4Th SEM-LLB (Labour Law)

1. Discuss the procedure relating to the registration of a Trade union

under the Trade Unions Act,1926?

Introduction: During the end of 1925, the number of trade unions

eventually increased. They demanded for securing the rights of the
employees and machinery dealing with settlement and prevention of
industrial disputes. The continuous exploitation of the employees by the
employers resulted in the formation of the ‘Trade Unions Act, 1926’ in
order to protect their interests and fulfil their genuine demands.

Definition of Trade Unions: According to Indian Trade Unions Act,

1926 defines trade unions as “ any combination, whether temporary or
permanent, formed primarily for the purpose of regulating the relations
between workmen and employers or between workmen and workmen, or
between employers and employers, or for imposing restrictive conditions
on the conduct of any trade or business and includes any federation of
two or more trade unions”.
Chapter II of the Trade Unions Act, 1926 deals with the provisions of
the registration of the trade unions.

Procedure for registration of a trade union:

The four procedure involved in registration of trade unions are as
follows:

1. Appointment of Registrar
2. Mode of Registration
3. Rights and Duties of Registrar
4. Legal Status of Registered Trade Union.

1. Appointment of Registrar : Under Section 3, the registrar is

appointed for the process of registration of the trade union.
Also, the appropriate government is authorised to appoint additional and
deputy registrars for a particular state, where the registrar of a trade
union is unable to discharge the powers and functions. Within a local
limit, he may exercise the power and functions as Registrar as prescribed
for this purpose.

2. Mode of registration: Section 4(1) of the Act, talks about the

registration of trade unions. Which says that for the purpose of
registration of the trade union, there should be a minimum of seven
members. The reason behind the fixation of a minimum of seven
members is to encourage the formation of more and more trade unions.

In order to summarize, Section-7 talks about the two conditions required

to fulfil the registration of a trade union. These conditions are:-
1. Requirement of seven or more members as signatories.
2. Provided that there are 100 or 10% whichever is less are
employed in the industry.

Application for registration: According to the Section-5, the

application shall be made to the registrar for the registration of trade
union and it should be followed with the copy of the rules of the trade
union and the following particulars:
1. The name, occupation and address of the members who all are
making the application;
2. The name of the trade union and the address of its head office;
and
3. The titles, names, ages, addresses and occupations of the office-
bearers of the trade union.
If a trade union already exists for more than a year, then a copy of the
assets and liabilities of the trade union should be submitted along with
the application for registration.

3. Rights and Duties of Registrar:

(i) Power to call: As per Section 7, the registrar has the power to call
members of the application to acquire further information to check
whether the application is complete as per the provision of Section 5, or
the trade union is enabling for registration under Section 6, and if all
such information is incomplete, the registrar may refuse to register the
Trade Union.

(ii) Registration: Section 8 of the Act mentions that if the Registrar is

satisfied that the Trade Union has complied with all the requirements of
the Act in regard to the registration, then he shall register the Trade
union.

(iii) Certificate of registration: As per Section 9, the registrar shall

issue a certificate of registration, after registering a trade union under
Section 8. The trade union can produce the certificate as evidence that it
has been rightly registered under this Act.

(iv) Cancellation of registration: As per Section 10 of the Act, the

registration of the trade union can be cancelled if the certificate of
registration is withdrawn or cancelled by the registrar.

(v) Appeal (Section-11):

If any person doesn’t agree with the decisions of the registrar related to:-
 Refusal to register the union,
 Withdrawal or cancellation of a certificate of registration.
May appeal within the prescribed time, in following-
 The head office of a trade union which is situated within the
restrictions of a presidency town to the High Court,
 The head office of a trade union which is situated, within the
jurisdiction of a Labour Court or an Industrial Tribunal, to that
court or tribunal as the case may be;

(vi) Time period for registration of a trade union:

According to the Trade Unions Act,1926, no time period has been
mentioned for the approval or refusal of registration. It is a statutory
duty of the registrar to register the trade union if all the requirements of
registration are fulfilled duly.
CASE LAW- ACC Rajanka Lime Stone Quarries Mazdoor Union v.
Registrar of Trade unions (1958)
Facts- The petitioner sent an application for registration of Union on
31st July 1957 to the registrar of Trade Unions Government of Bihar,
Patna, under a registered postal cover with acknowledgement due. The
Registrar of Trade Union received the application on the 3rd of August,
1957. For a long time, there was no action taken by the Registrar of
Trade Unions.
Petitioner sent many reminders to the Registrar to speed up the process
of registration and on 23rd September, a telegraphic reminder was sent
by the petitioner, but there was no response to it.
No action was taken for over 3 months, therefore the Union filed a writ
petition before the Patna High Court. It requested that the Registrar of
Trade Unions should be governed to register or refuse to register the
Union as his statutory duty.
Judgement– It was held by the High Court of Patna that, if the Registrar
is satisfied that application of registration is fulfilled with all the
requirements of the Act, then as per Section 8 it is his statutory duty to
register a trade union. The court authorized the registrar to deal with the
application of the trade union according to the law as soon as possible.

4. Legal Status of Registered Trade Union:

Upon the registration, a trade union assumes to a corporate body by the
name under which it is registered. A registered trade union shall have
perpetual succession and its common seal. A registered trade union is an
entity distinct from the members of which, the trade union is composed
of It enjoys power to contract and to hold property both moveable and
immoveable and to sue and be sued by the name in which it is registered.

