Model Question IRLL-01

TULSIRAMJI GAIKWAD-PATIL College of Engineering and Technology
Wardha Road, Nagpur - 441108

Accredited withNAACA+Grade
Approved by AICTE, New Delhi, Govt. of Maharashtra
(An Autonomous Institution Affiliated to RTM Nagpur University, Nagpur)
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Model Answer Set-01
MBA (Semester-II)
End Semester Examination
Course Name: Industrial Relations And Labor Legislations
Subject Code: MMB2404
Instructions to Candidates:
1. All questions carry marks as indicated.
2. All the sub- questions (a, b, c, d, and e) ofQue.1 in Section A are compulsory.
3. Solve any two sub-questions in Que. 2 to Que.6 in Section B.
4. Assume suitable data wherever necessary.
5. Use of non-programmable calculator is permitted.
Section A
Que. 1. (a) Define Industrial Relations 2M (CO1)
Answer :
Industrial relations refer to the complex and dynamic relationship
between employers, employees, and the government in the context of
the workplace. It encompasses the study and management of various
interactions, negotiations, and conflicts that arise between these
stakeholders within the industrial or organizational setting.
Industrial relations involve the examination of labor laws, employment

contracts, collective bargaining agreements, and the overall framework
that governs the employment relationship. It addresses a wide range of
issues, including wages, working conditions, job security, employee
benefits, workplace health and safety, employee rights and
responsibilities, and dispute resolution mechanisms.
The field of industrial relations seeks to establish a balanced and

productive relationship between employers and employees, focusing on
ensuring fair and equitable treatment, promoting effective
communication, and resolving conflicts in a manner that benefits both
parties. It also explores the broader social and economic implications
of labor relations, such as the impact of industrial disputes on
productivity, economic growth, and social stability.
Industrial relations involve various factors, such as trade unions,

employer associations, human resource managers, labor economists,
and government agencies responsible for labor regulation and
enforcement. These actors play a crucial role in shaping and
influencing labor policies, employment practices, and the overall
dynamics of the workplace.
Course Coordinator: Page 1 of 32
Industrial relations encompass the study, management, and regulation
of the employment relationship, aiming to create an environment that
fosters cooperation, fairness, and productivity while recognizing the
interests and rights of both employers and employees.
(b) Define Industrial Conflict 2M (CO2)
Answer :
Industrial conflict refers to the disputes and disagreements that arise
between employers and employees within the context of industrial
relations. It encompasses a wide range of conflicts and tensions that
can occur in the workplace, particularly in industries where organized
labor plays a significant role. Industrial conflict typically arises from
issues related to wages, working conditions, employment terms,
benefits, job security, and the overall relationship between management
and labor.
The term "industrial conflict" is often used to describe various forms of

disagreement and confrontation, including strikes, lockouts, protests,
demonstrations, slowdowns, work-to-rule actions, and other forms of
collective action taken by workers to express their grievances or pursue
their interests. These actions may be organized by labor unions or other
employee associations, with the aim of pressuring employers to address
their concerns and negotiate better terms and conditions of
employment.
Industrial conflict can have a significant impact on the productivity,

stability, and functioning of industries and can disrupt the normal
operations of businesses. It is often seen as a manifestation of the
inherent power imbalance between employers and employees, as well
as the differing interests and objectives of the two parties. Resolving
industrial conflict typically involves negotiation, collective bargaining,
mediation, or arbitration, with the goal of reaching mutually acceptable
solutions that address the concerns of both employers and employees.
(c) Define Collective Bargaining 2M (CO3)
Answer :
Collective bargaining refers to the process of negotiation and dialogue
between employers (or their representatives) and employees (usually
represented by labor unions or employee associations) to determine and
establish the terms and conditions of employment. It is a fundamental
aspect of industrial relations and serves as a mechanism for resolving
differences, setting employment standards, and reaching agreements
that govern the employment relationship.
During collective bargaining, both parties engage in discussions and

negotiations with the aim of reaching a mutually satisfactory
agreement. The negotiations typically revolve around various
employment-related issues, including wages, working hours, benefits,
job security, working conditions, promotion criteria, grievance
procedures, and other matters that directly affect the interests and well-
being of employees.

Collective bargaining involves a series of steps, which may include:
Preparing: Both the employer and the employee representatives prepare

their proposals and gather relevant data, research, and information to
support their positions.
Negotiating: The parties engage in discussions, exchange proposals,

and present their arguments and counterarguments. They may utilize
various strategies, such as making concessions, seeking compromises,
or advocating for specific demands.
Reaching an agreement: Through the negotiation process, the parties

aim to reach a consensus on the terms and conditions of employment.
This agreement may be formalized in a collective bargaining
agreement (CBA) or collective agreement, which is a legally binding
contract that outlines the rights, obligations, and terms agreed upon by
both parties.
Implementing and enforcing the agreement: Once an agreement is

reached, it is implemented in the workplace. Both the employer and
employees are expected to abide by the terms outlined in the collective
bargaining agreement. Disputes or grievances arising from the
agreement may be resolved through established dispute resolution
mechanisms, such as grievance procedures or arbitration.
Collective bargaining provides a platform for employees to have a

collective voice in negotiating with employers, enabling them to secure
favorable working conditions, fair compensation, and improved
workplace rights. It also serves as a means to promote labor-
management cooperation, enhance workplace stability, and address
issues of inequality and worker representation.
(d) Define Bonus 2M (CO4)
Answer :
A bonus is an additional payment or reward given to an individual or
group of individuals, typically in addition to their regular salary or
wages. It is a form of financial incentive or recognition provided by an
employer to employees for various reasons, such as exceptional
performance, meeting specific targets or goals, or as a share of
company profits.
Bonuses can take different forms, including cash bonuses,

performance-based bonuses, signing bonuses, profit-sharing bonuses,
and holiday bonuses. The purpose of a bonus is to motivate and reward
employees for their efforts, encourage high performance, and promote
employee satisfaction and retention.
Cash bonuses are typically monetary rewards given to employees based

on predetermined criteria or performance evaluations. These can be
one-time payments or recurring bonuses, such as annual or quarterly
bonuses. Performance-based bonuses are often tied to individual or
team performance metrics, such as sales targets, project completion, or
customer satisfaction.
Signing bonuses are sometimes offered to new employees as an
incentive to join a company. These are usually one-time payments
given upon acceptance of a job offer or the completion of a
probationary period. Profit-sharing bonuses are based on a company's
profits, and employees receive a share of those profits as a bonus.
Holiday bonuses are often given to employees during festive seasons,

as a gesture of goodwill or appreciation. These bonuses may be fixed
amounts or a percentage of an employee's salary.
(e) Explain Compensation 2M (CO5)
Answer :
Compensation refers to the total package of financial and non-financial
benefits that employees receive from their employers in exchange for
their work and services. It is the remuneration provided to employees
for their time, effort, skills, and contributions to the organization.
Compensation serves as a means to attract, motivate, and retain
talented individuals within the workforce.
Components of compensation can vary depending on factors such as

industry, job level, and organizational practices, but typically include
the following elements:
Base Salary/Wages: This is the fixed monetary amount paid to

employees in exchange for their regular work hours and is usually
determined by factors such as job responsibilities, skills, qualifications,
and market rates.
Variable Pay/Incentives: In addition to the base salary, employees

may be eligible for variable pay or incentives based on their individual
or team performance. This can include bonuses, commissions, profit-
sharing, or performance-based pay programs.
Benefits: Benefits encompass non-monetary forms of compensation

provided to employees. These may include health insurance, retirement
plans (e.g., pensions or 401(k)), life insurance, disability coverage, paid
time off (e.g., vacation, sick leave), parental leave, and other employee
assistance programs.
Recognition and Rewards: Organizations may provide recognition

programs or rewards to acknowledge and appreciate employee
contributions. These can range from employee of the month awards to
performance-based recognition initiatives.
Section B
Que. 2. (a) Discuss the functions of Trade Unions. 5M (CO1)
Answer :
Trade unions serve various functions to protect the interests and rights
of workers. Here are some of the key functions of trade unions:
Collective Bargaining: One of the primary functions of trade unions is

to negotiate with employers on behalf of their members. They engage in
collective bargaining to secure better working conditions, wages,
benefits, and other terms of employment. By uniting workers, trade
unions can exert greater influence and bargaining power during these
negotiations.
Representation and Advocacy: Trade unions represent their members'

interests and act as their voice in the workplace. They advocate for
workers' rights, fair treatment, and safe working conditions. Trade
unions often play a crucial role in lobbying for labor-related legislation,
policies, and regulations to protect workers' rights and advance their
interests.
Grievance Handling: Trade unions assist their members in addressing

