Does Your Salary Determine Your Employment Rights? What Every Employee Should Know

A recent Delhi High Court ruling made headlines when it declared that airline pilots earning lakhs per month still qualify as “workmen” under the Industrial Disputes Act. The December 2024 case challenged a common assumption: that high salaries automatically mean fewer legal protections.

For thousands of employees across Karnataka and India, this raises critical questions about disciplinary action against employee rights. If your company initiates termination proceedings, do you have legal recourse? Can you challenge wrongful dismissal? Understanding your status as a workman becomes crucial when facing disciplinary action against employee situations. The answer depends on whether you qualify as a “workman” under Indian labour law, and it is not as simple as you might think.

The Workman Question That Confuses Everyone

Section 2(s) of the Industrial Disputes Act, 1947 defines a “workman” as someone employed to do manual, unskilled, skilled, technical, operational, clerical, or supervisory work for wages. This definition matters tremendously because only workmen get access to labour courts, protection against unfair dismissal, and specific grievance mechanisms.

The confusion arises from the exceptions. The law excludes people employed mainly in managerial or administrative capacity, and those in supervisory roles earning above 10,000 rupees monthly.

Many employers and employees mistakenly believe that high earners automatically fall outside workman protections. A software engineer earning 150,000 rupees monthly assumes they cannot approach a labour court. A senior pilot earning in lakhs thinks wrongful termination claims do not apply to them.

The Delhi High Court’s recent ruling in King Airways vs Captain Pritam Singh definitively rejected this assumption. The court held that pilots, despite earning substantial salaries and holding the designation of Captain or Pilot-in-Command, are workmen because they perform highly skilled technical work. Their primary function is flying aircraft, not managing the company.

The judgment stated clearly: “The salary component that is being raised is simply a red herring. It cannot be relied upon to determine whether a person is, in the first instance, a workman.”

What Actually Determines Workman Status?

Courts have established that determining workman status requires examining the actual work performed, not the job title, designation, or salary package.

The Nature of Primary Duties

If your main work involves technical, operational, clerical, or skilled tasks, you likely qualify as a workman. A software developer writing code performs technical work. A senior accountant maintaining financial records does clerical and technical work. Both could be workmen despite senior designations and high pay.

The test is what you do most of the time. If 80 percent of your day involves technical tasks and 20 percent involves supervising others, courts will likely classify you as a workman doing technical work with some supervisory elements.

Managerial Functions: The Real Exclusion

The key exclusion is managerial work. But what does managerial actually mean in labour law? Courts have defined it narrowly.

Managerial functions include the power to hire and fire employees, conduct disciplinary inquiries independently, make policy decisions that affect the organization’s direction, and approve significant expenditures or contracts.

Simply being called a “manager” or supervising a team does not make you managerial. A team lead who reviews code and assigns tasks to junior developers is not performing managerial functions. They cannot fire anyone. They cannot change company policy. They escalate major decisions upward.

Karnataka Context for Labour Law Compliance

For labour law compliance in Karnataka, companies must carefully evaluate employee classifications. Karnataka has thousands of IT professionals, operational staff, and technical workers who may qualify as workmen despite high salaries.

A Bangalore tech company cannot simply designate someone as “Engineering Manager” and assume that excludes them from workman protections. If that manager spends most of their time coding, reviewing technical specifications, and handling technical escalations rather than making hiring decisions or setting departmental policy, they may still be a workman.

Why Understanding Workman Status Matters for Disciplinary Action Against Employee Cases

Understanding workman status becomes critical when companies initiate disciplinary action against employee procedures. The process differs dramatically based on classification, and knowing where you stand can mean the difference between successful legal recourse and having no protection at all.

For Workmen

If you qualify as a workman, you get substantial procedural protections. The employer must provide clear written charges specifying exactly what misconduct occurred. You must receive adequate time to respond to these charges, typically 48 hours minimum. A proper inquiry must be conducted with an opportunity to present your defense and call witnesses.

Any termination must comply with the Industrial Disputes Act requirements. If the company employs 100 or more workmen (300 under the new labour codes), government approval may be required for retrenchment.