Provisions to be contained in the rules of a Trade Union:

As per section-6 of the act, a Trade union shall not be entitled to register
under the act, if the provisions and rules mentioned under the act are not
duly complied. The rules are as following:

1. The name of the trade union

 2. The object for which the trade union has been established;
3. The whole of the purposes for which the general funds of the trade
union shall be applicable;
4. The maintenance of a list of the members of the trade union;
5. The admission of ordinary members (person engaged or employed
in the industry) with which the trade union is connected;
6. The conditions under which any member shall be entitled to any
benefit assured by the rules and under which any fine or forfeiture
may be imposed on the members;
7. The manner in which the rules shall be amended, varied or
rescinded;
8. The manner in which the members of the executive and the other
office bearers of the Trade Union shall be elected and removed;
9. The manner in which the trade union may be dissolved[4].

Case Law: Tirumala Tirupati Devasthanam (1993)[3]

In this case, the court held that for the purpose of regulating the relations
between the workmen and the employers, any group of employees may
be registered as a trade union under the act.

Benefits of registration of trade unions:

A registered trade union acquires the status of a separate legal entity,
which means that it can enter into contracts and can also sue others.
Privileges of registered trade unions
The Trade Unions Act, 1926 has made provisions under Sections 17 &
18.
Section 17 provides an exemption from punishment of criminal
conspiracy:
 Imprisonment for not more than six months.
 Fine or both.
to the members or office-bearers of a registered trade union.
Section 18 provides immunity from civil proceedings:-
 To the registered trade union,
 Any members or office bearers.
 Related to any Actdone in pursuit of a trade dispute to which a member
of the trade is a party on the basis that such Acts Provokes some other
person:
 To breach a contract of employment,
 To interfere in trade, business, employment or some other
person.

Immunities of registration of trade unions:

1. Section 17 provides immunity from the criminal liability.
2. Section 18 provides immunity from civil liability.
3. Section 19 gives the privilege to make agreements in restraint of
trade.

Rights and Liabilities of Registered Trade Unions:

 Objects on which General Funds may be spent.
 Constitution of a Separate Fund for Political Purposes.
 Criminal Conspiracy in Trade Disputes.
 Immunity from Civil Suit in Certain Cases.
 Enforceability of Agreements.
 Right to Inspect Books of Trade Unions.

Conclusion: The existence of a trade union creates a healthy working

relationship between the employer and the employees. It is because of
trade unions that the workers feel that their rights are duly protected and
can anytime create pressure on the employers if they feel that employers
are overpowering them unnecessarily. Apart from this the registration of
trade unions under the Trade Union Act, 1926 helped the trade unions to
gain recognition and certification.
2. Discuss the law relating to prohibition of strikes & lockouts under
the industrial disputes act 1947?

Introduction: In any industry, the two main pillars are employee and
employer. The industry is running when these two pillars coordinate
with each other. But in some times there are clashes of interest between
employer and employee. For the benefit of the industry, it was necessary
to resolve the conflict between employer and employee.
Definition of Strike: Strike word defines under Section 2(q) of the
Industrial Dispute Act, 1947. Strike means stoppage of work by
employees of the establishment. In this strike, a large number of workers
refuse to do work and come together. In this association of employees or
trade unions of the establishment participate in it. In several times
situation arises in the strike that the management of establishment is not
ready to fulfill the demand of employees. The option of the strike is
given by law under the Industrial Dispute Act, 1947.

Types of strike: There are various types of the strike:-

o Slow Down Strike:

In slow down strike workers are not refused to do work or not stop their
work but they simply slow their work. Due to slow production, there is a
loss of employers. Workers show as they are engaged in work. In this
type of strike, both workers and employers bear losses because if
production is not done properly and cause loss then-employer some
times cut the salary of employees.

o Economic Strike:
In an economic strike, workers do strike to fulfill their economic
demands like wages, bonuses, and allowances. Workers completely
stopped their work while his demand is not fulfilled. Demand is to
increase wages, allowances like traveling allowances, house rent
allowances, dearness allowances and also to provide some other facility.

o Sympathetic Strike:
In the sympathetic strike, workers are going on strike just to show
sympathy to those workers of the unit who are under strike. In this
strike, workers have no relation to other units workers and no grievance
to the employer. The various trade union of the different units
participated to strike of another trade union to show sympathy.

o Sit down Strike:

In this sitdown strike workers on strike but come on their place of work
but do not do their work. These types of the strike are also called pen
down or tool down strike in which workers are refused to use pen or
tools because they are useful in work. In Punjab 1998, the Municipal
Corporation of Punjab is going on a pen-down strike because the state
government does not fulfill the demand of workers.

o General Strike:
In the general strike, all the employees of the industry or that region are
going on strike. Generally, it was not against the employer but it is a
political pressure strike influence that government. It is the expansion of
a sympathetic strike.

o Hunger Strike:
In this strike, all the workers are going on fasting no one eats food. They
do that strike in the workplace unless the employer fulfills the demands
and resolve the grievances.

o Wildcat Strike:
Various reasons of strike: There are various reason for the strike

 Unsatisfaction of wages.
 Not a satisfactory policy of the company.
 Working hours are not proper.
 The Rest interval is also not proper.
 Bonus and increments are not good.
 Social security is not provided by the establishment.
 Rules related to provident fund and gratuity is not proper.
 The dispute is related to minimum rates of wages.
 Layoff and retrenchment related issues.
 Wrongfully dismissal of workers.
 Medical, maternity and other benefit are not provided to workers
properly.

