Labour Law

Q1. Distinguish between strike and layoff under Industrial Disputes Act, 1947?

A Introduction:

When the management refuses to accept the demands of the employees or workers, due to
which they mutually decide to stop working, and proceed to strike. Workers used this as a
last option when they don’t find any other way to convince the management, to agree to
their demands. when the employers are looking for domination over the workers and
impose their terms and conditions on them, they keep them out of the business premises and
stop them from performing their job. This is what we call ‘lock-out‘. Both Strikes and Lock-
Out play a significant role in industrial relations, used as tools by the employees and
employers respectively, in an attempt to safeguard their rights and interests.

Definition of Strike:

Strike refers to a condition when one or more body of workers collectively stop the work for
a temporary period while acting in mutual agreement so as to reach a certain end. It is
organized with an aim of exerting pressure upon the management to fulfil their demands or
express their grievances or support other workers, during the course of the dispute.

Strike means refusal to work, decided by the association of workers, to showcase protest, in
order to get their demands fulfilled by the employer or gain concession. So, it involves:

 Voluntary stoppage or suspension of work.

 Abstinence is decided by a worker’s association, whose members are employed in an

industry.

 Strikers collectively deny working.

 Common understanding should be present among the workers.

 Stoppage of work is to fulfil demands, as regards employment or its terms.

 May continue for any number of days.

 Workers resume work when they deem fit.

 A strike is a temporary combined withdrawal of labour from the work. Workers are free to use
this tool, as a form of organized protest by standing outside the workplace, or occupying the
workplace but denying to work. However, it does not imply termination of employer and
employee relationship. The strike is costly to the workers, as it may lead to loss of earnings,
increased emotional tension, depletion in union funds and even loss of employment, in certain
situations.

Types of Strike:

1. Economic Strike: When the strike is due to an economic issue, like better pay, bonus,
benefits, working hours, and working conditions, it is called an economic strike.

2. Recognition Strike: Typical strike, often resulted to pressurize the employer to recognize
the value of workers and deal with them.

3. Sympathy Strike: When more employee union join the strike initiated by another union,
to support them, it is a sympathy strike.

4. Wildcat Strike: When the strike is unauthorized and not supported by the labour union, it
is called a wild cat strike.

5. Sit down Strike: Strike in which the employees strike while remaining at their job in the
factory.

6. Go-slow Strike: In this form of strike, workers do not work at normal speed, which is
usually regarded as misconduct, rather than strike.

7. Hunger Strike: A strike in which all or some of the workers fast, is called a hunger
strike.

Definition of Lock-out:

Lock-Out means the employer temporarily closes down the factory or any unit of the enterprise,
where numerous workers are employed, to handle the uncontrollable situation, till the issues are
resolved. It is used to compel the workers to agree and resume the work as per the terms and
conditions of the employers.
It may result in a huge loss to both the parties, i.e. management and workers. In fact, frequent
lock-outs may lead to the permanent shut down of the factory which leads to the loss of jobs on
a large scale.

Lock-Out involves partial or full temporary locking down of the workplace or halting operations
or denial by the employer to continue employment, of a certain number of employees with an
aim of enforcing demands or showing grievance or to support other employers. It encompasses:

 Temporary shut down of the factory or unit.

 The industry is locked out to enforce demand or terms and conditions.

 Intended to reopen the factory or unit when workers agree to work, as per the demand of
the management and also to scale down the worker’s demand

Difference between Strike and Lock-out:

1. Strike implies the stoppage of work by an association of workmen, working in an

industry, as they collectively refuse to work under a common understanding, to show
grievance or to compel the management to fulfil their demands. As against, Lock-Out is
the opposite of strike, as it is initiated by the company’s management, which results in
psychological pressure on the workmen, to accept the terms and conditions of the
management or ready to bear the consequences of the closure of the unit.
2. The strike involves an organized and united withdrawal of the supply of labour, whereas,
Lock-Out involves withholding the demand of labour.
3. The strike is a tool in the hands of workers to bend the employer in their favour. As
against, Lock-Out is the tool in the hands of management to restrict the militant spirit of
the workers.
4. Lock-Out is a tactic used in bargaining, which aims at compelling the workers to agree
and accept the terms and conditions related to the employment, imposed by the
management. On the other hand, the strike is a union power tactics as it is called upon and
supported by the labour or employee union.
5. The main objective of the strike is to seek redressal of the grievance, promote and protect
their rights and interest and also attain fulfilment of their demands, related to
employment. In contrast, Lock-Out aims at gaining an advantage by inflicting proprietary
rights over the workers.
 6. The strike is resorted to by the workers to initiate or resist change in their working
conditions. Conversely, Lock-Out is resorted to by the management to force employees to
return to work.

