PULP Act
  • permanency on completion of 240 days of continuous service
  • equal pay for equal work
  • jurisdiction of Industrial Court under section 28 of MRTU & PULP Act
  • powers of University under Maharashtra Public Universities Act
  • 2016
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Case Details

2019 LawText (BOM) (05) 24

Writ Petition No. 2976 of 2018 and connected matters

2019-05-03

A.K. Menon, J.

2019:BHC-OS:9585

Mr. Shailesh Naidu, Mr. Srihari Aney, Ms. Anjali Purav, Mr. Kiran Bapat, Dr. D.S. Hatle

Mumbai Vidyapeeth Kamgar Sanghatana & Ors.

University of Mumbai

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Nature of Litigation

Civil writ petitions challenging orders of the Industrial Court under the MRTU & PULP Act pertaining to complaints of unfair labour practices.

Remedy Sought

By employees: declaration of unfair labour practice, direction to treat them as permanent and pay wages and benefits; by university: quashing of Industrial Court orders.

Filing Reason

Aggrieved by Industrial Court's finding of unfair labour practice and directions for payment of salary and status quo on termination.

Previous Decisions

Industrial Court in multiple complaints held that the university engaged in unfair labour practice under items 5, 6, 9 of Schedule IV, directed payment of salary equivalent to lowest grade of regular employees and restrained termination without due process.

Issues

Whether the Industrial Court correctly held that the University of Mumbai engaged in unfair labour practices under Schedule IV of the MRTU & PULP Act by employing workers on a temporary basis for years with the object of depriving them of permanent status.

Submissions/Arguments

Employees argued that being employed for many years and completing 240 days in each block of 12 months entitled them to permanency, and the university's conduct fell under items 5, 6, 9 of Schedule IV. University argued that the Industrial Court lacked jurisdiction and the employees were not entitled to permanency under the provisions of the Maharashtra Public Universities Act.

Judgment Excerpts

The Industrial Court allowed the complaint in part, declared that the university had engaged in unfair labour practices under Section 6 of Schedule IV of the MRTP and PULP Act, 1971. The employees sought permanency for having worked for more than 240 days in a block of 12 months.

Procedural History

Employees filed complaints before Industrial Court under MRTU & PULP Act. Industrial Court passed orders in January 2018 finding unfair labour practices and granting interim relief. Aggrieved, both parties filed writ petitions in High Court. High Court heard all 18 petitions together and reserved judgment on 13th February 2019, pronounced on 3rd May 2019.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Section 28, Section 30(2), Schedule IV Items 5, 6, 9
  • Maharashtra Public Universities Act, 2016: Section 3(1), Section 4, Section 5, Section 8, Section 9, Section 14(6)
  • Payment of Wages Act, 1936:
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