Definition of Lock out: Lockout defined under Section 2(l) of Industrial

Dispute Act, 1947. Lockout means temporary closure of any
establishment or industry. The work of the industry is stopped and there
is no worker who is allowed to do work. It doesn’t matter how many
workers are working.
Various reasons of Lockout: There are various reasons are responsible
for the lockout.

 Clashes of interest between workers and employers.

 Continous financial loses also a reason to opt for the option of the
lockout by management.
 There are illegal strikes, regular basis strikes also a reason for lockout
of factories and management.
 Due to unstable government industries or factories do a lockout.
 If any industry involves any illegal activity then it was also a great
reason to lock out the industries or factories.
 The industry is failing to maintain peace and harmony between the
member of industries or factories.
The procedure of strikes and lockouts
In public Utility service

Section 22 Prohibition of Strikes and Lockouts

In the case of an employee

No employee can go on strike in public utility service when there is a

breach of contract.

 If employees want to go on strike then before six months’ notice

provided to the employer to show the intension of the strike.
 After giving notice of six months than within 14 months no employee
can go on strike.
 After the expiry of six months then employees are going on strike.
 If conciliation proceeding is pending then strike is not possible and
after seven days of concluding the proceeding, no strike has
happened.

In case of an employer

No employer can declare lockout in public utility service.

 If employers want to go on lockout then before six months notice is

given to employees.
 After giving notice fourteen days no employer can go on lockout.
 After the expiry period of six months, employers can do a lockout.
 If conciliation proceeding is pending no employer can go on strike
and after seven days of the conclusion of proceeding employers do a
lockout.

If there is strike or lockout already in existence then there is no need to

send a notice but the employer sends intimation to the authority
specified by the appropriate government, notice given to the authority of
that particular region or otherwise given in general.

The notice of strike given to any employer in a prescribed format and

mentioned the number of employees who participated in the strike. The
notice of lockout given to any employee in a prescribed format.

In General Services
general Prohibition of strike and lockout (Section 23)

No employer declared lockout in any establishment and workers of

establishment also not declared strike when these condition has
happened

 If conciliation proceeding is pending before a Board and after seven

days of concluded of the conciliation proceeding.
 If a proceeding is pending in Labour Court, National Tribunal,
Tribunal then no employer and employee can go on lockout or strike.
After two months of concluded proceeding also.
 If a proceeding is pending before arbitration and two months after of
conclusion. When the notification is given under sub-section (3-A) of
section 10-A then also no strike and lockout can be declared.
 If the settlement or award is pending then also no one can declare
strike and lockout.

When a strike is declared illegal

According to section 24

When a strike and lockout is contravention to the provision of Section

22 or 23 then strike and lockout declared illegal. It was also declared
illegal when it contravenes the provision of sub-section 3 of section 10.
Provisions for general prohibition of Strikes & Lockouts
Sections 22 and 23 of Industrial Disputes Act, 1947 also contain
provisions for a general prohibition of strikes and lockout. Regarding
strike, Section 22(1) of the Industrial Disputes Act, 1947 provides that
no person employed in a public utility service shall go on strike, in
breach of contract—

 without giving the employer notice of a strike, as from now on

provided, within six weeks before striking; or
 within fourteen days of giving such notice; or
 before the expiry of the date of strike specified in any such
notice as aforesaid; or
(d) during the pendency of any conciliation proceedings before a
conciliation officer and seven days after the conclusion of such
proceedings.

Section 22(1) prohibits going on strike by the workers except where

above conditions are fulfilled. The issue of notice of strike is mandatory.
The date of the strike must be within six weeks from the date of issue of
strike notice. The day of the strike must not be within 14 days from the
date of the notice. There can be no strike on any day before the date
specified in the strike notice. Strike by workmen in violation of section
22(1) is illegal.

Section 22(2) of the Industrial Disputes Act, 1947 provides that no

employee of any public utility service shall lock-out any of his
workmen-

(a) without giving them notice of lock-out as hereinafter provided,

within six weeks before locking out; or

(b) within fourteen days of giving such notice; or

(c) before the expiry of the date of lock-out specified in any such notice
as aforesaid; or

(d) during the pendency of any conciliation proceedings before a

conciliation officer and seven days after the conclusion of such
proceedings.

Thus, Section 22(2) of Industrial Disputes Act, 1947 prohibits employer

to declare lockout without complying with above conditions. Any
lockout without complying with above conditions is illegal.

Where there is already in existence a strike or, as the case may be,
lockout in the public utility service, the notice of lock-out or strike shall
not be necessary but the employer or workmen as the case may be shall
send intimation of such lock-out or strike on the day of which it is
declared, to such authority as may be specified by the appropriate
Government either generally or for a particular area or a particular class
of public utility services.

