Grievance Handling Rai Bahadur Diwai~Badri Das V. IT, 1962 ILLJ 366(SC), per Gajendragadkar, J.

and Discipline
Pu11.jab National Bank V. I.T., 1957 ILLJ 455 (SC), per S.K. Das, J.
Rao, E.M. (2004). O.P. Malhotrcr's The Law oflndustrial Disputes, Gth ed. Lexis
Nexis Butterwo~fl~s,
p. 19.
Sinlia G.P. and Sinha, P.R.N. (1 986). Industrial Relatiorrs and Labour Legislution,,
2nd ed. Oxford & IBH, New Delhi.
UNIT 17 DISCIPLINE IN INDUSTRY
Objectives
Afer going througll this unit, you should be able to understand:
the nature, scope and prevention of i~idiscipli~ie
in an industrial setting;
the acts of miscond~~ct
relatcd to duty, discipline and morale; and
tlie process of disciplinary action against an e~nployeeon an act of misconduct.

17.1 Introduction
17.2 Indiscipline: Nature, Scope and Prevention
17.3 The "Red-hot-stove" Rule
17.4 Indiscipline: Nature and Causes
17.5 Individual vs Collective Indiscipline
17.6 Misconduct
17.7 Strict Eufo~~ceriient
of Discipline
17.8 Acts of Misconduct: Classificatiori
17.9 Disciplinary Action
17.10 Charge Slieet
17.1 1 Domestic Enquiry
17.12 Penal Disposal ofthe Case
17.13 I-Iiel-arcliyof Punishments
17.14 Summary
17.1 5 Self-Assess~iientQuestions
17.1 6 Furtller Readings

The expression 'disciplinary action', in its widest amplitude, means "any conditioning
of f~lturebehaviour by tlie application of eitlier rewards or punishments. This
approacli colnprises botli tlie positive and negative actions geared to ensure that, while
on duty, the eliiployees conduct themselves in accordi~igwith the norms of work-
related behaviour. Positive ~notivationalinitiatives include praise, participation and
incentives, whereas negative tecliniques ilivolve punishments such as warning,
censure, suspension, stoppage of increment, reversion and dismissal. Botli the types
of actions aim at:co~~clitio~~iilg
the elnployee behaviour. However, the expression
'disciplinary action' lias over time acquired a special connotation to meall tlie
application of penalties that lead to an inhibition of u~ldesirablebehaviour. In this
sense, it is ge~ierallyuliderstood to be exclusively concerned with negative motivation.
Tliougli a ~iiajorityof employees do conforln to orders, procedures, rules and
regulations, a good nmiiber of them still require the stilnulus generated by
punishments. One of the most difficult tasks of supel-visory personnel is tlie effective
administration of negative disciplinary action.
Grievs~iceI-landling Aims and Objectives
and Discipline
The main aims and ob-jectivesof discipline are:
1) To obtain a willing acceptance ofthe rules, regulations and procedures of an
organisation so that organisational objectives can be attained.
2) To develop among the e~nployeesa spirit oftolerance and a desire to make
adjustments.
3) To give and seek direction and responsibility.
4) To create an atmosphere of respect for human personality and lluman relations.
5) To incrcase the working efficiency and morale of the employees.
6) To impart an elernent of certainty despite several differences in informal
behaviour patterns and other related changes in an organisation.

17.2 INDISCIPLINE: NATURE, SCOPE AND PREVENTION

As the saying goes "prevention is better than cure", it is desirable to focus inore on
preventiveaspects of indiscipline than waiting till the e~nployeesresort to large-scale
violation of the norms of behaviour and then initiating disciplinary action against
them. It should be clearly understood that preventive and curative aspects do not
operate in watertight compai-tments, but co~lstitutetlle obverse and reverse of the same
coin. They are closely inte~hvinedwitli, and influence, each other. Preventive
approaches to discipline should, in order to be effective, be supplemented by curative
measures, which should be laid down in unn~istakableterms of menace. Even Inore
important is thestrict enforcenzent of discipline.

