Court implicates UK firm for deserting staff

Ten days after British Telecom firm Belair Communications Private Ltd abruptly shut down its captive call centre in Bangalore sacking 93 employees without settling their salaries, Karnataka's labour court has decided to file criminal charges against the BPO promoters.

"We have already sent legal notices to the company proprietors at both their offices in Bangalore and the UK. Since their Bangalore office has been closed down, it becomes imperative for the UK office to respond to our notice. Also, we are in the process of filing criminal charges against them for deserting the employees," Karnataka's Labour Welfare Officer (section III) Nagaraj told Business Standard.

According to him, this is the first such case involving a BPO in Karnataka.

"Though Belair is an international firm, it is bound by certain local laws. The Industrial Dispute Act 1947, which covers all sectors, states that any firm with less than 100 employees should settle the benefits and perks of its staff within seven days of closure. Since the company has violated this fundamental rule, it will face criminal charges," he added.

The company has been given a week's time to respond to the notice. "If Belair proprietors fail to respond to the notice, we will contemplate serious action. Not responding to a notice means scant respect for Indian law. Since the firm is registered with the Software Technology Parks of India (STPI), we will recommend its blacklisting. In future, they will not be able to do business in India," Nagaraj explained.

Another step that the labour department is contemplating is issuing a warrant against the company proprietors.

"This is a time-consuming and lengthy process. We hope company representatives will communicate with us. If they neglect our notice, as a final step, we may seek the assistance of the Union government to settle the case," he stated.

The labour court is acting on a complaint filed by the Union for ITeS professionals (Unites). The court is in the process of registering the statement of the sacked BPO employees.

Belair, which began operations a year ago, has not specified any reason for terminating the services of employees or closing down its operations.

The company reportedly closed down on June 10 after giving employees oral notice. In its complaint, Unites alleged that the firm had not paid salaries and compensation to employees since May.

This is the third firm to close its Indian operations in the last two months. British energy firm Powergen had also shut down its Indian BPO operations.

Last month, IT major Apple Computer decided to close its Bangalore development centre.