Industrial Relation For Epfo Complete

Chapter 1 --> Overview of Industrial Relations
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Industry
An industry is a sector that produces goods or related services within an economy.
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Chapter 1--> Overview of Industrial Relations --> Introduction
TWO COMPONENTS OF
INDUSTRIAL RELATIONS
Workers Capitalists
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GOOD WORKING CONDITIONS MAKE PROFITS
BETTER WAGES
WELFARE
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Why do we need Industrial Relations?
Good working
More
conditions and
profits
better wages
Objectives clash  The

situation is detrimental to the
two parties and the
community.
 Industrial relations are needed to manage the relations between labour and management in industry.
 Management (on behalf of capitalists) invest money and have the objective of reaping high profits.
 Labour toils hard for the production of goods & services and gets compensation in return.
 Industrial relations serve as the means by which various interest involved in the labour market are
accommodated, primarily for the purpose of regulating employment relationships.
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Traditional and Modern Approach to Industrial Relations
Traditional Approach Modern Approach
The modern approach includes not only the

relation between employers and workers but
Earlier industrial relations was about also processes like-
relationship between employers and workers.
 Organising of workers
 Workers’ participation in decision making
 Dispute settlement
 Collective bargaining etc.
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Types of Industrial Relations
BIPARTITE
Earlier, the industrial relations were managed themselves by the

employers and the workers. Conflict were resolved by themselves
without intervention of any third party.
TRIPARTITE
Government
 Make norms, rules and regulations.
 Acts as regulatory body for industrial
relations.
 Resolving the queries between employers
and labour.
Industrial Relations and Constitution of India
 The Constitution of India provides the basic guidelines for creating the
industrial relations system of the country.
 The Fundamental Rights and the Directive Principles of State Policy in the
Constitution act as the basis for labour policy.
 The Directive Principles of State Policy enshrined in the constitution act as

guidelines for the state in creating such industrial relations system in the
country s provided equity, justice and welfare of workers.
ANY POLICY, RULE OR LAW CANNOT VIOLATE THE FUNDAMENTAL RIGHTS.
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Some of the important provisions in the Constitution are
 Article 14 - Right to Equality
 Article 15 – Prohibition of discrimination
 Article 19 – Right to freedom of speech and association
 Article 21 – Right to life and personal liberty
 Article 23 – Prohibition of traffic in human beings and forced labour
 Article 24 – Prohibition of employment of children in factories
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 Article 38 – Secure a social order for the promotion of welfare of people
 Article 39 – Protection of health and strength of workers and protection of childhood and youth from exploitation
 Article 39A – Promote justice on the basis of equal opportunity and provide free legal aid through suitable legislation
 Article 38
 Article
 Article 39 41 – Right to work, to education and to public assistance in cases of unemployment, old age, sickness,
disablement and undeserved want
 Article 39A

 Article 42 –
Article 41
Secure just and humane conditions of work and maternity relief
 Article 42
 Article 43
  Article
Article 43A 43 – Secure work, living wage, decent standard of life etc. to people
 Article 43A – Secure participation of workers in the management of undertakings engaged in the industry.
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Concept Check
Which Article of The Constitution of India talks about workers’ participation in management?
a) Article 39
b) Article 42
c) Article 43
d) Article 43A
Answer- D
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THANK YOU
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Chapter 1 – Overview of Industrial Relations - History of industrial
relations
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History of Industrial relations in India
Pre Independence Phase Post Independence Phase
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Pre Independence Phase
Industrial Revolution Industrial First Industry in Cotton Mill

Jute Manufacturing
in Europe in 18th revolution in India India-Indigo established in
in Calcutta in 1855
century in mid 19th century Plantations in 1831 Bombay in 1851
Huge Divide between capitalists and labour. Workers were treated as mere tools of production. They subsisted on
meagre wages and lived in poor conditions. No laws to protect them.
Year 1860
Workers gradually  Beginning of But labour has to
 Labour unrest
began to organise labour unrest of suffer by way of
in Nagpur in
themselves and India. dismissal and
(1877), Bombay
this laid the seeds  Protest in Bengal victimisation in
and Surat
of trade unionism. by Indigo these protests
cultivators
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In Year 1890, Bombay Mill Hands The Trade Unions Act came into
Enactment of Association was established as the first existence in 1926 for provisions
Factories Act in 1881 workers’ association in India by the efforts regarding registration of trade
of N.M. Lokhande. unions.
Famous strikes:-
Meanwhile, World Formation of Establishment of All
 Textile Labour Association
War I (1914-1918) International Labour India Trade Union
Ahmedabad in 1917 led by
Organisation in 1919 Congress in 1920
Gandhiji
 Strike at Madras by workers of
Buckingham and Carnatic Mills in
 Price rise 1910 & 1921
 Employers
generated profits
 Workers faced
economic distress.
 Lot of strikes
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 Economic depression of
Workmens’ Compensation 1929.
Act, 1923 was enacted.  Workers’ condition
worsened.
 Number of strikes and
lock outs.
The Indian National Trade

Establishment of Tripartite Second World War (1939-
Union Congress was formed in
Consultative Machinery in 1942 1945).
1947
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Post Independence Phase
A Tripartite Conference was  First Five year Plan(1951-

Labour Relations Bill of 1950
convened in 1947 in which 1956) emphasised on
introduced the concept of
Industrial Truce Resolution achieving industrial peace.
collective bargaining.
was adopted.  It also mentioned about
methods of settling
disputes between labour
& management, need of
grievance procedure and
It required management
importance of works
and labour to agree to
committees.
maintain industrial peace
and prevent any work
stoppages during next 3
years to promote
industrial growth.
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Second five year plan
Third five year plan
(1956-1961) evolved
(1961-1966)--> Chinese
norms, codes and Fourth Five year Plan
Aggression --> Industrial
methods for achieving (1969-1974)
Truce Resolution
harmony and discipline
adopted in 1962.
in industry.
 Joint Management
Councils in 1958 was  Central Wage
evolved.  Political
Boards, Safety
 Indian Labour Interference in
Councils and The
Conference held in 1957 trade union.
Model Grievance
 The Code of Discipline  Government
Procedure were
was evolved in 1958. declared
initiated.
 Workers’ education emergency in
 Appointment of First
scheme was also 1975.
National
initiated in 1958 to  Right to strike
Commission of
support suspended.
Labour
industrialisation.
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New Industrial policy in 1991--> Liberalisation of economy--> Workers considered as equal partners in economic growth and
emphasised on skill development of workers.
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Practice Questions
Which is the first workers’ association in India?
1. Bombay Mill Hands Association

2. The Cotton Mill Workers’ Association
3. Bombay Cotton Mill Union
4. Calcutta Workers’ Union
Ans: Option 1
Appointment of First National Commission on Labour was a part of which five year plan?
1. First Five year plan

2. Second Five year plan
3. Third Five year plan
4. Fourth Five year plan
Ans: Option 3
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THANK YOU
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Chapter 1 – Overview of Industrial Relations - National Commission On Labour
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FIRST NATIONAL COMMISSION ON LABOUR (1969)
 Was set up on 24th December,1966 under the Chairmanship of Justice PB Gajendragadkar.

 The issues covered in the report included labour welfare, wages, wage policy, bonus, social security, workers’
training and education, workers’ and employers’ organisations, and industrial relations machinery
Amendments of certain laws
 Removal of wage ceiling from Workmen’s (now Employees’) Compensation Act, 1923
 Changes in respect of Unfair Labor Practices in The Industrial Disputes Act, 1947
 Employees’ State Insurance Act, 1948 (in terms of enhancement in the wage limit for exemption from
payment of employees’ contribution)
 Factories Act, 1948 (like making penalties more stringent for violation)
 Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (enhancement in the rate of
contribution and making default of dues a cognizable offence).
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FIRST NATIONAL COMMISSION ON LABOUR (1969)
Enactment of new laws

 Contract Labour (Regulation and Abolition) Act, 1970
 Limestone and Dolomite Mines Labour Welfare Fund Act, 1972
 Iron Ore, Manganese Ore and Chrome Ore Mines Labour Welfare Fund Act, 1976
 Equal Remuneration Act, 1976 and
 Child Labour (Prohibition and Regulation) Act, 1986
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SECOND NATIONAL COMMISSION ON LABOUR (2002)
Policy of liberalisation-
Second National Commission
privatisation-globalisation
Changes taking place in the on Labour was established in
adopted by the
industrial relations scenario 1999 under the chairmanship
Government of India in
of Ravindra Varma.
1991
Commission gave recommendations

related to review of laws, social
It proposed an umbrella Commission submitted its
security measures, women workers
legislation for social security report to the Government in
and child labour, wages, skill
of workers in this sector. 2002
development, labour administration,
unorganised sector.
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GLOBALISATION
 Globalisation is the process of interconnecting people across the world on various dimensions
including cultural, economic, political, technological and environmental aspects.
 Globalisation has resulted in increased migration of workers within the country and across
nations.
 Globalisation has resulted in multinational corporations (MNCs) establishing their operations in

other countries where locals are hired.
 There has been a steady growth of the tertiary sector in recent years, which has created new
employment opportunities; at the same time shrinkage of the primary sector has also been
witnessed.
 Globalisation has increased migration of workers from one territory to another.
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INDUSTRIAL RELATIONS AND TECHNOLOGICAL CHANGE
New technology is adopted by organisations for various reasons like cost-cutting, achievingbetter product quality, time
saving, efficiency and gaining competitive advantage.
Customers always demand quality at lesser price. ‘Benchmarking’ and quality standards (like ISO, BIS, 6 Sigma, etc.) are
increasingly being adopted.
IT has also resulted in increased awareness of workers regarding labour laws, their rights, working conditions in other
enterprises in the same industry and other industries, and so on
Since they have to learn and adopt new ways and skills,It generates apprehensions in them regarding job security,
economic benefits, change in habits, redundancy and skill obsolescence.
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INDUSTRIAL RELATIONS AND HRM/ HRD
 Human Resource Management (HRM) is a process that helps in proper utilisation

of the existing workforce in an organisation and creation of such work conditions
and systems as can result in better employee efficiency.
 Human Resource Development (HRD) is a set of systematic and planned activities

designed by an organisation to provide its members with the opportunities to
learn necessary skills to meet current and future job demand.
 HRD is subset of HRM.
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INDUSTRIAL RELATIONS AND HRM/ HRD
SIMILARITIES BETWEEN HRM/HRD AND INDUSTRIAL RELATIONS
a. Both address employee-related concerns HRM/HRD

and industrial
b. Issues like employee welfare policies, grievance handling and training of workers are of relations may
common concern to HRM/ HRD and industrial relations. be integrated
to improve
c. Improving quality of work life of employees is also seen as a common concern. employee
efficiency and
DIFFERENCE BETWEEN HRM/HRD AND INDUSTRIAL RELATIONS
competence
level and to
a. Industrial relations is inherently collectivist in nature as it considers management and
maintain
workers as two bodies distinct in every aspect of their relation.
harmony in
work
b. HRM/ HRD policies are designed by the management and changed from time to time;
environment
industrial relations issues, on the contrary, are mostly governed by labour laws that cannot be
modified by management or workers while regulating their relations.
c. Industrial relations as an area is construed to be dealing with labour/ blue-collar employees

and HRM/ HRD is concerned with whitecollar/ managerial staff.
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PRINCIPLES OF LABOUR LEGISLATIONS
Concern of employers To support their

When conditions
was to increase families workers had to
worsened too much,
production without any accept whatever
the government was
focus on improving the meager wages were
forced to intervene
condition of workers offered.
TWO IMPORTANT PRINCIPLE OF LABOUR

LEGISLATIONS WHICH ARE GUARANTEED BY THE
CONSTITUTION OF INDIA ARE
SOCIAL EQUITY SOCIAL JUSTICE
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SOCIAL JUSTICE
Article 38 emphasis on social justice which implies two things:
1) First, fair distribution of profits between owner and workers in an industrial enterprise and
2) Second, providing safe and healthy work conditions to workers.
SOCIAL EQUITY
 Article 39 enshrines such principles of social equity.
 Social equity refers to equality between different social groups such as rich and poor; male and female, and young,
old and children, religious groups, people belonging to different castes, etc.
 There must be no discrimination in terms of opportunity, wage distribution, benefits, etc., between different social
groups.
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Labour
legislation in
India
Regulatory Wage-related Welfare Protective Social security

legislations legislations legislations legislations legislations
A) The Factories Act, A) The Bonded Labour

A) The Trade Unions A) The Employees’
A) Payment of 1948 System (Abolition) Act,
Act, 1926 State Insurance Act,
Wages Act, 1936 1976
B) The Plantation Labour 1948
B) The Industrial B) The Minimum Act, 1951 and B) The Child Labour
Disputes Act, 1947 B) The Maternity
Wages Act, 1948 (Prohibition and
C) The Mines Act, 1952 Benefit Act, 1961
Regulation) Act, 1986
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Practice Questions
_______________ is the process of interconnecting people across the world on various dimensions including cultural,
economic, political, technological and environmental aspects.
1. Industrialisation
2. Globalisation
3. Privatisation
4. Human Resource Development
Ans: Option 2
Who was the Chairman of The First National Commission on Labour?
1. Justice PB Gajendragadkar
2. Justice AK Naidu
3. Justice PK Sinha
4. Justice Rajshekhar Verma
Ans: Option 1
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Chapter 1--> Overview of Industrial Relations--> Theoretical Perspectives of
Industrial Relations
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THEORETICAL PERSPECTIVES OF INDUSTRIAL RELATIONS
Systems
Model
Theoretical
Unitary Perspectives Radical
Perspective Perspective
Pluralist
Theory
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SYSTEMS MODEL
The three actors function in an

environment made up of
technology, market and various
power equations in the society.
 Proposed by Dunlop
 Industrial relations system consist of three actors

i. Management,
ii. Workers and their formal and informal organisations and
iii. Government agencies.
UNITARY PERSPECTIVE
 Both the parties must work together to

achieve their common objectives.
 There should be no conflict.
 Enterprise is a social system or a unitary organization made up of management and workers, both having the
common objectives of achieving high efficiency and high profits that would ultimately benefit all, and hence there
exists no conflict.
 According to this theory, all the actions and ideas of management and the State are right and rational, while the
actions and beliefs of workers that are conflicting with management and the State are irrational.
 It believes that trade unions are an outcome of imperfections in common understanding of shared interests
between workers and management. Trade unions are not essential for well being of workers.
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DRAWBACKS OF UNITARY PERSPECTIVE
 Fails to recognize that power is unequally distributed between workers and management in an organisation and
that this inequality may generate conflict.
 Views conflict as a negative force rather than as an opportunity to achieve harmony.
 It believes in the common interest of all stakeholders but does not propose ways to identify these common
interests.
Drawbacks
Unequal Distribution of Conflict is seen as Tells no ways to fulfil

power negative the common interest
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PLURALIST THEORY
 Conflict can be there but they can be

managed by rules and regulations by the
company or the State Intervention.
 Emphasises on use of conflict resolution
techniques.
 The Pluralist Perspective views conflict as a natural outcome in an organisation due to the presence of groups with
divergent interests.
 The Pluralist Theory of Flanders is the opposite of the Unitary Theory.
 Both the management and the workers have a common objective of the maintenance and growth of the organization.
 The Pluralist Theory views conflict between workers and management itself is not wrong.
 The focus should be on ‘how to handle it’ rather than ‘how to avoid it’.
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DRAWBACKS OF PLURALIST THEORY
Drawbacks
Rules and procedures do not adapt to

Over emphasis on rules and procedures
changing workplace conditions
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RADICAL PERSPECTIVE
1) Work and working conditions in an

organization are exploitative to workers.
2) Practices of improving employee-
management relations like employee
empowerment are viewed as motivated by
the objective of benefiting management.
 Inspired by the Marxist view on capitalism.
 The followers of Radical Perspective consider organisations as representing the oppressive nature of the general societal
structure.
 Conflict is unavoidable in organisations as management represents the interests of capitalists who want to maximise
profit at the cost of workers.
 Followers of Radical Perspective view industrial relations in terms of an enduring structural conflict between employers
and those who sell their labour to the employers.
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SUMMARY
System Model- The three parties are affected by the external environment in which they work.
Unitary Perspective- Management and workers are one happy family and what is decided by management is
completely right and rational.
Pluralist Perspective- Both management and workers want to gain growth and control and thus there can be
conflict which can be resolved.
Radical Perspective- Organisations are representing the oppressive nature of the general societal structure.
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Concept Check
Which one of the following perspectives of Industrial relations is based on the assumption that what the management has
decided is completely rational for workers and workers shall not oppose it?
a) Pluralistic Perspective
b) Unitary Perspective
c) System Model
d) Radical Perspective
Answer- B
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Chapter 1 – Overview of Industrial Relations-Labour Administration
Machinery
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TRADE UNIONISM
 Trade unionism refers to the whole gamut of activities related to trade unions, including
their structure and functions.
 Trade unionism is a natural outcome and an inherent feature of a capitalistic society,

while labor movement refers to awakening of labor class for their rights as workers and as
human beings.
 Workers organize themselves and fight as a body rather than demanding their rights
individually, which would have less impact on employers.
 This struggle of workers to associate and get recognition for their organizations is referred Trade
to as the trade union movement. Union
 Unions represent workers and adopt various means like strikes etc. to pressurize
employers. Labour
Movement
Discussion in detail in further chapters.
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ORGANISATION OF INDUSTRIAL RELATIONS IN INDIA
 Labor is a subject in the Concurrent List, which empowers both the Central and State Governments to enact
legislations subject to certain matters being reserved for the Centre.
 Industrial Relations in India is tripartite in nature.
 Some of the tripartite bodies set up in India that provide a forum to discuss and resolve the issues related to labor.
 Indian Labor Conference (ILC)
 Standing Labor Committee (SLC) and
 Industrial Committees
Government Forums and

Bodies
Management Workers/ Trade Unions
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CONSTITUTIONAL STATUS OF LABOUR JURISDICTION
Union List Concurrent List
Entry Regulation of Labour and safety in Entry No.22 Trade Unions; Industrial and labour
No.55 mines and oil fields. disputes
Entry Industrial Disputes concerning Union Entry No.23 Social security and insurance
No.61 Employees. employment and unemployment
Entry Union Agencies and institutions for Entry No.24 Welfare of labour including
No.65 professional, vocational and tehnical conditions of work, provident
training funds, employers invalidity, and old
age pension and maternity benefit.
Entry No. 25 Vocational & Techncial training of
labour
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Role of Government
In Industrial Relations
The role of the State is The Government has

protective for labor the The Government is a It is also an employer in been making efforts to
weaker partner in policy maker public sector enterprises provide social security
industrial relations. to workers.
Need for Government Intervention

 The emphasis of bipartite methods is on settling any dispute between management and workers through
mutual dialogue and on failure at this level tripartite methods of resolving disputes may be resorted to.
 The methods for dispute settlement conciliation officer, board of conciliation, voluntary arbitration, and
compulsory arbitration.
 There are Labor Courts, Industrial Tribunals, and National Tribunals in which compulsory arbitration proceedings
take place.
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The principle of natural justice must be adhered to in the Principle of natural justice means
process of initiating and conducting enquiry. Opportunity of being heard.
The Government of India has sought to involve workers in decision making through various schemes for workers’
participation. Some of the methods are
i. Works Committees,
ii. Joint Management Councils,
iii. Joint Consultative Committees,
iv. Shop councils and
v. Joint councils
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LABOUR ADMINISTRATION MACHINERY
Ministry of Labour & Employment
Directorate General of
Office of the Directorate Office of the Chief
Labour Bureau, Chandigarh Factory Advice Service
General of Employment Labor Commissioner
and Shimla and Labour Institutes,
and Training, New Delhi (Central), New Delhi
Mumbai
 Besides, there are ten subordinate offices: Directorate General of Mines Safety, Dhanbad, and Offices of the Welfare
Commissioners in nine cities in India;
 Four autonomous organisations:
i. Employees’ State Insurance Corporation,
ii. Employees’ Provident Fund Organisation,
iii. VV Giri National Labour Institute, and
iv. The Central Board for Workers’ Education.
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Concept Check
Labour is a subject of ______________ list?
a) Union
b) State
c) Concurrent
d) All of the above
Answer- C
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Chapter 1 --> Previous Year Questions
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Previous Exam Questions
Which one of the following perspectives of Industrial relations is based on the assumption that both the parties strive (and
have opportunity) to exercise economic (wages and benefits) as well as political (control) power?
a) Pluralistic Perspective
b) Unitary Perspective
c) Trusteeship perspective
d) Radical Perspective
Answer- A
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The provision for workers’ participation in management of industries is provided under
a) Article 39A of The Constitution

b) Article 43A of The Constitution
c) Article 42 of The Constitution
d) Article 43B of The Constitution
Answer- B
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Chapter 2- Indian labour Force
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Indian Labour Force
 Labour is the physical or mental effort of human beings that undertakes any
production process
 it is known as the primary factor of production.
 Labour force includes the current economically active population comprising

the employed and the unemployed.
The economically active population are all persons of both the sexes who provide labour for the production of
economic goods and services during a specified time-reference period
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The term ‘employed’ as defined by the International Labour Organisation (ILO), encompasses all persons
above a specific age, who during a specified brief period, either 1 week or 1 day, were in the following
categories:
Paid Employment Self-Employed
(i) at work: persons who, during the reference (i) at work: persons who, during the reference period,
period, have performed some work for wage or have performed some work for profit or family gain, in
salary, in cash or in kind; cash or in kind;
(ii) with a job but not at work: persons who, having (ii) with an enterprise but not at work: persons with an
already worked in their present job, were enterprise, which may be a business enterprise, a farm or
temporarily not at work during the reference period a service undertaking, who were temporarily not at work
and had a formal attachment to their job. during the reference period for any specific reason.
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Workers in India can be broadly divided into 3 categories
Regular Salaried/ Wage

Casual Wage Labour Self-Employed
Employees
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 Individuals who work in farm or non-farm enterprises of others (both household
Regular Salaried/ Wage and non household) on full time or part time basis and receive salary/ wage on a
Employees regular basis, which could be either time wage or piece wage or even salary.
 This category also includes paid apprentices.
A person who is casually engaged in others’ farm or non-farm enterprises

Casual Wage Labour (both household and non household) is casual wage labour. Wages are
received according to the terms of the daily or periodic work contract.
Persons who run their own farm or non-farm enterprises or are engaged in
Self-Employed any profession or trade independently on their own account or with 1 or a
few partners are said to be self-employed.
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There are 3 categories of self-employed persons, as
follows:
(i) Own-account Workers: These are self-employed
persons who run their enterprises on their own
account or with 1 or a few partners and, who by and
large, do not hire any labour. (Neighbourhood tailor)
(ii) Employers: Employers are self-employed persons

who operate on their own account or with 1 or a
few partners and who, by and large, run their
enterprise by hiring labour. ( Mukesh Ambani)
(iii) Helpers in Household Enterprises: These are self-

employed persons (mostly family members) who are
engaged in their household enterprises, working full
time or part time, assisting a related person living in
the same household in running the
enterprise.(Family members working together in a
small factory in house)
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Usual Status reflects the status of a person as
belonging to the labour force, if he/ she had
Usual Status
been either working or looking for work
during the major part of the 365 days
preceding a survey by the NSSO
he/ she had been either working or looking for work during the major part of the 365 days preceding a survey by the NSSO
Principal status Subsidiary status
Principal Status is the activity Subsidiary Status refers to any

accounting for majority of a activity other than the principal
person’s time over the year, activity undertaken on a short-
and such workers are called term basis, and such workers are
principal status workers. called subsidiary status workers.
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 Current Weekly Status is the activity
status of a person during a period of 7
Current Weekly Status
days preceding the date of a survey
conducted by NSSO.
 A person is considered as a worker if he

has been involved in an economic activity
at least for 1 hour on any day of the
reference week.
 Current Daily Status is determined on the

basis of a person’s activity status on each
Current Daily Status
day of the reference week.
 A person is taken to be employed for the

full day if he/ she has worked for 4 hours
or more during the day.
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Organised Sector/ Regular Employment
 The organised or formal sector in India basically consists of public sector enterprises (2/3) and private sector
organisations(1/3).
 This sector employs less than 10 per cent of India’s workforce.
Unorganised Sector Employment
 These units typically operate at a low level of organisation, with little or no division between labour and capital
as factors of production and on a small scale.
 Unorganised workers are those who work in the households or unorganised enterprises without any security of
employment or social security provided by employers.
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Casual Labour in Unorganised Sector
 Casual wage labour forms a part of the unorganised sector.
 These workers lack social security benefits, and do not even have a regular job contract.
 Agriculture is the main sector where the majority of casual labour is absorbed, followed by the manufacturing and
service sectors respectively.
 The Rashtriya Swasthya Bima Yojna provides health insurance cover to the unorganised sector workers below the
poverty line in any empanelled hospital in the country.
 The Unorganised Sector Workers’ Social Security Bill, 2007 aims at providing social security to unorganised sector
workers.
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Practice Questions
 The __________________ provides health insurance cover to the unorganised sector workers below the poverty line in
any empanelled hospital in the country.
1. Rashtriya Swasthya Bima Yojana

2. Rashtriya Chikitsa Yojna
3. Health Insurance Bill
4. National Council of Labour
Ans: Option 1
_______________ reflects the status of a person as belonging to the labour force, if he/ she had been either working or
looking for work during the major part of the 365 days preceding a survey by the NSSO
1. Current Status
2. Weekly Status
3. Daily status
4. Usual status
Ans: Option 4
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Chapter 2- Indian labour Force
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Characteristics of Indian Labour
Caste System
Gender Education
Level
Indian
labour
Absenteeism
& Labour Migratory
Turnover Character
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1. Caste System
 Government resorted to the policy of reservation for the ‘not so privileged’ categories of
people in the social system with a view to provide them with equal opportunities in
terms of education and employment.
 Thus, today labour force in India consists of people who belong to Scheduled Castes
(SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs), and so on.
2. Education Level
 There is a low literacy rate in the labour force in India and spreading even basic
education is still a challenging task.
 There is a direct link between level of education and regular employment, indicating that
as the level of education rises, the percentage of regular employment increases.
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3. Gender
 Employment growth rate and labour force growth rate of females are lower than that
of males.
 The principal characteristics of feminisation are:

 A move towards casualisation of labour,
 Shift to part-time or piecerate contracts,
 Higher freedom of hire and fire.
Under these situations women seem to be the preferred choice for employers since they
are available at lower wages and are easier to ‘manage’.
 It is interesting to note that though the percentage of regular female employees is

relatively low as compared to males in both rural and urban India, it has been
increasing over the years.
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4. Migratory Character
 Migration refers to any movement which involves change of residence from one village or
town to another village or town.
 In recent times, there has been a widespread migration of labour from villages to towns
as well.
 There has also been migration of professionals to emerging sectors like Information
Technology (IT), and of doctors, engineers and scientists to other developed countries for
better career opportunities and higher earnings
5. Absenteeism & Labour Turnover
 Absenteeism and labour turnover are common problems in Indian industries.
 Absenteeism rate amongst workers in an industry is an indicator of the level of their job
satisfaction, morale and commitment to job.
 It directly affects the productivity of the individual worker as well as the entire industry.
Child Labour
 Child labour constitutes the work done by children below 14 years of age.
 Causes of child labour are

 Poverty, illiteracy,
 Lack of education,
 Lack of unionism,
 Migrated population and
 Large family size
 The National Policy on Child Labour was formulated in 1987, aiming to eradicate child labour and
protect all children from exploitation.
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Labour Administration Machinery
 Labour falls in the Concurrent List of the Constitution of India. This means that both the Central Government and
the State governments have the power to make laws on this subject.
 The highest authority with respect to labour issues lies with the Ministry of Labour & Employment, while the
Secretary, Ministry of Labour & Employment, holds the executive authority.
 The Chief Labour Commissioner (CLC) at the Central level controls the implementation of provisions of labour
legislations.
 The organisation of the Chief Labour Commissioner (Central), known as the Central Industrial Relations Machinery
(CIRM), was set up in April 1945, as an outcome of the recommendation of the Royal Commission on Labour in
India.
 The CLC is responsible for enforcing labour legislation with respect to wages, remuneration, child labour, contract
labour, migrant labour, working time, industrial disputes, and maternity benefits in the industries and
establishments for which the Central Government is the appropriate Government.
Labour Administration Machinery in State
 Each State in India has a Labour Minister who heads the Department of Labour of that State. The Secretary of the
Department has the executive authority.
 Labour Commissioner at State-level has the responsibility of ensuring the proper implementation of the provisions
specified in labour legislations.
 The Labour Commissioner has multiple responsibilities that include inspection of factories, conciliation, and
hearing of various review applications of aggrieved parties under various labour laws.
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The Directorate General, Factory Advice Service and Labour Institutes (DGFASLI)
 The DGFASLI is responsible for carrying out inspections related to occupational safety and health issues.
 The DGFASLI has both its headquarters and the Central Labour Institute in Mumbai and 4 Regional Labour
Institutes at Chennai, Kanpur, Kolkata and Faridabad.
 The activities of DGFASLI include mainly framing policies and plans, and executing the programmes
pertaining to safety, health and welfare of workers in industries
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Practice Questions
When was the National policy on Child Labour formulated?

1. 1984
2. 1985
3. 1986
4. 1987
Ans: Option 4
Which authority is responsible for carrying out inspections related to occupational safety and health issues. ?
1. The Directorate General, Factory Advice Service and Labour Institutes

2. The Central Labour Commissioner
3. Ministry of Human Resource Development
4. The Labour Welfare Committee
Ans: Option 1
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No questions were asked from this chapter in UPSC EPFO 2017
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Chapter 3 – Trade Union (Part 1)
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Phases of Trade Unions Movement in India
Pre-World War I Post-World War I Post-Independence
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 1860-The beginning of labour unrest in  1875-The first Factory Commission was 1890- N. M. Lokhande sponsored
India by indigo cultivators in Bengal. appointed. the first labour organisation in
 1875-Sarobji Shapurji made a protest in  1881-To improve the situation of workers in India, the Bombay Mill Hands
Bombay against poor working conditions India, the British government passed the Association
of workers Factories Act in 1881.
The most notable features of the trade union movement in this phase are that the movement was essentially led
by social reformers and not by workers, and that the unions which were operational in this phase were not unions
in the true sense.
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The first organised trade union in

The Russian Revolution of 1917  The International Labour Organisation
India, the Madras Labour Union,an
also greatly influenced the was formed in 1919 with India as the
association of textile workers, was
labour movement in India. founder member.
formed in 1918 by B. P. Wadia.
The agitation for legislation for trade Several unions were The Textile Labour Association
unions had begun under N. M Joshi, formed after this, Ahmedabad was formed in 1920 under
also called the “Father of Trade including the AITUC the leadership of Anusuya Ben
Union Movement” in India. (1920). Sarabhai and Shanker Lal Banker.
Cont. on next page
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This was followed by the Trade Disputes The Second World War broke
The Trade Unions Act was Act, 1929, which provided for ad hoc out in 1939 bringing
finally passed in the year Conciliation Board and Court of Enquiry economic and political
1926. for the settlement of trade disputes. turmoil.
1946-The Industrial Employment (Standing Orders) Act, 1946.

Objective-To bring uniformity in the condition of employment
of workmen in industrial establishments, and thus minimise
instances of industrial conflicts.
Phase I (1947 to Phase II (mid- Phase III (1980 Phase IV (1991 Phase V (2000
mid-1960s) 1960s to 1979) to 1991) to 2000) and beyond)
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Phase 1(1947- mid 1960s)
1949-The United Trade

Increase in the number of Establishment of 1954- Bharatiya
Union Congress (UTUC) was
industrial disputes, which INTUC in May 1947, Mazdoor Sangh (BMS)
formed under the
led to the enactment of with Sardar was formed under the
leadership of Mrinal Kanti
the Industrial Disputes Vallabhbhai Patel as its aegis of the Jan Sangh
Bose, a Marxist, with the
Act, 1947. first president. Party.
objective to create a
classless society and non-
political unionism.
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Phase 2(Mid 1960s – 1979)
During the late 1970s, He resorted to long

Employment slowed there was a major change Datta Samant rose as strikes, sometimes
down, inter-union in the growth of an influential trade overreaching economic
rivalries increased and independent employees’ union leader in this demands, bypassing
there was widespread unions and economic period. His approach legalistic struggle and by
industrial conflict unionism, mainly in the was revolutionary. significantly using
new capital intensive violence against
industries. opponent workers and
trade union centers.
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Phase 3 (1980- 1991)
It proposed to make several amendments in the Act, like a

The Trade Unions
minimum qualifying membership of 10 per cent of workmen
(Amendment) Bill was
(subject to a minimum of 10) employed in an establishment
introduced in the Lok Sabha
where a trade union is proposed to function, with a view to
in 1982.
reduce multiplicity of unions.
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Phase 4 (1991-2000)
• Economic reforms in India Regional trade union organisations affiliated

Workers’ training for adoption
were introduced in 1991. to regional political parties such as DMK,
of new technology and issues
related to the Voluntary AIADMK and MDMK in Tamil Nadu and the
• Advent of globalisation in Shiv Sena in Maharashtra also emerged
Retirement Schemes
India during this phase.
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Phase 5 (2000 and beyond)
Trade unions are also

Government opened up • Shift from formal to adopting practices to keep This phase is also
the economy for Foreign informal sector. pace with changes in witnessing increased
Direct Investments. • Unions are being vigilant technology, and are getting participation of
for any injustice being involved into supportive and women in trade
caused to employees developmental roles, thus unions.
moving ahead of their
traditional militant role.
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Concept Check
Who is known as Father of Trade union Movement of India?
Answer:- a) N.M. Joshi

b) Datta Samant
c) N.M. Lokhande
d) B.P. Wadia
Answer :- A
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Concept Check
Who was the First President of INTUC?
Answer:- a) Mahatma Gandhi

b) Datta Samant
c) Jawaharlal Nehru
d) Sardar Vallabhbhai Patel
Answer :- D
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Chapter 3 – Trade Union (Part 1)
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Functions of Unions in Modern Era
Communication Training
Welfare activities Research
Education Social work
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Methods of achieving objectives
Legal Enactments/
Mutual Insurance Collective Bargaining Direct Action
Political Actions
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Mutual Insurance Collective Bargaining Legal Enactments/ Political Actions Direct Action
In exchange of fees that A common fund to which every Webbs referred to this
members pay, unions render member is required to contribute, method of mutual insurance
certain services to them and the fund thus created is to be adopted by trade unions as a
used for schemes for mutual “friendly society”
benefit.
Advantages of mutual insurance
Helped in preventing unemployed Moral influence in negotiating with

Results into commitment and loyalty
members from accepting employment employers, thus enhancing bargaining
towards the union.
with wages below standard rate. power of the union.
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Under this method, trade union

An individual worker is not as Due to this reason, collective
representatives bargain with the
influential and effective as a group bargaining came to be recognised
employer over terms and conditions of
in negotiating the terms and as a useful method adopted by
employment like wages, hours of work,
conditions of work. unions to achieve their objectives.
incentives, working conditions, etc.
Union representatives bargain with the employer and enter into an

agreement, which is known as a collective agreement; such an
agreement may deal with a single issue, or may include multiple issues
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Unions send their representatives to legislatures to present the Since the time of their inception, trade unions in
views and concerns of workers and convince the political leaders India have sought to affiliate themselves to one
to enact laws for securing better working and living conditions. political party or the other.
 AITUC is affiliated to the Communist Party of India.

 INTUC is associated with the Indian National Congress.
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Direct action refers to exerting pressure on This method must be avoided and used only as
employers by resorting to tactics like strikes, the last resort as it leads to loss of productivity
boycott, blockade, etc. and other repercussions.
Some of the methods of Direct action are:-

 Strike refers to collective withdrawal from work by the members of a union.
 Picketing is an action taken by union members to prevent employees from attending work after a strike has been
called.
 Boycott refers to the rejection by workers of specific products or services provided by the employer.
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Concept Check
Under this method, trade union representatives bargain with the employer over terms and conditions of employment
like wages, hours of work, incentives, working conditions, etc. Which method is these?
a) Mutual Insurance
b) Direct Action
c) Legal Enactments
d) Collective Bargaining
Answer :- D
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A union whose membership may cover workers employed in many industries, employments and crafts is known as?
a) Industrial Union
b) General union
c) Craft Union
d) Regional-cum- industry level union
Answer- B
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Chapter 4--> Trade Unions ( Part 2)
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Criteria for a trade unions to be recognised as Central Trade Union Organisation in India
Their affiliates must be spread over + They must have a minimum of 5

at least 4 States and in 4 industries lakh (i.e., 0.5 million) members
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All India Trade Union Congress
 First trade union federation in India

 Founded in the year 1920 at Bombay, with Lala Lajpat Rai as its first president.
 Up to 1945, Congressmen, socialists and communists worked under the flag of AITUC.
 Subsequently the union split up on account of difference in political ideologies.
 Since then, it has been associated with the Communist Party of India.
 AITUC has been a key player in the labour movement and has also played a crucial role in
India’s struggle for freedom.
 The membership of AITUC is about 3.6 million.

 The unions affiliated to it are from the organised sector like textile, engineering, coal, steel, road transport and electricity
board, as well as from the unorganised sector, such as beedi, construction and head-load workers, anganwadi, local
bodies and handloom and agricultural workers.
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All India Trade Union Congress
Objectives of AITUC
Socialise and nationalise the means of

Establish a socialist state in India.
production, distribution and exchange
Improve the economic and social conditions of Protect and further the interests, rights and
workers. privileges of workers in all matters.
Promote workers’ right to freedom of speech, Abolish political/ economic practices based on
freedom of press, freedom of association, caste, creed, community, race or religion, and
freedom of assembly, right to strike and right to fight against all forms of social oppression
to work. and injustice.
Hind Mazdoor Sabha
 The Hind Mazdoor Sabha (HMS) was founded in Calcutta (now Kolkata) during a trade
union conference from 24th to 26th December 1948, with R.S. Ruikar as the first
president.
 The key factor behind the emergence of this union was the realisation that the trade
union movement must be freed from misuse of unions by political parties in meeting
their own interests.
 Affiliated to the International Trade Union Confederation (ITUC)— which represents

175 million workers in 153 countries and territories and has 308 national affiliates-
the HMS has been functioning as an independent and democratic trade union centre,
free from the pulls and pressures of political parties, employers and the government.
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Hind Mazdoor Sabha
Objectives of HMS
To build the trade union movement as an

To make endeavours towards having a single
effective instrument of the country’s socio-
unified trade union movement.
economic transformation with social justice.
To promote industrial democracy, workers’ To ensure all-round development of workers

education and cooperative movement. and their families.
HMS had a membership of 3,342,213 persons in 2002 (13 per cent of the total trade union membership in the country).
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Indian National Trade Union Congress
 The Indian National Trade Union Congress (INTUC) is the trade union wing of the Indian
National Congress.
 It came into existence on 3rd May 1948, after a resolution to this effect was passed by
the central board of the Hindustan Mazdoor Sevak Sangh on 17th November 1947.
 Many attribute the birth of INTUC as a historic necessity to voice the genuine demands
of the working class, keeping in view national interest as well.
 Guided by Gandhian Sarvodaya philosophy, and associated with ILO since 1949,it is
inspired by the idea of transforming its beliefs with changing times, which can enable it
to tackle the problems and contemporary issues related to workers.
 These include: promoting egalitarianism in the society; community welfare; maintaining
and strengthening links with the unions of other countries having the same employer, as
in the case of multinational firms; focus on improving the working conditions and the
general quality of life for workers; and training and research for workers.
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Indian National Trade Union Congress
Objectives of INTUC
Organise the society in such manner as to

Secure increasing association of workers
ensure full employment and the best in the administration of industry and
utilisation of its manpower and other
their full participation in its control.
resources.
Establish an order of the society that Place industry under national ownership
promotes all-round growth and development and control in suitable form in order to
of its individual members and eliminates realise the aforesaid objectives in the
exploitation and inequality. quickest time.
As per the provisional statistics of the Ministry of Labour & Employment, the membership figure of INTUC stood at 3.9
million in 2002.
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Bharatiya Mazdoor Sangh
 Founded on 23rd July 1955 under the leadership of Dattopantji Thengdi.

 BMS was not the result of any split in the existing trade union organisations, unlike
in the cases of almost all other unions. Hence it had the formidable responsibility of
building its organisational structure from the grassroot level.
 BMS was formed under the aegis of the Jan Sangh Party, presently known as the
Bharatiya Janata Party.
 BMS does not believe in class concept and is non-political in nature.

 The grounded philosophy of this union is that a trade union can exert influence on
management and policies of government only when it adopts the principle of non-
political trade unionism.
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Bharatiya Mazdoor Sangh
Objectives of BMS
 Inculcate in workers a sense of

 Educate workers through seminars,
responsibility towards their industry
lectures, training programmes, etc.
and nation
 BMS has established the Bharatiya  BMS has set up the ‘Paryavaran Manch’ in
Shram-Shodh Mandal, a research- 1995 to pragmatise the activities of trade
based institution in 1980 to promote unions, earlier limited to issues related to
objective studies based on impartial wages, bonus etc. It is also engaged in
examination of facts and developments multiple activities directed towards the
in the industrial field. upliftment of the working class.
Membership
As of the year 2002, the total membership of BMS stood at 62,15,797, and the union claims to have presence in all
the States of India, with more than 5,000 affiliate unions in all the 44 industries.
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Self-Employed Women’s Association
 It was founded in 1972 by Ela Bhatt, a lawyer and union organiser. SEWA grew out of the
Textile Labour Association Ahmedabad, India’s oldest and largest union of textile
workers.
 SEWA is a trade union of women in the unorganised sector.
 It is guided by the Gandhian principles of satya (truth), ahimsa (non-violence),

sarvadharma (integrating all faiths) and khadi (propagation of local employment and self-
reliance).
 The SEWA movement is an amalgamation of 3 movements: the labour movement, the

co-operative movement and the women’s movement.
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Objectives of SEWA
 Organise women workers for full

 Promote self-reliance among women.
employment.
 The union is open for membership to self-employed women workers from all over India.
 The membership fee is 5 per year.
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Structure of SEWA
 The union is governed by a 2 tier level of elected representation.
 The members of each trade elect their representatives in the ratio of 1 representative per 100 members. These
representatives then form the trade council (Pratinidhi Mandal). In addition, and parallel to the trade council, are
the trade committees (Dhandha Samiti) in each trade.
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Concept Check
SEWA was founded by____________ in _________
Answer:- SEWA was founded by Ela Bhatt in 1972.
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Concept Check
INTUC is guided by __________ philosophy of Gandhiji.
a) Sarvodaya
b) Non Violence
c) Satyagraha
d) Non- Cooperation
Answer :- A
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Concept Check
State True or False

SEWA is governed by a 3 tier structure of elected representations.
False, SEWA is governed by 2 tier structure of elected representations.
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UNIONISATION OF WORKERS AND UNION MEMBERSHIP
The most authentic source of the number of unionized workers in India is the General Verification of
membership of trade unions affiliated to CTUOs, and is an exercise undertaken by the Chief Labour
Commissioner (CLC) (Central), on the directions of the Ministry of Labour & Employment.
 General Verification of CTUOs was earlier conducted in 1980, followed by another in 1989, and the latest
in 2002.
 Results of the same were published by the Ministry of Labour & Employment in 1985, December 1996 and
January 2008 respectively.
 As per the latest results, Bharatiya Mazdoor Sangh is leading the list with maximum number of
membership.
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PROBLEMS OF TRADE UNIONS
1. Absence of any recognition process for unions
 The Industrial Disputes Act, 1947 does mention the term “recognised unions”, but it does not
prescribe any procedure for recognition.
 The Trade Unions Act, 1926 also does not address this issue.
Bengal ka
Andha
 Except for Andhra Pradesh, Gujarat, Madhya Pradesh, Maharashtra, Rajasthan and West Bengal, Mad
there are no State enactments regarding the recognition of trade unions. Mahan
Raja Gajraj
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2. Leadership
 Most of the unions have affiliation with political parties and union leaders are often used as means by
these parties to their political ends.
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TYPES OF LEADERS
EXTERNAL LEADERS INTERNAL LEADERS
 An external leader is not a full time employee of the

 An internal leader is a full time employee of the
organisation, and hence does not emerge from
organisation, and emerge from amongst the workers.
amongst the workers. They work on honorary basis.
Advantages
Advantages
 An external leader has better knowledge of the trends
 Internal leaders have first-hand experience of day-to-day
and practices in other organisations in the industry,
problems faced by workers, and are available and more
and therefore may prove to be more effective on the
easily accessible to workers.
bargaining table.
Disadvantages Disadvantages
 His involvement with plant-level problems would be  They are not so politically strong, so they may not be
much less, as he is not on the shop floor to understand able to provide advantage in terms of policy or
the intricate issues applicable to a particular plant. administration actions.
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3. Multiplicity of Unions and Inter-Union Rivalry
 Every union tries to impress upon the workers that it is their true representative, and in an attempt to increase
membership and gain power, each tries to lure the members of other unions.
 Thus there may be inter-union rivalry which ultimately weakens the trade union movement as a whole.
 Another problem that arises out of multiplicity of unions at plant-level is that the management may face problems in
identifying which one would be the representative union of workers for the purpose of collective bargaining.
 Rift amongst unions themselves may put workers at disadvantage when it comes to pressuring the management to
meet their demands.
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4. Declining Membership
 With increasing demand for skilled workers, especially in the IT sector, a new class of managers and skilled workers
is being recruited in business firms with lucrative compensation packages and offers for frequent promotions on
performance or merit basis. These workers place individual interest at a higher level than group interest; they do not
prefer to be members of trade unions
 Sub-contracting has emerged as a typical employment practice, whereby workers are no longer in any employment
relationship, rather they are involved in a contractual relationship.
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5. Low Finances
Trade unions in India are plagued with the problem of a weak financial base.
Reasons:- 1. Low membership fees due to inter rivalry.

