Searching Case Laws & Precedent on Legal Query.....!
Scanned Judgements…!
Searching Case Laws & Precedent on Legal Query.....!
Scanned Judgements…!
In the complex world of Indian labour law, workers often face unique challenges when their employer is not a traditional company but a registered trade union managing a unit or cooperative. A common question arises: In a gratuity case where a trade union is the employer conducting the unit, can the claim be sustained against the trade union?
This issue hinges on the legal personality of trade unions, the nature of gratuity as a statutory benefit, and specific judicial interpretations. While gratuity is typically governed by the Payment of Gratuity Act, 1972, claims against unions require examining their status under the Trade Unions Act, 1926. This post delves into the nuances, drawing from key rulings and legal principles to provide clarity. Note: This is general information based on precedents and not specific legal advice; consult a qualified lawyer for your situation.
Generally, a gratuity claim can be sustained against a registered trade union acting as the employer for a unit. Registered trade unions are bodies corporate under Section 13 of the Trade Unions Act, 1926, capable of suing and being sued, including for employer-like liabilities. Calcutta Tram Mazdoor Sabha VS State Of West Bengal - 2022 0 Supreme(Cal) 715 However, success depends on proving the union's role as employer, the individual nature of the claim, and that no binding scheme diverts funds exclusively to union purposes.
Key factors include:- Registration status: Only registered unions have the legal standing to face such claims effectively.- Employer role: Evidence of the union conducting a unit (e.g., cooperative stores or member benefit funds) establishing an employer-employee relationship. B. C. Sharma VS M. L. Bhalla - 2006 6 Supreme 761- Fund availability: Claims target the union's general funds, usable for employment-related disputes like wages or gratuity. Calcutta Tram Mazdoor Sabha VS State Of West Bengal - 2022 0 Supreme(Cal) 715
Unregistered unions, by contrast, lack locus standi, making claims unlikely to sustain. B. Srinivasa Reddy VS Karnataka Urban Water Supply & Drainage Board Employees Association - 2006 7 Supreme 4
Under the Trade Unions Act, 1926, registration confers body corporate status: a registered trade union recognised by Section 8 of the Trade Unions Act, makes it clear that it can sue and be sued as a body corporate under Section 13 of that Act. Calcutta Tram Mazdoor Sabha VS State Of West Bengal - 2022 0 Supreme(Cal) 715 This enables unions to undertake activities like running units for members' benefits, such as co-operative stores, thereby mirroring employers. B. C. Sharma VS M. L. Bhalla - 2006 6 Supreme 761
When a union employs workers in such capacities, it incurs standard liabilities, including gratuity. Courts have affirmed unions' capacity to employ and face claims accordingly. For instance, trade unions can espouse members' causes against employers, underscoring their dual role. D. N. De Homoeopathic Medical College & Hospital Employees’ Union VS State of West Bengal - 2014 Supreme(Cal) 457 The object of a union is to protect the rights of its members and to redress their grievances which may arise against their employer. D. N. De Homoeopathic Medical College & Hospital Employees’ Union VS State of West Bengal - 2014 Supreme(Cal) 457
Even federations of trade unions qualify as 'trade unions' under Section 2(h) of the Trade Unions Act, 1926, and can represent workmen effectively. U P TRADE UNION CONGRESS HOSPITAL ROAD RENUKOT MIRZAPUR VS LABOUR COURT ALLAHABAD - 1996 Supreme(All) 659 This reinforces their legal robustness when acting as employers.
Gratuity claims are inherently individual, not collective bargaining matters. The claim for gratuity is admittedly an individual claim wherein the trade union has no role to deliberate or receives an assurance from the employer for payment of the same after collective bargaining. Calcutta Tram Mazdoor Sabha VS State Of West Bengal - 2022 0 Supreme(Cal) 715
If the union holds gratuity funds from a prior management, claims may fail without proof of a binding settlement: In the case before us the petitioner and Respondent have not shown that there was any such settlement between the management and the trade union or a scheme prepared by the trade union which was binding on the workmen under which the amounts received towards the gratuity and the accident benefit fund on behalf of the workmen would become a part of the union fund – Special leave petition dismissed. G. S. Dhara Singh VS E. K. Thomas - 1988 0 Supreme(SC) 491 The amounts were received by the trade union from the employer concerned towards the gratuity and accident benefit trade union from the employer concerned towards the gratuity trade union could not claim the amount. G.S. DHARA SINGH vs E.K. THOMAS & ORS.
