Quick Summary
Question: Are medical representatives “workmen” under Section 2(s) of the Industrial Disputes Act, 1947?
Answer: The Supreme Court said No. Their core job is promoting sales. This is not manual, clerical, supervisory, or technical work as the law requires.
Issues
- Are medical representatives covered by “workman” in Section 2(s)?
- Does the modified definition of “workman” change their status?
- Is their main work promotional sales or some other recognised labour?
Rules
Under Section 2(s), a person is a “workman” only if the person mainly does manual, clerical, supervisory, or technical work. Promotional sales, by itself, does not fit any of these heads.
Facts (Timeline)
Simple Timeline
Arguments
Appellant (Sandoz)
- Medical reps mainly promote sales.
- Promotion ≠ manual/clerical/technical/supervisory.
- So, they are not “workmen” under Section 2(s).
Respondent (Employees)
- Work includes clerical tasks and technical inputs.
- Not limited to promotion; meets Section 2(s) heads.
- Tribunal rightly recognised them as “workmen”.
Judgment
The Supreme Court held that the medical representatives in this case are not “workmen”. Their dominant duty is promotion of sales. This does not fall under the recognised heads in Section 2(s). The Court considered its earlier view in May & Baker while assessing the nature of duties.
The Tribunal’s order was set aside. The Court, however, directed that the complaint be treated as an industrial dispute and referred to the Industrial Tribunal, Bombay. The managements were directed to pay ex gratia ₹1,00,000 to each petitioner, along with bonus as ex gratia, within the specified time.
Ratio Decidendi
To qualify as a “workman”, the employee’s primary and real work must be manual, clerical, supervisory, or technical. If the essence of the job is promotional sales, Section 2(s) does not apply.
Why It Matters
- Clarifies coverage of Section 2(s) for sales-promotion roles.
- Guides HR policies in pharma and allied sectors.
- Shows how courts look at the dominant nature of duties, not labels.
Key Takeaways
Dominant Duty Test
Ask: what is the job mainly about? Here, it is sales promotion.
Section 2(s) Heads
Manual, clerical, supervisory, technical—promotion alone is not any of these.
Precedent Guided
Court followed May & Baker logic on nature of duties.
Mnemonic + 3-Step Hook
Mnemonic: “PROMO ≠ 4” — Promotion is not one of the four heads (Manual, Clerical, Supervisory, Technical).
- Spot the core duty (promotion).
- Match with 4 heads (no match).
- Conclude not a “workman”.
IRAC Outline
Issue: Are medical representatives “workmen” under Section 2(s)?
Rule: Only if main work is manual, clerical, supervisory, or technical.
Application: Their main activity is sales promotion; this does not fit the four heads. Tribunal’s broader view was incorrect in law.
Conclusion: Not “workmen”; complaint to be treated as an industrial dispute for reference; ex gratia granted.
Glossary
- Section 2(s)
- Defines “workman” under the Industrial Disputes Act.
- Promotional Work
- Activities aimed at increasing sales or visibility of products.
- Ex Gratia
- Payment made as a goodwill gesture, not as a legal right.
Student FAQs
Related Cases
- May & Baker (India) Ltd. — Nature of duties test for “workman”.
- Cases on Section 2(s) interpretation in sales-promotion contexts.
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