2. Low membership fees due to meagre wages of workers.
3. Default in paying membership fees.
 This leads to increased dependence of these unions on national-level trade unions to which they are affiliated, which are
in turn affiliated to political parties; thus indirectly they get controlled by political parties.
Check off system

Under this system, subscription dues of a worker are directly deducted from his/ her pay by the employer, before
disbursement. Thus the amount of union subscription deducted is given directly to that union in favor of which the
member worker has given written consent for deduction of subscription.
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Women in Trade unions
Some of the achievements of women in Trade unions

a. In the 1960s, Anusuiya Ben was the union leader of Calico Mills.
b. Later, Ela Ben organised women in the unorganised sector to form SEWA.
c. In a similar manner, Jaya Arunachalam organised women working in the unorganised sector in 4
Indian southern States under the Working Women’s Forum.
 The bitter reality is that women’s membership is still low.

Reasons for the same are-:
a. Women are predominantly (as high as 96 per cent) engaged in the informal sector, where wages and
working conditions are lower than the formal sector and there is no clear employer-employee
relationship.
b. Sometimes restrictions on work timings and nature of work (for example, night shifts or work
involving hazardous conditions) do not allow for employment of women workers in many jobs.
c. The culture of mainstream trade unions that does not sufficiently address the needs and problems of
working women, like child care, sexual harassment, etc.
d. Family responsibilities
e. Socio-cultural inhibitions
f. Male dominated culture of unions
g. Sub-contracting
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Concept Check
Which trade union organisation has the highest membership as per 2008 General Verification?
a) AITUC
b) INTUC
c) BMS
d) HMS
Answer :- C
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Concept Check
An _______________ is a full time employee of the organisation, and emerge from amongst the workers.
a) External Leader
b) Political Leader
c) Internal Leader
d) None of the above
Answer :- C
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Employers’ Organisations
Employers’ organisations are a formal body of employers, from the same or from different sectors, set up with the
objective to champion and further the interest of employers, represent them at various fora, and advise them to improve
the conditions of conducting trade and maintaining harmonious industrial relations.
History
 The first chamber of commerce, known as the Calcutta Chamber of Commerce, was started by an English
businessman in 1833 at Kolkata.
 The first Indian Chamber of Commerce, named the Native Merchants’ Chamber of Coconada, was set up at Coconada,
Andhra Pradesh, in 1885.
 After 2 years the Bengal National Chamber of Commerce and Industry was established at Kolkata
 The Council of Indian Employers (CIE) is the umbrella organisation for Indian employers. It was formed when the
Employers’ Federation of India (EFI) (established in 1933) was amalgamated with the All India Organisation of
Employers (AIOE) in 1956.
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Some of the Notable Employers’ Organisations
The National
The Associated The Federation of
The Employers’ Association of
Chambers of Indian Chambers of
Federation of India Software and Services
Commerce Commerce and
(EFI) Companies
(ASSOCHAM) Industry (FICCI)
(NASSCOM).
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Associated Chambers of Commerce and Industry of India
Bullet Points
 India’s apex industry body, was established in 1920

 membership of over 0.2 million companies and professionals across the
country.
 The services it provides to its members include offering expert advice,
analysis of legislations, organising workshops, seminars for generating
awareness and facilitating interaction, etc.
 The objectives of ASSOCHAM are to promote trade by representing
industry at various national and international fora; enhancing
competitiveness; and disseminating information about national and
international policies.
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Federation of Indian Chambers of Commerce and Industry
Bullet Points
 Is the largest and oldest apex business organisation in India.
 Founded by G.D. Birla and Purushottam Das Thakurdas in 1927.
 A non-government, not-for-profit organisation.
 Membership from various sectors including manufacturing, gems and jewellery,

chemical, mining, power and retail
 Main objectives are: to enhance efficiency of Indian industry; to promote global

competitiveness of its members; and to expand business opportunities both in
domestic and foreign markets.
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Employers’ Federation of India
Bullet Points
 The Employers’ Federation of India was established in 1933 with the purpose of
defending, promoting and championing the interests of employers.
 The Federation represents employers concerns and views at various tripartite fora of
the Ministry of Labour & Employment, such as the Standing Labour Committee, Indian
Labour Conference and other industry committees and sub-committees at State and
national levels.
 EFI represents Indian employers at the international level as a member of the

Confederation of Asia-Pacific Employers and IOE.
 The principal goals and objectives of the Employers’ Federation of India include
regulating and maintaining harmonious relations between employers and workers;
promoting and protecting the legitimate interests of employers; collecting and
disseminating information affecting employers; supporting employment generation.
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National Association of Software and Service Companies
Bullet Points
 The National Association of Software and Services Companies is an association of
companies belonging to the IT and BPM industries in India.
 It was set up in 1988 with the objective of facilitating and promoting trade in software
and services.
 NASSCOM is engaged in several initiatives like

a) Policy advocacy in collaboration with the Government of India
b) Membership engagement including mentoring small and new members,
c) Development initiatives like research and organising forums,
d) Global trade development etc.
 Its mission is to establish India as a centre for innovation and professional services; to
increase India’s skill pool; and to use Information and Communication Technology for a
balanced and inclusive growth.
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RECOMMENDATIONS OF THE SECOND NATIONAL COMMISSION ON LABOUR
Only that union which has at least 10 per cent members amongst the workers of a unit should have the right to represent
individual workers.
A worker who is not a member of any trade union will have to pay an amount equal to the union subscription rate, which
may be credited to a statutory welfare fund.
Craft-based or caste-based unions shall not be allowed to be registered.
Check-off system must be made compulsory for an establishment employing 300 or more workers. Recognition of any
union should be on the basis of check-off system.
Recognition once granted should be valid for a period of 4 years.
Organisation of the Chief Labour Commissioner (Central) should be responsible for verifying the membership of unions
affiliated to Central Trade Union Organisations for the purpose of giving representation in national and international
conferences and committees, as also of unions for the purpose of recognition under the Code of Discipline.
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Concept Check
As per report of Second National Commission on Labour, Recognition once granted to Trade Union shall be valid for
atleast __________ years.
a) 2
b) 3
c) 4
d) 5
Answer :- C
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Concept Check
 The ___________________ is an association of companies belonging to the IT and BPM industries in India.
a) EFI
b) FICCI
c) ASSOCHAM
d) NASSCOM
Answer :- D
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No Question asked from this chapter in UPSC EPFO 2017
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Chapter 5- Collective Bargaining
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Collective Bargaining
 Collective bargaining is voluntary and formal by nature, and involves

of 2 parties negotiating for work, working conditions or terms and
conditions of employment.
 The term ‘collective bargaining’ was first used by the economic

theorist Beatrice Webb in Britain in 1891
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Characteristics of Collective Bargaining
The underlying objective of collective bargaining is

It is a process. always to resolve the issues between labour and
management through a dialogue.
Negotiations form the basis of collective bargaining. The

It is a bipartite process involving 2 parties. process involves mutual ‘give and take’ between labour
and management through discussions
Cooperation and understanding between management

It is a collective activity. and labour are the basic requirements for the success of
collective bargaining.
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Importance Of Collective Bargaining
For Employers For Workers For Industry For Nation
Wages in the organized sector in India are decided mostly by collective bargaining.
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For Employers
A chance to
A means to Belief in A means to A mechanism to
understand
resolve issues participative increase improve public
workers’
peacefully management productivity image
perspective
The type of bargaining in which the

workers’ demands are agreed upon in
return for increase in efficiency on their
part is called productivity bargaining.
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For Workers
Strengthening the
Unity/ Solidarity position of trade Improved quality
Equal status Improved facilities
among workers unions as of work-life
bargaining agents
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For Industry
Facilitation of Continuous
Means to industrial
modernisation and production and
peace
restructuring profits
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For Nation
Establishment of
Strengthening of the
Increase of productivity democracy in industrial
economy
relations system
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Practice Questions
1) The term ‘ Collective Bargaining’ was first used by____________

1. Webb
2. Hoxie
3. Colie
4. Thomson
Ans: Option 1
2) Collective bargaining is a process of mutual settlement involving _____ parties.
1. 2
2. 3
3. 4
4. 5
Ans: Option 1
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Levels of Collective Bargaining
Unit/ Plant-level Enterprise-level Industry-level National-level Economy-level
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Unit/ Plant-level
The agreement
between TISCO and
Negotiations that take
Tata Workers’ Union in
place at unit/ plant-
1956 was the first unit-
level
level agreement in
India.
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Enterprise-level
Such negotiations take place between They affect all workers

management and enterprise-level union across all the units of the
representatives. enterprise
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Industry-level
An advantage of multi-
Industry or There may be employer bargaining is that the
sector-level involvement of one or collective agreements at
negotiations more employers industry level standardise
cover various organisations and trade wages and working conditions
companies in an union federations in and hence eliminate wages
industry. such bargaining. from competition.
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National-level
National-level At national level, Examples of sectors

negotiations usually collective bargaining it is common are
take place in the involves more than 1 iron and steel,
industries or sectors national level trade union postal department,
which are controlled by federations and banks, ports and
the Government. employers’ organisations. docks, etc.
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Economy-level
May be a bipartite or tripartite form

of negotiation between union
An extension of national- confederations, central employer
level bargaining. associations and government
agencies that serves the objective of
fulfilling macroeconomic goals.
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Process of Collective Bargaining
Pre-bargaining preparations by
Bargaining Contract administration
management and unions
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Pre Bargaining Preparations Bargaining Contract Administration
Pre Bargaining Preparations
Preparations by management Preparations by workers
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Preparations by management
1. A charter of demands presented to the management by workers.
2. Management makes a careful study of the charter and decide the objectives for collective bargaining and the gains
expected from this process.
3. The objectives may be to enhance productivity, to increase production level, to improve relations with workers, to
gauge workers’ attitude towards management actions, and so on.
4. A team for negotiation comprising members with expertise in different areas must be finalised. It may include people
like the human resource manager, an expert in industrial relations and labour legislations, a financial expert, production
in-charge and others as necessary.
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5. Management must also try to identify if there is any ‘hidden agenda’ of workers that they may bring up at the
negotiation table. Management must collect figures on production, sales, loss by wastage, costs incurred, relevant
expenditures, information related to absenteeism, grievance issues, suggestions, turnover and disciplinary actions from
different departments.
6. Management must gather data on practices prevalent in industry on the issues present in the charter of demand and
other factors that may impact the bargaining process. Proper ‘homework’ by management is essential.
7. Since it is a bargaining process whereby both the parties are expected to ‘give up’ something to ‘take’ something,
management must also try to gauge the extent to which workers are willing to accommodate and ‘give up’ on each of the
demands.
8. Though considered to be ‘not very ethical’, many companies resort to cooptation to get the inside story of the other
party.
Cooptation refers to the situation when management tries to influence one or more of the union member( s) by offering
them promotion or other benefits, in exchange for information about union strategies or for influencing workers, so as
to get advantage during the negotiation process.
Preparations by workers
1. While preparing the charter of demands, trade union leaders must ensure that it includes the interests of all
categories of workers, including women workers, skilled workers, unskilled workers, etc.
2. The demands must be related to real issues, rather than those created by union leaders in order to simply prove that
they are the ‘real’ leaders of workers.
3. They must collect information from internal as well as external sources in order to justify their demands and
pressurise the management for accepting such demands. Workers and their unions must also try to find out the level to
which the management would be ready to bend and make concessions.
A term called intra-organisational bargaining is used for a situation when there is a need for bargaining within a
worker body due to differences between various worker-groups (or even within the existing groups in management).
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While management analysis demands
Demands that can be Demands that can be partly Demands that must be
accepted unconditionally accepted rejected
 Management may accept some demands partly and in return may put forth its demands on workers.
 Another possibility may be that it accepts some demands and buys time to consider others without direct
refusal.
 Outright refusal may result in problems as workers may resort to pressure tactics like strike.
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Types of Bargaining
Distributive Bargaining Integrative Bargaining Attitudinal structuring Good faith Bargaining
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DISTRIBUTIVE BARGAINING
 Distributive bargaining involves bargaining over economic issues like wages, salaries and bonus.
 Here one party gains at the cost of the other party, so it results in a win-lose situation and hence is
a zero-sum game.
 Such a situation generates negative feelings in the losing side and may even breed mistrust and
unhealthy labour-management relations.
 This type of bargaining is also known as conjunctive bargaining.
INTEGRATIVE BARGAINING
 This type of bargaining involves a situation in which either both the parties have something to gain,
or at least none of the parties loses anything.
 Thus it is a win-win situation for both.
 For example, during economic slowdown management may demand increase in working hours in
return for job security.
 This type of bargaining is sometimes known as cooperative or interest-based bargaining.
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Attitudinal Structuring
 Attitudinal structuring means changing the attitudes and beliefs of workers and management regarding each other, so
as to create an environment of mutual trust.
This is required in the following situations:

 When it is a lose-lose situation, i.e., when none of the parties is ready to accommodate the interests of the other party.
In such a situation, negotiations come to a dead end and resultantly both the sides have to lose.
 When there is a win-lose situation that generates bitterness in the losing party.
Under both the situations the involved parties need to change their attitude in order to avoid generation of any hostility.
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Good Faith Bargaining
 The principle of good faith bargaining is that both the parties meet each other with the intent to constructively
communicate with each other over the issues of dispute and make honest attempts to arrive at a collective
agreement.
 There is a readiness to make concessions, though it neither requires any party to shelve its own interests, nor does it
compel any party to necessarily agree to a proposal, nor does it require any of the parties to make any undue
concession.
The principle of good faith is violated when:

a) any of the sides indulges in surface bargaining, in which the meeting is simply an eye-wash without any intention of
reaching an agreement, or
b) the parties involved indulge in any unfair labour practice during negotiation and while administering the contract, or
c) the employer refuses to meet with union representatives, or
d) the employer refuses to provide any information to union, that can be used for holding discussions and
negotiations.
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The parties must understand To achieve this objective they The management team and union
that they have come together must administer the contract representatives must make all the
to reach an agreement for properly. The process of employees aware of the terms and
improving the existing administering is included in conditions in the contract, so that everybody
conditions. the contract itself. may understand what is expected of them.
Collective bargaining agreements must

Otherwise methods like Efforts must be made by
contain formal procedures for resolving
conciliation, arbitration or workers and management to
grievances that may arise over the
ultimately adjudication may resolve these grievances at
interpretation and application of the terms
be resorted to. lower levels.
of contract.
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Practice Questions
The agreement between TISCO and Tata Workers’ Union in 1956 was the first ____________ agreement in India.
1. Unit level
2. Industry level
3. National level
4. Economy level
Ans: Option 1
Distributive bargaining is the another name for_______________ bargaining.
1. Integrative bargaining
2. Conjuctive bargaining
3. Co-operative bargaining
4. Interest based bargaining
Ans: Option 2
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Prerequisites of Collective Bargaining
Legal and Political Existence of Strong

Attitudinal Framework
Framework Trade Unions
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Legal and Political Framework Attitudinal Framework Existence of Strong Trade Unions
There must be a supportive Other measures to promote The Industrial Truce Resolution of
legislation system to promote collective bargaining 1962 has also influenced the
the use of bilateral negotiations • Schemes for workers’ growth of collective bargaining as
as a means to resolve conflicts. education, it required management and
• tripartite conferences, workers to cooperate with each
• Code of Discipline, other in every possible way and
• Formation of joint management resolve their disputes in a peaceful
councils, works committees and manner through mutual
shop councils, and discussions, conciliation and
• The existence of grievances voluntary arbitration.
redressal machinery.
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Employers and trade Management will indulge in Style of management is another

union representatives bargaining at an equal level if it factor affecting the willingness to use
must form a has respect for workers’ rights. collective negotiations; negotiations
supportive attitude Existence of mutual trust is thus have better chances to be successful
for negotiating with an essential ingredient in the if management believes in
each other. bargaining process. participative style.
It is very essential that both the sides There is a need for proper coordination
keep a flexible attitude and consider within and between different levels of
the concerns of the other side with an employers’ organisations and union
open mind. federations for successful implementation
of agreements.
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For collective bargaining to be successful there must be a strong trade union that can put up the demands of workers
emphatically and exert pressure on the employer to accept their demands.
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Hindrances to Collective Bargaining
Multiplicity of Lack of Legislation on Informalisation of

External Leadership
Unions Recognition of Trade Unions Economy
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Lack of Legislation on Recognition of

Multiplicity of Unions External Leadership Informalisation of Economy
Trade Unions
The problem of multiplicity of unions Moreover, multiplicity gives rise Workmen in a unit or plant
weakens their bargaining power. to rivalry between unions, which may be members of
There can be numerous small unions divides their power, and different unions. When a
existing in an establishment, but management stands at an collective agreement is
none of them may actually be strong advantage in such a situation. signed, it is assumed that all
enough to pressurise the employer The already weak workers’ group the interested parties are
to accept workers’ demands. loses its strength further. participating in it and that
they have consent in the
agreement.
Every union, irrespective of whether or not it represents the majority, is supposed to be an interested party. Now, workmen
may not choose to be the members of any union, and one or more unions may, for reasons of their own, may also not like to
be a part of the settlement.
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Trade Unions
• According to the Trade Unions • Most of the trade unions are

Act, 1926 half of the total affiliated to political parties and
number of office bearers of any • Even employers may not be many a times leaders of these
union can be outsiders. very forthcoming in negotiating parties assume leadership
• An outsider cannot understand with a person who is hardly positions in the unions.
the problem as a factory aware of the day-to-day • Employers may be averse to the
worker would, and so such a happenings in the plant or idea of any person from a
person may not be as effective workplace. political party becoming a
while negotiating with union leader as this would
employers. amount to political interference
in the activities of the
establishment.
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Trade Unions
The Trade Unions Act, 1926 Although the provision relating

In the absence of any proper
provides only for the procedure to recognition of trade unions
statute for recognition of a
for registration of unions. There was sought to be incorporated in
bargaining agent, employers
are no provisions in either the the Act by introducing Chapter
may refuse to bargain with a
Trade Unions Act, 1926 or the IIIA through the Trade Unions
particular trade union and
Industrial Disputes Act, 1947 (Amendment) Act 1947, but it
select the one of its ‘choice’ for
regarding recognition of trade has not yet been put into
negotiations.
unions as bargaining agents. operation.
Unless the process of collective bargaining is given a

strong support in the form of statutory provisions, it will
be difficult to popularise the use of this process in
resolving disputes
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Trade Unions
The proportion of informal jobs has been Since workers in the unorganised (or informal) sector
increasing in both public and private sector do not have a registered trade union, they cannot
enterprises in India. reap the benefits of collective bargaining.
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Recommendations of The Second National Commission Of Labour
Demand for bonus in excess of prescribed annual bonus, either on the basis of profits earned in the accounting year or on
the basis of production or productivity will be determined by collective bargaining.
The vital role of trade unions in collective bargaining must be duly recognised in any institutional arrangement.
Every worker must be ensured the right to organise and form trade unions and the right to collective bargaining.
A comprehensive Industrial Relations Law is proposed, that will contain provisions for collective bargaining on issues
relating to finances, wage structure, fringe and other benefits, bonus, housing, medical facilities, overall recruitment and
personnel policies and norms and resolution of disputes pertaining to the areas of collective bargaining.
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Practice Questions
Which of the following is not a part of Attitudnal structuring of parties engaged in Collective Bargaining?
1. Rigid Attitude
2. Mutual Trust
3. Cooperation
4. Support towards each other
Ans: Option 1
Which of the following is not a hindrance in collective bargaining process?
1. Multiplicity of Unions
2. External Leadership
3. No law to register trade union
4. Informalisation of economy
Ans: Option 3
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Concept Checks
Fill in the blanks
1) In __________ bargaining both the parties involved may have something to gain.
2) __________ -level bargaining is an extension of national-level bargaining
3) Attitudinal __________ refers to changing the attitudes and beliefs of workers and management regarding each other.
4) Steps involved in bargaining process are __________, bargaining and contract administration.
5) __________ in the organised sector in India are decided mostly by collective bargaining.
Answers
1) Integrative
2) Economy
3) Structuring
4) Preparation
5) Wages
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No questions were asked from this chapter in UPSC EPFO 2017
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Chapter 6- Industrial Discipline & Grievance Procedure
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Industrial Discipline
 Employees must not only work together as a team to achieve organisational success, but also adhere to
the rules and regulations of the organisation and conduct themselves in accordance with the standards of
acceptable behaviour.
 Discipline refers to the process of systematically conducting of business by the organisational members
who regulate their behaviour in accordance to the established rules and norms of the organisation.
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Nature of Discipline
 Negative discipline is somewhat

traditional in approach, under which
employees adhere to rules and
regulations in fear of punishment.
 Positive discipline implies discipline

without punitive actions.
 It involves creation of an atmosphere in
the organisation whereby employees
willingly conform to the established rules
and regulations
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Indiscipline
 Indiscipline refers to such violation of or non-conformity to formal or

informal rules and regulations in an organisation.
 Causes for indiscipline are:

 unfair practices by management (like irregularities in payment of wages,
discrimination in wages, ineffective handling of grievances, etc.);
 policies and procedures of the organisation (like non-compliance with
wage legislations and promotional and transfer policies);
 absence of code of conduct;
 lack of effective leadership;
 communication barriers; and
 politicised trade unionism.
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Misconduct
 Misconduct is disobedience of some established and defined rules

and breach of discipline on the part of an employee; it is violation
of rules.
 Typical examples of misconduct by an employee would include

habitual absenteeism and taking or giving bribes.
 An act of misconduct by an employee is prejudicial to the interest

of the employer and is likely to damage its reputation.
 Such acts can be performed even outside the premises of an

establishment and beyond duty hours
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Misconduct
As per Schedule I of the Industrial Employment (Standing Orders) Act, 1946, relating to Model Standing Orders,
the following acts and omissions on the part of workers shall be treated as misconduct:
(a)wilful insubordination or disobedience, whether alone or in conjunction with others, to any lawful and reasonable
order of a superior
(b) theft, fraud or dishonesty in connection with the employers’ business or property
(c) wilful damage to or loss of employers’ goods or property
(d) taking or giving bribes or any illegal gratification
(e) habitual absence without leave or absence without leave for more than 10 days
(f) habitual late attendance
(g) habitual breach of any law applicable to the establishment
(h) riotous or disorderly behaviour during working hours at the establishment or any act subversive of discipline
(i) habitual negligence or neglect of work
(j) frequent repetition of any act or omission for which a fine may be imposed to a maximum of 2 per cent of the wages in
a month
(k) striking work or inciting others to strike work in contravention of the provisions of any law or rule having the force of
law.
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Handling Discipline
 Discipline implies obedience, orderliness and maintenance of proper subordination on the part of employees.
 Employees who cannot be self-motivated to maintain such discipline may require some degree of extrinsic disciplinary
action in the form of penalty or punishment.
 Article 311 of the Constitution of India puts limitation in the matter of award of major penalty or dismissal, by which no
person who is a member of a civil service of the Union or on all-India service or a civil service of a State can be dismissed
except after an enquiry that informs him of the charges against him and given a reasonable opportunity of being heard in
respect of such charges.
 Holding of disciplinary proceeding is a necessary pre-condition to impose any penalty.
Vigilance means watchfulness and covers all kinds of deviations from standards of integrity as well as improper exercise of
administrative discretion, nepotism, favouritism and conduct unbecoming of a public servant.
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Some Important Principles
Principle of natural justice: Natural justice in common sense means “that which is founded in equity, in honesty and
right.” The main ingredients of natural justice are:
 Nemo judex in causa sua: This means that no one should be made a judge in his own cause or the rule against
bias.
 Audi alteram partem: This means “Hear the other side”. In other words, this pertains to the rule of fair hearing
or the rule that no one should be condemned unheard.
 The principle of natural justice is firmly grounded in Articles 14, 21 & 311 of the Constitution of India.
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Some Important Principles
 Principle of impartiality or consistency: This principle implies that under identical situations where even the
extenuating circumstances are alike, there should be no marked difference in the action taken.
 Principle of impersonality : The disciplinary authority should not have a sense of elation or triumph or sadistic
pleasure when a recalcitrant or delinquent employee is brought to book.
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Practice Questions
______________ is disobedience of some established and defined rules and breach of discipline on the part of an employee;
it is violation of rules.
1. Indiscipline
2. Misconduct
3. Positive Discipline
4. Negative Discipline
Ans: Option 2
Nemo judex in causa sua means

1. No one should judge his own case
2. Hear both the sides
3. Punishment be given ex parte
4. Court should not be biased or partial
Ans: Option 1
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Steps In Disciplinary Procedure
Complaint and Consideration of Suspension Pending

Issue of Chargesheet Enquiry
Preliminary Enquiry Explanation
Appeal Order of Punishment Holding of Enquiry
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Complaint and Preliminary Enquiry
The disciplinary procedure The management must thereafter

must be initiated by a depute a responsible officer of the
complaint against Before starting the process of company to enquire into the
indiscipline of the employee discipline it is essential to hold a misconduct. On examining both
concerned (also regarded as preliminary enquiry to know if a sides of the case, the enquiry
the “charged officer”) prima facie case of indiscipline and officer must ascertain if there is a
adverse to the interest of the misconduct exists or not. prima facie case for chargesheet,
company. in which case, the accused must be
chargesheeted.
• Thus the preliminary enquiry report of the
complaint must indicate grounds as to whether
there is substance in the complaint, calling for
If the offence committed
disciplinary action.
is only of minor
• When an employee is alleged to have committed
magnitude, the employee
any of the offences mentioned in the standing
may be excused or given
orders or service rules or under common law, the
warning orally or in
departmental manager must make a report,
writing.
indicating action recommended.
Issue of Chargesheet
Once the prima facie case of misconduct A chargesheet can be issued by the Appointing Authority
on the part of the concerned employee is or authority higher than the Appointing Authority or
established, the management should Disciplinary Authority (DA) or by an authority senior in rank
proceed to issue a chargesheet to him. to the concerned employee, with the specific approval of
the Appointing Authority or Disciplinary Authority.
• A chargesheet is merely a notice of the charge on the employee and provides the
employee with an opportunity to explain his conduct; therefore chargesheet is
generally known as a ‘show cause notice’.
• It needs to be drafted in a plain and simple language which can be understandable

easily by the employee; charges also need to be specific, with a separate charge for
each allegation.
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Consideration of Explanation
• On receipt of the written statement of • In case the reply is found to be satisfactory, there is no
defence of the charged officer against the need to proceed with the disciplinary case and the
chargesheet served, the explanation chargesheet can be withdrawn on the basis of facts
furnished should be considered by the showing innocence of the employee.
Disciplinary Authority as to whether the • On the contrary, if the DA is not satisfied with the
reply of the charged employee is employee’s explanation, it can proceed with disciplinary
satisfactory or not. enquiry.
• As another consequence, if the charged officer admits the

charge, the employer can warn him or award punishment
without further enquiry.
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Suspension Pending Enquiry
• In case the charge against the • As per the provisions of the Industrial Employment
delinquent employee is grave and of (Standing Orders) Act, 1946, the suspended employee
serious nature, a suspension order must to be paid a subsistence allowance equal to one-half
may be served on the employee along of wages for the first 90 days of suspension and three-
with the chargesheet. fourths of wages for the remaining period of suspension if
the delay in the completion of disciplinary proceedings is
not due to the employee’s conduct.
• It must be noted here that what is grave as

a charge would be the sole discretion of
the management, and must be decided in
accordance with the Code of Discipline.
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Holding of Enquiry
The Appointing Authority or an authority not The Inquiring Authority must preferably be of a
subordinate to the charged officer and delegated rank higher than that of the charged employee
with the powers as the Disciplinary Authority can or at least of equal rank. It should be of good
appoint the Inquiring Authority (IA) and Presenting knowledge and ability to assess the evidence to
Officer (PO) and a notice to this effect should be marshal the enquiry proceedings with due
given to the concerned employee. regards to the principle of natural justice.
• A copy of the chargesheet along with copy of article of charge, imputation of charge, list of documents and a list of
witnesses must be given to the IA.
• The Presenting Officer must present the case before the IA through oral and documentary evidences. Further, the
charged officer must be given sufficient notice to represent his/ her case and make submission in own defence. Fair
opportunity should be given to the employee to cross-examine the witnesses.
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Order of Punishment
• The Standing Orders or service rules of the • Before making a final order in the case, the DA
organisation must provide that any employee who is shall forward a copy of the IA’s report to the
adjudged to be guilty of misconduct is liable to be charged officer, to enable the latter to make a
dismissed without notice, or discharged, or representation against the report, if he so desires.
suspended from work with loss of pay for a specified • On receipt of the representation the DA shall
period, or fined or warned, depending on the record its findings against each article of charge as
seriousness of the offence. to whether in his opinion the charge stands
proved or not.
• The DA, having regard to the aforesaid, shall record

reasons that in its opinion which penalty( s)
• In case the Disciplinary Authority does not
commensurate to the article of charge proved against
agree with findings of the IA on any article of
the employee, would meet the ends of justice and
charge, it shall also record the reasons for it
accordingly issue the penalty order in a speaking
while recording findings. The DA may remit the
manner. While deciding the nature of disciplinary
enquiry report to the IA in case a clear finding is
action, the charged employee’s previous records,
not possible or there is any defect in the report
precedents, effects of the action on other employees,
of the IA against any article of charge.
etc. have to be considered.
Appeal
• The criteria that a Labour Court or Industrial Tribunal

would seek to establish when a case is being adjudicated
• Appeal may be preferred by the officer by it is
against the penalty awarded on him in o whether a proper domestic enquiry had been conducted
case the punishment is not convincing and or not,
acceptable to him/ her to the Labour o whether the principle of natural justice was observed or
Court or Industrial Tribunal. not,
o whether the enquiry proceedings were unbiased or not,
and
o whether the affected party was heard in good faith or
not.
• Remedies lie in the appropriate court of law for the charged employee if he is aggrieved with the decision of the
Appellate Authority and when he has exhausted all the channels of appeal in his disciplinary case.
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Practice Questions
Arrange the steps of Disciplinary Proceedings in the correct sequence
A. Appeal
B. Complaint & Preliminary enquiry
C. Issue of chargesheet
D. Consideration of explanation
1. ACBD
2. BDCA
3. BCAD
4. BCDA
Ans: Option 4
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Practice Questions
Show cause notice is the other name for__________
1. Chargesheet
2. Complaint
3. Preliminary enquiry report
4. Order of Punishment
Ans: Option 1
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Forms of Punishment
Forms of
Punishment
Warning Penalties Suspension Dismissal
Suspension Pending
Domestic Enquiry
Punitive Suspension
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Forms of Punishment
Warning
a) Warning may be oral or written.
b) An oral warning is a verbal interaction between the delinquent employee and his/ her
supervisor, wherein they discuss the problem behaviour and the expectations on the part of
the management to change such defiant behaviour. Such a warning is issued as an informal
reprimand; it may not have serious implications.
c) When in writing, a warning forms a part of an employee’s service record and is reflective of
the conduct and efficiency of the employee during his/ her tenure with the organisation.
Penalties
a) On the basis of the conclusions arrived at in the disciplinary proceedings, if any of the charges
levied against the charged officer are proved, then the management may impose appropriate
penalty on him.
b) The penalty levied should normally be imposed for good and sufficient reasons,
commensurate with the gravity of the misconduct of the employee concerned.
c) Minor penalties may include withholding of promotion; withholding of increments of pay.
d) Reduction to a lower grade or post or to a lower stage in a time scale and dismissal from
service are examples of major penalties.
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Forms of Punishment
Suspension:
 Suspension from duty means keeping an employee away from workplace temporarily for
reasons of discipline, though it does not mean removal from service.
 The suspended employee shall not enter the work premises during the period of
suspension without the permission of the Disciplinary Authority or any other competent
authority; he/ she shall not leave the station without the written permission of the
competent authority.
Suspension Pending Domestic Enquiry:

Punitive Suspension:
 Such suspension is till investigations are pending,
 The Disciplinary Authority may decide to punish a
though at this stage it cannot be called a punishment.
charged officer by way of suspension for the acts of
 Under normal circumstances the order of suspension is
misconduct committed by him after the conclusion of
issued along with chargesheet, but if it is not possible,
domestic enquiry.
the charge-sheet must follow within 7 days of issue of
 In case of punitive suspension, the suspended
suspension order.
employee is prohibited from performing duties and
 The Disciplinary Authority also has the right to keep a
wages of such employee are withheld for the period of
charged employee under suspension if he/ she is
suspension, since it is a punishment imposed on him/
accused in a court of law for any criminal offence, until
her.
the disposal of the trial.
Forms of Punishment
Dismissal
 Dismissal is considered to be the severest of all the penalties.
 Removal or dismissal is due to gross misconduct on the part of an employee.
 In case of dismissal, the employer can withhold the contribution of the employee to
provident fund, bonus and gratuity payable and other dues, in order to make good of the
loss caused to the organisation by his/ her misconduct.
 In other words, a dismissed employee loses all termination benefits.
Difference between Dismissal & Discharge

 Both the terms ‘discharge’ and ‘dismissal’ refer to termination of service of an employee and are used only when other
measures have failed to change unacceptable behaviour.
 Discharge to be termination of service by giving agreed notice or payment and acceptance of money in lieu of such
notice.
 Removal from service in the form of discharge does not disqualify an employee from re-employment in the
organisation, whereas dismissal from service does disqualify him/ her from such re-employment.
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Code of Discipline in Industry
 Discussed in the 15th Indian Labour Conference held in July 1957.

 The Code of Discipline lays emphasis on an atmosphere of mutual regard and respect for maintaining harmonious
relations and promoting industrial peace. Code of Discipline encourages both parties not to take unilateral action.
Basic Objectives
Emphasise upon the employers

and employees to recognise each Maintain discipline in the industry
other’s rights and obligations
Secure settlement of disputes and

Eliminate all forms of coercion,
Avoid work stoppages and grievances by mutual negotiation,
intimidation and violence in
litigation conciliation and voluntary
industrial relations arbitration
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Grievance Handling
 Grievance is any discontent or dissatisfaction, whether expressed or not, whether valid or not, and arising out of
anything connected with the company that an employee thinks, believes, or even feels as unfair, unjust, or
inequitable.
 The First National Commission on Labour (1969) visualises grievances as “arising out of complaints affecting one or
more individual workers in respect of their conditions of work and not disputes over matters of general applicability
to all.
When individual grievances are not redressed and other workers are also affected by the same situation, then it
becomes a collective grievance, which normally comes under the purview of collective bargaining.
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In general grievances fall under the following categories in most Indian organisations
Promotions related (matters related to supersession, Disciplinary action related (including punishment,
promotion, seniority and fixation of pay) fines and victimisation)
Compensation related (issues on increments, payment Nature of job related (like allocation of job)
and recovery of dues)
in general grievances fall under the following categories in most Indian organisations
Amenities related (like inequitable distribution,

Condition of work related (like safety and hazards)
entitlement and medical benefits)
Service matters related (like transfers, continuity of

service and superannuation)
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Practice Questions
Code of Discipline was firstly discussed in the_________Indian labour Conference.
1. 14th
2. 15th
3. 16th
4. 17th
Ans: Option 2
If the order of suspension has not been issued along with chargesheet, the latter must follow within ________ days of issue
of suspension order.
1. 5
2. 7
3. 10
4. 15
Ans: Option 2
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Discovering Grievances
Direct Observation Gripe Box
Open Door Policy Exit interview
Opinion Surveys Grievance procedure
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Direct Observation
In this method a Examples of changes in This method would A manager must also be
manager generally behaviour may include necessitate a manager to efficient enough to observe
observes any change in absenteeism, be sensitive to the changes in behaviours and
the behaviour of indiscipline, lack of difficulties subordinates other traits that may actually
subordinates affecting enthusiasm at work, may face at work and hint at a hidden issue of
their performance. etc. empathise with them. dissatisfaction.
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Gripe Box
In many organisations employees are apprehensive of expressing their grievances in fear of facing the wrath of the
management. Under such circumstances the gripe box method is particularly useful, as it encourages an employee to
provide information without the fear of being reprimanded or victimised.
The gripe box is a facility to These boxes are kept at prominent locations in
employees to file complaints the organisation or factory premises for the
about anything that is causing convenience of employees to express their
dissatisfaction, maintaining their feelings or opinion about any aspect of the
anonymity. organisation.
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Open Door Policy
In this technique employees are This is a democratic way of

encouraged to enter a manager’s securing information about
chamber and express their grievance.. grievances at work
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Exit interview
When an employee leaves an organisation for better These interviews are nothing but interactions between the
opportunities, it often intrigues the management as to departing employee and management. The outcome of
what instigated the employee to leave the present such interviews can provide valuable insights into what are
job. An exit interview is a useful source of information the problem areas which compel an employee to leave,
on such reasons. and in what all areas the organisation needs improvement.
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Opinion Surveys
Management can also conduct This can be a proactive method

surveys at intervals to gauge to take corrective actions before
the areas in which employees dissatisfaction takes the shape of
may be having grievances. grievance.
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Grievance procedure
A formal and systematic It gives employees an avenue to In absence of such a procedure,

grievance procedure is vent their grievances. Presence employees may not be able to
perhaps the best way to of a robust grievance mechanism express their grievances, and this
understand what all aspects instills confidence in employees may eventually lead to union
of the organisation are about their grievances being intervention, which may disrupt
causing dissatisfaction to heard and corrective actions to the harmony between employer
employees. be taken. and employees.
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Model Grievance Procedure
The 15th Session of the Indian In response to this, the Model

Labour Conference held in 1957 had Grievance Procedure was drawn
emphasised on the need for an up in the 16th Session of the
established grievance procedure for Indian Labour Conference in
the country. 1958.
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Model Grievance Procedure
Process of Model Grievance Redressal
The process starts with a The supervisor must give a

grievant worker who can reply to the grievant within
make a verbal complaint to 48 hours of lodging of the
the supervisor or any other grievance.
manager designated for the
purpose.
If the reply or solution offered is If not satisfied, he can move the
satisfactory, the process of grievance to the departmental head or
redressal ends there. any other designated officer within 72
hours after the receipt of the reply.
If the employee is satisfied, If not satisfied, the grievance is

the matter would end there. referred again within 72 hours to the
Grievance Committee, which must be
a joint committee of at least 2 or 3
workers and 2 or 3 managers.
The Committee would get a time limit of If the grievant continues to remain dissatisfied, he
7 days to consider the matter and suggest can proceed further within another 72 hours to
a suitable solution. If the decision given is appeal to the Chief Executive of the enterprise or
unanimous, then it has to be the head of the establishment, who gets 3 days to
implemented with immediate effect. consider the problem.
• If the suggestion given by such authority satisfies the employee concerned, the problem is solved.
• If not, the grievant has 3 options:
1. He may file a revision petition to the management for a complete review of the entire matter, or
2. Proceed for conciliation by moving the government labour procedure for redressal, or
3. Ask for voluntary arbitration.
Recommendations of The Second National Commission On Labour
Every establishment to which the general law of employment relations applies, i.e., those with 20 or more workers, shall
establish a Grievance Redressal Committee consisting of equal number of representatives of workers and employers.
• Such committee shall not be larger than 10 members or smaller than 2 members, depending on the employment size
of the establishment.
• 1 member of the committee may be designated as the Chairman and another as the Vice Chairman.
• A system may be established to ensure that 1 of them is from the management, and the other from among
employees’ representatives.
The Commission has recommended that all matters pertaining to individual workers, be it termination of employment
or transfer or any other mater, be determined by recourse to the Grievance Redressal Committee, conciliation and
arbitration or adjudication by the Labour Court and need not be elevated to the rank of ‘industrial disputes’.
Practice Questions
The Grievance Committee has a time limit of____________days to consider a grievance.
1. 3
2. 7
3. 10
4. 15
Ans: Option 2
As per Model Standing Orders absence without leave for more than_______________days is an act of misconduct.
1. 10
2. 15
3. 20
4. 30
Ans: Option 1
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Practice Questions
Subsistence allowance for a suspended employee is equal to one-half of his wages for the first ____________days of
suspension
1. 30
2. 60
3. 90
4. 120
Ans: Option 3
The minimum number of members of a Grievance Redressal Committee must be ____________

1. 2
2. 3
3. 5
4. 10
Ans: Option 1
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Practice Questions
Which of the following is a proactive method of discovering grievances by the company?
1. Gripe box
2. Opinion surveys
3. Exit interviews
4. Open door policy
Ans: Option 2
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Chapter 7- Industrial Conflict and Disputes
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Industrial Conflict
Factors responsible for organisational conflicts
Industry related Organisation related Individual related Government related Miscellaneous

factors factors factors factors factors
Industry-related factors: These factors include industry-related policies or practices pertaining to employment, wage, hours of
work, terms and conditions of employment, rights and obligations of employers and workers, etc.
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Industrial Conflict
Industry related Organisation related Individual related Government related Miscellanoeus

Industry-related factors Organisation-related factors wage, hours of

Industry-related factors: These
Examples:- Industry-related factorsorinclude industry-related policies or practices
policies pertaining to employment,
work, terms Examples:- Such
andfactors mayetc.
include
practices pertaining to and conditions of employment, rights and obligations •of Wages employers workers,
• Employment • Work-related issues (e.g., methods
• Wage of job evaluation; physical working
• Hours of work conditions; usage of technology
• Terms and conditions of and machinery; plant layout)
employment • Terms of employment (e.g., hours
• Rights and obligations of employers of work; shift working.
and workers, etc.
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Industrial Conflict

Industry-related factors:
Individual-related Government-related
These factors include industry-related policies or practices
factors factors wage, hours of
pertaining to employment,
Examples :-work, termsrelated
Factors to the of employment, rights and obligations Examples
and conditions :- and workers, etc.
of employers
personality and behaviour of an • Changes in economic policies and
individual worker, like regulations
• habits • Improper implementation of labour
• behavioural maladjustments legislations
• lack of scope for self-expression • Changes in administrative
and participation, etc. machinery, etc.
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Industrial Conflict

Industry-related factors: These factors include industry-related policies or practices pertaining to employment, wage, hours of
Miscellaneous factors: Other factors that may be instrumental in
work, terms and conditions of employment, rights and obligations of employers and workers, etc.
industrial conflicts are
• The growing intervention of political parties in union activities
• Unstable political situation
• Interunion rivalry
• Clashes within union
• Change in ownership of establishment, etc.
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Views On Conflict
Traditional View Modern View
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Views On Conflict
Traditional View
Reasons for Conflict

• Conflict is indicative of malfunctioning within the Factory in 1930s and 1940s
organisation
• Management’s failure to bind the workers and
organisation together in a cohesive unit.
Effects of Conflict
• Conflicting groups would not cooperate in getting tasks completed.
• Managers would also have to devote extra efforts and time in
resolving conflicts.
• Losses in productivity
Solution
• The traditional view recommended suppression of conflicts.
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Views On Conflict
Modern View
Reasons for Conflict

• Conflict is natural and inevitable because organisations are composed of
individuals with different and divergent values, goals and perceptions.
• Faulty policies and structure of the organisation leading to blockage in
communication
Effect
• Minimum level of conflict is necessary to keep the organisational members alert and creative.
• It provides stability to a group and helps in the identification of power centers in and between groups.
• Conflict is also viewed to be integral to the process of change.
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Modern View
Measurement of Conflict
• Conflict should be measured in terms of functionality.
Functional Conflict Dysfunctional Conflict
A functional conflict encourages the group A dysfunctional conflict is

to destructive in nature as it hinders
• Work for the attainment of its goals, group or individual performance.
• Improves its performance and
• Contributes to personal growth of the
members and to overall organisational
growth.
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Difference between Conflict and Dispute
Industrial conflict is general, whereas industrial dispute is specific.
Conflict is considered When conflict acquires

to be an unavoidable concrete and specific
fact of organisational manifestations, it becomes
life. an industrial dispute.
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Practice Questions
State which of the statements is true
1. Industrial conflict is general, whereas industrial dispute is specific.

