INTRODUCTION AND HISTORICAL DEVELOPMENT LABOUR LAW

RAWL’S THEORY OF JUSTICE

1. each person is to have an equal right to the most extensive basic liberty
2. social and economic inequalities are to be arranged so that they are both
a. reasonably expected to be to everyone's advantage,
b. attached to positions and offices open to all.
The basic liberties of citizens are:

• political liberty (the right to vote and to be eligible for public office) together with
• freedom of speech and assembly;
• liberty of conscience and freedom of thought;
• freedom to move freely;
• the right to hold (personal) property; and
• freedom from arbitrary arrest and seizure as defined by the concept of the rule of law.
CERC v Union of India (1995)

• The preamble and Article 38 of the Constitution of India the supreme law, envisions social justice as its
arch to ensure life to be meaningful and livable with human dignity.
• Article 39(e) charges that the policy of the State shall be to secure "the health and strength of the
workers".
NEW LABOUR CODES

• The new set of regulations consolidates 44 labour laws under 4 categories of Codes namely, Wage Code;
Social Security Code; Occupational Safety, Health & Working Conditions Code; and the Industrial
Relations Code.
• The Code on Wages, 2019,
• The Code on Occupational Safety, Health and Working Conditions, 2020
• The Code on Social Security, 2020
• The Code on Industrial Relations, 2020 seeks to consolidate three labour laws namely, The Industrial
Disputes Act, 1947: The Trade Unions Act, 1926 and The Industrial Employment (Standing Orders) Act,
1946
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INTERNATIONAL LABOUR ORGANIZATION (ILO)

• It is the only tripartite U.N. agency that brings together governments, employers and workers of 187
member States, to set labour standards, develop policies and devise programmes promoting decent
work for all women and men.
• Established in 1919 by the Treaty of Versailles, its Founding Mission is to ensure social justice & peace
STRUCTURE

The ILO accomplishes its work through three main bodies which comprise governments', employers' and workers'
representatives:

1. International Labour Conference

It is also a forum for discussion of key social and labour questions.
2. Governing Body
it is the executive council of the ILO. It meets three times a year in Geneva.
 3. International Labour Office
it is the permanent secretariat of the International Labour Organization.

FUNCTIONS
• Creation of coordinated policies and programs, directed at solving social and labour issues.
• Adoption of international labour standards in the form of conventions and recommendations
and control over their implementation.
• Assistance to member-states in solving social and labour problems.
• Human rights protection (the right to work, freedom of association, collective negotiations,
protection against forced labour, protection against discrimination, etc.).
• Research and publication of works on social and labour issues.
OBJECTIVES
• To promote and realize standards and fundamental principles and rights at work.
• To create greater opportunities for women and men to secure decent employment.
• To enhance the coverage and effectiveness of social protection for all.
• To strengthen tripartism and social dialogue.
ILO STANDARDS
• The ILO sets international labour standards with conventions, which are ratified by member
states. These are non-binding.
• Conventions are drawn up with input from governments, workers’ and employers’ groups at
the ILO and are adopted by the International Labour Conference.
• In ratifying an ILO convention, a member state accepts it as a legally binding instrument. Many
countries use conventions as a tool to bring national laws in line with international standards.
EIGHT CORE CONVENTIONS OF THE ILO
• Forced Labour Convention (No. 29)
• Equal Remuneration Convention (No.100)
• Abolition of Forced Labour Convention (No.105)
• Discrimination (Employment Occupation) Convention (No.111)
• Freedom of Association and Protection of Right to Organised Convention (No.87)
• Right to Organise and Collective Bargaining Convention (No.98)
• Minimum Age Convention (No.138)
• Worst forms of Child Labour Convention (No.182)
LABOUR RIGHTS UNDER INDIAN CONSTITUTION
• Protection against exploitation
• Beneficial interpretation of labour rights under Article 21
• Prohibition of traffic in human beings and forced labour [A. 23]
• Prohibition of employment of children in factories, etc. [A. 24]
• Directive Principles of the State Policy- Art 38, 39, 41, 42, 43, 45
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COLLECTIVE BARGAINING

• A method of settlement of industrial disputes.

• ILO defines it as “negotiations about working conditions and terms of employment between an
employer, a group of employers one or more employers’ organization on the one hand, and one or
more representative workers’ organizations on the other, with a view to reaching agreement.
 • PARTIES: Management /employers’ association/ federation of employers Workers represented
through TU /workers’ federation, termed as bargaining agent.
• SUBJECT MATTER: Standards of employment & Relation between the parties to the agreement.
• PRE-REQUISITES:
o Freedom of Association
o Strong and stable TU
o Recognition of TU
o Willingness to give and take
o Absence of unfair labour practices or victimization
• Karnal Leather Karamchari Sanghatan v. Liberty Footwear Co. (1989)
o Collective bargaining is a technique by which dispute as to conditions of employment is
resolved amicably by agreement rather than coercion.
o The dispute is settled peacefully and voluntarily although reluctantly between labour and
management
o The workmen must have an opportunity to share their views with each other and if necessary
to place the same before the arbitrator. This is the need for collective bargaining and there
cannot be collective bargaining without involving the workers.
PROCESS/METHODS OF ADMINISTERING COLLECTIVE AGREEMENT
1. Negotiation
• Sec 3 of both ID Act and IR Code defines Works Committee which is the basis of negotiation.
o Consists of representatives of employers and employees.
o Duty is to Promoting measures to secure and preserve amity and good relations
between employer and workmen.
• Section 4 talks about Grievance Redressal Machinery for negotiation of dispute arising out of
individual grievances.
o every industrial establishments employing 20 or more worker shall have one or more.
o Total no. of members shall not exceed 10.
o The Grievance Redressal Committee may complete its proceedings within 30 days of
receipt of the application.
o The decision of the Grievance Redressal Committee shall be made on the basis of
majority view of the Committee
2. Mediation/Conciliation

