Workmen of Firestone Tyre and Rubber Co. of India v. Firestone Tyre and Rubber Company
- 2022-02-17
Citation: 1976 AIR 1775
Bench: Untwalia, N.L
FACTS:
Two general strikes at the company had resulted in the short supply of tyres. As a consequence, the company had to lay-off 17 of its workmen in its Delhi unit and also some of the workers in its Madras Distribution Office and it did so without paying wages or compensation for the period of the lay-off.
An industrial dispute was raised and referred to the tribunal during the period of the lay-off. The Additional Industrial Tribunal, Delhi held that the workmen were not entitled to any layoff compensation. The workmen in Madras filed petitions for computation of wages for the period of the lay-off before the Additional Labour Court, Madras. The presiding officer of the Court held that the lay-off was justified and the petitions were dismissed.
The case was thereafter brought to the Supreme Court by special leave.
ISSUE:
Whether the action of the management to lay-off 17 workmen with effect from 5th Feb. 1968 was illegal and/or unjustified, and if so, to what relief the workmen are entitled.
JUDGMENT:
The Court found that the employer has no inherent power to lay-off that is provided under the act unless it is specified in the standing orders. When there are two conflicting interpretations that are possible, considering that the act was a beneficial legislation, the interpretation favourable to the employees would be chosen and so the court held that the employees would be entitled to the relief.
