Page 81 - DCOM207_LABOUR_LAWS

Labour Laws

Notes Provided that where several activities are carried on in an establishment or undertaking and
only one or some of such activities is or are an industry or industries, then (a) if any unit of such
establishment or undertaking carrying on any.

Notes Dismissal, etc., of an individual workman to be deemed to be an industrial
dispute -
Where any employer discharges, dismisses, retrenches or otherwise terminates the
services of an individual workman, any dispute or difference between that workman and
his employer connected with, or arising out of, such discharge, dismissal, retrenchment
or termination shall be deemed to be an industrial dispute notwithstanding that no other
workman nor any union of workmen is a party to the dispute.



Caselet Twenty-first Century Printers Ltd., Mumbai v. K.P.
Abraham and Anr - Is an Officer Functioning in the
Management Capacity not a Workman?
wenty-first Century Printers Ltd., Mumbai, was engaged in the manufacture of
printed packing material. They had appointed K.P. Abraham as Purchase Officer.
TIn the course of employment, the Company asked him to carry some article from
Mumbai to Ahmedabad, which he declined to carry. The incident took an ugly turn and
the Company decided to terminate K.P. Abraham’s services. The main issue raised in this
petition was whether K.P. Abraham was a workman as his function is managerial one
coming under the exception in Section 2 (s) (iii) of the Industrial Disputes Act, 1947, and as
such, he is not a workman.

Labour Court Judgment
However, the labour court held that K.P. Abraham was a workman under the Industrial
Disputes Act, 1947, and termination of his service was illegal. The Presiding officer also
directed his reinstatement with continuity of service and payment of full back wages. The
Petitioner challenged the award of labour court in the Bombay High Court. Decision: The
Hon’ble High Court allowed the writ petition and quashed the order of labour court which
held K.P. Abraham a workman and set aside his termination. The High Court held that the
purchase office functioning in the managerial capacity will not be a workman under the
Industrial Disputes Act.

Source: http://www.phindia.com/srm/Court_Cases.pdf
Self Assessment

State whether the following statements are true or false:
1. The Industrial Disputes Act, 1957 recognizes certain rights to the employees employed by
the employer.

2. The employer may also be liable to compensate his customers with whom he may have
contracted for regular supply.
3. Arbitrator includes an umpire.

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