3. Adjudication

4. Voluntary arbitration

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STRIKE & LOCKOUT

• Sec 2(u) of IR Code, 2020: “lock-out” means the temporary closing of a place of employment, or the
suspension of work, or the refusal by an employer to continue to employ any number of persons
employed by him.
• ESSENTIALS:
o Temporary closing of place of employment by the employer,
o Suspension of work by the employer,
o Refusal by an employer to continue to employ any number of persons employed by him.
o Like in case of strike, there must be a relationship of employer and employee in lockout.
• SCOPE:
o Temporary closing of place of employment by the employer,
o Suspension of work by the employer,
 o Refusal by an employer to continue to employ any number of persons employed by him.
o Like in case of strike, there must be a relationship of employer and employee in lockout.
• Firoz Din v State of West Bengal 1960: It is refusal by the employer to allow any number of persons
employed by him to attend to their duties without effecting a termination of service.
• Sec 2(zk) of IR Code, 2020: “strike” means a cessation of work.
• ESSENTIALS:
o Cessation of work or concerted refusal to continue work or accepting employment;
o By a body of persons;
o Must be employed (present or immediate past) in any industry;
o Acting in combination or under a common understanding;
o The stoppage of work must be for some demands relating to employment, non-employment,
terms of employment or conditions of labour of the workmen (i.e. industrial dispute).
o The cessation of work, refusal to work or discontinuance of work in combination is essential to
constitute a strike. There cannot be a strike by a single individual
• Jay Engineering Works Ltd. V State of West Bengal 1968
o A Strike which is lawful is a recognised instrument in the hands of labour, which aids them in
any concerted movement to improve their position vis-a-vis the management. Mere absence
from work does not amount to a strike. There should be evidence to show that the absence
was the result of some concert between the workmen, that they would not continue to work.
• Syndicate Bank vs K. Umesh Nayak 1995
o In this case, the question before the Supreme Court was whether the workmen are entitled for
wages for the period of Strike irrespective of the fact that is legal or illegal?
o The strike as a weapon was evolved by the workers as a form of direct action during their long
struggle with the employers.
o It is essentially a weapon of last resort being an abnormal aspect of the employer-employee
relationship and involves withdrawal of labour disrupting production, services and the running
of the enterprise.
o In addition to the total cessation of work, it takes various forms such as working to rule, go
slow, refusal to work overtime when it is compulsory and a part of the contract of employment,
“irritation strike” or staying at work but deliberately doing everything wrong, “running-sore
strike”, i.e., disobeying the lawful orders, sit-down, stay-in and lie down strike etc.

REGULATIONS FOR STRIKE & LOCKOUT

• Sec. 22, 23, 24, 25 of the Industrial Disputes Act, 1947 provide provisions regarding legality of strike &
lock-out.
• Sec 62, 63 and 86 of IR Code, 2020 provides provisions regarding legality of strike and lock-out.
• If a strike is both legal and justified then only the workers could seek back wages and other benefits for
the relevant period.
PROHIBITION OF STRIKE & LOCKOUT
Sec 62 of IR Code, 2020
• No person employed in an industrial establishment shall go on strike, in breach of contract-
o without giving to the employer notice of strike 60 days before striking
o before the expiry of the date of strike
o during the pendency of any conciliation proceedings
o during the pendency of proceedings before a Tribunal or a National Industrial Tribunal
o during the pendency of arbitration proceedings before an arbitrator
o during any period in which a settlement or award is in operation
• No employer of an industrial establishment shall lock-out any of his workers-
o without giving them notice of lock-out
o before the expiry of the date of lock-out
o during the pendency of proceedings before a Tribunal or a National Industrial Tribunal
 o during the pendency of arbitration proceedings before an arbitrator
o during any period in which a settlement or award is in operation
CONDITIONS FOR STRIKE & LOCKOUT

• Strike/lockout may happen after 14 days but before 60 days.

• The date specified in the notice regarding initiation of strike/lockout must not have passed.
• There must not continue a conciliation proceeding, proceedings before a Tribunal or a National
Industrial Tribunal, arbitration proceedings before an arbitrator or any period in which a settlement or
award is in operation.
• Even after conclusion of such conciliation 7 days; such proceedings before tribunal 60 days or arbitration
proceedings 60 days, must have passed.
ILLEGAL & JUSTIFIABLE STRIKE & LOCKOUT WITH PENALTIES

