A dispute was raised by a contractual worker against a contractor regarding illegal termination of the worker’s service by the contractor through telephonic communication and without providing any notice of termination. The matter was taken up for determination by the Office of the Deputy Chief Labour Commissioner (Central), with joint discussions being facilitated by the Assistant Labour Commissioner in an effort to reach an amicable settlement.
The employer contended that the worker had been superannuated upon attaining the retirement age of 58 years. The reason for termination was clearly stated in a letter sent by post to the worker; however, the worker refused to accept the letter.
The worker, on the other hand, demanded reinstatement, claiming entitlement to continue working until the age of 60, similar to employees of the principal employer. Following the hearing, the Conciliation Officer directed the employer to submit their company’s service guidelines along with a written response addressing the worker’s
allegations, prior to the next scheduled conciliation meeting.
In compliance, the employer submitted a written statement along with the employee handbook, which explicitly states that the age of superannuation is 58 years. Additionally, the employer provided a copy of the postal acknowledgment, clearly demonstrating that the worker had refused to receive the termination letter.
he employer stated that whenever it comes to their notice that an employee has attained the age of 58 years, the employee is immediately notified of superannuation.
Further the employer emphasized that, as per the company’s policy and HR guidelines, the retirement age is fixed at 58 years, and no employee, including contractual worker is permitted to continue service beyond the mentioned age.
The Conciliation Officer directed the employer to submit a certified standing order specifying the superannuation age. However, the employer failed to produce such a certified standing order. In response, the employer’s representative clarified that, in the absence of an approved standing order for their organization, they adhere to the provisions of the Industrial Employment (Standing Orders) Act, 1946. Specifically, under Section 5, Rule 10 of the Model Standing Orders, the prescribed retirement age is 58 years.
The document submitted by the employer’s representative was accepted by the Conciliation Officer, who accordingly rejected the worker’s application for reinstatement. However, at the request of the worker and the Conciliation Officer, the employer agreed to provide an additional two-month notice period to the worker.