2. Industrial conflict is specific, whereas industrial dispute is general.
3. Both Industrial conflict & dispute are general
4. Both Industrial conflict & dispute are specific
Ans: Option 1
A company does not use good quality machinery and the machinery parts are such that they can cause injury to the workers.
Workers have time & again asked the management to replace the machinery but the management doesn’t address their
grievance. The conflict arising in this situation is a ___________________.
1. Industrial conflict
2. Organizational conflict
3. Government related conflict
4. Individual related comflict
Ans: Option 2
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Strike
A cessation of work by a body of persons employed in

Section 2( q) of the Industrial Disputes Act, any industry acting in combination or a refusal under a
1947 defines a strike common understanding, of any number of persons who
are so employed to continue to work.
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Types of Strikes
Types of strikes
On the basis of consent On the Basis of Tactics On the Basis of

of union Used to Halt Work Miscellaneous Purposes
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Types of Strikes
On the basis of Consent of Union
Authorised strikes Unauthorized strikes
Strikes which are called with the consent of the  It is called without prior consent of the union
union are authorised strikes. concerned and without giving proper notice to the
employer.
 Also known as ‘lightning strike’ or ‘a wildcat strike’ or

‘Unofficial strike.’
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Types of Strikes
On the Basis of Tactics Used to Halt Work
Work-to-rule strike Sit-In Strike Slow Down strike
Ordinary strike Sick-In Strike Quickie
Sit- Down strike Stay- In strike
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Types of Strikes
1. Ordinary strike
• This type of strike is characterised by employees

Rallies, picketing and demonstrations
quitting their workplace during prescribed working
are also made by the workers to draw
hours.
the attention of the management to
• The striking workers also prevent others from coming
their grievances and demands.
to work.
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Types of Strikes
2. Slow- Down strike
• This is harmful because while during a strike

• In this type of strike, the striking workers remain on much of the machinery can be fully turned
their jobs. They do not stop work as such, but restrict off; however during go-slow the machinery is
the volume of output produced in an organised kept going on at a reduced speed, which is
manner. often extremely damaging to machinery
parts.
#KAAM KARO BUT DHEERE KARO
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Types of Strikes
3. Quickie
• In a quickie workers remain at their work stations, but The implications of such work-stoppage,
even though for a few minutes, can be
halt their work for a brief while, say a few minutes to
a few hours very serious, especially in assembly-line
production.
# STOP WORK FOR SOME TIME
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Types of Strikes
4. Sit-down strike
• Workers do not absent themselves from

their place of work when they are on strike,
• In a sit-down strike a group of workers keeps control though they do not work.
over the production facilities; these workers stop • It is a strike to which is added the element
production and refuse access to the owners or to any of trespass by strikers upon the property of
one else desiring to work. the employer.
A sit-down strike is also known as a ‘pen

#WORK STOP+ OWNERS NOT down’ or ‘tool down’ strike.
ALLOWED
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Types of Strikes
5. Sit-In strike
• In this type of strike an organised group of protesting workers sits and occupies an area where it is not wanted
and refuses to move out until its demands are met.
#SIT IN THE WORKING AREA
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Types of Strikes
6. Stay- In strike
• A stay-in strike is one in which the striking workers

The owner has to incur additional
report to their duties, but refuse to work and they do
expenditure on the safety and security
not leave the plant premises.
of the plant and machinery when the
• The owner of the plant is deprived of the use of the
striking workers remain inside the
plant and the machinery and further operations are at
factory or establishment.
a halt.
#GO TO WORKPLACE BUT DON’T

WORK
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Types of Strikes
7. Work-to-rule strike
• Work-to-rule is a kind of concerted activity in These workers decline to do anything not

which employees remain on job, but perform mentioned therein, take permissible time off the
their work literally in accordance with the job, and perform their work to the letter in such a
rules prescribed for the purpose. manner that it results in slowing the work down.
#LAKIR KE FAKIR
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Types of Strikes
8. Sick- In strike
• A majority or all the workers call in sick Sick-in is thus a good way to strike without
simultaneously. striking; it provides a signal to the employer of the
• The employer cannot initiate any action repercussions if the workers really went on strike.
against such workers because these workers
do not break any rules
• They just avail of their sick leave that they
are entitled to, on the same day.
#MASS SICKNESS AT SAME TIME
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Practice Questions
The strike in which the workers don’t stop the work but restrict the volume of output to a lower level is known
as__________.
1. Quickie
2. Slow down strike
3. Work to rule strike
4. Sick In strike
Ans: Option 2
In a ______________, a group of workers keeps control over the production facilities; these workers stop production and
refuse access to the owners or to any one else desiring to work.
1. Quickie
2. Sit down strike
3. Work to rule strike
4. Sick In strike
Ans: Option 2
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Types of Strikes
On the Basis of Miscellaneous Purposes
Sympathetic strike Hunger Strike Jurisdictional strike
Economic strike Token Strike Political strike
General strike Picketing and Boycott Gherao
Secondary strike Bandh

Types of Strikes
1. Sympathetic strike
• A sympathetic strike is borne out of • However they join the other group of
sympathy. workers to express their solidarity and
• The striking workers do not have any commonness to the cause of these
grievance against their employer. workers.
#HUM TUMHARE SATH HAI
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Types of Strikes
2. Hunger strike
• The ulterior motive of workers involved in

• Hunger strike features fasting by the strike is to exert moral pressure on the
some or all the striking workers for a management for acceptance of their
limited period. demands and to attract the attention of
the public.
#NO FOOD TILL DEMANDS

MET
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Types of Strikes
3. Jurisdictional strike
Jurisdictional strike is an outcome of a dispute between Such strikes can occur only in such
the members of different unions over work assignments establishments that have multiple trade
or disagreement between two or more unions as to unions which are rivals.
which of them should have the exclusive right to bargain
collectively with the employer.
#INTER-UNION STRIKES
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Types of Strikes
4. Economic strike
This type of strike is initiated to enforce the economic demands of workers, such as wages, bonus and various types of
allowances.
#FINANCIAL RELATED STRIKES
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Types of Strikes
5. Token strike
• A token strike is generally of a very • It serves more as a kind of signal for the
short duration intended to convey the real threat of a strike ahead in case the
strength of feeling of workers on a demands of the workers are unheeded by
disputed issue. the employer.
#HINT OF STRIKE
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Types of Strikes
6. Political strike
• Political strikes are called with the objective of

• Such strikes are not the outcome of
challenging the government or influencing its policy
any industrial dispute.
decisions in favour of the working class.
#STRIKE AGAINST GOVT.
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Types of Strikes
7. General strike
• General strikes are wide-spread in terms of coverage These strikes are usually directed to create
and scope, with participation of members of all or political pressure on the government, and in this
most of the unions in a region or an industry. sense general strikes are similar to political
strikes.
#NORMAL STRIKES
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Types of Strikes
8. Picketing & Boycott
• Peaceful picketing is not

• Picketing is an action taken • It is accompanied by patrolling of
illegal.
by union members to striking workers in front of the
• However adoption of coercive
prevent employees from premises of the employer and
methods and persuasion by
attending work after a strike displaying banners and placards
threat or violence shall be
has been called. to show their protest verbally.
illegal.
• Boycott refers to the • A boycott is an appeal for • Boycott is negative in

rejection by workers of voluntary withdrawal of approach.
specific products or services cooperation, and so it is • Picketing is positive in
provided by the employer. persuasive in nature. approach.
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Types of Strikes
9. Gherao
A gherao is a physical
blockade of a target, either by Two kinds of gherao
encirclement or forcible
occupation.
The ordinary kind is encirclement The second kind of gherao is

and blockade of an industrial encirclement in depth, i.e.,
establishment, where the person forcible possession of the
gheraoed is generally in managerial industrial establishment and
or supervisory position present at ouster of the real owner and the
the premises. managerial and other staff.
#MANAGEMENT KO GHER LO
Types of Strikes
10. Secondary strike
Secondary strikes are those in which pressure is not applied against the primary employer, but against some third person
who has good trade relations with the employer and thus the latter incurs losses.
#STRIKE AGAINST THIRD PERSON
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Types of Strikes
11. Bandh
• A call for a bandh is different from that for a general strike or a hartal.
The literal meaning of the term • The intention of the callers of the bandh is to ensure that no activity
bandh is “closed”, implying that either public or private is carried on that date.
everything is to be closed during a
bandh. • It is true that while calling for a bandh it is not announced that any
citizen not participating in the bandh will be physically prevented or
attacked.
• However experience has shown that when any attempt is made to move
out, such a person has been threatened with harmful consequences.
#COMPLETE SHUT DOWN ON THAT DAY

Practice Questions
The strike which are not directly against the employer but against a third party related to the employer is known as
___________.
1. Secondary strike
2. Bandh
3. Gherao
4. Token strike
Ans: Option 1
Strikes against the enactments & laws of the government are__________.
1. Political strike
2. Economic strike
3. Bandh
4. Sympathetic strike
Ans: Option 1
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Lockout
Section 2( 1) of the Industrial Disputes Act, 1947 defines a lock-out as

“the temporary closing of a place of employment or the suspension of
work, or the refusal by an employer to continue to employ any
number of persons employed by him”.
Lock-out is a weapon in the hands of the employer to coerce labour to

come down in their demands.
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Records of Conflicts
The Departments of Labour in Such information is furnished • These include information in

the States and Union Territories in standard format to the respect of those temporary
and Regional Labour Labour Bureau, Ministry of work-stoppages only which
Commissioners (Central) are Labour & Employment, on or include strikes, lock-outs and
responsible for collecting basic before the 25th of each gheraos followed by lockouts,
information in respect of work- succeeding month. and involving 10 or more
stoppages from the affected workers.
primary units • Work-stoppages which involve
less than 10 workers are not
included in such records.
Political strikes, sympathetic

demonstrations, etc. are also
not included.
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Effect Of Industrial Disputes
On workers On employers On stakeholders & economy
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On workers
Facing the wrath of the

When the strike is illegal or Workers also suffer from
employer in the form of
unjustified, the concerned physical injuries in case there
victimisation is another risk
workmen would not be are incidents of violence
that workers may be
entitled to strike wages. during the industrial dispute.
exposed to.
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On Employers
The average cost of production

Stoppage of work, which, in
goes on increasing during any It also results in a fall in sales,
turn, affects production
work-stoppage due to fixed leading to a fall in profits.
adversely.
expenses that continue
Additional expenses on the

Loss of goodwill of the
safety and security of the Also affects delivery
employer and psychological
factory premises during the commitments.
distress
period of unrest.
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On other Stakeholders & Economy
Prolonged industrial disputes

Customers of the affected
also lead to wastage of
commodity also face The business of the suppliers
national resources and thus
inconveniences due to limited to the affected firm would
have an adverse effect on
supply of the commodity in also suffer.
national productivity and
the market.
national income.
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Practice Questions
The effect of an Industrial dispute can be seen on_________.
1. Workers
2. Employers
3. Economy
4. All of the above
Ans: Option 4
Lockout is defined under Section____ of The Industrial Disputes Act, 1947.
1. 2(1)
2. 2(2)
3. 2(3)
4. 2(4)
Ans: Option 1
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Practice Questions
In a ___________, no public or private activity can take place on that particular day.
1. Secondary strike
2. Bandh
3. Gherao
4. Token strike
Ans: Option 2
Lockout is the weapon in hands of _____________to coerce the demands of workers.
1. Trade Unions
2. Employer
3. Government
4. None of the above
Ans: Option 2
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Chapter 8- Settlement of Industrial Disputes
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Settlement of Industrial Disputes
If such a bargaining process faces

If dispute is not settled at this stage
The simplest way to settle any obstacles then the parties involved
then two options
dispute between an employer and may ask for the intervention of a third
a) Coercive methods like strikes
workers is by mutual discussions party; the settlement process in such
b) Arbitration
also known as “bargaining”. a case is known as bargaining with
conciliation.
CONCILIATION
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DIFFERENCE BETWEEN ARBITRATION & CONCILIATION
ARBITRATION CONCILIATION
Arbitration is a method used to resolve disputes where both Conciliation, on the other hand, involves an independent
parties present their case to a neutral third party who third party assisting the parties involved in the dispute to
reaches a decision and then enforces that decision. arrive at a mutually agreeable outcome.
The decision made by an arbitrator is enforceable similar to a A conciliator does not have the right to enforce its decisions.
judgement of a court.
Arbitration is a formal process and can follow similar Conciliation is an informal process and normally involves a
procedures to court proceedings where witnesses can be ‘round table’ discussion.
called and evidence can be presented to argue the parties’
respective cases.
Arbitrators are not permitted to discuss the issues directly A conciliator is allowed to discuss issues in dispute, develop
with the parties or generate options for terms of settlement options and consider alternatives to help the parties achieve
or negotiation. a mutually agreeable outcome.
An arbitral award is final and binding and has the effect of Conciliation does not always ensure a mutually agreeable
terminating the arbitral proceedings. outcome will arise between the parties.
Statutory Measures of Settlement of Industrial Disputes (or Settlement Machinery)
The statutory measures in The Industrial Disputes Act, 1947 for settlement of disputes are given below
Works Committee Conciliation Court Of Enquiry Adjudication
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Section 3 -->Works Committee
 A Works Committee is bipartite in composition.
 The duties of such committees were specified to include removal of causes of friction between the employer and
workmen in the day-to-day working of an establishment and to promote measures for securing amity and good
relations between them.
 Section 3 of the Industrial Disputes Act, 1947 mandates any industrial establishment employing 100 or more workmen
to constitute a Works Committee consisting of representatives of employers and workmen engaged in the
establishment.
 The number of representatives of workmen in the Committee shall not be less than the number of representatives of
the employer.
 Works Committees are also considered as an integral component of Workers’ Participation in Management.
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 Conciliation refers to the process of reconciling the views of parties to a dispute and bringing them to an agreement.
Process of Conciliation
The first step in conciliation is In the next step, a decision is The process involves discussions among
the selection of a qualified taken as to who will attend the parties in the presence of the
conciliator, who is a neutral the conciliation and the cost conciliator, with the objective of
third party. to be incurred in the process. exploring equitable resolutions leading
to a mutually acceptable settlement.
At the final stage when the The conciliator does not decide anything Role of the conciliator is to
parties reach a consensus, a on behalf of either of the parties, but simply listen to the parties
written agreement is drawn essentially provides a supportive role in and identify the issues
up. finding a viable solution. without being judgmental.
The process of conciliation is not binding on the parties till they sign this agreement, which has the effect of an
arbitration award.
Conciliation Machinery
Section 11--> Powers of conciliation Section 5(1) --> Board of

Section 4-->Appointment of Conciliation Officer--> He enjoys all powers of a Conciliation-
Officers, to whom the industrial Civil Court namely • The Board of Conciliation is a
disputes shall be referred for a. Examines all facts relevant to tripartite ad hoc body
conciliation. the disputed matter and then consisting of a Chairman and
gives his judgment. two to four other members.
b. Holds conciliatory proceedings
c. On the failure to arrive at a • When the Conciliation Officer
settlement, the Conciliation fails to settle disputes within
Officer shall send a full report 14 days, the matter shall pass
to the appropriate Government. to Board of Conciliation.
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Section 10(3)--> Where the dispute Section 13--> When a dispute

is referred to the Board, the has been referred to the
appropriate Government may Board of Conciliation, the
prohibit the continuance of any Board may take suitable steps
strike or lock-out in connection to induce the parties to come
with such dispute which may be in to a fair and amicable
existence on the date of reference. settlement.
If a settlement is arrived at, the Board is If no such settlement is arrived at, the
required to send a report and a Board is required to send a full report to
memorandum of the settlement signed the appropriate Government, along
by the parties to the appropriate with its recommendations for the
Government. determination of the dispute.
This report is required to be submitted within two months of

the date of the reference of the dispute, or within a shorter
period, as determined by the appropriate Government.
Section 19 --> It lays that settlement comes A settlement is binding for such period as
into operation on the date agreed upon by is agreed upon by the parties and if no
the parties to the dispute and in case no such period is agreed upon for a period of
date is agreed upon, the date on which the six months from the date which the
memorandum of settlement is signed by the memorandum of settlement is signed by
parties to the dispute. the parties to the dispute.
Board of Conciliation is a tripartite ad hoc body consisting of a Chairman and two to four other members.
The mode and procedure of the functioning of the Board are similar to those of the Conciliation Officer.
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According to Section 18( 2), a settlement arrived at in the course of conciliation proceedings shall be binding on the
following:
All workmen who were

employed in the establishment
All parties to the All other parties summoned The employer, his heirs and to which the dispute relates, on
industrial to appear in the successors of the the date of the dispute and all
dispute proceedings as parties to establishment to which the persons who subsequently
the dispute. dispute relates. become employed in that
establishment.
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As per Section 20( 2), a

conciliation proceeding shall be
deemed to have concluded in the
following circumstances:
In case no settlement is arrived

In case a settlement is arrived at, at, when the report of the When a reference is made to a
when a memorandum of Conciliation Officer is received by Court, Labour Court, Tribunal or
settlement is signed by the the appropriate Government or National Tribunal during the
parties to the dispute. when the report of the Board is pendency of conciliation
published. proceedings.
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Section 6 --> In case the A Court of Inquiry may consist of one or more
conciliation proceedings fail to independent persons as the appropriate
settle an industrial dispute, a Government may appoint; where it consists of
Court of Inquiry is appointed by two or more members, one of them shall be
the appropriate Government. appointed as the Chairman.
Section 14 --> The Court shall inquire into

the matters referred to it and report Section 11--> A Court of Inquiry can appoint
thereon to the appropriate Government one or more persons having special knowledge
within six months from the date of of the matter under consideration as assessor
commencement of inquiry. to advise it in the proceeding before it.
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Adjudication may be described as If both parties to the dispute However it is compulsory when
the process which involves agree to refer the dispute for reference is made to adjudication
intervention by a third party adjudication at their own accord, without the consent of either or
appointed by the appropriate then such reference of dispute to both the parties.
Government, with or without the adjudication is considered
consent of the parties to the voluntary
dispute, for the purpose of
settling such a dispute.
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THREE TIER ADJUDICATION MACHINERY
1. Labour Court
Section 7 empowers the appropriate Government to constitute one or more Labour Courts for the adjudication of
industrial disputes.
Labour Courts are empowered to adjudicate matters constituted in the Second Schedule of the Act.
According to Section 7( 2), a Labour Court shall consist of only one person who shall be appointed by the appropriate
Government.
Qualification of Presiding Officer of Labour Court
1) he is, or has been, a judge of a High Court; or
2) he has, for a period not less than three years, been a District Judge or an Additional District Judge; or
3) he has held any judicial office in India for not less than seven years; or
4) he has been the presiding officer of a Labour Court constituted under any Provincial Act for not less than five years.
2. Industrial Tribunal
• Industrial Tribunals were created for the first time by the Industrial Disputes Act, 1947.
• The Industrial Tribunal is a judicial body that is responsible for the adjudication of industrial disputes relating to any
matter whether specified in the Second Schedule or the Third Schedule of the Industrial Disputes Act, 1947.
 A Tribunal shall consist of only one person to be appointed by the appropriate Government.
Qualification of Presiding officer of Industrial Tribunal
1) He is, or has been, a Judge of a High Court, or
2) He has, for a period of not less than three years, been a District Judge or an Additional District Judge.
 It is provided by Section 7A( 4) that the appropriate Government may appoint two persons as assessors to advise the
Tribunal in the proceedings before it.
3. National Tribunal
• These tribunals are meant for those disputes which involve issues of national importance or issues which are likely to
affect the industrial establishments of more than one State.
 A National Tribunal shall consist of only one person to be appointed by the Central Government.
Qualification of Presiding Officer

1) He is, or has been, a Judge of a High Court.
2) He should be an independent persons.
3) He should be below the age of 65 years.
 The Central Government may appoint two persons as assessors to advise the National Tribunal in the proceeding before
it.
Practice Questions
The maximum age for Presiding Officer of National Tribunal is __________.
1. 58 years
2. 60 years
3. 65 years
4. 70 years
Ans: Option 3
The person appointed to advise the Court of Enquiry in its proceedings is known as
1. Subject matter expert

2. Assessor
3. Prosecutor
4. Mediator
Ans: Option 2
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Non Statutory Measures of Settlement of Industrial Disputes (or Preventive Machinery)
Workers’ participation in
Tripartite Bodies
Management
Collective Bargaining Code Of Discipline
Grievance procedure Standing Orders
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Workers’ participation in Management
a) Workers’ Participation in Management is a mechanism by which the workers of an establishment are allowed to
participate actively in the decision making process of the establishment and to have a say in its management.
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Various Forms of WPM
 Works Committees are intended to promote measures for securing and preserving cordial relations between
employer and workmen and to opine on matters of common interest or concern.
 These committees comprise equal number of representatives of employers and employees in the industry
concerned.
 Joint Management Councils are established in any establishment employing 500 or more workers and have equal
representation of workers and management.
 These councils are charged with the general duty of promoting and assisting in the management of the undertaking
in a more efficient, orderly and economical manner.
 These councils were established for the first time in 1950.
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Various Forms of WPM
 Shop Councils have been incorporated in big industrial establishments employing more than 500 workers
 The functions of these councils are to achieve increased production, productivity and overall efficiency of the shop or
department, eliminate wastage, utilise capacity and manpower of the establishment to the optimum level, and to
support the management in achieving the monthly or yearly production targets.
 Joint Councils are prescribed for every industrial unit employing 500 or more workers.
 These councils are responsible for the settlement of matters unresolved by Unit Councils. Each organisation shall decide
on the number of councils to be set up for the services it has, in consultation with the recognised union.
 A Unit Council is required to be set up in each unit of an organisation or service employing 100 or more persons.
 The decisions of Unit Councils are to be taken on the basis of consensus and not by a process of voting.
Discussed in Chapter 5
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Grievance Procedure
The Commission has also prescribed the following

three conditions for any formal or informal system
An organisation establishes a grievance of grievance handling:
procedure to give avenue to an employee to file i. Satisfaction of the individual worker
his dissatisfaction. ii. Reasonable exercise of authority by the
manager and
iii. Participation by unions.
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Tripartite Bodies
The Indian Labour Conference and Standing

Presently there are 44 national-level tripartite
Labour Committee are premier tripartite
committees in India.
bodies at the national-level.
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Tripartite Bodies
In the 1950s and 1960s, the The first Wage Board in India Since the awards given by
Government had constituted was set up for the cotton Wage Boards are non-
various Wage Boards in textile industry. statutory in nature,
appreciation of the problems recommendations made by
which arise in the arena of these Boards are not
wage fixation. enforceable under the law.
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Code of Discipline
The Code of Discipline is a set of self-imposed and It is a code of conduct both for workers and
mutually agreed upon voluntary principles of management, and it provides for the voluntary and
discipline and cordial relations between mutual settlement of disputes through mutual
management and workers of both public and negotiations, voluntary arbitrations and conciliations,
private sector enterprises. without the interference of an outside agency.
There are 3 sets of principles in the Code of

Discipline:
a) The first set of principles is for both management
and unions;
b) The second set is for management and
c) The third one is for union.
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Standing Orders
The Industrial Employment (Standing Orders) Act,

The Standing Orders of any establishment
1946 was passed so that employers of industrial
regulate the conditions of employment of a
establishments define with sufficient precision the
worker from the stage of his entry to the
conditions of employment under them and to also
establishment to that of exit from the
make the said conditions known to workmen
establishment.
employed in such establishments.
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Practice Questions
Which of the following is not a form of Workmens’ Participation in Management?
1. Shop Councils
2. Joint Management Councils
3. Works Committees
4. Court of Enquiry
Ans: Option 4
The first Wage Board in India was set in ____________industry
1. Cotton textile
2. Jute
3. Railways
4. Iron
Ans: Option 1
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Stages in the settlement of Industrial Disputes
Settlement without State Intervention Settlement with State Intervention
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Stages in the settlement of Industrial Disputes
1.Settlement without State Intervention
Collective Bargaining Voluntary Arbitration
Studied in the previous chapter
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Voluntary Arbitration
Arbitration refers to the process by which the parties to any dispute submit their differences to the judgment of an
impartial person (or group) appointed by mutual consent or by any statutory provision.
Arbitration process may be either binding or non-binding.
Binding arbitration produces a third Nonbinding arbitration produces a

party decision that the parties to the third party decision that the
dispute must follow, even though they parties concerned may not accept.
may disagree with the decision.
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Voluntary Arbitration
• In voluntary arbitration, the parties willingly and by mutual consent refer their dispute to a third party, known as the
arbitrator, under such circumstances in which both parties disagree on their own argument and they feel that any
bargaining process is ineffectual and coercive methods would not yield positive outcomes.
• The arbitrator shall investigate the dispute and submit to the appropriate Government the arbitration award signed by
the arbitrator.
• However, the award given by the third party is not binding on the parties to dispute, whereby the significance of
voluntary arbitration is diluted.
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2.Settlement with State Intervention
Existence of the State in industrial relations has been proposed by Dunlop.
Following are the ways in which State intervention is possible in settlement of industrial disputes
Compulsory setting Compulsory Initiation of Provision for Compulsory

up of bipartite collective compulsory conciliation and arbitration and
committees bargaining investigation mediation adjudication
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Compulsory setting up of bipartite committees
A bipartite committee is made up of A few joint committees were set

TISCO in Jamshedpur was the
two parties: up by the Government of India in
pioneer in private sector to set
• Representatives of workers and Indian Railways and Government
up joint committees.
• Their employer Printing Presses.
Compulsory collective bargaining
Refusal to bargain collectively in good The underlying objective is to

The State may intervene and
faith by a recognised trade union and an ensure that the parties settle
mandate workers and employers to
employer has been included in the list of their disputes through mutual
enter into a formal collective
unfair labour practices in the Fifth discussions and negotiations
bargaining process through their
Schedule of the Industrial Disputes Act, before they resort to coercive
representatives
1947. methods.
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Initiation of Compulsory Investigation
Court of Inquiry is a statutory machinery responsible for investigation into matters of industrial dispute.
Provision for Conciliation and Mediation
• Mediation is a facilitative process in

which the disputing parties engage
 Conciliation is a process of orderly or the assistance of an impartial third
rational discussion under the party, the mediator, who helps them
guidance of the conciliator. to try to arrive at an agreed resolution
 The role of the ‘conciliator’ in India is of their dispute.
pro-active and interventionist. • The role of the ‘mediator’ is restricted
to that of a ‘facilitator’.
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Compulsory Arbitration and Adjudication
• Compulsory arbitration is a binding process in which parties to the dispute have to accept the arbitration without any
willingness on their part.
• Under compulsory arbitration, the parties are forced to arbitration by the State when they fail to arrive at a settlement
by a voluntary method.
• Compulsory arbitration leaves no scope for strikes and lock-outs; it takes away a party’s right to have any dispute with
the other party.
The State may decide to adopt compulsory In case one of the parties feels
arbitration to resolve a dispute under circumstances aggrieved by any act of the other, it may
in which it thinks that industrial production should apply to the appropriate Government to
not be compromised due to work-stoppage as a refer the dispute to adjudication
consequence of a strike or lock-out. machinery.
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• Central legislations relating to labour relations are the Industrial Disputes Act, 1947, the Trade Unions Act, 1926 and the
Industrial Employment (Standing Orders) Act, 1946 and State-level enactments.
• The Commission recommends that provisions of all these laws may be judicially constituted into a single law called the Labour
Management Relations or the Law on Labour Management Relations.
• In case of socially essential services like water supply, medical service, sanitation, electricity and transport, when a
dispute is not settled through mutual negotiations, there may be a strike ballot.
• If the ballot shows that 51 per cent of workers are in favour of a strike, it should be taken that a strike has taken place,
and the dispute must forthwith be referred to compulsory arbitration.
• Industrial disputes that are not settled in conciliation should go for either voluntary arbitration or by arbitrators
maintained by the Labour Relations Commission or adjudication.
• A Central Labour Relations Commission (LRC) should be set up for establishments in Central- Sphere, and a State Labour
Relations Commission should be set up for those in the State-Sphere.
• Above both the Central and State Labour Relations Commissions, there will be the National Labour Relations
Commission to hear appeals against the decisions of the two other Commissions. The National LRC, Central LRC and the
State LRCs will be autonomous and independent.
• The responsibility of conducting verification of trade union membership for recognition of trade unions should be vested
in the Central and State LRCs.
• The Works Committee required to be constituted under Section 3 of the Industrial Disputes Act, 1947 should be
substituted by an Industrial Relations Committee to promote in-house dispute settlement.
• Labour disputes between a foreign invested enterprise and its employees may be settled through consultations between
the concerned parties, failing which, the parties may apply to the labour dispute mediation committee of the enterprise.
• Further, if mediation fails, the parties may apply to the labour dispute arbitration committee.
• Either party that is not satisfied with the adjudication of arbitration may bring the case to the people’s court of the
district or country where the enterprise is located within 15 days upon the reception of the adjudication.
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Summary of Important Concepts
 Conciliation differs from arbitration in that the conciliation process, in and of itself, has no legal standing, and the
conciliator usually has no authority to seek evidence or call witnesses, usually writes no decision, and makes no award.
 The Process Of Arbitration is costlier and more lengthy than mediation & conciliation. In case of Arbitration, each party
pays for its own expenses. On the other hand, in case of conciliation or mediation, the cost is equally divided among
parties.
 Arbitration judgement is binding on the parties. Mediator does not deliver any judgement. He just assists in developing
options and dialogue between parties.in conciliation also, the conciliator offers recommendations to the parties.
 In case of Arbitration the Arbitrator take his decision based on the facts, side stories and evidence of the case which may
or may not be favourable to one party. Arbitrator conducts the proceeding strictly by legal restriction and is bound to
follow the neutral approach in resolving the dispute.
In the case of Mediation, the mediator has the liberty to select any suitable method of resolve the dispute as there are no
strict guidelines to follow.
While in case of conciliation the conciliator is bound to follow the process given under the Arbitration and Conciliation Act.
Practice Questions
A ____________ arbitration produces a third party decision that the parties to the dispute must follow.
1. Compulsory
2. Voluntary
3. Any of the above
Ans: Option 1
The first Industrial committee was formed in the ____________industry.
1. Cotton textile
2. Jute
3. Plantation
4. Iron
Ans: Option 3
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Practice Questions
The Central Government may appoint________________assessors to advise the National Tribunal in the proceeding before
it.
1. 2
2. 3
3. 4
4. 5
Ans: Option 1
Labour Court may adjudicate on matters in the________Schedule of the Industrial Disputes Act, 1947.
1. First
2. Second
3. Third
4. Fourth
Ans: Option 2
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Which one of the following is the process in which representatives of workmen and employers involved in an industrial
dispute are brought together before a third person or group of workers who facilitates through mediation to reach a
mutual satisfactory decision?
a) Arbitration
b) Adjudication
c) Conciliation
d) Collective negotiation
Answer- C
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Chapter 9 --> Labour Welfare
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Labour Welfare
The concept of labour welfare finds its origin in the Directive Principles of State Policy enshrined in the Constitution of India.
Article 38 Article 41 requires Article 42 According to Article 43, According to

directs the the State shall make mandates that the State shall try to Article 47, the
State to secure effective provisions the State should secure to all workers, State should
a social order for securing the right make provision agricultural, industrial regard the raising
for the to work, to for securing just or otherwise, work, a of the level of
promotion of education, and to and humane living wage, conditions nutrition and the
the welfare of public assistance in conditions of of work ensuring a standard of living
people. case of work and for decent standard of life of its people, and
unemployment, old maternity relief. and full enjoyment of improvement of
age, sickness and leisure and social and public health, as
disablement, and in cultural opportunities. among its primary
other cases of duties.
undeserved want.
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Definition of Labour Welfare
Labour welfare refers to the that helps in maintaining and

provided by employers
whole range of benefits, improving their health, safety
to workers besides
amenities and facilities, and quality of life.
their wages
including social security
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Evolution of concept of Labour Welfare
Phase 1 -->1850-1900 Phase 2-->1900-1947 Phase 3 -->1947-Till date
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Industrialisation was growing and labour was

exploited by employers for increased profits Some enactments were
by way of long working hours, poor working passed by the government
conditions, no job security and low wages.
Enactment of the Indian Factories

The Fatal Accidents
The Apprentices Act, 1881 was a significant step
Act, 1853 had the The Merchant
Act, 1850 aimed towards labour welfare, though it
provision for giving Shipping Act, 1859
at helping poor was limited in scope and was
compensation to had provisions for the
children to learn applicable only to factories
families of workers health of seamen.
trades and crafts employing not less than 100
who lost their lives
persons.
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• Indian Factories (Amendment) Act,

• World War I (1914– 1918) 1922 was passed with wider The Workmen’s (now Employees’)
• The Russian Revolution of applicability Compensation Act, 1923
1917 • The amended Act contained provisions introduced provisions for
• Setting up of the International for limiting the working hours for both compensation in case of injury at
Labour Organisation (ILO) in men and women, and other welfare work, resulting in disablement or
1919 provisions for women and children. death.
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The Royal Commission on Labour (1931) had a considerable influence on welfare activities in the country. With its
recommendations, the Factories Act, 1934 came into force.
• This Act reduced the working

It also recommended
hours for children and women
health insurance and
and provided for crèches at
maternity benefits.
workplace.
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The Indian Dock Labourers Act was passed in
In 1942, welfare officers were
1934, providing for safety at working places on
appointed in the Labour
shore and of any regular approaches over a
Department by the government
dock, wharf, quay or similar premises.
• The Labour Investigation Committee (also known as the

Rege Committee) was appointed by the government in
1944 to investigate into labour welfare measures.
• In its report submitted in 1946, the Committee

recommended extension of the scope of labour welfare
to include measures like education, healthcare, relief in
case of old age and death, etc.
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Many welfare legislations

Labour Welfare Funds were
After Independence, were enacted towards this
created for workers under
industrialisation begun and end, including the
legislations like the Coal
employment level started Factories Act, 1948, the
Mines Labour Welfare
increasing. Plantations Labour Act,
Fund Act, 1947
1951.
Welfare provisions for workers in

almost every industry were made in
industry-specific legislations like the
Motor Transport Workers Act, 1961.
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Practice Questions
Which of the following act was passed that aimed to provide children with the training of trades and crafts?
1. The Apprentices Act

2. The Fatal Accident Act
3. The Maternity Benefit Act
4. The Dock Labourer Act
Ans: Option 1
_________________ requires the State shall make effective provisions for securing the right to work, to education, and to
public assistance in case of unemployment, old age, sickness and disablement, and in other cases of undeserved want.
1. Article 39
2. Article 40
3. Article 41
4. Article 42
Ans: Option 3
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Labour Welfare Approaches
Humanitarian Approach Utilitarian Approach Paternalistic Approach
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Humanitarian Approach
Sense of social responsibility of employers towards workers and concern for providing such amenities as would help workers
live a life with frugal level of comfort.
It is my social
responsibility as a
human to provide you
welfare.
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Utilitarian Approach
Under utilitarian approach, expenditure on welfare amenities are seen as investment that would preserve employee
efficiency for the benefit of an organisation.
If I provide my workers with

welfare, then they will
never leave my company &
increase the productivity.
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Paternalistic Approach
The paternalistic approach propagates an employer as the guardian of workers, who undertakes welfare activities due to a
sense of responsibility towards them and to protect them.
I am like a parent to my
workers; their guardian.
As a guardian, it’s my duty
to provide them welfare.
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Labour Welfare theories
Police Theory Philanthropic Theory Paternalistic or

Trusteeship Theory
Placating theory Public Relations Theory Functional Theory
Religious Theory
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Police Theory
We take welfare
activities in fear of
compliance.
• Management overlook and neglect the welfare of workers, and even exploit workers for their own advantage.
• The State must enact legislations that would coerce employers to provide for workers’ welfare in the form of
minimum wages, healthcare, good working conditions, etc.
Philanthropic Theory
We take welfare
activities due to
humanity.
• This theory is based on the assumption that welfare measures are undertaken with the objective of providing
benefits to workers for improving their condition.
• Many philanthropists believed that investment in labour welfare will be ultimately beneficial for industry.
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Paternalistic or Trusteeship Theory
I provide welfare to
my workers because I
am their guardian.
• This theory is paternalistic in approach and proposes that the owner of an industrial undertaking is the guardian or
‘father’ of all the workers.
• The employer owns the property and profits which he uses for the benefit of workers and the society as a whole.
• The employer must take care of the interests of workers.
• Mahatma Gandhi strongly believe in the trusteeship theory.
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Placating Theory
• The placating theory believes that as workers are becoming more aware of their rights, they are adopting a militant
attitude to pressurise employers for higher wages and improved working conditions.
• In such situations, undertaking welfare measures can appease workers and peaceful industrial relations can be
attained.
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Public Relations Theory
We take welfare
activities to improve
our goodwill.
• When labour welfare measures of an undertaking are publicised, they create goodwill in the society.
• Sales and profits of such an establishment may go up.
• Thus it gives two-way benefits to employers: increased profits and better industrial relations.
• This theory may be said to be based on the utilitarian approach.
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Functional Theory
We take welfare
activities to preserve the
efficiency & productivity
of workers.
• This theory rests on the assumption that welfare measures help to preserve the efficiency and productivity of
workers.
• Also known as the efficiency theory.
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Religious Theory
We take welfare
activities for religious
sentiments believing
in concept of KARMA.
• This theory is based on the belief that doing good deeds is an investment. In this context, investing in labour welfare
is a good deed that would reap fruits in future.
• Providing benefits to workers in the form of canteens, health benefits, crèches, etc. can also help in atonement of
sins.
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Practice Questions
The theory in which welfare measures for workers are seen as an investment is__________.
1. Religious theory
2. Philanthropic theory
3. Functional theory
4. Police theory
Ans: Option 3
Gandhiji is a supporter of ____________ theory.
1. Trusteeship
2. Placating
3. Religious
4. Functional
Ans: Option 1
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Types of Labour Welfare
Welfare Amenities
Intra- Mural Extra- Mural
Intra-mural facilities are those that are

provided by the employer to the workers Extra-mural facilities are provided outside
within the premises of an establishment, the premises of an establishment, e.g.,
e.g., drinking water, canteen, rest room, housing, transport, etc.
crèche, etc.
Welfare Amenities
Voluntary Statutory Mutual