• A strike or lock-out shall be illegal, if it is- section 63 of the IR code

o commenced or declared in contravention of section 62; or
o continued in contravention of an order made under sub-section (7) of section 42.
• A lock-out declared in consequence of an illegal strike or a strike declared in consequence of an
illegal lock-out shall not be deemed to be illegal.
• Sec 86 (13) of IR Code, 2020: Penalty for taking part in illegal strike
o Any worker who commences, continues or otherwise acts in furtherance of a strike which is
illegal under this Code, shall be punishable with fine which shall not be less than one
thousand rupees, but which may extend up to ten thousand rupees or with imprisonment for
a term which may extend to one month, or with both.
• Sec. 86(14) of IR Code: Penalty for illegal lock-out
o Any employer who commences, continues, or otherwise acts in furtherance of a lock-out
which is illegal under this Code, shall be punishable with fine which shall not be less than fifty
thousand rupees, but which may extend to one lakh rupees or with imprisonment for a term
which may extend to one month, or with both.
• Justifiable strike/lockout
o The strike or lock-out should not be resorted to show superior bargaining power or economic
muscle to compel the other party to accept its demand. Such action, when the legal
machinery is available to resolve the dispute, may be hard to justify.
o The strike or lock-out as a weapon has to be used sparingly for redressal of urgent and
pressing grievances when no means are available or when available means have failed, to
resolve it. It has to be resorted to, to compel the other party to the dispute to see the
justness of the demand.
RIGHT TO STRIKE

• T. K. Rangarajan v. State of Tamil Nadu 2003

o There is no statutory provision empowering the employees to go on strike.
o There is prohibition to go on strike under the Tamil Nadu Government Servants Conduct Rules,
1973
o The Court found the strike on behalf of the government employees invalid even on moral or
equitable grounds.
o The Court directed that the State Government would re-instate all the government employees
who were dismissed because they had gone on strike.
o Among those dismissed except certain staff, who were accused of committing crimes under Sec.
4 and/or 5 of the TESMA, were held as suspended liable for disciplinary action rather than
dismissal.
o The reinstated employees were even required to give unconditional apology.
 • The Directive Principles of State Policy enshrined in Part IV of the Constitution, Article 51(c) provides
that the State shall endeavour to foster respect for international law and treaty obligations in the
dealings of organized people with one another.
• A conjoint reading of Articles 51(c) and 37 implies that principles laid down in international conventions
and treaties must be respected and applied in governance of the country.
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STANDING ORDERS
• ‘Standing Orders’ means rules of conduct for workmen employed in industrial establishments.
• There was no uniformity in the conditions of service of workers until The Industrial Employment
(Standing Orders), Act 1946 was brought.
• The Bombay Industrial Disputes Act of 1938 provided, for the first time, for statutory standing
orders.
• The Labour Investigation Committee 1944-46 observed that “An industrial worker has the right to
know the terms & conditions under which he is expected to follow”.
• Section 2(zj) of IR Code, 2020: “standing orders” means orders relating to matters set-out in the First
Schedule.
LEGAL STATUS

• Once the standing orders are certified, they have the force of law like any other statutory
instrument.
• Thus, where the terms and conditions of contract of employment (contained in the appointment
letter) are inconsistent with the terms of the certified standing orders, the latter will prevail. (Eicher
Good-earth Ltd. Vs. Rajendra Kumar Soni & Another(1993) XXIV llr 524 (Raj)
• The Employer should act in conformity with the certified Standing orders in dealing with day-to-day
affairs of the workmen. The Certified Standing Orders have the force of law like any other statutory
instrument. (Biswanath Das Vs. Ramesh Chandra Patnaik (1980) 1 LLJ 35 (Ori))
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CLOSURE
• Sec 2(cc) of ID Act, 1947 & Sec 2(h) of IR Code, 2020: ‘closure’ means the permanent closing down of a
place of employment or part thereof;
• FEATURE:
o Severance of employer-employee relationship.
o Existence or apprehension of industrial dispute is absent here.
o There is no bargaining involved but shutting down employment and end of bargaining.
o Legal personality of the concern comes to an end.
• PRE-REQUISITES
o Sec 25-FFA of ID Act, 1947 and Sec 74 of IR Code, 2020: Sixty days' notice to be given of intention
to close down any undertaking.
o Sec 25-FFF of ID Act, 1947 and Sec 75 of IR Code, 2020: Compensation to workers in case of
closing down of undertakings
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 RETRENCHMENT
• Retrenchment means the discharge of surplus labour or staff by the employer for any reason
whatsoever, otherwise than by way of punishment inflicted as a measure of disciplinary action.
• Sec. 2 (oo) of ID Act, 1947 and Sec 2(zh) of IR Code, 2020 defines:
o Retrenchment means the termination by the employer of the service of a workman;
o The termination may be for any reason whatsoever;
o But otherwise than as a punishment inflicted by way of disciplinary action,.
• The following are not retrenchment :
o voluntary retirement of a workman, or
o retirement of a workman on reaching the age of superannuation; or
o termination of the service of a workman as a result of the non-renewal of the contract of
employment between the employer and the workman concerned on its expiry or of such
contract being terminated under a stipulation in that behalf contained therein; or
o termination of service of the worker as a result of completion of tenure of fixed term
employment; or
o termination of the service of a workman on the ground of continued ill- health
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LAY-OFF
• Sec 2(kkk) of ID Act, 1947 and Sec 2(t) of IR Code: “lay-off” means the failure, refusal or inability of an
employer on account of shortage of coal, power or raw materials or the accumulation of stocks or the
break-down of machinery or natural calamity or for any other connected reason, to give employment to
a worker whose name is borne on the muster rolls of his industrial establishment and who has not been
retrenched.
• FEATURES
o Lay-off ordinarily means temporary dismissal of a workman.
o Lay-off must be occasioned by employer’s failure, refusal or inability;
o Must be on shortage of coal, power or raw materials or the accumulation of stocks or the break-
down of machinery or natural calamity or for any other connected reason;
o Workman’s name should be on the muster rolls of the industrial establishment;
o Workman should not have been retrenched.
o Employer-employee relationship does not come to an end, but merely suspended.
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TRADE UNIONS
• Section 2(h) TRADE UNIONS ACT 1926 A Trade Union may be: Either permanent or temporary (for a
specific time period or dispute):
• Firstly, for regulating the relation between
o Workmen & Workmen
o Employers & Workmen
o Employers & Employers
• Secondly, for imposing restrictive conditions on the conduct of trade or business.
• It may be a federation of two or more trade unions.
• Section 2(zl) IR CODE 2020: “Trade Union” means any combination, whether temporary or permanent,
formed primarily for the purpose of regulating the relations
 o between workers and employers or
o between workers and workers, or
o between employers and employers,
• or for imposing restrictive conditions on the conduct of any trade or business
WORKER

