LABOUR

Prof. Sushm

By : Prof. Sushma Mhaske

 Syllabus
• The Industrial Dispute Act, 1947 - 40
• The Workmen’s Compensation Act, 1923 - 15
• The Industrial Employment (Standing
Orders) Act, 1946 - 15
•
MRTU & PULP Act,1971 - 20
•
Collective Bargaining
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- 10

total 100
• Ref. Books
•
Avtar Singh,
•
S.N. Mishra
•
O.P. Malhotra,
• K.M. Desai,
•

• Meaning :-
* Fundamental rules of behavior / conduct, required to
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control society, recognized and enforced by the State to
maintain peace and order.
* It is system of rights & responsibilities which are
enforced in Court.
* Oxford Dict. – The body of enacted or customary rules
recognized by a community as binding.
• Rules established by a controlling authority that have
binding legal force.
• Thomas Hobbes :- “ Law is the formal glue that holds
fundamentally disorganized
societies together”.
•
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Function of Law :- Regulate society by means of

Substantive laws Procedural Laws

• Substantive laws :- Avoid conflicts & establishes rts &
obligations

• Procedural laws :- Resolve conflicts & establishes

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procedure for enforcement of rts.

• Sources :- Enacted Laws

Customary Laws
Case-Laws
•
Characteristics
• Reasonable
•
Definite
• Flexible
•
Practical
• Published
•

•
Final
Purposes
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• Justice
•
Peace / status quo
• Protection
•
Rehabilitation
• Commercial Transaction
• History :-
• Man – Naturally social being
• Association for protection; & for association law required
• Civilization :- bound by culture, in a common territory,
indispensable law & order (elements)
Ancient Egyptian law (3000 B.C.) – civil code based on
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•

tradition, social equality & impartiality.

• Ancient Athens – 8th century B.C. – first society based on
inclusion of its citizenry excluding women & slave.
• Roman Law influenced by Greek & underwent codification
during Justinian.
• England :- Common Law
• India :- Arthashastra 100 A.D. - foundational treaties.
 Definition
• Art.13 (3) :- ordinance, order, bye-law, rule, regulation,
custom, or usage, having the force, an amendment .
•

• Need for knowledge of Law

“ignorantia juris non excusat
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• Layman to be aware & acquaint with the general
principals of the law of the country.
 Legal system

Public Law Private Law

Law governs the state Law by which the
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state governs conduct
of individual
e.g. Constitution, e.g. Tort,
Administrative law Law of Contract
• Rule of Law
• England :- Parliamentary Sovereignty
• India :- People sovereign
• Social, Secular, Welfare, Democratic, Republic
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• The term ‘labour’ = productive work done for wages.
• Labour law, includes laws, administrative ruling, and
precedents which address the right & obligation of
employees & employer & their organization.
• It covers :-
1) Industrial Relations = certification of unions, labour
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& management relations, collective bargaining, unfair
labour practices.
2) Workplace – health & safety
3) Employment Standards – general holidays, annual
leave, working hours, unfair dismissal, minimum wages,
layoff procedure & severance pay etc.
• Purpose of Labour Legislation
1) That facilitates productive individual & collective
employment relationship, & ultimately productive
economy.
2) Important vehicle for achieving harmonious industrial
relations based on principles of democracy.
3) Prof. Sushm
It establishes the process through which fundamental
principles & rights at work place can be implemented.
• History of Labour Law :-
• Labour movement – instrumental in enacting labour law
protecting labour rights in the 19th century since the
industrial development.
•

Industry plays a vital role in building the economic

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•

structure of society.
•

• Labour laws - important in shaping the economy of the

country.
• UDHR - importance of social security, economic, social
& cultural rights
• England :- the Whitley Commission, a sub committee of the
Reconstruction Commission recommended in July 1918 that
“Industrial Councils” be established throughout the world.
• In Feb 1918 the British Labour Party had issued its own
reconstruction Programme titled – “Labour and the New Social
Order.
• The British proposed establishing an international parliament to

•
enact labour laws
America :- Prof. Sushm
• Americans made 10 proposals, 3 were adopted without change.
• It includes :- labour should not be treated as commodity
- all workers – right to wage
- equal pay for equal work
- freedom of association
- ban on child labour (14 yrs )
• International Labour Organization
(ILO) –

• deal with labour issues

• ILO was established as an agency of League
of Nations following treaty of Versailles which ended
World War I
• Prof. Sushm
The first annual International Labour Conference began
on 29th oct 1919 in Washigton DC & adopted first six
international Labour conventions, dealt with hours of
work, unemployment, maternity benefit, night work for
women, minimum wages etc.
• The ILO became a member of the U.N. after the demise
of the league of nation in 1946.
• Evolution of Labour Law in India
•
The history of labour legislation in India is interwoven with
the history of British colonialism.
• The labour legislations enacted by the Britishers were intended
to protect the interest of British employer.
•
The Factories Act was introduced in 1883 through this India
received the first stipulation of 8 hours of work, the abolition
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of child labour, the restriction of woman in night employment
& introduction of overtime wages.
•
To regulate the relationship between employer & employee the
Trade Dispute Act was introduced in 1929.
•
Ultimately the I.D. Act, brought into force in 1947 by
repealing the Trade Dispute Act.
• The post independence era has witnessed some important
developments
• During 20th century a new branch of jurisprudence known as
Industrial jurisprudence has developed.
• B4 independence it existed in rudimentary form.
• The birth of industrial jurisprudence in India may be ascribed
to the Constitution of India.
• The Parliament & Supreme Court have helped in shaping
industrial jurisprudence.
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• Mixed Economy –
• economy - privately-owned and state-owned enterprises
(capitalism and socialism,) & planned economy
characteristics.
• overcomes the disadvantages of both the market and planned
economic systems.
❖ Constitutional Provisions

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• Part III
Fundamental
Rights
•

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•

•
Article 14 – Equality before Law
•
Article 16 – Equality of opportunity in public employment
•
Article 19 - Protection of certain rights regarding freedom of
speech.
• Article 23 – Prohibition of traffic in human being & forced
labour
•
Article 24 - Prohibition of employment of children in factories
• Part IV (DPSP) :-
•

•
Article 39 – Right to livelihood, distribution of material resources,
• Article 41 – Right to work ,education etc. Prof. Sushm
equal pay for equal work, protection of health of worker etc.

