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Labour Law
Labour Law
Labour Law
₋ If an industrial establishment has more than 100 workers, the appropriate government
may require the employer to constitute a Works Committee which would consist of
representatives of employer and workers. The objective of this committee would be to
basically maintain good relations between employer and workers and to comment and
resolve any differences between the two.
₋ Every industrial establishment that has 20 or more workers must have a grievance
redressal committee, with equal representatives for workers and employers. The
aggrieved worker would first file an application before the Grievance Redressal
Committee (within a year of the cause of action). The Committee would then give their
decision within 30 days of application. If the grievance is not resolved, within 60 days of
decision, the worker may file an application to the Conciliation Officer through trade
union. After this, the worker can also approach the Tribunal after 45 days of application
to the Conciliation Officer.
₋ The trade union contains certain rules such as- name of the union, objective of the union,
adequate facilities for inspection of office bearer, admission of other members, payment
by members, annual general body meeting being held, election of office bearer, safe
custody of funds, and way in which the trade union may be dissolved.
₋ If a trade union has a similar name to an already registered union, which could cause
confusion for the members or public, the registrar may ask the union to alter the name and
can refuse to register the union until such alteration has been done.
₋ Laws related to co-operative societies does not apply to trade unions.
₋ Contribution to the fund is not a condition for admission to the Trade Union and any
worker who does not contribute to the fund would not be excluded or removed from the
trade union.
₋ A minor (who has attained the age of 14 years) employed in a non-hazardous industry
may be a member of a registered trade union.
₋ An Office Bearer of a registered trade union may be disqualified if- he’s not 18, has been
convicted of any offence (unless after 5 years of release), and if the tribunal directs for
him to be disqualified.
₋ In case of disputes between two trade unions, only the Tribunal would have the power to
entertain any suit or proceedings related to the dispute.
₋ If the State Government or the Central Government thinks the trade union must be
recognised as a State or Central union, it may recognise the union as so and in case of
dispute, it may be decided by the authority in a manner that would be prescribed by the
State/Central government.
₋ No illegal strike, no illegal lock-out- unless notice has been given as per the particulars
mentioned in Section 63. If illegal strike has initiated and employer initiates lock-out, the
lock-out would not be deemed as illegal and vice versa.
₋ In case of arbitration as a medium of dispute resolution clause, the majority of both the
parties must be considered and then the agreement must be signed in written form.
₋ For resolution mechanism of industrial disputes, a conciliation officer is appointed,
temporary or permanently, in order to mediate and promote settlement of dispute.
₋ Every industrial tribunal bench would have either a Judicial Member or Administrative
Member (a person who is not below the rank of Joint Secretary to the Government would
be appointed by appropriate government) or both. The bench would decide cases
regarding application and interpretation of a standing order; dismissal of workmen and
their reinstatement, relief given, etc.; retrenchment of workmen and closure of
establishment; and, trade union disputes. In case both members are present, the Judicial
Member would preside over the administrative member.
₋ The judicial member of the National Industrial Tribunal must be a judge of the High
Court. The administrative member must not be below the rank of Secretary to the
Government. Judicial member would preside over Administrative member. (would be
appointed by Central Government)
₋ The decision for any case would be based on the consensus of the members. However, if
they disagree on a certain point(s), they would have to make a reference to the appropriate
government, and in turn, they would appoint a judicial member of another tribunal or the
National Industrial Tribunal, who would hear the case and give a decision. Based on his
decision, the majority would be considered.
₋ A member may be disqualified from either of the tribunals if he is not an independent
person (not connected with industrial dispute) and if he attains the age of 65 years.
₋ An arbitrator or conciliation officer may be appointed by the appropriate government and
they would be authorised to set up an inquiry process on the industrial dispute. The
officer shall have the power to examine any person on oath, asking for material
documents, and also issuing commissions in order to examine witnesses. If the case
requires special knowledge, an expert may also be appointed.