• Trade Union Act, 1926:

o Section 2(g): “trade dispute” means any dispute between employers and workmen or between
workmen and workmen, or between employers and employers which is connected with the
employment or non-employment, or the terms of employment or the conditions of labour, of
any person, and
o “workmen” means all persons employed in trade or industry whether or not in the employment
of the employer with whom the trade dispute arises.
• IR Code, 2020:
o Section 2(zr): “worker” means any person (except an apprentice as defined under clause (aa) of
section 2 of the Apprentices Act, 1961) employed
o in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory
work for hire or reward,
TRADE DISPUTE

• Trade Union Act, 1926:

Section 2(g): “trade dispute” means any dispute between employers and workmen or between
workmen and workmen, or between employers and employers which is connected with the
employment or non-employment, or the terms of employment or the conditions of labour, of any
person.
• IR Code, 2020:
Sec 2(zm): “Trade Union dispute” means any dispute relating to Trade Union arising between two or
more Trade Unions or between the members of a Trade Union inter se.
CRIMINAL IMMUNITY OF TRADE UNIONS

• Sec 17 of TU Act: Criminal conspiracy in trade disputes

• Now Sec 17 of IR Code: Criminal conspiracy in furtherance of objects of Trade Union
• Sec 120B of IPC: Punishment of criminal conspiracy
• CONDITIONS
o The person seeking the immunity should be the office-bearer or member of a TU;
o Such TU must be registered;
o The members should have had the agreement to achieve some lawful object;
o The objects of the agreement must be covered under Section 15 of the IR Code; Protection is
only for those conspiracies covered under S 120B(2) of the IPC; and
o If the agreement is an agreement to commit an offence then no protection is available under the
Code.
• SCOPE:
o Sec 17 permits declaration of strike in furtherance of Trade Dispute subject to the provisions of
the IR Code, 2020 including Sec 62, 63 and 64.
o It provides immunity only from criminal conspiracy not from criminal offence.
o Immunity is available only to the extent of legal and peaceful strike.
o There is no immunity from the offence of criminal conspiracy in cases of illegal strike, as such
activity is punishable under Sec 86(16) of the IR Code, 2020.
o Example: Gazette of India Clause 16, states that inducing a person to make a breach of contract
amounts to civil action, which is a criminal conspiracy covered under Sec 17.
 o The immunity does not extend to an agreement to commit an offence or intimidation,
molestation or violence amounting to an offence.
o Peaceful strike or gathering is permitted.
o But when it resorts to unlawful confinement of person or criminal trespass or there is indulgence
in criminal force or criminal assault or mischief to person or property, there is no exemption
from liability.
o Slogan shouting is permitted, but using abusive language towards the employers, their staffs and
visitors are subject to other laws of the land.
CIVIL IMMUNITY OF TU

• Sec18 of TU Act: Immunity from civil suit in certain cases

• Now Sec 16 of IR Code: Immunity from civil suit in certain cases
• CONDITIONS:
o The conditions for such protection against any civil suit or other legal proceedings are:
o A registered TU
o Persons seeking immunity must be members or office-bearers of the TU
o A trade dispute, either existing or contemplated
o Specific grounds for the protection are:
o Act of inducement,
o Procurement or
o Interference must be by lawful means and not by means which would be illegal or wrongful by
other provisions of law.
o Thus if acts done in furtherance of a trade dispute involve any violence, etc. then the immunity
will no longer be available.
• ILLUSTRATIONS:
o The acts of peaceful picketing are protected under Sec 18.
o The picketing ceases to be peaceful, the moment it results in a private or public nuisance.
Intimidation or indulging in gherao or wrongful confinement of officers of the managerial staff
other members of the public in premises of that establishment will be unlawful.
o Any show or threat of violence, or any other unlawful threat likely to create fear in the mind of a
reasonable man will render picketing unlawful. Pickets cannot compel people to listen to them.
They cannot obstruct the passage of customers, goods, vehicles, etc.
ENFORCEABILITY OF AGREEMENTS
Sec 19 of TU Act and Now Sec 18 of IR Code, 2020:

• Notwithstanding anything contained in any other law for the time being in force, an agreement
between the members of a registered Trade Union shall not be void or voidable merely by reason of
the fact that any of the objects of the agreement are in restraint of trade:
• Provided that nothing in this section shall enable any Civil Court to entertain any legal proceeding
instituted for the express purpose of enforcing or recovering damages for the breach of any
agreement concerning the conditions on which any members of a Trade Union shall or shall not sell
their goods, transact business, work, employ or be employed
REGITRATION OF TU

• TU Act provides for registration, wherein the registration is voluntary.

