Office of the Chief Labour Commissioner

Office of the Chief Labour Commissioner

Subject :Economy

Section :Unemployment

Context:

The Office of the Chief Labour Commissioner noted that the non-compete clause in the contract of Infosys employees-has been alleged to be unethical and illegal by the complainant.It added that a joint discussion will be held on the issue on Thursday.

Concept:

Non-compete clause in the contract of Infosys employees-after resigning, an Infosys employee cannot work, for a period of six months, with one of the named rival companies on a client he or she would have serviced in the preceding 12 months before quitting.

Non-compete clause in India:

Non-compete clauses are enforceable only during the term of employment and not thereafter.

Section 27 of the Indian Contract Act 1872 which declares as void any agreement that restrains a person from exercising a lawful trade or business. While there are exceptions to this rule for restraints that are ‘reasonable’, courts have consistently refused to enforce non-compete clauses beyond the term of employment.

The Office of the Chief Labour Commissioner:

The organization of the Chief Labour Commissioner(Central) also known as Central Industrial Relations Machinery is an apex organization in the country responsible for maintaining harmonious industrial relations mainly in the sphere of central Government.

It was set up on the recommendation of the Royal Commission on Labour in India, the organization was set up in April, 1945 by combining the former organizations of the conciliation Officer (Railways), Supervisor of Railway Labour and the Labour Welfare Advisor. It was then charged mainly with duties of prevention and settlement of industrial disputes, enforcement of labour laws and to promote welfare of workers in the industrial establishments falling within the sphere of the Central Government.

History

• It started with a small complement of staff comprising Chief Labour Commissioner(C) at New Delhi, 3 Regional Labour Commissioners at Bombay, Kolkata & Lahore, 8 Conciliation Officers and 18 Labour Inspectors.
• The Conciliation Officers and Labour Inspector were re-designated as Assistant Labour Commissioner and Labour Enforcement Officer .
• The organization was further augmented gradually consequent upon increase in the number of labour legislations in the post-independence period, increased industrial activity in the country and growing responsibilities of the organization by establishing regional offices at Kanpur, Dhanbad, Madras, Asansol, Ajmer, Hyderabad, Bhubaneshawar and an office of Dy.CLC(C) at Dhanbad.
• In order to secure better conciliation, preventive mediation and more effective enforcement of labour laws, a scheme to further strengthen the Central Industrial Relations Machinery was approved under the sixth five-year plan. As a result, three more regions with headquarters at Guwahati, Chandigarh and Bangalore were created during 1981-82.
• Three more new regions with Headquarters at Ahmedabad, New Delhi and Cochin were created under the seventh five-year plan in 1987-88.
• Two new regions Dehradun and Raipur with headquarters at Uttranchal and Chattisgarh respectively were created in the year 2005 by reallocating officers and staff within the existing strength of the officers and staff .