Causes of Strike:

 Wages, Allowance and Bonus

 Layoff and Retrenchment
 Indiscipline and Violence
 Charter of Demands
 Non-implementation of Agreements and Awards

Causes of Lock-out:

 Response to strikes initiated by workers.

 Unrest, disputes and clashes between workers and managers
 External environmental factors like unstable government or changes in government rules.
 Continuous financial losses
 Fraudulent or illegal activities undertaken in a company.

Conclusion:

Basically, strikes and lock-outs are just methods resorted to by the workers and employers with
an aim of settling their disputes, when they fail to settle them via peaceful negotiation. Lock-Out
is not usually adopted by the management, rather it is usually announced when the workforce
continues their strike, so as to prevent direct conflict between them.
Q2. What is collective bargaining? What are its advantages and disadvantages?

A Introduction:

The term collective bargaining refers to the process of negotiation that takes place between
workers or labourers and their employers on the terms of their contracts. In most instances, the
labourers are represented by a trade or labour union. This is usually done in order to achieve
certain demands and rights of the labourers, namely those pertaining to working hours, salaries,
working conditions, etc. This form of industrial dispute resolution has been revolutionary for
labour relations in the Indian industries, both private and public. This is because conflicts in the
area of commerce and business are inevitable and it is not practical to resolve all such disputes
through courts. Hence, collective bargaining has become a suitable alternative to adjudicate
industrial disputes.

What is collective bargaining?

According to Article 2 of the Collective Bargaining Convention, 1981 (No. 154) of the
International Labour Organisation “collective bargaining extends to all negotiations which take
place between an employer, a group of employers or one or more employers’ organizations, on
the one hand, and one or more workers’ organisations, on the other, for

a) determining working conditions and terms of employment; and/or

b) regulating relations between employers and workers; and/or
c) regulating relations between employers or their organisations and workers or
workers’ organisations”.

Aims of collective bargaining:

The following are the aims and objectives of collective bargaining:

a) Upholding industrial democracy

b) Ensuring equality and justice for socially and economically backwards groups

c) Protecting the working class from exploitation

 d) Meeting the legitimate expectations of labourers regarding the work they have
undertaken

Advantages of Collective Bargaining:

The following are the Advantages of Collective Bargaining:

a) Being a part of a group helps employees to voice their demands and negotiate better with
their employers. It is harder for employers to dismiss the demands of a unified large
group of employees or a trade union in comparison with individual employees.

b) t helps to improve the workplace conditions for employees.

c) It makes the rights and obligations of both employers and employees clear.

Disadvantages of Collective Bargaining:

The following are the disadvantages of Collective Bargaining:

a) It is a long complicated process as the union of employees and the employers go back and
forth while negotiating. It is time-consuming and requires both parties to take time off of
their work.

b) Another issue that stands as a hindrance to the effectiveness of this process is the
presence of multiple trade unions in India. Sometimes the interunion rivalry gets in the
way of negotiating for better working conditions.

c) Most trade unions are also backed by or associated with a political party. Oftentimes, it is
the decision of the party that influences the trade union’s demands.

d) There is no way to determine which union represents the employees.

Conclusion:

To conclude, collective bargaining agreement is an essential step arrived at by the employer and
the employees involved in the process of collective bargaining. This is the first resort that
employers and unions go to for resolving disputes. It is formed as a result of a successful
negotiation of voluntary nature. This helps in resolving disputes without the help of the courts or
tribunals and makes the task of negotiating with employers simpler and more efficient.
Q3. Discuss the powers and functions of various authorities under Industrial Disputes Act,
1947

A Introduction:

The Industrial disputes Act 1947, was enacted in the post-independence era with a view to
regulate the relationships of the employer and employee and to maintain peace and
harmonious relations between the two. Earlier the growth was very slow but in recent years
it has taken grown due to growing cases in the supreme court. The growth of the country in
the sense of economic development is dependant upon the industries and the industries could
only run smoothly when there is a harmonious relationship between the two pillars.

Objectives of the Industrial Disputes Act 1947:

The Industrial dispute act of 1947 was enacted with the following objectives:-

d) To promote industrial peace

e) To do economic justice to the workmen

The objective according to the preamble of the Industrial disputes act 1947 are:

a) To make provisions for the investigation and settlement of industrial disputes.

b) The objective of all the labor legislation is to ensure fair wages and to prevent
industrial disputes.

