1.
Introduction
It
is undeniable right of the management to retain the services of those person
sonly who are really useful and terminate the services of those ones who
becomes surplus to the requirements of the employer. It is called retrenchment
and is to be made bona fide and the workman retrenched has the right of
re-employment in preference of others where the employer proposes to take into
his employment any person within a period of one year from the date of
retrenchment.
2.
Relevant Provisions
Following
are the relevant provisions of industrial and commercial employment (standing
orders) ordinance, 1968 regarding the concerned topic.
Standing
order 13,14 and 14-A
3.
Meaning of Retrenchment
“Retrenchment
means the termination of services of a workman by the employer on the ground of
redundancy, i.e, when he becomes surplus to the requirements of the
employer."
4. Retrenchment of a workman u/order 13
i.
Authority Empowered to Retrench
It
is the employer who can retrench the workman.
ii.
Rule of Retrenchment
In
the retrenchment “Last come first go” rule must be followed where any workman
is to be retrenched and he belongs to a particular category of workmen, the
employer shall retrench the workmen who is the last person employed in that
category.
a.
Meaning of Category
Word
category means category in an establishment. Whole business concerns if one
establishment it will be one unit. Business concern if consisting of various establishments
each will be a separate unit and category would means category of that unit.
iii.
Essential for retrenchment
It
is necessary that the retrenchment order must be made bona fide. The court
should not interfere until and unless some positive mala fide is proved
regarding injury to employee. The burden of proof is upon party urging mala
fide.
5.
Re-Employment of Retrenched workmen
The retrenched
workmen are entitled to the re-employment where employer proposes to take into
his employ any person within a period of one year from the date of such
retrenchment and it is incumbent upon the employer to follow the following
procedure.
i.
Notice to Retrenched workman
The
employer shall send a notice by registered post to the retrenched workmen
belonging to the category concerned to offer themselves for re-employment and
that notice shall be sent to the last known addresses of the retrenched
workmen.
ii.
Preference over others
The retrenched
workmen shall have preference over others and shall be given re-employment on
the basis of their inter-se seniority.
6.
Re-Employment in case workmen retrenched belongs to seasonal factory
In
case of seasonal factory the workman who was retrenched in one season and
reports for duty within ten days of the resumption of work in the factory in
the immediately following season shall be given preference for employment by
the employer.
i.
Notice
Sending
a notice to the retrenched workman in case of seasonal factory in not
obligatory on the employer but he may if he wishes, send a notice by registered
post to the last known address of a workman who was retrenched in one season,
require him to report on a day specified in the notice, not being earlier than
10 days before resumption of work in such factory.
ii.
Report by workman
If
such workman reports as required by the employer on a specified day, he shall
be given preference for employment and paid full wages from the day he reports.
7.
Re-employment of Retrenched workman engaged in constructions Industry
Where
any workman is retrenched or discharged by a contractor or employer engaged in
the constructions industry due to completion, cessation, discontinuance of
work, he shall be given preference for employment in any other similar work
undertaken by the contractor or employer within a period of one year from the
date of such retrenchment or discharge.
i.
Where workman Re-employed within one month of Retrenchment
Where
a workman is re-employed within one month of his retrenchment or discharge he
shall be deemed to have been in continuous service of the contractor or
employer but no wages shall be paid to him for the period of interruption.
8.
Conclusion
To conclude,
I can say that, the retrenchment is not to be understood in the same sense as
the termination of services of workman on the complete closure of business.
Retrenchment implies a continuous running of the business when the services of
only some of the workmen who become surplus to the requirements of the
employer, are terminated. It shall be incumbent upon the management to retrench
only that workman who is the last person employed in that category where the
retrenchment has become necessary and it is the right of the retrenched workmen
to be given preference over the others if the vacancy occurs in the same
category within a period of one year from the date of retrenchment.
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