Delhi High Court Says Place Of Employment Determines Labour Dispute Jurisdiction

New Delhi, Jul 1 (KNN) The Delhi High Court has held that the territorial jurisdiction in employment disputes is determined by the place where an employee worked and where the alleged termination occurred, and not by the location of the employer's registered or administrative office.

Dispute Arises Over Labour Court Jurisdiction 

The ruling came in Rajeshwar Dayal Aggarwal vs Enicar Machine (India), a case concerning the termination of a workman who sought reinstatement and back wages before the Delhi Labour Court.

Rajeshwar Dayal Aggarwal, who had worked as a clerk-cum-sales purchase assistant with the company since 1978, argued that the dispute could be adjudicated in Delhi as the employer maintained its registered office there.

However, the court noted that throughout his employment, the workman was posted in Faridabad, Haryana, where he performed his duties, reported to his supervisors and was ultimately served with the termination order.

Labour Court Declined Jurisdiction 

The Labour Court had earlier declined jurisdiction, holding that the employment relationship and termination both arose in Faridabad, making the Haryana government, and not the Delhi government, the appropriate authority under the Industrial Disputes Act.

Challenging this decision, the workman approached the Delhi High Court.

High Court Reaffirms Place of Employment Principle 

Upholding the Labour Court's order, the High Court reiterated that territorial jurisdiction in labour disputes depends on the situs of employment and the place where the cause of action arose.

The court observed that the existence of a registered or administrative office in another state does not, by itself, confer jurisdiction on labour courts in that state.

Examining the facts, the court found no functional connection between the employee's work and Delhi, noting that his appointment, posting, supervision and termination were all linked to Faridabad.

The judgment reinforces the legal principle that labour disputes must ordinarily be adjudicated in the jurisdiction where the employment relationship existed and where the alleged termination took place, rather than where the employer maintains its corporate office.

(KNN Bureau)