However, when the union is the direct employer, the claim stands as an enforceable right against its funds. Trade unions often negotiate benefits like those under ROPA 1998, highlighting their representative yet liable role. West Bengal Transport Corporation Ltd. VS Calcutta Tram Mazdoor Sabha - 2023 Supreme(Cal) 723 In the instant case the Trade Union has a vital role to play as it did by negotiating the terms with the employer representing the employees.
Registered unions' general funds support disputes over wages/sums due, encompassing gratuity. Calcutta Tram Mazdoor Sabha VS State Of West Bengal - 2022 0 Supreme(Cal) 715 Unregistered ones have no manner of right whatsoever. B. Srinivasa Reddy VS Karnataka Urban Water Supply & Drainage Board Employees Association - 2006 7 Supreme 4
Courts recognize unions' standing to represent even former employees for dues like unpaid wages, treated as debts. Jonathan Allen VS Zoom Developers Private Limited - 2015 Supreme(MP) 810 The Workmen Trade Unions not only represent the cause of workmen/employees, but also former workmen/employees.
Under the Industrial Disputes Act, unions or federations can espouse individual disputes if directly interested. U P TRADE UNION CONGRESS HOSPITAL ROAD RENUKOT MIRZAPUR VS LABOUR COURT ALLAHABAD - 1996 Supreme(All) 659 This aligns with Article 226 writs where unions act as petitioners. West Bengal Transport Corporation Ltd. VS Calcutta Tram Mazdoor Sabha - 2023 Supreme(Cal) 723
Claims may not sustain in these scenarios:- Unregistered unions: No enforceable rights or liabilities. B. Srinivasa Reddy VS Karnataka Urban Water Supply & Drainage Board Employees Association - 2006 7 Supreme 4- Binding schemes: If gratuity funds are union property via settlement, refunds fail. G. S. Dhara Singh VS E. K. Thomas - 1988 0 Supreme(SC) 491- No employer proof: Disputed facts need labour court adjudication.- Collective vs. individual: Unions can't espouse gratuity collectively unless employer. Calcutta Tram Mazdoor Sabha VS State Of West Bengal - 2022 0 Supreme(Cal) 715- Forfeiture cases: Termination for fraud requires Labour Tribunal review, not just Commissioner. Lanka Milk Foods (CWE) PLC vs B.K.Prabhath Chandrakeerthi Commissioner General of Labour Labour Secretariat and others - 2024 Supreme(SRI)(CA) 478
To pursue a claim:1. Verify union registration and your employment/service records.2. File before a labour court, under Payment of Gratuity Act mechanisms, or writ jurisdiction.3. Gather evidence of employer status and absence of diverting schemes.4. Prefer individual claims; unions may represent but primarily for members' rights. Naval Civilian Employees Union, Visakhapatnam VS Chief of Naval Staff, New Delhi - 2010 Supreme(AP) 146
If rejected, seek reasoned orders and appeal. West Bengal Transport Corporation Ltd. VS Calcutta Tram Mazdoor Sabha - 2023 Supreme(Cal) 723
Understanding these dynamics empowers workers. For tailored guidance, reach out to labour law experts. Stay informed on evolving precedents like those under Insolvency and Bankruptcy Code or IDA. West Bengal Transport Corporation Ltd. VS Calcutta Tram Mazdoor Sabha - 2023 Supreme(Cal) 723Lanka Milk Foods (CWE) PLC vs B.K.Prabhath Chandrakeerthi Commissioner General of Labour Labour Secretariat and others - 2024 Supreme(SRI)(CA) 478
This analysis draws from reported judgments and statutes; outcomes vary by facts.
#GratuityLaw, #TradeUnionLiability, #LabourRightsIndia
union consisting of workmen.” ... The Petitioner is seeking inter-alia, a Writ of Certiorari quashing the Notifications marked as P10, P11, P12 and P13 By P10, the Secretary to the Ministry of Labour and Trade Union Relations by letter dated 24-04-2018 informed the Petitioner that the Minister of ... services of the employer and thus ceased to be an employee. ... ANZ Grindlays Bank PLC 1 (G.P.S.De Silva Cj, Dheeraratne J & Ramanathan J) that; “A dispute in regard to a claim for "gratuity#HL_E....
In the instant case the Trade Union has a vital role to play as it did by negotiating the terms with the employer representing the employees. In the instant case the petitioner that is the trade union had a negotiating authority in fixing the benefits under the ROPA 1998. ... In case of rejection of any claim, CTC now known as WBTC shall give proper reasons for the rejection of the claim and communicate the same to....
By registering themselves as a trade union they get several benefit and advantages vis-a-vis the employer. It is seen from the records that immediately after the registration was granted, the union wrote to the petitioner for recognition of the union and sent several reminders. ... In our view the position of an employer who objects to the registration of a trade union with whom it has thereafter to deal with cannot be equated to the position of a ri....