17.3 THE "RED-HOT-STOVE" RULE

The idcal mechanism for enforcement of discip line should remind ofthe red-hot-stove.
A red-hot-stove has four important characteristics: (i) advance warning; (ii) immediate
effect; (iii) consistency; and (iv) impersonal approach.
i) Advance warning: It tell us in advance "don 't tozich nze, you will sz~ffer".
ii) Immediate effect: He, who disregards the warning and ventures to lay his
fingers on it, will get the result insta~ltaneously.
iii) Consistency: Every time we touch it, we get the same result without any let-up.
iv) Impersonal approach: It doesn't play favourites; its functioning transcends the
pairs of love and hatred, friend and foe, etc.; it guarantees tlle fi~ndamentalright
to equality, more dispassionately than any court of law does. Every one who
touches it shall get Ilirnself burnt, regardless of his status and position.
These four cllaracteristicsshould, of necessity, inform any disciplinary administration.
Laxity on the part of management can whittle down the entire process to the ultimate
detriment of the organisation. Even the preventive measures initiated with all the good
intentions will lose their significance in such a dispensation, because tlle employees
are co~lfideiltabout the ineffectiveness of lnanage~nentin enforcing discipline in the
event of violation.

17.4 INDISCIPLINE: NATURE AND CAUSES

Simply defined, 'discipline' means "adherence to the norms of behnviour ". It is a
state of mind consisting ofboth atlitudinal and bellavioural aspects. The environment
30
 in whicl~an individual was brought up, his childhood experiences, the influence ofthe Discipline in Industry
primary group or groups of which he is a member, his personallfa~nilylife, his
successes and failures, his expectations and frustrations - all have avital impact on
his attitude towards discipline. These coupled with work practices and organisational
culture exercise a great deal of influence, one way or the other, 011 his behaviour in the
worlcplace. I t is extremely dirficult, if not totally impossible, to capture the entire
range and variety of factors that cause indiscipline and is even more difficult to draw
generalised inferences of i~niversalvalidity. The co~nplexityof tlie problem is largely
due to the i~npredictableinteraction of individual variables with those ofthe
environment, Even though it is possible to assert in a general way that certain actions
01. stitni~lifsom management may cause an adverse reaction among workmen, stil I, in
avast majority of cases, acts of indisicipline are situation-specific and defy prediction
in precise terms.

17.5 INDIVIDUAL VS. COLLECTIVE INDISCIPLINE

lndividi~alindiscipline is ~nanifestedin deviant behaviour oremployees acting alone
as, for instance, habitual absence, negligence, theft, insubordination, disorderly
behaviour, li.aucl, tarcliness and the lilce. In a very general sense, acts of individual
indiscipline are relatively simple and are capable of being explained in terms of
causation. Collective indiscipline is more complex both in form ant1 substance and is
often elusive of rational explanation, posing a serious threat to indilstrial peace,
harmony ancl productivity. Cancel-tecl go-slow, illegal strike, militancy and inter-group
altercations culminating in violence can be cited as illustrations of collective
indiscipline.