• Registration grants the TU legal status of a body corporate.
• The Act provides with certain benefits and privileges to be sought if the TU gets itself registered.
• Though, it is up to the TU to get itself registered under the Act or not. Whereas, in some cases the TU is
not allowed registration under the Act, like association of civil servants.
• Section 3 to 6 describes the details and perquisites for Registration. Specific state authority appoints
Registrar for each state for registration of Trade Union under the TU Act. Trade Union shall fulfill the
said requirements which are mentioned in the act for successful registration of the TU otherwise it can
be rejected by Registrar. Section 7 to 10 describes Registration, certificate of registration, and
cancellation of certificate of the TU.
• Steps involved in the registration of TU can be divided into four broad categories:
o Appointment of Registrar
o Mode of Registration
o Rights and Duties of Registrar
o Legal Status and Recognition of Trade Union.
1. Appointment of Registrar:
As per Section 3 of the Trade Union Act, 1926 appropriate state authority shall appoint a person to be
Trade Union’s registrar of Trade Unions. The appropriate state authority be it State or Central
Government, under certain circumstances can also appoint additional and Deputy Registrars if it thinks
is fit for smooth exercising and discharging the powers and duties of the Registrar. However, such a
person will work under the direction of the Registrar. Registrar may specify the limit of the powers
he/she can exercise
2. Mode of Registration: Mode of Registration of TU is described under Section 4 (1) of the TU Act, 1926.
At least seven persons are required to form a trade union. Once this condition is fulfilled, they can
apply for its registration under the abovementioned section. These applicants must be members of the
trade union in question.
In order to check the agglomeration of various trade unions, many thinkers suggested the minimum
number of people forming a TU for the purposes of registration shall be increased to 10% of total
employees of the unit, yet the minimum of seven-person rule employed therein shall also be followed.
This may result in strengthening the position TUs. Form “A” mentioned in Section 5 of the TU Act, 1926
shall be sent to the Registrar of Trade Unions for its registration.
Every application must be accompanied by the personal and professional details of members and office
bearers making such application, name of the TU, address of its head office. Also, in cases where a TU
has been in existence for more than one year before applying for its registration, a detailed financial
statement along with details of all assets and liabilities that the union holds as per the prescribed
format shall be submitted to the Registrar of TU along with the applica¬tion for registration. Copy of
Rules of Trade union shall be accompanied with every application. The rules made shall be in coherence
with the provisions of Section 6 of the TU Act, 1926.
3. Rules of a Trade Union:
Union shall not be entitled to registration under this Act, until and unless certain conditions are fulfilled
in accordance with the provisions of Section 6 of this Act. The rules thereof provide for the following
matters. Firstly, the name of TU, its Object of establishment, purposes for which the general funds and
expenditure, rules regarding the maintenance of a list of members, the procedure provided for the
crosschecking of the list of members by office-bearers and members, the procedure for the admission
of ordinary members, honorary or temporary members as office bearers. The conditions under which
members are entitled to benefit from the TU are also ascertained by the rules along with fines or
forfeitures that can be imposed in certain cases. The procedure of amending or rescinding the rules in
the future is also mentioned here. The process of appointing and removing members of the executive
and the other office-bearers is also specified in rules. The safe custody of the funds, an annual audit of
the accounts, and the rights for the inspection of the account books by officers and members are also
part of the rules. Lastly, the procedure for dissolving the TU shall also be mentioned in the rules.
4. Rights and Duties of Registrar:
Empowered by the Section 7 of the Trade Union Act, 1926, the Registrar of TU can make further
inquiries as per the situation on account of application for registration to be sure that the application is
in coherence with the contents of section 5. However, such inquiries shall be made directly from the
applicant in question and not from any third party. The roles and responsibilities of the Registrar of TU
 regarding registration are specified in Section 8 of the Trade Union Act, 1926. If satisfied with the
requirements for the registration of the union, the Registrar has to register the said TU by entering in a
register. After this, a letter of successful registration shall be issued to the TU. In case of non-
satisfaction, the letter of refusal for registration shall be issued to the TU.
No time limit for the acceptance or refusal of registration has been prescribed in the act. However,
there are legal directives issued by the Court to the Registrar of Trade Unions to specify a specific date
at the start of processing of the application and duly adhere to the date. NCL has suggested 30 days
excluding the time which the Union takes in answering questions raised by the Registrar for the
acceptance or refusal of registration by the Registrar. The TU (Amendment) Bill, 1982 has on the other
hand suggested the time limit of 60 days for the same. In cases of refusal of registration of TU, Registrar
is under the obligation of stating the detailed reasons for such refusal.

LEGAL STATUS OF REGISTERED TU

• Sec 13 of TU Act 1926 and Now in Sec 12 of IR Code, 2020:

• Every registered TU is a body corporate by the name it is registered Accordingly, it has certain benefits
as a body corporate, which are:
• Perpetual succession
• Common seal
• Power to sue and be sued in its own name
• Power to acquire and hold property
• An entity distinct from its members
• Upon successful registration, a TU assumes to become a corporate body by the name under which it is
registered. A registered TU must have perpetual succession rights and its common seal. A regis¬tered
TU is an entity distinct from the members of which, the trade union is composed of. It has the right to
contract and the right to hold moveable and immoveable properties and to the right to sue and be sued
under the name in which it is registered. Registrars issue the certificate of registration in the form
prescribed under Section 9 and it is a piece of conclusive evidence.
• National Organization of Bank Workers’ Federation of Trade Unions v. Union of India (1993)
o “A registered labor union is considered a legal organization since it is deemed to be a body
corporate. On the other hand, an unregistered trade union will not be considered a legal body.
As a consequence, a registered trade union has perpetual succession and a common seal, as well
as the authority to obtain, keep and enter into contracts. It also has the ability to sue and, as a
result, to be sued.”
HISTORY OF TU
Trade unions are usually perceived to be a blend of laborers as it were. Subsequently the Bombay mechanical
relations act, 1949 rejects the meaning of union, a trade union of bosses.
During the 19th century, the Industrial Revolution brought major changes to western countries. the scientific
and technological advances in the industrial sector, brought enormous growth in every society, which led to the
creation of two classes, namely the working or the wage earnings class and the managerial or entrepreneur
class. Due to the Industrial Revolution, the Trade Union movement in India arose along with the complexity of
the country's economic system.
N.M. Lokhande founded India's first organized labor movement in 1884. During the years 1904 to 1911, India's
trade union movement grew dramatically. In 1921, Shri. N.M. Joshi, the father of modern Indian trade
unionism, introduced the Trade Union Bill in the Assembly. Owing to the harsh conditions in India at the time,
there was a fight for the legal recognition of trade unions. The Indian Trade Unions Act, 1926, was enacted
thereafter.
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WORKER
• Section 2(zr) under IR Code, 2020: “worker” means any person (except an apprentice as defined under
clause (aa) of section 2 of the Apprentices Act, 1961) employed in any industry to do any manual,
unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward,
• Essential conditions:
o He must be employed in an industry, i.e. there must be employment of his by the employer and
o there must be a relationship between the employer and him.
• The test to be applied in order to decide whether an employee is a workman is to take into account his
basic or primary duties and the dominant purpose of his employment.

WORKER NOT A WORKER

Bank Accountant; a clerk in a bank Welfare officer of a Govt. of India Undertaking
Asst. medical officer A practising lawyer engaged by a co. on retainer basis to
look after the interest of the co.
Municipal Secretary whose duties are clerical as well as A jail superintendent [Exception (ii) to Sec. 2(s)]
supervisory
Sub-editor of a newspaper; Proof reader in a newspaper A pilot with Indian Air Force [Exception (i) to Sec. 2(s)]
Engineering subordinates Asst. Manager in a Pvt. Firm
A pilot A stenographer attached with a Judge of Delhi HC
A nurse employed in a govt. hospital A person working purely for honorary or gratuitous
reasons
A doctor employed by a charitable hospital (as he Car Driver engaged by Bank Manager, who gets car
performs technical work) allowance from the Bank
A chemist-in-charge discharging the functions of chemist
Internal auditor of a co.
Clerk of a university
Malis employed by Mill for looking after gardens attached
with officer’s bungalows

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LABOUR WELFARE
• Labour welfare, relates to taking care of the well-being of workers by employers, trade unions,
government and non-government agencies.
• It deals with the provision of opportunities for workers and his family/her family for a good life as
understood in most comprehensive sense.
• The basic purpose of labour welfare is to improve the working class and thereby make him a happy
employee and good citizen.
• Welfare means physical, mental, moral and emotional well-being of an individual. Further, the term
welfare is a relative concept, relative in time and space. It, therefore, varies from time to time, from
region to region and from country to country.
• Labour welfare activities may be classified into two categories, viz.:
o Statutory welfare activities;
o Voluntary welfare activities.
• Labour Welfare – 6 Important Features
o Employees Welfare measures includes various facilities, services and amenities provided to
employees for improving their health, efficiency, economic betterment and social status too.
 o Employees Welfare measures are in addition to their wages and services. It is given under some
legal provision and collective bargaining.
o Employees Welfare schemes are flexible and not static therefore it is ever changing and added to
the existing schemes from time to time.
o These employee welfare measures may be introduced by the Government, employees or by
social, charitable or religions institution.
o The aim behind labour welfare scheme is to develop overall personality of the employees and to
retain them as the best workforce.
o By introducing labour welfare schemes, employees are successful in creating efficient, healthy,
loyal motivated, enthusiastic work force in the organisation and to make their work life better
and improves their standard of living.
• Labour Welfare – 8 Main Objectives
o To provide better and safe life and health to the employee.
o To relieve employees from frustration, fatigue, depression.
o To improve intellectual, culture and material conditions of lying of the employees.
o To make the employees happy and fully satisfied.
o To provide them safety while working.
o To enhance employees motivation and morale.
o To create congenial and healthy atmosphere to enable the workers to enjoy their leisure.
o To provide immediate working conditions such as adequate light, heat, ventilation, toilet
facilities, accident and occupational disease presentation, lunch room, recreation room etc.
• TYPES
o Intra-Mural and Extra-Mural Welfare Services:
o Intramural Services:
Such services are provided to the employees within the establishment. They include washing and
bathing facilities, latrines and urinals, crèches, rest shelters, canteens, uniform, medical aid, library,
recreation facilities, free or subsidised food, etc.
o Extra-Mural Services:
Such services are provided to the employees outside the establishment. They consist of housing
accommodation, transport, maternity benefits, children’s education, sports facilities, family and
child welfare, holiday homes, leave travel facilities, workers’ cooperative stores, fair price shops,
credit societies, vocational guidance, interest free loans, etc.
• Welfare services may broadly be classified into:
o Economic
o Recreational, and
o Facilitative.
• A comprehensive list of welfare activities is given by M.V. Moorthy in his work on labour welfare.
• He divides labour welfare into 2 broad categories:
o Welfare measures inside the work place and
o Welfare measures outside the work place.
• Welfare Measures inside the Work Place:
o Conditions of work environment –
▪ Neighbourhood safety and cleanliness.
▪ Up-keeping campus, walls, gardens, doors etc.
▪ Workshop sanitation, temperature and humidity control, lighting, ventilation, elimination
of dust and smoke.
▪ Control of effluents.
▪ Comfort during work, i.e., good seating arrangements.
▪ Work distribution genuine i.e. time for lunch break, rest hours, coffee break etc.
▪ Workman safety measures.
▪ Supply of necessary beverages.
 ▪ Safety measures like guards, helmets, aprons, goggles etc. to be provided to employees
for safety.
▪ Conveniences like Toilets, Restrooms, Wash basin, Water cooler, Canteen etc.,
Management of workers cloak room and library.
• Welfare Measures outside Workplace:
o Houses, bachelor’s quarters.
o Water, sanitation, waste disposal.
o Roads, parks, lightings, gardens etc.
o Schools, nurseries, banks, transport etc.
o Health and medical services like hospitals, dispensary, emergency ward etc.
o Gymnasium, study circles.
o Watch and ward security.
o Recreation – games, clubs, craft centres, cultural programs i.e. music clubs, interest and hobby
circles, festival celebrations, study circles, library, swimming pool theatre etc.
o Community leadership development, committee of representa­tives, women’s club etc.
• In India, the main agencies engaged in labour welfare include:
o Central government;
o State governments;
o Employers;
o Trade unions or employees’ organisations; and
o Non-government organisations (NGOs).
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INDUSTRIAL DISPUTE
• ID ACT 1947 Sec 2(k): “Industrial dispute & Sec 2(q) of IR Code, 2020: “industrial dispute”
• The definition is in three parts:
• Real and substantial dispute- there should be a dispute or difference;
• Parties to the dispute- dispute should be between employers and employers, or between employers and
worker, or between worker or worker;
• Subject matter of Industrial Dispute
• The industrial dispute may relate to wages, bonus, dearness allowance, etc. or to any matter connected
with the terms and conditions of employment of the workers or on some general questions on which
each group is bound together by a community of interest [D.N. Banerjee v. P.R. Mukherjee (1953)]
COMMUNITY OF INTEREST

