HUMAN RESOURCE MANAGEMENT State Bank of India v. Sundar MoneyMoney- Case anaysis anay sis (Term (Term paper towards partial fulfilment of the assessment in the subject of Human resource resource management)
Su!"itted to#
Su!"itted !y#
Mrs. $endanta" %eea
Utkars& Sa'ena ()*+,
Assistant rofessor/ 0a1uty of Mana2e"ent studies
B.B.A %%.B. (Hons.
NATIONA% %A3 UNI$ERSIT4/ 5O6HUR 3INTER S SEMESTER (5 (5ANUAR4-MA4 MA4/ *7)8
STATE BAN9 O0 IN6IA v. SUN6AR MONE4
Section 2(oo) of the Industrial Dispute Act defines 'retrenchment' as the termination by the employer of the service of a workman
for any reasons whatsoever, otherwise than as a
punishment inflicted by way of disciplinary action Section 2!(") (b) of the Industrial Disputes Act, #$%&, provides that no workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until he has been paid at the time of the retrenchment, compensation which shall be euivalent to #! days' averae pay for every completed year of service or any part thereof in ecess of si months It has already been held by the Supreme *ourt in the Mazdoor Sabha's *ase that the statutory reuirement of the payment of compensation under section 2!(")(b) of the Industrial Disputes Act, #$%& is a condition precedent for the retrenchment of a workman and any retrenchment
without payment at the time of the retrenchment makes the retrenchment
order invalid and inoperative
0a1tua Matri'
+ne of the two employees involved in these appeals has been reabsorbed in service and his case is therefore of lesser import, but the other is still out in the cold and his leal fate falls for eamination in the matri of facts which we proceed to state his respondent was appointed off and on, by the State -ank of India between .uly /#, #$&/ and Auust 2$, #$&/ he intermittent breaks notwithstandin, his total number of days of employment answered the test of deemed' continuous service within Section 2!0(2) and both sides accept that fact situation, -ut the order of appointment, which bears the 'ood bye' to the employee after a few days, calls for construction in the liht of Section 2(11) and Section 2!" and we may as well read it here (#) he appointment is purely a temporary one for a period of $ days but may be terminated earlier, without assinin any reason therefore at the bank's discretion3 (2) he employment, unless terminated earlier, will automatically cease at the epiry of the period ie, #0###$&2 his nine days' employment, tacked on to what has one before, has ripened to a continuous service for a year on the antecedent arithmetic of 2%1 days of broken bits of service +ne of the ma4or contentions raised by the appellant in the present case was that as the automatic etinuishment of his service conseuent to the pre5emptive provision in his appointment order as to the temporariness and the period of his employment was covered by the words 6termination for any reasons whatsoever6 occurrin in section 2(oo) of the Act, in an application under Art227 of the *onstitution by
the respondent claimin that by virtue of
his deemed continuous service of one year within the meanin of s 2!-(2) of the Industrial Disputes Act, he was entitled to be reinstated for non5compliance of s2!" of the Act he 8ih *ourt of 9adras allowin the writ made the rule nisi absolute he writ appeal filed by the appellant respondent was re4ected by he 9adras 8ih *ourt
5ud2e"ent#
he Supreme *ourt also re4ected the petition so filed by the Appellant If the workman swims into the harbour of s 2!" of the Industrial
Disputes Act,
#$%&, he cannot be retrenched
without payment, at the lime of retrenchment, compensation computed as prescribed therein read with s 2!-(2) of the Industrial Disputes Act,
#$%& A breakdown of section 2(11)
unmistakably epands the semantics of retrenchment 6ermination for any reason whatsoever6 are the key words :very termination spells retrenchment A termination takes place where a term epires either by the active step of the master or the runnin out of the stipulated term o protect the weak aainst the stron this policy of comprehensive definition has been effectuated ermination embraces not merely the act of termination by the employer, but the fact of termination howsoever produced ;etrenchment is no loner terra inconita but area covered by an epansive definition It means 'to end' conclude, cease' hat to write
into
the
order
of
appointment the date of termination confers no permanent release from section 2! " (b) is inferable from the proviso to section 2!"(a) A separate subseuent termination of the service is not the sole manetic pull of the provision A pre5emptive provision to terminate is struck by the same vice as a post appointment termination Deterity of diction cannot defeat the articulated conscience of the provision 6Section 2!" (b) provides that no workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until he has been paid at the time of retrenchment compensation
which
shall
be
euivalent to fifteen days' averae pay for every completed year of service or any part thereof in ecess of si months +n a plain readin of section 2!"(b) it is clear that the reuirement prescribed by it is a condition precedent for the retrenchment of the work man he section
provides that no workman shall be, retrenched until the condition in uestion has been satisfied It is difficult to accede to the arument that when the < section imposes condition precedent, non5compliance with the
said
condition
in mandatory terms a
would
not
render
the
impuned retrenchment invalid failure to comply with the said provision renders the impuned orders invalid and inoperative he respondent 'was thus entitled to retrenchment compensation' which, not havin been paid, 'the termination would be invalid' In the present case the employment ceased, concluded, ended on the epiration of nine
days automatically may be,
but cessation all the same A break5down of section 2(oo) unmistakably epands the semantics of retrenchment 'ermination for any reason whatsoever' are the key words =hatever the reason, every termination spells retrenchment A termination takes place where a term epires either by the active step of the master of the runnin out of the stipulated term o protect the weak aainst the stron this policy of comprehensive definition has been effectuated ermination embraces not merely the act of termination by the employer, but the fact of termination howsoever produced 9ay be, the present may be a hard case, but we can visualise abuses by employers, by suitable verbal devices, circumventin the armour of section 2!" and section 2(oo) 8owever in the present case there is no retrenchment and thus the respondent is not liable for retrenchment compensation from S-I he *ourt held that the respondent has been re5employed by the
appellant althouh in his case
also we declare, for reasons already iven and sub4ect to the same term till his absorption that the retrenchment is invalid and hence no compensation was approved by the Supreme *ourt to the respondent
Mana2eria As:e1t#
he manaement of State -ank of India was wron in retrenchin a person without fulfillin the conditions of the retrenchment as mentioned in Industrial Disputes Act, #$%& In order to do a proper retrenchment, there is a need for a proper compensation he manaement needs to provide for retrenchment compensation in order to retrench an employee In the present case, the manaement did not ive compensation before retrenchin the employee and hence there was no retrenchment herefore, the court re4ected the appeal for retrenchment and ordered the bank to reinstate the employee with the oriinal pay ;etrenchment can be done when there is a financial constraint, surplus labour can be terminated but in this case manaement tried to retrench the employee on the basis of section 2 (oo) of the Industrial Disputes act, #$%& in which an employee can be retrenched without any reason