It means that if there is already in existence a strike, the notice of

lockout is not necessary and if there is already in existence a lockout, the
notice of strike is not necessary. In such cases, the parties concerned
have to send intimation of such lockout or strike to such authority as
may be specified in this behalf by the appropriate Govt. on the day of
which it is declared.

Penalty for illegal strikes and lock-outs. [Section 26] of the Industrial
Dispute Act 1947.
Penalty for illegal strikes and lock-outs.- (1) Any workman who
commences, continues or otherwise acts in furtherance of, a strike which
is illegal under this Act, shall be punishable with imprisonment for a
term which may extend to one month, or with fine which may extend to
fifty rupees, or with both.
(2) Any employer who commences, continues, or otherwise acts in
furtherance of a lock-out which is illegal under this Act, shall be
punishable with imprisonment for a term which may extend to one
month, or with fine which may extend to one thousand rupees, or with
both.
General Labour Unlon (Red Flag) vs B. V. Chavan And Ors on 16
November, 1984
Labour Department of Karnataka declares Toyota Kirloskar workers'
strike and company lockout as illegal.
Toyota Kirloskar factory lockout was first declared on November 9,2020
after a group of its employees gathered to talk with its management
about issues they have been facing at work. TKM’s workers alleged that
there have been issues of harassment at the workplace, the company was
using the COVID-19 pandemic to increase their workload significantly.
Toyota Kirloskar Motors Employee Union said that earlier if it took 3
minutes to assemble a Toyota Innova, now they had to do it within 2.30
minutes. This increase in workload to workers came with no additional
manpower, no additional salary, and had to be done within regular
working hours of factory. Workers further alleged that they were made
to work without allowing to bathroom breaks or time to drink water. If
any worker stepped away from the assembly line for even a minute, their
pay was cut. They were also subjected to disciplinary action, according
to the union. Another allegation made by its employees and workers was
that the company has been pushing its employees to opt for a voluntary
separation scheme (VSS), in order to be replaced them with contract
workers. According to Toyota Kirloskar Motors Employee Union, over
1,000 employees have left in the last two-and-a-half years, and in the in
November 2020, 150 people have left the company by way of voluntary
separation scheme.
Toyota Kirloskar had suspended 39 members of the workers union,
alleging that they were involved in acts of misconduct and indiscipline.
A source close to the development said there was merely an 'ego clash'
between the workers and management at factory and there are no labour
law violations. Consequently, said workers were placed under
suspension, pending enquiry. In the earlier occasion, Toyota had
declared a lockout at both its plants, located in Bidadi, Karnataka, after
that its workers called a strike following the suspension of the union’s
treasurer early in November 2020.
Toyota Kirloskar lifted the factory lockout on November 19, 2020 on the
Karnataka State government orders but four days later the company
recommenced the lockout after members of the union prevented workers
from resuming duty.
Facts [+]
18-july-2012, India: leading car manufacturer Maruthi Suzuki at
Maneser (Haryana), workers created extreme violence by burning alive
company's general manager human resource (Awanish Kumar Dev) to
death, burnt down office furniture, injured several executives,
supervisors, managers and the Japanese manager of the factory was also
attacked. 91 workers were arrested for this brutal act including causing
heavy damage to the company's property. The sequence of events began
in the morning with a worker beating up a supervisor on the shop floor.
Workers union alleges that this incident happened due to the supervisor
made objectionable remark against a permanent worker, who belongs to
the Scheduled Caste category. When we opposed it, they misbehaved
with us and suspended the worker that led to violence. But the
management alleges that the workers' union prevented the management
from taking disciplinary action against the worker. Finally management
declared temporary close down of the car Manufacturing plant that
produces about 1600 units per day. In terms of value the per day loss is
about Rs. 70 crores. By then Cars waiting for delivery to its customers
were more than one lakh units that may take more than five months to
begin delivery due to lockout.
As company manufactures market demanded key models like Swift
hatchback and Dzire sedan faces a huge backlog. Maruthi Suzuki
competitors like Ford, Skoda and Hyundai got benefited in the market as
many people shift to other brands in the view of long waiting period for
delivery of cars from Maruthi Suzuki.
No payment for 2000 staff on August 1st,2012
Company decided that no one working at the Manesar plant will be
given salary. According to the rule, after the company's lockout, workers
are not paid till the time it (lockout) is revoked. The monthly salaries of
its employees for the period before the incident, will be paid only after
the lockout is withdrawn and the plant starts functioning. Workers had
damaged everything like computers, server cables and entire data on
July 18. Eventually company has no records of its employees and their
duty-hours details for the entire month and finally company decided to
pay its employees only after retrieving their data.
3. Discuss various theories of wages and examine their validity and
relevance in present era of privatization?
Introduction: The economic stature has been through various theories
before it could become what it is now. Theories play a very important
part as they realise again and again what all has been analysed until now
and what were the reasons that a particular theory is not followed in the
present. Wages and productivity are a very basic and crucial part of
Economics.
Definition of Wages: Under Indian law, wages are defined in The
Minimum Wages Act, 1948. Section 2 (4) of the Act defines wages as
‘all remuneration which is made by monetary mode for a work done
under an employment’. This Section provides for certain exceptions as
well such as wages won’t include household supplies, travelling
allowances, the contribution made to PPF etc. The wages are determined
by the demand and supply in the market for labour like other prices.
Definition of Productivity: Productivity is defined as a mode to
measure the efficiency of the products that have been used and the
output they are giving in the economy. It is the ratio of the output
volume to the input volume of the unit. It is regarded as very important
in establishing economic growth and competitiveness in the economy of
the country.
Theories of Wages:

1. Subsistence Theory of Wages: This theory is also known as the Iron

Law of Wages or the Brazen law of Wages. First, formulated by the
Physiocrats, it was later developed by a German economist Lasalle. The
theory states that wages that are provided to a labourer should be a
payment that is just sufficient to satisfy the necessities of life.