• For industrial dispute there must exist some community of interest.

• If the dispute is a collective dispute, the party raising the dispute must have either a direct interest in
the subject matter of dispute or a substantial interest therein in the sense that the class to which the
aggrieved party belongs is substantially affected thereby.
• The above test of ‘direct and substantial interest’ was laid down in N. K. Sen v. Labour Appellate tribunal
(1953) 1 LLJ (Bom) and was approved by SC in the case of Workmen of Dimakuchi Tea Estate v
Dimakuchi Tea Estate (1958).
• WORKMEN OF DIMAKUCHI TEA ESTATE V. DIMAKUCHI TEA ESTATE(1958)
o The SC observed that the expression ‘any person’ cannot mean anybody and everybody in this
wide world. Otherwise, it would be open to the workmen not only to raise a dispute with regard
to the terms of employment of persons employed in the same industry as themselves, but the
terms of employment of any workman or any labourer anywhere in the world.
 o The court held that Dr. Banerjee was not a ‘workman’. He belonged to the medical or technical
staff- a different category altogether from workmen.
o The appellants had neither direct nor substantial interest in his employment or non-employment
and even assuming that he was a member of the same Trade Union, it cannot be said that the
dispute regarding his termination of service was an industrial dispute within the meaning of Sec
2(k) of the Act.
• Workmen of Indian Express Newspapers Ltd. v. Management of Indian Express Newspapers 1970
• Facts:
o A dispute relating to two workmen of Indian Express Newspapers Ltd. was espoused by the Delhi
Union of Journalists which was an outside union. About 25% of the working journalists of the
Indian Express were members of that union.
o But there was no Union of the Journalists of the Indian Express.
• Held:
o It was held that the Delhi Union of Journalists could be said to have a representative character
qua the working journalists employed in Indian Express and the dispute was thus transformed
into an industrial dispute.
SCOPE OF ID ACT
The objective of the Industrial Disputes Act is to secure industrial peace and harmony by providing machinery
and procedure for the investigation and settlement of industrial disputes by negotiations.
The laws apply only to the organised sector.
INDUSTRY

• Section 2(j) of ID Act reads:

