Bombay High Court Nagpur Bench Reviews Industrial Court's Finding of Unfair Labour Practice Against Employer for Denying Permanent Status to Temporary Workers. Court Examines Whether Completion of 240 Days of Continuous Service Under Model Standing Orders Mandates Confirmation.

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

This batch of writ petitions was filed by Mahindra and Mahindra Ltd. and one employee before the Bombay High Court, Nagpur Bench, challenging a common order of the Industrial Court dated 25 November 2005. The Industrial Court had partly allowed complaints filed by temporary workers under Section 28 of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU Act). The complaints alleged that the employer had engaged in unfair labour practices under items 5 and 9 of Schedule IV of the MRTU Act by not making the complainants permanent despite completion of 240 days of continuous service, and by engaging juniors or other employees during artificial breaks in their service. The Industrial Court declared that the employer had indeed indulged in such unfair labour practices and directed confirmation of the complainants under clause 4-C of the Model Standing Orders from the dates of institution of their complaints. However, in the case of employee Sudhakar Narad, the Industrial Court partly allowed his complaint, finding unfair labour practice, but rejected his additional prayer for regularisation from the date he completed 240 days with consequential benefits. The employer filed a series of writ petitions (W.P. Nos. 164/2006 and connected matters) seeking to quash this order, while Sudhakar Narad filed a separate writ petition (W.P. No. 6427/2005) against the denial of full regularisation. The High Court admitted the petitions on 13 February 2006 and granted interim relief, directing that the employer not provide unskilled work to other persons or employees under the Employment Promotion Programme (EPP) and that such work be first offered to the respondent employees as and when available. On 7 April 2006, the court directed that the writ petitions be listed for final hearing. After hearing arguments, judgment was reserved on 10 August 2006 and pronounced on 19 September 2006. The extract of the judgment provided does not contain the High Court's reasoning or final decision. Thus, the outcome remains unknown from the text supplied.

Headnote

A) Labour Law - Unfair Labour Practice - Items 5 and 9, Schedule IV, Maharashtra Recognition of Trade Unions & Prevention of Unfair Labour Practices Act, 1971 - The Industrial Court by its common order dated 25-11-2005 declared that the employer had committed unfair labour practice by not making temporary workers permanent and by engaging juniors during artificial breaks, and directed confirmation under Clause 4-C of the Model Standing Orders from the date of institution of complaints (Paras 1-2).

B) Labour Law - Model Standing Orders - Section 35, Bombay Industrial Relations Act - Clauses 3(2)(g), 4C, 4D - The complainants contended that after completing 240 days of continuous service they became permanent under the Model Standing Orders, but the employer violated these provisions by giving artificial breaks and employing new or junior employees (Para 3).

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Issue of Consideration

Whether the Industrial Court correctly declared unfair labour practice and directed confirmation under model standing orders; whether an employee is entitled to regularisation from completion of 240 days of continuous service; whether complaints time-barred.

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Law Points

  • unfair labour practices under Schedule IV items 5 and 9 of MRTU Act
  • rights of temporary workers under Model Standing Orders framed under Bombay Industrial Relations Act
  • requirement of confirmation after 240 days of continuous service
  • interpretation of clauses 4C
  • 4D
  • 3(2)(g) of Model Standing Orders
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Case Details

2006 LawText (BOM) (09) 146

Writ Petition Nos. 164/2006, 129/2006, 130/2006, 132/2006, 133/2006, 134/2006, 135/2006, 136/2006, 137/2006, 138/2006, 139/2006, 143/2006, 144/2006, 145/2006, 146/2006, 147/2006, 148/2006, 149/2006, 150/2006, 151/2006, 152/2006, 153/2006, 154/2006, 155/2006, 156/2006, 157/2006, 158/2006, 159/2006, 160/2006, 161/2006, 162/2006, 163/2006, 165/2006, 166/2006, 167/2006, 168/2006, 169/2006, 170/2006 and 6427/2005

2006-09-19

B.P. Dharmadhikari, J.