2. Standard of living Theory of Wages: It came in the late 19th

century and refined the Subsistence Theory of Wages. It related the
wages of the workers to the standard of living and stated that wages
should be determined by the standard of living of the workers and not by
the subsistence margin.

3. Wage Fund Theory of Wages: This theory’s biggest criticism came

from the Trade Unions in the industries. Alongside the theories of Adam
Smith and David Ricardo, J.S. Mill propounded this theory. This theory
stated that Wages are depended upon the proportion between the
population and the capital. A part of the capital is kept aside for the sole
purpose of wages and the determinant is the population to calculate the
wages.The theory is given a mathematical dimension- “Wages= Wage
fund/ population”.

4. Surplus- Value Theory of Wages: Karl Marx propounded

this theory. He deviated from the Subsistence Theory of Wages and
stated that the wages are drawn to a subsistence level not because of the
population but because of the unemployed labourers.

5. Bargaining Theory of Wages: This theory explains that wages

depend upon the bargaining power of the workers. John Davidson in his
book ‘The Bargain Theory of Wages’ propounded this theory and stated
that there are various factors which influence the wages in a bargain of
the workers and producers. Under this theory, the more the worker is
able to work, the more he gets paid.

6. Residual Claimant Theory of Wages: Propounded by Prof. Walker,

this theory states that the wages of a worker are equal to the product
minus rent, profit and interest. Thus, rent, interest and profits are
understood as not a part of wages and after subtracting such
determinants from the capital of productivity given the wages should be
given to the workers.

7. Marginal Productivity Theory of Wages: It is regarded as the most

satisfactory theory among all others. Von Thunen first stated this theory
and then it was developed by J.B. Clark, Wicksteed and Walrus. The
theory states that the wages of a worker are dependent upon the
productivity of the worker.

Constitutional Validity of the Act:

The Act is constitutionally valid and it can be ascertained from the

following pointers:

1. The Act does not violate Article 19 of the Constitution:

The constitutional validity of the Act was challenged in the cases of U.
Unichonoy vs State of Kerala and Gulmuhommad Tarasaheb vs State of
Bombay. The parties challenged that this law restricted their Article
19(1)(g), as it puts a restriction on freedom of trade. But, the court held
in favour of the Act. It was held that, in the absence of any such Act, the
employers will pay wages, arbitrarily.

2. The Act does not violate Article 14 of the Constitution: It was

contended that the Act violates the ‘equal protection of laws’ clause.
However, the court ruled that the Act does not violate Article 14 in the
case of Bhikusa Yamasa Kshatriya vs Sangammar Akola Bidi Kamgar
Union.

Objectives of the Act:

There were several objectives that this Act needed to ensure:

1. Minimum wages need to be ensured to all blue-collar workers in

the organized sector.
2. Prohibition of exploitation of labour in the workplace.
3. The Act would empower the government to fix minimum wages
and revise those wages from time to time according to the
economic situation of the country.
4. To ensure the application of this Act to a maximum number of
organized sector employers.
Procedure for Fixing and Revising Minimum Wage:

Fixing Of Minimum Rates u/s 3(2)

The appropriate government can fix

 A minimum piece rate

 Minimum time rate
 Overtime rate which is the minimum time or piece rate as a
substitution of some other rate which would have been otherwise
applied for overtime work performed by employees.
 Guaranteed time rate which is the minimum remuneration rate
applicable to employees who had been working on piece rate till now
if he is again employed on time rate.
While revising or freshly fixing the wage rate under the Minimum wages
act

 Varying rates of minimum wage shall be fixed for

o Varying classes of work under the same scheduled employment

o Different scheduled employment

o Various localities and
o Apprentices, children, adolescents, and adults

 Minimum wage rate can either be fixed by one or more of these wage
periods
o Month

o Day
o Hour
o Any other larger wage-period which is deemed appropriate
 Read more about Penalty for Offences under the Act (Section 20) here

Section 4 of the Minimum wages act states that the appropriate

government can either fix or revise the wage rate of scheduled
employments.

However, the following parts shall come under the purview of the
appropriate government in such a case:

 Basic wage rate and special allowance which should be in harmony

with the cost of living index of its workers.
 Basic wage rate either along with or without the cost of living
allowance as well as the authorized cash value of concessions
pertaining to the supply of essential commodities at subsidized rates.
 A comprehensive wage rate comprising of the cash value of the
concessions, cost of living allowance and the basic rate.
Alternatively, a competent authority can calculate the cash value of
concessions and cost of living allowance. This has to be done after
appropriate intervals and according to the directions laid down by the
appropriate government.

