The Kerala High Court has set aside the circular issued by the FACT management directing to stop payment of revised additional dearness allowance (DA) instalments due to its workers. The court made it clear that the circular issued by the general manager has to be confined to executives and non-unionised supervisors of central public sector enterprises.
The court issued the order on the petition filed by George Thomas, general secretary, FACT workers organisation, and others against the circular issued on November 25 freezing the DA of employees. The company had frozen the revision of DA due from July 1, 2020, to June 30, 2021, under citing the Covid-19 situation.
According to the petitioners, the circular was issued without complying with the mandates and provisions under the Industrial Disputes Act, 1947. The court also asked the trade unions and the management to cooperate with the conciliation proceedings before the Regional Labour Commissioner on the repayment of any amount already recovered based on the circular.