Welfare Amenities
Statutory
Measures which have to be Welfare legislations that provide

provided irrespective of the size for general well-being and some
of the organisation or the degree of comfort.
number of people employed
therein like first aid, urinals etc.
Measures which are to be Social security legislations that

provided subject to employment are protective in nature.
of specified number of people,
such as canteens, rest shelters,
crèches and ambulance rooms.
Statutory Welfare Measures
The Factories Act, 1948
 This is a legislation dedicated to labour welfare and it contains extensive

provisions for workers’ health, safety and welfare.
 It gives the number of canteens, shelters, rest rooms and welfare officers.
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The Mines Act, 1952
• The issue of health and safety of mine workers is governed by the Mines Rules, 1955 created under the Mines Act, 1952.
• Under the Act and the Rules, an employer has to provide the following facilities for the health and welfare of mine
workers:
 adequate and suitable shelters for taking food and rest at every mine where 50 or more persons are employed
 canteens in mines employing 250 or more workers
 appointment of a welfare officer in mines employing 500 or more workers and where the number of workers in a
mine exceeds 2,500, such welfare officer to be assisted by a suitably qualified additional welfare officer for every
additional 2,000 persons or part thereof employed
 sufficient supply of cool and wholesome drinking water
 sufficient number of latrines and urinals separately for males and females in every mine and
 maintenance of first-aid boxes or cupboards in every mine and first-aid rooms in mines employing more than 150
workers.
The Plantations Labour Act, 1951
• The welfare measures that are to be provided to plantation workers by employers are:
 clean and wholesome drinking water
 separate latrines and urinals for male and female workers
 medical facilities for workers as prescribed by the State Government
 one or more canteens in every plantation ordinarily employing 150 workers
 crèches in plantations employing 50 or more women workers
 recreational facilities for workers and their children
 educational facilities for children of workers employed in any plantation between the age of 6 and 12 exceeding
25 in number
 housing facilities for every worker and his family residing in the plantation
 workers to be provided with prescribed number and type of umbrellas, blankets, raincoats or other like amenities
for protection from rain or cold and
 appointment of a welfare officer in plantations employing 300 or more workers.
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The Contract Labour (Regulation and Abolition) Act, 1970
• A contractor is liable to provide the following amenities to contract labour:
 canteen, wherein contract labour numbering 100 or more is ordinarily employed
 rest room wherein contract labour is required to halt at night in connection with the working of the establishment
 arrangements for sufficient supply of wholesome drinking water, latrines and urinals, washing facilities and
 first-aid facilities
• In case of failure on the part of the contractor to provide these facilities, the principal employer is liable to provide the
same.
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The Merchant Shipping Act, 1958
• Welfare provisions in the Act include:
 supply of sufficient provisions and drinking water of good quality
 maintenance of proper weights and measures on board
 supply of beddings, towels, medicines, medical stores, and provision of surgical and medical advice
 crew accommodation
 appointment of Seamen’s Welfare Officer at such ports in or outside India as the Government may consider necessary
 setting up of an advisory board to be called the National Welfare Board for Seafarers for advising the Central
Government on the measures to be taken for promoting the welfare of seamen generally, and in particular the
establishment of hostels or boarding and lodging houses for seamen, the establishment of clubs, canteens, libraries
and other like amenities for the benefit of seamen, the establishment of hospitals or the provision of medical
treatment and of educational and other facilities for seamen
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Practice Questions
The Welfare amenities that are provided to the workers within the establishment premises are called _____________
amenities.
1. Extra Mural
2. Intra mural
3. Mutual
4. Voluntary
Ans: Option 2
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Social Security
Based on the principles of human dignity and social justice.
According to ILO, “Social security is the protection that a society provides to

individuals and households
• to ensure access to health care and

• to guarantee income security, particularly in cases of old age, unemployment,
sickness, invalidity, work injury, maternity or loss of a breadwinner.
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Social security may be of two types
Social insurance Social assistance
Social insurance scheme is one that provides benefit A social assistance scheme provides financial benefits to
Afor persons
social of small
assistance earnings
scheme granted
provides as a legal
financial right
benefits persons
to persons of small of small
earnings earnings
as a right, as sufficiently
which can a right, which can
fulfill the
in amounts which is the combined contributory
minimum standardeffort sufficiently
of need; its source of finance fulfill the minimum standard of need; its
is taxation.
of the insured person, the employer and the State. source of finance is taxation.
Some of the important social security legislations in India are the Employees’ Compensation Act, 1923, the Minimum
Wages Act, 1948, the Employees’ State Insurance Act, 1948, the Employees’ Provident Fund and Miscellaneous Provisions
Act, 1952, the Maternity Benefit Act, 1961 and the Payment of Gratuity Act, 1972.
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Social Security for Unorganised Workers
There are no social security The only exceptions are the

The majority of the measures for these workers for Governments of Gujarat,
workforce in India maintaining basic living standards Kerala, Karnataka and Madhya
consists of workers in and risk coverage, especially in Pradesh, which have insurance
the unorganised sector. crisis situations such as schemes for the landless
unemployment, sickness or agricultural labour.
disablement.
Certain initiatives of the

Government like the National Some welfare schemes are The Minimum Wages Act,
Rural Employment Guarantee being implemented by the 1948 stands out as a
Act, 2005, the National Rural Central Government for legislation that is widely
Health Mission and the Sarva specific occupational groups applicable to unorganised
Shiksha Abhiyaan address the of the unorganised sector, workers, including agricultural
problems of employment, such as beedi workers, cine labour.
health and education, workers, handloom weavers,
respectively. fishermen, etc.
Labour Welfare Funds
There are 5 welfare funds governed by different legislations, which are administered by the Ministry of Labour &
Employment. The acts are
The Mica Mines Labour Welfare Fund Act, 1946 The Iron Ore, Manganese Ore and Chrome
Ore Mines Labour Welfare Fund Act, 1976
The Limestone and Dolomite Mines Labour

The Beedi Workers Welfare Cess Act, 1976
Welfare Fund Act, 1972
The Cine Workers’ Welfare Fund Act, 1981
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Labour Welfare Funds
• The purpose of these welfare funds is to provide housing, medical care (prevention of diseases), transportation, water
supply, educational and recreational facilities, social insurance and security to workers employed in non-coal mines and
beedi industry and to cine workers.
• For building and construction workers, the welfare boards and welfare funds are required to be set up by the concerned
State Governments.
Welfare funds fall broadly in two groups:

1) Tax (cess)-based and
2) Contributory.
(The welfare boards for mine workers, beedi and cigar workers, etc. are financed by the cess levied on these commodities.)
• Under the Beedi Workers Welfare Cess Act, 1976, a fixed cess is levied per thousand beedis manufactured.
• Cess is levied on the mica mines and under other welfare laws on mine products on the basis of quantum of production.
• Under the Cine Workers Welfare Cess Act, 1981, cess is levied on the basis of production of films and not on the basis of
collection.
Some Labour Welfare Practices in India
Child Care Leave

Women employees having minor children may be
Child Care Leave for employees of Central granted Child Care Leave by a competent authority for
Government was introduced as a result of a maximum period of 2 years (i.e., 730 days) during
recommendations of the Sixth Central Pay their entire service for taking care of up to 2 children,
Commission, with effect from 1st September less than 18 years of age, whether for rearing or taking
2008. care or any other needs like examination, sickness, etc.
Child Care Leave
It may be availed of in more than 1 spell. Child

Care Leave shall not be debited against leave During the period of such leave, women
account. employees shall be paid leave salary equal to pay
drawn immediately before proceeding for leave.
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Some Labour Welfare Practices in India
The Shops and Establishments Act is enacted by Non-statutory or voluntary benefits provided by
every State to regulate conditions of work and employers to workers include loans for purposes like
provide for statutory obligations of employers house building; recreational facilities; education of
and rights of employees in the unorganised children; purchasing of personal vehicle; conveyance;
sector and other employments in their leave travel concession; fair price shops; and many
jurisdiction. other such facilities.
Though trade unions have limited financial There are some social organisations like the Bombay Social
resources, they are actively undertaking labour Service League, the Seva Sadan Society, the Maternity and
welfare activities within their means like The Infant Welfare Association and the Young Men’s Christian
Textile Labour Association Ahmedabad, The Association, that undertake voluntary welfare activities like
Rashtriya Mill Mazdoor Sangh. night schools, promotion of public health, organising
recreational activities and lectures, etc.
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Workers’ Education and Training
The Indian workforce is characterised The scheme for workers’ education is

by low level of education. administered by the Central Board of
Workers’ Education, an autonomous
body under the Ministry of Labour &
Employment.
To achieve its objectives, various training

programmes are conducted by the CBWE for the
The Indian Institute of Workers’ Education
workers of formal and informal sectors at national,
(IIWE) was established by the CBWE in
regional and unit levels through a network of 50
March 1970 at Mumbai as the apex training
regional and 9 sub-regional Directorates spread in
institute.
various parts of the country
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Workers’ Education and Training
• The National Council for Vocational Training (NCVT),

a tripartite body under the Ministry of Labour &
Under the Constitution of India, vocational Employment, supervises training activities.
training is a concurrent subject. • It has representation from employers, workers and
Central/ State Governments. State Councils for
Vocational Training are constituted at State-level
monitoring training programmes by the respective
State Governments.
The term ‘vocational training’ refers to lower level education and training for the population of skilled or semi-skilled workers in
various trades; however, it does not enhance their level with respect to general education
The Directorate General of Employment and Training is provided through Industrial Training
Training has launched the Women’s Institutes (ITIs), run by State Governments, and
Vocational Training Programme in 1977. through various industrial establishments that
provide apprentice training.
The term ‘vocational training’ refers to lower level education and training for the population of skilled or semi-skilled
workers in various trades; however, it does not enhance their level with respect to general education
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Practice Questions
Vocational Training is a subject of ________________ list.
1. Union
2. State
3. Concurrent
Ans: Option 3
State true or false
Social Assistance schemes are funded by the employers and employees jointly.
Ans: False, A social assistance scheme provides financial benefits to persons of small earnings as a right, which can
sufficiently fulfill the minimum standard of need; its source of finance is taxation.
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Labour Research
The main purposes of most of the labour research undertaken by the Government are
to comprehend and understand the depth of the

to identify measures to solve to assist in devising
socio-economic conditions of workers for
problems policies
comparison at national and international levels.
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Labour Statistics
Following government agencies are engaged in collection, compilation and dissemination of labour statistics in the
country.
Ministry of Labour & Employment Employees’ State Insurance Other agencies (Office of the
and its affiliates Directorate General Corporation and Employees’ Registrar General of India, National
of Factory Advice Service and Provident Fund Organisation. Sample Survey Office, Planning
Labour Institutes. Commission and State
Governments).
The Labour Bureau is the main agency engaged in

collecting statistics on different aspects of labour
since its inception in 1946.
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Employment Security and Management of Redundancies
Employment security implies that a worker enjoys permanent employment

without any fear of losing job.
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Retrenchment
Redundancy is ‘the state of being no longer in employment because

there is no more work available’.
Budget constraints and/ or change in work technology may be the major

drivers of redundancy.
The Industrial Disputes Act, 1947 refers to redundancy as ‘retrenchment’.
the Industrial Disputes Act, 1947, which refers to such termination as ‘retrenchment’
Section 2( oo) of the Industrial Disputes Act defines retrenchment as the

termination of workmen’s services by the employer for any reason other
than termination by way of disciplinary action; retirement (whether
voluntary or superannuation); non-renewal of the term of contract; and
continued ill-health.
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Redundancy
Employers are prohibited from terminating the employment of a female employee at any time during maternity leave or
pregnancy, where the employee would have otherwise been entitled to maternity benefit or medical bonus under the
Maternity Benefit Act, 1961.
Some Similar terms
Lay-off is the failure, refusal or inability of Closure is the permanent closing down of a
an employer on account of shortage of place of employment or a part thereof, and is
coal, power, or raw materials, or taken as one which may have occurred due to
accumulation of stock, breakdown of industrial disputes and other issues like financial
machinery, natural calamity, or for any stringency, shortage of power or raw material or
other connected reason, to give coal, inter or intra union rivalries, accumulation
employment to a workman whose name is of stock, lack of demand, breakdown of
borne on the muster rolls of his industrial machinery, indiscipline, violence, etc
establishment and who has not been
retrenched.
Managing Redundancy
Need Assessment Employee Entitlements
 An employer must ensure that there is a genuine  An employer is required to provide 1 month’s notice to any
need for redundancy. retrenched workman indicating the reasons for
retrenchment.
 For this, a works committee may be consulted on
issues related to retrenchment.  The State-specific Shops and Establishments Act specifies
notice requirements for all non-workmen employees. Most
States usually require employers to provide at least one
month’s notice or the period specified in the employment
contract.
 Employers are required to pay retrenchment compensation

equivalent to 15 days’ average pay for every year of
continuous service to all workmen who are made
redundant.
 Gratuity is also payable under the Payment of Gratuity Act,

1972 to all employees with more than 5 years of continuous
service.
Recommendations of the second national commission on labour
The need for crèches not to depend on the number of women workers or the number of children (up to 6 years of age).
Every establishment employing 20 or more workers must run a crèche properly manned and equipped either singly or in
association with other employers and/ or local bodies. Enactment of a general law relating to hours of work, leaves and
working conditions at workplace.
Ratification of Article 4 of the ILO Convention No. 177 of 1996 on promotion of equality of treatment and other rights of
for home-workers, including right to organise, occupational safety and health, remuneration, social security, etc. would
offer substantial safeguards to millions of workers.
Introduction of a system of registration for domestic workers; these workers should be entitled to benefits of all the
schemes that the Commission has recommended for self-employed workers.
Establishing a separate wing for unorganised workers in Labour Departments, with adequate number of women
employees.
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Recommendations of the second national commission on labour
Conversion of the Employees’ Compensation Act, 1923 from an employers’ liability scheme to a social insurance scheme.
Extension of the existing provisions for maternity benefit in the organised sector so as to be applicable to all women
workers
Need for a law to place all the provident funds under a common regime; the Employees’ Provident Funds and
Miscellaneous Provisions Act, 1952
Integration of the Payment of Gratuity Act, 1972 with the Employees’ Provident Funds and Miscellaneous Provisions Act,
1952 and its conversion into a social insurance scheme. An Unemployment Insurance Scheme may be introduced as a part
of the Employees’ Deposit Linked Insurance Scheme.
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Practice Questions
________________is the failure, refusal or inability of an employer on account of shortage of coal, power, or raw materials,
or accumulation of stock, breakdown of machinery, natural calamity, or for any other connected reason, to give employment
to a workman whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched.
1. Layoff
2. Closure
3. Retrenchment
4. Redundancy
Ans: Option 1
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The assumption that is “man is selfish and self-centered and always try to achieve his own ends even at the cost of others”
explains which theory of labour welfare?
a) Placating theory
b) Police Theory
c) Religious theory
d) Philanthropic theory
Answer- B
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Chapter 10 --> Wages
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Introduction
The Planning The Five Year Plans, They address Issues

Commission was set formulated, executed and pertaining to employment
up by a resolution of monitored by the Planning and employability like
the Government of Commission, form an labour policy, industrial
India in March, 1950. integral component of the relations, employment,
planning process in India. wages, welfare
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Role of state as per Jeong
A third party regulator of labour relations A regulator of markets
An establisher of the welfare system Its own employer and policymaker
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Concept of Tripartism
• Tripartism promotes the idea of

partnership between labour and
management and rests on the following
• Tripartism operates at industry and
principles-:
national levels.
 Management and workers should share a
• As a mechanism it plays a vital role in
relation of partnership and synergy.
settlement of disputes especially when
bipartism does not help in reaching a
 The community as a whole must be
consensus.
responsible for protecting the interests of
workers, so that they enjoy their due share
in the fruits of development of the nation.
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Evolution of Tripartite Bodies in India
The need for consultation on However, the then British The Government of India Act,
labour matters was government did not 1935, which was an important
recommended by the Royal immediately accept the milestone in itself, placed the
Commission on Labour in recommendations of The subject of labour in the
India (also known as the Commission. Concurrent List.
Whitley Commission) in 1931.
In the year 1942, India set up two tripartite bodies on the model of the International Labour Conference
The Indian Labour Conference{ earlier known as The Standing Labour Committee {earlier known as
the Tripartite National Labour Conference} the Standing Labour Advisory Committee}
India ratified the Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144) concerning tripartite
consultations to promote the implementation of International Labour Standards in 1978, the same year it was adopted by
the ILO.
Tripartite Bodies in India
The objectives set before ILC and SLC at the time of their inception in 1942 were:
i. promotion of uniformity in labour legislation
ii. laying down of a procedure for the settlement of industrial disputes; and
iii. discussion on all matters of all-India importance between employers and employees.
 Both these tripartite bodies consist of representatives of the Central Government, Governments of
States and Union Territories and representatives of Employers and workers’ organisations nominated
by the Central Government in consultation with all-India organisations of workers and employers.
 Meetings --> The meetings of the ILC are held annually, whereas the SLC meets as and when necessary.
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The First Industrial Committee was formed in 1948 in the plantation industry.
State Labour Advisory Boards are tripartite advisory

The decision to constitute Industrial Tripartite
bodies set up in nearly all States to provide a forum of
Committees or Industrial Committees with equal
the representatives of the Government, employers and
representation from employers and workers sides was
mainly the outcome of tripartite deliberations at the employees for discussing problems in order to
ILC in 1944. maintain and promote harmonious industrial relations
and to increase production.
Other notable tripartite committees are:

i. the Central and State Advisory Committees to advice the Government on the administration of welfare funds
ii. the Steering Committee on Wages to study trends in wages, production and prices and assist in laying down
principles to guide wage-fixing authorities
iii. the Central Implementation and Evaluation Machinery to assess the extent of non-implementation of labour
legislations, awards, etc.
iv. the Central Board of Workers’ Education, an autonomous body under the Ministry of Labour & Employment that
administers the Workers’ Education Scheme and
v. the Special Tripartite Committee constituted in 1992 to study the impact of the New Industrial Policy on labour-
related problems and for making useful recommendations.
Practice Questions
The meetings of the ILC are held ____________, whereas the SLC meets as and when necessary..
1. Weekly
2. Monthly
3. Quarterly
4. Annually
Ans: Option 4
The Planning Commission was set up in ___________________.
1. March 1950
2. March 1951
3. March 1952
4. March 1953
Ans: Option 1
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Five Year Plans
First Five Year Plan (1951-1956)
The Plan concentrated on five aspects Measures were directed towards

of labour policy: The primary objective of the First ensuring a better distribution of
i. industrial relations, Five Year Plan was to increase the educated labour force among
ii. wages, employment opportunities and to different occupations, thus
iii. working conditions, raise the standard of living of the diverting workers from ‘crowded’
iv. employment & training masses. occupations to those where there
v. and productivity. is a shortage.
Five Year
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Five Year Plans
Second Five Year Plan (1956-1961)
The Plan recommended appointment of a

The Employees’ Provident Fund (EPF) Scheme, which was
wage commission and an authority like a
instituted on a statutory basis during the First Five Year Plan, was
tripartite wage board, consisting of equal
extended in the Second Plan phase to cover industries and
representatives of employers and workers, to
commercial establishments having 10,000 or more workers in the
be instituted for individual industries in
country as a whole.
different areas.
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Five Year Plans
Third Five Year Plan (1961-1966)
An urgent consideration was given The Plan proposed to set up a Standing

to the conversion of the various Advisory Committee to promote
Provident Fund schemes into a measures for bringing down the
statutory scheme for old age, incidence of accidents in factories and
invalidity and survivorship pension- a National Mine Safety Council for
cum-gratuity. safety education and propaganda in the
mining industry.
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Five Year Plans
Fourth Five Year Plan (1969-1974)
• Greater emphasis was placed on promoting safety It laid considerable emphasis on labour-
practices and on the development of indigenous mine intensive schemes such as roads, minor
safety equipment. irrigation, soil conservation, rural
• Stress was laid on strengthening labour administration electrification, village and small scale
for better enforcement of labour laws. industries, housing and urban development.
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Five Year Plans
Fifth Five Year Plan (1974-1979)
The Fifth Five Year Plan laid emphasis on The Plan stressed on strengthening industrial
generation of employment, labour welfare and relations and conciliation machinery, better
greater mobility of labour especially from enforcement of labour legislations, research in
labour surplus to labour starved areas. labour and labour statistics, and undertaking
studies in the field of wages and productivity.
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Five Year Plans
Sixth Five Year Plan (1980-1985)
One of the principal objectives of Special attention was paid to women and educated
the Sixth Five Year Plan was the manpower both for the purpose of analysis of the
progressive reduction of existing employment market and for the
unemployment in the country. formulation of suitable policies for these categories.
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Five Year Plans
Seventh Five Year Plan (1985-1990)
The emphasis of the Seventh Plan was on

employment and manpower policy. The Plan also ensured suitable arrangements
Technological upgradation, modernisation and adjustment policies in terms of education,
and scientific advances in production training, retraining and re-orientation of
process in organised industry, agriculture workers to avoid dislocation effects and to
and small industry were envisaged as the ensure smoothening of the process of
essence of growth of productivity. technology adoption.
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Five Year Plans
Eighth Five Year Plan (1992-1997)
The Eighth Plan aimed mainly at reducing It also expressed concerns about
unemployment. The Plan echoed concerns of the rationalisation of the regulatory framework
earlier Plan with particular reference to workers’ with a view to provide reasonable flexibility for
participation in management, skill, training, workforce adjustment for effecting
productivity, equitable wage policy and the informal upgradation of technology and improvement
sector. in efficiency.
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Five Year Plans
Ninth Five Year Plan (1997-2002)
The Ninth Plan directed efforts to modify the

It aimed at reducing the number of laws which existing National Child Labour Project (NCLP) by
determine the relations between workers and establishing special schools to provide non-formal
employers so that a much smaller number of laws education, vocational training, supplementary
can reach out to the entire workforce.
nutrition, stipend, healthcare, etc. to children
withdrawn from employment.
Efforts were made to extend the coverage of the National Social

Assistance Programme to the casual and self-employed workers in the
informal sector both in rural and urban areas with the objective to
cover the economically active population outside the organised sector.
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Five Year Plans
Tenth Five Year Plan (2002-2007)
During the Plan period efforts were made It also undertook affirmative measures to eradicate child
to ensure universal access at least to labour by way of the Child Rehabilitation Scheme that included
primary health care facility and to identifying child labour, providing vocational education to
promote vocational training as a measure children and paying them stipend, and their placement in
to generate employment opportunities. appropriate jobs or helping them in self-employment.
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Five Year Plans
Eleventh Five Year Plan (2007-2012)
The employment strategy for the Eleventh Plan Services like Information Technology (IT) enabled
was to ensure rapid growth of employment while services, telecom and tourism were identified to
ensuring an improvement in the quality of have prospects for high growth in output and for
employment, especially in the unorganised sector. creation of new employment opportunities.
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Five Year Plans
Twelfth Five Year Plan (2012-2017)
The Plan has stressed on provision The Twelfth Five Year Plan has
for necessary support mechanisms recommended activating the State
to enable the financial Skill Missions and making them
requirements/ skill loans for poor nodal points for receiving most of
students (i.e., the Credit Guarantee the skill-related funding from
Fund). Centre.
The intervention of IT is clearly evident from the following thrust areas of the Twelfth Five Year Plan:
i. Development of Information and Communication Technology (ICT)-based real time labour market information system;
ii. Development of an online national register of skilled persons & all employment exchanges to come online and act as
pro-active counseling and placement centres; and
iii. Setting up of a National Skill Registry having the facility to link various databases across Ministries and States.
iv. Other focus areas of the Plan include: focus on training of trainers; promotion of Public Private Partnership; and
development of a model on the informal sector that reaches out to people.
Practice Questions
The ___________________Five Year Plan has recommended activating the State Skill Missions.
1. Ninth
2. Tenth
3. Eleventh
4. Twelfth
Ans: Option 4
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Labour Law Reforms & Labour policy
The Planning Commission and different committees have been recommending reform of labour laws by highlighting
the need for flexibility.
The main accusation against Growth of output in the organised This brings us to an interesting
the labour laws in India, sector is not leading to a dichotomy: labour laws that are
especially by employers, is proportionate growth in meant to protect the jobs of the
that they are excessively pro- employment, which is compelling workers are themselves impeding
worker in the organised sector. employers to resort to more capital the scope for creation of more job
intensive production processes. opportunities in future.
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Amendment proposals at various stages of consideration
The Working Group on Labour Laws and Other Regulations for the Twelfth Five Year Plan (2012-17) set up by the Planning
Commission has given recommendations on amending certain legislations.
The Contract Labour (Regulation and The Factories Act, 1948 must be The Employees’ Provident
Abolition) Act, 1970 is proposed to be amended to introduce new terms like Fund and Miscellaneous
amended to ensure that in case ‘hazardous substance’, ‘disability’, etc.; to Provisions Act, 1952 may be
contract labour performs similar kind redefine certain other terms; and to add amended to bring down the
of work as those directly appointed new provisions on health, safety, threshold limit of workers
by the principal employer, such a hazardous process, welfare, working from the existing ‘20 and
worker shall be entitled to the same hours for adults, employment of young above’ to ‘10 and above’ as
wage rates, holidays, hours of persons, annual leave with wages; and regards coverage of
work and social security provisions. penalties & procedures. establishments.
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Recommendations of The Working Group
I. Consolidation, Simplification and Rationalisation of Labour Laws
The Working Group has agreed with the suggestion of the Second National Commission on Labour (2002) and
National Commission for Enterprises in the Unorganised Sector (NCEUS) (2007) that labour laws should be
consolidated in the following cognate groups to reduce their multiplicity that would ensure better enforcement
and more effective compliance:
Laws Governing Laws Governing Laws Governing Laws Governing Working Welfare Cess
Industrial Relations Wages Social Security Conditions and Welfare Laws
• The Employees’
• The Industrial • Equal Remuneration
State Insurance
Disputes Act, 1947 Act, 1976,
Act, 1948, • The Factories Act, All Cess Acts
• The Industrial • The Minimum
• The EPF and 1948, and Welfare
Employment Wages Act, 1948,
Miscellaneous • The Maternity Fund Acts
(Standing Orders) • The Payment of
Provisions Act, Benefit Act, 1961
Act, 1946 Bonus Act, 1965
1952
II. Common Definitions

At present different terminologies and definitions used in various labour laws lead to confusion and complications in the
effective compliance and enforcement of these laws.
One of the pre-requisites for codification or consolidation of labour laws is thus to have common definitions.
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III. Protecting Interest of Workers in the Unorganised Sector

The Working Group has recommended provisions of minimum living wage, improved regulatory activities, basic social
security and labour welfare schemes, and improved health and safety facilities to workers in the unorganised sector.
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IV. Amendments in Certain Acts

Certain Acts like the Minimum Wages Act, 1948, the Contract Labour (Regulation and Abolition) Act, 1970 and the
Factories Act, 1948 have far reaching impact on the living standards of workers and have certain proposed amendments at
various stages of consultation.
Such considerations have been recommended to be put on fast track during the Twelfth Five Year Plan
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V. Enhancing Eligibility Criteria and Indexing of Benefits

The eligibility criteria in terms of wage ceiling in Acts like the Payment of Wages Act, 1936, the ESI Act, 1948, the EPF
and Miscellaneous Provisions Act, 1952 and the Employees’ Compensation Act, 1923, etc. should be reviewed at a
given periodicity, say 3 to 5 years.
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VI. Improving Enforcement of Labour Laws

• The Working Group has suggested a complete review of the strength of the enforcement machinery of labour
legislations; creation of an All India Service for labour administration; induction of greater professionalism, etc.
• Holding Lok Adalats has also been encouraged to enable faster disposal of cases.
• A database should be built on all aspects relating to industrial relations and the officers of the Labour Departments
should have access to such database through computer connectivity.
• In addition to codification and simplification of labour laws, the Working Group also suggested for creating an online
‘single window system’ for making compliance simple and user friendly and for bringing transparency.
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VII. Easing Compliance Burden of Labour Laws

For minor offences for which punishment by way of fine is provided, a senior officer of the Labour Department
should be empowered to adjudicate these cases.
This would reduce the time taken in disposing complaints and also lessen the burden on courts.
The Working Group has recommended identification of the reasons for non-implementation of certain Acts.
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Practice Questions
Equal Remuneration Act is a type of which type of labour law?
1. Law governing Industrial relations

2. Law governing wages
3. Law governing social security
4. Law governing working conditions and welfare
Ans: Option 2
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Provisions for women workers in various legislations
1. Employment
 Section 27 of the Factories Act, 1948 prohibits employment of women in any part of a factory for pressing cotton
in which a cotton-opener is at work.
 Section 46( 1)( a) of the Mines Act, 1952 prohibits employment of women in any part of a mine which is below
ground.
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2. Remuneration
 Article 39 of the Constitution of India envisages that the State shall direct its policy towards securing equal pay for
equal work for both men and women.
 The Equal Remuneration Act, 1976 gives effect to this constitutional provision. It provides for the payment of equal
remuneration to men and women workers and for the prevention of discrimination on the ground of sex against
women in the matter of employment and for matters connected therewith or incidental thereto.
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3. Health and Safety Measures
 Sections 22( 2) and 34( 2) of the Factories Act, 1948 provide for health and safety of women workers.
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4. Prohibition of Night Work
 The Factories Act, 1948, The Beedi and Cigar Workers (Conditions of Employment) Act, 1966 and The Mines Act,
1952 stipulate working hours for women between 6 AM and 7 PM.
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5. Provisions for Separate Latrines and Urinals
 Provisions for separate latrines and urinals for female workers exist in:
• The Factories Act, 1948

• The Mines Act, 1952
• The Plantations Labour Act, 1951
• The Contract Labour (Regulation and Abolition) Act, 1970 and
• The Inter-State Migrant Workmen (RECS) Central Rules, 1980.
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6. Provisions for Separate Washing Facilities
 Provisions for separate washing facilities for female workers are given in:
• The Factories Act, 1948
• The Contract Labour (Regulation and Abolition) Act, 1970 and
• The Inter-State Migrant Workmen (RECS) Act, 1979.
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7. Provisions for Crèches
 Provision for crèches exists under the following legislations:
• The Factories Act, 1948 mandates every factory employing more than 30 women workers to provide and
maintain suitable room( s) for the use of children under the age of 6 years of such women.
• The Plantations Labour Act, 1951, in every plantation wherein 50 or more women workers (including those
employed by any contractor) are employed, or where the number of children of women workers (including
women workers employed by any contractor) is 20 or more, there shall be provided and maintained by the
employer suitable rooms for the use of children of such women workers.
• The Beedi and Cigar Workers (Conditions of Employment) Act, 1966 mandates the provision and maintenance
of suitable room( s) for the use of children under the age of 6 years of female employees in industrial premises
where more than 50 female employees are ordinarily employed.
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8. Maternity Benefit
• The Maternity Benefit Act, 1961 regulates the employment of women in certain establishments for periods
specified before and after childbirth and provides maternity benefit and certain other benefits.
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Vocational Training of women
The DGET is the apex organization for The Women’s Vocational Training Programme
development and coordination of (WVTP) was designed and launched under the
vocational training programmes at Directorate General of Employment and Training
national level. (DGET) in 1977 to mainstream women into
economic activities of the nation.
• Training institutes exclusively for women have been

The Programme aims to promote both self-
set up under Central and State sector schemes.
employment and wage-employment of women in
• Under the Central sector, the DGET has set up 11
industry as semi-skilled or skilled and highly skilled
institutes, comprising one National Vocational
workers by way of increasing their participation in
Training Institute (NVTI) for Women at Noida and
skill-training facilities.
10 Regional Vocational Training Institutes.
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Sexual Harassment of women
• The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 provides for
protection against sexual harassment of women at workplace and for the prevention and redressal of complaints of
sexual harassment.
• The Act received the assent of the President of India on 22nd April, 2013 and has come into force on and from 9th
December, 2013.
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Policies and provisions for child labour
Article 21A--> Right to Education, says Article 39( e) states that the health and
that the State shall provide free and Article 24 prohibits employment strength of workers, men and women,
compulsory education to all children of of children below the age of 14 and the tender age of children are not
the age of 6 to 14 years in such years in any factory or mine or in abused and that citizens are not forced
manner as the State may determine by any other hazardous occupation. by economic necessity to enter
law. avocations unsuited to their age or
strength.
As a part of the legislative action plan, the Government of India has The National Policy on Child
enacted the Child Labour (Prohibition and Regulation) Act, 1986 to prohibit Labour, declared in August, 1987,
the engagement of children below the age of 14 years in 18 occupations contains a three-pronged action
and 65 processes and to regulate the conditions of work of children in plan for tackling the problem of
certain other employments. child labour.
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Policies and provisions for child labour
• Rehabilitative measures are set forth by way of repatriation in case

of migrant child labour; and bridge education is provided with the
Rescue and repatriation is another crucial ultimate objective of mainstreaming such children into the formal
component of the legislative policy. system of education.
• The Government also provides pre-vocational training to the

rescued children.
A survey of child labour engaged in such

occupations is conducted, following which, With regard to educational rehabilitation, the Government
children are to be withdrawn and then put into has implemented the National Child Labour Project (NCLP)
special schools, to be eventually mainstreamed Scheme in 1988.
into formal schooling system.
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Practice Questions
_____________________ is the apex organization for development and coordination of vocational training programmes at
national level.
1. DGET
2. NVTI
3. ITI
4. WVTP
Ans: Option 1
Article __________ prohibits employment of children below the age of 14 years in any factory or mine or in any other
hazardous occupation.
1. 21
2. 24
3. 26
4. 27
Ans: Option 2
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Theories of Wages
Subsistence theory Residual Claimant Theory
Wages fund Theory Marginal Productivity Theory
Purchasing Power Parity Theory Bargaining Theory of wages
Demand and Supply Theory Efficiency wage Theory/ hypothesis
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Subsistence theory
Proposed by David Ricardo,

the subsistence theory states Wages tend to settle at a level that is just sufficient
that the price of labour to maintain the bare minimum subsistence level of
depends on the subsistence of a worker and his/ her dependents.
labour.
If wages fall below this level, marriages and births If wages rise above the subsistence level, workers
are discouraged and impoverishment would are encouraged to marry and have large families,
increase death rate. This would again lower labour which would eventually add to the labour force,
supply, until wages rise to the subsistence level. bringing wages down to the subsistence level.
 The subsistence theory is completely outdated and has no practical application, especially in developed countries.
 It also ignores the importance of demand for labour and the role of trade unions in determining wages.
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Wage Fund Theory
According to the Wages Fund Theory proposed by J. S.

Mill, wages depend upon two quantities, namely, Since the wage fund is fixed, only a
• the fixed wage fund (or circulating capital) set reduction in the number of workers
aside for the purchase of labour and could raise wages.
• the number of workers seeking employment.
There is another dimension to the fixed wage fund:

Therefore unions cannot raise wages if trade unions of workers succeeded in raising
for the labour class as a whole. wages in one trade that could only be possible at
the expense of another.
• This theory has been widely criticised on several grounds, the strongest of them being that wages are not necessarily
paid out of circulating capital alone.
• The Wages Fund Theory is applicable at best in an under-developed country that has capital deficiency, and stands
rejected now.
Purchasing power Parity theory
Keynes considered determination of wage rate from a macro viewpoint, as an income for the wage earners.
Wage Rate is high  More • If the wage rate is low, purchasing power of labour
Purchasing Power of workers  would be less, which would lower the aggregate
More demand of the workers demand.
• Low aggregate demand would have an adverse impact

on the level of employment and output.
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Residual Claimant Theory
The Residual Claimant Theory has Several authors consider this theory to be optimistic, as it
been proposed by Walker--> suggests the possibility of increase in wages through increased
Wages are the residue after the other efficiency of workers, whereas the Subsistence Theory and Wages
factors of production, like rent, Fund Theory were pessimistic in approach.
interest and profit, have been paid.
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Marginal Productivity theory
• The marginal product of labour is the

amount by which the output would
The marginal productivity As per the marginal be increased if a unit of labour was
theory, is associated initially productivity theory, demand increased, with the quantities of other
with John Bates Clark and for labour is determined by the factors of production remaining
was developed later by value of output of an constant.
Marshall, Jevons and Walras. additional worker. • Since the employer works for profit,
therefore he would like to pay as low
as possible, and definitely not more
than the marginal productivity of the
factor (here labour)
Criticism --> The marginal productivity • The marginal productivity theory rests on the assumptions of a
theory invites criticism on account of perfectly competitive market and profit maximisation motive of
the assumption of perfect employers.
competition. Further, labour is
• Due to perfect competition, no factor input would be willing to accept
assumed to be perfectly mobile, which
a return lower than its marginal productivity. Thus in an open market
does not hold in the real world.
marginal productivity determines the equilibrium factor price.
Bargaining Theory of Wages
Proposed by John Davidson  This theory of wage determination

is based on negotiations between
employers and unions, with the
assumption that the two parties,
labour and employer, have
conflicting objectives.
 Each wants the maximum share of

the firm’s profits and is aware of
the costs of a strike and the risks of
participating in one.
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Efficiency Wage theory
The term ‘efficiency-wages’ was The efficiency wage hypothesis is a

coined by the noted economist, Alfred complete digression from the marginal
Marshall productivity theory.
• The underlying idea is that the value of a worker

may depend on how much he/ she is paid,
because richer workers are more productive or It postulates that in certain situations
better motivated to avoid unemployment. employers may find it more beneficial
• This theory is more modern and practical in to pay wages to their workers higher
approach as it takes a holistic view of wages. than their marginal revenue product.
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Demand & Supply theory
Factors that determine the demand for

labour include derived demand, elasticity of
According to this theory, wages are
demand for labour and technical progress.
determined by the interaction of demand and
supply, just like any commodity.
Supply of labour depends on the number of

workers and the number of hours per day
they are prepared to work.
Demand for labour partly reflects productivity of labour and partly Due to the trade-off between hours of
the market value of the product at different levels of production. work and hours of leisure, the supply
Workers earn to meet their needs, which may include basic curve of labour is not normally upward
necessities of food, clothing and shelter, education and health and sloping, but is backward bending
entertainment of self and dependents. beyond a particular wage.
Wage Board
Evolution
The First Five Year Plan also drew a scheme for permanent wage
1931--> The Whitley Commission on boards to be set up in each State with a tripartite composition and
Labour had recommended the dealt with at the level of the Central Government
setting up of a Wage Board
As on date, wages are decided by Wage Boards

Finally the Wage Board system was introduced
for journalists and non-journalists newspaper and
in March, 1957; the very first of its kind was set
news-agency employees. Since 1955, the
up for the cotton textile industry in the name of
Government has constituted six wage boards for
Central Wage Board.
these employees
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Wage Board
Constitution
A Wage Board is tripartite by structure, consisting of a chairperson, an equal number of representatives of employers and
employees (two members each) and two other independent members (an economist and a consumers’ representative)
nominated to the Board.
The Chairman is appointed by the

Usually a Member of
appropriate Government in consultation
Parliament is nominated to
with the Chief Justice of the High Court
represent consumers.
concerned or the Supreme Court of India.
The appropriate Government appoints workers’

Any person who is or has been eligible to and employers’ representatives on the
be appointed as a Judge of a High Court recommendations of the most representative
shall be qualified for appointment as the workers’ and employers’ organisations
Chairman. respectively in the sector concerned.
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Wage Board
Functions
A Wage Board adjudicates industrial A Wage Board serves as an effective

disputes referred to it with the machinery for determination of
assistance of independent members. wages.
It is required to work out a wage Working out the principles that

structure based on the principles of should govern payment of bonus and
fair wages formulated by the framing of gratuity schemes.
Committee on Fair Wages.
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Practice Questions
According to Ricardo, the price of labour depends on the __________ of labour.
1. Demand
2. Supply
3. Subsistence
4. Bargaining Power
Ans: Option 3
Wage board was first recommended by the ___________.
1. Whitley Commission
2. First National Commission of Labour
3. First Five Year Plan
Ans: Option 1
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Practice Questions
So far the Government has constituted __________ wage boards for working journalists and non-journalist newspaper
employees.
1. 5
2. 6
3. 7
4. 8
Ans: Option 2
Rescue and __________ is a crucial part of the legislative policy adopted by the Government for eradication of child labour.
1. Repatriation
2. Relaxation
3. Education
4. Health
Ans: Option 1
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Chapter 11 --> Workers’ Participation in
Management
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Workmens’ participation in Management
Introduction
• The idea of workers participation had originated in Europe.
• The concept of industrial democracy was given by Sydney and Beatrice Webb.
• It is important to understand that ‘industrial democracy’ and ‘workers’ participation’ are two distinct terms.
• Workmens’ participation is, “whether it involves having a say in decisions or sharing in financial benefits, does not
necessarily give employees (individually or collectively) any control over those decisions ... Although participating
employees have potential influence within an organisation, management is free to ignore their views and opinions if it
so chooses.
• The idea of industrial democracy is the possibility of employee control of various aspects of the enterprise’s
operations.”
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Workmens’ participation in Management
WPM is defined as sharing of decision-making power by workers through their representatives in the entire range of
activities of an organisation, by direct or indirect involvement.
Workers’ participation may be known by different names in different countries, for example in Germany it is termed as co-
determination, while in Yugoslavia it is known as self-management.
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Need for Workers’ Participation in Management
Sharing of power Empowerment of employees
Stimulate cooperation Promotion of industrial peace
Increase labour-management Productivity and quality improvement

communication
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Types of Workmens’ participation in Management
I. As per ILO
Indirect or representative participation

Direct participation Financial participation
Workers may participate indirectly
Direct participation may through their trade unions, works Such participation takes place
take place through teams councils, joint consultative committees through profit-sharing or stock
and workers’ assemblies and various other committees like ownership, or various
consisting of all employees. occupational health and safety combinations of these forms.
committees, employee representation
on board, etc.
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Types of Workmens’ participation in Management
II. As per Sen
Superficial participation Intermediate participation Real participation
Such participation comprises Intermediate participation • Such participation covers

information-sharing and involves collective bargaining in consultation on unrestricted
suggestion schemes. both traditional and non- issues and co-determination on
traditional areas and both restricted and unrestricted
consultation on restricted issues. issues.
• Real participation gives workers

‘voice’ in every aspect of
running of an enterprise, and
hence may be equated to
democracy.
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Forms of Workmens’ participation in Management
Works Committee
• The term ‘works committee’ describes arrangements for the representation of
workers, usually at the plant or unit-level, although they may exist at higher levels
(company, group of companies, industry, nations or group of nations).
• Extensive use of such committees, also known as works councils, workers’ committees
and cooperation committees, is well established in a number of European countries
such as Belgium, Denmark, France, Germany and the Netherlands.
• In collective bargaining workers’ representatives negotiate with the representatives of
management on issues like wages, working conditions and other labour-related issues
through exchange of dialogue. It involves active participation of workers.
• Theoretically speaking, collective bargaining is based on the principle of equality of

power, but in actual practice, each party tries to overpower the other and get the
maximum advantage for itself by using means like threats, strikes, lock-outs and other
direct actions, if necessary.
Suggestion Schemes
• Many organisations have implemented suggestion schemes in which workers are

encouraged to give their suggestions on various issues and problems related to
production and administration.
• Accepted suggestions may even be rewarded.
• Here workers have no power and employers are under no pressure to accept the
suggestions.
Quality Circles
• Quality Circle is a participative management technique in which small teams of usually

6 to 12 employees are voluntarily formed to identify and solve quality and
performance- related problems.
• Originated in Japan, they are based on the principles of voluntary participation and
collaborative decision-making
Stock Ownership
• Many employers and governments have been known to propose workers’ stock ownership as a method of
participation.
• This could increase workers’ control over industry, since they become shareholders of the company.
• In USA there have been many experiments with what is referred to as Employee Stock Options Plan (ESOP).
• In India, ESOPs were pioneered by Infosys.
• National Aluminium Company Ltd. (NALCO) was the first company amongst public sector organisations to have
started ESOPs
Levels of Workmens’ participation in Management
International ILO, International

Level bodies conferences
Tripartite labour
National level machinery of govt.
State Labour Advisory

Regional Level Board
Industry Level Industrial committee,

wage board
Unit or Enterprise level Works committees
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Practice Questions
Works committees are examples of which levels of WPM?
1. Industry level
2. Regional level
3. Enterprise level
4. National level
Ans: Option 3
Participation which takes place through profit-sharing or stock ownership is know as____________.
1. Financial Participation
2. Superficial participation
3. Direct Participation
4. Indirect Participation
Ans: Option 1
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Chapter 11 --> Workers’ Participation in
Management
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Workmens’ participation in Management in INDIA
1. Shop Councils and Joint Councils
 In 1975 a scheme of shop councils and joint councils was formulated by the Government.
 This was applicable to all enterprises in manufacturing and mining employing 500 or more people in the public, private
and cooperative sectors, irrespective of whether joint consultative machineries had been set up and were functioning
in such enterprises.
 In the same year, in accordance with this scheme, during the Emergency period in the country the Constitution was
amended and Article 43A was introduced, that formed part of the Directive Principles of State Policy.
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• Shop council exists at shop floor level, consisting of an equal number of representatives of employers and workers.
• Employers’ representatives are nominated by the management from among the persons employed in the unit
concerned, while all representatives of workers are required to be from amongst those engaged in the shop or
department concerned.
• Each shop council is supposed to function for 2 years and meet at least once a month.
• The chairman of the council is nominated by the management and the vice-chairman by the workers.
• Decision-making is by consensus and decisions have to be implemented within a month.
• The functions of shop councils are to assist the management in achieving production targets, improving production,
productivity and efficiency, eliminating wastage and utilising capacity and manpower to the optimum level.
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• Joint council exists at plant-level, and is required to hold meetings at least once in a quarter.
• The chief executive of the unit would be the chairman; the vice-chairman was to be nominated by the worker members
of the council.
• The joint council was required to meet at least once in 3 months. Any one of the council members could be the
secretary of the council.
• The functions of joint councils were to discuss production and productivity, achieve efficiency, eliminate wastage, arrest
absenteeism, ensure safety measures, etc.; the physical conditions of working and welfare measures are the other
areas of their concern
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2. Works Committee
• Section 3(1) of the Industrial Disputes Act, 1947 provides for the setting up of a Works Committee consisting of
representatives of management and employees in every industrial establishment employing 100 or more workmen.
• The objective of the committee, according to sub-section 2 of Section 3, is “to promote measures for securing and
preserving amity and good relations between the employer and workmen and to that end, to comment upon matters of
their common interest or concern and endeavour to compose any material difference of opinion in respect of such matters
The Act provides that the total number of representatives in the Works Committee, including those of the employer, should
not exceed 20, and that the number of representatives of workers should not be less than that of the employer. The workers’
representatives are to be chosen from among the workmen engaged in the establishment, in consultation with their
registered trade union.
Works Committees were allotted discussions on lighting, ventilation, temperature, sanitation, drinking water, canteens, dining
and rest rooms, medical and health services, safe working conditions, administration of welfare funds, educational and
recreational activities and encouragement of thrift and savings among workers.
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3. Joint Management Councils

• The objectives of JMCs are to identify measures to build up trust and understanding and hence promote cordial
relations between management and labour; increase productivity; secure effective welfare and other facilities; and
train workers in understanding and sharing responsibilities. Wages, bonus and personal problems were outside the
scope of JMCs.
• JMCs generally function as a consultative body.
• A JMC has equal representation from workers and management.