Let us understand more about Deductions from Wages here in detail

Section 5 of Minimum Wages Act – Procedure to Fix Or Revise

Minimum Wages
 When the minimum wage rate of scheduled employment is fixed, or
revised for the very first time under this act,
o As many committees and sub-committees can be appointed as
necessary.
 oA notification containing the relevant proposals can be published
in the official gazette containing information related to people
who might be affected by the same. A date also needs to be
specified within a span of two months from the date of
notification within which the proposals should be considered.
 The appropriate government can issue a notification in the Official
Gazette after considering the advice of the committee to fix or revise
the minimum wage rate.
Case Laws:
 In the case between the State of Madras and P.N. Ram Chander Rao
in 1956, the court ruled that any notification not specifying the
manner and what interval special allowance made payable to be
adjusted is a defect and impaired by an apparent error of law.
 In the case between Cashew Manufacturers and Exporters
Association v/s State of Kerala in 1999, the high court ruled that the
government is not bound by the Advisory Board's report.

Conclusion: There are other different theories as well which provide for
various analyses and structure of wages. The Marginal productivity
theory has been the closest to a satisfactory theory of wages. It has its
own criticism but the feature that it directly relates to the productivity of
the worker makes it stand out.

4. What is the meaning of collective bargaining? Explain its merits

and demerits? Explain the value of agreements arrived at through
collective bargaining?
Meaning of collective Bargaining: Collective bargaining refers to the
process of negotiation between employers and groups of employees with
regard to terms of employment. It takes place among the management of
the company and trade union representing the group of workers to arrive
at a mutual decision. This is termed collective bargaining as here both
the parties eventually agree to a decision which is taken after a lot of
discussions and negotiations. The employment conditions include
working conditions, workplace rules, working hours, shift length, base
pay, and overtime pay, work holidays, vacation time, sick leave, health
care benefits, and benefits at the time of retirement.
Features of Collective Bargaining:
 Collective process.
 Participation of workers and management in bargaining.
 Continuous process, it is a continuous process where negotiation does
not end.
 This includes both industrial growth as well as per capita growth of a
worker.
 It promotes an eco-friendly environment in the workplace.

Process of collective bargaining : There are five steps involved in the

process of collective bargaining followed by both parties in order to
reach an amicable solution.

 Preparation: The first step of collective bargaining involves

composition of negotiation team. This team is composed of
representatives of both the parties having proper knowledge and
negotiation skills. Each of the member should be well-versed with
issues which they are going to raise. They should determine the
reason for doing negotiation by having a proper understanding of
main issues.
  Discuss: Now in this step, the ground rules are decided by parties
which will guide the negotiations. The discussion is lead by
representative from management team who is known as prime
negotiator. Here the issues for which the meeting is held are
identified. There are two types of negotiation process which are
piecemeal negotiation and total approach.
 Propose: In this stage, the conversation is initiated by chief
negotiator via an opening statement. The initial demands are put
forth by both the parties. This session is also termed as
brainstorming as here each party give their opinions thereby
leading to arguments and counter arguments.
 Bargain: It is a stage where negotiation begins among the parties
trying to win over one another. The negotiation may continue for
many days till a final agreement is reached by parties. Sometimes
an amicable solution is reached by parties soon but at times even
third party intervenes in the form of adjudication to settle down the
dispute.
 Settlement: This is the final stage of collective bargaining process
where both the parties agree for a common solution to problem. A
mutual agreement is created among management and workers and
is signed by both of them for a universal acceptance.

Advantages of collective bargaining : The advantages of collective

bargaining can be well-understood as given below: –
1. Give workers a larger voice
2. Enhance worker’s quality of life
3. Offer security and stability
4. Prevent employees strike
5. Creates a binding result
6. Is a transparent process
Disadvantages of collective bargaining: Various limitation of
collective bargaining is as discussed below: –
1. Prone to inequality:
2. Requires government duties:
3. Can be a financial burden:
4. Influence relationship between members:
5. Collective bargaining may require everyone to be bound by the
contract.
6. Collective bargaining is not always a process of fair representation.

Types of Collective Bargaining:

Not all types of collective bargaining are the same. In fact, collective
bargaining can be divided into several categories. We've noted some of
the most common types below.5

1. Composite Bargaining
2. Concessionary Bargaining
3. Distributive Bargaining
4. Integrative Bargaining
5. Productivity Bargaining

Scope of Collective Bargaining:

Collective bargaining aims to address concerns that affect employees
and the workplace. These issues include, but aren't limited to,
compensation, working conditions and environment, benefits, as well as
corporate policies and procedures. Collective bargaining also provides
ways to settle disputes that may come up between employers and their
employees.
CASE LAW: In ram Prasad Vishwakarma vs industrial tribunal, the court
observed that “ it was a great disadvantage to the worker to obtain a good
environment of work in which worker get their dignity and wages from
their employers during the days before collective bargaining concept came
into existence. After the establishment of trade union in our country,
collective bargaining became a practice and now it is a rule and law.
5. Explain the salient features of work men compensation act and
discuss in which situations an employer is not liable to pay
compensation for the injuries caused to his employees?

Introduction: Workmen’s Compensation Act was passed in the year

1923 by the Central Government and was implemented by various State
Governments to ensure social security for workers. The provisions of
this Act were made keeping in mind the hazardous nature of the job of
miners, factory workers, transporters, railway servants, etc. This Act was
made to ensure the financial and social security of the employees who
might get injured due to an accident caused during the course of their
employment.

