Court Cases

High Court Supports Employer’s Right to Terminate Workers Over Illegal Strikes


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In a significant ruling, the Bombay High Court has upheld the decision of Advani Oerlikon Ltd. to terminate several workers who participated in illegal strikes and violent protests. The ruling came from a Single Judge Bench led by Justice Sandeep V. Marne, who stated that employers can justify retrospective terminations in cases where employee misconduct threatens workplace safety.

Background of the Case

The events leading to this ruling date back to 1997 when workers at Advani Oerlikon Ltd. initiated a series of strikes due to unresolved negotiations concerning wage settlements. The situation escalated into a violent demonstration outside the company’s gates, which involved acts of intimidation and obstruction directed at other employees. In response to this unrest, Advani Oerlikon terminated around 35 workers without conducting any prior enquiry. The termination notices cited the illegal nature of the strikes and the misconduct displayed by the workers.

Following their termination, the affected workers filed complaints with the Labour Court. However, the Labour Court dismissed their claims, prompting the workers to appeal to the Industrial Court. The Industrial Court upheld the Labour Court’s decision, leading the workers to file a writ petition challenging the legality of their terminations.

Arguments Presented

In their arguments, the petitioners’ counsel contended that the Labour Court’s dismissal was flawed. They claimed that terminating workers without conducting a disciplinary enquiry violated principles of natural justice, as it deprived them of the chance to defend themselves. The counsel argued that simply participating in strike activities should not justify termination without a hearing. Additionally, they pointed out that allowing Advani Oerlikon to introduce evidence of alleged violence retrospectively was a violation of labor law principles.

On the other hand, Advani Oerlikon defended its actions by asserting that the workers’ behavior constituted serious misconduct under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act (MRTU & PULP Act). The company’s counsel highlighted instances of obstruction, intimidation, and violence, stating that such actions created an unsafe environment and made a fair enquiry impossible. They referenced a previous case, Workmen of Motipur Sugar Factory Pvt. Ltd. v. Motipur Sugar Factory, to support their position that terminations for serious misconduct could occur without a prior enquiry when safety was at risk.

Court’s Reasoning

The court ultimately upheld the terminations, concluding that Advani Oerlikon acted within its rights under the MRTU & PULP Act. Justice Marne reviewed the evidence presented and confirmed that employers are permitted to substantiate terminations before the Labor Court when conducting a pre-termination enquiry is impractical or impossible.

The court noted that when employee conduct clearly jeopardizes workplace order, the requirement for a prior enquiry is lessened. Justice Marne emphasized that “the threat posed by the petitioners’ conduct rendered an enquiry futile; hence, the retrospective justification by the company was lawful and did not contravene labor principles.”

Moreover, the court found no merit in the petitioners’ claims of peaceful protest, as evidence revealed acts of violence against management and other employees.

Conclusion

In conclusion, the Bombay High Court dismissed the petition, reaffirming the validity of the terminations. The court deemed the actions necessary to preserve workplace safety and maintain lawful employment practices, setting a precedent for how employers can respond to severe misconduct in the workplace.

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