• Article 42 – Provision for just & humane conditions of work &

maternity benefit.
•
Article 43 – Living wages etc. for workers.
•
Article 43-A – Participation of worker in management of industry.
• Seventh Schedule
• Union List
• Entry 55 – Regulation of labour and safety in mines & oil
fields
• Entry 61 – Industrial disputes concerning union employees
Entry 65 – Union agencies & institutions for ‘vocational
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•

training’.
• Concurrent List
• Entry 22 - Trade unions, Industrial & labour disputes.
• Entry 23 – social security & insurance employment *
unemployment
• Entry 24 – condition of work, provident funds, employers
invalidity, & old age pension & maternity benefit.
• Labour Policy in India
• Creative measures for public & private investment
• Creating new jobs
• New social security scheme for unorganized sector
• Unified & beneficial fund for welfare Boards
Reprioritization of allocation of funds for vulnerable workers
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•

• Model employee-employer relationship

• Vital industries declared as a public utilities
• Special investment mechanism
• Industrial relation committee
• Labour Law reform
• Modern medical facilities for workers
• Restructuring in functioning of employment exchange
• Revamping of curriculum in industrial training.
• Types of Legislation
• Personnel Legislation
1) The Industrial Employment (Standing orders) Act,1946
2) The Industrial Dispute Act, 1947
The Employment exchanges (Compulsory Notification of
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3)

Vacancies) Act,1959
• Welfare Legislation
1) The Factories Act,1948
2) The Apprentices Act, 1961
3) The Maternity Benefit Act, 1961
4) The Contract Labour (Regulation & Abolition) Act,1970
• Wage Legislation
1) The Payment of Wages Act, 1936
2) The Payment of Gratuity Act, 1972
3) The Payment of Bonus Act, 1965
Social Legislation
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•

1) Employees State Insurance Act, 1948

2) The Employees Provident Fund & miscellaneous
Provision Act, 1952
3) The Workmen’s Compensation Act, 1923
 Prof. Sushm

THE MAHARASHTRA RECOGNITION OF TRADE UNIONS

AND
Prevention OF UNFAIR LABOUR PRACTICES ACT, 1971
(MRTU& PULP)
• HISTORICAL BACKGROUND
• on the recommendation of the Committee on Unfair Labour
Practices appointed in 1968, MRTU & PULP Act was passed
in 1971, brought into effect from 8th sept.1975.
• Lofty ideals
1)

2)
Preventing unfair labour practices &
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Transforming the philosophy of ‘one company, one union”
into reality.
• Expression ‘unfair labour practices’ is frequently used in I.D.
Act but not defined anywhere
• Section 26 of the MRTU & PULP defines & gives meaning.
• Object
• To provide for recognition of trade unions for facilitating
collective bargaining for certain undertakings
• To state their rights & obligations
• To confer certain powers on unorganized union
•

illegal
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To provide for declaring certain strikes & lock outs as

• To define & provide for preventing of unfair labour

practices &
• To constitutes Courts as Forum to enforce the provisions
of the Act.
• Scope of the Act
a) To provide for recognition of trade union
b) To provide facility for collective bargaining
c) To provide rights & obligation of a union & the employer
To define & provide for prevention of unfair labour
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d)

practices &
e) To constitute courts for enforcing rights & obligation
arising from the Act.
• Application of the Act
a) Every industry to which the Bombay Industrial Relations
Act,1946 applies (BIR applicable to Maharashtra &
Gujarat, industry- silk, cotton, hosiery, woolen, textile,
sugar, co-operative banking, BEST)
b)

c)
Industry to which I.D. act applies
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Industry in respect of which the state govt. is appropriate
govt.
• Persons covered by the Act
A)Every person who is an ‘employee’ as defined in Sec.3 (13)
of the BIR Act, 1946.—
“employee”
--- means any person employed to do any skilled or unskilled
work for hire or reward

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--- a person who has dismissed, discharged, or retrenched or
terminated from employment on account of industrial dispute;
--- but does not includes-
person employed in managerial, administrative, supervisory
capacity
--- if state govt. specify by notification
B) Every person who is ‘workman’ as defined in I.D. Act.
• Dismissal :- temporary removal of the person from
organization as a punishment or punishment for disciplinary
action
•

• Discharge :- end of service contract with mutual

understanding

•
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Termination :- employee has been unceremoniously removed
from his job due to some unpardonable reasons like breach of
trust, embezzlement etc.
•

• Retrenchment :- the reduction of employee in order to

become financially stable ( grounds – surplus, expiry of
contract, closure of undertaking.)
• H.R. Adyantheya v. Sandoz (India) Ltd. 1994 II C.L.R.
552 (S.C.)
Medical Representatives are not workmen within the
meaning of the act and consequently the complaint made
to Industrial Court is not maintainable.
• Vikas Gangesan v. S.D. Rane 1983 Lab I.C. 1055
BIR Act is not confined only to person engaged in

•
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manual but also it takes into the person of clerical work.
Spices & Oil Seeds Exchange Ltd v. Suhas A. kulkarni
1986 I.C.L.R. 479
A person is designated as manager but the nature of
duties are clerical, he will be workman or employee u/s
3(5) of the Act.
• Section 1 – short Title
• Section 2 – Extent, commencement and application
• Section 3 – Definitions
• Bombay Act = Bombay Industrial Relation Act, 1946.
• Central Act = Industrial Dispute Act, 1947
Concern = any premises including the precincts where
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•