Scope and Extent of the Industrial Dispute Act:

The Industrial disputes act of 1947 extends to the whole of India. it came into enforcement on
1st April 1947.

Principal objects as stated by the supreme court in the case of Workmen of Dimakuchi Tea
Estate vs Management of Dimakuchi Tea Estate AIR 1958 SC
1) the act aims to promote the measures which are helpful in securing good and amity relations
between the employer and the employee.
2) An investigation and settlement of disputes between an employer and the employee, employer
and workmen, workmen and workmen and giving them the right of representation in the trade
unions.
3) the legislation also tries to do away with illegal strikes and lockouts.
4) it also helps to provide the relief to the workmen in the matter of lay off, retrenchment,
closure of undertaking, etc.
5) it helps to do Collective Bargaining.
The Industrial disputes act is social legislation which tries to maintain a balance between the
interest of the important pillars of the industrial establishment.

Court of Inquiry: section 6 of the act further talks about the constitution of the court of inquiry
in order to conduct an inquiry upon the matter in dispute. The court of inquiry to be run by the
independent person or persons as the appropriate government thinks fit. where the court consists
of two or more persons then any one of them shall be appointed to be chairman.

Labour Court: section 7 of the act talks about the constitution of the labor court by the
appropriate government. it can create one or more labor court as it thinks fit for the adjudication
of industrial dispute as specified under schedule II. it consists of one person to be appointed by
the appropriate government. the qualifications of the presiding officer of the court shall be as
follows:-
a) if he is or has been a judge of the high court
b) he has for a period of not less than 3 years being a district judge or an additional district judge
c) has held judicial office for not less than 7 years
d) he has been the presiding officer of a Labor Court constituted under any Provincial Act or
State Act for not less than five years.
e) he is or has been a Deputy Chief Labor Commissioner (Central) or Joint Commissioner of the
State Labor Department, having a degree in law and at least seven years' experience in the labor
department including three years of experience as Conciliation Officer.
f) he is an officer of Indian Legal Service in Grade I with years' experience in the grade.

Tribunal: section 7A deals with the provision of constitution of the one or more tribunal for the
adjudication of dispute relating to the aspects as mentioned in schedule second or third. tribunal
to consist of one person who shall be appointed by appropriate government.
The qualifications of the presiding officer of the tribunal are as follows:-
a) he is, or has been, a Judge of a High Court;
b) he has, for a period of not less than three years, been a District Judge or an Additional District
Judge;
c) he is or has been a Deputy Chief Labor Commissioner (Central) or Joint Commissioner of the
State Labor Department,, having a degree in law and at least seven years' experience in the labor
department including three years of experience as Conciliation Officer:
d) he is an officer of Indian Legal Service in Grade III with three years' experience in the grade.
the appropriate government to appoint two persons as assessors to advise the tribunal.

National Tribunal: section 7B deals with the national tribunal which is appointed by the central
government and constitute one or more national tribunal for the adjudication of industrial
disputes which in the opinion of the central government involves questions of national
importance or are of such a nature that industrial establishments situated in more than one state
are likely to be interested in or affected by such disputes. the national tribunal shall be consisted
of one person only to be appointed by the central government. in order to be appointed as the
presiding officer of a national tribunal he should be or has been a judge of a high court. the
central government can also appoint two persons as assessors to advise the national tribunal in
the proceeding before it.

Disqualifications for appointment of the presiding officer of labor court, tribunal and national
tribunal: section 9 c of the act talks about the provision relating to the disqualification of the
presiding officer which states that if the person is not an independent person or if he has attained
the age of 65 years then he cannot be appointed as the presiding officer of the labour court or
tribunal or national tribunal by the central government.

Conclusion:

Thus, this was the Industrial Disputes Act which was passed by the government of India in
1947. This Act ensures peace and harmony among all the industrial establishments, and if any
conflict arises, the provisions in the Industrial Disputes Act helps in solving the issue in a
systematic manner in which all the parties are satisfied and every decision made is fair and just.

Item Text
Defination of Workmen under Industrial Dispute act,1947
objectives of Industrial dispute act laid down under Workmen of Dimakuchi tea estate v/s
Management of Dimakuchi tea estate?

Brief on case sunderambal v/s state of goa

Compensation of Lay off
Advantages of collective bargaining?
Define retrenchement ?
Duties of Industrial court under MRTU AND PULP ACT
Penalty for illegal strike and lock outs
Describe the condition for the
payment of compensation under Workmen's Compensation Act,1923

Write any 3 model standing order ?