The settlement, unless more beneficial for workers, cannot override certified standing orders Bharatiya Kamgar Karmachari Mahasang v/s M/s. Jet Airways Ltd, CA No. 4404/2023 (Supreme Court)

https://karmamgmt.com/newsletter/MOJO/2023-12-01/BKKM-vs-Jet-Airways-Ltd-Karma-Global.pdf

In a recent legal development, the judiciary has reinforced the principle that settlements between employers and employees cannot override certified standing orders unless they are more beneficial to the workers. The case in point involved a commercial airline facing a dispute with a union representing temporary workers engaged on fixed-term contracts.

?The union had argued that despite completing 240 days of service, as stipulated in the Model Standing Order under the Bombay Industrial Employment (Standing Orders) Rules, the workers were being treated as temporary. The crux of the matter lay in a settlement reached in 2002, where the demand for permanency was relinquished by the union in exchange for other benefits.

However, the court, in its opinion, emphasized two crucial issues. First, it clarified the authority responsible for issuing standing orders under the Industrial Employment (Standing Orders) Act, 1946. In this case, the state government was deemed the appropriate authority, and the Bombay Model Standing Order was deemed applicable.

The second and more critical issue was whether private agreements or settlements could override certified standing orders. The court, relying on various precedents, asserted that certified standing orders possess statutory force and are akin to a contract between the employer and the worker. Such contracts, it stated, cannot be overridden by private agreements that are inconsistent with the certified standing orders.

The court cited previous judgments that highlighted the statutory nature of certified standing orders and their role in defining the terms of employment. It emphasized that the Industrial Employment (Standing Orders) Act, 1946, was enacted to regulate employment conditions and ensure fairness and reasonableness in the employer-employee relationship.

In conclusion, the court ruled that any settlement or agreement inconsistent with certified standing orders would not prevail unless it proved more beneficial to the workers. It held that the Model Standing Order, in this case, took precedence over the settlement from 2002, thereby entitling the workers to the benefits outlined in the standing orders.

This judgment reaffirms the sanctity of certified standing orders in governing the employer-employee relationship, ensuring that workers are not deprived of their rightful entitlements under statutory regulations. It serves as a reminder to employers that any private agreement must align with and, if possible, enhance the rights conferred upon workers by certified standing orders.

Did you know

Canada's Workers' Compensation system provides diverse benefits to employees. Loss of Earnings (LOE) compensates for a percentage of take-home pay, Non-Economic Loss (NEL) covers permanent impairments, and Future Economic Loss (FEL) supports those permanently injured within specific dates. Health care, return-to-work assistance, survivor benefits (including counselling and re-entry aid), and retirement benefits for workers under 64 are also included. These measures aim to comprehensively address the well-being of workers in the Canadian labour market.

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