• “industry” means any business, trade, undertaking, manufacture or calling of employers and includes
any calling, service, employment, handicraft, or industrial occupation or avocation of workmen;
• Sec 2(p) of IR Code
• The definition of industry has been the subject of much discussion regarding its judicial interpretation
from 1950 to 1962. The judiciary gave a wide interpretation to the definition but from 1962 to 1978 the
interpretation was narrowed, and finally it was in 1978 that wide interpretation of industry was given by
a seven judge bench in Bangalore Water Supply and Sewerage Board v A. Rajappa AIR 1978 SC 548.
First phase between 1950-1962
1. D. N. Banerji v P. R. Mukherjee And Others 1953
• First time the court dealt with the definition of industry and it held that municipal functions are
analogous to business or trade.
2. State of Bombay & Others vs. The Hospital Mazdoor Sabha & Others 1960
• The object and the scope of the Act, as apparent from its various provisions, made it amply clear
that the Legislature in defining the word 'industry' in Sec 2(j) of the Act was deliberately using term
of wide import in its first clause and referring to several other industries in the second in an
inclusive way obviously denoting extension.
• The Court observed that undue importance cannot be attached to the conventional meaning
attributed to trade or business in construing the wide words of the definition since it has lost some
of its force and can no longer be wholly valid for the purpose of industrial adjudication in a modern
welfare state.
• Section 2(j) does not define “industry” in the usual manner by prescribing what it means;
• the first clause of the definition gives the statutory meaning of “industry” and
• the second clause deliberately refers to several other items of industry and brings them in the
definition in an inclusive way. It is obvious that the words used in an inclusive definition denote
extension and cannot be treated as restricted in any sense.
 3. Corporation of the City of Nagpur v. Its Employees 1960
The definition of “industry” is in two parts; one part defines from the standpoint of the employer and
the other from the standpoint of the employee.
The regal/sovereign functions were excluded from the purview of the definition of industry.
Second Phase between 1962-1978
During this period reversal of the trend started and the courts gave a narrow interpretation to the term
“industry”.

National Union of Commercial Employees v Industrial Tribunal AIR 1962 SC 1080

For the years 1956 and 1957 a claim for bonus was made against the firm by their employees before the
Industrial Tribunal to which the dispute was referred by the State Government for adjudication under the
provisions of the Industrial Disputes Act, 1947.
A CASE THEN LAID DOWN
1. Triple test:
i. Systematic activity
ii. Organised by cooperation between employer-employee (whether directly or indirectly)
iii. For the production and/or distribution of goods and services calculated to satisfy human needs
and desires (material things/services)
2. Dominant Nature Test:
i. Where a complex of activities are involved, some qualifying for exemptions not others,
predominant activity test and integrated activity test would apply here.
ii. The whole undertaking would be industry wherein those who are not “workman” would not be
able to benefit from the status.
iii. Sovereign functions only qualify for exemptions, not the welfare or economic activities taken up
by govt./statutory bodies.
THEN Re-examination of Bangalore water supply case
Amended definition of Industry
“industry” means any systematic activity carried on by co-operation between an employer and his workmen
(whether such work- men are employed by such employer directly or by or through any agency, including a
contractor) for the production, supply or distribution of goods or services with a view to satisfy human wants or
wishes (not being wants or wishes which are merely spiritual or religious in nature), whether or not:
(i) any capital has been invested for the purpose of carrying on such activity; or
(ii) such activity is carried on with a motive to make any gain or profit, and includes-
a) any activity of the Dock Labour Board
b) any activity relating to the promotion of sales or business or both carried on by an establishment.
AND DID NOT INCLUDE VARIOUS ATTRIBUTES
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INDUSTRIAL DISCIPLINE
Industrial discipline refers to orderly working of the employees of an industrial
undertaking in accordance with established rules, regulations and conventions.
Discipline is a force that prompts an individual to observe rules, regulations and
procedures to attain an objective. In the broad sense, discipline means orderliness
— the opposite of confusion. In an organization, discipline is the orderly conduct
of its members.
in India, the principles of natural justice are followed in dealing with cases of
indiscipline. The accused is to be given opportunity to defend himself and, under
no circumstances, a man with sense of partiality should be appointed a judge and
punishment should never be disproportionate to offence.

The following principles were discussed:

1) There should be no lockout or strike without notice.

2) No unilateral action should be taken.

3) No recourse to go-slow tactics.

4) No deliberate damage to plant or property.

No acts of violence, intimidation, coercion or instigation.

6) Existing machinery for settlement of disputes should be utilized.

7) Awards and agreements should be speedily implemented.

8) No agreement violating cordial industrial relations should be entered into.

Objectives of Industrial Discipline The main objective of Industrial discipline is to: i) get co-operation of subordinates
within the framework of management's policy for fulfilling the target and not merely to enforce authority; ii) to reform
the offender causing displeasure, deter others from making the same mistake.

The concept of misconduct is a general concept and is not confined to labourmanagement relations only. Misconduct is a
specific word with specific connotation and it is difficult to lay down any general rule in respect of this problem. Under the
Indian Penal Code and other special and local laws, some acts or omissions are offences for which a person can be
punished by the sovereign power of state

The word `misconduct'' has not been defined either in the Industrial Disputes Act 1947 or in the Industrial Employment
(Standing Orders) Act, 1946. The meaning given to the word ` misconduct' in the Oxford Dictionary in "malfeasance or
culpable neglect of an official in regard to his office".

TYPES OF MISCONDUCT AS in Model Standing. Orders

Willful insubordination or disobedience, whether alone or in combination with others ,to any lawful and reasonable order
of a superior. theft, fraud or dishonesty in connection with the employer's business or property. willful damage to or loss
of employer' s goods or property. taking or giving bribe or any illegal gratification. habitual absence without leave or
absence without leave for more than ten days. habitual late attendance. Riotous, or disorderly behaviour during working
hours at the establishment or any act subversive of discipline. habitual negligence or neglect of work. frequent repetition
of any act or omission for which a fine may be imposed to a maximum of 2% of the wages in a month; and striking work
or inciting others or strike work in contravention of the provisions of any law or rule having the force of law. The Bombay
High Court in Sharda Prasad, Tewari v. Central Railway, (1960, 1 L.L.J. 167 Bombay) enumerated broadly the following
specific illustrative cases of acts of misconduct, the commission of which would justify dismissal of the delinquent
employee