Ex-employees of Keltron allege denial of benefits

The former employees alleged that the gratuity they received was based on outdated salaries, ignoring the revisions made during their tenure.
Keltron logo
Keltron logo(Photo | LinkedIn)

THIRUVANANTHAPURAM: Retired employees of Keltron have alleged that the company failed to provide gratuity to them as mandated by a Kerala High Court order.

The former employees alleged that the gratuity they received was based on outdated salaries, ignoring the revisions made during their tenure.

The ex-employees, who accused Keltron of making false claims on salary adjustments, expressed concern that the firm was taking the case to the Supreme Court and that they lacked the means to fight the move.

Between 2012 and 2018, the employees received a retrospective pay hike. These benefits were also given to employees who retired after December 1, 2018. Employees who retired between April 1, 2012 and November 31, 2018 were eligible for the benefits as per the court order, as revisions made during their tenure were not considered while paying gratuity.

Out of 166 retired staffers, three moved HC demanding an increase in gratuity and provident fund in proportion to the hike in basic pay. The complaint is that though an HC division bench ordered to provide them the pending gratuity within three months, Keltron refused to follow it.

The complainants alleged that Keltron is planning to move the SC against the HC directive. Upon realising that the HC order can stay relevant in future and foreseeing that current employees will also benefit from it, the firm has decided to approach the SC highlighting financial issues.

When employees’ union representatives raised the issue with the management for resolving it practically through talks, the management (HR & Legal department) allegedly denied their requests saying it was with the government’s approval that the case was being taken to the SC.

“It was the board’s decision to go for settlements the way it was done. The single bench decision was in favour of the company, but changed and went in the employees’ favour when it reached the division bench. Naturally, when there are varying opinions on a single issue, a higher appeal is to be considered,” said the Keltron MD.

“Close to `1 lakh has to be given to each of the three retirees. Considering the company’s profit, it’s a small amount, though the management looks at the issue as revenge on employees. Instead, it is ready to take the matter to the SC, spending more on the case. Officials are trying to delay the payment that they will have to give someday definitely,” said Karakulam Shashi, former president, Keltron Employees Congress Karakulam unit.

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