Bombay High Court directs SpiceJet not to employ new contract workers (for now)

In an interim order passed last week, the Bombay High Court ordered SpiceJet to maintain status quo and not employ any new contractual employee or personnel till February 8 this year, when their plea challenging an order of the Industrial Tribunal will be heard [The Chairman & Managing Director of of Spice Jet Ltd. & Anr. v. India Spice Jet Staff & Employees Association]..The Industrial Tribunal had directed the SpiceJet management to reinstate 463 contractual workers.SpiceJet’s contention was that their contracts had ended on December 31, 2021.They stated that due to the outbreak of COVID, the aviation industry was affected, weakening the company’s financial condition, and they were striving to sustain themselves.It was argued that since these employees were appointed on a fixed-term contract basis which expired, Section 2(oo)(bb) of the Industrial Disputes Act, 1947 would be applicable. Setion 2(oo)(bb) excludes from the ambit of retrenchment, the termination of the service of the workman as a result of the non-renewal of the contract of employment..Justice Ravindra V Ghuge opined that since these workmen have been working, though on contracts of service, for tenures of 24 months under each contract, for about 8-9 years, Section 2(oo)(bb) of the Industrial Disputes Act would not apply. "Insofar as the contention of the management that Section 2(oo)(bb) of the Industrial Disputes Act, 1947 would be applicable to the case of these respondent-workmen, I am afraid that when these workmen have been working, though on contracts of service, for tenures of 24 months under each contract, for about 8-9 years, Section 2(oo)(bb) would have no application," the Court said.The Court directed the parties to maintain status quo and said that no new contractual employees or personnel be deployed. The Court clarified that the staff and employee association was “not to precipitate the issue by filing any application for execution of the tribunal’s order”..The dispute arose after the India SpiceJet Staff & Employees Association served a strike notice in June 2021.The notice was taken before the conciliation officer, before whom it was clarified that their services would automatically come to an end on account of the terms of their appointment letters and not because of termination.The Union approached the High Court in the meantime and the High Court directed them to approach the Central Government Industrial Tribunal for resolving the issue.On an interim application by the Union, the tribunal directed SpiceJet to continue the services of the 493 employees who have been attending to work, which includes the employees of ground-handling services and as named in the list of employees.The order was challenged by SpiceJet before the High Court.After hearing both sides briefly for some time, the Court listed the petition for hearing on February 8, 2022.Justice Ghuge deemed it appropriate for SpiceJet to tender a list of their workmen, who have been termed fixed-term contractual employees, who can be offered work..Advocates Mahesh Shukla and Niraj Prajapati appeared for Spice Jet management.Advocate Jai Prakash Sawant appeared for the association.[Read order]