Central Act is applicable

• Court = for chapter VI & VII means Industrial Court or
as the case may be
• Member = a person who is ordinary member of a union,
& has paid subscription to the Union of not less than 50
paise per month
•
 Chapter – II
• Authorities under this Act (Section 4)
• state govt. by notification in
- Official Gazette

The Industrial
-
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- 3 members, 1 of whom -

Court President
- Impartial
- qualification- Judge of H.C.

or
eligible for same
•

• Duties of Industrial Court

•
( Section 5 )
•
Deciding applications for grant or withdrawal
of recognition to union,
•

practices, Prof. Sushm

deciding complaints relating to unfair labour
•
To give directions to investigating officer for
verification of membership of union, investigation
of complaints of ULP.
•
Hearing certain appeals u/s 42.
•

•
(Section 6)
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the State govt. by notification in the Official Gazette
• Jurisdiction – local area as specified in notification
• Qualification :- prescribed under Article 234
age limit – 60 yrs
• Duties of Labour court (Section : 7 )
•

• deciding complaints relating to unfair labour practices

(item 1 of Schedule IV),
•

• Trying offences under the Act,

•
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• Deciding whether strike or lock out is illegal.
• Difference between Industrial Court & Labour Court
➢ It deals with, individual dispute
arising from the employer and
employee relationship.
(e.g. dismissal) &
➢ trade dispute between employer &
unions
(e.g. collective agreements)
➢ breaches of rts & duties under Act.
➢ Statutory tribunals
➢ Appellate Court
➢ It deals with recovery of wages &
other monies and employment
benefits provided to employees.
e.g. overtime pay, maternity
allowance, salary in lieu of notice of
termination & termination benefits
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etc.
➢ It refers to the hearing conducted
by a labour officer of the Labour
Department.
➢ Subordinate to Industrial Court.
•

• Industrial Court established in the year 1939 by Gvt of

Maha by sec. 24 of Bombay Industrial Dispute Act, 1938
for determining industrial dispute.

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•

• At present ..26 Industrial Court at 20 District places and

49 Labour Courts at 26 District places.
• J.T. Chamaral Industries Pvt Ltd v. N.T. Bharde
1989 II CLR 75
sec. 30 lays down powers of the labour
& industrial court, not only to give declaration but to
give certain direction to prevent unfair labour
practices.
Prof. Sushm
• Kaushalayabai v. State of Maharashtra 1988 11
CLR 9
By virtue of sec. 30 the court are competent to pass
interim order including direction to persons to
withdraw the practices complained.
• Investigating Officer (Section : 8 )
• the State govt. may by notification in the Official Gazette,
• Appoint such number of Investigating Officers,
• To assist the Industrial Court & Labour Court.

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• Duties of Investigative Officers
(Section : 9 )
• Investigating Officer – under control of
Industrial Court
• Prof. Sushm
To assist Industrial & Labour Court in matters
of – verification of membership of unions,
• Investigate complaints of unfair labour
practices.
• Powers of Investigating Officers ( Section 37 )
•

• Exercise the power to perform his duties

•

• Enter & inspect any undertaking after reasonable notice

•

• Inspect documents
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•

• All the powers of Civil court in respect of compelling the

production of documents.
 CHAPTER III –
• RECOGNITION OF TRADE UNION
• Application of Chapter ( Section 10)
• Sub-sec.(1) apply to every undertaking, where 50 or
more employees are employed
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( application of law, to new undertaking, where less
than 50 employees - prior notice of 60 days in Official
Gazette.)
• Sub-sec (2) this chapter shall not apply where Bombay
Industrial Relations Act is apply.
• Trade Union Act, 1926 –Registration of Union
• Chapter 12 - appropriate govt. shall appoint Registrar of
Trade union for each state.
• Sec. 4 - any 7 or more members of a trade union apply
for registration
•

rules & statement of - Prof. Sushm

Application for registration accompanied by a copy of

-the names, occupations & addresses of the members

-the name of the Trade union & address of its head off.
-the title, names, ages, addresses & occupations of the
office bearers of the trade union.
• Sec. 9 – certificate of registration.
• Application for recognition of union.
• (Section 11)
•

• A union which has a minimum membership of 30 % of the

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total numbers of employees in any undertaking, may apply in
the prescribed form to the Industrial Court for being
recognized .
•

• The Industrial Court shall be disposed such application within

3 months ( local area),
4 months ( any other case) from date of receipt.
• Case – Laws
• Bhartiya Kamgar Sena ,Mumbai v. Chefair Employees
Guild, Mumbai (2009) (Bombay H.C.)
- Industrial Court granted recognition to respondent
challenged by petitioner.
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- Held :- Judgment of Industrial Court appears
contradictory on facts & conclusions. Reasoning given is
not in conformity with conclusion, impugned order set
aside.
•
Force Motors Ltd. V. Poona Employees Union
(2009 Bom. H.C.)
By impugned order, Industrial Court Pune, cancelled the
status of recognized union & granted recognition to other
union, was challenged.
Judgment :- Approach of Industrial Court was defective.
(Violation of ----A settled law is membership of union cannot
•
be proved on the basis of affidavits. ) Prof. Sushm
Kamgar Utkarsha Sabha v. Bennett Coleman (1985 Bom
H.C.)
Relevant date for considering the membership of a union
applying for recognition is the date of its application & not the
date of deciding that application. (object – to avoid mushroom
growth of unions & to secure industrial peace. There shall be
not more than one recognized trade union.)
• Recognition of Union :-
( Section 12 )
- on receipt of application from union & on payment of
fees not exceeding 5 rupees, the Industrial Court shall, on
a preliminary scrutiny, displayed on the notice board of
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the undertaking, to raise objections.