1.6 MISCONDUCT
The expression 'niisconduct' has not been defined either in the Industrial Disputes
Act, 1947 or in the Industrial Employment (Standing Orden) Act, 1946. The
dictionary meaning of the word 'n~iscondiict'is: "itnpt'oper behaviour; intentional
wrong doing or deliberate violation of a rule of standard of behaviour". In so far as
the industrial employment is concerned, a workman has certain express or implied
obligations toward his employer. Any conduct on the part of an employee inconsistent
with the faithfit1 discharge of his duties towards his employe^. would be treated as an
act of misconcluct. Any breach of the express or implied duties of an e~nployee
towards his employer, therefore, unless it be oftrifling nature, would constitute
misconduct. In industrial law, the word 'misconcluct' has acquired a specific
connotation. It cannot mean inefficiency or slaclcness. It is something far more
positive and certainly cleliberate. The charge of 'misconduct', therefore, is the charge
ofsome positive act or of conduct, wliich would be quite incompatible with the
express andlor impliecl terms of relationship of the employee to the employer. What is
'misconduct' wi I I naturally depend upon the circumstances of each case.' The Labour
Appellate Tribunal laid clown the following criteria for determining whether the act
woiild be an act of ~nisconduct:(i) it is inconsistent with the fulfil1111entof the express
or implied conditions of service, (ii) is directly Iinlced with the general relationship of
employer and employee, (iii) has adirecl connection with the contentment or comfort
ofthe men at worlc, and (iv) has a material bearing on the smooth and efficient
working o f t l ~ concern.
e If tlie answer to anyone ofthe above criteria is in the
affirmative, the act i l l question would amoimt to an act of misconduct. In any case, the
act of misconduct n~usthave some relation with the elnployee's duties to tlie
empl~yer.~
Gricvancc Fiantlling 1) Define Acts of Misconduct in Precise Terms
slid Discipline
As a first step, the acts and omissions, which constitute misconduct should be defined
in as precise terms as possible and incorporated in the standing orders or the service
rr~les.Tlie enumerated 'acts of misdemeanour' are only illi~strative,and can by no
lneans be exhaustive. Nevertl~eless,they should be as comprehensive as possible. The
rules should also lay down detailed procedure for initiating disciplinary action, which
sl~ouldnor~nallyi~lcliidethe mode of charge-sheeting, tile time for submitting
expla~~ation, suspension pending enquiry, do~nesticenquiry, representation of parties,
procedure for examining witnesses/entering evidence and punishments.

2) Communicate
The rules ofdiscipline sl~ouldbe communicated to all the worlcn~en.It is desirable to
si~pplya copy of the Standing Orders (both in English and the vernacular) to each
workman at the time of his joining the organisation. T11e objective is to make the
workers aware of the norms of behaviour as also the acts of misconduct.
Communicatio~~ of the rules of discipline at the tinle of entry serves the important
purpose of 'advance warning' of the "red-hot-stove" rule.

3) Strict enforcement of Discipline

The saying that "there is no bad ~ijorker-, but only a bad manager" is not far from
truth. In a large ~uajorityof instances, it is the managers, by their own o~nissionsand
coinn~issions,transform an otl~erwisegood worker into a bad one. Lack of fairness
and justice while dealilig with employees, dubious standards in administering rewards
and punishments, leilience towards some and severity towards otl~ersin respect of
similar acts of misconduct, and a host of other clumsy practices can foment iudividual
indiscipline. If, for instance, in a given case of misconduct, the ~nanage~nent takes a
lenierlt view of the matter, not because the delinqi~entworkinan deserves it on merits,
but on extraneous considerations, it then becomes a yardstick and a lasting precedent
warranting the same measure of leniency in all future cases in"oiving the same or
similar misconduct. In addition, si1c11dilution would reducetl~eoverall managerial
effectiveness in the long run. If, on the other hand, the management deliberately
appIies differential standards in dealing with the same/siinilar misconduct, it can lead
to a major turmoil of a collective nature.

l d promptly attended to and redressed within a

I~idividualgrievances s h o ~ ~be
reasonable time. A formal ~nachine~y and time-bound procedure for hearing and
redressal of grievances will help in arresting job-related deviant behaviour.

Continuing Education
It is essential that suitable mechanisms are designed and put in place for conti~luous
education of workers. The education process should cover all aspects relating to
ernploy~nentrelatio~lsl~ip, statutory and non-statutory benefits, rights, duties and
obligations of the parties toward each other, discipline, technology, production,
productivity, safety, quality and the like.

