In a setback to trade unions, the Karnataka High Court on Thursday rejected their petitions challenging the legality of amendment made to the labour law extending flexible hiring facility under the ‘fixed-term workmen’ (FTW) policy to all industries.
The court held that there was nothing wrong in the process followed by the State government in amending the Karnataka Industrial Employment (Standing Orders) Rules, 1961, nor is creation of new category of employment under FTW contrary to the provisions of the Industrial Disputes Act.
A Division Bench comprising Chief Justice Abhay Shreeniwas Oka and Justice Ashok S. Kinagi passed the order while rejecting the petition filed by Karnataka Industrial and Other Establishments’ Employees Federation.
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The petitioner had questioned the legality of the notification issued by the government in June making changes to rules to expand the facility of FTW to all industries as it was available only for the apparel manufacturing sector earlier.
After perusing the records maintained by the government, the Bench declined to accept the contention of the petitioner that no consultation was held with the trade unions before amending the rules. The Bench said the process followed by the government adheres to the manner of holding consultation prescribed by the apex court while noticing that the objections filed by the trade unions to the draft rules were put up by the Commissioner of Labour before the government, which at three levels, Additional Chief Secretary (Labour), Minister for Labour and the Chief Minister had considered the common objections raised by the unions before approving the FTW rule.
Also, the Bench said that the facility of FTW does not violate the provisions of the Industrial Disputes Act as it creates a separate employment category on contract basis having pay and other facilities payable equal to permanent employees except that period of employment would not get extended. The Bench also found no merit in the contention of the petitioner that new law violates constitutional provisions.
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Employment under the FTW category allows flexibility for industries to hire and fire employees easily. It is seen as more flexible than the contract system, as it enables industries to hire people when a necessary arises and terminate their services when the necessity ceases to exist.