• If any objection raised by other union or employer,&

after holding such enquiry, on satisfaction the Industrial
Court may grant recognition to applicant union & issue
certificate to that effect.
• If there is substance in the objection, the Industrial Court
grant recognition to the other union.
•

• There shall be only one union at a time.

•

• if the application is made in the interest of employer

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(not bonafide), Industrial Court shall not recognize that
union.
•

• the Industrial Court shall not recognized, if within 6

months of application for recognition, the union has
instigated or aided or assisted the commencement or
continuation of strike is deemed illegal.
•
Cancellation of recognition and suspension of rights.
(Section 13 )
•

•
After show cause notice, why recognition should not be cancelled.
•

•
The Industrial Court can cancel the recognition if----

a.

b. Prof. Sushm
It was recognized under mistake, misrepresentation or fraud; or
Its membership fallen below the minimum required for its recognition (30 % of
total worker); or
c. It is not being conducted bona fide in the interest of employees, but employer;
or
d. Its registration under Trade Union Act is cancelled; or
e. It has committed any unfair labour practice; or
f. It has failed to observe any of the conditions for seeking recognition;
g. It has instigated ,aided, or assisted the commencement or continuance of an
illegal strike.
• Maharashtra General Kamgar Union v. M/s Rallis India
Ltd. (1985) (Industrial Court Maharashtra)
The word ‘strike’ = a strike only in the very
undertaking for which the applicant union has applied
for recognition & does not relate to strike in any other
undertaking.
•
Prof. Sushm
Association of Engineering Workers v. Dockyard
Labour Union (1992)
A trade union cannot be denied recognition by the
Industrial Court on ground that it has instigated ,aided,
or assisted the illegal strike in any undertaking except
the undertaking for which it is seeking undertaking.
• Recognition of other union ( Section 14 )
• If any union makes an application (accompanied by fee
not exceeding 5 rupees ) to the Industrial Court for being
registered as a recognized trade union
in place of ‘recognized trade union’ on the ground that it
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•

has largest membership of employees ,

• the Industrial Court, if 2 yrs has elapsed since
registration, call upon the recognized union by a show
cause notice, within 30 days of the receipt of such notice,
why recognition shall not be granted to applicant in its
place.
• The Industrial Court may entertain application after 1
year.
• After expiry of period & on scrutiny, the Court may
display on notice board of the undertaking inviting
objections employer & employees
•

certificate. Prof. Sushm

On satisfaction the Industrial Court may issue a

• Every application shall be disposed within 3 months (for

local area, 4 months for any other case) from the date of
receipt of the application
• Application for re-recognition ( Section 15 )
• Any union, the recognition has been cancelled as per
Sec.13, at any time after 3 months & before 1 year from
date of cancellation, on payment as prescribed by the
Industrial Court shall apply for recognition.
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• Liability of union or members not relieved by
cancellation. (Section 16)
• Cancellation of union shall not relieve the union or any
member thereof from any penalty or liability incurred
prior to cancellation.
• Publication of Order (Section 17)
• Every order passed by u/Ss 12, 13, 14 or 15 shall be
final , shall be caused to be published by the industrial
Court in the prescribed manner.

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•

• Recognition of Union for more than one undertaking .

(Section 18)
• A union may be recognized for more than one
undertaking.
 CHAPTER IV
• OBLIGATIONS & RIGHTS OF RECOGNIZED
UNIONS, OTHER UNIONS & CERTAIN
EMPLOYEES.
• Obligation of recognized union.(SECTION 19)
•

paise per month;

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the membership subscription shall not be less than 50

• Executive committee - meeting-3 months intervals

• Resolutions by Executive committee or General Body of
the union – minute book
• Accounts to be maintained by the Auditor of state govt. –
audit once in a year
• Rights of recognized union (Section 20)
•

• To meet & discuss grievances

•

• To collect sums payable – members

•

•
Prof.
To put up a notice–board on premises
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•

• For prevention of industrial dispute- hold discussion with

employee & employer & to inspect, any place in an
undertaking
• Right to appear through union- domestic or departmental
enquiry held by employer
•

• Relating to unfair labour practices.

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•

• Recognized Union - shall have rt to appoint its nominee

to represent workmen on the work committee u/s/3 of
Central Act.
•

• No employee shall be allowed to appear or represent in

any proceeding.
• Right to appear or act in proceeding relating to certain
unfair labour practices (Section 21)
• Where there is no recognized union to appear, the employee
may himself appear or act in any proceedings relating to ULP
• Rights of unrecognized union (Section 22)
• To meet & discuss with an employer, the grievance relating to
discharge, removal, retrenchment, termination of service &
suspension;
• To appear on behalf of any employee in any domestic or
departmental inquiry held by employer.
• B.E.S.T Kamgar union v. B.E.S.T. Undertaking
(1985 Bom H.C.)
unrecognized union cannot be exercised the rights where
recognized union is working in an industrial undertaking.
• Section 23 – deemed to be on duty.
• employees authorized by trade union to appear to be
considered on duty.
• Not more than 2 members of a recognized trade union
duly authorized in writing, who appear on behalf in any
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proceeding under Central or Bombay Act deemed to be
on duty on the day of proceeding.
• On production of certificate from the court before which
he appeared, be entitled to his salary & allowances.
• strike, is a work stoppage caused by the mass refusal of
employees to work. A strike usually takes place in response
to employee grievances.
• Strikes became common during the Industrial Revolution,
when mass labour became important in factories and mines.
•
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In most countries, strike actions were quickly made
illegal, as factory owners have far more political power
than workers. Most western countries partially legalized
striking in the late 19th or early 20th centuries.
 CHAPTER V
• Sec 2 (q) of I.D. Act, 1947
Strike – ingredients
• Any industry
• Cessation of work
•

•
Concerted refusal of work Prof. Sushm
Cessation of work must be in defiance of employer’s
authority
• Relationship of employment.
• Types of Strike
• Sympathetic Strike
• Partial Stoppage of work
• Picketing – Boycott
Sit Down Strike & Stay-in- strike
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•

• Tool Down strike

• Pen Down strike
• Token strike
• Lightning Strike
• Hunger strike
• Go- Slow.
 Illegal Strike & Lock-outs (Sections 24 & 25)

• A strike or lock-out which is commenced…

• Without giving notice to employer or employees
• within 14 days of such notice.
•

the members before notice.

