Employment@ Legal Case Or Domestic Enquiry

Dear All,

In the event of a legal case involving an employee where a decision is pending, is that individual permitted to work for another company? What is the legal perspective on this matter?

Regards,
Ranjeet

Dear Ranjeet,

The information that you have provided is inadequate. You need to tell us what type of case is going on. The case is between an employee and whom? Is it a criminal or civil case? Who is the petitioner, and who is the respondent? What is the designation of the employee? Is the employee from government services, a PSU, or a private company?

There are many questions associated with the post. Please give us the complete facts of the case. Suggestions can be given thereafter.

Thanks,

Dinesh Divekar

Dear Mr. Divekar,

Greetings!

Below is the response to your queries:

You need to tell us what type of case is going on. If there is a labor case. The case is going on between the employee and whom? The case is between the management and the employee. Who is the petitioner and who is the respondent? The petitioner is a workman while the respondent is management. What is the designation of the employee? He comes under the category of workmen or what if any executive had filed any case? Is the employee from government services, PSU, or a private company? It is a private company. If it were a PSU, what would be the next course of action?

Regards,

Ranjeet

There are many questions associated with the post. Please provide us with complete facts of the case. Suggestions can be given thereafter.

Dear Ranjeet,

Once again, you have allowed others to assume that the case concerns the non-employment of the employee pending the decision of the Labour Court, and the employee is currently employed elsewhere. In this context, "gainful employment" would refer to working under another employer during the interim period. The potential legal consequences, if the Labour Court rules in favor of the employee, could be:

(a) The employee may not receive back wages from the date of dismissal to the date of reinstatement, if ordered in the award.
(b) If the employer decides to appeal the award to the High Court and initially obtains a stay on its operation, the employee may not receive their last-drawn wages under Sec.17B until the appeal is resolved.

Dear Ranjeet,

This is in addition to what Mr. Umakanthan has said. If the matter is *sub judice* and if the petitioner gains employment, he could forfeit his claim for back wages. If the petitioner is a workman, the provisions of the Industrial Disputes Act, 1947 become applicable. Otherwise, it will not be a labor case but a civil case.

If the petitioner is from government services, the case will be handled by the Central Administrative Tribunal (CAT); otherwise, it will go to the labor court or civil court.

Thanks,

Dinesh Divekar

Dear Mr. Umakanthan/Mr. Divekar,

Thank you so much for your professional advice.

Let me share with you the details of the case (I have already posted one query as a subcontract).

We have hired a contractor to provide cars along with drivers to us. Now, without our knowledge, he has subcontracted to a third party for drivers.

Due to some reasons, they have left the work stating that they were not paid the monthly wages. Until now, we were under the impression that they were on the payrolls of our vendor.

We have checked and found that the contractor has subcontracted this to another party for the supply of drivers. According to the first contractor, these drivers were transferred to a new unit (although I don't have proof for the same as I don't have copies of transfer letters). These drivers, through an external union, have filed a case against their principal employer as well as included us as a party in the labor office, asking for reinstatement with full wages.

Below are the issues:

1- The first contractor doesn't have a license under the Contract Labor Act.

2- The principal employer does not have the name of this contractor in the RC.

3- In this case, who is the principal employer, as the contractor has subcontracted some functions?

4- Can such workers ask for reinstatement? Even though they are driving their own vehicles with car services like OLA, UBER?

5- As per the ALC, the contractor cannot subcontract these functions.

Please advise.

Regards,

Ranjeet

Dear Ranjeet,

In the first place, a very basic question arises in my mind as to whether an establishment's contract with a travel agent or another establishment dealing in rental car services for public transport for the supply of cars with drivers could be brought within the purview of the CLRA Act, 1970. In my opinion, at the maximum, such a contract could only be a contract for service ensuring regularity, economy, and quality of service to the contractee and certainty of continuous business and of periodical payments to the contractor.

Here, the Establishment/contractee hiring the services of the Cabs just stands on par with any other general public who utilize the services on rent. Therefore, it is just a "Contract for Service" similar to the contract for the supply of goods. If the same is a "Contract of Service" undertaken by the contractor on behalf of the Establishment/contractee to fulfill the latter's statutory obligations, if any, the position would be different. As such, your questions become contextually infructuous.

These matters deal with complex matters of law. Full facts, contracts, etc., need to be examined as stated earlier. What is the ground on which external union has intervened? With limited facts available, the answer of the learned member Shri Umakanthan.M is correct. Basic facts as I can understand - your company has a contract with X for the supply of cars and drivers. X has hired drivers from Y. There is no link/relationship between your company and Y. The right of employment with your company does not arise.

Dear Ranjeet,

Working in another company is possible, but the company's verification officers will check the employee's previous record at their previous organization. If they find any false information or learn about a legal or illegal case involving the employee, the employee may end up being blacklisted. Once an employee is blacklisted, no organization will be willing to hire them.

Regards,
Shailesh

Dear All,

Thank you for your valuable inputs and guidance. Please advise if there is any provision for subcontracting in the law, especially in the Contract Labour Act, which only defines the terms "principal employer" and "contractor."

Dear Mr. Umakanthan,

We have hired a vendor who provides us with luxury cars along with drivers for guest transport.

Regards,
Ranjeet