• The size of the Council should be restricted to 12 persons, the majority of workers’ representatives ideally with workers
themselves.
• Outside members, if inducted by the local trade unions, should not exceed 25 per cent of the workers’ representatives.
Criteria to be followed in selecting undertakings in which JMCs should be established:

 The undertaking should have well-established and strong trade unions.
 There should be willingness among employers and workers or their unions for establishing JMCs.
 The size of the undertaking in terms of employment should be at least of 500 workers.
 The employer, if in the private sector, should be a member of one of the leading employers’ organisations and the trade
union should be affiliated to one of the central federations.
Reason for failure of JMCs

• Management’s reluctance to share decision-making with workers.
• Trade Unions fear that these councils will weaken their strength as workers come under the direct influence of these
councils.
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4. Worker Director
Another means of workers’ participation in management is having a representative of workers, regarded as Worker
Directors, in the Board of Directors of an enterprise. Worker Director is the nominee of the recognised union representing
workers at the board of directors of an organisation.
Workers, through Worker Director, directly participate in making of a policy and monitoring its implementation at
organisational level.
They look into issues put up at board level with workers’ perspective, and at the same time, communicate management’s
perspective to the workers.
Workers felt their number was too small to make an impact, and in many cases the Worker Directors felt intimidated by
the presence of many Non-Worker Directors, who all came from social and educational strata superior to that of workers
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• At that time most of the recognised unions in Public Sector Undertakings (PSUs) controlled by the Centre were affiliated
to Indian National Trade Union Congress (INTUC).
• Hence it became easy to nominate the national INTUC president or the general secretary on most boards.
• By the 1990s the scheme had almost come to an end and if we consider steel industry, by that time, the lone employee
director was in IISCO, West Bengal
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5. Joint Consultative Machinery
• The Joint Consultative Machinery (JCM) was set up in 1966 by the Government on the basis of the recommendations of
the Second Pay Commission constituted in 1959.
• The scheme of Joint Consultative Machinery, established mainly on the model of the Whitley Councils in the UK,
provides a platform for constructive dialogues between representatives of workers and management for peaceful
resolution of all disputes in organisations where the Government is the employer.
• The scheme is non-statutory and mutually agreed upon between the management and employees.
• The JCMs have three-tier structure, e.g., office-level, department-level and national-level councils.
• Meetings of JCM must be held at least once in 4 months.
• There is a provision for compulsory arbitration on certain matters such as pay and allowances, hours of work and
leaves, in case there is a disagreement at the national-level JCM.
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Challenges in Implementing Workmens’ participation in Management in India
Management is often reluctant to

Non-commitment of the
Lack of education in workers share information or even
management to the schemes
responsibility with workers
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Practice Questions
Joint councils are required to meet once in every____ months.
1. 2
2. 3
3. 4
4. 5
Ans: Option 2
The total number of representatives in Works committees should not exceed ______.
1. 10
2. 20
3. 30
4. 40
Ans: Option 2
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Works committees, safety committees and canteen management committee are the examples of
a) Workmen’s Participation in management

b) Workers’ Education scheme
c) Workers’ Co-operatives
d) Workers’ suggestion schemes
Answer- A
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Chapter 12 --> International Industrial
Relations
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Need for understanding International Industrial Relations
• It is important to learn from successful models in other countries and identify the aspects that may be replicated in
order to improve labour-management relations in a country.
• For eg.-
When after Independence, the Government of India had formed a tripartite committee that visited UK,
Sweden, France, Belgium, West Germany and Yugoslavia to learn the prevalent practices and on returning the
committee made certain recommendations. It agreed upon the constitution, functions and administration of
Joint Councils and also recommended the setting up of Joint Management Councils.
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International Industrial Relations Systems
We will study the Industrial relations systems in different countries with respect to different characteristics.
BIPARTISM / TRIPARTISM
In many of the Asian countries the

In Japan tripartite USA is characterised by the absence
State has adopted a paternalistic
discussions and of bipartite or tripartite formal
approach and considers itself as
consultations commonly institutions or mechanisms for any
protector of workers and holds itself
take place at national-level. dialogue at national-level
responsible for their welfare.
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TRADE UNIONS
• All the major trade union confederations in EU
countries and outside EU are members of the
An important feature of trade unionism in EU European Trade Union Confederation (ETUC).
is a high degree of unity and coherence at
continent level, but there is huge diversity • A number of trade union organisations are also
and sometimes division at national-level. affiliated to the European Confederation of
Independent Trade Unions.
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MODELS OF INDUSTRIAL RELATIONS SYSTEM IN EUROPEAN UNION
• Nordic corporatism
❑ The Nordic corporatism model features high levels of trade union membership, negotiations at
industry-level and relatively centralised bargaining arrangements.
❑ Generally social groups are more integrated into the system and union density is high.
❑ Hence collective agreements apply to majority of workers, without the need for government
intervention.
❑ This model is followed in Scandinavian countries like Denmark, Finland and Sweden.
• Social partnership
❑ This model is based on existence of employers’ associations and trade union confederations as it
depends on strong negotiating parties who can make agreements survive.
❑ The social partnership model exists in countries like Austria, Belgium, Germany, Luxembourg, the
Netherlands and Slovenia.
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MODELS OF INDUSTRIAL RELATIONS SYSTEM IN EUROPEAN UNION
• Liberal pluralism
❑ Labour-management relations are largely based at company-level and can be confrontational (with the
exception of Ireland’s social pacts).
❑ In general, there are fewer laws concerning the labour market, social security, etc.
❑ Union density rates tend to be lower and therefore collective bargaining coverage is restricted, as
negotiations are not centralised and there is no legal means of extending company-level deals industry-
wide.
❑ This model is followed in Ireland, UK, Cyprus and Malta.
• State-centred
❑ Governments in this model exercise more control; unions and employers are also accommodated to a
certain extent to avoid social confrontation.
❑ Union density is often lower in these countries, but collective bargaining coverage may be wider because
of the potential for extension of agreements to non-unionised workplace both by law and via employers’
associations.
❑ It exists in France, Greece, Italy, Portugal and Spain.

• The structure of trade unions in USA is almost

similar to that in Ireland and UK. • China and Vietnam have a communist regime.
• The apex body is the American Federation of • In China, workers are represented by the All China
Labour and Congress of Industrial Federation of Trade Unions and in Vietnam by the
Organizations (AFL-CIO), which is made up Vietnam General Confederation of Labour, both
of a large number of industrial and being the official national centres of trade unions and
occupational unions affiliated with the ruling parties.
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• Japan and Korea have had strong enterprise-level unions.
• Japanese trade union organisations have a three-tier structure: enterprise-based unions, industrial federations
and the national center at the top.
• In the past national trade union centres were divided but were later united in 1989 into a national centre
called the Japanese Trade Union Confederation, or Rengo, which organises majority of the unionised
workers.
• Trade union structure in Japan resembles that in France.
• Rengo works with the national government and employers’ organisations on issues including labour standards, tax
systems and social security, that cannot be dealt with at the industry or enterprise-level.
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COLLECTIVE BARGAINING
❑ Collective bargaining may be said to be much more centralised in EU than Japan and USA, though there is no
uniformity between the members of EU .
❑ Enterprise-level bargaining is a common approach in East Asian countries.
• Malaysia and Singapore

➢ The governments have adopted a policy of enterprise or ‘in house’ unionism for securing cooperation, though
sectoral bargaining is also picking up gradually.
➢ Both these governments have imposed restrictions on collective bargaining as in both the countries certain
issues like transfer, promotion, retrenchment, lay-off, etc. are considered management prerogatives and
collective agreements on these issues require certification by the Industrial Court, which can even refuse the
certification if the provisions are harmful to the national interest.
• Europian Union
➢ Issues like pay and work conditions are not subject to collective bargaining at sectoral or inter-sectoral EU
level.
• USA
➢ Many unions seek to conduct ‘pattern bargaining’, whereby an agreement is arrived at in a particular
company or companies and then extended to other firms in the sector.
COLLECTIVE BARGAINING
• Japan
➢ Enterprise-level bargaining is characterised by almost complete autonomy of the employer and enterprise-
based unions, with no external participation.
➢ However, it may be noted that there is coordination from both trade union and employers’ sides during the
annual spring-time negotiations or Shunto.
➢ The pattern followed in these negotiations is that major manufacturers in leading industries are the first ones
to participate in bargaining, followed by other large companies and later by small enterprises.
• The Spring Labour Offensive (known as Shunto) began in 1956 as an annual unified struggle by labour unions in
all industries, in which they come up with the central demand of simultaneous wage increases.
• Rengo changed its name from ‘the Spring Labour Offensive’ to ‘The Spring Struggle for a Better Life’
LABOUR WELFARE AND SOCIAL SECURITY

• Welfare amenities provided to workers essentially depend on the level of economic development of a
country.
• Japan
➢ The public pension system to provide income security for the elderly, survivors and persons with disability.
➢ Healthcare systems to protect public health include health insurance, public health and maternal and child
health systems.
➢ Care services and financial support for persons with disabilities,
➢ A system to protect workers through employment insurance, work-related accident insurance, etc.
• Europian Union
➢ EU countries have their own social security legislations that decide their specific beneficiaries and benefits
• UK
➢ National insurance in UK accounts for over half of the expenditure on social security in the country
➢ Income support for people with low income, job seeker’s allowance, child benefit, housing benefit that supports
in paying all or part of house rent, council tax benefit, disability living allowance, invalid care allowance, state
pension etc.
LABOUR WELFARE AND SOCIAL SECURITY

• France
➢ French social security benefits can be categorised into five branches: sickness, maternity, paternity and death;
accidents-at-work and occupational-diseases; retirement; family benefits; and unemployment benefits
• USA
➢ In USA there are two principal federal programmes offering support for the elderly:
a. Old Age, Survivor’s and Disability Insurance (OASDI), commonly known as Social Security, and
b. Medicare.
➢ Social Security provides retirement income to the elderly, while Medicare provides health insurance coverage
for the aged and disabled and is funded partly by payroll taxes and premium payments by retirees, and rest by
the federal government.
➢ In addition, the Supplemental Security Income (SSI) programme serves as a safety net to ensure that the
elderly and disabled have a minimum level of income if their pension benefits are very low or if they do not
qualify for Social Security.
WORKERS’ PARTICIPATION IN MANAGEMENT
• Idea of workers’ participation had originated in Europe.
• The majority of EU Member States have provisions in their legislation for some kind of employee representation
at board-level
• In many Japanese companies a consensus is sought at all levels before taking a decision. It is called ringi.
• Workers’ participation in USA stands for negotiation, administration and collective bargaining, and is based on
free choice.
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Practice Questions
In Japan tripartite discussions and consultations commonly take place at _______________________.

1. Industry level
2. Regional level
3. Enterprise level
4. National level
Ans: Option 4
An annual unified struggle by labour unions in all industries in Japan, in which they come up with the central demand of
simultaneous wage increase is known as _________.
1. Ringi
2. Rengo
3. Shunto
Ans: Option 3
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Chapter 12 --> International Industrial
Relations
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International Labour Organisation
 The International Labour Organisation is a specialised agency of the United Nations Organisation (UNO) that aims
at improving labour standards at global level.
 It has a tripartite structure having representatives of governments, employers and workers, and provides a forum
for discussion of labour issues and policies.
 Currently the ILO has 187 Member States.
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Origin
The ILO was created in 1919, as part of the Treaty of Versailles that brought an end to World War I.
ILO’s main objectives are to establish social justice for maintaining peace and harmony in the world, and to promote
human and labour rights.
Its Preamble states that:
1) Whereas universal and lasting peace can be established only if it is based upon social justice.
2) And whereas conditions of labour exist involving such injustice hardship and privation to large numbers of people
as to produce unrest so great that the peace and harmony of the world are imperiled; and an improvement of
those conditions is urgently required.
3) Whereas also the failure of any nation to adopt humane conditions of labour is an obstacle in the way of other
nations which desire to improve the conditions in their own countries.
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• In its 26th Session in 1944, the General Conference of ILO brought out the ‘Declaration of Philadelphia’, which
was incorporated into ILO’s Constitution.
• It reaffirmed the principles of ILO, which are as following:
a) labour is not a commodity

b) freedom of expression and of association are essential to sustained progress;
c) poverty anywhere constitutes a danger to prosperity everywhere
d) the war against want requires to be carried on with unrelenting vigour within each nation, and by continuous
and concerted international effort in which the representatives of workers and employers, enjoying equal status
with those of governments, join with them in free discussion and democratic decision with a view to the
promotion of the common welfare.
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The Declaration set forth the ten objectives of ILO, which are:
1. Full employment and the revising of standards of living.

2. The employment of workers in the occupation in which they can have the satisfaction of giving the fullest measure
of their skill and make their contribution to the common well being.
3. The provision, as means to the attainment of this end, and under adequate guarantees for all concerned, of facilities
for training and the transfer of labour, including migration for employment and settlement.
4. Policies in regard to wages and earning, hours and other conditions of work calculated to ensure a just share of the
fruits of progress to all, and a minimum living wage to all employed and in need of protection.
5. The effective recognition of the right of collective bargaining, the cooperation of management and labour in the
continuous improvement of productive efficiency and the collaboration of workers and employers in social and
economic measures.
6. The extension of social security measures to provide a basic income to all in need of such protection and
comprehensive medical care.
7. Adequate protection for the life and health of workers in all occupations.
8. Provision for child welfare and maternity protection.
9. The provision of adequate nutrition, housing and facilities for recreation and culture.
10. The assurance of equality of educational and vocational opportunity.
Membership
• Following shall be the members of ILO

• The States that were the members of ILO on 1st November 1945,
• Any original member of UNO and
• any State that attained membership of the United Nations by a decision of the General Assembly may become
a member of the ILO.
• The concerned State must give its formal acceptance of the obligations of the Constitution to the Director-General
of the International Labour Office
• The General Conference of the ILO may also admit a State as member by a vote of two-thirds of the delegates
attending the session, including two-thirds of the Government delegates present and voting.
WITHDRAWAL
• The Constitution of ILO provides that any member of ILO may withdraw its membership after giving notice to the
Director-General of the Office.
• Such notice shall take effect 2 years after the date of receipt, subject to the condition that the member has fulfilled
all financial obligations arising out of its membership at that time.
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Structure
ILO carries out its functions through three main bodies:
• the International Labour Conference,
• the Governing Body and
• the International Labour Office.
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The International Labour Conference

• The International Labour Conference is also called as the International parliament of labour.
• Functions :-
 Its main function is to set labour standards and general policies of ILO.
 It provides a forum for discussion of social and labour-related issues.
 It also adopts the ILO’s budget and elects the Governing Body.
• The Conference meets once a year in Geneva and has been continuing to meet every year since its first session in
1919, except for the interruption due to World War II.
• The annual meeting is attended by the delegates of governments, workers and employers of ILO Member States.
• The delegation of each Member State consists of two government delegates, one employer delegate, a worker
delegate and their respective advisers.
• Generally the government representatives are ministers and officials responsible for labour affairs, while the
employer and worker delegates are nominated by the respective government in agreement with organisations of
employers and workers important at national-level.
• Every delegate has equal rights and has one vote.
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The Governing Body

• The Governing Body is the executive body of the ILO.
• It meets thrice in a year.
• Functions :-
 Take decisions on ILO policy;
 decide agenda of the International Labour Conference;
 scrutinise the budget of the ILO for submission to the Conference;
 elect the Director-General of the Office; and
 look after the implementation of the Recommendations and Conventions of ILO.
• It has 56 titular members (28 governments, 14 employers, and 14 workers) and 66 deputy members (28
governments, 19 employers and 19 workers). Out of 28 titular government seats, 10 are permanently held by
States of chief industrial importance. Since 1922 India has been holding one of these 10 seats. The other
government members are elected by the Conference every 3 years. The employer and worker members are elected
in their individual capacity.
Prior to the adoption of a Convention or Recommendation, the Governing Body ensures proper preparation on the subject
and adequate consultation of the concerned members by means of a preparatory conference or other means.
International Labour Office

• The International Labour Office is the Secretariat of the ILO.
• The Office has a Director-General, who is elected every 5 years by the Governing Body.
• The Director-General is responsible for the efficient conduct of the Office and other duties as may be assigned.
• It is the centre of the activities of ILO.
• It has headquarters in Geneva and many field offices around the world. The Office has a research and
documentation centre.
Functions:-
• Collection and distribution of information on all matters related to labour conditions in the world, particularly those
subjects which it proposes to bring before the Conference with the objective to conclude international Conventions
and Recommendations.
• Conduct of research on certain matters as may be ordered by the Conference or by the Governing Body.
• As per the directions of the Governing Body the Office must:
 prepare the documents on the various items of the agenda for the meetings of the Conference;
 carry out the duties regarding the effective observance of Conventions.
Conventions and Recommendations
• ILO draws international labour standards that are legal instruments and set out basic principles and rights at
work.
• These standards may either take the form of Conventions, which are legally binding international treaties
that may be ratified by Member States, or Recommendations, which act as non-binding guidelines. In many
cases, a Convention lays down the basic principles to be implemented by ratifying countries, while a related
Recommendation supplements the Convention by providing more detailed guidelines on how it could be applied.
Recommendations can also be autonomous, i.e., not linked to any Convention.
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Conventions and If it is ratified, a Convention generally

Recommendations Once a standard is adopted, comes into force for that country a year
are drawn up by Member States are required under after the date of ratification.
representatives of the ILO Constitution to submit them Ratifying countries have to apply the
governments, to their competent authority Convention in their laws and practice
employers and (normally the parliament) for and must report on its application at
workers and are consideration. In the case of regular intervals.
adopted at the conventions, this means If the countries violate the Convention
International Labour consideration for ratification. they have ratified, there is a provision of
Conference. moving representation and complaint
against them.
If a member has ratified any International Labour Convention and later withdraws from the membership of
ILO, such withdrawal shall not affect the continued validity for the period provided for in the Convention of all
obligations arising thereunder or relating thereto.
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India and The International Labour Organisation
India has so far ratified 43 Conventions of ILO, including the 4 core Conventions (out of the total 8), which are
Forced Labour Convention (No. 29), Abolition of Forced Labour Convention (No. 105), Equal Remuneration
Convention (No. 100), Discrimination (Employment Occupation) Convention (No. 111).
India has adopted a policy that Process of ratification begins when the Director-General
first the national laws and of International Labour Office sends a certified copy of
policy will be brought into the Convention or Recommendation to the Central
conformity with the provisions Government, which then circulates it to all the State
of the Convention, which is Governments, concerned Ministries of the Government
done through an amendment. of India and the employers’ and workers’ organisations.
• These bodies give their observations and suggestions.

• The Central Government then prepares a statement on action proposal which is placed before the Parliament for
discussion.
• Copies of the statements are thereafter forwarded to the ILO and to the State Governments, and employers’ and
workers’ organisations.
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India and The International Labour Organisation
Many provisions in various labour legislations in India have been incorporated as a result of ratification of ILO
Conventions by the Government. For eg.-
• Provisions regarding working hours and weekly rest were incorporated in protective legislations like the
Factories Act, 1948, the Mines Act, 1952, the Plantations Labour Act, 1951 and the Beedi and Cigar Workers
(Conditions of Employment) Act, 1966 as a result of ratification of Hours of Work (Industry) Convention, 1919
in 1921 and the Weekly Rest (Industry) Convention (No. 14), 1921 in 1923.
• The Minimum Wage Fixing Machinery Convention (No. 26), 1928 and the Minimum Wage Fixing Machinery
Convention (No 121), 1970 have influenced the Minimum Wages Act, 1948.
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Practice Questions
How many member states does the ILO have?
1. 183
2. 184
3. 185
4. 187
Ans: Option 4
The Director General of International Labour Office is elected for ___________ years.
1. 3
2. 4
3. 5
4. 6
Ans: Option 3
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Which one of the following is not a part the aims and purposes of the ILO as per Philadelphia Declaration?
a) Labour is not a commodity

b) Freedom of expression and of association are essential to sustained progress
c) Poverty anywhere constitutes danger to prosperity everywhere
d) The war against want requires to be carried on with unrelenting
Whih vigour within which each nation and is solely the
responsibility of the government
Answer- D
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Chapter 13 --> Industrial Health & Safety
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Industrial Health & Safety
Introduction
• Industrial health encompasses all the measures undertaken to promote physical well-being, maintain sanitation at
workplace and prevent occupational diseases amongst workers.
• Industrial safety includes all the activities undertaken to generate awareness amongst workers and
implementation of safety measures so as to prevent accidents in industry.
“Occupational Safety and Health” & “Industrial Safety & Health” means the same.
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Need for Industrial Health & Safety
Skill Loss
• Due to Partial or permanent disablement in workers, and
sometimes death, organisation loses its human asset and skills.
Time Loss Hassles of Legal Proceedings

• Time efforts for formalities • Involvement in legal proceedings may
• Halt of work consume a lot of time, energy and
resources for an organisation.
Financial loss
• Loss of physical assets Tarnished Public Image
• Compensation paid to victims • Accidents at workplace not only result
• Loss of productivity in material losses, but also tarnish the
• Cost of recruitment and training public image of the organisation.
Accidents
An accident to be any unexpected occurrence where there is causation or probability of damage to physical objects
and injury to living beings.
Risk is defined as “a combination of the likelihood of an occurrence of a hazardous event and the severity of injury or
damage to the health of people caused by this event”.
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Theory of Accidents
The Domino Theory
According to W.H. Heinrich (1931),

He proposed a “five-factor accident sequence” in which
88% of all accidents are caused by
each factor would actuate the next step in the manner of
unsafe acts of people, 10% by unsafe
toppling dominoes lined up in a row.
actions and 2% by “acts of God”.
The sequence of accident factors is as follows:

1. ancestry and social environment
2. worker fault
3. unsafe act together with mechanical and physical
hazard
4. Accident
5. damage or injury.
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Theory of Accidents
Multiple Causation Theory
It postulates that for a single

accident there may be many According to this theory, the contributory factors can be
contributory factors, causes and sub- grouped into the following two categories:
causes, and that certain
combinations of these give rise to
accidents.
Behavioural Environmental
This category includes factors This category includes improper

pertaining to the worker, such as guarding of other hazardous work
improper attitude, lack of knowledge, elements and degradation of
lack of skills and inadequate physical equipment through use and unsafe
and mental condition. procedures.
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Theory of Accidents
Pure Chance Theory
According to the pure chance theory, every

one of any given set of workers has an equal In this theory, all accidents are treated as
chance of being involved in an accident. It corresponding to Heinrich’s acts of God, and it is
further implies that there is no single held that there exist no interventions to prevent
discernible pattern of events that leads to an them.
accident.
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Theory of Accidents
Biased Liability Theory
Biased liability theory is based on the view

that once a worker is involved in an accident, This theory contributes very little, if anything at
the chances of the same worker becoming all, towards developing preventive actions for
involved in future accidents are either avoiding accidents.
increased or decreased as compared to the
rest of workers.
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Theory of Accidents
Accident Proneness Theory
Accident proneness theory maintains that

within a given set of workers, there exists a
subset of workers who are more liable to be This theory is not generally accepted.
involved in accidents.
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Theory of Accidents
The Energy Transfer Theory
Those who accept the energy transfer theory

put forward the claim that a worker incurs This theory is useful for determining injury
injury or equipment suffers damage through causation and evaluating energy hazards and
a change of energy, and that for every change control methodology. Strategies can be developed
of energy there is a source, a path and a which are either preventive, limiting or
receiver. ameliorating with respect to the energy transfer..
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Theory of Accidents
The “Symptoms versus Causes” Theory
Usually, when investigating accidents, we

tend to fasten upon the obvious causes of Unsafe acts and unsafe conditions are the
the accident to the neglect of the root symptoms—the proximate causes—and not the
causes. root causes of the accident.
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Practice Questions
________________ is defined as probability or likelihood of an unexpected occurrence which can lead to damage to property
and injury to living beings?
1. Accident
2. Risk
3. Industrial Health
4. Industrial Safety
Ans: Option 2
The _________________ theory believes in going deep to investigate the root causes of an accident rather than the obvious
causes .
1. Symptom versus causes

2. Energy transfer
3. Accident proneness
4. Biased Liability
Ans: Option 1
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Chapter 13 --> Industrial Health & Safety
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Factors giving rise to accidents
Human Factors Mechanical Factors
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Human Factors
❑ Human factors include those causes of accidents which are related in some way to individuals and account for one
of the most important causes of accidents.
❑ The reason for occurrence of human error may be attributed to both physical and psychological factors
Worker Related Human Factors Management Related Human Factors
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Worker Related Human Factors
Personality Attitudinal
Habits Stress Unsafe Acts
Variables Problems
• The accident • A general careless • Certain habits of • There is a direct • Unsafe acts are
proneness theory attitude towards workers may result relationship those human
says that some work and things, in accidents. between job stress actions that arise
people are more laziness, • For example, and occupational out of errors that
likely to have clumsiness, etc. all coming drunk to accidents, are potentially
accidents due to impact workplace workplace may be • Work overload is hazardous and can
the presence of safety. a cause of supposed to be the cause an accident.
certain permanent • Employee attitudes accidents. prime cause of • These human
personality have been found industrial stress, errors occur when
variables to be an indicator which may workers deviate
of safety culture in generate a feeling from the standard
organisations. of anger, fatigue, job procedures,
confusion and which may expose
anxiety in workers them to the risk of
accidents
Management Related Human Factors
Laxity in
Unsound recruitment
Implementation of Inadequate Training Flaws in job design Poor supervision
policies
safety norms
• A casual attitude of • Lack of proper • Ergonomics is the • Selecting the right • Lack of proper and
management training in terms of scientific discipline person for a job is a regular monitoring
towards safety may time or content concerned with the factor that cannot may result in
ultimately result in regarding use of understanding of be ignored in problems escaping
accidents. machines, safety the interactions maintaining the attention of
• Most accidents take equipment and among humans and workplace safety supervisors.
place because small gadgets is a other elements of a • Some of the
issues are either potential threat and system, and the important aspects • Workers must be
neglected or may be a precursor profession that to be considered in monitored if they
overlooked. to accidents. applies theoretical a candidate for are using safety
principles, data and person-job fit are gadgets or if they
methods to design physical are complying with
in order to optimise characteristics safety rules or not.
human well-being (body size and
and overall system shape, strength and
performance posture), senses
(vision, hearing and
• Ergonomics need to touch), mental
be considered while abilities and work
designing jobs. experience
Mechanical Factors
❑ Mechanical factors may be understood as those causes of accidents that do not involve any human error.
❑ These include failure of machines and control systems and problems in safety gadgets.
Failure of machines and control systems Problems in safety gadgets

Sometimes accidents occur even when no Faulty design or poor quality of safety
human fault is involved due to machine gadgets like helmets, gloves, respirators
failure at some crucial juncture of work and the like are another reason of
process. accidents.
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Occupational Safety and Hazards
• Occupational hazard may be defined as a risk to the health or life of an employee associated, inherent in the nature
of an occupation or work environment.
• For example, mining and excavation work has certain unique hazards associated with it.
• According to the ILO, Occupational Diseases are the disease known, under prescribed conditions, to arise out of
exposure to substances or dangerous conditions in processes, trades or occupations.
• For example, Prolonged use of computer can cause musculoskeletal problems, as corroborated by several studies
• Even Mental and behavioural disorders have found a place in the list approved in the 307th Session of ILO.
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Occupational Safety and Hazards
Disease Industry
Byssinosis Textile Industry
Pneumoconiosis Coal workers
Silicosis Coal and stone quarrying
Mercury poisoning Charco-alkali plants
Dermatitis Mineral oil handling
ECG abnormalities Viscose rayon industry
Lead poisoning Lead handlers, printing and battery manufacturing
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Some of the Statutory provisions related to Health & Safety of workers
Plantation Labour Act,1951
• The Plantations Labour (Amendment) Act, 2010 provides a new Chapter IVA to cover all aspects of safety and
occupational health of workers in plantations.
• It includes provisions regarding safety measures to be adopted in the use, handling, storage and transport of
insecticides, chemicals and toxic substances, as given in Section 18A(1).
• The amended Act also empowers State Governments to make rules for prohibiting or restricting employment of
women or adolescents in using or handling hazardous chemicals, provided in Section 18A(2).
• Every employer shall ensure that every worker in plantation employed for handling, mixing, blending and applying
insecticides, chemicals and toxic substances, is trained about the hazards involved in different operations in which
he is engaged, the various safety measures and safe work practices to be adopted in emergencies arising from
spillage of such insecticides chemicals and toxic substances and such other matters as may be prescribed by the
State Government [Section 18A(4)].
• Section 18A(6) provides that every employer shall maintain health record of every worker who is exposed to
insecticides, chemicals and toxic substances which are used, handled, stored or transported in a plantation, and
every such worker shall have access to such record.
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The Shop and Establishments Act
• The Shops and Establishments Act is a State-enactment.
• Chapter VIII of the Bombay Shops and Establishments Act, 1948 provides for health and safety of employees by way
of cleanliness, ventilation, lighting, precautions against fire and first-aid in sections 39, 40, 41, 42 and 42A
respectively.
• Similarly Chapter V of the Tamil Nadu Shops and Establishments Act, 1947 has provisions for health and safety of
workers, specifically cleanliness (Section 20), ventilation (Section 21), lighting (Section 22), and precautions against
fire (Section 23).
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Mines Act, 1952
• The Act grants certain powers to the Inspectors in Section 22 to maintain and monitor safety of mine workers, and
suitability of conditions in mines for employment.
• Section 22A(1) empowers inspectors to prohibit employment under certain situations where the employer has
failed to comply with the provisions relating to safety.
• Section 23 lays down the provision for notice to be given by the owner, agent or manager of a mine of the occurrence
of an accident, in a prescribed manner and place.
• The Central Government is empowered to appoint a court of enquiry in case of accidents (Section 24).
• Section 25 mandates notification by the owner, agent or manager of a mine if any person employed in the mine
contracts any notified disease.
• The Central Government, as per Section 26, has the power to direct investigation of causes of notified disease(s) that
have been or suspected to have been contracted in a mine.
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Non Statutory Safety Measures
Certain non-statutory safety measures may be voluntarily taken up by organisations to maintain safety.
1. DISCIPLINE
• Maintaining proper discipline at workplace
• Over adherence to discipline may have just
ensures safety.
the opposite outcomes; in fact workers may
• Workers must adhere to discipline and follow
not report injury due to fear and disciplinary
the prescribed norms for maintaining
actions may evoke resentment.
workplace safety.
• In this regard, the ‘hot stove rule’ of McGregor may prove to be useful.
• According to this rule, there are four characteristics which must be applied for maintaining
discipline.
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Non Statutory Safety Measures
The Hot Stove Rule
Immediate feedback: Prior warning:

• When you touch a hot stove, you burn your hand. • The red hot stove was a warning in itself that
• The burn was immediate and the pain was a result of whosoever touches it would get burnt.
your action. • You ignored the warning and touched it; hence
• You cannot blame the hot stove for burning your hand; you got punished.
rather you would understand your fault and learn a • Similarly, if any employee, despite knowing safety
rules and regulations of the organisation, chooses
lesson of not repeating the act. to ignore the warning, he/she will have to pay the
• Similarly, management must take immediate action penalty as the organisation had already made its
against indiscipline and ensure that it is not directed at employees aware of the consequences.
any person, but his/her actions.
Impersonal nature:
• You touched the hot stove and got burnt.
Consistency: • It was not directed against you, but your actions;
• Every time you touch a hot stove, you get burnt. anyone who touches a hot stove would feel the
same pain.
• Management must also be consistent in disciplining
unsafe acts of works. • Whosoever touches the hot stove, will get burnt.
• Management must adopt the same approach.
• Discipline must be directed against the act, not
the person.
Industrial Health and Safety
2. TRAINING
Knowledge of hazards provided by The Industrial Safety Division of the DGFASLI aims
worker training programmes is at achieving improvement in working conditions
presumed to result in fewer incidents and safety standards of factories and docks through
and accidents training, consultancies, field studies and surveys.
Specialised training courses are conducted for

senior managers, safety officers, supervisors, trade
union officials and safety committee members from
the industry
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3. COUNSELING
• Employee counseling may prove to be

helpful in changing human variables Counseling can be a part of
like safety attitude and habits. Employee Assistance Programmes
• It also assists employees in dealing which are widely used in
with stress and improving their organisations today.
efficiency.
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4. Creating a safety climate and safety culture
The Health and Safety Executive further identifies

• Safety Climate is the content and the five indicators of safety climate in an
context of employee behaviour in an organisation as
organisation. a. Leadership
• Safety Climate refers to values, attitudes b. two-way communication
and perceptions of employees regarding c. employee involvement,
safety. d. learning culture and
e. attitude towards blame.
Training can result in the desired behavioural changes in employees only if they desire such change. This desire can
be inculcated through if a supporting work climate exists in the organisation
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5. GENERATING AWARENESS
Organisations may conduct workshops and Safety posters and slogans are other means
special awareness sessions at regular intervals on to generate awareness about significance of
occupational safety and health issues. safety amongst workers.
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Administration of Industrial Health and Safety
Occupational health and safety in India is

managed at three levels: Central-level, Welfare of workers falls in the Concurrent List.
State-level and plant-level.
• The Director General, DGFASLI is also the Chief Inspector of Dock Safety
under the Dock Workers (Safety, Health and Welfare) Act, 1986 in respect
of major ports.
• The Directorate General of Mines Safety deals with safety and health issues
of mine workers.
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Practice Questions
Worker-related causes of accidents originate from ______________________aspects of workers.
1. Physical
2. Behavioural
3. Psychological
4. All of the above
Ans: Option 4
____________is a study of interaction between humans and work to optimise human well-being and enhance work
performance.
1. Economics
2. Ergonomics
3. Human Research
4. Resource utilisation
Ans: Option 2
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Labour laws- Introduction
Welcome to the journey of Labour Laws.

- CA Rajat Bagga
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Introduction to Labour Laws
Meaning of Labour Law
• A law relating to the rights and responsibilities of workers. Also known as employment law.
• Labour law mediates the relationship between workers, employing entities, trade unions and the government.
The laws are made by the Government.
The relationship between workers and employers need to be regulated so

that workers are provided with fundamental benefits and are not harassed.
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How many labour laws are there in India?
There are about 44 labour laws in India which are at Central level and many other state level labour laws.
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What do you mean by codification of Labour Law?
Codification is the process of collecting and restating the law of a jurisdiction in certain areas, usually by subject,
forming a legal code.
There were a lot of labour laws on similar topics which were required to be consolidated. India also began to codify its
labour laws into 4 codes.
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The Labour Ministry has decided to amalgamate 44 Labour Laws into Four codes-
1) Code on Wages
2) Code on Industrial Relations
3) Code on Social Security and safety
4) Code on Health and working conditions
Till date, only Code on Wages has received the assent of The
President of India and is passed. Rest 3 are pending.
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Which all Labour Laws will subsists in The Code On Wages?
1. Minimum Wages Act
2. Payment of Wages Act
3. Payment of Bonus Act
4. Equal Remuneration Act
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On Which day The Code on Wages was passed?
 The bill was passed by the Lok Sabha on 30 July 2019.
 The bill was passed by the Rajya Sabha on 2 August 2019.
 The bill received assent from President Ram Nath Kovind on 8 August,2019.
 It was introduced by Santosh Gangwar.
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So we shall be studying
• The Code on Wages
• Some other relevant labour laws.
As the other codes are not yet passed by the Government, there is no need to cover them.
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Video 2 --> Code on Wages
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Chapter I – Code on Wages
Industrial dispute means—
i. Any dispute or difference between employers and employers, or between employers and workers or between
workers and workers which is connected with the employment or non-employment or the terms of employment or
with the conditions of labour and
ii. Any dispute or difference between an individual worker and an employer connected with of, discharge, dismissal,
retrenchment or termination of such worker.
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Same work or work of a similar nature means work in respect of which the skill, effort, experience and responsibility
required are the same, when performed under similar working conditions by employees and
the difference if any, between the skill, effort, experience and responsibility required for employees of any gender, are
not of practical importance in relation to the terms and conditions of employment.
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WAGES
❑ Wages means all remuneration whether by way of salaries, allowances or otherwise, expressed in terms of money or
capable of being so expressed which would, if the terms of employment, were fulfilled, be payable to a person
employed in respect of his employment and includes,—
i. basic pay
ii. dearness allowance; and
iii. retaining allowance, if any,
WAGES
▪ Wages does not include––
a) any bonus payable which does not form part of the remuneration payable under the terms of employment;
b) the value of any house-accommodation, or of the supply of light, water, medical attendance or other amenity
or of any service excluded from the computation of wages by a general or special order of the appropriate
Government
c) any contribution paid by the employer to any pension or provident fund, and the interest which may have
accrued thereon
d) any conveyance allowance or the value of any travelling concession
e) any sum paid to the employed person to defray special expenses entailed on him by the nature of his
employment
f) house rent allowance
g) remuneration payable under any award or settlement between the parties or order of a court or Tribunal
h) any overtime allowance
i) any commission payable to the employee;
j) any gratuity payable on the termination of employment;
k) any retrenchment compensation or other retirement benefit payable to the employee or any ex gratia payment
made to him on the termination of employment.
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WAGES
For calculating the wages under this clause, if payments made by the employer to the employee under clauses (a) to (i)
exceeds one-half of the all remuneration calculated under this clause, the amount which exceeds such one-half shall be
deemed as remuneration and shall be accordingly added in wages under this clause.
Where an employee is given in lieu of the whole or part of the wages payable to him, any remuneration in kind by his
employer, the value of such remuneration in kind which does not exceed fifteen per cent. of the total wages payable to
him, shall be deemed to form part of the wages of such employee
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WAGES
Where an employee is given in lieu of the whole or part of the wages payable to him, any remuneration in kind by his
employer, the value of such remuneration in kind which does not exceed fifteen per cent. of the total wages payable to
him, shall be deemed to form part of the wages of such employee.
If total wages is Rs. 10,000/-
A) Value of remuneration in kind = Rs.2500--> Total wages = Rs.11500/-

B) Value of remuneration in kind = Rs. 1200--> Total wages = Rs.11200/-
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Worker means any person (except an apprentice) employed in any industry to do any manual, unskilled, skilled,
technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or
implied, and includes—
i. working journalists and
ii. sales promotion employees
and for the purposes of any proceeding under this Code in relation to an industrial dispute, includes any such person
who has been dismissed, discharged or retrenched or otherwise terminated in connection with that dispute
but does not include any such person––

a) who is subject to the Air Force Act, 1950, or the Army Act, 1950, or the Navy Act, 1957; or
b) who is employed in the police service or as employee of a prison; or
c) who is employed mainly in a managerial or administrative capacity; or
d) who is employed in a supervisory capacity drawing wage of exceeding fifteen thousand rupees per month or an
amount as may be notified by the Central Government from time to time.
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Section 1 --> Chapter I – Code on Wages
This Act may be called the Code on Wages, 2019.
It extends to the whole of India.
• It shall come into force on such date as the Central Government may, by notification in the Official Gazette appoint
and
• Different dates may be appointed for different provisions of this Code.
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DEFINITIONS
• Accounting year means the year commencing on the 1st day of April.
• Agricultural income tax law means any law for the time being in force relating to the levy of tax on agricultural income.
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APPROPRIATE GOVERNMENT
In relation to,
• an establishment carried on by or under the authority of the Central Government or
• the establishment of railways, mines, oil field, major ports, air transport service,
telecommunication, banking and insurance company or
• a corporation or other authority established by a Central Act or
• a central public sector undertaking or subsidiary companies set up by central public
sector undertakings or
• autonomous bodies owned or controlled by the Central Government,
• central public sector undertakings, subsidiary companies or autonomous bodies, Central Government
In relation to any other establishment.
State Government
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Contractor means a person, who —
a) undertakes to produce a given result for the establishment, other than a mere supply of goods or articles of
manufacture to such establishment, through contract labour or
b) supplies contract labour for any work of the establishment as mere human resource and includes a sub-contractor.
1. Supplies contract labour (Manpower contractor) OR