₋ Incase a worker had been discharged or dismissed and the Tribunal believes it to be
unjustified then they may set aside the order, reinstate the worker and give any other
relief as they deem fit.
₋ During an industrial dispute, if there is a notice served for a lock-out or a strike, the
conciliation officer would have to hold the conciliation proceedings. However, the officer
cannot hold any proceeding after two years from the date on which the industrial dispute
arose. In order to bring about settlement, the conciliation officer would investigate and
decide a fair settlement. If the parties agree to settle, the conciliation officer would send a
report along with a memorandum of settlement with both the parties’ signature, to the
appropriate government or an officer authorised on behalf of the appropriate government.
If the parties disagree to settle, the conciliation officer would close the investigation and
send a full report, stating the details of the case and the steps taken by him to settle the
dispute, to the concerned parties as well as the appropriate government. This report must
be sent within 45 days of the commencement of proceedings.
₋ An industrial dispute may be referred to the National Industrial Tribunal if it involves the
question of national importance or if more than one state would be affected by the
dispute.
₋ The award of either of the tribunals must be in written form and signed electronically or
otherwise. The award would be communicated to the parties and the appropriate
government and would become enforceable after 30 days of its communication. If the
appropriate or Central Government believes that the award would affect national
economy or social justice, they may declare that the award would not be enforceable after
30 days. Within 90 days of the communication of award, the government would make an
order modifying or rejecting the award and send a copy of the order and award to the
legislature or Parliament. Such an order would become enforceable after the period of 90
days as stated above.
₋ Continuous service of a worker includes his service which may be interrupted when he
takes leaves for sickness, incase of accidents, strike (not illegal), lock-out, etc., which is
not the fault of the worker. A worker working for 1 year would be deemed to be in
continuous service only if he has worked 190 days (incase of underground mine worker)
or 240 days (in any other workplace). A worker working for 6 months would be deemed
to be in continuous service only if he has worked 95 days (underground mine worker) or
120 days (in any other workplace). If a worker has been laid-off, taken leaves permitted
to him, absent due to an accident, or is on maternity leave, they would still be included in
the number of days that the worker has worked.
₋ If a worker (other than a badli worker) who has completed minimum one year of
continuous service is laid off, he must be paid by the employer for the days he is laid off
and the compensation must be equal to 50% of the basic salary+ dearness allowance. If
the worker has been laid-off during his one year for more than 45 days, then no
compensation would be given to the worker after the lay-off for more than the first 45
days. If the employer wishes to retrench the worker, such compensation for lay-off would
be set off.
₋ Muster Roll refers to the list of workers working on a factory/work unit site for
attendance management. It can also be referred to as an employee attendance register at
the factory. It is important that the employer maintains a muster roll.
₋ A worker who has been laid off would not receive compensation if he refuses to accept an
alternative employment opportunity in the same establishment or an opportunity by the
same employer, if he is late or does not show up at the establishment during working
hours and if he was laid off due to a strike or slowing down of production by the other
workers.
₋ A worker who has been working for atleast a year would not be retrenched until he has
been given a one month’s notice in writing and has been paid compensation for 15 days’
average pay.
₋ Usually the worker who was employed last (recently) would be retrenched, in the absence
of a contract between the employer and the worker.
₋ During employment, a retrenched worker would be given preference over other persons.
₋ If there is a change in management, the workers who have worked for more than a year
must be given notice of the same along with compensation. Compensation would not be
granted if it has not affected or interrupted the service of the worker and the services
provided to the workers are not less favourable than before.
₋ If the establishment or undertaking is being shut down by the employer, he must inform
the workers by way of notice 60 days in prior. This notice must contain the reason why
the closure is taking place. This, however, would not apply to establishments where there
are less than 50 workers and an industrial establishment set up for construction work.