workplace grievances and conflicts. They provide guidance, support,
and legal advice to employees who face issues such as unfair treatment,
discrimination, harassment, or disputes with management. Trade unions
may represent members in disciplinary hearings or provide mediation
services to resolve conflicts.
Worker Protection and Safety: Ensuring the health, safety, and well-
being of workers is another key function of trade unions. They advocate
for and monitor compliance with occupational health and safety
regulations, promoting safe working conditions and preventing
accidents or hazards. Trade unions also work to secure compensation
and benefits for workers injured on the job.
Skill Development and Training: Many trade unions invest in skill

development programs and training opportunities for their members.
They strive to enhance workers' abilities, knowledge, and employability
through vocational training, apprenticeships, and continuing education.
By improving members' skills, trade unions contribute to their
professional growth and help them navigate changes in the job market.
Social and Economic Justice: Trade unions often take up broader

social and economic issues that affect workers and society as a whole.
They may campaign for fair wages, job security, income equality, and
improved social welfare policies. Trade unions may also participate in
community initiatives, engage in charitable activities, or support causes
aligned with workers' interests.
Political Engagement: Trade unions engage in political activities to

influence labor laws, regulations, and public policies. They may endorse
or support candidates who champion workers' rights and lobby for
favorable legislation. By participating in political processes, trade
unions strive to create an enabling environment for workers and
promote social justice.
(b) Explain the factors influencing Industrial Relations 5M (CO1)
Answer :
Several factors influence industrial relations, shaping the dynamics and
interactions between employers, employees, and labor unions. These
factors can vary across different industries, countries, and organizational
contexts. Here are some key factors that commonly influence industrial
relations:
Economic Conditions: Economic factors, such as overall economic

growth, inflation rates, unemployment levels, and industry-specific
trends, can significantly impact industrial relations. During periods of
economic prosperity, employers may be more inclined to provide
favorable terms and conditions to retain skilled employees. Conversely,
economic downturns or recessions can lead to cost-cutting measures,
job insecurity, and potential conflicts between employers and
employees.
Labor Laws and Regulations: The legal framework governing labor

relations and employment practices greatly influences industrial
relations. Employment laws and regulations related to collective
bargaining, minimum wages, working hours, health and safety, anti-
discrimination, and termination procedures shape the rights and
obligations of both employers and employees. The presence and
enforcement of labor laws can impact the balance of power between
labor and management.
Labor Unions and Employee Associations: The presence and

influence of labor unions and employee associations play a significant
role in industrial relations. These organizations represent the collective
interests of employees and engage in collective bargaining on their
behalf. The strength, membership, and bargaining power of unions can
influence the outcomes of negotiations, the level of workplace
democracy, and the overall employment conditions.
Technological Advancements: Technological advancements and

automation can have a profound impact on industrial relations. While
technology can improve efficiency and productivity, it may also lead to
job displacement, skill requirements, and changes in work processes.
The introduction of new technologies may require negotiations and
adjustments in employment terms, training programs, and job security
provisions.
Globalization and Trade: Globalization has transformed the nature of

industrial relations by expanding trade, foreign investment, and cross-
border operations. International trade agreements, outsourcing practices,
and the mobility of capital and labor have implications for employment
conditions, job security, and the ability of unions to represent workers'
interests. Organizations operating in a global context may face
challenges related to different labor standards, cultural norms, and
regulatory frameworks.
Social and Cultural Factors: Social and cultural factors influence

industrial relations by shaping societal norms, values, and expectations
regarding work, fairness, and labor practices. Factors such as
demographic changes, gender equality, diversity and inclusion, social
attitudes towards unions, and the perception of work-life balance can
impact the relationships and power dynamics between employers and
employees.
Management Practices: The strategies and approaches adopted by
employers and management in dealing with their workforce greatly
impact industrial relations. The level of employee involvement,
communication channels, leadership styles, and the implementation of
fair and transparent HR policies can contribute to positive employee-
employer relationships or foster conflict and dissatisfaction.
It is important to note that these factors interact with each other and
create a complex environment in which industrial relations operate.
Effective management of these factors requires open communication,
mutual respect, and proactive efforts from both employers and
employees to maintain harmonious and productive workplace relations.
(c) What is a Trade Union? Discuss the various problems of Trade 5M (CO1)
Unions.
Answer :
A trade union, also known as a labor union, is an organization formed
by workers in various industries or occupations to protect and promote
their collective interests and rights. The primary objective of trade
unions is to negotiate with employers on behalf of their members to
secure better wages, working conditions, and benefits.
While trade unions play a crucial role in safeguarding the rights and
welfare of workers, they can also face several problems and challenges.
Here are some of the common issues associated with trade unions:
Membership Decline: One significant challenge faced by trade unions

is a decline in membership. Factors such as changing economic
conditions, the rise of the gig economy, and the shift towards more
flexible work arrangements have led to a decrease in union membership.
This decline in numbers can weaken the bargaining power and influence
of trade unions.
Resistance from Employers: Employers often view trade unions as a

potential threat to their business interests. They may resist unionization
efforts and engage in anti-union practices, such as discouraging
employees from joining unions, engaging in union-busting activities, or
refusing to negotiate collective bargaining agreements. This adversarial
relationship between unions and employers can create obstacles for
trade unions to effectively represent their members.
Legal and Regulatory Challenges: Trade unions must comply with

various legal and regulatory frameworks, which can pose challenges.
Laws governing union activities, collective bargaining, strikes, and
picketing vary across countries, and unions must navigate these legal
complexities. Additionally, changes in labor laws or court rulings can
impact the bargaining power and rights of trade unions, making it
necessary for them to adapt and respond to new legal developments.
Internal Divisions and Conflicts: Like any organization, trade unions

may experience internal divisions, conflicts, and power struggles.
Differences in ideology, leadership styles, or competing interests among
union members can lead to factionalism and hinder the union's ability to
present a unified front. Internal conflicts can weaken the union's
position during negotiations and undermine its effectiveness.
Globalization and Outsourcing: The increasing globalization of

industries has posed challenges for trade unions. As companies
outsource or relocate their operations to countries with lower labor
costs, unions often find it difficult to organize and represent workers
effectively across borders. The fragmented nature of global supply
chains and the lack of international labor standards can make it
challenging for unions to protect workers' rights in globalized industries.
Technological Advancements: Technological advancements and

automation have transformed the nature of work in many industries.
While technology can improve productivity, it can also lead to job
losses and changes in work arrangements. Trade unions must adapt to
these technological shifts and ensure that workers' rights are protected in
the face of automation and digitalization.
Perception and Public Support: Public perception and support for trade
unions can vary. Some individuals may view unions as disruptive or
self-serving, while others recognize their role in safeguarding workers'
rights. Maintaining public support and effectively communicating the
importance of trade unions can be a challenge, especially in an era of
diverse media sources and competing narratives.
It is important that these challenges are not universal and can vary based
on factors such as the country, industry, and specific circumstances.
Despite these challenges, trade unions continue to be significant actors
in advocating for workers' rights and promoting social and economic
justice.
Que. 3. (a) Explain dispute? Explain the reasons that cause Industrial 5M (CO2)
Disputes.
Answer :
A dispute refers to a disagreement or conflict that arises between two or
more parties, often characterized by opposing interests, viewpoints, or
claims. Industrial disputes specifically pertain to conflicts or
disagreements that occur within the context of the workplace or between
employers and employees. These disputes may involve issues such as
wages, working conditions, employment terms, or any other matter
related to the employment relationship.
There are several reasons that can lead to industrial disputes, including:
Wages and Benefits: One of the primary causes of industrial disputes is

disagreements over wages and benefits. Employees may demand higher
wages, improved benefits, or better compensation packages, while
employers may be unwilling or unable to meet these demands due to
financial constraints or differing priorities.
Working Conditions: Disputes can also arise from concerns over

working conditions, such as safety standards, working hours, workload,
or the provision of necessary facilities. Employees may feel that their
working conditions are inadequate or unsafe, leading to conflicts with
employers who may prioritize productivity or cost-cutting measures.
Job Security: In times of economic uncertainty or organizational

restructuring, disputes can arise due to concerns over job security.
Employees may fear layoffs, downsizing, or changes in employment
terms, while employers may need to make difficult decisions to ensure
the viability and competitiveness of their businesses.
Unionization and Collective Bargaining: Industrial disputes are often

associated with the formation of labor unions and the negotiation of
collective bargaining agreements. Disagreements may occur between
labor unions and management regarding the terms and conditions of
employment, representation rights, or the interpretation and
implementation of existing agreements.
Unfair Treatment and Discrimination: Allegations of unfair