Meaning of the Work men compensation: Ensuring that the injured

workers get superior medical care and compensation for a part of the
income that they lose while not being able to return to work. Protecting
the employers from lawsuits by workers those injured while working.

Salient Features of the Act:

I. Extent and Application:

The Workmen’s Compensation Act, 1923 is applicable to the whole of
India. It also extends to the workers recruited by
organisations/enterprises registered in India and sent abroad for work.

II. Contingencies in which Compensation is Payable:

Compensation is payable in case of temporary or permanent disability or

death resulting from any injury caused during the course of the
employment. The contracting of any disease as specified in Schedule III
to the Act is considered to be an injury caused by accident.
III. Occupational Diseases:

If an employee who is employed under the employment specified in

Schedule III to the Act contracts some occupational disease peculiar to
that employment, he is entitled to get the compensation under the Act.

The qualifying period is specified by the Central Government for the

diseases listed in Part-C. The qualifying time for the diseases mentioned
in the Part-C of the Schedule is as follows:
1. Pneumoconiosis – 7 years
2. Pagassosis – 3 years
3. Byssinosis – 7 years
IV. Administration:

The Act does not provide for Inspectors to be appointed. Under Section
32 of the Act, however, the State Governments/Union Territory
Administrations shall frame rules to implement the purposes of the Act.

V. Settlement of Claims under the Act:

Compensation claims fall broadly into three groups, namely (i)

uncontested cases of disablement; (ii) disputed cases of disablement, and
(iii) fatal cases.

Applicability of Workmen Compensation Act:

The act is known as the Employees Compensation Act,1923. This act is
applicable across India.

The act covers the following under the definition of employee:

 It is for the employees working in factories, mines, docks and other
establishments mentioned under Schedule II of the Act.
 It applies to the person hired to work abroad as mentioned under
Schedule II of the Employee Compensation Act,1923
 It applies to employees employed as drivers, mechanics, helpers, or
persons connected with motor vehicles, captains or other crew
members on aircraft.
 The act does not apply to members of the armed forces of Union &
Workmen who get covered under the Employee State Insurance Act.

The liability of the Employer for Compensation:

Section 3 of the Employee’s Compensation Act deals with ‘Employer’s
Liability for Compensation. This section provides the condition when an
employer is liable to pay compensation to the employees.

The condition is as follows:

 If the personal injury caused to an employee due to an accident that
occurred during employment
 If the injury is an occupational disease mentioned under Part A, Part
B or Part C of the Schedule III of the Employee’s Compensation Act,
the disease should have been caused due to an injury by accident
during employment.

Conditions when employer is not liable to pay compensation:

As per the workmen’s compensation act, an employer has to pay the
compensation to the employee in case of injury caused during
employment.
The employer is not liable to pay such compensation if:
 The injury doesn’t result in partial or total disablement of the
employee for more than three days.
 Any injury that doesn’t result in partial, total disablement or
employee death caused the accident due to:
o The employee was under the drugs or alcohol influence during
the time of the accident.
o The employee was not following the rule or order that the
employer expressly framed for the employee’s safety.
 o The employee has removed the safety guard willingly, provided
for their safety.

Aims and Objectives of the Act:

 The primary aim of this Act is to provide comprehensive coverage
to workers for work-related injuries and disabilities. The Act
focuses on providing workmen with a sustainable life after
suffering any injury at the workplace during the course of
employment.
 The second goal is to provide effective protection against loss of
income.
 Third objective is to provide the injured staff with sufficient
medical treatment and recovery facilities.
 Another aim is to promote employers to reduce work-related
mishaps and develop effective safety measures.
 Workmen’s compensation laws are, above all, designed to reduce
litigation.

Scope of this Act:

This act is liable to the workers who work in an industry mentioned in
the act.

The act protects only those injuries caused by accidents during

employment, but such accidents are subject to certain exceptions.

Case laws:
1. General Manager, B.E.S.T. Enterprise, Bombay v. Mrs Agnes
Facts: B.E.S.T. Enterprise, a public transport service which Bombay
Municipal Company ran. The company owned buses and employed bus
drivers to conduct transport services.

After completing his duty for the work, one of the drivers left the bus
within the depot and boarded another bus to go to his residence.
The bus he boarded collided with a parked lorry, due to which he was
thrown out of the bus on the highway and got injured. He died at the
hospital during treatment.

His widow applied for compensation.

Judgement: In this case, the Supreme Court held that a driver going to
residence from the depot or vice versa is in the middle of employment,
and if he meets an accident, he is liable to receive compensation.

2. R.B. Moondra and Co. v. Mst. B\hanwari and Anr.

Facts: In this case, a truck driver was asked by his employer to drive a
petrol tanker, and the driver found a leak in the tank and took permission
from the employer to look for the source of leakage.

While searching for the source of leakage, he lit a matchstick, and the
tank caught fire.

Judgement: The court held that the family member of the deceased
should receive compensation as the accident took place at the workplace
and during employment.