17.8 ACTS OF MISCONDUCT: CLASSIFICATION

- -

Misconduct in industrial employment can broadly be dealt with under the following
categories, though this classification is by no means exclusive. A few acts of
misconduct lnay fall under more than one category.
1) Misconduct relating to duty Discipline in Industry

a) Negligence of cloty: An error can be indicative of negligence and the degree of

culpabi Iity may irlclicate tlie grossness of negligence. Acts of gross negligence
may entail serious damage or consequences to the establishment ofthe e~nployer.
b) Ellgaging in worlc similar to that of the employer: In a suitable case, if an
employee is found giiilty of such act of misconduct, it may warrant the penalty of
dismissal.
c) Absei~cewithor~tleave: Absence from the specific place of duty without the
per~nissio~l
of the supervisor would also constitute an act of misconduct relating
to duty.
d) Late attenclsnce: Habitual late attendance can be visited with the punish~nentof
dismissal. 'I-labitual' means co~n~nission
or ornission ofan act on four occasions
in a periocl of twelve months.
e) Strike: Resorting to a strilte in contravention of the provisions of the ID Act,
1947 is a misconduct.
f) Go-slow: Deliberate delaying of production by workmen pretending to be
engaged in the factory is one of the most pernicious practices that discontented or
disgrunlled workmen so~neti~nes resort to. While delaying production and
thereby reducing output, the workmen claim to havc remained employed and thus
to be entitled to full wages. Apart from this, 'go-slow' is liltely to be much Inore
harmh~lthan total cessation of work by strilte. For, while during a strike much
ol'machinel-y can be fully turned off, tluring 'go-slow' tlle ~l~acl~ineryis kept
going on at a retluced speed which is oilen extremely damaging to the machinery
parts. It is a serious misconduct as it is an insidious method of undermining the
stability of a concern.
g) Ghel-ao: It is comparatively a new for111of demonstration. It is the physical
b Iocka tle of a target, either by encirclement or forceable occupation. The 'target'
may be a place or a person or persons, usually the managerial or supervisory
stafforan industrial establishment.

2) Misconduct relating to discipline

Broadly speaking, all acts which tend to clestroy discipline or disturb the peace ant1
good order in the establisl~mentwould a~nountto 'acts subvel.sive ofdiscipline'. The
following acts can be classil?ed as acts of ~niscondi~ct
relatingto 'discipline'.
Rowdy contl~~ct
in the course of worlting hours;
Misbehaviour committed even outside working hours but within the precincts of
the concern and directed towards the enlployees of the said concern;
C o n d ~ ~proved
ct against an employee which would render hi111not wortlly of
e~nployrnent;and more speci fically,
Writing a letter to the director of the company containing offensive remarks
against him;
Beliaviour insulting and insubordination to such a degree as to be incompatible
with the continuance ofthe relation of employel. and employee;
Abusing a superior officer by using vulgar and filthy language;
Preferring a false co~nplaintto police against a superior officer knowing it to be
false with a view to bringing tlie management into humiliation;
The act of wrongfully restraini~lgand confining the manager by workmen with a
view to making him concede to their demands;
Grievance Hatidling e Preventing a superior officer fro111 discharging his duties toward the
and Discipline management;
Constructing a pucca structure in the labour quarters contrary to the directions
of the tna~lage~ne~lt
and the subsequent refusal to dismantle the same in
disobedience to the order of the management;
e Riotous or disorderly bellaviour;
e Damage to the property and/or reputation of the company.

3) Misconduct relating to morality

'Morality' means pal-ticular moral principles or rules of conduct - good and
i~prighteousbeliaviour as, for instance,justice, honesty, modesty, etc. - conduct
conforming to custolns or accepted standards of a civilised society. Acts involving
moral turpitude are such acts which ilivolve grave infringement of moral senti~nentsof
tlie com~nunityor are acts of base vileness and depravity in tlie private and social
duties whicli a man owes to fel low~lzeiiof a society in general, contrary to the accepted
customary rille or riglit and duty between man and man.
o Theft
e Dislloliesty and fraud
e Disloyalty
Corruption
e Moral turpitude:
A particulal. act is said to involve moral turpitude, (i) if the act leading to a conviction
by acrinlinal court is such as coi~ldshock the moral conscience of society in general,
ii) if the motive which led to the act is a base one and iii) if on account of the act
having been co~ninitted the perpetrator coi~ldbe considered to be of a depraved
clzaracter or a person who is to be loolted down upon by the society.
I

Activity A
Make a list of aims and objectives of discipline. Do you think that these aims and
t
objectives are useful i n maintainil~gdiscipline in your organisatioli or ally organisation
you are fa'amiliar with?