treatment, discrimination, or harassment can trigger industrial disputes.
Employees who feel they have been subjected to unjust practices based
on factors such as gender, race, age, or disability may resort to
collective action to address these grievances.
Change Management: Introduction of new policies, technologies, or

organizational changes can also lead to industrial disputes. Employees
may resist change if they perceive it as negatively impacting their job
security, working conditions, or overall well-being. Employers, on the
other hand, may face challenges in effectively implementing changes or
addressing employee concerns.
Miscommunication and Lack of Trust: Industrial disputes can arise

from miscommunication or a breakdown in trust between employers and
employees. Inadequate communication channels, lack of transparency,
or failure to address grievances promptly can contribute to
misunderstandings, erode trust, and escalate conflicts.
It is worth noting that industrial disputes can vary significantly in

nature, scope, and severity. Resolving these disputes often requires
negotiation, mediation, or, in some cases, legal intervention to find
mutually acceptable solutions and maintain harmonious industrial
relations.
(b) Explain the types of disputes. 5M (CO2)
Answer :
There are various types of disputes that can arise in different contexts.
Here are some common types of disputes:
Legal Disputes: Legal disputes involve conflicts that arise within the
legal system, typically between two or more parties seeking a resolution
through the courts. These disputes can cover a wide range of areas,
including contract disputes, property disputes, intellectual property
disputes, personal injury claims, family law matters, and more.

Civil Disputes: Civil disputes generally refer to conflicts between
individuals or entities that do not involve criminal offenses. These
disputes may relate to contractual disagreements, property rights, tort
claims (such as negligence or defamation), landlord-tenant disputes, or
disputes over personal rights. The resolution of civil disputes often
occurs through negotiation, mediation, or court proceedings.
Commercial Disputes: Commercial disputes involve conflicts that arise

in the context of business transactions or commercial relationships.
These disputes can encompass contractual breaches, partnership or
shareholder disputes, disagreements over business assets or intellectual
property, non-payment or non-performance issues, competition disputes,
or breach of confidentiality agreements. Commercial disputes are often
resolved through negotiation, arbitration, or litigation.
Employment Disputes: Employment disputes occur between employers

and employees or among employees themselves. These disputes may
involve issues such as unfair dismissal, discrimination, harassment,
wage and hour violations, breach of employment contracts, disputes
over workplace policies, or disagreements related to union activities.
Resolving employment disputes can involve internal grievance
procedures, mediation, or legal action.
Consumer Disputes: Consumer disputes arise when there is a

disagreement or conflict between consumers and businesses regarding
the purchase of goods or services. These disputes can include issues
such as faulty products, misleading advertising, contractual breaches,
overcharging, unsatisfactory services, or violations of consumer rights.
Consumer disputes are often resolved through negotiation, mediation, or
filing complaints with consumer protection agencies.
International Disputes: International disputes occur between countries or

international entities and can encompass a wide range of issues, such as
territorial disputes, trade disputes, diplomatic conflicts, human rights
violations, or disputes related to international agreements or treaties.
These disputes may be resolved through diplomatic negotiations,
international arbitration, or litigation before international courts.
Family Disputes: Family disputes involve conflicts within familial
relationships, such as divorce or separation disputes, child custody and
visitation disagreements, property division, alimony or child support
disputes, or disputes over inheritance or wills. Resolving family disputes
often involves mediation, collaborative law, or court proceedings in
family courts..
(c) Explain the types of Strikes. 5M (CO2)
Answer :
Strikes typically refer to organized actions taken by groups of workers
to protest or bargain for better working conditions, higher wages, or
other labor-related demands. There are several types of strikes that can
be classified based on their nature, purpose, or tactics used. Here are
some common types of strikes:
Economic Strikes: This is the most common type of strike where

workers stop working to put pressure on employers to meet their
economic demands, such as higher wages, better benefits, or improved
working conditions. The purpose is to disrupt production and financial
operations to gain leverage in negotiations.
General Strikes: In a general strike, workers from various industries

and sectors come together to protest against broader socio-political
issues beyond their immediate workplace concerns. It involves workers
across different sectors simultaneously ceasing work, aiming to
demonstrate the collective power of the working class and bring
attention to systemic issues.
Sympathy Strikes: Sympathy strikes occur when workers in one

industry or company go on strike in support of another group of workers
who are already engaged in a strike. The goal is to show solidarity and
exert additional pressure on the employer by causing disruptions across
multiple sectors.
Wildcat Strikes: Wildcat strikes are unauthorized work stoppages that

occur without the approval or involvement of the union leadership. They
are typically spontaneous actions by a group of workers in response to
immediate grievances or issues. Wildcat strikes can be challenging to
manage since they bypass established negotiation processes.
Slowdown Strikes: In a slowdown strike, workers deliberately reduce

their productivity or work pace as a form of protest. Rather than
completely stopping work, they aim to disrupt production or operations
by working at a slower pace, which can lead to backlogs, delays, and
increased costs for the employer.
Sit-Down Strikes: Sit-down strikes involve workers occupying their

workplace, refusing to leave or continue working until their demands
are met. Workers physically occupy the premises, often barricading
themselves inside, which can disrupt operations and force negotiations.
Political Strikes: Political strikes are aimed at influencing or opposing

specific government policies or decisions. They are often organized by
labor unions or activist groups to voice their concerns about legislation,
social issues, or political decisions affecting workers' rights and welfare.
Hunger Strikes: While not directly related to work, hunger strikes are a
form of protest where individuals, including workers, voluntarily refuse
to eat to draw attention to a cause or demand action. This type of strike
can be used in labor disputes to exert pressure on employers or the
government.
Que. 4. (a) List out and explain the objectives of Workers’ Participation in 5M (CO3)
Management.
Answer :
Workers' participation in management refers to the involvement of
employees in decision-making processes, policies, and practices within
an organization. The objectives of workers' participation in management
can vary depending on the context and specific goals of the
organization, but some common objectives include:
Improved Employee Morale and Motivation: By allowing workers to

participate in decision-making, it enhances their sense of ownership and
commitment to the organization. Employees feel valued and recognized,
which boosts their morale and motivation levels. Their active
involvement in shaping decisions that affect their work contributes to a
positive work environment.
Enhanced Productivity and Quality: Workers' participation can lead

to increased productivity and improved quality of products or services.
When employees are involved in decision-making, they have a better
understanding of the processes and challenges involved in their work.
Their input and suggestions can contribute to more efficient workflows,
innovative ideas, and better problem-solving, ultimately leading to
higher productivity and improved quality outcomes.
Better Utilization of Human Resources: Workers possess valuable

knowledge, skills, and expertise acquired through their work experience.
Involving them in decision-making allows organizations to tap into this
valuable resource. By utilizing the insights and ideas of employees,
organizations can make more informed decisions and allocate resources
effectively, thereby optimizing the utilization of human resources.
Conflict Resolution and Improved Industrial Relations: Workers'

participation can help in resolving conflicts and improving industrial
relations within an organization. When employees have a say in
decisions that affect them, it reduces feelings of alienation and promotes
a sense of trust and cooperation between workers and management.
Open dialogue and collaboration create a platform for addressing
concerns, finding mutually beneficial solutions, and building
harmonious relationships.
Effective Communication and Information Sharing: Involving

workers in decision-making facilitates better communication and
information sharing within the organization. Employees gain access to
relevant information about organizational goals, strategies, and
performance, which enables them to align their efforts and make more
informed decisions. Similarly, their input and feedback contribute to
effective two-way communication channels, promoting transparency
and trust.
Skill Development and Empowerment: Workers' participation in

management can lead to skill development and empowerment among
employees. Engaging in decision-making processes exposes workers to
new challenges and decision-making techniques, enhancing their skills
and competencies. Empowering employees by involving them in
important decisions fosters a sense of responsibility and self-confidence.
Social and Economic Justice: Workers' participation in management

aligns with the principles of social and economic justice. It recognizes
the rights of workers to have a say in decisions that affect their lives and
work. By involving workers in decision-making, organizations
demonstrate a commitment to fairness, equity, and democratic
principles, ensuring that the interests of all stakeholders are taken into
account.
Worker’s participation in management aims to create a more inclusive,
participatory, and democratic work environment. It recognizes the value
and importance of the contributions made by workers and seeks to
harness their potential for the benefit of both the employees and the
organization as a whole.
(b) Explain the various forms of Collective Bargaining 5M (CO3)
Answer:
Collective bargaining is a process by which employers and labor unions
negotiate terms and conditions of employment on behalf of the workers
they represent. It is a key mechanism for resolving labor disputes and
establishing agreements that govern wages, benefits, working hours, and
other aspects of the employment relationship. Here are the various
forms of collective bargaining:
Enterprise/Company-Level Bargaining: This form of collective