Critically, if the process is flawed procedurally, you can challenge the termination in a labour court. Courts have consistently held that failure to properly communicate disciplinary charges or conduct fair inquiries violates natural justice principles and can invalidate the entire termination process. This makes proper handling of disciplinary action against employee cases essential for employers.

For Non-Workmen

If you do not qualify as a workman, your employment relationship is governed by the employment contract and state Shops and Establishments Acts. These provide fewer protections. Termination typically requires only notice period payment or salary in lieu of notice as specified in your contract.

You cannot approach a labour court for wrongful termination. Your remedies are limited to civil suits for breach of contract, which are more expensive, take longer, and have different standards of proof.

Common Scenarios Where Classification Matters

Scenario 1: The Senior Software Engineer

Rajesh works for a Bangalore IT firm earning 180,000 rupees monthly. His designation is “Senior Engineering Manager.” He writes complex code, reviews pull requests, mentors three junior developers, and participates in sprint planning.

Can Rajesh approach a labour court if terminated? Likely yes. Despite his designation and salary, his primary work is technical. He does not hire, fire, or make policy decisions. His mentoring and sprint planning are operational, not managerial. He is probably a workman.

Scenario 2: The Operations Head

Priya heads operations for a manufacturing unit in Mysore. She approves hiring recommendations, conducts performance reviews with authority to recommend terminations, sets operational policies within her department, and manages a budget of several crores.

If Priya’s employment is terminated, can she file a labour court case? Probably not. She performs genuinely managerial functions with decision-making authority over other employees’ careers and significant company resources. She likely is not a workman.

Scenario 3: The Team Lead Dilemma

Arun leads a customer support team of 15 people in a Bangalore BPO. He assigns shifts, monitors call quality, and reports metrics to senior management. He cannot hire or fire anyone. He escalates disciplinary issues to HR. He earns 85,000 monthly.

Arun’s classification is ambiguous. His work is primarily supervisory and operational. He lacks hiring or firing authority. Courts might classify him as a workman doing supervisory work, especially if the supervision is more operational coordination than actual management.

These scenarios highlight why professional employment law consultancy becomes valuable. Classification is not always obvious, and getting it wrong has serious consequences for both employers and employees.

What Employers Need to Do Differently

For labour law compliance in Karnataka, companies should audit employee classifications now rather than during disputes.

Document Actual Job Responsibilities

Do not rely on designations or salary alone. Document what employees actually do daily. If someone called “Senior Manager” spends 90 percent of their time on technical tasks, their designation is misleading from a labour law perspective.

Review Disciplinary Procedures

Assume any employee might be classified as a workman until proven otherwise. Follow rigorous procedures for all disciplinary action against employee cases: written charges, proper inquiry, opportunity to defend, documented findings. Whether dealing with a team lead or senior manager, treating every disciplinary action against employee situation with proper procedure protects your company from legal challenges.

One procedural mistake can invalidate months of work and expose the company to reinstatement orders and back wages.

Update Employment Contracts

Clearly specify job responsibilities, reporting relationships, and decision-making authority in employment contracts. While contracts cannot override statutory definitions, they provide evidence of intended roles.

Seek Professional Guidance

When facing termination situations, retrenchment plans, or disciplinary issues with employees in ambiguous roles, consult with professionals offering employment law consultancy. The cost of getting classification wrong (reinstatement plus years of back wages) far exceeds consultancy fees.

The Contract Worker Precedent Everyone Should Know

In March 2024, the Supreme Court decided Mahanadi Coalfields Ltd. vs Brajrajnagar Coal Mines Workers’ Union, a case that clarified an important principle: workers performing permanent tasks cannot be kept as contract labour indefinitely.

Mahanadi Coalfields employed 32 workers through a contractor for coal transportation between 1984 and 1994. When the union sought permanent status for these workers, the company initially regularized only 19, claiming the remaining 13 performed “casual” work.