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Recognised union- without obtaining vote of majority of

• During pendency of Conciliation/ Arbitration/ matter

before Court / Tribunal/ period of settlement etc. &
• Illegal Lock-out
• Without giving notice to employee, or
• within 14 days of such notice.
• During pendency of conciliation under the Bombay Act or the
Central Act
•

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Submission in respect of matter covered by the notice of lock-
out u/s/66 of the Bombay Act, before such submission.
• During the arbitration proceeding,
• Mumbai Mazdoor Sabha v. Balmer Lawrie Employees
Union (1988 Bombay H.C.)
An employer must take reasonable steps to enable smooth
running of industry....last fatal step of lock-out should be
resorted.
• Sec 66 of the Bombay Industrial Relation Act, 1946
(1) Any employer and a Representative Union or any other
registered union which is a representative of employees may, by a
written agreement, agree to submit any present or future industrial
dispute or class of such disputes to the arbitration of any person
whether such arbitrator is named in such agreement or not. Such
agreement shall be called a submission.

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(2) Such submission may provide that the dispute shall be referred
to the arbitration of Labour Court or the Industrial Court;1[Provided
that no such submission shall provide for reference of any such
dispute to the arbitration of the Industrial Court where under any
provision of this Act it is required to be referred to the Labour Court
for its decision.]
(3) A copy of every such submission shall be sent to the Registrar
who shall register it in the register to be maintained for the purpose
and shall publish it in such manner as may be prescribed
• Reference of Labour Court for declaration whether
strike or lock-out is illegal (sec.25)
• State govt. or employer may ,make reference to the
Labour Court for a declaration of strike is illegal.
• State govt., recognized union, if not - other union may
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make reference to the Labour Court for a declaration
whether lock-out will be illegal.
• Strike or lock-out declared to be illegal under this section
is withdrawn within 48 hours of such declaration, such
strike or lock-out shall not for the purpose of this Act, be
deemed to be illegal.
• Case-laws
• The General Kamgar Union v. Britannia Biscuits Co. (1988
Bom H.C.)
Company declared lock-out from 4-4-1977. pending lock-out
gave notice on 4-5-1977 to effect lock-out from 19-5-1977-
Court held lock-out up to 18-5-1977 to be illegal- awarded

•
Prof. Sushm
back wages for that period but not for subsequent period.
Mazdoor Congress v. Shri S.A. Patil (1992 Bom H.C.)
Petitioner union gave strike notice – not in a proper form –
whether illegal? – held that a perusal of notice to the petition
satisfies the essential ingredient of a strike notice though it is
not in proper form but cannot be declared illegal or invalid.
 CHAPTER VI
UNFAIR LABOUR PRACTICES
SECTIONS 26 TO 29
•
SECTION 26 :- practices listed in
schedule II, III, IV

Schedule II :-
Prof. Sushm
•

•
ULP on part of Employers-
• to interfere, restrain, coerce employees in the exercise of the
right to organise ,form, join, or assist a trade union &
to engage in concerned activities for collective bargaining etc.
• Threatening employees, dominate, to discourage membership,
•
refuse promotion,
• To refuse to collective bargaining etc.
• Schedule III
•

• ULP on of Trade Unions-

• to advice, instigate or support any illegal strike,
•
Prof. Sushm
Illegal strike, acts of force or violence against employer,
• To refuse collective bargaining,
• To stage, encourage or instigate coercive actions as wilful
“go-slow”, “gherao” etc.
• Stage demonstrations at the resident of employer or
managerial staff.
•
Schedule IV
•

• General ULP on part of Employer-

Prof. Sushm
-to discharge or dismiss employees by victimization,
malafide intention, false evidence, untrue allegations,
• minor misconduct, to practice partiality, act of force,
•
failure to implement award etc.
•
Employer or employee or union are prohibited to
engage in unfair labour practices.
•
Procedure for filing a complaint relating to ULP
• Union or employer or employee or investigating officer –within 90
days of the occurrence of ULP ,file complaint before competent
court.
•
Court shall take decision within 6 months from the date of receipt of
complaint.

Prof. Sushm
Investigating officer has power to visit undertaking for investigation
•

& has to submit report to the court within prescribed time.

•
The order of the court shall be final & shall not be called in question
in any court.
• The order of the court shall become enforceable from the date
specified in order.
•
The court shall forward a copy of its order to the State Govt.
• National General Mazdoor Union v. Nittin Castings Ltd.
(1990)
- It is not necessary that application for condonation of
delay must be filed along with the main complaint.