bargaining occurs at the level of individual companies or enterprises.
The negotiations take place between the representatives of the
company's management and the labor union representing the employees.
The agreements reached are specific to that particular company and its
workforce.
Industry-Level Bargaining: Industry-level bargaining involves

negotiations between labor unions and employer associations or groups
representing multiple companies within a specific industry or sector.
The aim is to establish common standards and agreements that apply to
all companies and workers within that industry. These agreements can
include industry-wide wage scales, benefits, and working conditions.
Multi-Employer Bargaining: In multi-employer bargaining, workers

from different companies or employers within a particular geographic
area or industry negotiate collectively with a single labor union or a
coalition of unions. The purpose is to establish uniform standards and
agreements that apply to all participating employers and their
employees.
Centralized Bargaining: Centralized bargaining refers to negotiations

that take place between labor unions and employer associations or
federations at a national or regional level. The agreements reached in
centralized bargaining can have a broader impact as they cover multiple
industries or sectors, and the terms can set standards for wages, benefits,
and working conditions across a larger scope.
Decentralized Bargaining: In contrast to centralized bargaining,

decentralized bargaining involves negotiations that occur at a more
localized or individualized level, such as specific regions, cities, or even
individual companies. The agreements reached in decentralized
bargaining are more tailored to the specific circumstances of the parties
involved.
Social Dialogue Bargaining: Social dialogue bargaining extends
beyond the scope of traditional labor unions and employers'
associations. It involves negotiations between various stakeholders,
including government representatives, employers, trade unions, and
sometimes other social partners, to address broader socio-economic
issues and policy matters that impact the workforce. The focus is on
fostering collaboration and reaching consensus on labor-related policies,
reforms, and social issues.
It's worth noting that the specific forms and processes of collective
bargaining can vary across countries and labor relations systems. The
legal framework, industry practices, and power dynamics between labor
and management all play a role in shaping the nature and scope of
collective bargaining in a particular context.
(c) Explain the functions of Collective Bargaining. 5M (CO3)
Answer :
Collective bargaining is a process in which representatives of workers
(usually trade unions) and employers negotiate and determine the terms
and conditions of employment through a mutual agreement. The main
functions of collective bargaining are as follows:
Negotiating Wages and Benefits: One of the primary functions of

collective bargaining is to negotiate wages, salaries, and benefits for
workers. The bargaining process involves discussions, proposals, and
counterproposals between labor unions and management to arrive at a
fair and mutually acceptable compensation package. This function
ensures that workers receive remuneration that reflects their skills,
experience, and contribution to the organization.
Establishing Working Conditions: Collective bargaining addresses

various aspects of working conditions, such as working hours, rest
breaks, leave policies, health and safety standards, and other provisions
that affect the well-being and quality of work life for employees.
Through negotiation, both parties strive to establish favorable and fair
working conditions that meet the needs of workers while considering
the operational requirements of the organization.
Resolving Grievances and Disputes: Collective bargaining provides a

mechanism for addressing grievances and resolving disputes between
workers and management. The negotiated agreement often includes
procedures for handling complaints, disciplinary actions, and conflict
resolution. By establishing fair and transparent processes, collective
bargaining helps maintain a harmonious and productive work
environment while ensuring that workers' concerns are addressed.
Regulating Employment Practices: Collective bargaining agreements

may include provisions related to employment practices, such as hiring
procedures, promotions, transfers, and layoffs. These provisions aim to
ensure fairness and non-discrimination in employment decisions and
promote opportunities for career growth and advancement within the
organization. By regulating employment practices, collective bargaining
helps create a level playing field for workers and encourages equal
opportunities.
Addressing Training and Skill Development: The collective

bargaining process can incorporate provisions for training programs,
skill development initiatives, and career advancement opportunities.
Such provisions acknowledge the importance of continuous learning
and development for workers and help in building a skilled and
adaptable workforce. By addressing training needs, collective
bargaining contributes to the growth and competitiveness of the
organization while enhancing the employability of workers.
Promoting Job Security: Job security is a significant concern for

workers, and collective bargaining can help address this issue.
Bargaining agreements may include provisions that protect workers
from arbitrary dismissals, layoffs, or outsourcing. By negotiating job
security measures, such as seniority rights, notice periods, and
severance packages, collective bargaining provides workers with a sense
of stability and protection against unwarranted job loss.
Implementing Workplace Policies: Collective bargaining agreements

can include provisions related to workplace policies, such as anti-
discrimination policies, harassment prevention measures, and diversity
initiatives. By incorporating these policies into the bargaining
agreement, both workers and management commit to creating a
respectful and inclusive work environment that values diversity and
promotes equal opportunities for all.
Collective bargaining is an essential process that enables workers to

have a voice in shaping their working conditions, wages, and benefits.
By facilitating negotiations and agreements between labor unions and
employers, it helps establish a balance of power, promotes social
dialogue, and ensures the rights and welfare of workers are safeguarded
in the workplace.
Que. 5. (a) Explain the welfare provisions under the Factories Act, 1948. 5M (CO4)
Answer :
The Factories Act, 1948 is an important legislation in India that aims to
ensure the health, safety, and welfare of workers employed in factories.
The Act includes various provisions related to welfare measures that
employers are required to provide for the benefit of their workers. Here
are some of the welfare provisions under the Factories Act, 1948:
Cleanliness: The Act mandates that factories maintain cleanliness in the

workplace. Adequate provisions for drainage and sanitation facilities,
such as toilets, washing facilities, and drinking water, must be provided
to workers.
Ventilation and Temperature: The Act requires factories to have

proper ventilation to ensure a comfortable working environment. The
temperature inside the factory should be kept reasonable and should not
exceed prescribed limits to prevent discomfort or health hazards.

Lighting: Adequate and suitable lighting is necessary for the safety and
well-being of workers. The Act specifies minimum lighting levels in
different areas of the factory, including the workplace, passageways,
and stairs.
Drinking Water: Employers are obligated to provide clean drinking

water to workers. The water should be easily accessible, free from
contamination, and conveniently located within the workplace.
Latrine and Washing Facilities: The Act mandates the provision of

separate and adequate sanitary facilities for male and female workers.
Latrine facilities, such as toilets and urinals, must be provided, along
with washing facilities like hand basins, soap, and towels.
First Aid: Employers are required to provide first aid facilities within
the factory premises. Trained personnel and necessary medical supplies
should be available to provide immediate assistance in case of accidents
or medical emergencies.
Canteen Facilities: If a factory employs a specified number of workers,

typically 250 or more, the Act requires the establishment of a canteen or
dining facilities. This provision ensures that workers have access to
hygienic and nutritious meals during their working hours.
Restrooms and Lunchrooms: Factories must provide suitable and

separate restrooms or restrooms with arrangements for sitting, along
with adequate lunchrooms or dining areas for workers to take breaks
and meals.
Welfare Officer: Factories employing a certain number of workers must

appoint a qualified welfare officer to oversee and facilitate the welfare
activities and ensure compliance with the provisions of the Act.
It's important to note that the specific requirements and applicability of

these welfare provisions may vary based on the number of workers
employed, the nature of the factory, and other relevant factors.
Employers are responsible for complying with the welfare provisions
and ensuring the well-being and safety of their workers as mandated by
the Factories Act, 1948.
(b) Write briefly on Two objectives of Bonus Act, 196 5M (CO4)
Answer :
The Bonus Act, 1965 is a legislation enacted by the Government of
India to ensure the payment of bonuses to employees working in certain
establishments. The act has two main objectives:
To provide for the payment of bonus: The primary objective of the

