Supreme Court Upholds Workers’ Rights: Jet Airways Ordered to Grant Permanent Employment
The Supreme Court of India, in its landmark judgment in Bharatiya Kamgar Karmachari Mahasangh vs. M/s. Jet Airways Ltd., ruled in favor of contractual workers, reinforcing their right to permanency under the Bombay Model Standing Orders. The Court quashed prior rulings that denied their claim despite their continued employment for over 240 days, ensuring justice for the affected workers.
Background of the Case
The appellant, Bharatiya Kamgar Karmachari Mahasangh, represented 169 temporary workers employed by Jet Airways Ltd. in various capacities such as loaders, drivers, and operators. These workers were engaged on fixed-term contracts, which were repeatedly renewed, allowing the employer to evade permanency obligations. Upon completion of 240 days of continuous service, these workers were legally entitled to be made permanent. However, the airline terminated them upon contract expiration, denying them permanency.
The workers filed a dispute before the Central Government Industrial Tribunal (CGIT), seeking regularization and associated benefits under labor laws. The Tribunal ruled against them, citing Section 2(oo)(bb) of the Industrial Disputes Act, which allows termination at the end of a fixed-term contract. The Bombay High Court upheld this ruling, leading to an appeal before the Supreme Court.
Legal Questions Before the Supreme Court
- Did the Bombay Model Standing Orders apply to Jet Airways employees?
- Was the private 2002 settlement between the employer and another union legally binding on all employees?
- Did the employer circumvent labor laws by exploiting fixed-term contracts?
- Were the workers entitled to permanency after completing 240 days of service?
Arguments by the Appellant
The workers’ union argued:
- The affected employees had completed 240 days of uninterrupted service, entitling them to permanency under Clause 4C of the Bombay Model Standing Orders.
- The 2002 private settlement between Jet Airways and another union could not override statutory provisions protecting workers.
- Fixed-term contracts were a tool to circumvent legal obligations, as the nature of work was permanent.
- The Central Government Industrial Tribunal and the Bombay High Court failed to consider the statutory framework favoring employees.
Arguments by Jet Airways
The employer countered:
- Jet Airways was governed by Central Government Standing Orders, not the Bombay Model Standing Orders.
- The employees had voluntarily relinquished their claim for permanency under the 2002 settlement.
- Since contracts were fixed-term, their expiry did not amount to retrenchment under Section 2(oo)(bb) of the Industrial Disputes Act.
Supreme Court’s Observations
The Court, comprising Justices Abhay S. Oka and Sanjay Karol, delivered a well-reasoned judgment favoring the workers.
1. Bombay Model Standing Orders Apply
“The appropriate government for Jet Airways, considering its operational headquarters and employee strength in Maharashtra, is the State Government. Therefore, the Bombay Model Standing Orders apply.”
2. Private Settlements Cannot Override Statutory Rights
“Standing Orders have statutory force. Any settlement that denies a legal right enshrined in labor laws is unenforceable.”
3. Workers Are Entitled to Permanency
“Any workman who has completed 240 days in a year is entitled to be made permanent. The employer’s act of renewing fixed-term contracts to bypass this requirement is an unfair labor practice.”
4. Tribunal and High Court Erred in Law
“Both forums wrongly relied on Section 2(oo)(bb) without considering the statutory protection under the Bombay Model Standing Orders.”
Final Judgment
- The Supreme Court quashed the CGIT and Bombay High Court orders.
- Jet Airways was directed to regularize all affected employees and grant them associated benefits.
- The airline was instructed to immediately reinstate eligible workers with continuity of service.
Broader Implications of the Judgment
- Protects contract workers from exploitation in industries where fixed-term employment is used to deny benefits.
- Affirms the supremacy of Model Standing Orders over private settlements.
- Prevents corporations from engaging in unfair labor practices.
- Reinforces the role of the judiciary in protecting workers’ rights.
The verdict sets a precedent for contract workers across industries, affirming their right to fair treatment under labor laws.
Petitioner Name: Bharatiya Kamgar Karmachari Mahasangh.Respondent Name: M/s. Jet Airways Ltd..Judgment By: Justice Abhay S. Oka, Justice Sanjay Karol.Place Of Incident: Mumbai, Maharashtra.Judgment Date: 24-07-2023.
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