By registering themselves as a trade union they get several benefit and advantages vis-a-vis the employer. It is seen from the records that immediately after the registration was granted, the union wrote to the petitioner for recognition of the union and sent several reminders. ... In our view the position of an employer who objects to the registration of a trade union with whom it has thereafter to deal with cannot be equated to the position of a ri....
The amounts were received by the trade union from the employer concerned towards the gratuity and accident benefit trade union from the employer concerned towards the gratuity trade union could not claim the amount. ... union by the employer for the benefit of the members of the trade union on the happening of....
Admittedly, the amounts were received by the trade union from the employer concerned towards the gratuity and accident benefit to which the workers were entitled. ... In case of genuine grievances and forced strike the workmen unable to stand up for want of wherewithal or cushions, the trade union may help them sustain their vigour by some monetary assistance during the period of strike. ... We do not find any tenable defence which the trad....
Admittedly, the amounts were received by the trade union from the employer concerned towards the gratuity and accident benefit to which the workers were entitled. ... of a trade union who had resigned from the membership of trade union could not claim the amount. ... In the case before us the petitioner and Respondent No. 3 have not shown that there was any such settlement between the management and the t....
Since the second respondent Trade Union could not substantiate their original claim that they were employees of the principal employer, the said complaint was closed. As against the said order dated 21.01.1998 no appeal was filed. ... In that the trade union and their immediate contractors have agreed in paragraph 2 as follows:- ... "2. ... Since earlier proceedings were initiated at the instance of the trade union and that the trade#HL_EN....
Section 31B (1) is also included in the said Part IVA of the IDA which reads as follows: “31 B. (1) A workman or a trade union on behalf of a workman who is a member of that union, may make an application in writing to a labour tribunal for relief or redress in respect of any of ... In The National Union of Workers v. ... , in the case of a monthly rated workman; and (b) in the case of any other workman, fourteen days' wage or salary for, each year of completed service computed at th....
Therefore, the respondents have referred to clause 59 of the memorandum of settlement between the trade union and the employer under which it was agreed upon by the parties that gratuity shall be paid to the unionized workers in terms of the applicable Act(s) and Rule(s) as notified/ amended by the Government ... In the aforesaid background, the writ Court has held that the Board-level Executives and non-unionized Supervisors formed a distinct class whereas the writ petitioners were governed under the Wage Agreement/Sett....
A registered and recognised trade union is, therefor, entitled to make such a claim. In order to maintain a writ petition it is now well-settled that one has to establish that he has an enforceable right which has been infringed. This judgement which has been cited by the petitioner, however, does not automatically makes a writ petition maintainable as it relates to a petition under IBC. Gratuity is available to an employee under the statute that is Payment of Gratuity Act, 1972. The claim for gratuity is admittedly an individual claim wherein the trade union has ....
The Workmen Trade Unions not only represent the cause of workmen/employees, but also former workmen/employees. For, the claim of workmen/employees, who are members of the Trade Union, can be espoused only by the concerned Trade Unions. The interpretation given by the petitioner would encourage the Trade Unions to resort to remedy of winding up of the Company, to espouse the cause of its members, instead of pursuing other remedies prescribed by law for resolving such disputes. It is then submitted that the argument of the petitioner that being former employee of the responde....
The issue is whether it can be considered as “a person aggrieved” under the Administrative Tribunals Act. The object of a union is to protect the rights of its members and to redress their grievances which may arise against their employer. In the case of Mani Subrat Jain (supra) the Supreme Court was dealing with the matters relating to issuance of a mandamus against the Government to appoint the Additional District and Sessions Judges. It is now well-settled that a trade union has the right to espouse the cause of its members against their employer.
On the other hand, if the claim is genuine, the employer cannot brush it aside on the ground that it is not satisfied about the claim made by a trade union. Neither of the two extremes can be readily resorted to. Much would depend upon the claim made by a trade union on the one hand and the manner in which the discretion is exercised by the employer, on the other. If the matter is to be referred to the Commissioner for decision, which naturally would take months, if not years, depending on the hierarchy of remedies, the Committee cannot be constituted for ....
The workmen themselves being a weaker sec tion, cannot be left to defend themselves against the mighty employer through a small unit of Trade Union. The petitioner No. 2 is a Trade Union of the Employees, under the same employer, which is running a different unit. The workman has a right to form a Union, which is recognised as a Trade Union. The powerful establishment of big Industry like N. T. P. C. can be matched by a powerful Union of a greater magnitude, as in the present case. Admittedly, the petitioner No. 2 is operating in the field, in which the wo....
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