17.9 DISCIPLINARY ACTION

On receipt of a colnplaint alleging that an einployee llas committed an act of
misconduct, whicll falls in any ofthe categories mentioned above and as provided for
in the standing orders of the company, the officer designated as the disciplinary
authority may, at his discretioil and subject to his having satisfied that the complaint is
worth pursuing, initiate disciplinary action as provided in tlie standing orders ofthe
company. Briefly, disciplinary action involves the following steps:
 Discipline in Industry
17.10
-
CHARGE SHEET - - - -

Charge sheet is the document, which sets out the alleged acts of omissions and/or
commissions on the part of the workman. In other words, it is a statement of
allegations. The designated officer, who signs the charge sheet, merely comlnunicates
the allegations to the workman. He does not attest to the colnlnission or omission
thereof, as the investigation into the allegations is yet to commence. The charge-sheet
should be precise as to the nature of the misconduct alleged, the place, date and time
at which the act was alleged to have been committed, the consequences ofany such
commission, i.e., the extent of damage to the property of the company or the extent of
injuries caused to any person in the process, and all the relevant details. It should also
make a reference to the corresponding acts of misconduct enumerated in the standing
orders under which the alleged omission or colnlnission falls. The workman should be
given reasonable opportunity to explain to the charges.

. 11
7- DOMESTIC ENQUIRY - - -

Where a workman denies the allegations in response to the charge sheet, and the
management desires to find out the truth of the matter, no action can be taken against
the worl<manuntil and ~ ~ n l ean
s senquiry is conducted into the charges. The domestic
enquiry should be held by an impartial officer, who has no knowledge of the
misconduct and who is not a witness to the misconduct and who is not avictiln of the
misconduct. 'The workman should be given sufficient notice of the date, time and
venue of the enquiry. I-le should be given every opportunity to conduct his defence at
the enquiry by examining his witnesses, if any, including himself and by cross-
examining the management's witnesses. He should be permitted to take extracts of a1 I
the relevant doc~lmentsand statements before the comme~~ce~nent ofthe enquiry so
that he can prepare and organise his del'encc. He should be permitted to take the
assistance of a co-workman or an office-bearer of the bnion to conduct his defence, if
he so desires. The enquiry should be conduct in a Fair manner. The enquiry should be
conducted in can7er0, i.c., in private and should not be open to the public to view the
procceclings.

17.12 FINAL DISPOSAL OF THE CASE

- -- -

Once the enquiry is completed in all respects, the enquiry officer should submit his
report to the disciplinary authority indicating therein whether, on tlie material on
record and on a consideration ofthe evidence adduced by either side, the charges ,
alleged against the workmali have been proved or not. Tlie disciplinary authority
should apply his mind to the facts ofthe case as borne out by the proceedings ofthe
enquiry and tlic findings of the enquiry officer before taking a decision as regards the
quantum of punishment. The punishment sl~oulclin no case be disproportioliate to the
act of lnisconduct alleged and proved, Once a decisioli is taken on the quantum of
punishment, the disciplinary authority should communicate the same to the worklnan
in writing. The punishment takes effect, not when the disciplinary authority took the
decision, but only when it is co~ii~nunicated to the workman concerned.

