Supreme Court Rules in Favor of Workers’ Permanency Rights: Certified Standing Orders Prevail over Private Agreements

  In a significant ruling, the Supreme Court of India upheld the rights of workers to permanency, stating that certified Standing Orders have statutory force and cannot be superseded by private agreements. The judgment was delivered by Justice Sanjay Karol, who quashed and set aside the previous award of the Central Government Industrial Tribunal and the judgment of the High Court of Bombay.

The case, Bharatiya Kamgar Karmachari Mahasangh vs. M/s. Jet Airways Ltd., revolved around the employment status of approximately 169 workmen engaged on fixed-term contracts by the respondent company. The workmen claimed that despite completing the required days of service, they were treated as temporary employees and demanded reinstatement with full back wages.

Justice Sanjay Karol, in his judgment, emphasized the importance of certified Standing Orders and their statutory nature, stating, “The Act being the beneficial legislation provides that any agreement/contract/settlement wherein the rights of the employees are waived off would not override the Standing Orders.” The court ruled in favor of the workers, declaring them entitled to all benefits as per the Bombay Model Standing Order.

The court further clarified that any private agreement or settlement that contradicts the certified Standing Orders would be invalid and non-binding, unless it is more beneficial to the employees. The judgment reiterated the role of Standing Orders in protecting the rights of workers and ensuring fair terms and conditions of employment.

This landmark decision reaffirms the significance of statutory protections for workers and serves as a reminder to employers that they cannot override workers’ rights through private agreements. The ruling sets a precedent for cases involving the Industrial Employment (Standing Orders) Act, 1946, and aims to safeguard workers’ interests in industrial establishments.

With this verdict, the Supreme Court has affirmed its commitment to upholding workers’ rights and ensuring that the law prevails over private arrangements that may compromise the interests of the workforce. The judgment is expected to have far-reaching implications on the interpretation and application of labor laws in India.

 Date of Decision: July 25, 2023

 Bharatiya Kamgar Karmachari Mahasangh   vs M/s. Jet Airways Ltd.     

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