LABOUR SNIPPETS – OCTOBER 2022

Wages under 17B Allowed in Appeal against Sec. 33(2)(b) Order

In a writ appeal before the Karnataka High Court, M/s Delta Infralogistics (Worldwide) Ltd., challenged the order of the single judge in granting 17B wages to a workman, along with arrears to be paid. The company which was before the high court had challenged the order of the Central Government Industrial Tribunal which rejected the permission to terminate the services of the workman under Section 33(2)(b) after conducting disciplinary proceedings. The company contended that 17B wages cannot be granted in a challenge to an order under Section 33(2)(b) and that the workman was gainfully employed as he was an auto-driver. Taking the contrary view and perusing several case laws on the same, the Court refused to interfere with the order of the single judge and noted that 17B wages can be granted to a workman even if the appeal is against the rejection of permission under Section 33(2)(b), as it amounts to an award, and that self-employment does not amount to gainful employment. 

Section 17B of the Industrial Disputes Act grants interim relief to a workman wherein the workman has been awarded with reinstatement and the employer has challenged such order to reinstate the worker. Under Section 33(2)(b) of the ID Act, an employer seeks permission from the Labour Court to terminate the service of a workman if he is covered under any dispute pending before labour court or department.

[Unreported judgment of High Court of Karnataka in WA No. 1074/2021in WP No. 45852/2019 – Delta Infralogistics (Worldwide) Ltd. v. Mohan K.E. & Ors dt. 02.09.2022]

Spain fines Delivery Hero's Glovo $78 mln. for hiring breaches

Glovo, an app-based delivery company in Spain, has been fined $78 million for violating labour laws, including the failure to provide social security benefits and other payments between 2018 and 2021. In May 2021, Spain enacted a law to safeguard the rights of workers in gig-economy and had directed all companies to enter into formal contracts with the workers, thus granting several employment-based rights. However, in breach of the same, Glovo had refused to provide labour contracts to 10,600 workers in the largest cities of Spain – Barcelona and Valencia after the act was enacted. 

Wipro To Hold Back Variable Pay of Employees

Citing that their teams have failed to achieve targets, IT company Wipro has decided to hold back the variable pay for their mid and senior-level employees, whereas juniors and fresh recruits will get their variable pay after withholding 30 per cent of the total pay. Similarly, the incentives for their sales team has also been impacted and that the salary hikes and increments will be as per usual. This comes in tow of several multinational companies like Apple, Google, Microsoft, etc., have been actively laying-off employees citing lesser profits in the quarter. Employees across several companies are facing the brunt of slowing down of the economy world-over. 

Increase in Minimum Wage by 67% 

The minimum daily wage for unskilled workers in Sikkim has been increased from Rs. 300 to Rs. 500. This amounts to a 67 per cent increase in the minimum wage. The minimum wage for semi-skilled workers has been increased from Rs. 320 to Rs. 520, and that for skilled workers it has been increased from Rs. 335 to Rs. 535. Highly skilled workers will be paid a minimum wage of Rs. 565, as opposed to the earlier wage at Rs. 365. However, these minimum wages are applicable to those workers who are working at an altitude of up to 8,000 feet, while 50 per cent more wages in addition to the normal wages will be given to those working at altitudes between 8,001 feet and 12,000 feet. Workers working above 12,001 feet to 16,000 feet will be paid 75 per cent more than normal wage and whereas those working at places above 16,001 feet will get double the normal wage. Arrears will be paid to the workers with effect from o1 July, 2022 as the hike in wages has been given a retrospective effect. 

Frame Policy to Accommodate Transgender Persons in Jobs: SC 

The Supreme Court has asked the Union Government to frame a policy to accommodate transgender persons into employment across all establishments covered by the Transgender Persons (Protection of Rights) Act, 2019, and the same has to be drafted in consultation with the National Council for Transgender Persons. This direction was made in an interim order in a case filed before the Apex Court by a transgender person who was denied a job as a crew member in Air India allegedly due to her identity. The court noted in the order that - “transgender persons routinely face multiple forms of oppression, social exclusion and discrimination, especially in the field of healthcare, employment and education. Gender diverse persons, including transgender persons, continue to face barriers in accessing equal employment opportunities, especially in the formal sector, due to the operation of gender stereotypes. Gender stereotypes in the workplace disproportionately impact transgender persons for not subscribing to societal norms about appropriate ‘feminine’ and ‘masculine’ appearances and mannerisms”.

[Shanavi Punnusamy v. Ministry of Civil Aviation & Anr. in WP (C) No. 1033/2017]

Study Health Status of Workers in Coal Thermal Plants: Odisha HC

Even though a case in regard to the health hazards faced by the workers employed in coal-fired thermal power plants (CFTPPs) was listed in 2014, the matter was only taken up recently where the Odisha High Court directed the state government to submit a comprehensive report about workers who are suffering from lung function abnormalities, skin diseases, asthma and pulmonary function test abnormalities. The Supreme Court had got a report prepared by the National Institute of Occupation Health and the same was made available to different High Courts. In 2014 when the case was filed, the Odisha High Court had proposed that a scrutiny be undertaken in regard to the workers and to identify the issues on a priority basis, as there are about 61 industries having CFTPPs. The Court has now directed that workers suffering from health abnormalities be identified, and that claims of such workers for appropriate relief be heard in accordance with law.