Bonus Act is to ensure that employees receive a share in the profits
earned by the establishment they work for. The act mandates that
employers in specified industries must pay an annual bonus to eligible
employees. The bonus is calculated based on the profits earned and the
allocable surplus available in the establishment. It aims to promote a fair
distribution of profits and provide a financial incentive to employees for
their contribution to the success of the establishment.
To regulate the payment of bonus: The Bonus Act also serves as a

regulatory framework for the payment of bonuses. It sets out provisions
regarding the eligibility criteria, calculation of bonus, and the time
frame for payment. The act defines the establishments covered under its
purview, which include factories, mines, plantations, and certain other
establishments employing a minimum number of employees. It also lays
down rules for determining the allocable surplus, the maximum bonus
payable, and the obligations of employers in relation to maintaining
records and submitting annual returns.
Thus the objectives of the Bonus Act, 1965 are to ensure the fair
distribution of profits among employees and to establish a legal
framework for the payment of bonuses, thereby promoting industrial
harmony and employee welfare.
(c) Write short notes on Minimum Wages 5M (CO4)
Answer :
Minimum wages refer to the lowest legal wage rate that employers are
obligated to pay their workers for a specified period of work. Here are
some short notes on minimum wages:
Purpose: The primary purpose of minimum wages is to provide a social

safety net and protect workers from exploitation by ensuring that they
receive fair compensation for their labor. Minimum wages aim to
prevent poverty-level wages and improve the standard of living for
workers and their families.
Legal Framework: Minimum wages are typically established and

enforced through legislation or regulatory mechanisms. Governments
set minimum wage rates either through national laws or through
regional or sector-specific regulations. These laws define the minimum
amount that employers must pay to workers, and non-compliance can
result in penalties or legal consequences.
Determination: The process of determining minimum wages varies

across countries and jurisdictions. Factors considered in setting
minimum wages may include the cost of living, inflation rates,
productivity levels, prevailing wage rates in the industry or region, and
social and economic considerations. Governments may consult with
labor unions, employer associations, and other stakeholders during the
determination process.
Coverage: Minimum wage laws typically cover specific sectors or

industries, although some countries may have a universal minimum
wage that applies to all workers. The coverage may also depend on
factors such as the type of employment (e.g., full-time, part-time,
casual) or the age of the worker. Certain categories of workers, such as
apprentices, trainees, or workers with disabilities, may have separate
minimum wage provisions.
Upward Adjustments: Minimum wages are not fixed indefinitely; they

are subject to periodic review and adjustment. Governments may revise
minimum wage rates periodically to account for changes in the cost of
living, inflation, or other economic factors. Adjustments may be made
annually, biennially, or on a more infrequent basis, depending on the
specific jurisdiction.
Impact: Minimum wages can have both positive and negative impacts.
Advocates argue that they help reduce income inequality, alleviate
poverty, and stimulate domestic demand by putting more money in the
hands of low-wage workers. However, critics argue that minimum
wages can lead to job losses, particularly for small businesses or in
sectors with narrow profit margins, and may discourage employers from
hiring less-skilled or inexperienced workers.
Enforcement: Effective enforcement mechanisms are crucial to ensuring

compliance with minimum wage laws. Governments establish
enforcement agencies or labor departments responsible for monitoring
and investigating violations. Penalties, fines, and other legal measures
may be imposed on employers who fail to comply with minimum wage
regulations.
Que. 6. (a) Discuss the benefits available as per the provisions of the 5M (CO5)
Employees’ State Insurance Act.
Answer :
The Employees' State Insurance (ESI) Act, 1948 is a social security
legislation in India that provides certain benefits to employees in case of
illness, injury, disability, or death arising out of employment. Here are
the key benefits available under the provisions of the ESI Act:
Medical Benefits: The ESI Act provides comprehensive medical care to

insured employees and their dependents. It covers expenses related to
medical treatment, hospitalization, medicines, diagnostic tests,
prosthetic devices, and maternity benefits. Insured individuals and their
family members can avail medical services at ESI dispensaries,
hospitals, and recognized private medical institutions.
Sickness Benefit: In case of temporary disablement due to sickness,

insured employees are entitled to receive cash benefits called "Sickness
Benefit." It provides a percentage of the average daily wages for the
period of certified sickness.
Maternity Benefit: Female employees are eligible for maternity

benefits, which include paid leave for a certain period before and after
childbirth. The benefit is extended to insured women employees and
also to their insured spouses.
Disablement Benefit: If an employee suffers an employment-related

injury or occupational disease resulting in partial or total disablement,
the ESI Act provides a disablement benefit. The amount of benefit
depends on the extent of disablement.
Dependent's Benefit: In the unfortunate event of an insured employee's

death due to employment-related injury or occupational disease, the
dependents of the deceased employee are eligible for a monthly pension
called "Dependent's Benefit."
Confinement Expenses: Insured women employees are entitled to
receive a lump sum payment for confinement expenses during
childbirth. This benefit is in addition to the maternity benefit.
It's important that the benefits provided under the ESI Act are funded by
both the employer and the employee. The employer contributes a certain
percentage of the employee's wages to the ESI fund, and the employee
also makes a contribution. The fund is managed by the Employees' State
Insurance Corporation (ESIC), a statutory body under the Ministry of
Labor and Employment, Government of India.
These benefits aim to provide financial security and medical care to
employees and their dependents during periods of illness, injury,
disability, or maternity.
(b) Discuss in detail the various provisions under Payment of 5M (CO5)
Gratuity Act
Answer :
The Payment of Gratuity Act, 1972 is an important legislation in India
that ensures the payment of gratuity to employees in the private sector.
The Act provides financial security to employees by offering a lump
sum payment as gratitude for their long and meritorious service. Let's
discuss the various provisions under the Payment of Gratuity Act in
detail:
Applicability:
The Act applies to establishments employing ten or more employees in
any business, trade, industry, or undertaking, including factories, mines,
oilfields, plantations, ports, railways, shops, and educational institutions.
It covers both organized and unorganized sectors.
Eligibility:
To be eligible for gratuity, an employee must have completed a
minimum of five years of continuous service with the same employer.
However, the condition of five years is not applicable in case of death or
disablement of the employee.
Payment:
Gratuity is a lump sum payment made by an employer to an employee.
The Act stipulates that the gratuity amount should be calculated at the
rate of 15 days' wages for every completed year of service, based on the
last drawn salary of the employee. The Act defines "wages" as basic
salary plus dearness allowance and includes any commission, if
applicable.
Maximum Gratuity:
The Act sets a maximum limit on the amount of gratuity payable. As of
the current provisions, the maximum gratuity amount is ₹20 lakhs.
However, an employer can voluntarily pay gratuity beyond this limit.
Triggering Events:
Gratuity becomes payable to an employee upon the occurrence of any of

the following events:
a. Retirement: When an employee retires after completing at least five
years of service.
b. Resignation: When an employee resigns after completing at least five
years of service.
c. Death or Disablement: In case of the employee's death or
disablement, regardless of the length of service.
d. Termination: When an employee's services are terminated due to
superannuation, ill health, or any other reason.
Nomination:
The Act provides for the nomination of a person to receive gratuity in
the event of the employee's death. The employee has the right to
nominate one or more family members for this purpose. If a nominee is
a minor, the employee can appoint a guardian to receive the gratuity on
behalf of the minor.
Payment Timeframe:
The employer is required to pay the gratuity amount within 30 days
from the date it becomes payable. In case of delay, the employer may be
liable to pay interest on the outstanding amount.
Penalties:
Non-compliance with the provisions of the Act can lead to penalties,
including fines and imprisonment. The Act empowers the appropriate
government to appoint controlling authorities to oversee the
implementation of the Act and settle disputes between employers and
employees.
It is important for both employers and employees to be aware of the

provisions of the Payment of Gratuity Act to ensure that gratuity is
rightfully paid and received.
(c) Discuss in detail the various provisions under Maternity Benefit 5M (CO5)
Act, 1961
Answer :
The Maternity Benefit Act, 1961 is an important legislation in India that
aims to provide certain benefits and safeguards to women employees
during their pregnancy and after childbirth. The Act applies to factories,
mines, plantations, shops, and establishments employing a specified
number of employees. Let's discuss in detail the various provisions
under the Maternity Benefit Act, 1961:
Maternity leave: The Act provides for a minimum of 26 weeks of

maternity leave. A woman is entitled to take maternity leave for a period
of eight weeks before the expected date of delivery and the remaining
weeks after childbirth. However, if the woman already has two or more
living children, the duration of maternity leave is reduced to 12 weeks.
Payment during maternity leave: During the period of maternity

leave, the woman is entitled to receive payment of wages at the rate of
her average daily wage for the period of her absence. The employer is
required to pay this amount before the woman goes on leave.
Medical bonus: The Act also provides for a medical bonus of ₹3,500
(as of 2021) to be paid by the employer to the woman in addition to her
wages. This amount is intended to cover the medical expenses related to
pregnancy and childbirth.
Leave for miscarriage or medical termination: In case of a

miscarriage or medical termination of pregnancy, a woman is entitled to
six weeks of leave with wages. This leave can be taken immediately
after the date of miscarriage or medical termination.
Leave for illness arising out of pregnancy: If a woman suffers from

