EMPLOYEE AND WORKMAN

Section 3 (23) "personnel" includes the directors, managers, key managerial personnel,
designated partners and employees, if any, of the corporate debtor Commented [HK1]: Employees come under the definition of
Personnel

Section 3(36) "workman" shall have the same meaning as assigned to it in clause (s) of section 2
of the Industrial Disputes Act, 1947;

Section 2(s) defines workman as any person (including an apprentice) employed in any
industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory
work, for hire or reward, terms of employment be express or implied and includes any
such person who has been dismissed, discharged or retrenched in connection with, or as a
consequence of dispute. It excludes persons employed in army/Navy/Air Force/Police and those
employed in mainly managerial or administrative, supervisory capacity and drawing wages of
more than INR 6500.

Gobind v. Presiding Officer, Labour Court and Another (2012)ILR 2Punjab and
Haryana637

Workman can be part-time, full time, casual, daily wage. Commented [HK2]: NO SUCH THING FOR EMPLOYEE

SUPERVISORY WORK AND WORKMAN

Delta Jute & Industries Ltd. Staff Association and Ors. v. State of West Bengal and Ors
[2015(145)FLR105]

A person working in purely managerial and/or supervisory capacity does not fall within the
definition of workman under ID Act. However, when a person performs multifarious functions,
the nature of the main function performed by the person has to be considered to determine if the
person is a "workman." The designation of a person is not a conclusive factor in determining the
nature of work. Even if a person is designated as supervisor, the employer has to prove that his
work and his duties were in nature of a supervisor

The Workmen v. Greaves Cotton & Co. Ltd. & Ors 1972 SCR 1373

A supervisor earning less than 6,500/- may also raise an industrial dispute for an increment in
wages which may eventually exclude him from the definition of workman.
 In Chintaman rao vs. state of Madhya Pradesh AIR (1958) SC 358 it was held that there should
be a contractual relationship between master and servant i.e. the workman is under the
supervision, direction and control of his master.

In Standard Chartered Grindlays Bank Retired Employees Association v. Union of India 2007 II
LLJ 887 (Cal) it was held that a retired employee can be included in the term "workman" as
defined in section 2(s) of the Industrial Disputes Act, 1947 and can be a party to an industrial
dispute.

· In Reserve Bank of India and Others vs. C.N. Sahasranaman and Others (SUPREME COURT
OF INDIA)
it was held that employees are fully covered by the definition of the term "workman" in section
2(s) of the said Act.

In Ved prakash gupta vs. m/s delton cable India (p) ltd., AIR 1984 SC 914 it was held that a
person employed in managerial capacity or administrative capacity is not a workman.

Thus, it can be said that an employee is not a workman and is not included with the ambit of
Industrial Dispute Act 1947, when,
· The person is not employed in an industry,
· His work is be for hire or reward and is free of charge,
· He is not employed to do the type of work specified in the definition,
· There is no contractual relationship of master and servant. Such relationship exist when the
workman is under supervision, direction and control of the master.
· A person employed in a supervisory work and drawing wages in excess of Rs. 1600/- p.m.
· He is within the specific category of employees as mentioned in section 2(s) of the Act.

the code provides that all employees and workmen must be considered within the ambit of the
definition of operational creditors and any due arising in the course of employment shall be
considered as operational debt.

Priority of payment of debts

Section 53 of the Code contains provisions for priority of payment of debts from the proceeds
from the sale of the liquidation assets. It reads that notwithstanding anything to the contrary to
any law for the time being in force, while distributing the assests, the order of priority as
mentioned in Section 53 has to be followed.

Sub-section (1) clause (b) mentions that the workmen’s dues for the period of twenty four
months preceding the bankruptcy commencement date shall be treated equally with the debts
owed to secured creditors. Clause (c) provides priority to wages and unpaid dues owed to
employees other than workmen of the bankrupt for the period of twelve months preceding the
bankruptcy commencement days over the dues unpaid to Central or State Governments and
unsecured debts

'Employees' rights have been dramatically strengthened and as a result, if indeed there is a
default event, employees are first in line to be able to secure their rights. (Section 178 IBC)

https://www.caclubindia.com/articles/empowerment-of-employees-insolvency-bankruptcy-code-
31209.asp

https://corplexia.com/rights-of-employees-and-workmen-under-ibc-road-to-recovery/

http://www.legalserviceindia.com/legal/article-669-rights-of-employees-of-insolvent-companies-under-
the-insolvency-and-bankruptcy-code-
2016.html#targetText=Rights%20of%20Employees%20of%20Insolvent,Insolvency%20and%20Bankruptc
y%20Code%2C%202016&targetText=The%20Insolvency%20and%20Bankruptcy%20Code,as%20well%20
as%20operational%20debt.

http://www.mondaq.com/india/x/434328/employee+rights+labour+relations/Workman+Under+Industr
ial+Disputes+Act+1947

http://www.legalservicesindia.com/article/422/Which-employees-do-not-fall-under-the-ambit-of-
Industrial-Dispute-Act,-1947.html