Labour, Industrial, or Civil Court: Where Should Your Dispute Go?
The Labour Court primarily deals with employment disputes related to issues like unpaid wages and any other payment that is due to the employee under the contract of service or Employment Act 1955. If the employer or employee is dissatisfied with a decision, the affected party may appeal against the decision to the High Court.
The Industrial Court primarily handles cases of unfair dismissal and trade disputes. It handles cases brought by employees seeking reinstatement after being unfairly terminated, as well as trade disputes involving collective bargaining or industrial strikes. If the employer or employee is dissatisfied with a decision, the affected party may appeal against the decision to the High Court.
The jurisdiction of the Civil Courts (Magistrates, Sessions, and High Court) is distinct from the Industrial Court in that the civil court deals with matters related to breach of contract or duty. Some examples include acting in a conflict of interest with the company’s business or breach of fiduciary duties.
Case example: Linda, a 7-month pregnant employee, was terminated by her employee because she had allegedly taken bribes and misused her position in the company. Linda found her termination to be unfair. She wants justice, but she is unsure where to turn. Should Linda go to a Labour Court, an Industrial Court, or file a Civil suit?
Linda can seek remedy for unfair dismissal from all 3 courts but the remedy that is available in these courts differs from one to another.
(i) The remedy available at the Industrial Court is reinstatement or monetary compensation instead of reinstatement (one month of last drawn salary for every year of completed service) and backwages (24 months of last drawn salary for confirmed employees or up to 12 months for probationers)
(ii) Meanwhile, at the Labour Court, the remedy available is limited to the contract or Employment Act 1955. For Linda’s case, if the Labour Court’s finding is that there was no misconduct committed and wrongly terminated, the employee would be only entitled to the salary-in-lieu of notice and maternity allowance.
(iii) The employee may also file a claim at the Civil Court but is only entitled to damages that are limited in the form of contractual payments, such as salary in lieu of notice.
By understanding the remedies available in these courts, employees can make more informed decisions about their next steps, and employers must know the extent of their liability when faced with a claim.
21 October 2024
WRITTEN BY LEENALOCHANA
Find Leenalochana at: www.linkedin.com/in/leena39/