•
Prof. Sushm
Maharashtra General Kamgar Union v. All India
Handloom Fabrics Marketing Co-operative Society Ltd.
(1990)
- lethargic litigant should not be encouraged by
condoning the delay but at the same time the litigant
carrying out bona fide impression should be given
opportunity to contest.
• Parties to whom order of Court shall be binding
(sec.29)
• All parties to the complaint,
• All parties who were
summoned to appear,
• Heirs, successors or assignees
of employer,
Prof. Sushm
• All the employees employed & subsequently employed.
 CHAPTER VII
POWERS OF COURTS (Sections 30 to 36 )
•
All powers of civil court
• Oath, affidavit, summon,
• Production of documents
•
Examination of witnesses
•
Power to transfer proceedings
Ex parte Decision,
Prof. Sushm
•

•
Decide other connected matters
• Regulations to be made by industrial court
•
Execution of orders as to costs
•
Authorised officer to appear- proceedings
•
Law declared shall be binding
•
Industrial Court to supervise over labour
Court
•
Labour Court- powers - Cr P C- JMFC.
•
Appeal against decision- 30 days.
 CHAPTER VIII
POWERS OF LABOUR COURT AND INDUSTRIAL
COURT TO TRY OFFENCES UNDER THIS ACT
( SECTIONS 38 TO 46 )
• A Labour court shall have power to try offences under this Act
• Cognizance of offences – no suo motto power
•

fine 5000 or both. ) Prof. Sushm

Power of JMFC under Cr P C (sec 29 – imprisonment 3 yrs &

• Appeal lie to the Industrial Court (within 30 days)

• Industrial court – may confirm, modify, add to or rescind order
of Labour Court as may deem fit ( in respect to this shall have
power of H.C.)
• Copy of order passed by Industrial Court shall be sent to the
Labour court.
• CHAPTER IX
• PENALTIES (SECTIONS 47 TO 50 )
• Penalty for disclosure of confidential information – fine
may extend to 1000 rupees (investing officer or any
person)
•
Prof. Sushm
Contempts of Industrial or Labour Court – punishable
with imprisonment extend to 3 months or fine extend to
5000 rupees.
• Penalty for obstructing officers from carrying out their
duties & for failure to produce documents or to comply
with requisition or order – fine may extend to 500 rupees.
 THE INDUSTRIAL
EMPLOYMENT
(STANDING
Prof.
ORDERS) ACT, 1946Sushm
(15 MARKS)
• Object to provide with sufficient precision, certain
conditions of employment in the industrial establishment
• Importance - for defining the conditions of employment of
worker during tripartite labour conference.
• Salem Erode Electricity Distribution Co. v. Employees Union
AIR 1966 SC 808
Prof. Sushm
the Act has introduced uniformity of terms & conditions of
employment in respect of workmen belonging to the same
category & discharging same functions in an industrial
establishment.
• Applicable whole of India ,- (100) 50 or more workmen.
• Balkrishna Pillai v. Anant Engineering Works (1976)
once the Act made applicable to industry subsequent
reduction in numbers of workmen below the required
numbers will not make the Act inapplicable.
•

Electrification (1976) Prof. Sushm

Hari Shanker Jain v. Executive Engineer, Rural

Standing Orders framed in an Industrial undertaking do

not cease to be operative on purchase of the undertaking
by another employer.
• Exception
1) An industry to which the Bombay Industrial Relations
Act,1946 is applicable.
2) An industry to which the provisions of the M.P. Industrial
Employment (S.O.) Act is applicable.
• Prof. Sushm
Standing Order Rules relating to matters set out in the
schedule.
•
Special Features of the Act
•
Under the Act employer has to frame draft standing orders &
to submit them to the Certifying Officer (Labour
Commissioner), for certification.
•
Certifying Officer is empowered to modify or add to the draft.
• A group of employers of similar undertaking may submit joint
standing order.
•

•
Prof. Sushm
The Govt. may set out model standing orders
Applicable to all industry where 50 or more workmen are
employed
•
The Certifying Officer & Appellate Authority shall have
powers of Civil Court in certain matters.
•
The appropriate govt. may exempt any establishments
• Workman includes – “Supervisory Technical Personnel”
subject to conditions
• INTERPRETATION / DEFINITION
a) Appellate Authority :- authority appointed by the
appropriate govt. by notification in the Official Gazette.
b) Appropriate Government :- the Central Govt. is deemed
to be the appropriate govt. in respect of
Prof. Sushm
- an establishment under the control of central govt.;
- Railway administration;
- establishment in a major port, mine, or oilfield
* in all other cases appropriate govt. means state Govt.
•
Certifying Officer :- - a Labour Commissioner; or
- a Regional Labour Commissioner; or
- any other Officer appointed by appropriate govt.
• Employer :- owner of industrial employment
- manager of factory appointed by Factories Act
- in an undertaking under control of govt. authority appointed
by govt. Prof. Sushm
- other industry – any person responsible to the owner
•
Industrial Establishment :- means
- defined under (sec.2) Payment of Wages Act,1936
-factory under the Factories Act, 1948
-Railway
-Establishment of a person who for the purpose of fulfilling a
contract with the owner.
• Standing Orders :- rules relating to matters set out in the
schedule i.e.
• classification of employee (permanent, temporary,
apprentice, probationers, or badlis)
• Hours of work, holidays, pay days, & wage rates
•

•
Shift working
Attendance & late coming
Prof. Sushm
• Conditions & procedure for leave & holidays
• Requirement to enter premises by certain gate, & liability
to search.
• Closing & reopening of sections, temporary stoppages of
work & rights & liabilities of employee & employer.
• Termination of employment & notice thereof to be given
by employer & workmen
• Suspension or dismissal for misconduct & acts or
omission which constitute misconduct
•

• Any other matters

Prof. Sushm
Means of redress for workmen against unfair treatment

• The list of the “Dos”, & “don’ts” = Standing Order

• S.K. Ghosh v. Chairman O.S.E. Board AIR 1970 Ori
126 --- ‘termination of employment’ & word
‘Superannuation’ cannot be equated.
• New Victoria Mills Co. Ltd v. Presiding officer, Labour
Court AIR 1970 All 210
Held :- the misconduct for which an employee may be
dismissed need not necessarily have been committed in
the course of his employment.(sweeper committed a theft)
•