illness arising out of pregnancy, delivery, premature birth, or
miscarriage, she is entitled to leave with wages for a maximum period
of one month. The employer cannot terminate her employment during
this period.
Nursing breaks: The Act mandates that every woman who returns to
work after maternity leave shall be allowed to have two breaks of 15
minutes each for nursing her child until the child attains the age of 15
months.
Prohibition of work in certain conditions: The Act prohibits the

employment of a pregnant woman for six weeks immediately following
the day of her delivery, miscarriage, or medical termination. It also
prohibits the employment of a woman during the six weeks preceding
the expected date of delivery if she gives notice to the employer in
writing about her pregnancy.
Protection against dismissal: The Act provides protection to women

from being dismissed during or on account of absence due to maternity
leave. It is illegal for an employer to dismiss a woman on such grounds.
Disallowance of work in hazardous conditions: If a woman is

employed in work of an arduous nature or in any work which is likely to
adversely affect her health during pregnancy, she can request her
employer to provide her with an alternative job if such a job is available.
If an alternative job cannot be provided, the employer is required to
grant her leave with wages.
Establishment of crèche facilities: If an establishment employs 50 or

more employees, it is required to provide crèche facilities for children
under the age of six. The crèche should be located within a prescribed
distance from the workplace and be maintained by the employer.
These are the key provisions under the Maternity Benefit Act, 1961,
which aim to provide essential benefits and support to women during
pregnancy and after childbirth. The Act promotes the health and well-
being of working women and ensures their rights are protected in the
workplace.
Que. 4. (a) Explain the functions of Collective Bargaining. 5M (CO3)

Answer :
Collective bargaining is a process that involves negotiation and
discussion between employers (or their representatives) and employees
(typically represented by labor unions) to establish and regulate terms
and conditions of employment. It serves as a mechanism for resolving
conflicts and reaching agreements regarding various aspects of the
employment relationship. The primary functions of collective
bargaining include:
Representing Employee Interests: Collective bargaining provides a

platform for employees to come together and present their collective
interests and concerns to the employer. Through their chosen
representatives, employees can voice their needs, demands, and
grievances, ensuring their viewpoints are considered during
negotiations.
Negotiating Wages and Benefits: One of the crucial functions of

collective bargaining is negotiating wages, salaries, and benefits for
employees. The bargaining process helps determine fair and competitive
compensation packages, including pay scales, bonuses, allowances,
healthcare benefits, retirement plans, and other monetary and non-
monetary perks.
Establishing Working Conditions: Collective bargaining addresses a

wide range of working conditions, such as working hours, rest breaks,
leave policies, overtime compensation, safety regulations, and
workplace rules. By engaging in negotiations, employees aim to
establish favorable conditions that promote their well-being, safety, and
productivity.
Resolving Disputes: Conflicts and disputes inevitably arise in the

workplace. Collective bargaining provides a structured mechanism for
resolving such issues. It allows both parties to discuss and find mutually
acceptable solutions to disagreements related to disciplinary actions,
workplace policies, grievances, and other work-related matters.
Ensuring Job Security: Collective bargaining can help protect job

security by addressing issues such as layoffs, downsizing, and
employment stability. By negotiating provisions that offer safeguards
against arbitrary terminations, employees can gain a sense of security
and stability in their employment.
Enhancing Workplace Communication: The bargaining process

facilitates direct communication between employers and employees or
their representatives. This communication allows for the exchange of
information, concerns, and ideas, fostering transparency and
understanding between the parties involved.
Establishing Collective Agreements: Through collective bargaining,

employers and employees reach a collective agreement that outlines the
terms and conditions of employment. This agreement serves as a legally
binding contract that governs the employment relationship and ensures
consistency and fairness in the application of policies and procedures.
The collective bargaining serves as a means for employees to

collectively assert their rights, negotiate fair working conditions and
compensation, resolve disputes, and establish a framework for a
harmonious and productive employment relationship. It promotes
collaboration between employers and employees, leading to better
labor-management relations and a more equitable work environment.
(b) Discuss the conditions for a successful collective bargaining. 5M (CO3)
Answer :
Successful collective bargaining typically requires certain conditions to
be in place. Here are some key factors that contribute to a successful
collective bargaining process:
Strong Union Representation: A successful collective bargaining

process often relies on a well-organized and empowered labor union
representing the employees. The union should have a clear mandate
from its members and be capable of negotiating on their behalf.
Good Labor-Management Relationship: A positive relationship

between the labor union and the employer is crucial. Trust, respect, and
open communication between the two parties can significantly enhance
the chances of successful negotiations.
Clear Goals and Objectives: Both the labor union and the employer
need to have well-defined goals and objectives for the bargaining
process. These objectives should be specific, realistic, and aligned with
the interests of the employees and the organization.
Adequate Preparation: Effective preparation is vital for successful

negotiations. Both the labor union and the employer should gather
relevant information, analyze data, and conduct research to support their
positions. Preparation includes understanding the industry, economic
conditions, legal framework, and historical precedents.
Good Faith Bargaining: Both parties should approach the bargaining

process in good faith, meaning they should be genuinely willing to
negotiate and make reasonable compromises. This involves actively
participating, engaging in constructive dialogue, and making efforts to
find mutually acceptable solutions.
Skilled Negotiators: Competent and experienced negotiators from both

the labor union and the employer's side can significantly contribute to
successful collective bargaining. Negotiators should possess strong
communication, problem-solving, and interpersonal skills, enabling
them to build rapport and find common ground.
Legal Framework: The existence of a supportive legal framework,

including labor laws and regulations, can provide a solid foundation for
collective bargaining. The laws should protect the rights of employees
to engage in collective bargaining and ensure fair labor practices.

External Factors: External factors such as the state of the economy,
labor market conditions, political climate, and public opinion can
influence collective bargaining outcomes. These factors may affect the
bargaining power and leverage of each party, making it important to
consider them during negotiations.
Flexibility and Creativity: A successful collective bargaining process

often requires flexibility and creativity from both parties. Being open to
exploring alternative solutions, considering different options, and
adapting to changing circumstances can lead to mutually beneficial
agreements.
While these conditions can contribute to successful collective
bargaining, it's important to note that each bargaining situation is
unique, and the outcome depends on the specific circumstances,
dynamics, and goals of the parties involved.
(c) Explain the process of collective bargaining. 5M (CO3)
Answer :
The process of collective bargaining typically involves several key
steps, which can vary depending on the specific context and the parties
involved. Here is a general overview of the collective bargaining
process:
Preparing for Bargaining: Before negotiations begin, both the

employer and the employees (often represented by a labor union or
other representative body) must prepare for the bargaining process. This
involves conducting research, gathering data, and identifying key issues
and objectives. The employer and the employees may also establish
their respective bargaining teams, consisting of individuals responsible
for negotiating on their behalf.
Negotiating Proposals: The next step is the exchange of initial

proposals. The employer and the employees present their respective
demands, priorities, and proposals for the terms and conditions of
employment. These proposals often cover areas such as wages, benefits,
working conditions, job security, and other relevant issues.
Bargaining and Counterproposals: Once the initial proposals are

exchanged, the parties engage in bargaining sessions. During these
sessions, they discuss, debate, and negotiate the proposals put forward.
Each side may present counterproposals, offering alternative terms or
adjustments to the original proposals. The bargaining process involves
open dialogue, active listening, and constructive engagement to reach
mutually acceptable agreements.
Reaching Agreements: As negotiations progress, the parties work

toward reaching agreements on the various issues under discussion. This
involves making compromises, finding common ground, and exploring
potential solutions. Agreements can be reached on individual items or as
a comprehensive package, often resulting in a collective agreement that
outlines the terms and conditions of employment.
Ratification: Once the bargaining teams have reached a tentative

agreement, it is typically subjected to a ratification process. The
employees, often through a vote conducted by their union, have the
opportunity to review the proposed agreement and decide whether to
accept or reject it. If the agreement is ratified, it becomes legally
binding and establishes the terms of the employment relationship.
Implementation and Enforcement: After the collective agreement is

ratified, both parties must implement its provisions. This involves
ensuring compliance with the agreed-upon terms, communicating the
terms to employees, and making any necessary adjustments to policies
and procedures. Both the employer and the employees have a
responsibility to uphold and enforce the provisions of the agreement.
Monitoring and Review: The collective agreement is typically valid for

a specified period, often several years. During this time, the parties
monitor its implementation and address any issues that may arise.
Regular review and evaluation of the agreement's effectiveness allow
for adjustments or modifications in subsequent bargaining rounds.
It is important to note that the collective bargaining process can involve

various strategies, tactics, and external factors that can influence its
course. Additionally, in some jurisdictions, there may be legal
requirements or specific procedures to follow during the bargaining
process. The specific dynamics and intricacies of collective bargaining
can vary across industries, countries, and specific labor relations
contexts.
Que. 5. (a) Discuss in detail various provisions under Payment of Bonus 5M (CO4)
Act.
Answer :
The Payment of Bonus Act, 1965 is an Indian legislation that aims to
provide for the payment of bonus to employees working in
establishments based on their performance and productivity. The act
lays down various provisions to ensure fair distribution of bonus and
protect the rights of employees. Here are some of the key provisions
under the Payment of Bonus Act:
Applicability:
The act applies to every factory, establishment, or organization
employing 20 or more persons. It is also applicable to certain types of
establishments notified by the government, even if they employ fewer
than 20 employees.
Eligibility:
To be eligible for bonus under the act, an employee must have worked
for at least 30 working days in the financial year. It includes full-time,
part-time, and temporary employees.
Calculation of Bonus:
The bonus is calculated based on the employee's salary or wage. The
minimum bonus payable is 8.33% of the employee's salary or wage,
subject to a maximum of 20% of the salary. If the allocable surplus
(available surplus for distribution as bonus) is insufficient, the bonus
payable will be proportionately reduced.
Set-off and Set-on:

If an employer has paid any amount to an employee exceeding the
minimum bonus payable in any accounting year, the excess amount can
be set off against the amount of minimum bonus payable in subsequent
years. However, if there is any shortfall in the amount paid, it can be
carried forward and set on against the available surplus in subsequent
years.
Time limit for payment:

The bonus should be paid within eight months from the close of the
financial year. However, if the employer obtains permission from the
appropriate authority, the bonus payment can be extended for a further
period of six months.
Disqualification from bonus:

An employee can be disqualified from receiving bonus if they have been
dismissed from service for fraud, riotous or violent behavior, theft,
misappropriation, or sabotage of property.
Appeals and Penalties:

Any employee or employer aggrieved by an order of the appropriate
authority may file an appeal. The act also prescribes penalties for non-
payment of bonus or any other violation, which may include
imprisonment and/or fines.
Exemptions:
The government has the power to exempt any establishment, class of
establishments, or employees from the provisions of the act if it deems
necessary.
It is important to note that the Payment of Bonus Act may have

undergone amendments or changes since my knowledge cutoff in
September 2021. It is always advisable to refer to the latest version of
the act and consult legal professionals for precise and up-to-date
information regarding its provisions.
(b) Explain Provisions relating to Payment of Minimum Bonus 5M (CO4)
under Payment of Bonus Act, 1965.
Answer :
The Payment of Bonus Act, 1965 is an Indian legislation that governs
the payment of bonuses to employees in certain establishments. The Act
provides provisions for the payment of minimum bonus to eligible
employees. Here are the key provisions relating to the payment of
minimum bonus under the Payment of Bonus Act, 1965:
Applicability: The Act applies to establishments employing 20 or more

persons during the accounting year. It covers both the private and public
sectors, including factories, mines, plantations, and other specified
establishments.
Eligibility: Every employee who has worked for at least 30 working

days in an accounting year is eligible to receive a bonus under the Act.
However, the employer can set a higher eligibility threshold, not
exceeding 60 working days.
Computation of Bonus: The Act specifies the method for calculating

the bonus payable to eligible employees. The minimum bonus is
calculated as a percentage of the employee's salary or wage earned
during the accounting year. The percentage can vary but should not be
less than 8.33% of the salary or wage, and not more than 20% of the
salary or wage.
Allocable Surplus: The Act requires the employer to determine the

allocable surplus for the accounting year. The allocable surplus is
calculated by deducting certain amounts, such as depreciation and direct
taxes, from the gross profits of the establishment. The Act provides
detailed guidelines for the calculation of the allocable surplus.
Set-off and Set-on: If an employer has paid any amount exceeding the
minimum bonus due in any previous year, the excess amount can be set
off against the minimum bonus payable in the current year. Similarly, if
the allocable surplus in any accounting year is insufficient to pay the
minimum bonus, the deficiency can be carried forward and set on
against the available surplus in the succeeding accounting years.
Time limit for payment: The Act stipulates that the bonus payable to
eligible employees should be paid within eight months from the close of
the accounting year. However, the Act allows the employer to make an
interim payment of bonus within the specified time, subject to certain
conditions.
Disqualification and Deductions: The Act specifies certain

disqualifications for receiving a bonus, such as dismissal for fraud or
riotous or violent behavior. Additionally, the Act allows certain
deductions from the bonus payable, such as fines, deductions for
damages or loss caused to the employer, or recovery of advances or
loans.
It's important to note that the Payment of Bonus Act, 1965 may have
undergone amendments or changes after my knowledge cutoff in
September 2021. It's advisable to refer to the latest version of the Act
and consult legal professionals for accurate and up-to-date information.
(c) Explain the provisions for timely payment of wages under the 5M (CO4)
Payment of Wages Act, 1936.
Answer :
The Payment of Wages Act, 1936 is an Indian legislation that ensures
the timely and full payment of wages to employees. The Act provides
several provisions to safeguard the rights of employees regarding the
payment of their wages. Here are the key provisions related to the
timely payment of wages under the Payment of Wages Act, 1936:
Time of Payment: The Act mandates that wages should be paid on a

regular basis and within the prescribed time limit. It specifies that wages
should be paid before the expiry of the 7th day (in case of
establishments with less than 1,000 employees) or the 10th day (in case
of establishments with 1,000 or more employees) from the end of the
wage period. The wage period is usually a month, but it can be any
other period as agreed upon between the employer and the employee.
Mode of Payment: The Act provides flexibility in the mode of

payment. Wages can be paid in cash or by check or through electronic
transfer, as per the employee's preference. However, the Act prohibits
payment in kind, except for certain specified cases where it is
customarily made.
Deductions: The Act allows certain deductions from wages, but they
should be authorized by law or agreed upon by the employee.
Deductions can be made for income tax, social security contributions,
contributions to provident fund schemes, fines, or any other deductions
specifically permitted by the Act. The total deductions should not
exceed 75% of the employee's wages.
Prohibition of unauthorized deductions: The Act prohibits

unauthorized deductions from wages. It states that no deduction can be
made from the wages of an employee, other than those specified and
authorized by law or agreed upon in writing by the employee.
Overtime Wages: In cases where an employee works beyond the

normal working hours, the Act requires the payment of overtime wages.
The rate of overtime wages should be at least twice the ordinary rate of
wages.
Wages Register and Payslip: The Act mandates that every employer
should maintain a register of wages, which contains details of wages
paid to each employee. Additionally, the Act requires the employer to
provide a wage slip or payslip to each employee, which should contain
detailed information about the wages earned, deductions made, and the
net amount paid.
Inspections and Penalties: The Act empowers designated authorities to

conduct inspections of establishments to ensure compliance with the
provisions of the Act. If any employer violates the provisions of the Act,
they may be subject to penalties and legal consequences.
It's important to note that the Payment of Wages Act, 1936 may have
undergone amendments or changes after my knowledge cutoff in
September 2021. It's advisable to refer to the latest version of the Act
and consult legal professionals for accurate and up-to-date information.
Que. 6. (a) Write short notes on Provident Fund. 5M (CO5)
Answer :
Provident Fund (PF) refers to a retirement savings scheme that is
commonly implemented in many countries, including India. It is
designed to provide financial security and stability to employees after
their retirement. Here are some key points about Provident Fund:

Purpose: The primary objective of a Provident Fund is to facilitate
long-term savings for employees and ensure a steady income stream
during their retirement years. It helps individuals build a corpus over
their working life, which they can access upon retirement or under
specific circumstances.
Contributions: Both the employee and the employer make

contributions to the Provident Fund. Typically, a certain percentage of
the employee's salary (usually 12%) is deducted and contributed to the
fund, and the employer matches this contribution. The contributions
accumulate over time, generating interest and growing the fund's value.
Tax Benefits: Provident Fund contributions often come with tax

benefits. In many countries, including India, the contributions made by
the employee are tax-deductible under specific sections of the tax laws.
Additionally, the interest earned on the accumulated amount and the
final withdrawal may be exempt from taxation up to a certain limit.
Withdrawal: While the primary purpose of a Provident Fund is

retirement savings, it may also allow partial withdrawals for certain
purposes before retirement. Common reasons for partial withdrawal
include medical emergencies, purchasing a house, education, or
marriage expenses. The specific rules and conditions for withdrawals
vary from country to country.
Interest: Provident Funds offer interest on the accumulated balance,

which helps grow the savings over time. The interest rate is typically
fixed by the government or the organization managing the fund and may
be revised periodically. The interest rate can vary based on the
prevailing economic conditions and is generally higher than regular
savings accounts.
Portability: Provident Fund accounts are portable, meaning that

employees can transfer their accumulated balance from one employer to
another when they switch jobs. This feature ensures continuity of
savings and avoids loss of benefits due to job changes.
Social Security: Provident Funds often serve as a social security net,

providing financial support to employees and their families in case of
unforeseen events such as disability, death, or critical illness. These
provisions ensure that employees and their dependents have some
financial protection during challenging times.
It's important to note that the specific features, regulations, and names of
Provident Fund schemes may differ from country to country. It is
advisable to consult the relevant authorities or refer to the specific
guidelines of the Provident Fund scheme applicable to your jurisdiction
for accurate and up-to-date information.
(b) Briefly discuss the various provisions regarding health as 5M (CO5)
covered by the factories Act, 1948
Answer :
The Factories Act, 1948 is an important legislation in India that governs
the working conditions in factories. While it primarily focuses on
aspects like safety, welfare, and working hours, it also includes
provisions related to the health of workers. Here are the key provisions
regarding health covered by the Factories Act, 1948:
Cleanliness: The Act requires that every factory must maintain

cleanliness and provide adequate ventilation to ensure a healthy working
environment. It specifies measures to prevent overcrowding and proper
disposal of waste and effluents.
Disposal of wastes and effluents: The Act mandates the safe disposal
of wastes, effluents, and hazardous substances generated in the factory
to prevent environmental pollution and protect the health of workers.
Artificial humidification: If the manufacturing process involves

artificial humidification of air, the Act provides guidelines to prevent
any adverse effects on workers' health, such as respiratory problems,
skin diseases, or eye irritations.
Ventilation and temperature control: The Act requires factories to

maintain suitable ventilation systems and control the temperature to
ensure a comfortable and healthy working environment, especially in
areas prone to extreme heat or cold.
Dust and fume extraction: In processes involving the production of

dust, fumes, or other harmful substances, the Act mandates the
installation of effective dust extraction and ventilation systems to
protect workers' health and prevent respiratory ailments.
Artificial lighting: The Act specifies standards for lighting levels to

ensure adequate illumination for the safety and well-being of workers,
preventing eye strain and other related health issues.
Safety measures for hazardous processes: In factories dealing with

hazardous substances, the Act emphasizes the provision of safety
equipment, protective gear, and facilities for first aid, firefighting, and
emergency medical care to address any health risks.
Welfare amenities: The Act also covers various welfare amenities that
promote the health of workers, such as clean drinking water, washing
facilities, sanitary provisions, and medical examination arrangements. It
may also require the appointment of qualified medical professionals and
the provision of a first aid box.
It's important to note that the Act provides a framework for health-
related provisions, but specific regulations and standards may vary
across different states and industries. Additionally, subsequent
amendments and regulations may have introduced further provisions to
address emerging health concerns in factories.
(c) Briefly discuss Worker’s Compensation. 5M (CO5)
Answer :
Worker's compensation, also known as workers' compensation or
workman's compensation is a system of insurance that provides
financial and medical benefits to employees who suffer job-related
injuries or illnesses. It is designed to protect workers and provide them
with support during their recovery and rehabilitation while ensuring that
employers fulfill their responsibility for workplace safety.
Key aspects of worker's compensation include:
Coverage: Worker's compensation laws typically require employers to

provide compensation benefits to employees who experience work-
related injuries, occupational diseases, or disabilities. The coverage
extends to most types of employees, including full-time, part-time,
temporary, and seasonal workers.
No-fault system: Worker's compensation is a no-fault system, which

means that employees are entitled to benefits regardless of who was at
fault for the injury or illness. The employee does not need to prove
negligence on the part of the employer to receive compensation.
Benefits: The benefits provided through worker's compensation can

include medical expenses, such as hospital bills, doctor visits,
medications, and rehabilitation costs. Additionally, it may cover a
portion of the employee's lost wages during the period of disability or
impairment.
Rehabilitation services: Worker's compensation programs often

include rehabilitation services to help injured workers recover and
return to work as soon as possible. This may involve physical therapy,
vocational training, job placement assistance, and other support
services.
Employer obligations: Employers are responsible for carrying worker's

compensation insurance or self-insuring to cover their employees. They
must comply with legal requirements, such as reporting workplace
injuries and illnesses promptly, providing necessary documentation, and
cooperating with the claim process.
Exclusive remedy: In most jurisdictions, worker's compensation is

considered the exclusive remedy for workplace injuries and illnesses.
This means that employees generally cannot sue their employers for
additional damages beyond what is provided by the worker's
compensation system.
Independent boards or commissions: Worker's compensation claims

are typically handled by independent boards or commissions that
oversee the administration and adjudication of claims. These entities
ensure fair and timely resolution of disputes between employees and
employers.
Worker's compensation laws and regulations can vary across

jurisdictions, so it's important for employers and employees to
understand the specific provisions and requirements in their respective
regions. The objective of worker's compensation is to provide a safety
net for workers, promote workplace safety, and streamline the process
of compensation for work-related injuries or illnesses.

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TULSIRAMJI GAIKWAD-PATIL College of Engineering and Technology

Wardha Road, Nagpur - 441108

Industrial relations involve the examination of labor laws, employment

The field of industrial relations seeks to establish a balanced and

Industrial relations involve various factors, such as trade unions,

The term "industrial conflict" is often used to describe various forms of

Industrial conflict can have a significant impact on the productivity,

During collective bargaining, both parties engage in discussions and

Course Coordinator: Page 2 of 32

Preparing: Both the employer and the employee representatives prepare

Negotiating: The parties engage in discussions, exchange proposals,

Reaching an agreement: Through the negotiation process, the parties

Implementing and enforcing the agreement: Once an agreement is

Collective bargaining provides a platform for employees to have a

Bonuses can take different forms, including cash bonuses,

Cash bonuses are typically monetary rewards given to employees based

Holiday bonuses are often given to employees during festive seasons,

Components of compensation can vary depending on factors such as

Base Salary/Wages: This is the fixed monetary amount paid to

Variable Pay/Incentives: In addition to the base salary, employees

Benefits: Benefits encompass non-monetary forms of compensation

Recognition and Rewards: Organizations may provide recognition

Collective Bargaining: One of the primary functions of trade unions is

Representation and Advocacy: Trade unions represent their members'

Grievance Handling: Trade unions assist their members in addressing

Skill Development and Training: Many trade unions invest in skill

Social and Economic Justice: Trade unions often take up broader

Political Engagement: Trade unions engage in political activities to

Economic Conditions: Economic factors, such as overall economic

Labor Laws and Regulations: The legal framework governing labor

Labor Unions and Employee Associations: The presence and

Technological Advancements: Technological advancements and

Globalization and Trade: Globalization has transformed the nature of

Social and Cultural Factors: Social and cultural factors influence

Membership Decline: One significant challenge faced by trade unions

Resistance from Employers: Employers often view trade unions as a

Legal and Regulatory Challenges: Trade unions must comply with

Internal Divisions and Conflicts: Like any organization, trade unions

Globalization and Outsourcing: The increasing globalization of

Technological Advancements: Technological advancements and

Wages and Benefits: One of the primary causes of industrial disputes is

Working Conditions: Disputes can also arise from concerns over

Job Security: In times of economic uncertainty or organizational

Unionization and Collective Bargaining: Industrial disputes are often

Unfair Treatment and Discrimination: Allegations of unfair

Change Management: Introduction of new policies, technologies, or

Miscommunication and Lack of Trust: Industrial disputes can arise

It is worth noting that industrial disputes can vary significantly in

Course Coordinator: Page 9 of 32

Commercial Disputes: Commercial disputes involve conflicts that arise

Employment Disputes: Employment disputes occur between employers

Consumer Disputes: Consumer disputes arise when there is a

International Disputes: International disputes occur between countries or

Economic Strikes: This is the most common type of strike where

General Strikes: In a general strike, workers from various industries

Sympathy Strikes: Sympathy strikes occur when workers in one

Wildcat Strikes: Wildcat strikes are unauthorized work stoppages that

Slowdown Strikes: In a slowdown strike, workers deliberately reduce

Sit-Down Strikes: Sit-down strikes involve workers occupying their

Political Strikes: Political strikes are aimed at influencing or opposing

Improved Employee Morale and Motivation: By allowing workers to

Enhanced Productivity and Quality: Workers' participation can lead

Better Utilization of Human Resources: Workers possess valuable