17.13 HIERARCHY OF PUNISHMENTS

The standing orders /service rules provide for the followi~lgpunishments i n the
ascending orcler of gravity.
1) Warning
2) Censurc
3) Suspension without wages for a period not exceeding 15 days.
Grievaricc Handling 4) Stoppage of increment for a maximum period of three years, if the employee is in
and Discipline a graded scale of pay.
5) Reversion to the next lower grade
6) Dismissal from service.
Where the work~nanadmits the charges unconditionally and seeks pardon of the
management, there is no need to proceed filrther, and the disciplinary aut1101.ity may
straightaway impose any punishment other than dismissal on the strength of the
unconditional admission or, at his discretion, exonerate the worlat-~an.However, if the
misconduct is so grave as to warrant the punisliinent of dismissal, notwithstanding the
unconclitional admission, the disciplinary authority has to hold a for~nalenquiry, so
that the worlunan does not retract from the written explanation at a later stage.
Activity B
J3riefly explain what kind of disciplinedo you think that could enhance the overall
performance ofthe organisation and why?

17.14 SUMMARY
Absence of discipline tells upon the f~~nctioning of industries and the society.
Importance of discipline has to be realised by all concerned and lnaintenance of
discipline should be joint respo~lsibilityof both the workers and management.
I
DiscipIine is a two-way traffic and a breach of discipline on the part of either party in
an organisation will cause unrest. The approach to managing discipline depends to a
great extent upon managerial philosoplly, culture and attitude towards the en~ployees.
A negative approach to discipline relies heavily 011 punitive measures and in line with i.
the traditional ~nanagerialattitude of "hire and fire" and obedience to orders. On the
other hand, a constructive approach stresses on modifying forbidden behaviour by
taking positive steps like: educating, counselling, etc. The concept of positive
discipline proitlotion aims at the generation of a sense of self-discipline and disciplined
behaviour in all the human beings in a dynamic organisational setting, instead o f
discipline imposed by force or punishment. The approach to the disciplina~yaction in
~llostcases sl~ouldbe corrective rather than punitive. Further, the positive discipline .
maintenance should form an integral part of huina~lresource development efforts of an
organisation.

17.15 SELF-ASSESSMENT QUESTIONS

I) Define discipline. Explain how discipline should be maintained in an
organ isation.
2) Explaiil the process of disciplinary action and its advantages and disadvantages.
3) Explain the procedure of holding domestic enquiry against an erring employee.
- -

17.16 FURTHER READINGS

I
W.M. Aganani Vs Badri Das, 1963 ILLJ 684 (691).(SC) per Gajendragadkar, J.
Workmen of Shalimar Rope Works Ltd. Vs Management, 1953,584 LAT.
 (. r<
d 6.-'(3 I ~ ~ ~ ~ ~ , ~ ~i I I ~ :LII~,IC
1'11I,I:L I d L; 1 t?,~di;iiw~:~
; ~ + , I ~ ~ I ? ~ I ~ I ~ ~ J:I!L(, ; ~ B ~ I I
-
1. Concept, Scope and Approaches to Industrial Relations
2. Evolution of Industrial Relations and Current Developoments
3. Constit~~tionaland Legal Framework of Industrial Relations :
Conventions, ID Act, Trade Union Act

i! r l ~ ' ~ ~i ~L J:t w~ i ~L iU~ ~cf i ~ , " i ~ ; ~ ~ ~ ~

4. Trade Uilioil Development and Fuilctions
5. Trade Union Structure and Recognition
6. Managing Trade Unions
7. Managerial Unioilism
8. Employers' Organisations

'3
.j C~anlliln.cUiveiE:,rlrg;ainniung
9. Nature and Content of Collective Bargaining
10. Negotiation Slcills
11. Issues and Trends in Collective Bargaining

-B ~EIIRR
nslRoglec U nnu~ollvennneull
12. Evolution, Structure and Process
13. Design and Dynamics of Participative Forums
14. Strategies for In~plementingParticipation

5 Ca.iev;numcc I-Ii~snaiiIliiia~
;nunel MdiscipBimc
15. Grievance Function in Industrial Relations
16. Conciliation, Arbitration and Adjudication
17. Discipline in Industry

6 Trcrads iaa EnnpBoyrnneaat Reli~tionns

18. Strategic Employee Relations : Emerging Trends
19. C~llturalAspects of Employinent Relations