₋ Workers (working for not less than one year) would get a compensation for closing of the
undertaking due to unavoidable circumstances. This compensation would be an average
of 3 months’ pay. Unavoidable circumstances does not include- financial difficulties,
undisposed stocks accumulation, lease or license expiring and in case of mining,
exhaustion of minerals in the area. The mining workers would not receive a notice if they
get an opportunity to work at another mine with the same remuneration and the same
terms and conditions. For construction work closing down abruptly, the construction
workers would be entitled to a notice and compensation for every year of continuous
service or in excess of six months.
₋ No worker can be laid off until the employer has taken prior permission of the appropriate
government, by filing an application. However, in cases such as a natural calamity,
shortage of power, etc., workers can be laid off. The application to the appropriate
government would contain the details of why workers were being laid off and a copy of
this would also be given to the workers. The appropriate government would consider all
factors involved and make a decision and that order would be communicated to the
workers and employer. In any case if the appropriate government does not respond to the
application submitted within 60 days, the permission would have been deemed to be
granted. An order made by the government would be final, however, it can be reviewed
by the government’s own motion or on employer’s application.
₋ If an industrial establishment is being closed down, the employer must make an
application to the appropriate government along with the workers, atleast 90 days before
the closing date. This application must contain details as to why the establishment is
being closed. The appropriate government would analyse the situation and refuse or
accept the application. If the appropriate government does not respond within 60 days of
the application being made, it would be deemed as granted. The order of the appropriate
government would be binding for one year from the date of order. The order of the
appropriate government would be final however, it can be reviewed by the government’s
own motion or on employer’s application. If the establishment is being closed, the
workers would be compensated with 15 days’ average pay.
₋ The appropriate government shall set up a Worker Re-skilling Fund. This fund would
have the contribution of other sources as well as the contribution of the employer which
would be equal to 15 days of wages of a worker retrenched.
₋ No employer or worker must deal with unfair trade practice. They would have to pay a
penalty if they do.
₋ For any punishable offence under this Code, the Metropolitan Court or Judicial
Magistrate of the first class (or higher courts) shall try such offences.
₋ If a person committing an offence under this Code is a company, the concerned persons
would be punished accordingly.
₋ An accused person who has been charged with fine or fine + imprisonment, by way of
application, may be allowed to compensate and pay 50% of the maximum fine (incase the
punishment is fine only) and 75% of the maximum fine (incase the punishment is fine +
imprisonment). Such compensation would then be credited to the Social Security Fund
(Section 141 of the Social Security Code, 2020)
₋ During pendency of any proceeding between the workers and the employer, the employer
cannot take any action against the protected worker involved in the dispute. If, however,
the employer takes any action, the worker has the right to make a complaint in writing to
Conciliation Officer or Arbitrator, Tribunal or National Tribunal and get compensated for
the same by way of settlement.
₋ No party in dispute is entitled to be represented by a legal practitioner in any proceedings
before the Conciliation Officer or before the Tribunals.
₋ Civil Court does not have jurisdiction over any matter mentioned in this Code.
₋ Every employer is required to register the establishment within 60 days with the
registering officer, otherwise the employer would have to pay late fees. The registering
officer would issue a certificate after registration to the employer. If an establishment has
not been registered by the registering officer in the time prescribed then after expiration
of that period, the establishment would be considered as registered. Any change in
management would be informed to the registering officer within 30 days and he shall
make amendments in the certificate. Incase the establishment is closing, the employer
must inform the registering officer regarding the closing and certify that all payment dues
to workers have been paid off. In such a case, the registering officer would cancel the
certificate.
₋ If a registration of establishment has been obtained by suppressing material facts or by
way of fraud, the registration would be revoked after parties have been given the
opportunity to be heard. If anyone is aggrieved by the order, they may appeal to an
appellate officer within 30 days of the order and such an appeal would be considered,
heard of and disposed by the appellate officer within 30 days of the appeal.
₋ Incase of an unregistered establishment, the employer cannot employ any employee.