2. Takes a contract for producing some results.(Civil works
contractor, Food contractor)
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Contract labour means a worker who shall be deemed to be employed in an establishment when he is hired by or
through a contractor with or without the knowledge of the principal employer and
• includes inter-State migrant worker but
• does not include a worker who ––
▪ is regularly employed by the contractor for any activity of his establishment and his employment is governed by
mutually accepted standards of the conditions of employment (including engagement on permanent basis), and
▪ gets periodical increment in the pay, social security coverage and other welfare benefits in accordance with the law
for the time being in force in such employment
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Employee means, any person (other than an apprentice) employed on wages by an establishment to do any
skilled, semi-skilled or unskilled, manual, operational, supervisory, managerial, administrative, technical or clerical work
for hire or reward, whether the terms of employment be express or implied,
but does not include any member of the Armed Forces of the Union.
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Employer means a person who employs, one or more employees in his establishment and
• where the establishment is carried on by any department of the Central Government or the State Government, the
authority specified, by the head of such department, in this behalf or
• where no authority, is so specified the head of the department and
• in relation to an establishment carried on by a local authority, the chief executive of that authority, and includes,
❑ In relation to an establishment which is a factory, the occupier of the factory and

where a person has been named as a manager of the factory, the person so named
❑ In relation to any other establishment, the person who has ultimate control over the affairs of the establishment and
where the said affairs is entrusted to a manager or managing director, such manager or managing director
❑ Contractor; and
❑ Legal representative of a deceased employer;
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Establishment means any place where any industry, trade, business, manufacture or occupation is carried on and
includes Government establishment.
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Section 3 -->Chapter I – Code on Wages
Prohibition of discrimination on ground of gender
1) There shall be no discrimination in an establishment among employees on the ground of gender in matters relating to
wages by the same employer, in respect of the same work or work of a similar nature done by any employee.
2) No employer shall—
i. for the purposes of complying with the provisions of sub-section (1), reduce the rate of wages of any employee
and
ii. make any discrimination on the ground of sex while recruiting any employee for the same work or work of similar
nature and in the conditions of employment, except where the employment of women in such work is prohibited
or restricted by or under any law for the time being in force.
NO DISCRIMINATION
Section 4 -->Chapter I – Code on Wages
Decision as to disputes with regard to same or similar nature of work
Where there is any dispute as to whether a work is of same or similar nature for the purposes of section 3, the
dispute shall be decided by such authority as may be notified by the appropriate Government.
Disputes regarding similarity of work be decided by authority appointed by AG.
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Section 5 -->Chapter II – Code on Wages
Payment of minimum rate of wages
No employer shall pay to any employee wages less than the minimum rate of wages notified by the appropriate
Government.
Wages shall not be less than minimum wages.
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Section 6 --> Chapter II – Code on Wages
Fixation of minimum wages
1) The appropriate Government shall fix the minimum rate of wages payable to employees.
2) The appropriate Government shall fix a minimum rate of wages––

a) for time work; or
b) for piece work.
3) Where employees are employed on piece work, the appropriate Government shall fix a minimum rate of wages for
securing such employees a minimum rate of wages on a time work basis.
4) The minimum rate of wages on time work basis may be fixed in accordance with any one or more of the following
wage periods, namely:––
(i) by the hour; or
(ii) by the day; or
(iii) by the month.
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5) For the purpose of fixation of minimum rate of wages under this section, the appropriate Government,—
a) shall primarily take into account the skill of workers required for working under the categories of unskilled,
skilled, semi-skilled and highly-skilled or geographical area or both and
b) may, in addition to such minimum rate of wages for certain category of workers, take into account their
arduousness of work like temperature or humidity normally difficult to bear, hazardous occupations or
processes or underground work as may be prescribed by that Government;
1) Minimum wages shall be on a) Time rate b) Piece rate

2) Employees working on piece rate--> Government shall also fix minimum wages on
time basis
3) Skill, geographical area arduousness of work, hazards associated must be
considered for fixation of minimum wages.
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Components of minimum wages.
❑ Any minimum rate of wages fixed by the appropriate Government may consist of––
a) a basic rate of wages and
b) a cost of living allowance
OR
a) a basic rate of wages with or without the cost of living allowance, and
b) the cash value of the concessions in respect of supplies of essential commodities at concession rates, where so
authorised
OR
a) an all-inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of the
concessions
❑ The cost of living allowance and the cash value of the concessions in respect of supplies of essential commodities at
concession rate shall be computed by such authority, as the appropriate Government may appoint.
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Procedure for fixing and revising minimum wages
1) In fixing or revising minimum rates of wages, the appropriate Government shall either—
a) Appoint as many committees as it considers necessary to hold enquiries or
b) by notification publish its proposals for the information of persons likely to be affected thereby and specify a date
not less than two months from the date of the notification on which the proposals shall be taken into consideration.
2) Every committee appointed shall consist of persons––

i. representing employers;
ii. representing employees which shall be equal in number of the members to employer representative and
iii. independent persons, not exceeding one-third of the total members of the committee.
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Procedure for fixing and revising minimum wages
3) After considering the recommendation of the committee Or all representations received by it before the date
specified, the appropriate Government shall by notification fix or revise the minimum rates of wages and unless
such notification otherwise provides, it shall come into force on the expiry of three months from the date of its issue.
4) Where the appropriate Government proposes to revise the minimum rates of wages in the manner specified in
clause (b) of sub-section (1), it shall also consult concerned Advisory Board.
5) The appropriate Government shall review or revise minimum rates of wages ordinarily at an interval not exceeding
five years.
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Power of Central Government to fix floor wages
1) The Central Government shall fix floor wage taking into account minimum living standards of a worker.
2) Different floor wage may be fixed for different geographical areas.
3) The minimum rates of wages fixed by the appropriate Government under section 6 shall not be less than the floor wage
and
4) If the minimum rates of wages fixed by the appropriate Government earlier is more than the floor wage, then, the
appropriate Government shall not reduce such minimum rates of wages fixed by it earlier.
5) The Central Government may, before fixing the floor wage, obtain the advice of the Central Advisory Board & State
Governments.
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Wages of employee who works for less than normal working day
1) If an employee whose minimum rate of wages has been fixed under this Code by the day,
works on any day on which he was employed for a period of less than the requisite number of hours constituting a
normal working day, he shall, be entitled to receive full normal working day wages in respect of work done on that
day.
2) Exception He shall not be entitled to receive wages for a full normal working day,—
❑ In any case where his failure to work is caused by his unwillingness to work and not by the omission of the
employer to provide him with work.
Works less than full Reason is not Will get full day
day + employees’ fault wages
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Wages for two or more classes of work.
Where an employee does two or more classes of work to each of which a different minimum rate of wages is
applicable, the employer shall pay to such employee in respect of the time respectively occupied in each such class of
work, wages at not less than the minimum rate in force in respect of each such class.
Type A work
• Worked for 4 hrs.
• Wage Rate= 100
Rs. Per hour
Type B work
• Worked for 4 hrs.
• Wage Rate= 150
Rs. Per hour
Total wages= (100*4)+(150*4)=Rs.1000/-

Minimum time rate wages for piece work.
Where a person is employed on piece work for which minimum time rate has been fixed(and not a minimum piece
rate) under this Code, the employer shall pay to such person wages at not less than the minimum time rate.
Employed on piece rate--> But only time rate fixed under Code --> Pay wages
more than time rate
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Fixing hours of work for normal working day
1) Where the minimum rates of wages have been fixed under this Code, the appropriate Government may —
a) Fix the number of hours of work which shall constitute a normal working day inclusive of specified intervals;
b) Provide for a day of rest in every period of seven days which shall be allowed to all employees or to any
specified class of employees and for the payment of remuneration in respect of such days of rest
c) Provide for payment for work on a day of rest at a rate not less than the overtime rate.
2) The provisions of sub-section (1) shall, in relation to the following classes of employees apply, only to such extent
and subject to such conditions as may be prescribed, namely:—
a) employees engaged in any emergency
b) employees engaged in work of the nature of preparatory or complementary work which must necessarily be
carried on outside the limits laid down for the general working in the employment concerned
c) employees whose employment is essentially intermittent
d) employees engaged in any work which for technical reasons has to be completed before the duty is over and
e) employees engaged in a work which could not be carried on except at times dependent on the irregular action
of natural forces.
Fixing hours of work for normal working day
3) Employment of an employee is essentially intermittent when it is declared to be so by the appropriate Government

on the ground that the daily hours of duty of the employee, the hours of duty normally include periods of inaction
during which the employee may be on duty but is not called upon to display either physical activity or sustained
attention.
1. Government will fix number of working hours in a day

2. One day rest in seven days
3. Overtime wages if work on rest day
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Wages for overtime work.
Where an employee whose minimum rate of wages has been fixed under this Code by the hour, by the day or by such a
longer wage-period as may be prescribed,
works on any day in excess of the number of hours constituting a normal working day, the employer shall pay him for
every hour or for part of an hour so worked in excess, at the overtime rate which shall not be less than twice the
normal rate of wages.
Working extra time --> Get overtime--> Overtime rate

minimum 2 times normal wages
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Section 15 --> Chapter III-->Payment of Wages -– >Code on Wages
Mode of payment of wages.
1) All wages shall be paid in

• current coin or
• currency notes or
• by cheque or
• by crediting the wages in the bank account of the employee or
• by the electronic mode.
2) The appropriate Government may specify the industrial establishment, whose employer shall pay the wages only
by cheque or by crediting the wages in his bank account.
Wages only in
❖ Current currency coin or notes
❖ Cheques/ Electronic mode or crediting to bank account
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Fixation of wage period
1) The employer shall fix the wage period for employees either as daily or weekly or fortnightly or monthly subject to the
condition that no wage period in respect of any employee shall be more than a month.
2) Different wage periods may be fixed for different establishments.
Wage period shall be

• Daily
• Weekly
• Fortnightly
• Monthly
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Time limit for payment of wages.
1) The employer shall pay or cause to be paid wages to the employees, engaged on—
i. daily basis, at the end of the shift
ii. weekly basis, on the last working day of the week( before the weekly holiday)
iii. fortnightly basis, before the end of the second day after the end of the fortnight
iv. monthly basis, before the expiry of the seventh day of the succeeding month.
2) Where an employee has been— (i) removed or dismissed from service; or (ii) retrenched or has resigned from
service, or became unemployed due to closure of the establishment, the wages payable to him shall be paid within
two working days of his removal, dismissal, retrenchment or his resignation.
3) The appropriate Government may, provide any other time limit for payment of wages where it considers
reasonable having regard to the circumstances under which the wages are to be paid.
Time limit for payment of wages.
i. daily basis, at the end of the shift

ii. weekly basis, on the last working day of the week( before the weekly
holiday)
iii. fortnightly basis, before the end of the second day after the end of the
fortnight
iv. monthly basis, before the expiry of the seventh day of the succeeding
month.
v. Employee resigned or retrenched or dismissed - Within two working days

of his removal, dismissal, retrenchment or his resignation.
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Deductions which may be made from wages.
1) There shall be no deductions from the wages of the employee, except those as are authorised under this Code.
2) Any payment made by an employee to the employer or his agent shall be deemed to be a deduction from his wages
3) Any loss of wages to an employee, for a good and sufficient cause, resulting from—
i. the withholding of increment or promotion, including the stoppage of an increment or
ii. the reduction to a lower post or time-scale or
iii. the suspension,
shall not be deemed to be a deduction from wages.
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4) Deductions from the wages of an employee shall be made in accordance with the provisions of this Code, and may be
made only for the following purposes, namely—
a) Fines imposed on him
b) Deductions for his absence from duty
c) Deductions for damage to or loss of goods expressly entrusted to the employee for custody; or for loss of money
for which he is required to account, where such damage or loss is directly attributable to his neglect or default;
d) Deductions for house-accommodation supplied by the employer
e) Deductions for such amenities and services supplied by the employer as the appropriate Government or any officer
specified by it in this behalf authorise and such deduction shall not exceed an amount equivalent to the value of
such amenities and services.
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f) Deductions for recovery of—

i. Advances of whatever nature (including advances for travelling allowance or conveyance allowance), and the
interest due in respect thereof, or for adjustment of overpayment of wages
ii. Loans made from any fund constituted for the welfare of labour, as may be prescribed by the appropriate
Government, and the interest due in respect thereof
g) Deductions for recovery of loans granted for house-building or other purposes approved by the appropriate
Government and the interest due in respect thereof
h) Deductions of income-tax or any other statutory levy levied by the Central Government or State Government and
payable by the employee or deductions required to be made by order of a court or other authority competent to make
such order
i) Deductions for subscription to, and for repayment of advances from any social security fund or scheme constituted by
law including provident fund or pension fund or health insurance scheme or fund known by any other name;
j) Deductions for payment of co-operative society subject to such conditions as the appropriate Government may impose
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k) Deductions made, with the written authorisation of the employee, for payment of the fees and contribution payable by
him for the membership of any Trade Union.
l) Deductions for recovery of losses sustained by the railway administration on account of acceptance by the employee of
counterfeit or base coins or mutilated or forged currency notes.
m) Deductions for recovery of losses sustained by the railway administration on account of the failure of the employee to
invoice, to bill, to collect or to account for the appropriate charges due to the railway administration whether in respect
of fares, freight, demurrage, wharfage and cranage or in respect of sale of food in catering establishments or in respect
of commodities in grain shops or otherwise
n) Deductions for recovery of losses sustained by the railway administration on account of any rebates or refunds
incorrectly granted by the employee where such loss is directly attributable to his neglect or default;
o) Deductions, made with the written authorisation of the employee, for contribution to the Prime Minister’s National
Relief Fund or to such other fund as the Central Government may, by notification, specify.
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5) The total amount of deductions which may be made under this section in any wage period from the wages of an
employee shall not exceed fifty per cent. of such wages.
6) Where the total deductions authorised under this section exceed fifty per cent. of the wages, the excess may be
recovered in such manner, as may be prescribed.
7) Where any deduction is made by the employer from the wages of an employee under this section but not deposited in
the account of the trust or Government fund, such employee shall not be held responsible for such default of the
employer.
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Fines
1) No fine shall be imposed on any employee other than for those acts and omissions on his part as the employer,
with the previous approval of the appropriate Government may have specified by notice.
2) A notice specifying such acts and omissions shall be exhibited in such manner as may be prescribed, on the
premises in which the employment is carried on.
3) No fine shall be imposed on any employee until such employee has been given an opportunity of showing cause
against the fine
4) The total amount of fine which may be imposed in any one wage-period on any employee shall not exceed an
amount equal to three per cent. of the wages payable to him in respect of that wage-period.
5) No fine shall be imposed on any employee who is under the age of fifteen years.
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Fines
6) No fine imposed on any employee shall be recovered from him by instalments or after the expiry of ninety days
from the day on which it was imposed.
7) Every fine shall be deemed to have been imposed on the day of the act or omission in respect of which it was
imposed.
8) All fines and all realisations thereof shall be recorded in a register to be kept in such manner and form as may be
prescribed and all such realisations shall be applied only to such purposes beneficial to the persons employed in
the establishment as are approved by the prescribed authority.
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Deductions for absence from duty
1) Deductions may be made only on account of the absence of an employee from the place during which he is so required
to work.
2) The amount of such deduction shall in no case bear to the wages payable to the employed person in respect of the
wage-period for which the deduction is made in a larger proportion than the period for which he was absent bears to
the total period within such wage-period during which by the terms of his employment he was required to work.
If ten or more employed persons acting in concert absent themselves without due notice and without reasonable cause,
such deduction from any such person may include such amount not exceeding his wages for eight days as may by any such
terms be due to the employer in lieu of due notice.
• For the purposes of this section, an employee shall be deemed to be absent from the place where he is required to work
if, although present in such place, he refuses, in pursuance of a stay-in strike or for any other cause which is not
reasonable in the circumstances, to carry out his work
Deductions for damage or loss
1) A deduction for damage or loss shall not exceed the amount of the damage or loss caused to the employer.
2) A deduction shall not be made until the employee has been given an opportunity of showing cause against the
deduction
3) All such deductions and all realisations thereof shall be recorded in a register.
1) Deduction shall not exceed the loss suffered by employer

2) Before deduction, give an opportunity of show cause
3) Record deductions in a register.
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Section 22 --> Chapter III – Code on Wages
Deductions for services rendered
 A deduction shall not be made from the wages of an employee, unless the house-accommodation amenity has been
accepted by him and such deduction shall not exceed an amount equivalent to the value of the house-accommodation
amenity supplied and shall be subject to such conditions as the appropriate Government may impose.
Not accepted--> No deduction
Accepted--> Deduction not more than value of house

accommodation amenity
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Deductions for recovery of advances
Deductions of section 18 for recovery of advances given to an employee shall be subject to the following conditions,
namely:––
a) recovery of advance of money given to an employee before the employment began shall be made from the first
payment of wages to him in respect of a complete wage-period but no recovery shall be made of such
advances given for travelling expenses
b) recovery of advance of money given to an employee after the employment began shall be subject to such
conditions as may be prescribed
c) recovery of advances of wages to an employee not already earned shall be subject to such conditions as may
be prescribed.
i. Recovery of advance money before employment from first wages.

ii. No recovery for travelling allowance advance
iii. Other recoveries shall be subject to conditions prescribed.
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Deductions for recovery of loans.
Deductions under section 18 for recovery of loans granted to an employee shall be such as may be prescribed.
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Chapter not to apply to Government establishments
The provisions of this Chapter shall not apply to the Government establishments unless the appropriate Government, by
X
notification, applies such provisions to the Government establishments specified in the said notification.
Chapter III of Code on wages not applicable to Government establishments

unless there is an express notification.
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Section 26 --> Chapter IV-->Payment of Bonus – Code on Wages
Eligibility for bonus, etc
1) There shall be paid to every employee, drawing wages not exceeding such amount per month as determined by
notification who has put in at least thirty days work in an accounting year, an annual minimum bonus calculated at the
rate of eight and one-third per cent. of the wages earned by the employee or one hundred rupees, whichever is higher
whether or not the employer has any allocable surplus during the previous accounting year.
2) Where in respect of any accounting year referred to in sub-section (1), the allocable surplus exceeds the amount of
minimum bonus payable to the employees under that sub-section, the employer shall, in lieu of such minimum bonus,
be bound to pay to every employee in respect of that accounting year, bonus which shall be an amount in proportion to
the wages earned by the employee during the accounting year, subject to a maximum of twenty per cent. of such
wages.
3) In computing the allocable surplus under this section, the amount set on or the amount set off under the provisions of
section 36 shall be taken into account in accordance with the provisions of that section.
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4) Any demand for bonus in excess of the bonus referred to in sub-section (1), either on the basis of production or
productivity in an accounting year for which the bonus is payable shall be determined by an agreement or settlement
between the employer and the employees, subject to the condition that the total bonus including the annual minimum
bonus referred to in sub-section (1) shall not exceed twenty per cent. of the wages earned by the employee in the
accounting year.
5) In the first five accounting years following the accounting year in which the employer sells the goods produced or
manufactured by him or renders services from such establishment, bonus shall be payable only in respect of the
accounting year in which the employer derives profit from such establishment.
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6) For the sixth and seventh accounting years, the provisions of section 36 shall apply subject to the following
modifications, namely:—
i. for the sixth accounting year set on or set off, shall be made, in the manner as may be prescribed by the Central
Government, taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on
or set off in respect of the fifth and sixth accounting years;
ii. for the seventh accounting year set on or set off, as the case may be, shall be made, in the manner as may be
prescribed by the Central Government, taking into account the excess or deficiency, if any, as the case may be, of
the allocable surplus set on or set off in respect of the fifth, sixth and seventh accounting years.
iii. From the eighth accounting year the provisions of section 36 shall apply in relation to such establishment as they
apply in relation to any other establishment.
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Suppose ABC company is a new company. These are the allocable surplus of it for first 8 years.
Year 1 – (100000)
Year 2 – (100000)
Year 3 – (50000)
Year 4 – (80000)
Year 5 – (60000)
Year 6 - (20000)
Year 7 – 50000
Year 8 - 90000
Answer – First 5 accounting years, no profits means no bonus.

6th year - Allocable surplus = (60000)+(20000)= 80000
7th year – Allocable surplus = (60000) + (20000) +50000 = (30000)
8th Year – Allocable surplus = (60000) + (20000) + 50000 + 90000 = 60000
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Proportionate reduction in bonus in certain cases.
Where an employee has not worked for all the working days in an accounting year, the minimum bonus if such bonus is
higher than eight and one third per cent of the salary or wage of the days such employee has worked in that accounting
year, shall be proportionately reduced.
Bonus shall be proportionately reduced according to the actual days of working.
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Computation of number of working days.
For the purposes of section 27, an employee shall be deemed to have worked in an establishment in any accounting year
also on the days on which,––
(a) he has been laid off
(b) he has been on leave with salary
(c) he has been absent due to temporary disablement caused by accident arising out of and in the course of his
employment; and
(d) the employee has been on maternity leave with salary.
Following days shall be counted as present days:-

a) Lay off days
b) Leave with wages
c) Temporary disablement leave
d) Maternity leave with salary
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Disqualification for bonus.
An employee shall be disqualified from receiving bonus under this Code, if he is dismissed from service for––
(a) fraud; or
(b) riotous or violent behaviour while on the premises of the establishment; or
(c) theft, misappropriation or sabotage of any property of the establishment; or
(d) conviction for sexual harassment.
Dismissal from service on following grounds will lead to disqualification of bonus

a) Fraud
b) Riotous behaviour
c) Theft, misappropriation or sabotage of property
d) Conviction for sexual harassment
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Establishments to include departments, undertakings and branches
Where an establishment consists of different departments or has branches,
whether situated in the same place or in different places,
all such departments or branches shall be treated as parts of the same establishment for the purpose of computation
of bonus.
Where for any accounting year a separate balance sheet and profit and loss account are prepared and maintained in
respect of any such department or branch,
then, such department or undertaking or branch shall be treated as a separate establishment for the purpose of
computation of bonus, for that year,
unless such department or branch was, immediately before the commencement of that accounting year
treated as part of the establishment for the purpose of computation of bonus.
Happy Learning!
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Payment of bonus out of allocable surplus.
 The bonus shall be paid out of the allocable surplus which shall be an amount equal to sixty per cent. in case of a
banking company and
 sixty-seven per cent. in case of other establishment, of the available surplus and the available surplus shall be
the amount calculated in accordance with section 33.
 Where there is any dispute regarding the quantum of bonus, the authority notified by the appropriate Government
having jurisdiction may call upon the employer to produce the balance sheet before it, but the authority shall not
disclose any information contained in the balance sheet unless agreed to by the employer.
Bonus shall be paid out of allocable surplus which shall be

• 60% of available surplus in case of banking company.
• 67% of available surplus in case of other establishment.
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Computation of gross profits.
The gross profits derived by an employer from an establishment in respect of the accounting year shall be calculated
in the manner as may be prescribed by the Central Government.
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Computation of available surplus.
The available surplus shall be the aggregate of—
• The gross profits for that accounting year after deducting therefrom the sums referred to in section 34 and
+
• An amount equal to the difference between––
i. the direct tax, calculated in accordance with the provisions of section 35, in respect of an amount equal to the
gross profits of the employer for the immediately preceding accounting year and
ii. the direct tax, calculated in accordance with provisions of section 35, in respect of an amount equal to the
gross profits of the employer for such preceding accounting year after deducting therefrom the amount of
bonus which the employer has paid or is liable to pay to his employees in accordance with the provisions of
this Code for that year
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Computation of available surplus.
Available surplus =
Gross profits(Current Year) + [Direct Tax (Preceding year) -Direct Tax after deducting bonus
(Preceding Year)]
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Sums deductible from gross profits.
The following sums shall be deducted from the gross profits as prior charges, namely:—
• Any amount by way of depreciation under the Income-tax Act
• Any direct tax which the employer is liable to pay for the accounting year in respect of his income, profits and gains
during that year
• Such further sums in respect of the employer as may be prescribed by the Central Government.
Sums deductible from GP

• Depreciation under Income Tax Act
• Direct Tax for profits of current year
• Other sums prescribed by the Central Government.
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Calculation of direct tax payable by employer.
Any direct tax payable by the employer for any accounting year shall, subject to the following provisions, be calculated at
the rates applicable to the income of the employer for that year, namely:—
a) In calculating such tax no account shall be taken of,–– (i) any loss incurred by the employer in respect of any previous
accounting year and carried forward under any law for the time being in force relating to direct taxes; (ii) any arrears of
depreciation which the employer is entitled to add to the amount of the allowance for depreciation for any succeeding
accounting year or years under the Income-tax Act
b) Where the employer is a religious or a charitable institution to which the provisions of section 41 do not apply and the
whole or any part of its income is exempt from the tax under the Income-tax Act, then, with respect to the income so
exempted, such institution shall be treated as if it were a company in which the public are substantially interested
within the meaning of that Act
c) Where the employer is an individual or a Hindu undivided family, the tax payable by such employer under the Income-
tax Act shall be calculated on the basis that the income derived by him from the establishment is his only income
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Calculation of direct tax payable by employer.
d) Where the income of any employer includes any profits and gains derived from the export of any goods or merchandise
out of India and any rebate on such income is allowed under any law for the time being in force relating to direct taxes,
then, no account shall be taken of such rebate
e) No account shall be taken of any rebate (other than development rebate or investment allowance or development
allowance) or credit or relief or deduction in the payment of any direct tax allowed under any law for the time being in
force relating to direct taxes or under the relevant annual Finance Act, for the development of any industry.
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Set on and set off of allocable surplus.
Where for any accounting year, the allocable surplus exceeds the amount of maximum bonus payable to the employees
in the establishment, then, the excess shall, subject to a limit of twenty per cent. of the total salary or wage of the
employees employed in the establishment in that accounting year, be carried forward for being set on in the
succeeding accounting year and so on up to and inclusive of the fourth accounting year to be utilised for the purpose
of payment of bonus in such manner as may be prescribed by the Central Government.
Allocable surplus > Maximum bonus payable
The excess( max. 20%) shall be carried forward till 4th accounting year.
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Set on and set off of allocable surplus.
Where for any accounting year, there is no available surplus or the allocable surplus in respect of that year falls short of the
amount of minimum bonus payable to the employees in the establishment under section 26, and there is no amount or
sufficient amount carried forward which could be utilised for the purpose of payment of the minimum bonus, then, such
minimum amount or the deficiency, as the case may be, shall be carried forward for being set off in the succeeding
accounting year and so on up to and inclusive of the fourth accounting year in such manner as may be prescribed by the
Central Government.
No or Insufficient Available or allocable surplus --> Insufficiency shall be carried

forward till 4th accounting year
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Adjustment of customary or interim bonus against bonus payable under this Code
Where in any accounting year,—

a) an employer has paid any puja bonus or other customary bonus to employee; or
b) an employer has paid a part of the bonus payable under this Code to an employee before the date on which such bonus
becomes payable,
then, the employer shall be entitled to deduct the amount of bonus so paid from the amount of bonus payable by him to
the employee under this Code in respect of that accounting year and the employee shall be entitled to receive only the
balance.
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Deduction of certain amounts from bonus payable.
Where in any accounting year, an employee is found guilty of misconduct causing financial loss to the employer, then,
it shall be lawful for the employer to deduct the amount of loss from the amount of bonus payable by him to the
employee under this Code in respect of that accounting year only and the employee shall be entitled to receive the
balance, if any
Any financial loss sustained by the employer caused due to misconduct of

employee can be deducted from the bonus of the employee.
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Time limit for payment of bonus
 Bonus under this Code shall be paid by crediting it in the bank account of the employee by his employer within a
period of eight months from the close of the accounting year
The appropriate Government may, upon an application made to it by the employer and for sufficient reasons, by order,
extend the said period of eight months however, that the total period so extended shall not in any case exceed two
years.
 Where there is a dispute regarding payment of bonus pending before any authority, such bonus shall be paid,
within a period of one month from the date on which the award becomes enforceable or the settlement comes into
operation, in respect of such dispute.
 Provided that if, there is a dispute for payment at the higher rate, the employer shall pay eight and one-third per
cent. of the wages earned by the employee as per the provisions of this Code within a period of eight months from
the close of the accounting year.
• Bonus shall be credited within 8 months of the close of the accounting year.
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Application of this Chapter to establishments in public sector in certain cases
 If in any accounting year an establishment in public sector sells any goods produced or manufactured by it or
renders any services, in competition with an establishment in private sector, and the income from such sale or
services or both, is not less than twenty per cent of the gross income of the establishment in public sector for
that year, then, the provisions of this Chapter shall apply in relation to such establishment in public sector as they
apply in relation to a like establishment in private sector.
 Save as otherwise provided in sub-section (1), nothing in this Chapter shall apply to the employees employed by
any establishment in public sector.
• The provisions of this chapter shall not apply to Public sector establishments.
• Exception
If the public sector establishment compete with a private sector establishment and sells goods and services in the
market, AND the total income from such sale or services id 20% of Gross income of public sector unit, this chapter shall
apply to such establishment also.
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Non - applicability of this Chapter
1) This Chapter shall not apply to employees -

a) Of LIC
b) seamen as defined in the Merchant Shipping Act
c) Under scheme made under the Dock Workers (Regulation of Employment) Act and employed by registered or
listed employers
d) employed by an establishment under the authority of any department of the Central Government or a State
Government or a local authority
e) Of the Indian Red Cross Society or any other institution of a like nature
f) Of universities and other educational institutions
g) Of institutions including hospitals, chamber of commerce and social welfare institutions established not for
purposes of profit
h) employed by the Reserve Bank of India
i) employed by public sector financial institution other than a banking company, which the Central Government
may specify
j) employed by inland water transport establishments operating on routes passing through any other country; and
k) employees of any other establishment which the appropriate Government may exempt
2) Subject to the provisions of sub-section (1), the provisions of this Chapter shall apply to such establishment in which
twenty or more persons are employed or were employed on any day during an accounting year
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Section 42 --> Chapter V-->Advisory Board – Code on Wages
Central Advisory Board and State Advisory Boards
(1)The Central Government shall constitute the Central Advisory Board which shall consist of
persons to be nominated by the Central Government—
a) representing employers
b) representing employees which shall be equal in number of the members specified in clause
(a);
c) independent persons, not exceeding one-third of the total members of the Board; and
d) five representatives of such State Governments as may be nominated by the Central
Government.
(2)One-third of the members referred to in sub-section (1) shall be women and a member specified
in clause (c) of the said sub-section shall be appointed by the Central Government as the
Chairperson of the Board.
i. Equal employee and employer representative
ii. Maximum 1/3rd total members as independent members
iii. 5 State Government representatives
iv. 1/3rd members shall be women
v. 1 independent member shall be Chairman.
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(3) The Central Advisory Board shall advise the Central Government on issues relating to ––
a) fixation or revision of minimum wages
b) providing increasing employment opportunities for women
c) the extent to which women may be employed in such establishments and
d) any other matter relating to this Code, and on such advice, the Central Government may
issue directions to the State Government
4) Every State Government shall constitute a State Advisory Board for advising the State
Government for the above objectives.
Central and State Advisory Board to be set up for

a) fixation or revision of minimum wages
b) providing increasing employment opportunities for
women
c) the extent to which women may be employed in such
establishments
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5) The State Advisory Board may constitute one or more committees to look into issues pertaining
to matters specified in section (4).
6) The State Advisory Board and each of the committees thereof shall consist of persons––
(a) representing employers
(b) representing employees which shall be equal in number of the employers’ members and
(c) independent persons, not exceeding one-third of the total members of the Board or
committee
• State Advisory Board may constitute committees.

• Equal employer and employee members.
• Maximum 1/3rd of total members be independent persons.
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7) One-third of the members referred to in sub-section (6) shall be women and
8) One among the Independent members shall be

a) appointed by the State Government as the Chairperson of the Board;
b) appointed by the State Advisory Board as the Chairperson of the committee as the case may
be.
9) In tendering its advice in the matters specified in of sub-section (4), the State Advisory Board
shall have regard to the number of women employed in the concerned establishment, or
employment, the nature of work, hours of work, suitability of women for employment, the need
for providing increasing employment opportunities for women, including part time employment,
and such other relevant factors as the Board may think fit.
 1/3rd Members shall be women
 One Independent Member shall be appointed as Chairperson
 Nature of work, women members, hours of work other factors
must be considered in tendering advices
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9) The State Government may, after considering the advice tendered to it by the State Advisory
Board and after inviting and considering the representations from establishment or employees
or any other person which that Government thinks fit, issue such direction as may be deemed
necessary.
10)The Central Advisory Board and the State Advisory Board shall respectively regulate their own
procedure including that of the committees and sub-committees constituted by the State
Advisory Board, in such manner as may be prescribed.
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Section 43 --> Chapter VI--> Payment of Dues, Claims and Audit – Code on Wages
Responsibility for payment of various dues
Every employer shall pay all amounts required to be paid under this Code to every employee employed by him.
Where such employer fails to make such payment in accordance with this Code, then, the company or firm or association
or any other person who is the proprietor of the establishment, in which the employee is employed, shall be responsible
for such payment.
• Primary responsibility to pay dues – The Employer

• Secondary responsibility – The company or firm or proprietor
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Payment of various undisbursed dues in case of death of employee.
1) All amounts payable to an employee under this Code shall, if such amounts could not be paid on account of his death
before payment or on account of his whereabouts not being known,—
a) be paid to the person nominated by him in this behalf in accordance with the rules made under this Code or
b) where no such nomination has been made or where for any reasons such amounts cannot be paid to the person
so nominated, be deposited with the authority who shall deal with the amounts so deposited in the manner as
may be prescribed.
2) Where all amounts payable to an employee under this Code are paid by the employer to the nominee or deposited
with the authority then, the employer shall be discharged of his liability to pay those amounts.
• In case of event of death of the employee, his dues shall be paid to his nominee.
• In case there is no nominee or payment can’t be made to nominee, the amount be
deposited to authority.
Claims under Code and procedure thereof
1) The appropriate Government may, by notification, appoint one or more authorities, not below the rank of a
Gazetted Officer, to hear and determine the claims which arises under the provisions of this Code.
2) The authority appointed while deciding the claim under that sub-section, may order, having regard to the
circumstances under which the claim arises, the payment of compensation in addition to the claim determined,
which may extend to ten times of the claim determined and endeavour shall be made by the authority to decide the
claim within a period of three months.
3) If an employer fails to pay the claim determined and compensation ordered to be paid, the authority shall issue a
certificate of recovery to the Collector or District Magistrate of the district where the establishment is located who
shall recover the same as arrears of land revenue and remit the same to the authority for payment to the
concerned employee.
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Claims under Code and procedure thereof.
4) Any application before the authority for claim may be filed by––
(a) the employee concerned or
(b) any Trade Union of which the employee is a member or
(c) the Inspector-cum-Facilitator.
5) A single application may be filed under this section on behalf or in respect of any number of employees employed in
an establishment.
6) The application may be filed within a period of three years from the date on which claims arises.
(The authority may, entertain the application after three years on sufficient cause being shown by the applicant for
such delay.)
7) The authority and the appellate authority shall have all the powers of a civil court under the Code of Civil Procedure
for the purpose of taking evidence and of enforcing the attendance of witnesses and compelling the production of
documents, and every such authority or appellate authority shall be deemed to be a civil court.
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Reference of disputes under this Code.
Where any dispute arises between an employer and his employees with respect to—
a) fixation of bonus or eligibility for payment of bonus under the provisions of this Code or
b) the application of this Code, in respect of bonus, to an establishment in public sector,
then, such dispute shall be deemed to be an industrial dispute within the meaning of the Industrial Disputes Act, 1947.
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Presumption about accuracy of balance sheet and profit and loss account of corporations and companies.
1) Where, during the course of proceedings before—

(a) the authority under section 45; or
(b) the appellate authority under section 49; or
(c) a Tribunal or
(d) an arbitrator referred to in the Industrial Disputes Act, 1947,
in respect of any dispute of the nature specified in sections 45 and 46 or in respect of an appeal under section 49, the
balance sheet and the profit and loss account of an employer, being a corporation or a company (other than a banking
company),
duly audited by the Comptroller and Auditor-General of India or by auditors under the Companies Act, 2013,
are produced before it,
then, the said authority, appellate authority, Tribunal or arbitrator, as the case may be, may presume the statements
and particulars contained in such balance sheet and profit and loss account to be accurate and it shall not be
necessary for the corporation or the company to prove the accuracy of such statements and particulars by the filing of
an affidavit or by any other mode.
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Presumption about accuracy of balance sheet and profit and loss account of corporations and companies.
2) Where the said authority, appellate authority, Tribunal or arbitrator, as the case may be, is satisfied that the
statements and particulars contained in the balance sheet or the profit and loss account of the corporation or the
company are not accurate, it may take such steps as it thinks necessary to find out the accuracy of such statements
and particulars.
3) When an application is made to the authority, appellate authority, Tribunal or arbitrator, as the case may be,
by any Trade Union being a party to the dispute, an appeal, and where there is no Trade Union, by the employees being
a party to the dispute,
requiring any clarification relating to any item in the balance sheet or the profit and loss account,
then such authority, appellate authority, Tribunal or arbitrator, may, after satisfying itself that such clarification is
necessary, by order, direct the company, to furnish to the Trade Union or the employees such clarification within such
time as may be specified in the direction and the company, shall comply with such direction.
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Audit of account of employers not being coporations or companies.
1) Where any claim, dispute or appeal with respect to bonus payable between an employer, not being a corporation or a
company, and his employees is pending before any authority, appellate authority, Tribunal or arbitrator
and the accounts of such employer audited by any auditor under the Companies Act, 2013, are produced before such
authority, appellate authority, Tribunal or arbitrator,
then the provisions of section 47 shall, so far as may be, apply to the accounts so audited.
2) When the authority, appellate authority, Tribunal or arbitrator, finds that the accounts of such employer have not been
audited by any such auditor and it is of opinion that an audit of the accounts of such employer is necessary for deciding
the question referred to it,
then, such authority, appellate authority, Tribunal or arbitrator, may, by order, direct the employer to get his accounts
audited within such time as may be specified in the direction & the employer shall comply with such direction
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Audit of account of employers not being coporations or companies.
3) Where an employer fails to get the accounts audited under sub-section (2), the authority, appellate authority, Tribunal
or arbitrator may get the accounts audited by such auditor as it thinks fit.
4) When the accounts are audited under sub-section (2) or sub-section (3), the provisions of section 47 shall, so far as may
be, apply to the accounts so audited.
5) The expenses of any audit under sub-section (3) including the remuneration of the auditor shall be determined by the
authority, appellate authority, Tribunal or arbitrator and paid by the employer and in default of such payment shall be
recoverable by the authority referred to in section 45 from the employer in the manner provided in that sub-section.
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Appeal
1) Any person aggrieved by an order passed by the authority under section 45 may prefer an appeal, to the appellate
authority having jurisdiction appointed by the appropriate Government, by notification, for such purpose, within ninety
days from the date of such order.
2) The appellate authority may entertain the appeal after ninety days if it satisfied that the delay in filing the appeal has
occurred due to sufficient cause.
3) The appellate authority shall be appointed from the officers of the appropriate Government holding the post at least
one rank higher than the authority referred under section 45.
4) The appellate authority shall, after hearing the parties in the appeal, dispose of the appeal and endeavour shall be
made to dispose of the appeal within a period of three months.
5) The outstanding dues under the orders of the appellate authority shall be recovered by the authority referred to in
section 45, by issuing the certificate of recovery in the manner specified in that section.
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Records, returns and notices.
1) Every employer of an establishment to which this Code applies shall maintain a register containing the details with
regard to persons employed, muster roll, wages and such other details in such manner as may be prescribed.
2) Every employer shall display a notice on the notice board at a prominent place of the establishment containing the
abstract of this Code, category-wise wage rates of employees, wage period, day or date and time of payment of wages,
and the name and address of the Inspector-cum-Facilitator having jurisdiction.
3) Every employer shall issue wage slips to the employees in such form and manner as may be prescribed.
4) The above provisions shall not apply in respect of the employer to the extent he employs not more than five persons for
agriculture or domestic purpose
5) The employer mentioned in pt.4, when demanded, shall produce before the Inspector-cum-Facilitator, the reasonable
proof of the payment of wages to the persons so employed.
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Section 51 --> Chapter VII--> Inspector cum Facilitator – Code on Wages
Appointment of Inspector cum Facilitators and their powers.
1) The appropriate Government may appoint Inspector-cum-Facilitators for the purposes of this Code who shall
exercise the powers conferred on them under sub-section (4) throughout the State or such geographical limits
assigned in relation to one or more establishments situated in such State or geographical limits or in one or more
establishments, irrespective of geographical limits, assigned to him by the appropriate Government, as the case
may be.
2) The appropriate Government may lay down an inspection scheme which may also provide for generation of a web-
based inspection and calling of information relating to the inspection under this Code electronically.
3) The appropriate Government may, by notification, confer such jurisdiction of randomised selection of inspection
for the purposes of this Code to the Inspector-cum-Facilitator as may be specified.
4) Every Inspector-cum-Facilitator appointed under sub-section (1) shall be deemed to be public servant within the
meaning of the Indian Penal Code.
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5) The Inspector-cum-Facilitator may––

a) Advice to employers and workers relating to compliance with the provisions of this Code
b) Inspect the establishments as assigned to him by the appropriate Government
6) Subject to the provisions of sub-section (4), the Inspector-cum-Facilitator may,—
a) examine any person who is found in any premises of the establishment, whom the Inspector-cum-Facilitator has
reasonable cause to believe, is a worker of the establishment
b) require any person to give any information, which is in his power to give with respect to the names and addresses
of the persons
c) search, seize or take copies of such register, record of wages or notices or portions thereof as the Inspector-cum-
Facilitator may consider relevant bring to the notice of the appropriate Government defects or abuses not covered
by any law for the time being in force and
d) exercise such other powers as may be prescribed.
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7) Any person required to produce any document or to give any information required by a Inspector-cum-Facilitator shall
be deemed to be legally bound to do so.
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1) The appropriate Government may appoint Inspector-cum-Facilitators for the purposes of this Code who shall
exercise the powers conferred on them under sub-section (4) throughout the State or such geographical limits
assigned in relation to one or more establishments situated in such State or geographical limits or in one or more
establishments, irrespective of geographical limits, assigned to him by the appropriate Government, as the case
may be.
2) The appropriate Government may lay down an inspection scheme which may also provide for generation of a web-
based inspection and calling of information relating to the inspection under this Code electronically.
3) The appropriate Government may, by notification, confer such jurisdiction of randomised selection of inspection
for the purposes of this Code to the Inspector-cum-Facilitator as may be specified.
4) Every Inspector-cum-Facilitator appointed under sub-section (1) shall be deemed to be public servant within the
meaning of the Indian Penal Code.
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5) The Inspector-cum-Facilitator may––

