Q: I had been working in a public sector company as a Class-I officer. But the company suddenly fired me without giving any valid reason. My lawyer advised me to file a writ petition in the high court. But before filing the writ, he issued a legal notice to the company for my reinstatement. We are still awaiting a reply from the company. Can I, in the meantime, approach the Industrial Tribunal seeking adjudication through the Industrial Disputes Act, 1947? I want to know if the Industrial Tribunals are meant for all kinds of employees including the officers or are they restricted to workers drawing salaries below a certain limit?

Name and address withheld

A: The Industrial Tribunals aren?t meant for all kinds of employees. Only a ?workman?, as defined in Section 2(s) of the Industrial Disputes Act, 1947, can take recourse to the provisions of the Act. A ?workman? is defined as any person employed in any industry to do manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward. However, any such person who is employed mainly in a managerial or administrative capacity is excepted from the definition of a ?workman?. Further, any person employed in a supervisory capacity drawing wages exceeding Rs 1,600 per month or exercising functions mainly of a managerial nature is also excepted from the definition of ?workman? under the Act. Hence, whether you will be able to approach the Industrial Tribunal or not will depend on the nature of duties and functions you used to discharge as an officer of that company.

Q: I am writing on behalf of more than 100 employees and workers of a public sector company. In October 2005, the company became sick and was referred to the Board for Industrial and Financial Reconstruction (BIFR), New Delhi. Since then we haven?t received our salary. However, the factory of the company continues to operate full time and all of us are working there without pay. We have made a representation to the management, but have been told that since the company?s matter is before the BIFR, salaries of the employees cannot be paid without the permission of the BIFR. The management referred to Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). Is this stand of the management tenable in the eyes of the law? We are facing tremendous hardship and are struggling for survival. Please let us know what step we should take to alleviate our financial hardship.

Pranabesh Pal
Calcutta

A: Section 22 of the SICA is no bar to the payment of salary and wages of employees and workers of a sick company, which is registered with the BIFR. The BIFR?s permission isn?t necessary for this. Section 22 only bars coercive actions against a company so long as its case is before the BIFR. The Bombay, Gujarat and Madras High Courts have held that a claim for wages due to the workers isn?t barred by the provisions of Section 22 of the SICA. In any event, Section 22 of the SICA isn?t a complete bar to filing legal proceedings against a sick company. Such proceedings can be filed with the prior permission of the BIFR. In my opinion, you should approach the BIFR and apprise it of your hardship. The BIFR has wide powers including the power to direct the company to pay the salaries and wages of employees and workers.