An employee terminated from this service, where will the territorial jurisdiction of court lie 1) where the employee was posted when he received termination order ;OR; 2) the registered office where decision for termination was taken
Both the labour courts will have jurisdiction 1) where the employee was last posted 2) the place where the decision of termination took place.
The case pertains to the fact that the appellant was employed by the Company in Aurangabad then transferred to Silvasa in Gujarat, he was again transferred to Pondicherry, when the decision to close down the unit at Pondicherry was taken at the registered office in Aurangabad and consequent upon that decision only the appellant was terminated.
The Supreme Court[1] held that “it cannot be said that there is no cause of action at all in Aurangabad. The decision to terminate the appellant having been taken at Aurangabad necessarily part of the cause of action has arisen at Aurangabad. We have no quarrel that Labour Court, Pondicherry is within its jurisdiction to consider the case of the appellant, since he has been terminated while he was working at Pondicherry. But that does not mean that Labour Court in Aurangabad within whose jurisdiction the Management is situated and where the Management has taken the decision to close down the unit at Pondicherry and pursuant to which the appellant was terminated from service also does not have the jurisdiction. In the facts of this case both the Labour Courts have the jurisdiction to deal with the matter.”
[1] Nandram versus M/S Garware Polyster Limited, CA No. 1409 of 2016
DUCTUS EDGE 