Dear All, We are running a startup in Mysuru Karnataka. I need to add a jurisdiction clause in my hr handbook for legal issues. Can some help me to frame this paragraph? Thanks
From India, Bengaluru
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1From India, Bengaluru
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Dear member,
A jurisdiction clause is a part of the legal agreement or contract, and it should be included where the parties want all disputes arising under their agreement to be determined by a particular court. In your case, it is Mysuru.
However, it is appropriate to insert the jurisdiction clause in the Appointment Letter. Under the provisions of the Indian Contract Act, 1872, an Appointment Letter is a valid contract between an employer and employee. Companies insert this clause in the standing orders that are approved by the Department of Labour. Since these are approved by the government authorities, they have legal validity. In contrast, what legal validity does the "Employee Handbook" have? Nothing.
The purpose of the "Employee Handbook" is to give work instructions or to codify a general code of conduct. The scope of the appointment letter or standing orders is broad, and minute details cannot be mentioned. To fill the gap, the "Employee Handbook" is created.
In view of this, I recommend you revise the place of the insertion of this clause. The draft of the clause could be as below:
Any dispute arising out of or in connection with this Appointment Letter, including any question regarding its existence, validity, or termination, shall be referred to and finally resolved by the courts within the Municipal limits of Mysuru city only.
Thanks,
Dinesh Divekar
From India, Bangalore
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A jurisdiction clause is a part of the legal agreement or contract, and it should be included where the parties want all disputes arising under their agreement to be determined by a particular court. In your case, it is Mysuru.
However, it is appropriate to insert the jurisdiction clause in the Appointment Letter. Under the provisions of the Indian Contract Act, 1872, an Appointment Letter is a valid contract between an employer and employee. Companies insert this clause in the standing orders that are approved by the Department of Labour. Since these are approved by the government authorities, they have legal validity. In contrast, what legal validity does the "Employee Handbook" have? Nothing.
The purpose of the "Employee Handbook" is to give work instructions or to codify a general code of conduct. The scope of the appointment letter or standing orders is broad, and minute details cannot be mentioned. To fill the gap, the "Employee Handbook" is created.
In view of this, I recommend you revise the place of the insertion of this clause. The draft of the clause could be as below:
Any dispute arising out of or in connection with this Appointment Letter, including any question regarding its existence, validity, or termination, shall be referred to and finally resolved by the courts within the Municipal limits of Mysuru city only.
Thanks,
Dinesh Divekar
From India, Bangalore
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I am sorry to differ from the view of our learned friend, Mr. Dinesh.
In employment matters/disputes, only the last place of work determines the jurisdiction of the authorities. For example, if the company headquartered in Mysore selects a candidate for appointment as its workman and posts him at its branch in Mangalore, and later an employment dispute arises between them, then the workman can approach the authority in Mangalore for redress and not go to Mysore just because it is mentioned in the HR Manual. Such a clause would be applicable for trade/commercial disputes only. Even this is as per the residential place of the applicant in the case of pecuniary claims under the Consumer Protection Act.
Therefore, it is not necessary to include such a clause in the HR handbook.
From India, Salem
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In employment matters/disputes, only the last place of work determines the jurisdiction of the authorities. For example, if the company headquartered in Mysore selects a candidate for appointment as its workman and posts him at its branch in Mangalore, and later an employment dispute arises between them, then the workman can approach the authority in Mangalore for redress and not go to Mysore just because it is mentioned in the HR Manual. Such a clause would be applicable for trade/commercial disputes only. Even this is as per the residential place of the applicant in the case of pecuniary claims under the Consumer Protection Act.
Therefore, it is not necessary to include such a clause in the HR handbook.
From India, Salem
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Dear Umakanthan Sir,
The focus of my post was more on where to include the clause on the jurisdiction of the disputes. The originator of the post has mentioned that he wishes to include it in the employee handbook. I suggested including it in the appointment letter. Yes, the place of the settlement of the jurisdiction of the dispute will have to be the place of appointment. Naturally, it will vary according to the needs of the organization.
Regards,
Dinesh Divekar
From India, Bangalore
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The focus of my post was more on where to include the clause on the jurisdiction of the disputes. The originator of the post has mentioned that he wishes to include it in the employee handbook. I suggested including it in the appointment letter. Yes, the place of the settlement of the jurisdiction of the dispute will have to be the place of appointment. Naturally, it will vary according to the needs of the organization.
Regards,
Dinesh Divekar
From India, Bangalore
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Employee Handbook is created and developed to describe the expectations of employees and to outline the policies, programs, and benefits available to eligible employees. The Employee Handbook will answer many questions about employment with the company.
Managements of all companies believe that professional relationships are easier when all employees are aware of the culture and values of the organization. In that context, the Employee Handbook will serve as a guide to help the readers better understand the vision for the future of the company's business and the challenges that lie ahead.
In short, the Employee Handbook is the Company's HR Policies/HR Manual at the micro level.
From India, Aizawl
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Managements of all companies believe that professional relationships are easier when all employees are aware of the culture and values of the organization. In that context, the Employee Handbook will serve as a guide to help the readers better understand the vision for the future of the company's business and the challenges that lie ahead.
In short, the Employee Handbook is the Company's HR Policies/HR Manual at the micro level.
From India, Aizawl
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Dear colleagues,
The prevailing labor laws governing matters of employment and its terms will take precedence over anything contrary contained in the manual/handbook. In particular, matters of termination; no other court will have jurisdiction other than authorities created under those laws, i.e., the Industrial Disputes Act. Therefore, to suggest the inclusion of a jurisdiction clause running contrary to this is displaying ignorance of the correct legal position.
I fully share the views expressed by Mr. Umakanhan.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
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The prevailing labor laws governing matters of employment and its terms will take precedence over anything contrary contained in the manual/handbook. In particular, matters of termination; no other court will have jurisdiction other than authorities created under those laws, i.e., the Industrial Disputes Act. Therefore, to suggest the inclusion of a jurisdiction clause running contrary to this is displaying ignorance of the correct legal position.
I fully share the views expressed by Mr. Umakanhan.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
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The employment-related disputes are not bound by putting the jurisdiction clause because all the acts have been enacted by the Centre and state governments to enforce and administer the acts and laws.
In the recent past, one contractor from Andhra Pradesh received a notice from the court of Odisha to settle the claims of workers (wages and overtime) working under him in Bhutan. In this case, two countries and two states of India are involved. The contractor paid the claims of the workers, complying with the court order in Odisha.
From India, Mumbai
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In the recent past, one contractor from Andhra Pradesh received a notice from the court of Odisha to settle the claims of workers (wages and overtime) working under him in Bhutan. In this case, two countries and two states of India are involved. The contractor paid the claims of the workers, complying with the court order in Odisha.
From India, Mumbai
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