(1979) Prof. Sushm

Navinchand Shakerchand shah v. Ahmedabad Co-op ltd
the
petitioner who was a helper in the respondent society, was
chargesheeted with over-weighing wheat to a customer &
was dismissed from services. After an enquiry, it was held
that mere negligence is not misconduct.
• Suresh A. Kerkar v. S. V. Novagi Presiding Officer,
Industrial Tribunal (1996)
The petitioner had extended his leave on medical
grounds. During the time of such leave he was arrested &
later discharged by police. His services were terminated
Prof. Sushm
on the ground that he suppressed the fact of his arrest &
misrepresented a company by producing a false medical
certificate. Held :- merely securing a false certificate,
does not amount to misconduct. The certificate may be
false due to ignorance or incompetence of the doctor.
• Legal nature of standing Order
• Western India Match Co. v. Workmen
AIR 1973 SC 2650
The employer & workmen cannot enter
into a contract overriding the Standing Orders
•
Prof. Sushm
Behar journals v. Ali Hasan AIR 1959 Pat.431
The Probation period provided by the standing orders was
for 3 months only. But in appointment letter it was 6
months. It is not possible for parties to enter into contract.
• Submission of Draft Standing Orders
(Section 3)
• within 6 months from the date of application of the Act to
the industrial establishment, employer shall submit 5
copies of draft to the Certifying Officer;

Prof. Sushm
Draft or joint draft must make provision for every matter
•

& accompanied by particulars of workmen & name of

Trade union;
• Hindustan Lever v. Workmen AIR 1974 SC 17
the Standing Order made provision for transfer of an
employee from one dept. to other dept. in same
establishment at the discretion of employer held - valid
•
Conditions for Certification of Standing Orders
•
Provisions for every matters set out in the schedule;
• Standing Orders are in conformity with the Act;
•
The Certifying authority (authorities empowered under this
Act & the Supreme Court u/A/ 136) shall have power to
adjudicate upon fairness or reasonableness of the provisions

Prof.
REMEDY :- - to raise dispute under I. D. Act
Sushm
•

- to contest Draft on the ground that not

fair & reasonable
• Deviation from Model Standing Orders :- the conformity with
model does not mean model should fallow in toto. In case of
deviation, the certifying officer can judge reasonableness of
rules.
• Associated Cement Co. Ltd. v. P.D. Vyas AIR
1960 SC 665
The Certifying Officer modified the Draft
Standing Orders, in respect of the notice period for
discontinuance of a shift from 14 days to one month to

•
bring conformity with model.
Prof. Sushm
• Matter not covered by the schedule:- fair & reasonable.
• Certification of Standing Orders
• After submission of the Draft, Certifying officer shall
forward a copy of it to Trade union, if any or workmen
with notice requiring objections. The Trade union or
workmen is required to submit the objections within 15
days from receipt of notice.
• Prof. Sushm
Employer, workmen, trade union – opportunity of being
heard.
• After certification, the officer within 7 days send copies
to the employer, workmen, & trade union.
• Appeals
• Aggrieved party (employer, workmen, or Trade union), within
30 days from the date on which copies of draft are sent, appeal
to the Appellate authority whose decision shall be final.
• The Appellate Authority shall within 7 days of its order, send
copies to the Certifying Officer, Employer, Trade union,

•
workmen etc.
Prof. Sushm
Bijli Mazdoor Sangh v. Resident Engineer Allahabad AIR
1959 SC 1279 - if appeal is preferred, the appellate authority
cannot completely cancelled the Standing order they can either
be confirmed or modified.
• Kerala Agro Machinery corn. Ltd v. Industrial Tribunal
(1988) – the appellate authority has no power to set aside the
orders of Certifying Officer.
• Date of operation of Standing Order (section 7)
• The Standing Orders certified by the certifying Officer
shall, unless an appeal is preferred, come into operation
on expiry of 30 days from date authenticated copies are
sent.
•
Prof. Sushm
If appeal – on expiry of 7 days from date on which copies
of the orders of appellate authority are sent.
• Agra Electricity Supply Co.v. Alladin AIR
1970 SC 512 After passing of Standing Order, it is
binding upon the employer, employees presently
employed & also employed subsequently.
• Register of Standing Orders (section 8)
A copy of certified Standing orders shall
be filed in register in the prescribed form.

• Posting of Standing Orders (section - 9):- The

Prof. Sushm
text of final Standing order shall be posted by the
employer in English & in the language understood by the
majority of the workmen, on board, near the entrance.
- non
compliance by the employer will deprive the binding
character of the standing orders.
• Duration & Modification of Standing orders
(Section 10)
• The Standing Orders are immutable for first 6 months from
date of operation.
• Except an agreement between employer, workmen or a trade

•
union.
Prof. Sushm
Any party may apply for modification, such application must
accompanied with 5 copies of proposed modifications.
• This procedure for modification of Standing Orders shall not
apply to Gujarat or Maharashtra.
•
• Payment of Subsistence Allowance (section 10-A)
• Where a workman is suspended & investigation or inquiry is
pending for charges of misconduct ,the employer shall pay
subsistence allowance------- - a) @
50% of the wages which the workman was entitle to from the
date of suspension for first 90 days; &
Prof. Sushm
- b) @ 75% of wages for
remaining period of suspension if the delay in disciplinary
proceedings.
• In case of any dispute with respect to subsistence allowance
may refer to Labour Court.
• R. Govendraj v. Government Tool Room Training
Centre(1990) 1 CLR 442 (Karn).held - subsistence allowance
paid during the suspension cannot be recovered.
• Section 11 - Powers of Certifying Officer
• All powers of the Civil Court. (receiving evidence, taking
oaths, attendance of witnesses, production of documents
etc.)
• To certify standing orders
• Associated Industries v. B.B.Singh Prof. Sushm
AIR 1972 A & N 31
Certifying Officer & Appellate Authority have power
of ‘Civil Court’ will not convert them to a ‘Court’ &
one cannot make the proceeding of writ before
Labour Court.
• Section 12 - Oral evidence in contradiction to standing
order which vary written St O is not admissible.
• Section 12-A - application of ‘Model Standing order’ to
industry is limited for temporary period, until final St. O.
come into operation.
Section 13 - Penalties & Procedure -- employer -
Prof. Sushm
•

