Case Study: Employee Trust and Theft
The Karnataka High Court recently ruled that an employee found guilty of theft cannot be reinstated, even on compassionate grounds. The case involved an employee of a hotel who was dismissed after being caught stealing. The Court emphasized that theft, regardless of the value involved, breaches the trust essential in an employment relationship, making dismissal justified.
Reinstating such an employee, the Court noted, would set a harmful precedent. The decision underlines the importance of trust as a cornerstone of employment relationships.
Employer Cannot Revoke Employment Offer without Justified Cause
In a recent case, the Delhi High Court ruled that an employer cannot revoke an employment offer without a justified cause, especially when all joining conditions have been fulfilled. The case involved an employee who joined Hindustan Urvarak and Rasayan Limited (HURL) after resigning from his previous employer, Brahmaputra Valley Fertilizer Corporation Limited (BVFCL). Despite fulfilling the selection process and submitting the required resignation, BVFCL delayed issuance of a relieving letter, prompting HURL to revoke the offer.
The Delhi High Court emphasized that the absence of a relieving letter, especially when it is beyond the employee’s control, cannot justify revocation. The Court ordered the reinstatement of the employee, highlighting the need for proportionality and fairness in employer-employee relationships. This judgement reinforces the principle that termination decisions must align with reasonableness and fairness to protect employees’ rights and livelihood.
Maternity Benefits Act takes precedence over contractual conditions for contractual employees
The Madras High Court recently ruled that the provisions of the Maternity Benefits Act, 1961, take precedence over any contractual terms offering less favorable maternity leave conditions. The case involved staff nurses under the National Rural Health Mission (NRHM) in Tamil Nadu who were denied maternity benefits by the state government on the grounds of their contractual employment.
The court directed the government to process all pending and new applications from NRHM nurses within the framework of the Act.
The Supreme Court affirms employer’s action for voluntary abandonment of service without an inquiry
An employee of LIC remained absent for more than 90 days without informing LIC of his whereabouts. LIC sent recall letters to his permanent address, which were returned unanswered. LIC treated the case as voluntary abandonment of service and terminated the services of the employer; however, the High Court of Himachal Pradesh held that the termination was unsustainable on the ground of not providing due opportunity to the delinquent employee.
The Supreme Court set aside the order of the High Court and held that it was a case of voluntary abandonment of service, and action taken by LIC cannot be faulted. As it was later found out that the employee had suppressed the fact of his employment with the FCI, the Supreme Court further held that he is disentitled to any equitable relief.
Advisory on Work-from Home Mandate in Gurugram
In response to the escalating air pollution levels, the Gurugram District Administration has advised private institutions, corporate offices and public offices to implement work-from-home policy. This move is part of the Graded Response Action Plan (GRAP) to address severe pollution levels. The advisory took effect on November 20, 2024, and will remain in place until further notice. This measure aims to reduce vehicular emissions and improve air quality. Organizations are encouraged to comply to help mitigate the air quality crisis.
POSH Act Compliance Reminder
The Gurugram administration has reminded all organizations – government and private – to submit their annual compliance reports under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. These reports must detail incidents of workplace harassment and the action taken to address them. The reports are to be submitted latest by February 28, 2025. Failure to submit the report will result in a penalty of INR 50,000, with stricter actions for continued violations. Organizations are expected to use the checklist available on the district website (https://gurugram.gov.in/shww/) and submit their reports via email.
Delhi Government’s Online Submission Mandate
The Delhi Government in its order dated October 8, 2024 has directed that applications for registration and license renewals under the following labor laws be submitted online, through the portals edistrict.delhigovt.nic.in :
- Registration and renewal of license under the Factories Act, 1948. Registration and renewal of Boilers Manufactures under the Boilers Act, 1923. Renewal of Certificate of Boilers under the Boilers Act,1923.
- Registration and Certification of New Boilers under the Boilers Act, 1923.
- License and renewal of license for contractors under provisions of the Contracts Labor (Regulation and Abolition) Act, 1970.
- Registration under the Shops and Establishments Act,1954.
- Registration of principal employer’s establishments under provision of the Contract Labor (Regulation and Abolition) Act, 1970.
- Registration under the Building and Other Construction Workers (Regulation of Employment and Conditions of Services Act, 1996. Registration of establishments under the lnter-State Migrant Workmen (RE & CS) Act, 1979.
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Rochit Kochhar
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Suhas Srinivasiah
Senior Partner
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Suma R V
Partner
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