₋ No employer of any establishment relating to factory, mine, construction work, etc., can
commence the operation without giving a notice to the concerned authority and also must
intimate regarding the cessation of operation. Such a notice shall be given electronically.
DUTIES OF EMPLOYER-
₋ Workplace must be safe and hazard free for all employees. There must be annual health
examination or test free of costs for employees.
₋ Employer must issue a letter of appointment to employee on his appointment in the
establishment (if not, then it must be issued within 3 months of employment).
₋ For maintenance of safety and health at the workplace (conduct of medical examination +
investigation purposes of diseases), no charge would be levied on employees.
₋ For factory, construction, etc. workers, the employer must ensure safety in the workplace
and train the workers as well as supervise them.
DUTIES AND RESPONSIBILITIES OF OWNER, AGENT AND MANAGER IN
RELATION TO MINE-
₋ The owner and agent of every mine shall jointly and severally be responsible for making
any decisions necessary for compliance with the laws relating to mine. If anyone
contravenes any provision, they shall be deemed guilty unless proved that the act was
done with due diligence.
DUTIES OF DESIGNERS, MANUFACTURERS, IMPORTERS OR SUPPLIERS-
₋ Designers, Manufacturers, Importers or Suppliers of an establishment must ensure that
there is adequate information available on the use of the article (plant and machinery) as
to why it is designed and tested. If the article is being manufactured outside India, the
importer must be certain about the standard of the article and whether the article conforms
to Indian standards.
₋ Designers, Manufacturers, Importers or Suppliers would comply with the Central
Government in consultation with the National Occupational Safety and Health
Advisory Board (Section 16).
₋ While designing or manufacturing any article, safety risks must be considered and
precautions must be taken in order to eliminate or minimise any risks to the health and
safety or workers.
₋ Any person who erects or installs any article for use in factory shall be allowed and
practicable as far as it has no safety concerns.
DUTIES OF ARCHITECT, PROJECT ENGINEER AND DESIGNER-
₋ It is the responsibility of the architect, project engineer and designer to ensure that during
the planning stage of construction work, due consideration is given to the safety and
health of workers and employees employed for the operation. There must be no
involvement of dangerous structures that could risk the safety of workers. The
professionals must ensure the safety aspects and upkeep on the building.
CASES
Link- https://taxguru.in/chartered-accountant/bangalore-water-supply-a-rajappa-air-1978-sc-
553.html
Dispute – All Employee were fined by Bangalore water supply board for misconduct, Fine
was too heavy and not reasonable. This is the main reason why employees were opposing
against this decision. In Defense, the Board said, “we are industry not u/s 2(j) of IDA 1947 &
therefore labour court has no jurisdiction to hear this case.”
1. Any activity will come under definition of Industry if he fulfils the triple test.
₋ It is systematic activity,
₋ Small clubs, gurukuls, ashrams, school, colleges, research institute, which has non-
employee characters,
₋ Sovereign Functions- Maintenance of law & order, Legislative & Judicial Function.
Decision: The word ‘industry’ cannot be construed to its limited sense. The Court, in this
case, made it clear that only Sovereign Government Functions are excluded from the ambit of
‘industry’ and not all the governmental functions.
Link- https://lawtimesjournal.in/state-of-bombay-ors-vs-the-hospital-mazdoor-sabha/
In 1967, Safdarjung Hospital Case This Case dealt with same issue again: Is Hospital an
industry? This case reversed the judgment of Hospital Mazdoor Sabha Case as it provided
clarity on how to determine whether an activity is industry or not.
Safdarjung Case developed a strong logic for deciding what constitutes service. “Material
services involve an activity carried on through co-operation between employers and
employees to provide the community with the use of something such as electric power, water,
transportation, mail delivery, telephones and the like.” Such material services qualify to be
included as Industry. But for professionals like Doctors, Lawyers, Teachers, material service
do not arise as they are not engaged in occupation in which employers and employees co-
operate. Hence, organizations like Hospitals and Educational institutions do not fall within
industry.