• non submission or modifies St O

• Fine Rs 5000 + (continuing with same) 200/ day,
• Any act in contravention with S.O. -
• Rs 100 + (continuing with same) 25/ day
• no prosecution except with previous sanction of appropriate
govt. (JMSC) may be Sentenced for 3 months.
•
Interpretation of Standing Orders ( section 13- A)
• Labour Court established under I. D. Act
•
Labour Court – not empowered to grant redress for violation of
the rights & obligation u/s/13-A.
• S.K. Mukherjee v. Calcutta Electric Supply Co. (1963) A
dismissed or discharged workman cannot apply u/s/13-A to the
•
Labour Court.
Prof. Sushm
Ram Asrey & ors v. Labour Court, Kanpur (1991)
The petitioners had assaulted one junior officer in front of
factory gate. HELD :- the assault amount to misconduct.
•
Rajasthan State Road Transport Corp. v. krishna Kant (1995)
After
certification St O do not become part of the Act (bcoz not
D.L.).
•
Section 14- enables appropriate govt to exempt any industrial
establishment
• Delegation of Powers (section 14-A)
• The appropriate govt. by notification in the Official
Gazette delegate the power to subordinate authority.
• Power to make rules. (section 15)
• Appropriate govt. may previous sanction in the Official
Gazette,
• Prof. Sushm
Matters to be included in the schedule, procedure for
modification,
• Set out model standing orders,
• Procedure for certification,
• Any other matter,
• B4 making any rules, the appropriate govt. shall be
consult with representatives of employer & employee.
COLLECTIVE BARGAINING
(10 MARKS)
Prof. Sushm
• Collective Bargaining
• Originated in the writing of Sidney Webb, the famous
economic theorist in 1891.
• Meaning – process whereby organized labour & management
negotiate the terms & conditions of employment.
•

Prof. Sushm
ILO in its Convention No. 98 of 1949 – negotiations abt
working conditions & terms of employment between
employer/s on one side & 1 or more representative of trade
union on other side with a view to conclude.
• Encyclopedia of Social Science – procedure by which
employer or employee agree upon the conditions of work.
• Four ways terms & conditions can be determined
1) Unilaterally dictated by employer
2) Imposed by union (not arrived in India)
3) Regulated by the Govt.
4) Determined by joint negotiation between employer &
workers or union.
Prof. Sushm
• Forms of Collective Bargaining
1) Negotiation :- process of setting
the difference by face to face
round table talks between an
employees & employers.
2) Mediation :- in case of failure
of negotiation to resolve the
Prof. Sushm differences
by mutual discussions &
understanding, with the intervention of
mediator ( not as a judge but assists the
parties to reach an agreement.)
3) Arbitration :- an act of settling labour disputes through
the medium of a neutral party.
* voluntary (by parties )
* compulsory (by Statute)

Prof. Sushm
* Award is binding on the parties & enforceable in the
Court.
• Essential conditions for Collective Bargaining:-
• Right to organize
• Stable & strong Trade union
• Recognition of trade union
•

• Statutory Collective Bargaining :-

Prof. Sushm in
some countries regulated by legislation, it requires the parties
to meet at negotiating table at reasonable intervals & discuss
their problems in good faith.
e.g. U.S.A., Ethiopia, Philippine, U.K., France.
• Non-statutory Collective Bargaining :-
parties are free to make their own arrangement for C.B.
e.g. Denmark, Norway
• Purposes of Collective Bargaining
• Means of regulating wages & conditions of service
( hours of work, bonus, cost of living, allowance, annual
leave, better working conditions etc.)
Means of regulating Labour – Management relations
Prof. Sushm
•
•
Position in India :-
• The Trade Union in India could not contribute to the
settlement of industrial dispute to the desired extent bcoz -
•
labour is divided & employers are well organized,
• Lack of proper labour leadership,
•
Illiteracy among labour,
Unable to participate in mutual discussions etc.
Prof. Sushm
•

•
Examples of Labour Organizations
•
All India Trade Union Congress
• Indian National Trade Union Congress
•
Hind Mazdoor Sabha
•
Trade Union Congress.
• Intra-Union rivalry.
• The rule of collective bargaining – incorporated in the
I.D.Act,1947, wherein the provision is made for
appointment of Conciliation Officers charged with duty
of mediation in promoting industrial disputes.
• Conciliation Board consists – representatives of
Prof. Sushm
employers &employees with Conciliation Officer as its
chairman.
• The main task of Conciliation Officer is to investigate the
dispute & do all such things to arrive at a fair & amicable
settlement of disputes.
• The memorandum of settlement duly signed by the
parties is sent to the appropriate govt. for publication.
• ILO & Collective Bargaining
• C.B. recognized by ILO in the Industrial Labour
Conference held in 1951 adopted a resolution

Prof. Sushm
THANK
YOUProf. Sushm
 @ 12 MARKS
• What are the authorities under the MRTU & PULP
Act,1971? Explain the duties of the authorities.
• Discuss the provisions relating to recognition and
cancellation of recognized unions under MRTU & PULP

•
Act,1971 Prof. Sushm
Discuss the procedure , obligation and rights of
recognized union under MRTU & PULP Act,1971.
 @ 6 MARKS
• A union in an industrial establishment has of total
workmen as its members for a continuous period of 8
months. It plans to apply for recognition under MRTU &
PULP Act ,1971
Prof. Sushm
1) Is the union entitled to be recognized under MRTU &
PULP Act, 1971?
2) To which authority it shall make such application for
recognition?