Kansai Nerolac Paints Limited, one of the largest paints manufacturers in India, suffered a setback recently when the Industrial Tribunal bench in Ahmedabad termed the “shifting” of its plant from Vatva as “closure” as a result of which the company will have to pay the salary and other benefits to its employees at the unit as per rules.
According to a press release from Amrish Patel, the lawyer of the employees, the Japanese company had its manufacturing unit in Vatva, besides in Haryana, Tamil Nadu, Uttar Pradesh and Maharashtra.
In September 2007, the company asked all the employees at its Vatva unit to shift to its Haryana plant, with a condition that the names of those who did not join in its Haryana unit would be struck off the employees’ register.
The employees challenged the decision at the tribunal contending that the company was effectively closing down its unit in Vatva.
“The tribunal, in its order dated December 11, has held that the company’s decision for closure under the garb of shifting was illegal as per labour laws. With this, the company will have to pay salary and other benefits to the workers since September 2007 till date,” Patel said.
The company’s unit in Vatva remains shut since 2007.