In the context of the Industrial Disputes Act, 1947 and the Payment of Wages Act, 1936, the legal consequences of a strike regarding wages and termination depend heavily on whether the strike is legal and justified.
1. Payment of Wages During a Strike
The general legal principle followed in India is "No Work, No Pay." However, the entitlement to wages during a strike period is determined by two factors:
Legal and Justified Strike: If a strike is both legal (following all procedural requirements of Section 22 and 23) and justified (resorted to as a last resort against unfair labor practices), the courts may grant workers full or partial wages.
Illegal or Unjustified Strike: If the strike contravenes statutory provisions or is resorted to for unreasonable demands, workers are not entitled to any wages for the strike period.
Time of Payment: Under the Payment of Wages Act, if the strike ends and the employment continues, the employer must pay the earned wages (excluding the strike period if deemed unpaid) according to the fixed wage period. If the strike results in mass termination, wages must be paid within two working days of the discharge.
2. Termination of Service During a Strike
Participation in a strike does not automatically terminate the contract of employment. However, services can be terminated under the following conditions:
A. Illegal Strikes
If a workman participates in an illegal strike (as defined under Section 24), it is considered "misconduct" under the Model Standing Orders. The employer can initiate disciplinary action, which may lead to dismissal, provided a proper Domestic Inquiry is conducted.
B. Violence and Sabotage
Even in a legal strike, if a workman indulges in:
Acts of physical violence or intimidation;
Destruction of employer property;
Assaulting management or non-striking workers;
Their services can be terminated following the principles of natural justice (charge sheet and inquiry).
C. Participation vs. Instigation
Courts generally take a lenient view of mere participation in a strike. However, instigating others to join an illegal strike or taking a leadership role in unlawful activities is viewed as grave misconduct, making the workman liable for termination.
3. Procedural Safeguards (Section 33)
If an industrial dispute is already pending before a Conciliation Officer or Tribunal, the employer cannot terminate the services of a workman for misconduct connected to that dispute without the express permission or approval of the authority before which the proceeding is pending.
Consequences of Strike
| Nature of Strike | Entitlement to Wages | Risk of Termination |
| Legal & Justified | Generally Payable | Low (Protection under the Act) |
| Legal & Unjustified | Not Payable | Moderate (Disciplinary action possible) |
| Illegal | Not Payable | High (Dismissal for misconduct possible) |
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