a) Advice to employers and workers relating to compliance with the provisions of this Code
b) Inspect the establishments as assigned to him by the appropriate Government
6) Subject to the provisions of sub-section (4), the Inspector-cum-Facilitator may,—
a) examine any person who is found in any premises of the establishment, whom the Inspector-cum-Facilitator has
reasonable cause to believe, is a worker of the establishment
b) require any person to give any information, which is in his power to give with respect to the names and addresses
of the persons
c) search, seize or take copies of such register, record of wages or notices or portions thereof as the Inspector-cum-
Facilitator may consider relevant bring to the notice of the appropriate Government defects or abuses not covered
by any law for the time being in force and
d) exercise such other powers as may be prescribed.
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7) Any person required to produce any document or to give any information required by a Inspector-cum-Facilitator shall
be deemed to be legally bound to do so.
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Happy Learning!
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Section 57 --> Chapter IX--> Miscellaneous – Code on Wages
Bar of suits
No court shall entertain any suit for the recovery of minimum wages, any deduction from wages, discrimination in wages
and payment of bonus, in so far as the sum so claimed—
a) forms the subject of claims under section 45
b) has formed the subject of a direction under this Code
c) has been adjudged in any proceeding under this Code
d) could have been recovered under this Code.
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Protection of action taken in good faith.
No suit, prosecution or any other legal proceeding shall lie against the appropriate Government or any officer of that
Government for anything which is in good faith done or intended to be done under this Code.
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Burden of proof.
Where a claim has been filed on account of non-payment of remuneration or bonus or less payment of wages or bonus or
on account of making deductions not authorised by this Code from the wages of an employee, the burden to prove that the
said dues have been paid shall be on the employer.
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Contracting out
Any contract or agreement whereby an employee relinquishes the right to any amount or the right to bonus due to him
under this Code shall be null and void in so far as it purports to remove or reduce the liability of any person to pay such
amount under this Code.
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Effect of laws agreements, etc., inconsistent with this Code
The provisions of this Code shall have effect notwithstanding anything inconsistent therewith contained in any other law for
the time being in force or in the terms of any award, agreement, settlement or contract of service.
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Delegation of powers.
The appropriate Government may, by notification, direct that any power exercisable by it under this Code shall be also
exercisable—
a) where the appropriate Government is the Central Government, by such officer or authority subordinate to the Central
Government or by the State Government or by such officer or authority subordinate to the State Government, as may
be specified in the notification
b) where the appropriate Government is a State Government, by such officer or authority subordinate to the State
Government as may be specified in the notification
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Exemption of employer from liability in certain cases.
Where an employer is charged with an offence under this Code, he shall be entitled upon complaint duly made by him, to
have any other person whom he charges as the actual offender, brought before the court at the time appointed for hearing
the charge; and if, after the commission of the offence has been proved, the employer proves to the satisfaction of the
court—
a) that he has used due diligence to enforce the execution of this Code and
b) that the said other person committed the offence in question without his knowledge, consent or connivance that
other person shall be convicted of the offence and shall be liable to the like punishment as if he were the employer
and the employer shall be discharged from any liability under this Code in respect of such offence
Provided that in seeking to prove, as aforesaid, the employer may be examined on oath, and the evidence of the
employer or his witness, if any, shall be subject to cross-examination by or on behalf of the person whom the employer
charges as the actual offender and by the prosecution.
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Protection against attachments of assets of employer with Government.
Any amount deposited with the appropriate Government by an employer to secure the due performance of a contract with
that Government and any other amount due to such employer from that Government in respect of such contract shall not
be liable to attachment under any decree or order of any court in respect of any debt or liability incurred by the employer
other than any debt or liability incurred by the employer towards any employee employed in connection with the contract
aforesaid.
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Power of Central Government to give directions.
The Central Government may, for carrying into execution of the provisions of this Code in the State give directions to the
State Government, and the State Government shall abide by such directions.
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Saving
Nothing contained in this Code shall affect the provisions of the Mahatma Gandhi National Rural Employment Guarantee
Act, 2005 and the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948, or of any scheme made thereunder.
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Power of appropriate Government to make rules.
1) The appropriate Government may make rules for carrying out the provisions of this Code.
2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the
following matters, namely:––
a) the manner of calculating the wages
b) the arduousness of work to be taken into account in addition to minimum rate of wages for certain category of
workers
c) the norms
d) the cases and circumstances in which an employee employed for a period of less than the requisite number of
hours shall not be entitled to receive wages for a full normal working day
e) the longer wage period for fixation of minimum rate of wages
f) the manner of deducting loans made from any fund constituted for the welfare of labour
g) the form of the register to record all fines and all realisations thereof.
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Power of appropriate Government to make rules.
3) Every rule made by the Central Government under this section shall be laid, as soon as may be after it is made, before
each House of Parliament
4) Every rule made by the State Government under this section shall, as soon as possible after it is made, be laid before
the State Legislature.
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Power to remove difficulties.
• If any difficulty arises in giving effect to the provisions of this Code, the Central Government may make provisions (by
order in Official Gazette) to be necessary for removing the difficulty.
• No such order shall be made under this section after the expiry of a period of three years from the commencement of
this Code.
• Every order made under this section shall be laid before each House of Parliament.
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Repeal and savings
The Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965 and the Equal
Remuneration Act, 1976 are hereby repealed.
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Happy Learning!
Video 1 -The Industrial Relations Code, 2020
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Section 1 --> Chapter I – Preliminary
Short title, extent and commencement
1. This Act may be called the Industrial Relations Code, 2020.
2. It shall extend to the whole of India.
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Definitions
Average pay means the average of the wages payable to a worker—
i. in the case of monthly paid worker, in three complete calendar months

ii. in the case of weekly paid worker, in four complete weeks
iii. in the case of daily paid worker, in twelve full working days,
preceding the date on which the average pay becomes payable, if the worker had worked for three complete
calendar months or four complete weeks or twelve full working days, as the case may be, and where such
calculation cannot be made, the average pay shall be calculated as the average of the wages payable to a
worker during the period he actually worked.
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Definitions
Employee means any person (other than an apprentice) employed by an industrial establishment to do any
skilled, semi-skilled or unskilled, manual, operational, supervisory, managerial, administrative, technical or
clerical work and also includes a person declared to be an employee by the appropriate Government, but
does not include any member of the Armed Forces of the Union.
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Definitions
Fixed term employment means the engagement of a worker on the basis of a written contract of
employment for a fixed period.
a) his hours of work, wages, allowances and other benefits shall not be less than that of a permanent
worker doing the same work or work of similar nature
b) he shall be eligible for all statutory benefits available to a permanent worker proportionately according
to the period of service rendered by him even if his period of employment does not extend to the
qualifying period of employment required in the statute and
c) he shall be eligible for gratuity if he renders service under the contract for a period of one year.
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Definitions
Industry means any systematic activity carried on by co-operation between an employer and worker for the
production, supply or distribution of goods or services with a view to satisfy human wants (not being wants
or wishes which are merely spiritual or religious in nature), whether or not,—
i. any capital has been invested for the purpose of carrying on such activity or
ii. such activity is carried on with a motive to make any gain or profit
but does not include —
a) institutions owned or managed by organisations engaged in any charitable, social or philanthropic

service or
b) any activity of the appropriate Government relatable to the sovereign functions of the appropriate
Government including all the activities carried on by the departments of the Central Government
dealing with defence research, atomic energy and space or
c) any domestic service
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Definitions
Retrenchment means the termination by the employer of the service of a worker for any reason except as a
punishment inflicted by way of disciplinary action, but does not include—
i. voluntary retirement of the worker or

ii. retirement of the worker on reaching the age of superannuation or
iii. termination of the service of the worker as a result of the non-renewal of the contract of employment
between the employer and the worker concerned on its expiry or of such contract being terminated under a
stipulation in that behalf contained therein or
iv. termination of service of the worker as a result of completion of tenure of fixed term employment or
v. termination of the service of a worker on the ground of continued ill-health.
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Definitions
Wages definition same as in Code on Wages,2020.
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Definitions
Worker means any person (except an apprentice) employed in any industry to do any manual, unskilled, skilled,
technical, operational, clerical or supervisory work and includes
i. working journalists and
ii. sales promotion employees
iii. and for the purposes of any proceeding under this Code in relation to an industrial dispute, includes any
such person who has been dismissed, discharged or retrenched or otherwise terminated in connection with
that dispute,
but does not include any person—
a) who is subject to the Air Force Act or the Army Act or the Navy Act or
b) who is employed in the police service or employee of a prison or
c) who is employed mainly in a managerial or administrative capacity or
d) who is employed in a supervisory capacity drawing wages exceeding eighteen thousand rupees per month
or an amount as may be notified by the Central Government from time to time.
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Section 3 --> Chapter II – Bi-Partite Forums
Works Committee
1) In the case of any industrial establishment in which one hundred or more workers are employed or
have been employed on any day in the preceding twelve months, the appropriate Government may
require the employer to constitute a Works Committee, consisting of representatives of employer and
workers engaged in the establishment.
2) The number of representatives of workers in such Committee shall not be less than the number of
representatives of the employer.
3) It shall be the duty of the Works Committee to promote measures for securing and preserving amity and
good relations between the employer and workers and comment upon matters of their common interest
or concern and endeavour to compose any material difference of opinion in respect of such matters
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Grievance Redressal Committee
1) Every industrial establishment employing twenty or more workers shall have one or more Grievance
Redressal Committees for resolution of disputes arising out of individual grievances.
2) The Grievance Redressal Committee shall consist of equal number of members representing the
employer and the workers
3) The chairperson of the Grievance Redressal Committee shall be selected from among persons
representing the employer and the workers alternatively on rotational basis every year.
4) The total number of members of the Grievance Redressal Committee shall not exceed ten.
5) There shall be adequate representation of women workers in the Grievance Redressal Committee and
such representation shall not be less than the proportion of women workers to the total workers
employed in the industrial establishment.
6) An application in respect of any dispute may be filed before the Grievance Redressal Committee by any
aggrieved worker within one year from the date on which the cause of action of such dispute arises.
7) The Grievance Redressal Committee may complete its proceedings within thirty days of receipt of the
application.
8) The decision of the Grievance Redressal Committee on any application shall be made on the basis of
majority view of the Committee, provided more than half of the members representing the workers
have agreed to such decision otherwise it shall be deemed that no decision could be arrived at by the
Committee.
9) The worker who is aggrieved by the decision of the Grievance Redressal Committee or whose grievance
is not resolved in the said Committee within the period specified may, within a period of sixty days from
the date of the decision of the Grievance Redressal Committee or from the date on which the period
specified expires, file an application for the conciliation of such grievance to the conciliation officer
through the Trade Union, of which he is a member.
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10) Where any employer discharges, dismisses, retrenches, or terminates the services of an individual
worker, any dispute or difference between that worker and his employer connected with, or arising out
of, such discharge, dismissal, retrenchment or termination shall be deemed to be an industrial dispute.
11) Any worker may, make an application directly to the Tribunal for adjudication of the dispute referred to
therein after the expiry of forty-five days from the date he has made the application to the conciliation
officer of the appropriate Government for conciliation of the dispute, and on receipt of such application
the Tribunal shall have powers and jurisdiction to adjudicate upon the dispute
12) The application referred to in sub-section (11) shall be made to the Tribunal before the expiry of two
years from the date of discharge, dismissal, retrenchment or otherwise termination of service.
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Section 5 --> Chapter III – Trade Unions
Registrar of Trade Unions
The State Government may appoint the Registrar of Trade Unions, and other persons as Additional Registrar
of Trade Unions, Joint Registrar of Trade Unions and Deputy Registrar of Trade Unions.
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Criteria for registration
1) Any seven or more members of a Trade Union may apply for registration of the Trade Union under this
Code.
2) No Trade Union of workers shall be registered unless at least ten per cent. of the workers or one
hundred workers, whichever is less, engaged or employed in the industrial establishment or industry
with which it is connected are the members of such Trade Union on the date of making of application for
registration.
Section 6--> Chapter III – Trade Unions
Criteria for registration
3) Where an application has been made for registration of a Trade Union, such application shall not be
deemed to have become invalid merely by reason of the fact that, at any time after the date of the
application but before the registration of the Trade Union, some of the applicants, but not exceeding
half of the total number of persons who made the application, have ceased to be members of the
Trade Union or have given notice in writing to the Registrar dissociating themselves from the
application.
4) A registered Trade Union of workers shall at all times continue to have not less than
• ten per cent. of the workers or
• one hundred workers, whichever is less,
subject to a minimum of seven, engaged or employed in an industrial establishment or industry with which
it is connected, as its members.
Provisions to be contained in constitution or rules of Trade Union
1) A Trade Union shall not be entitled to registration under this Code, unless the executive thereof is
constituted in accordance with the provisions of this Code, and the rules of the Trade Union provide for
the following matters, namely:—
a) the name of the Trade Union
b) the objects for which the Trade Union has been established
c) the purposes for which the general funds of the Trade Union shall be applicable
d) the maintenance of a list of members of the Trade Union and adequate facilities for the inspection
thereof by the office-bearers and members of the Trade Union
e) the admission of ordinary members who shall be persons employed in the industrial establishment,
f) the payment of a subscription by members
g) the conditions under which any member shall be entitled to any benefit and under which any fine
or forfeiture may be imposed on any member
h) the annual general body meeting of the members of the Trade Union, the business to be transacted
at such meeting, including the election of office-bearers of the Trade Union
i) the manner in which the members of the executive and the other office bearers of the Trade Union
shall be elected once in a period of every three years and removed, and filling of casual vacancies.
Provisions to be contained in constitution or rules of Trade Union
j) the safe custody of the funds of the Trade Union, an annual audit and adequate facilities for the
inspection of the account books by the office-bearers and members of the Trade Union
k) the manner in which the rules shall be amended and
l) the manner in which the Trade Union may be dissolved.

Application for registration, alteration of name and procedure thereof
1) Every application for registration of a Trade Union shall be made to the Registrar electronically or
otherwise and be accompanied by—
a) a declaration to be made by an affidavit
b) copy of the rules of the Trade Union together with a copy of the resolution by the members of the
Trade Union adopting such rules
c) a copy of the resolution adopted by the members of the Trade Union authorising the applicants to
make an application for registration and
d) in the case of a Trade Union, being a federation or a central organisation of Trade Unions, a copy of
the resolution adopted by the members of each of the member Trade Unions, meeting separately,
agreeing to constitute a federation or a central organisation of Trade Unions.
2) Where a Trade Union has been in existence for more than one year before the making of an application
for its registration, there shall be delivered to the Registrar, a general statement of the assets and
liabilities of the Trade Union.
Application for registration, alteration of name and procedure thereof
3) If the name under which the Trade Union is proposed to be registered is identical with that of an
existing registered Trade Union or resembles the name of an existing Trade Union that such name is
likely to deceive the public or the members of either Trade Union, the Registrar shall require the
persons applying for altering the name of the Trade Union and shall refuse to register the Trade Union
until such alteration has been made.
Registration of Trade Union and cancellation thereof
1) Where the Registrar makes an order for registration of a Trade Union, he shall issue a certificate of
registration to the applicant Trade Union, which shall be the conclusive evidence that the Trade Union
has been registered under this Code.
2) The certificate of registration of a Trade Union may be withdrawn or cancelled by the Registrar,—
i. on the application of the Trade Union or
ii. on the information received by him regarding the contravention by the Trade Union of the
provisions of this Code or the rules or
iii. if he is satisfied that the members in a Trade Union falls below ten per cent. of total workers or one
hundred workers, whichever is less
Provided that not less than sixty days previous notice in writing specifying the grounds on which it is
proposed to cancel the certificate of registration of a Trade Union shall be given by the Registrar to the Trade
Union before the certificate of registration is cancelled otherwise than on the application of the Trade Union.
3) A certificate of registration of a Trade Union shall be cancelled by the Registrar where a Tribunal has
made an order for cancellation of registration of such Trade Union.
Appeal against non-registration or cancellation of registration.
1) Any person aggrieved by the refusal of the Registrar to grant registration to a Trade Union or by
cancellation of a certificate of registration may prefer an appeal to the Tribunal
2) The Tribunal may, after giving the parties concerned an opportunity of being heard, dismiss the appeal
or pass an order directing the Registrar to register the Trade Union and to issue a certificate of
registration or set aside the order of cancellation of certificate of registration, as the case may be and
forward a copy of such order to the Registrar
Communication to Trade Union and change in its registration particulars.
1) All communications and notices to a registered Trade Union shall be sent to the address of the head
office of the Trade Union as entered in the register maintained by the Registrar.
2) The Trade Union shall inform the Registrar if the members of such Trade Union falls below ten per cent.
of total workers or one hundred workers, whichever is less.
3) The Trade Union shall inform the Registrar of any change in the particulars given by it in its application
for registration and in its constitution or rules.
Incorporation of a registered Trade Union
Every registered Trade Union shall be a body corporate by the name under which it is registered, and shall
have perpetual succession and a common seal with power to acquire and hold both movable and immovable
property and to contract, and shall by the said name sue and be sued.
Certain Acts not to apply to registered Trade Unions
The provisions of the following Acts, namely:—
a) the Societies Registration Act, 1860

b) the Co-operative Societies Act, 1912
c) the Multi-State Co-operative Societies Act, 2002
d) the Companies Act, 2013 and
e) any other corresponding law relating to co-operative societies for the time being in force in any State,
shall not apply to any registered Trade Union and the registration of any such Trade Union under any of the
aforementioned Acts shall be void.
Recognition of negotiating union or negotiating council.
1) There shall be a negotiating union or a negotiating council in an industrial establishment having

registered Trade Union for negotiating with the employer of the industrial establishment, on such
matters as may be prescribed.
2) Where only one Trade Union of workers registered is functioning in an industrial establishment, then,
the employer of such industrial establishment shall, recognise such Trade Union as sole negotiating
union of the workers.
3) If more than one Trade Union of workers registered under this Code are functioning in an industrial
establishment, then, the Trade Union having fifty-one per cent. or more workers on the muster roll of
that industrial establishment, supporting that Trade Union shall be recognised by the employer of the
industrial establishment, as the sole negotiating union of the workers.
Recognition of negotiating union or negotiating council.
4) If more than one Trade Union of workers registered under this Code are functioning in an industrial
establishment, and no such Trade Union has fifty-one per cent. or more of workers on the muster roll of
that industrial establishment, then, there shall be constituted by the employer of the industrial
establishment, a negotiating council for negotiation, consisting of the representatives of such registered
Trade Unions which have the support of not less than twenty per cent. of the total workers on the
muster roll of that industrial establishment and such representation shall be of one representative for
each twenty per cent. and for the remainder after calculating the membership on each twenty per cent.
5) Where any negotiation on the matters is held between an employer and a negotiating council
constituted, consequent upon such negotiation, any agreement is said to be reached, if it is agreed by the
majority of the representatives of the Trade Unions in such negotiating council.
6) Any recognition made or the negotiating council constituted shall be valid for three years from the date
of recognition or constitution or such further period not exceeding five years, in total, as may be
mutually decided by the employer and the Trade Union.
Objects of general fund, composition of separate fund and membership fee of Trade Union.
1) A registered Trade Union may constitute a separate fund, from contributions separately levied for or made to
that fund, from which payments may be made, for the promotion of the civic and political interests of its
members, in furtherance of such objects as may be prescribed.
2) No member shall be compelled to contribute to the fund and a member who does not contribute to the said
fund shall not be excluded from any benefits of the Trade Union, or placed in any respect either directly or
indirectly under any disability or at any disadvantage as compared with other members of the Trade Union
(except in relation to the control or management of the said fund) by reason of his not contributing to the
said fund and contribution to the said fund shall not be made a condition for admission to the Trade Union.
Immunity from civil suit in certain cases
1) No suit or other legal proceeding shall be maintainable in any civil court against any registered Trade
Union or any office-bearer or member thereof in respect of any act done in contemplation or
furtherance of an industrial dispute to which a member of the Trade Union is a party on the ground only
that such act induces some other person to break a contract of employment or that it is an interference
with the trade, business, or employment of some other person or with the right of some other person to
dispose of his capital or of his labour as he wills.
2) A registered Trade Union shall not be liable in any suit or other legal proceeding in any civil court in
respect of any tortuous act done in contemplation or furtherance of an industrial dispute by an agent of
the Trade Union if it is proved that such person acted without the knowledge of, or contrary to express
instructions given by, the executive of the Trade Union.
Criminal conspiracy in furtherance of objects of Trade Union.
No office-bearer or member of a registered Trade Union shall be liable to punishment under the Indian
Penal Code in respect of any agreement made between the members for the purpose of furthering any such
object of the Trade Union unless such agreement is an agreement to commit an offence
Enforceability of agreements
Not important
Right to inspect books of Trade Union.
The books of account of a registered Trade Union and the list of members thereof shall be open to inspection by
an office-bearer or member of the Trade Union at such times as may be provided for in the rules of the Trade
Union
Rights of minor to membership of Trade Union
Any person who has attained the age of fourteen years and is employed in a non hazardous industry may be a
member of a registered Trade Union and may enjoy all the rights of a member and execute all instruments and
given all acquaintances necessary to be executed or given under the rules
Disqualification of officebearers of Trade Unions
1) A person shall be disqualified for being chosen as, and for being, a member of the executive or any other
office-bearer of a registered Trade Union, if—
i. he has not attained the age of eighteen years
ii. he has been convicted by a court in India for any offence involving moral turpitude and sentenced
to imprisonment unless a period of five years has elapsed since his release
iii. the Tribunal has directed that he shall be disqualified for being chosen or for being office-bearer of
a Trade Union for a period specified therein.
2) No member of the Council of Ministers or a person holding an office of profit (not being an engagement
or employment in an establishment or industry with which the Trade Union is connected) in the Union
or a State shall be a member of the executive or other office-bearer of a Trade Union
Adjudication of disputes of Trade Unions.
1) Where a dispute arises between—

a) one Trade Union and another or
b) one or more workers who are members of the Trade Union and the Trade Union regarding
registration, administration or management or election of office bearers of the Trade Union or
c) one or more workers who are refused admission as members and the Trade Union or
d) where a dispute is in respect of a Trade Union which is a federation of Trade Unions and office-
bearer authorised in this behalf by the Trade Union, an application may be made to the Tribunal
having jurisdiction over the area where the registered office of the Trade Union or Trade Unions is
located for adjudication of such disputes.
2) No civil court other than the Tribunal shall have power to entertain any suit or other proceedings in
relation to any dispute above.
Proportion of office-bearers to be connected with industry
1) Not less than one-half of the total number of the office-bearers of every registered Trade Union in an
unorganised sector shall be persons actually engaged or employed in an establishment or industry
with which the Trade Union is connected.
2) All office-bearers of a registered Trade Union, except not more than one-third of the total number of the
office-bearers or five, whichever is less, shall be persons actually engaged or employed in the
establishment or industry with which the Trade Union is connected.
(An employee who has retired or has been retrenched shall not be construed as outsider for the purpose of
holding an office in a Trade Union.)
Change of name, amalgamation, notice of change and its effect.
1) Any registered Trade Union may, with the consent of not less than two-third of the total number of its
members change its name.
2) Any two or more registered Trade Unions may be amalgamated.
3) Notice in writing of every change of name and of every amalgamation signed in the case of a change of
name, by the secretary and by seven members of the Trade Union changing its name, and in the case of
an amalgamation, by the secretary and by seven members of each and every Trade Union which is a
party thereto, shall be sent to the Registrar and where the head office of the amalgamated Trade Union
is situated in a different State, to the Registrar of such State.
4) If the proposed name is identical with that by which any other existing Trade Union has been registered
or, in the opinion of the Registrar, so nearly resembles such name as to be likely to deceive the public or
the members of either Trade Union, the Registrar shall refuse to register the change of name.
Change of name, amalgamation, notice of change and its effect.
5) The change in the name of a registered Trade Union shall not affect any rights or obligations of the
Trade Union or render defective any legal proceeding by or against the Trade Union, and any legal
proceeding which might have been continued or commenced by or against it by its former name may be
continued or commenced by or against it by its new name.
6) An amalgamation of two or more registered Trade Unions shall not prejudice any right of any such
Trade Unions or any right of a creditor of any of them.
Dissolution.
1) When a registered Trade Union is dissolved, notice of the dissolution signed by seven members and by
the secretary of the Trade Union shall, within fourteen days of the dissolution, be sent to the
Registrar, and the dissolution shall have effect from the date of such registration.
2) Where the dissolution of a registered Trade Union has been registered and the rules of the Trade Union
do not provide for the distribution of funds of the Trade Union on dissolution, the Registrar shall divide
the funds amongst the members in such manner as may be prescribed.
Annual returns.
1) Every registered Trade Union shall—

a) forward annually to the Registrar, on or before such date, audited general statement containing
particulars of all receipts and expenditure of such registered Trade Union during the year ending on
the 31st day of December next preceding such prescribed date, and of the assets and liabilities of
the Trade Union existing on such 31st day of December
b) forward to the Registrar a statement showing changes of office-bearers made by the Trade Union
during the year to which such general statement refers, together also with a copy of the rules of the
Trade Union corrected up to the date of dispatch thereof to the Registrar.
2) A copy of every alteration made in the rules of a registered Trade Union shall be sent to the Registrar
within fifteen days of the making of the alteration.
3) The Registrar or any officer authorised by him, by general or special order, may at all reasonable times
inspect the certificate of registration, account books, registers and other documents, relating to a Trade
Union, at its registered office or may require their production at such place as he may specify in this
behalf, but no such place shall be at a distance of more than fifteen kilometres from the registered office
of such Trade Union.
Recognition of Trade Unions at Central and State level
1) Not Important
No
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Section 28 --> Chapter IV – Standing Order
Application of this Chapter
Every industrial establishment wherein three hundred or more than three hundred workers, are employed,
or were employed on any day of the preceding twelve months.
Making of model standing orders by Central Government and temporary application.
The Central Government shall make model standing orders relating to conditions of service and other
matters for the period commencing on the date on which this section becomes applicable to an industrial
establishment and ending with the date on which the standing orders as finally certified under this Code
come into operation.
Preparation of draft standing orders by employer and procedure for certification
1) The employer shall prepare draft standing orders, within a period of six months from the date of
commencement of this Code.
2) The employer shall consult the Trade Unions or recognised negotiating union or members of the
negotiating council relating to the industrial establishment in respect of the draft of the standing order
and thereafter forward the draft of the standing order electronically or otherwise to the certifying
officer for certification.
3) Where an employer adopts a model standing order of the Central Government referred to in section 29
with respect to matters relevant to his industrial establishment or undertaking, then, such model
standing order shall be deemed to have been certified under the provisions of this section and employer
shall forward the information in this regard to the concerned certifying officer in such manner as may
be prescribed: Provided that if the certifying officer has any observation, he may direct such employer
to amend the standing order so adopted within such period as may be prescribed.
Preparation of draft standing orders by employer and procedure for certification
4) The employer shall prepare the draft of the modifications required in the standing order, and forward to
the certifying officer for certification of those modifications only within a period of six months from the
date, the provisions of this Chapter becomes applicable to his industrial establishment.
5) The certifying officer shall complete procedure for certification in respect of—
a) the draft standing order so received within a period of sixty days from the date of the receipt of it
b) the draft modifications in the standing order so received within a period of sixty days from the date
of the receipt of such modifications,
failing which such draft standing orders or, as the case may be, the modifications in the standing order
shall be deemed to have been certified on the expiry of the said period.
6) A group of employers in similar establishments may submit a joint draft of standing orders.
Certifying officer and appellate authority to have powers of civil court
1) Every certifying officer and the appellate authority shall have all the powers of a civil court.
Appeals.
An employer or Trade Union or the negotiating union or negotiating council, if not satisfied with the order of
the certifying officer may file an appeal within sixty days of receipt of the order of the certifying officer to
the appellate authority and such authority shall dispose of the appeal.
Date of operation of standing orders and its availability.
The standing orders, shall, come into operation on the expiry of thirty days from the date on which
authenticated copies thereof are sent, or where an appeal as aforesaid is preferred, on the expiry of seven
days from the date on which copies of the order of the appellate authority are sent.
Register of standing orders.
A copy of all standing orders as finally certified under this Code shall be filed by the certifying officer in a
register maintained for the purpose or uploaded in electronic form, and the certifying officer shall furnish a
copy thereof to any person applying therefor on payment of fee.
Duration and modification of standing orders.
1) The standing orders certified shall not, except on an agreement between the employer and the workers,
or a negotiating union or a Trade Union or other representative body of the workers, be liable to
modification until the expiry of six months from the date on which the standing orders or the last
modifications thereof came into operation.
2) An employer or worker or a Trade Union or other representative body of the workers may apply to the
certifying officer to have the standing orders modified in such application as may be prescribed, which
shall be accompanied by such copies of the modifications proposed to be made, and where the
modifications are proposed to be made by agreement between the employer and the workers or a Trade
Union or other representative body of the workers, a certified copy of that agreement shall be filed
alongwith the application.
Oral evidence in contradiction of standing orders not admissible.
No oral evidence having the effect of adding to or otherwise varying or contradicting standing order as
finally certified under this Chapter shall be admitted in any Court.
Interpretation, etc., of standing orders.
If any question arises as to the application, or interpretation, of the standing orders, the employer or
workers or the Trade Union, may apply to the Tribunal, within the local jurisdiction, to decide the question
and such Tribunal shall, after giving all the parties concerned a reasonable opportunity of being heard,
decide the question and its decision shall be final and binding on the concerned employer and the workers.
Time-limit for completing disciplinary proceedings and liability to pay subsistence allowance
1) Where any worker is suspended by the employer pending investigation or inquiry into complaints or
charges of misconduct against him, such investigation or inquiry, or where there is an investigation
followed by an inquiry, both the investigation and inquiry shall be completed ordinarily within a period
of ninety days from the date of suspension.
2) The standing orders certified under section 30 or modified under section 35 shall provide that where a
worker is suspended as referred above, the employer in relation to an industrial establishment shall pay
to such worker employed in such industrial establishment or undertaking subsistence allowance at the
rates specified in sub-section (3) for the period during which such worker is placed under suspension
pending investigation or inquiry into complaints or charges of misconduct against such worker.
3) The amount of subsistence allowance payable shall be —

a) at the rate of fifty per cent. of the wages which the worker was entitled to immediately preceding
the date of such suspension, for the first ninety days of suspension and
b) at the rate of seventy-five per cent. of such wages for the remaining period of suspension, if the
delay in the completion of disciplinary proceedings against such worker is not directly attributable
to the conduct of such worker.
Power to exempt.
The appropriate Government may, exempt, conditionally or unconditionally, any industrial establishment or
class of industrial establishments from the provisions of this Chapter.
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Section 40 --> Chapter V – Notice of change
Notice of change.
No employer, who proposes to effect any change in the conditions of service applicable to any worker in
respect of any matter specified in the Third Schedule, shall effect such change,—
i. without giving a notice of the nature of the change proposed to be effected to the workers or
ii. within twenty-one days of giving such notice.
No notice shall be required for effecting any such change—

a) where the change is effected in pursuance of any settlement or award
b) in case of emergent situation which requires change of shift in consultation with Grievance
Redressal Committee
c) if such change is effected in accordance with the orders of the appropriate Government.
Section 41 --> Chapter V – Notice of change
Power of appropriate Government to exempt.
Not Important
Section 42 --> Chapter VI – Voluntary Reference of Disputes to Arbitration
Voluntary reference of disputes to arbitration.
1) Where any industrial dispute exist and the employer and the workers agree to refer the dispute to
arbitration, they may, by a written agreement, refer the dispute to arbitration.
2) Where an arbitration agreement provides for a reference of the dispute to an even number of
arbitrators, the agreement shall provide for the appointment of another person as umpire who shall
enter upon the reference, if the arbitrators are equally divided in their opinion, and the award of the
umpire shall prevail and shall be deemed to be the arbitration award for the purposes of this Code.
3) A copy of the arbitration agreement shall be forwarded to the appropriate Government and the
conciliation officer.
Section 42 --> Chapter VI – Voluntary Reference of Disputes to Arbitration
Voluntary reference of disputes to arbitration.
4) Where such industrial dispute relates to termination of individual worker by way of discharge,
dismissal, retrenchment or otherwise, the concerned workers shall be represented in person or through
a representative authorised by him.
5) Where an industrial dispute has been referred to arbitration, the appropriate Government may, by
order, prohibit the continuance of any strike or lock-out in connection with such dispute which may be
in existence on the date of the reference.
6) Nothing in the Arbitration and Conciliation Act, 1996, shall apply to arbitrations under this section.
Section 43 --> Chapter VII – Mechanism for Resolution of Industrial Disputes
Conciliation officers.
1) The appropriate Government may, by notification, appoint such number of persons, as it thinks fit to be
conciliation officers, charged with the duty of mediating in and promoting the settlement of industrial
disputes.
2) A conciliation officer may be appointed for a specified area or for specified industries in a specified area
or for one or more specified industries and either permanently or for a limited period
Industrial Tribunal.
1) The appropriate Government may constitute Industrial Tribunals for the adjudication of industrial
disputes.
2) Every Industrial Tribunal shall consist of two members to be appointed by the appropriate Government
out of whom one shall be a Judicial Member and the other, an Administrative Member.
3) A bench of the Tribunal shall consist of a Judicial Member and an Administrative Member or single
Judicial Member or single Administrative Member.
4) A person who has held a post below the rank of Joint Secretary to the Government of India or an
equivalent rank in the Central Government or a State Government, shall not be eligible to be appointed
as an Administrative Member of the Tribunal.
5) The Judicial Member shall preside over the Tribunal where the bench of the Tribunal consists of one
Judicial Member and one Administrative Member.
Finality of constitution of Tribunal
• No notification of the appropriate Government appointing any person as a Judicial Member or an

Administrative Member of a Tribunal shall be called in question in any manner.
• No act or proceeding before the Tribunal shall be called in question in any manner on the ground mainly
of the existence of any vacancy in, or defect in the constitution of such Tribunal.
National Industrial Tribunal
1) The Central Government may constitute National Industrial Tribunals for the adjudication of industrial
disputes which, in the opinion of the Central Government, involve 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.
2) A National Industrial Tribunal shall consist of two members to be appointed by the Central Government
out of whom one shall be a Judicial Member and the other, an Administrative Member.
3) A person shall not be qualified for appointment as the Judicial Member of a National Industrial Tribunal
unless he is, or has been, a Judge of a High Court.
4) A person shall not be qualified for appointment as Administrative Member of a National Industrial
Tribunal unless, he is or has been Secretary to the Government of India or holding an equivalent rank in
the Central Government or State Government, having adequate experience of handling the labour
related matters.
5) The Judicial Member shall preside over a National Industrial Tribunal.

Decision of Tribunal or National Industrial Tribunal.
1) The decision of a Tribunal or a National Industrial Tribunal, as the case may be, shall be by consensus of
the members.
2) If the members of a Tribunal or a National Industrial Tribunal differ in opinion on any point, they shall
state the point or points on which they differ, and make a reference to the appropriate Government.
3) The appropriate Government shall, on receipt of a reference, appoint a Judicial Member of other
Tribunal or a National Industrial Tribunal, who shall hear the point himself and such point or points
shall be decided according to the majority of the members of a Tribunal or a National Industrial
Tribunal who have first heard the case, including the Judicial Member of the other Tribunal who heard
the case thereafter.
Disqualifications for members of Tribunal and National Industrial Tribunal.
1) No person shall be appointed to, or continue in, the office of the member of a Tribunal or National
Industrial Tribunal, respectively, if—
a) he is not an independent person or
b) he has attained the age of sixty-five years.
Procedure and powers of arbitrator, conciliation officer, Tribunal and National Industrial Tribunal
1) A conciliation officer or an officer authorised in this behalf by the Tribunal or National Industrial
Tribunal may, for the purpose of inquiry after giving reasonable notice, enter the premises occupied by
any establishment to which the dispute relates.
2) The conciliation officer, Tribunal and National Industrial Tribunal shall have the same powers as are
vested in a civil court under the Code of Civil Procedure,1908.
3) The appropriate Government may appoint one person having special knowledge of the matter under
consideration as assessors or experts to advise a Tribunal.
Powers of Tribunal and National Industrial Tribunal to give appropriate relief in case of discharge or
dismissal of worker.
1) Where the application relating to an industrial dispute involving discharge or dismissal or otherwise
termination of a worker has been made to a Tribunal and, the Tribunal or National Industrial Tribunal,
is satisfied that the order of discharge or dismissal termination was not justified, it may set aside the
order of discharge or dismissal or termination and direct reinstatement of the worker or give such other
relief to the worker including the award of any lesser punishment in lieu of discharge or dismissal or
termination.
2) A Tribunal or National Industrial Tribunal, may, in the interest of justice, grant such interim relief to the
worker during the pendency of the industrial dispute.
Transfer of pending cases.
1) Not Important
Adjustment of services of presiding officers under repealed Act.
Not Important
Conciliation and adjudication of dispute
1) The conciliation officer shall not hold any proceedings relating to the industrial dispute after two years
from the date on which such industrial dispute arose.
2) If a settlement of the dispute is arrived at in the course of the conciliation proceedings, the conciliation
officer shall send a report thereof to the appropriate Government together with a memorandum of the
settlement signed by the parties to the dispute.
3) If no such settlement is arrived at, the conciliation officer shall, after the close of the investigation, send
to the concerned parties and to the appropriate Government a full report setting forth the steps taken
by him for ascertaining the facts and circumstances relating to the dispute and for bringing about a
settlement and the reasons on account of which a settlement could not be arrived at.
4) The conciliation officer shall send the report to the concerned parties and the appropriate Government
within forty-five days of the commencement of the conciliation proceedings or within such shorter
period as may be fixed by the appropriate Government.
Conciliation and adjudication of dispute
5) Where a conciliation officer receives notice under section 62, he shall send the report to the concerned
parties and to the appropriate Government within fourteen days of the commencement of the
conciliation proceedings.
6) Any concerned party may make application in the prescribed form to the Tribunal in the matters not
settled by the conciliation officer under this section within ninety days from the date on which the
report is received.
Reference to and functions of National Industrial Tribunal
Not Important
Form of award, its communication and commencement
1) An award made under this Code shall become enforceable on the expiry of thirty days from the date of
its communication to the parties.
2) But
a) if the appropriate Government is of the opinion in any case, where the award has been given by a
Tribunal in relation to an industrial dispute to which it is a party or
b) if the Central Government is of opinion in any case, where the award has been given by a National
Industrial Tribunal, that it will be inexpedient on public grounds affecting national economy or
social justice to give effect to the award, the Government may declare that the award shall not
become enforceable on the expiry of the said period of thirty days.
3) Where any declaration has been made in relation to an award under the point (2), the appropriate
Government or the Central Government, may, within ninety days from the date of communication of the
award to the parties, make an order rejecting or modifying the award, and shall, on the first available
opportunity, lay the award together with a copy of the order before the Legislature of the State, if the
order has been made by a State Government, or before Parliament, if the order has been made by the
Central Government.
Form of award, its communication and commencement
4) Where any award as rejected or modified by an order made under sub-section (3) is laid before the
Legislature of a State or before Parliament, such award shall become enforceable on the expiry of fifteen
days from the date on which it is so laid.
5) Where no order under sub-section (3) is made in pursuance of a declaration under the sub-section (2),
the award shall become enforceable on the expiry of the period of ninety days referred to in sub-section
(3).
Payment of full wages to worker pending proceedings in higher Courts.
❑ Where in any case, a Tribunal or a National Industrial Tribunal by its award directs reinstatement of any
worker and the employer prefers any proceedings against such award in a High Court or the Supreme
Court, the employer shall be liable to pay such worker, during the period of pendency of such
proceedings in the High Court or the Supreme Court, full wages last drawn by him, inclusive of any
maintenance allowance admissible to him under any rule if the worker had not been employed in any
establishment during such period and an affidavit by such worker had been filed to that effect in such
Court.
❑ Where it is proved to the satisfaction of the High Court or the Supreme Court that such worker had been
employed and had been receiving adequate remuneration during any such period or part thereof, the
Court shall order that no wages shall be payable under this section for such period or part, as the case
may be
Persons on whom settlements and awards are binding
1) A settlement arrived at by agreement between the employer and worker otherwise than in the course of
conciliation proceeding shall be binding on the parties to the agreement.
2) An arbitration award which has become enforceable shall be binding on the parties to the agreement
who referred the dispute to arbitration.
3) A settlement arrived at in the course of conciliation proceedings under this Code or an arbitration or an
award of a Tribunal or National Industrial Tribunal which has become enforceable shall be binding on—
a) all parties to the industrial dispute
b) all other parties summoned to appear in the proceedings as parties to the dispute
c) where a party is an employer, his heirs, successors or assigns in respect of the establishment to
which the dispute relates
d) where a party is composed of workers, all persons who were employed in the establishment or part
of the establishment, as the case may be, to which the dispute relates on the date of the dispute and
all persons who subsequently become employed in that establishment or part.
Period of operation of settlements and awards.
1) A settlement shall come into operation on such date as is agreed upon by the parties to the dispute, and
if no date is agreed upon, on the date on which the memorandum of the settlement is signed by the
parties to the dispute.
2) Such settlement shall be binding for such period as is agreed upon by the parties, and
if no such period is agreed upon, for a period of six months from the date on which the memorandum
of settlement is signed by the parties to the dispute, and shall continue to be binding on the parties after
the expiry of the period aforesaid, until the expiry of sixty days from the date on which a notice in writing of
an intention to terminate the settlement is given by one of the parties to the other party or parties to the
settlement.
Period of operation of settlements and awards.
3) An award shall, subject to the provisions of this section, remain in operation for a period of one year
from the date on which the award becomes enforceable.
The appropriate Government may, before expiry of the said period, extend the period of operation by any
period not exceeding one year at a time, however, that the total period of operation of any award does not
exceed three years from the date on which it came into operation.
Recovery of money due from employer.
❑ Where any money is due to a worker from an employer under a settlement or an award, the worker
himself or any other person authorised by him, may make an application to the appropriate Government
for the recovery of the money due to him.
❑ Such application shall be made within one year from the date on which the money became due to the
worker from the employer.
❑ Where any worker is entitled to receive from the employer any money or any benefit which is capable of
being computed in terms of money and if any question arises as to the amount of money due or as to the
amount at which such benefit should be computed, then the question may, subject to any rules that may
be made under this Code, be decided by such Tribunal as may be specified in this behalf by the
appropriate Government within a period not exceeding three months.
Commencement and conclusion of proceedings.
1) A conciliation proceeding shall be deemed to have commenced on the date on which the first meeting is
held by the conciliation officer in an industrial dispute after the receipt of the notice of strike or lock-out
by the conciliation officer.
2) A conciliation proceeding shall be deemed to have concluded—

a) where a settlement is arrived at, when a memorandum of the settlement is signed by the parties to
the dispute
b) where no settlement is arrived at, and failure of conciliation is recorded by the conciliation officer;
or
c) when a reference is made to a National Industrial Tribunal, under this Code, during the pendency of
conciliation proceedings.
3) Proceedings before an arbitrator or a Tribunal or a National Industrial Tribunal under this Code shall be
deemed to have commenced on the date of filing application or appeal or on the date of reference of the
dispute for arbitration or adjudication, as the case may be, and such proceedings shall be deemed to
have concluded on the date on which the award becomes enforceable.
Certain matters to be kept confidential
There shall not be included in any report or award under this Code, any information obtained by a
conciliation officer, arbitrator, Tribunal or National Industrial Tribunal, in the course of any investigation or
inquiry as to a Trade Union or as to any individual business which is not available otherwise than through
the evidence given before such conciliation officer, arbitrator, Tribunal, or National Industrial Tribunal, if the
Trade Union, person, firm or company, in question has made a request in writing to the conciliation officer,
arbitrator, Tribunal that such information shall be treated as confidential.
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Section 62 --> Chapter VIII – Strikes & Lockouts
Prohibition of strikes and lock-outs
1) No person employed in an industrial establishment shall go on strike, in breach of contract—
a) without giving to the employer notice of strike, as hereinafter provided, within sixty days before
striking or
b) before the expiry of the date of strike specified in any such notice or
c) during the pendency of any conciliation proceedings before a conciliation officer and seven days
after the conclusion of such proceedings or
d) during the pendency of proceedings before a Tribunal or a National Industrial Tribunal and sixty
days, after the conclusion of such proceedings or
e) during the pendency of arbitration proceedings before an arbitrator and sixty days after the
conclusion of such proceedings or
f) during any period in which a settlement or award is in operation, in respect of any of the matters
covered by the settlement or award.
2) No employer of an industrial establishment shall lock-out any of his workers—
a) without giving them notice of lock-out as hereinafter provided, within sixty days before locking-out or
b) before the expiry of the date of lock-out specified in any such notice or
c) during the pendency of any conciliation proceedings before a conciliation officer and seven days after
the conclusion of such proceedings or
d) during the pendency of proceedings before a Tribunal or a National Industrial Tribunal and sixty days,
conclusion of such proceedings,
f) during any period in which a settlement or award is in operation.
3) If on any day an employer or workers receives from any person such notices, he shall within five days
thereof report to the appropriate Government.
Illegal strikes and lock-outs.
1) A strike or lock-out shall be illegal, if it is —

i. commenced or declared in contravention of section 62 or
ii. continued in contravention of an order made under section 42.
2) Where a strike or lock-out in pursuance of an industrial dispute has already commenced and is in
existence at the time of the filing of the application relating to such industrial dispute in the Tribunal or
of the reference of such industrial dispute to an arbitrator or a National Industrial Tribunal, the
continuance of such strike or lock-out shall not be deemed to be illegal.
3) A lock-out declared in consequence of an illegal strike or a strike declared in consequence of an illegal

lock-out shall not be deemed to be illegal.
Prohibition of financial aid to illegal strikes or lock-outs
No person shall knowingly spend or apply any money in direct furtherance or support of any illegal strike or
lock-out.
No person shall knowingly spend or apply any money in direct furtherance or support of any illegal strike or lock-
out.
Section 65 --> Chapter IX – Layoff, Retrenchment & Closure
Application of sections 67 to 69.
1) Sections 67 to 69 shall not apply to

a) industrial establishments to which Chapter X applies or
b) to industrial establishments in which less than fifty workers on an average per working day have
been employed in the preceding calendar month or
c) to industrial establishments which are of a seasonal character or in which work is performed
intermittently.
2) If a question arises whether an industrial establishment
out. is of a seasonal character or whether work is
performed therein only intermittently, the decision of the appropriate Government thereon shall be
final.
Definition of continuous service.
Continuous service means the uninterrupted service of a worker, including his service which may be
interrupted on account of sickness or authorised leave or an accident or a strike which is not illegal or a
lock-out or a cessation of work which is not due to any fault on the part of the worker.
lock-out.
Rights of workers laidoff for compensation, etc.
Layoff of a worker who has completed one Compensation shall be paid which is equal to
year of continuous service under employer fifty per cent. of the total of the basic wages and
dearness allowance that would have been payable
Exceptions – Badli worker or casual to him, had he not been so laid-off. For all days of
worker lay off (except for weekly holidays)
out.
If during any period of twelve months, a worker is so laid-off for more than forty-five days, no such
compensation shall be payable in respect of any period of the lay-off after the expiry of the first forty-
five days, if there is an agreement to that effect between the worker and the employer
Badli worker means a worker who is employed in an industrial establishment in the place of another worker whose
name is borne on the muster rolls of the establishment, but shall cease to be regarded as such, if he has completed one
year of continuous service in the establishment.
Duty of an employer to maintain muster rolls of workers
It shall be the duty of every employer to maintain for the purposes of this Chapter a muster roll, and to
provide for the making of entries therein by workers who may present themselves for work at the
establishment at the appointed time during normal working hours.
out.
Workers not entitled for compensation in certain cases.
No compensation shall be paid to a worker who has been laid-off—
i. if he refuses to accept any alternative employment in the same establishment from which he has been
laid-off, or in any other establishment belonging to the same employer situated in the same town or
village or situate within a radius of eight kilometres from the establishment to which he belongs, if, in
the opinion of the employer, such alternative employment does not call for any special skill or previous
experience
No person and can be
shall knowingly doneorby
spend the any
apply worker,
moneyprovided
in directthat the wages
furtherance which would
or support of anynormally have
illegal strike been
or lock-
paid to the worker are offered for the alternativeout.
employment also
ii. if he does not present himself for work at the establishment at the appointed time during normal
working hours at least once a day.
iii. if such laying-off is due to a strike or slowing-down of production on the part of workers in another
part of the establishment
Conditions precedent to retrenchment of workers
No worker who has been in continuous service for not less than one year under an employer shall be
retrenched until—
a) the worker has been given one month's notice in writing indicating the reasons for retrenchment and
the period of notice has expired, or the worker has been paid in lieu of such notice, wages for the period
of the notice
b) the worker has been paid, at the time of retrenchment,
out. compensation which shall be equivalent to
fifteen days' average pay, for every completed year of continuous service or any part thereof in excess of
six months and
c) notice in such manner as may be prescribed is served on the appropriate Government.