The Supreme Court examined the actual work performed and found no meaningful distinction between the two groups. Both sets of workers did identical tasks in coal handling and railway operations, work that was clearly permanent and perennial in nature. The court ordered regularization of all 13 remaining workers.

This precedent matters because many Karnataka companies, particularly in IT services, have kept workers on rolling six-month contracts for years while they perform core business functions. If the work is permanent and central to business operations, those arrangements now face legal challenges.

For software companies, this creates a critical question: is software development core work? Obviously yes. Can developers be kept on indefinite contract arrangements? Based on this precedent, probably not.

What Employees Should Know About Disciplinary Action Against Employee Rights

If you face disciplinary action against employee proceedings, understanding your potential workman status is the first step toward protecting your rights. Many employees do not realize they have legal protections that can challenge unfair termination.

Assess Your Actual Work

Honestly evaluate what you do most days. Are you primarily doing technical, operational, clerical, or skilled work? Or are you making genuine policy and personnel decisions?

If your work is primarily technical regardless of your designation, you may have workman protections even with a high salary.

Examine the Disciplinary Process

Were you given clear written charges? Did you receive adequate time to respond? Was a proper inquiry conducted? Were you allowed to present your defense? Every disciplinary action against employee must follow these steps for workmen.

If any of these steps were skipped or done improperly, the termination may be legally vulnerable even if the underlying misconduct allegations were true. This is why documenting every aspect of disciplinary action against employee proceedings matters so much.

Know Your Deadlines

If you believe you are a workman and were wrongfully terminated, you typically have limited time to raise an industrial dispute. The exact timeline varies, but acting quickly preserves your options.

Document Everything

Keep copies of your employment contract, job description, performance reviews, salary slips, and any disciplinary communication. This documentation becomes critical evidence if you challenge the termination.

The Broader Implications

The Delhi High Court’s pilot case is not an isolated ruling. It reflects a consistent judicial trend toward protective interpretation of labour laws.

Courts recognize that modern employment has created complex roles that do not fit neatly into categories written in 1947. A software architect, a data scientist, a senior pilot: these jobs did not exist when the Industrial Disputes Act was drafted.

Rather than deny protections based on modern salary levels, courts focus on actual work performed. This approach ensures that India’s beneficial labour legislation remains relevant even as the economy evolves.

For Karnataka specifically, with its concentration of technology companies, startups, and manufacturing units, proper classification of employees is not just a compliance checkbox. It fundamentally affects how companies structure operations, manage performance, and handle disciplinary action against employee situations. Whether you are an employer ensuring compliance or an employee understanding your rights, knowing these distinctions is critical in today’s evolving workplace.

Quick FAQ

Q1: If I earn more than 10,000 rupees monthly in a supervisory role, am I automatically not a workman? 

Ans. No. The 10,000 rupee threshold only applies to people in supervisory roles. If your primary work is technical, operational, or clerical, you may still be a workman regardless of salary. The threshold is not the sole determining factor.

Q2: My designation is “Manager” but I cannot hire or fire anyone. Am I a workman? 

Ans. Possibly. Courts look at actual functions, not designations. If your work is primarily technical or operational without genuine managerial authority over personnel or policy, you may qualify as a workman despite your title.

Q3: Can a company refuse to follow proper disciplinary procedures by claiming I am not a workman? 

Ans. Companies should follow proper procedures for all employees regardless of classification, but they are legally required to do so for workmen. If there is any doubt about your status, the company risks having the entire termination invalidated if they skip procedural steps. Proper disciplinary action against employee protocols protect both parties and ensure fairness in the process.

Q4: How do I know if my work is “mainly managerial”?

Ans. Ask yourself: Do I have authority to hire, fire, or independently conduct disciplinary inquiries? Do I make policy decisions affecting the organization? Do I approve significant budgets or expenditures? If yes to multiple questions, you may be managerial. If no, you are likely not.

Q5: Where can someone get help determining their classification? 

Ans. Consult professionals offering employment law consultancy who can review your actual job responsibilities, employment contract, and organizational structure to assess your likely classification. This is particularly important before initiating or responding to legal proceedings.