Karnataka High Court Sets Precedent: Upholds Company’s Right to Terminate Probationary Supervisor

In a landmark judgment, the Karnataka High Court, presided over by THE HON’BLE MS. JUSTICE JYOTI MULIMANI, has upheld a company’s prerogative to terminate the employment of a probationary supervisor. The ruling, which came on September 15, 2023, sheds light on the importance of employment probation and the definition of a “workman” under the Industrial Disputes Act, 1947.

The case in question revolved around M/S. POWERICA LIMITED, a company specializing in diesel generator manufacturing. They terminated the employment of SRI MANJUNATH PATTAR, who had been appointed as a Supervisor with a probationary period. The termination stemmed from an incident where Pattar was allegedly involved in gambling with workers on the shop floor. The company issued warnings and extended his probation, but ultimately, the employment was terminated.

The court’s decision rested on the fact that Pattar, despite being appointed as a Supervisor, drew a salary exceeding Rs. 10,000 per month, a threshold that made him ineligible to be considered a “workman” under Section 2(S)(iv) of the Industrial Disputes Act. Moreover, the court took into account evidence that Pattar was gainfully employed in another venture, further affirming the company’s right to terminate his employment.

The judgment set a significant precedent by emphasizing the importance of probationary periods in employment contracts and clarified the distinction between workmen and supervisors under labor laws.

The case was represented by Sri.Somashekar for the petitioner company and Sri.Adinarayana for the respondent, Sri Manjunath Pattar.

This ruling serves as a vital reference point for future cases involving employment disputes, probationary periods, and the classification of workers, providing clarity on employers’ rights in such matters.

Date of Decision: September 15, 2023                                       

M/S. POWERICA LIMITED (DTA UNIT)   vs SRI MANJUNATH PATTAR