R.B. Puranik, S.G. Zinjarde, A.V. Desai, S.P. Kolarkar, M.V. Mohokar, P.A. Gedam, Assistant Government Pleader

Mahindra and Mahindra Ltd. (in W.P. Nos. 164/2006 and connected petitions); Sudhakar Kisanrao Narad (in W.P. No. 6427/2005)

Various employees including Manoj Sukhdeo Deshpande, Sunil Daulatrao Nagardhankar, and others (in employer's petitions); Mahindra and Mahindra Ltd. (in Sudhakar Narad's petition)

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Nature of Litigation

Challenge to industrial court order declaring unfair labour practice by employer under MRTU Act and directing confirmation of temporary workers under model standing orders; cross-petition by employee against denial of full regularisation.

Remedy Sought

The employer sought quashing of the Industrial Court's order dated 25.11.2005 and dismissal of the ULPA complaints. The employee Sudhakar Narad sought setting aside of the rejection of his claim for regularisation from the date of completion of 240 days with consequential benefits.

Filing Reason

The employer contended that the Industrial Court erred in holding unfair labour practices as complainants were engaged for fixed durations due to temporary increase in work and were not entitled to permanency. The employee contended that the Industrial Court erred in not granting regularisation despite finding unfair labour practice.

Previous Decisions

The Industrial Court, by common order dated 25.11.2005, partly allowed complaints, declared unfair labour practice under items 5 and 9 of Schedule IV of MRTU Act, and directed confirmation under clause 4-C of Model Standing Orders from the date of institution of complaints. In Complaint No. 703/2003 filed by Sudhakar Narad, the Industrial Court partly allowed the complaint but rejected the prayer for regularisation from the date of completion of 240 days with consequential benefits.

Issues

Whether the employer engaged in unfair labour practice under items 5 and 9 of Schedule IV of MRTU Act by not making temporary workers permanent and by engaging juniors during artificial breaks? Whether the Industrial Court correctly directed confirmation under clause 4-C of Model Standing Orders from the date of institution of complaints? Whether the employee Sudhakar Narad is entitled to regularisation from the date of completion of 240 days of continuous service with consequential benefits?

Submissions/Arguments

The complainants argued that they completed 240 days of continuous service, became permanent under model standing orders, but the employer gave artificial breaks and employed juniors, violating clauses 3(2)(g), 4C, 4D of Model Standing Orders. The employer argued that it engaged temporary workers due to temporary increase in work, gave orders for fixed duration, denied rotation or artificial breaks, and contended the complaints were time-barred. It also stated that from 1/4/2003 it did not engage any temporary worker.

Judgment Excerpts

The learned member of Industrial Court has disposed of all these complaints by common order on 25th November 2005 and while partly allowing the complaints, gave declaration that employer has indulged in unfair Labour practice under items 5 and 9 of Schedule IV and directed employer to give confirmation to all complainants under clause 4-C of Model Standing Orders from the date of institution of Complaints. It is further stated that this is in violation of provisions of model Standing Orders 3(2)(g), 4C and 4D of model Standing Orders. It is contended that after completion of 240 days of continuous service each complainant became permanent but employer violated these requirements of model Standing Orders and continued to employ new or junior employees.

Procedural History

Complaints under Section 28 MRTU Act filed before Industrial Court. Industrial Court common order dated 25.11.2005 partly allowed complaints. Employer filed writ petitions challenging order; employee filed cross-petition. High Court admitted on 13.2.2006, interim relief granted. Directed final hearing on 7.4.2006. Judgment reserved 10.8.2006, pronounced 19.9.2006.

Acts & Sections

  • Maharashtra Recognition of Trade Unions & Prevention of Unfair Labour Practices Act, 1971: Section 28, Schedule IV Item 5, Schedule IV Item 9
  • Bombay Industrial Relations Act: Section 35, Model Standing Orders Clauses 3(2)(g), 4C, 4D
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