Employment LawTransferring Workman From One Place To Another In Absence Of Material Showing Need Of Such Transfer Is Not Fair

The Hon’ble Punjab and Haryana High Court in Pappu Giri v. Presiding Officer, Industrial Tribunal-cum-Labour Court, Panipat and Another 2024:PHHC:063611, decided on 14.05.2024 held that it is unfair to transfer Workmen from one place to another without showing the need for such transfers.

FACTS

Pappu Giri (hereinafter referred to as “the Appellant”) and  Learned Industrial Tribunal cum Labour Court, Panipat and Another (hereinafter referred to as  “the Respondent”),

The Appellant in this case was working  as a  clipper with the wages Rs. 3640 per month. Subsequently, he was paid Rs. 3,640 a month for his work as a “Clipper” for the Management between December 1, 2004, and March 14, 2008.He was allegedly forced to work ten hours a day without receiving overtime compensation by the management, despite the usual eight-hour workweek.

Despite the fact that there was no transfer clause stated in the appointment letter, he and 28 other people were transferred when he brought up the problem. He could not stay on at Panipat after turning down the transfer. On April 7, 2008, he sent out a demand letter, alleging that he had been fired for breaking Section 25-F of the Industrial Disputes Act of 1947 by not being accepted at his original place of employment.

ISSUES BEFORE THE HIGH COURT

1. Whether the Appellant’s termination is valid ?
2. Whether the workmen has failed to report their duty ?

CONTENTIONS  OF THE PARTIES

The Appellant contented that the factory was just recently started which was subsequent to the appointment of the Appellant hence it was not mentioned in any contract between the Appellant and the management.

The Appellant further contended that the employer has no inherent right to transfer his employee to another place where he chooses to start a business subsequent to the date of the employment, when there was no condition of service of employment of the employee either express of implied that the employer has the right to transfer to such new venture started or proposed to be started subsequent to the date of his employment.

Whereas, the Respondent submitted that there is not any proof by the Appellant to show that he was working for 10 hrs It was also pleaded that Industrial Dispute cannot be raised by Termination of services and contented that transfer is at the discretion of management rather than victimization.

DECISION AND FINDINGS

The Hon’ble High Court held that since the Certified Standing Order did not specify any clear terms or conditions, the Appellant is not obligated to follow it. Additionally, without proper documentation showing the need for the worker to be transferred from Panipat to Dadra and Nagar Haveli, the management’s decision cannot be considered fair. Therefore, the worker is allowed to continue their job at the original location. The management will allow the worker to continue working at their original location. Alternatively, the management has the option to pay the worker a lump sum compensation of ₹3,00,000

AMLEGALS REMARKS

​The legal matter at hand revolves around the unlawful transfer of employees, specifically Pappu Giri and others, from their workplace without any clear provision for such transfers in their employment contracts. The present case serves as a pivotal decision in labour law, highlighting the necessity for justifiable reasons in employee transfers.​ The Hon’ble Punjab and Haryana High Court effectively reinforced principles of natural justice and worker rights by ruling against the arbitrary transfer of employees without sufficient evidence.

The legal matter at hand revolves around the unlawful transfer of employees from their workplace without any clear provision for such transfers in their employment contracts. The Hon’ble High Court’s decision not only rectified the immediate issue of wrongful transfer but also reinforced the obligation of management to uphold ethical practices in employee relations. This case acts as a reminder for employers to develop comprehensive policies aligned with labour laws that ensure fair treatment of all employees, establishing a balanced relationship between management strategies and employee rights.

– Team AMLEGALS