Termination of an employee is also Arguable

SC says that the complaint for termination of an employee is also arguable in the place wherein the management establishes the termination

An employee was working in a company situated in Aurangabad. Later, he was transferred to Pondicherry i.e. company’s branch and in Pondicherry the employee was given the order of termination. The employee approached the Labour Court which stated that his complaint is maintainable. However, the Industrial Tribunal and the High Court noted that the Aurangabad Labour Court have no jurisdiction over the instant matter. Aggrieved, the employee came before the Supreme Court. Supreme Court observed that a complaint against the termination of an employee is also maintainable in the place where the management decides termination. The Court said “the undisputed position is that the appellant was employed by the Company in Aurangabad, he was only transferred to Pondicherry, the decision to close down the unit at Pondicherry was taken by the Company at Aurangabad and consequent upon that decision only the appellant was terminated. Therefore, 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.”