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Informist, Friday, Jun. 12, 2026

 

NEW DELHI – The Bombay High Court has stayed an Additional Commissioner of Labour, Pune division's order directing that the age of retirement of certain categories of employees of Cummins India Ltd. shall not be less than 60 years. The labour commissioner's order is stayed till the next date of hearing on Jul. 7, said the high court. Cummins India had said that the company and Kirloskar Cummins Employees' Union had earlier mutually agreed on 58 years as the retirement age for the employees, however, the union had now pushed for 60 years.  

 

In view of the high court's order, the labour commissioner's order continues to be inoperative and, accordingly, there is no material financial impact on the company at this stage, said Cummins India in a stock exchange filing. In this regard, the legal position prevailing at the time of the company's earlier disclosure continues to remain unchanged, it said.  

 

Cummins India had said that the terms and conditions of service of their workmen employed are governed by their contracts of employment, the provisions of the Model Standing Orders framed under the Industrial Employment (Standing Orders) Act, 1946 and the various settlements signed by it from time to time, latest being an agreement with Kirloskar Cummins Employees' Union. In 2024, a settlement was reached between the parties wherein the age of retirement was also mentioned as 58 years and the additional pension scheme amount was increased, said Cummins India. This age of retirement is a reiteration of various settlement agreements signed between the parties from 1986, said the company.

 

Cummins India said that the employees had joined the company by accepting the term of superannuation as 58 years in the letter of appointment. Thus, it is a service condition for them, which has not been modified and has remained in practice since long, said the company.

 

The union had demanded the modification of the age for retirement or superannuation of the workmen as sixty years or sixty five years as it is globally accepted everywhere. The union cannot be permitted to compel and arm twist the company into agreeing on something which is contrary to what has been agreed upon between the parties, said Cummins India.  After the labour commissioner's order favouring the union, Cummins India moved the Industrial Court in Pune. The labour commissioner failed to consider that when the age of superannuation has been fixed bilaterally by agreement, settlement and award between the employer and the workmen, it does not have any power and authority in law to pass the order for increase in retirement age. 

 

The Industrial Court noted that for another set of employees working in the company, the age of retirement was changed in the year 2006 from 58 years to 60 years, keeping the age of associates as 58 years. Hence, it would be unjust to adopt different criteria for age of retirement for two sets of employees working in the same company, said the industrial court, upholding the labour commissioner's order. Challenging the Industrial Court's order, Cummins India moved the high court.

 

At 1150 IST, the shares of Cummins India were up 0.8% at INR 5,599.50 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Deepshikha Bhardwaj

 

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