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Thursday March 30, 2006

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Landmark SC Labor Judgments

 

The Supreme Court (SC) made three landmark judgments that together would vastly change how labor is viewed and used by the Government. Indian Labor laws are outdated and are viewed as being restrictive and a hurdle to investments and development. Governments in general and State Governments in particular, have increasingly use labor laws, means, and the communist philosophy that defines it to gain political mileage.

In the first case, responding to a writ by the Rajasthan State Government challenging the verdict of the High Court that it needs to reemploy labor that has no use for, the SC affirmed the State Government's right to abolish any posts to deal with increasing globalization and changes in the country. Furthermore, it also said that "there exists no right on the employees" to seek reemployment unless there their termination was illegal.

 

In the second case, the SC went on further to say that the Government cannot force an employer to keep an employee against his will or business need. The SC overturned a Kerala High Court judgment stating that a policy decision of the Government that affects its employees must ensure rehabilitation of the workers it has impacted.

In a third case, the SC quickly threw out a Public Interest Litigation (PIL) asking it to force the State Governments and Union Territories to accept the reservation policy while filling vacancies in the police force. The petition argued that apart from reserving position for the Scheduled Caste and Tribe in the 121,000 vacancies in the various police forces, there should be relaxation of eligibility rules, examinations, and criteria.

Reading the three judgments together, the SC has essentially dispelled many myths in Indian policy making circles.

Firstly, it exploded the myth that once a plan starts, the Governments cannot stop or cancel it. This is an argument used by many large Government apologists to continue unsustainable programs or public sector units that continue to loss money.

Secondly, Governments can layoff employees when they need to provide they do not break the law in the process of layoff. The common assumption is that once employees are hired, they have a lifelong contract with the Government irrespective of need, performance, or expense.

Thirdly, the Government's policy on laying-off employees has to ensure their rehabilitation. This is the humane aspect of the ruling that while Governments has the right to layoff employees; they have to ensure that those employees get compensation, alternate employment, or training. Many companies and Governments in the world follow this practice.

Fourthly, Governments do not have a right to force employment when businesses do not want a candidate. This is an important ruling that will affect regional linguistic demands being raised by myopic politicians to force a preference on companies. Former Dharam Singh's Government in Karnataka used this as a stick to beat up corporate representation when they demanded better infrastructure arguing that Kannadigas are not being hired adequately in Information Technology and Biotechnology companies.

Fifthly, the reservation policy cannot be uniformly applied at will to all fields of life and to employment in particular. This ruling will also stem the unbridled enthusiasm with which the United Progressive Government and its partners have been following both at the Federal and State level to bring in divisive legislation based on caste, religion, and sex and across all spheres. They want reservation in the judiciary, army, police, and private sector.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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