Conclusion:
The workmen compensation act got enacted for the employees to give
them their financial security in case of an accident that caused a
considerable loss. The act ensures that the employee’s right is protected
even after he is disabled or injured in an accident that happens at their
workplace.
6. Discuss the provision of ‘equal pay for equal work’ under equal
remuneration act?
Introduction: For instance, consider that you are a woman working
really hard to earn well, but you find that there is some other person who
worked half as hard as you but earned double the amount just because
that person was a male. The basic concept underlying, the very
controversial subject, Feminism, is “equity”. Equity refers to a treatment
of equal with equals and Unequal with unequals. The Equal
Remuneration Act, 1976 provides Equal remuneration for both men and
women.
Meaning of Equal pay for equal work: Which means men and women
in the same employment performing equal work must receive equal
pay.The Indian Constitution recognized the principle of 'Equal Pay for
Equal Work' for both men and women, and 'Right to Work' through
Article 39(d) and 41. These Articles are inserted as Directive Principles
of State Policy.
Principle of equal pay for equal work: The Equal Pay Act requires
that men and women in the same workplace be given equal pay for equal
work. The jobs need not be identical, but they must be substantially
equal. Job content (not job titles) determines whether jobs are
substantially equal. The principle of Equal Pay for Equal work was first
introduced in the year 1962 in Kishori Mohanlal Bakshi v. Union of
India. The Supreme court rejected this plea of equal work and equal pay.
Later in 1982 In Randhir Singh vs. Union of India, the Apex Court
recognized and held that the principle of “equal pay for equal work”
though is not a fundamental right but, is certainly a constitutionally valid
principle under Art 14, 39 clause(c).
Case law: Kishori Mohanlal Bakshi v. Union of India
Right of an Employee: Provisions of Equal wages for equal work:
Equal pay for equal work is understood in terms of the gender pay gap
not only in India but also around the world. Equal pay for equal work is
a work environment concept of giving equal wages and facilities to a
man and a woman doing the same work with the same amount of
responsibilities and duties. The Indian Constitution does not expressly
grant this right as fundamental or constitutional but various provisions in
the Constitution of India point towards the implementation of equal pay
for equal work.

Article 14 – Equality before the law that is men and women having
equal rights and opportunities in the political, economic and social
spheres.

Article 15(1) which talks about prohibition of discrimination on grounds

of caste or sex and Article 15(3) which mentions about the various
special provisions laid down which grants various powers to the state to
make positive discrimination in favour of women.

Article 16 which grants special rights which include laws to be made for
the benefit of women and children.

Article 39 deals with principles that are to be followed by the state for
laying down policies regarding equal pay for both men and women.

Article 42: The State is required to make provisions for ensuring just and
humane conditions for a woman in the workplace and ensure proper
provisions are being followed and made regarding maternity relief.

Article 51(A)(e): To quit the practices derogatory to the dignity of a

woman.

Current laws for equal pay for equal work :

1. Workmen’s Compensation Act, 1923
2. Minimum Wages Act, 1948
3. Factories Act, 1948
4. Contract Labour (Regulation and Abolition) Act, 1970
5. Equal Remuneration Act of 1976
6. Code on Wages 2019

The gender pay gap and the struggle for equal pay:
The gender pay gap is understood as the difference between the income
of a male and a female despite doing the same work with equal workload
and responsibilities. In the year 2013, the gender pay gap came out to be
24.82%. It was also found that India ranks amongst the last 10 in female
participation. This proves that not only females are paid less but also
they are not being recognized for their work and the representation is nor
fair.

The major contributing factors in the creation of the gender gap in a

community are:

 Occupational Priorities
 Cultural barrier
 Direct discrimination
 Undervaluation of women’s competence and skills
 Lack of education and training

Equal Remuneration Convention, 1951 : a gender explicit

instrument:

The Convention seeks to address the issue of discrimination in

remuneration between men and women. Article 1 (b) of the Convention
states: “the term equal remuneration for men and women workers for
work of equal value refers to rates of remuneration established without
discrimination based on sex.” It puts an obligation on the states to adopt
legislation that would prevent such discrimination. States must make
laws keeping the following provisions as backbone:
 1. There is a duty on the states to prevent discrimination in
remuneration on basis of gender in the public sector.
2. The state must promote the same in private sectors and any
unreasonable discrimination by organisations or corporations
must be penalised.
3. Collective Bargaining agreements should be promoted between
employers and employees and any clause that goes against the
principle of equal pay for equal work should be declared null
and void (just like in European Union Laws).
4. Remuneration or Wages must be defined accurately.
5. The extension of the right to equal pay for equal work is given
to both similar works as well as work of equal value under the
Convention.
6. The rules must be applied to all workers irrespective of them
being men or women, in the public or private sector and an
effective remedy must be provided in case of any inequality.

Case law: In Markendeya vs. State of Andhra Pradesh, difference in

pay scale, between graduate supervisors holding degree in Engineering
and non-graduate supervisors being diploma and licence holders was
upheld. It was held that on the basis of difference in educational
qualifications such difference in pay scales was justified and would not
offend Article 14 and 16. The Court pointed out that where two classes
of employees perform identical or similar duties and carry out the same
functions with the same measure of responsibility having the same
academic qualifications, they would be entitled to equal pay.

Conclusion: In concluding this topic every individual no matter

regarding their gender, cast, religion should be given proper pay for the
work that they have put in the efforts for and the pay should be
reasonable.