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Case Study

Industrial Dispute between a Contractual worker & Contractor over Superannuation age of Service.

A dispute has been raised against Contractor of a Bank by a Contractual worker addressed to The Office of The Assistant Labour Commissioner (C ), Siliguri in order to intervene the issue over his illegal termination from service.

Based on the petition, The Assistant Labour Commissioner (Central) proposes to hold a joint discussion on the dispute in his Office to bring about an amicable settlement of the dispute.

In the joint discussion, the worker raised his dispute over his termination of service by the contractor (Employer) through telephonically and he claimed that he has not provided any notice for his termination. In reply, representative of the Employer stated that the worker has been superannuated from service on attaining the age of retirement i.e. 58 years of age. And the same was intimated by a letter of communication sent by post to the worker which the worker denied. The worker also claimed to reinstate him till the age of 60 years likewise the employees of the Principal Employer.

After heard both the parties the Conciliation Officer asked to the Employer to submit their Company guidelines/certified standing order along with their written submission against the allegations made by the worker on or before next date of meeting fixed. The Conciliation Officer also advised to the Employer to review their decision on merit.

On next meeting, the Employer submitted their written submission along with their Employee Handbook where superannuation age is mentioned as 58 years. The employer also submitted postal acknowledgement copy through which the letter was sent to the worker as he was denied to acknowledge by hand.
The argument of the employer was, as and when it is comes to our notice that any employee attained the age of 58 years we immediately inform to such employee for superannuation. Since, our Company policy/HR guide lines clearly states the age of superannuation is 58 years we cannot continue any employee including contractual staff to work with us.

The Conciliation Officer asked to the Employer to submit their certified standing order on the superannuation age limit which the Company failed to produce.

In contradiction, the Company representative mentioned that in absence of approved standing order for their Company they follow The Industrial Employment (Standing Orders) Act, 1946 where in Section 5 under Rule 10 of the Model Standing Order, Age of retirement is mentioned as fifty-eight years.
The said artefact submitted by the representative of the Employer (Contractor) is accepted by the Conciliation Officer and rejected the application of reinstatement of the worker.
Further as per request of the worker and the Conciliation Officer, the Employer agreed to provide further two months’ notice period to the worker.