Agreement Between Employees Union and Employer Cannot Override the Model Standing Order

The appeal arose from a judgment of the Hon’ble High Court of Judicature at Bombay. In that judgment, the hon’ble court confirmed the Central Government Industrial Tribunal (CGIT) award.
The case pertains to a commercial airline company (the Respondent) employing approximately 169 workmen under fixed-term contracts. The Appellant, representing the workmen, contended that despite having completed 240 days of service, the company treated them as temporary, contrary to the provisions of the Bombay Industrial Employment (Standing Orders) Rules, 1959, and the enduring nature of their work.
Conversely, the Respondent asserted that a settlement was reached with the Trade Union, wherein the workers relinquished the demand for permanency in exchange for various other benefits. According to the company, this settlement precludes the workmen’s entitlement to permanency.

The case was referred to the Central Government Industrial Tribunal (CGIT), which ruled that the workmen’s plea for re-employment with total back wages lacked validity, as their non-renewal of fixed-term contracts did not constitute reduction under Section 25(oo)(bb) of the Industrial Disputes Act, 1947.

In issue number 1, the Supreme Court held that the Industrial Employment (Standing Orders) Act applies to establishments with 100 or more workmen. The appropriate government for State-controlled establishments is the State Government. The Bombay Model Standing Order is applicable in this case.

For issue 2, The Supreme Court held that certified standing orders have statutory. Any agreement or settlement consistent with the standing orders is effective. Completing 240 days of work entitles a workman to permanency, and such rights cannot be waived through a contract or settlement.

Conclusion

It is a landmark judgment in favor of workers as per the Industrial Disputes Act of 1947. This pronouncement has considered various other decisions to support the voice of workmen. It gives the workmen a collective voice in determining employment terms and conditions.