Procedure for retrenchment
Where any worker in an industrial establishment who is a citizen of India, is to be retrenched and he
belongs to a particular category of workers in that establishment, then, in the absence of any agreement
between the employer and the worker in this behalf, the employer shall ordinarily retrench the worker who
was the last person to be employed in that category, unless for reasons to be recorded the employer
retrenches any other worker.
out.
Reemployment of retrenched worker.
Where any worker is retrenched and the employer proposes to take into his employment any person within
one year of such retrenchment, he shall give an opportunity to the retrenched workers who are citizens of
India to offer themselves for re-employment and such retrenched workers who offer themselves for re-
employment shall have preference over other persons.
out.
Compensation to workers in case of transfer of establishment.
Where the ownership or management of an establishment is transferred, every worker who has been in
continuous service for not less than one year in that establishment immediately before such transfer shall be
entitled to notice and compensation as if the worker had been retrenched.
Nothing in this section shall apply to a worker in any case where there has been a change of employers by
reason of the transfer, if—
a) the service of the worker has out.not been interrupted by such transfer
b) the terms and conditions of service applicable to the worker after such transfer are not in any way less
favourable to the worker than those applicable to them immediately before the transfer and
c) the new employer is, under the terms of such transfer or otherwise, legally liable to pay to the worker, in
the event of his retrenchment, compensation on the basis that his service has been continuous and has
not been interrupted by the transfer.
Sixty days' notice to be given of intention to close down any undertaking.
1) An employer who intends to close down an undertaking shall serve, at least sixty days before the date
on which the intended closure is to become effective, a notice on the appropriate Government stating
clearly the reasons for the intended closure of the undertaking.
2) Not applicable to—

i. anshall
No person industrial establishment
knowingly in which
spend or apply less than
any money fifty furtherance
in direct workers areor
employed orany
support of were employed
illegal strike oronlock-
any
day in the preceding twelve months out.
ii. an industrial establishment set up for the construction of buildings, bridges, roads, canals, dams or
for other construction work or project
Compensation to workers in case of closing down of undertakings.
1) Where an establishment is closed down for any reason, every worker who has been in continuous
service for not less than one year in that undertaking immediately before such closure shall be entitled
to notice and compensation, as if the worker had been retrenched.
2) Where the undertaking is closed down on account of unavoidable circumstances beyond the control of
the employer, the compensation to be paid to the worker, shall not exceed his average pay for three
months.
out.
3) An industrial establishment which is closed down by reason merely of—
i. financial difficulties or
ii. accumulation of un-disposed stocks or
iii. the expiry of the period of the lease or license granted to it or
iv. in case where the undertaking is engaged in mining operations, exhaustion of the minerals in the
area in which operations are carried on,
shall not be deemed to be closed down on account of unavoidable circumstances beyond the control of the
employer within the meaning of the proviso to this sub-section.
4) Where an undertaking engaged in mining operations is closed down by reason merely of exhaustion of
the minerals in the area in which such operations are carried on, no worker shall be entitled to any
notice or compensation, if—
a) the employer provides the worker, at the place located within a radius of twenty kilometres from
such undertaking engaged in mining operation is closed down, with alternative employment
b) the service of the worker has not been interrupted by such alternative employment.
5) Where any undertaking set up for the constructionout. of buildings, bridges, roads, canals, dams or other
construction work is closed down on account of the completion of the work within two years from the
date on which the undertaking had been set up, no worker employed therein shall be entitled to any
compensation, but if the construction work is not so completed within two years, he shall be entitled to
notice and compensation under that section for every completed year of continuous service or any part
thereof in excess of six months.
Effect of laws inconsistent with this Chapter
Not relevant.
out.
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1) No person employed in an industrial establishment shall go on strike, in breach of contract—
a) without giving to the employer notice of strike, as hereinafter provided, within sixty days before
striking or
b) before the expiry of the date of strike specified in any such notice or
c) during the pendency of any conciliation proceedings before a conciliation officer and seven days
d) during the pendency of proceedings before a Tribunal or a National Industrial Tribunal and sixty
days, after the conclusion of such proceedings or
conclusion of such proceedings or
f) during any period in which a settlement or award is in operation, in respect of any of the matters
covered by the settlement or award.
2) No employer of an industrial establishment shall lock-out any of his workers—
a) without giving them notice of lock-out as hereinafter provided, within sixty days before locking-out or
b) before the expiry of the date of lock-out specified in any such notice or
c) during the pendency of any conciliation proceedings before a conciliation officer and seven days after
the conclusion of such proceedings or
d) during the pendency of proceedings before a Tribunal or a National Industrial Tribunal and sixty days,
conclusion of such proceedings,
f) during any period in which a settlement or award is in operation.
3) If on any day an employer or workers receives from any person such notices, he shall within five days
thereof report to the appropriate Government.
Illegal strikes and lock-outs.
1) A strike or lock-out shall be illegal, if it is —

i. commenced or declared in contravention of section 62 or
ii. continued in contravention of an order made under section 42.
2) Where a strike or lock-out in pursuance of an industrial dispute has already commenced and is in
existence at the time of the filing of the application relating to such industrial dispute in the Tribunal or
of the reference of such industrial dispute to an arbitrator or a National Industrial Tribunal, the
continuance of such strike or lock-out shall not be deemed to be illegal.
3) A lock-out declared in consequence of an illegal strike or a strike declared in consequence of an illegal

lock-out shall not be deemed to be illegal.
Prohibition of financial aid to illegal strikes or lock-outs
lock-out.
out.
Application of sections 67 to 69.
1) Sections 67 to 69 shall not apply to

a) industrial establishments to which Chapter X applies or
b) to industrial establishments in which less than fifty workers on an average per working day have
been employed in the preceding calendar month or
c) to industrial establishments which are of a seasonal character or in which work is performed
intermittently.
2) If a question arises whether an industrial establishment
out. is of a seasonal character or whether work is
performed therein only intermittently, the decision of the appropriate Government thereon shall be
final.
Definition of continuous service.
Continuous service means the uninterrupted service of a worker, including his service which may be
interrupted on account of sickness or authorised leave or an accident or a strike which is not illegal or a
lock-out or a cessation of work which is not due to any fault on the part of the worker.
lock-out.
Rights of workers laidoff for compensation, etc.
Layoff of a worker who has completed one Compensation shall be paid which is equal to
year of continuous service under employer fifty per cent. of the total of the basic wages and
dearness allowance that would have been payable
Exceptions – Badli worker or casual to him, had he not been so laid-off. For all days of
worker lay off (except for weekly holidays)
out.
If during any period of twelve months, a worker is so laid-off for more than forty-five days, no such
compensation shall be payable in respect of any period of the lay-off after the expiry of the first forty-
five days, if there is an agreement to that effect between the worker and the employer
Badli worker means a worker who is employed in an industrial establishment in the place of another worker whose
name is borne on the muster rolls of the establishment, but shall cease to be regarded as such, if he has completed one
year of continuous service in the establishment.
Duty of an employer to maintain muster rolls of workers
It shall be the duty of every employer to maintain for the purposes of this Chapter a muster roll, and to
provide for the making of entries therein by workers who may present themselves for work at the
establishment at the appointed time during normal working hours.
out.
Workers not entitled for compensation in certain cases.
No compensation shall be paid to a worker who has been laid-off—
i. if he refuses to accept any alternative employment in the same establishment from which he has been
laid-off, or in any other establishment belonging to the same employer situated in the same town or
village or situate within a radius of eight kilometres from the establishment to which he belongs, if, in
the opinion of the employer, such alternative employment does not call for any special skill or previous
experience
No person and can be
shall knowingly doneorby
spend the any
apply worker,
moneyprovided
in directthat the wages
furtherance which would
or support of anynormally have
illegal strike been
or lock-
paid to the worker are offered for the alternativeout.
employment also
ii. if he does not present himself for work at the establishment at the appointed time during normal
working hours at least once a day.
iii. if such laying-off is due to a strike or slowing-down of production on the part of workers in another
part of the establishment
Conditions precedent to retrenchment of workers
No worker who has been in continuous service for not less than one year under an employer shall be
retrenched until—
a) the worker has been given one month's notice in writing indicating the reasons for retrenchment and
the period of notice has expired, or the worker has been paid in lieu of such notice, wages for the period
of the notice
b) the worker has been paid, at the time of retrenchment,
out. compensation which shall be equivalent to
fifteen days' average pay, for every completed year of continuous service or any part thereof in excess of
six months and
c) notice in such manner as may be prescribed is served on the appropriate Government.

Procedure for retrenchment
Where any worker in an industrial establishment who is a citizen of India, is to be retrenched and he
belongs to a particular category of workers in that establishment, then, in the absence of any agreement
between the employer and the worker in this behalf, the employer shall ordinarily retrench the worker who
was the last person to be employed in that category, unless for reasons to be recorded the employer
retrenches any other worker.
out.
Reemployment of retrenched worker.
Where any worker is retrenched and the employer proposes to take into his employment any person within
one year of such retrenchment, he shall give an opportunity to the retrenched workers who are citizens of
India to offer themselves for re-employment and such retrenched workers who offer themselves for re-
employment shall have preference over other persons.
out.
Compensation to workers in case of transfer of establishment.
Where the ownership or management of an establishment is transferred, every worker who has been in
continuous service for not less than one year in that establishment immediately before such transfer shall be
entitled to notice and compensation as if the worker had been retrenched.
Nothing in this section shall apply to a worker in any case where there has been a change of employers by
reason of the transfer, if—
a) the service of the worker has out.not been interrupted by such transfer
b) the terms and conditions of service applicable to the worker after such transfer are not in any way less
favourable to the worker than those applicable to them immediately before the transfer and
c) the new employer is, under the terms of such transfer or otherwise, legally liable to pay to the worker, in
the event of his retrenchment, compensation on the basis that his service has been continuous and has
not been interrupted by the transfer.
Sixty days' notice to be given of intention to close down any undertaking.
1) An employer who intends to close down an undertaking shall serve, at least sixty days before the date
on which the intended closure is to become effective, a notice on the appropriate Government stating
clearly the reasons for the intended closure of the undertaking.
2) Not applicable to—

i. anshall
No person industrial establishment
knowingly in which
spend or apply less than
any money fifty furtherance
in direct workers areor
employed orany
support of were employed
illegal strike oronlock-
any
day in the preceding twelve months out.
ii. an industrial establishment set up for the construction of buildings, bridges, roads, canals, dams or
for other construction work or project
1) Where an establishment is closed down for any reason, every worker who has been in continuous
service for not less than one year in that undertaking immediately before such closure shall be entitled
to notice and compensation, as if the worker had been retrenched.
2) Where the undertaking is closed down on account of unavoidable circumstances beyond the control of
the employer, the compensation to be paid to the worker, shall not exceed his average pay for three
months.
out.
3) An industrial establishment which is closed down by reason merely of—
i. financial difficulties or
ii. accumulation of un-disposed stocks or
iii. the expiry of the period of the lease or license granted to it or
iv. in case where the undertaking is engaged in mining operations, exhaustion of the minerals in the
area in which operations are carried on,
shall not be deemed to be closed down on account of unavoidable circumstances beyond the control of the
employer within the meaning of the proviso to this sub-section.
4) Where an undertaking engaged in mining operations is closed down by reason merely of exhaustion of
the minerals in the area in which such operations are carried on, no worker shall be entitled to any
notice or compensation, if—
a) the employer provides the worker, at the place located within a radius of twenty kilometres from
such undertaking engaged in mining operation is closed down, with alternative employment
b) the service of the worker has not been interrupted by such alternative employment.
5) Where any undertaking set up for the constructionout. of buildings, bridges, roads, canals, dams or other
construction work is closed down on account of the completion of the work within two years from the
date on which the undertaking had been set up, no worker employed therein shall be entitled to any
compensation, but if the construction work is not so completed within two years, he shall be entitled to
notice and compensation under that section for every completed year of continuous service or any part
thereof in excess of six months.
Effect of laws inconsistent with this Chapter
Not relevant.
out.
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Section 77 --> Chapter X – Special Provisions Relating to lay off, retrenchment and closure in certain
establishments
Application of this Chapter.
• Shall apply to an industrial establishment (not being an establishment of a seasonal character or in

which work is performed only intermittently) in which not less than three hundred workers, or such
higher number of workers as may be notified by the appropriate Government, were employed on an
average per working day in the preceding twelve months.
out.
establishments
Prohibition of lay-off
No worker (other than a badli worker or a casual Where the workers of industrial establishment,
worker) shall be laid-off by his employer except with the being a mine, have been laid-off for reasons of fire,
prior permission of the appropriate Government. flood or excess of inflammable gas or explosion, the
employer shall, within a period of thirty days from
Exceptions – No need of prior permission of govt. if lay- the date of commencement of such lay-off, apply to
off is due to the appropriate Government for permission to
• Noshortage
person of power
shall continue theor
knowingly spend or apply any money in direct furtherance lay-off
support of any illegal strike or lock-
• natural calamity,
out.
• and in the case of a mine, such lay-off is due to fire,
flood, excess of inflammable gas or explosion
Where an application for permission has been made and
the appropriate Government does not communicate the
An order of the appropriate Government granting order granting or refusing to grant permission to the
or refusing permission shall be final and binding on employer within a period of sixty days from the date on
all the parties concerned and shall remain in force which such application is made, the permission applied
for one year from the date of such order. for shall be deemed to have been granted.
establishments
Prohibition of lay-off
The appropriate Government may review its order Where no application for permission or where the
granting or refusing to grant permission. permission for any lay-off has been refused, such
lay-off shall be deemed to be illegal from the date
Where a reference has been made to a Tribunal for on which the workers had been laid-off.
review, it shall pass an award within a period of
thirty days from the date of such reference.
out.
The appropriate Government may owing to such exceptional

circumstances as accident in the establishment or death of the
employer etc. shall extend the time limits for application.
establishments
Conditions precedent to retrenchment of workers to which Chapter X applies
No worker who has been in continuous service An application for permission shall be made by the
for not less than one year under an employer employer stating clearly the reasons for the
shall be retrenched by that employer until,— intended retrenchment and a copy of such
a) the worker has been given three month's application shall also be served simultaneously on
notice in writing indicating the reasons for the workers.
Noretrenchment and the period of notice has
person shall knowingly spend or apply any money in direct furtherance or support of any illegal strike or lock-
expired, or the worker has been paid in lieu
of such notice, wages for the period of the
out.
notice; and Where an application for permission has been
made, the appropriate Government, after making
b) the prior permission of the appropriate enquiry, grant or refuse to grant such permission.
Government has been obtained on an
application made in this behalf
establishments
Where an application for permission has been made Order of the appropriate Government be final
and the appropriate Government does not communicate and binding on all the parties concerned and
the order granting or refusing to grant permission to shall remain in force for one year from the date
the employer within a period of sixty days from the date of such order.
on which such application is made, the permission
applied for shall be deemed to have been granted on the
No personofshall
expiration knowingly
the said period spend
of sixtyor apply any money in direct furtherance or support of any illegal strike or lock-
days.
out.
The appropriate Government may review its order
Where no application for permission is made, or granting or refusing to grant permission.
where the permission for any retrenchment has
been refused, such retrenchment shall be deemed Where a reference has been made to a Tribunal under
to be illegal from the date on which the notice of this sub-section, it shall pass an award within a period of
retrenchment was given to the worker. thirty days from the date of such reference.
establishments
Every worker who is employed in that establishment immediately before the date of application for
permission under this section shall be entitled to receive, at the time of retrenchment, compensation which
shall be equivalent to fifteen days average pay, or average pay of such days as may be notified by the
appropriate Government, for every completed year of continuous service or any part thereof, in excess of
six months.
out.
establishments
Procedure for closing down an industrial establishment
An employer who intends to close down an undertaking Where an application for permission, the appropriate
shall apply for prior permission at least ninety days Government may grant or refuse to grant permission
before the date of intended closure. and a copy of such order shall be communicated to the
employer and the workers.
Not applicable to an undertaking set up for the
construction of buildings, bridges, roads, canals, dams or
Noother
for person shall knowingly
construction work spend or apply any money in direct furtherance or support of any illegal strike or lock-
out. Where the appropriate Government does not
communicate the order granting or refusing to grant
permission to the employer within a period of sixty days
Order of the appropriate Government shall be final
from the date on which such application is made, the
and binding on all the parties and shall remain in permission applied for shall be deemed to have been
force for one year from the date of such order
granted as applied for on the expiration of the said
period of sixty days.
establishments
Procedure for closing down an industrial establishment
The appropriate Government may review its order Where no application for permission is made, or
granting or refusing to grant permission. where the permission for closure has been
refused, such closure shall be deemed to be illegal.
Where a reference has been made to a Tribunal under
this sub-section, it shall pass an award within a period of
thirty days from the date of such reference.
out.
Every worker who is employed in that establishment immediately before the date of application for
permission under this section shall be entitled to receive, compensation which shall be equivalent to
fifteen days average pay, or average pay of such days as may be notified by the appropriate Government, for
every completed year of continuous service or any part thereof, in excess of six months.
establishments
Duty of an employer to maintain muster rolls of workers.
Not relevant
out.
establishments
Certain provisions of Chapter IX to apply to industrial establishment to which this Chapter applies.
Not relevant
out.
Section 83 --> Chapter XI – Worker Re-skilling Fund
Worker reskilling fund

1) The appropriate Government shall set up a fund to be called the worker re-skilling fund.
2) The fund shall consist of—

a) the contribution of the employer of an industrial establishment an amount equal to fifteen days
wages last drawn by the worker immediately before the retrenchment for every retrenched worker
in case of retrenchment only
b) the
No person contribution
shall from such
knowingly spend other
or apply sources
any moneyasinmay be furtherance
direct prescribed by
or the appropriate
support Government.
of any illegal strike or lock-
out.
3) The fund shall be utilised by crediting fifteen days wages last drawn by the worker to his account who is
retrenched, within forty-five days of such retrenchment.
Section 84 --> Chapter XII – Unfair Labour Practices
Prohibition of unfair labour practice.

No employer or worker or a Trade Union shall commit any unfair labour practice specified in the Second
Schedule.
out.
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Video 4 - THE OCCUPATIONAL SAFETY, HEALTH AND
WORKING CONDITIONS CODE, 2020
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Chapter XI– SPECIAL PROVISIONS FOR CONTRACT LABOUR AND INTER-STATE MIGRANT WORKER, ETC
Part I – Contract Labour
1) This Part shall apply to—

i. every establishment in which fifty or more contract labour are employed or were employed on any
day of the preceding twelve months through contract
ii. every manpower supply contractor who has employed, on any day of the preceding twelve months,
fifty or more contract labour
2) This Part shall not apply to the establishment in which work only of an intermittent or casual nature is
performed.
For the purpose of this sub-section, work performed in an establishment shall not be deemed to be of an
intermittent nature—
a) if it was performed for more than one hundred and twenty days in the preceding twelve months; or
b) if it is of seasonal character and is performed for more than sixty days in a year.
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 No contractor to whom this Part applies shall—

a) supply or engage contract labour in any establishment or
b) undertake or execute the work through contract labour,
except under a licence issued to him by the authority
 Where the contractor does not fulfil the requisite qualifications, the authority may issue him a "work
specific licence" electronically renewable within such period as may be prescribed by the Central
Government to supply or engage the contract labour, or execute the work through contract labour, only
for the concerned work order as may be specified in such licence.
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• The licence issued shall be valid for a period of five years in respect of the number of contract labour
specified therein and in case the contractor wants to increase the number of the contract labour, he shall
apply in the prescribed manner for the amendment to the licence to the authority and if the licence is so
amended, the number of contract labour shall be increased to such extent.
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The contractor shall not charge directly or indirectly, in whole or in part, any fee or commission from the contract
labour.
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• When a contractor receives work order from an establishment either to supply contract labour in the
establishment or to execute the contract through contract labour in the establishment he shall, within such
time and in such manner as may be prescribed, intimate to the authority .
• Where the contractor fails to give intimation, the designated authority may, after giving the holder of the
licence an opportunity of showing cause, suspend or cancel the licence.
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If the authority is satisfied that—

a) a licence granted for the purposes of this Part has been obtained by misrepresentation or
suppression of any material fact or
b) the holder of a licence has, failed to comply with the conditions subject to which the licence has
been granted or has contravened any of the provisions of this Part or the rules made thereunder,
then the authority may revoke or suspend the license.
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• Any person aggrieved by an order made may authority, within thirty days from the date on which the
order is communicated to him, prefer an appeal to an appellate authority.
• On receipt of an appeal, the appellate authority shall, after giving the appellant an opportunity of being
heard, dispose of the appeal within thirty days from the date on which the appeal is preferred.
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Welfare facilities specified under section 23 and section 24 shall be provided by the principal employer of
the establishment to the contract labour who are employed in such establishment.
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Where any principal employer of an establishment is employing contract labour through a contractor who is
required to obtain a licence under this Part, but he has not obtained such licence, then, such employment shall
be deemed to be in contravention of the provision of this Code.
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1) A contractor shall be responsible for payment of wages to each contract labour employed by him and
such wages shall be paid before the expiry of such period as may be prescribed by the appropriate
Government.
2) Every contractor shall, make the disbursement of wages through bank transfer or electronic mode and
inform the principal employer electronically the amount so paid by such mode.
Provided that where it is not practicable to disburse payment in the mode specified in this section, then, the
payment shall be made in such manner as may be prescribed by the appropriate Government.
3) In case the contractor fails to make payment of wages within the prescribed period or makes short
payment, then, the principal employer shall be liable to make payment of the wages in full or the unpaid
balance due, as the case may be, to the concerned contract labour employed by the contractor and
recover the amount so paid from the contractor
4) The appropriate Government, in the event the contractor does not pay the wages to the contract labour
employed by him, shall pass the orders of making payment of such wages from the amount deposited by
such contractor as security deposit under the licence issued by the licensing officer to the contractor.
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 Every concerned contractor shall issue, on demand, experience certificate, to the contract labour giving
details of the work performed by such contract labour.
 Employment of contract labour in core activities of any establishment is prohibited.

Provided that the principal employer may engage contract labour through a contractor to any core activity,
if—
a) the normal functioning of the establishment is such that the activity is ordinarily done through
contractor or
b) the activities are such that they do not require full time workers for the major portion of the
working hours in a day or for longer periods, as the case may be
c) any sudden increase of volume of work in the core activity which needs to be accomplished in a
specified time.
 The appropriate Government may appoint a designated authority to advise that Government on the
question whether any activity of an establishment is a core activity.
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Part II – Inter State Migrant Workers
 This Part shall apply to every establishment in which ten or more inter-State migrant workers are
employed or were employed on any day of the preceding twelve months.
 It shall be the duty of every contractor or the employer of an establishment employing inter-State
migrant workers in connection with the work of that establishment—
i. to ensure suitable conditions of work to such worker having regard to the fact that he is required to
work in a State different from his own State
ii. in case of fatal accident or serious bodily injury to any such worker, to report to the specified
authorities of both the States and also the next of kin of the worker
iii. to extend all benefits to such worker which are available to a worker of that establishment
including benefits under ESI or the EPF or any other law for the time being in force and the facility
of medical check-up.
 The employer shall pay, to every inter-State migrant worker employed in his establishment, in a year a
lump sum amount of fare for to and fro journey to his native place from the place of his employment
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Part II – Inter State Migrant Workers
 The appropriate Government shall make schemes to provide—

a) option to an inter-State migrant worker for availing benefits of public distribution system either in
his native State or the destination State where he is employed
b) for portability of the benefits of the inter-State migrant worker working for building or other
construction work out of the building and other construction cess fund in the destination State
where such inter-State migrant worker is employed.
 No suit or other proceeding shall lie in any court or before any authority for the recovery of debt relating
to an inter-State migrant worker after the completion of his employment where it remains unsettled
obligation to the contractor or the principal employer and such debt shall, on the completion of the
period of employment of such worker, be deemed to have been extinguished.
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Part III – Audio Visual Workers
 No person shall be employed as an audio-visual worker in production of any audio-visual programme

unless—
a) an agreement in writing is entered into—
i. with such person by the producer of such audio-visual programme or
ii. with such person by the producer of such audio-visual programme with the contractor, where
such person is employed through such contractor or
iii. with such person by the contractor or other person through whom such person is employed;
and
b) such agreement is registered with the competent authority by the producer of such audio-visual
programme.
 Every agreement shall include, where such audio-visual worker is employed through a contractor, a
specific condition to the effect that in the event of the contractor failing to discharge his obligations to the
audio-visual worker with respect to payment of wages or any other matter, the producer of the audio-
visual programme shall also be liable to discharge such obligations and shall be entitled to be reimbursed
with respect thereto by the contractor.
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Part III – Audio Visual Workers
 The agreement shall include—

i. nature of assignment
ii. wages and other benefits (including provident fund
iii. health and working conditions;
iv. Safety
v. hours of work
vi. welfare facilities; and
vii. dispute resolution process
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Part IV – Mines
 Every mine shall be under a sole manager and the owner or agent of every mine shall appoint a person
having such qualifications to be the manager.
Provided that the owner or agent may appoint himself as manager if he possesses the prescribed
qualifications.
 The manager shall be responsible for the overall management, control, supervision and direction of the
mine and all such instructions when given by the owner or agent shall be confirmed in writing forthwith.
 Except in case of an emergency, the owner or agent of a mine or anyone on his behalf shall not give,
otherwise than through the manager, instructions affecting the fulfilment of his statutory duties, to a
person, employed in a mine, who is responsible to the manager.
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Part IV – Mines
 The provisions of this Code shall not apply to—

a) any mine in which excavation is being made for prospecting purposes only and not for the purpose
of obtaining minerals for use or sale relating to number of employees, depth of excavation and other
matters as may be prescribed.
b) any mine engaged in the extraction of kankar, murrum, laterite, boulder, gravel, shingle, ordinary
sand (excluding mouldings and glass sand and other mineral sands), ordinary clay (excluding
kaolin, china clay, white clay or fire clay), building stone, slate, road metal, earth, fullers earth (marl,
chalk) and lime stone.
 In case of an emergency involving serious risk to the safety of the mine or of persons employed therein,
or in case of an accident, whether actual or apprehended, or in case of any act of God or in case of any
urgent work to be done to machinery, plant or equipment of the mine as a result of breakdown of such
machinery plant or equipment, the manager may permit persons to be employed on such work as may be
necessary to protect the safety of the mine or of the persons employed therein.
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Part IV – Mines
 Every case in which action has been taken by the manager shall be recorded together with the
circumstances relating thereto and a report thereof shall also be made to the Chief Inspector-cum-
Facilitator or the Inspector-cum-Facilitator
 No person below eighteen years of age shall be allowed to work in any mine or part thereof.
 Apprentices and other trainees, not below sixteen years of age, may be allowed to work, under proper
supervision, in a mine or part thereof by the manager
Provided that in the case of trainees, other than apprentices, prior approval of the Chief Inspector-cum-
Facilitator or an Inspector-cum-Facilitator shall be obtained before they are allowed to work.
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Part V – Beedi and Cigar Workers
❖ No employer shall use or allow to use any place or premises as an industrial premises unless he holds a
valid licence.
❖ Any person who intends to use or allows to use any place or premises shall make an application to the
authority for a licence to use, or allow to use, such premises as an industrial premises.
❖ The application shall specify the maximum number of employees proposed to be employed at any time of
the day in the place or premises and shall be accompanied by a plan of the place or premises
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❖ The authority thereof shall, in deciding whether to grant or refuse to grant a licence, have regard to the
following matters, namely:—
a) the suitability of the place or premises which is proposed to be used for the manufacture of beedi or
cigar
b) previous experience of the applicant
c) the financial resources of the applicant including his financial capacity
d) whether the application is made bona fide on behalf of the applicant himself
e) welfare of the labour in the locality, the interest of the public generally and such other matters as
may be prescribed by the State Government.
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❖ A licence granted under the said section for the purposes of this section shall be valid for five years and
may be renewed thereafter.
❖ An application for the renewal of a licence for the purposes of this Part shall be made at least thirty days
before the expiry of the period thereof, on payment of fees and where such an application has been made,
the licence shall be deemed to continue, until the renewal of the licence, or the rejection of the
application for the renewal thereof
❖ The authority may, after giving the holder of a licence an opportunity of being heard, cancel or suspend
any licence granted or renewed if it appears to it that such licence has been obtained by
misrepresentation or fraud or that the licensee has contravened or failed to comply with any of the
provisions of this Part or the rules made thereunder
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❖ Any person aggrieved by the decision of the authority refusing to grant or renew a licence, or cancelling
or suspending a licence, may appeal to the appellate authority and such authority may by order confirm,
modify or reverse any order refusing to grant or renew a licence, or cancelling or suspending a licence,.
❖ The State Government may permit the wetting or cutting of beedi or tobacco leaves by employees outside
the industrial premises on an application made to it by the employer on behalf of such employees,
subject to such conditions as may be prescribed.
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❖ No employer shall require or allow any manufacturing process connected with the making of beedi or
cigar or both to be carried on outside the industrial premises.
Nothing in this sub-section shall apply to any worker who is given raw material by an employer or a
contractor to make beedi or cigar or both at home.
Nothing contained in this Part shall apply to the owner or occupier of a private dwelling house, not being an
employee of an employer to whom this Part applies, who carries on any manufacturing process in such
private dwelling house with the assistance of the members of his family living with him in such dwelling
house and dependent on him.
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Part VI – Building or other construction workers
No person, about whom the employer knows or has reasons to believe that he is a deaf or he has a defective
vision or he has a tendency to giddiness, shall be required or allowed to work in any such operation of
building or other construction work which is likely to involve a risk of any accident either to the building
worker himself or to any other person.
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Part VII – Factories
❑ The appropriate Government may make rules in respect of factory

❑ the submission of plans including specifications, nature and certification thereof
❑ the previous permission for the site on which the factory is to be situated and for the construction
or extension thereof and
❑ subject to the provision of sub-section 119, licensing and renewal thereof including fees to be
payable for such, licensing and renewal, if required, as the case may be.
❑ If on an application for permission accompanied by the plans and specifications required by the rules
made sent to the State Government or Chief Inspector-cum-Facilitator in the electronic mode, no order
is communicated to the applicant within such period not exceeding thirty days, the permission applied
for in the said application shall be deemed to have been granted.
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❑ Where a State Government or a Chief Inspector-cum-Facilitator refuses to grant permission to the site,
construction or extension of a factory and licensing of a factory, the applicant may within thirty days of the
date of such refusal appeal to the Central Government if the decision appealed from was of the State
Government and to the State Government in any other case.
Explanation.—A factory shall not be deemed to be extended within the meaning of this section by reason only of
the replacement of any plant or machinery or within such limits as may be prescribed, of the addition of any plant
or machinery if such replacement or addition does not reduce the minimum clear space required for safe working
around the plant or machinery or adversely affect the environmental conditions from the evolution or emission of
steam, heat or dust or fumes injurious to health.
❑ Where any premises or separate buildings are leased to different occupiers for use as separate factories, the
owner of the premises and occupiers of the factories utilising such common facilities which include safety and
fire prevention and protection, access, hygiene, occupational health, ventilation, temperature, emergency
preparedness and response, canteens, shelter, rest rooms and crèches shall jointly and severally be
responsible for provision and maintenance of such common facilities and services as may be prescribed by
the appropriate Government.
❑ The appropriate Government may declare that all or any of the provisions of this Part shall apply to any
place wherein a manufacturing process is carried on with or without the aid of power or is ordinarily
carried on irrespective of the number of workers working in the factory.
❑ After a place is so declared, it shall be deemed to be a factory for the purposes of this Code, and the
owner shall be deemed to be the occupier, and any person working therein, a worker.
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❑ The appropriate Government may, constitute one or more site appraisal committees to consider and to
give recommendations on an application for grant of permission for the initial location of a factory
involving a hazardous process or for the expansion of such factory.
❑ The site appraisal committee shall make its recommendation within a period of thirty days of the receipt
of the application.
❑ The occupier of every factory involving a hazardous process shall disclose all information regarding
dangers, including health hazards and the measures to overcome such hazards arising from the exposure
to or handling of the materials or substances in the manufacture, transportation, storage and other
processes, to the workers employed in the factory, the Chief Inspector-cum-Facilitator or Inspector-cum-
Facilitator, the local authority within whose jurisdiction the factory is situate and the general public in
the vicinity.
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❑ The occupier shall, at the time of registering the factory involving a hazardous process, lay down a
detailed policy with respect to the health and safety of the workers employed therein and intimate such
policy to the Chief Inspector-cum-Facilitator or Inspector-cum-Facilitator and the local authority and, of
any change made in the said policy.
❑ Every occupier shall, with the approval of the Chief Inspector-cum-Facilitator, draw up an on-site
emergency plan and detailed disaster control measures for his factory and make known to the workers
employed therein and to the general public living in the vicinity of the factory the safety measures
required to be taken in the event of an accident taking place.
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❑ Every occupier of a factory shall, if such factory proposes to engage in a hazardous process at any time
after the commencement of this Code, within a period of thirty days before the commencement of such
process, inform the Chief Inspector-cum-Facilitator about the nature and details of the process
❑ Where any occupier of a factory contravenes the provisions above, the licence issued shall, be liable for
cancellation.
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❑ Every occupier of a factory involving any hazardous process shall—
a) maintain accurate and up-to-date health records of the workers in the factory
b) appoint persons who possess prescribed qualifications and experience in handling hazardous
substances and are competent to supervise such handling (where any question arises as to the
qualifications and experience of a person so appointed, the decision of the Chief Inspector-cum-
Facilitator shall be final)
c) provide for medical examination of every worker
❑ The Central Government may, in the event of the occurrence of an extraordinary situation involving a
factory engaged in a hazardous process, direct the National Board to inquire into the standards of health
and safety observed in the factory with a view to finding out the causes of any failure or neglect in the
adoption of any measures or standards.
❑ The recommendations of the National Board shall be advisory in the nature.
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❑ Where the Central Government is satisfied that no standards of safety have been prescribed in respect of
a hazardous process or where the standards so prescribed are inadequate, it may direct the Directorate
General Occupational Safety and Health formerly known as the Directorate General of Factory Advice
Service and Labour Institutes or any Institution authorised in matters relating to standards of safety in
hazardous processes, to lay down emergency standards for enforcement of suitable standards in respect
of such hazardous processes.
❑ Where the workers employed in any factory engaged in a hazardous process have reasonable
apprehension that there is a likelihood of imminent danger to their lives or health due to any accident,
they may, bring the same to the notice of the occupier, agent, manager or any other person who is in-
charge of the factory or the process concerned directly or through their representatives in the Safety
Committee and simultaneously bring the same to the notice of the Inspector-cum-Facilitator.
❑ It shall be the duty of such occupier, agent, manager or the person in-charge of the factory or process to
take immediate remedial action if he is satisfied about the existence of such imminent danger and send a
report forthwith of the action taken to the Inspector-cum-Facilitator.
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❑ If the occupier, agent, manager or the person in-charge is not satisfied about the existence of any
imminent danger as apprehended by the workers, he shall, nevertheless, refer the matter forthwith to the
Inspector-cum-Facilitator whose decision on the question of the existence of such imminent danger shall
be final.
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Part VIII – Plantation
❑ The State Government may prescribe requiring every employer to make provisions in his plantation
for—
a) necessary housing accommodation including drinking water, kitchen and toilet to every worker
employed in the plantation (including his family)
(b) creches facilities where in the plantation fifty or more workers (including workers employed by any
contractor) are employed or were employed on any day of the preceding twelve months.
(c) educational facilities for the children of the workers employed in the plantation where the children
between the ages of six to twelve of the workers exceed twenty-five in number;
(d) health facilities to every worker employed in the plantation (including his family) and
(e) recreational facilities for the workers employed in the plantation.
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❑ An employer of a plantation shall be responsible to provide and maintain welfare facilities for which the
workers in the plantation are entitled under this Code either from his own resources or through the
schemes of the Central Government or State Government, Municipality or Panchayat for the locality in
which the plantation is situated.
❑ In every plantation, arrangement shall be made by the employer to provide for the safety of a worker in
connection with the use, handling, storage and transport of insecticides, pesticides and chemicals and
toxic substances.
❑ The State Government may prescribe for special safeguards for employment of women or adolescents in
using or handling hazardous chemicals.
❑ The employer of a plantation shall appoint persons possessing the prescribed qualifications to
supervise the use, handling, storage and transportation of insecticides, chemicals and toxic substances
in his plantation.
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❑ Every employer of a plantation shall ensure that every worker in plantation employed for handling,
mixing, blending and applying insecticides, chemicals and toxic substances, is trained about the hazards
involved in different operations in which he is engaged, the various safety measures and safe work
practices to be adopted in emergencies arising from spillage of such insecticides, chemicals and toxic
substances and such other matters as may be prescribed by the State Government.
❑ Every worker in a plantation who is exposed to insecticides, pesticides, chemicals and toxic substances
shall be medically examined periodically, in such manner as may be prescribed by the State
Government.
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❑ Every employer of a plantation shall maintain health record of every worker in plantation who is
exposed to insecticides, pesticides, chemicals and toxic substances which are used, handled, stored or
transported in a plantation, and every such worker shall have access to such record.
❑ Every employer of a plantation shall provide—

a) washing, bathing and clock room facilities; and
b) protective clothing and equipment, to every worker engaged in the handling insecticides, pesticides,
chemicals and toxic substances in such manner as may be prescribed by the State Government.
❑ Every employer of a plantation shall exhibit such precautionary notices in the plantation as may be
prescribed by the State Government indicating the hazards of insecticides, pesticides, chemicals and
toxic substances.
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Chapter XIII– SOCIAL SECURITY FUND
❑ There shall be established by the appropriate Government a social security fund for the welfare of the
unorganised workers to which there shall be credited the amount received from composition of the
offence and the amount of the penalty.
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Acts Repealed by The Code
1) The Factories Act, 1948

2) The Plantations Labour Act, 1951
3) The Mines Act, 1952
4) The Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous
Provisions Act, 1955
5) The Working Journalists (Fixation of Rates of Wages) Act, 1958
6) The Motor Transport Workers Act, 1961
7) The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
8) The Contract Labour (Regulation and Abolition) Act, 1970
9) The Sales Promotion Employees (Conditions of Service) Act, 1976
10) The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
11) The Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981
12) The Dock Workers (Safety, Health and Welfare) Act, 1986
13) The Building and Other Construction Workers (Regulation of Employment and Conditions of Service)
Act, 1996.
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Schedules to The Code
❖ First Schedule - List of Industries involving hazardous processes
❖ Second Schedule - List of certain matters for which the Central Government shall declare standards
❖ Third Schedule – List of Notifiable Diseases
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Chapter 1 --> Overview of Industrial Relations

Objectives clash  The

Traditional Approach Modern Approach

The modern approach includes not only the

Earlier, the industrial relations were managed themselves by the

 The Directive Principles of State Policy enshrined in the constitution act as

ANY POLICY, RULE OR LAW CANNOT VIOLATE THE FUNDAMENTAL RIGHTS.

Some of the important provisions in the Constitution are

 Article 14 - Right to Equality

 Article 15 – Prohibition of discrimination

 Article 19 – Right to freedom of speech and association

 Article 21 – Right to life and personal liberty

 Article 23 – Prohibition of traffic in human beings and forced labour

 Article 24 – Prohibition of employment of children in factories

 Article 38 – Secure a social order for the promotion of welfare of people

Pre Independence Phase Post Independence Phase

Industrial Revolution Industrial First Industry in Cotton Mill

The Indian National Trade

A Tripartite Conference was  First Five year Plan(1951-

Which is the first workers’ association in India?

1. Bombay Mill Hands Association

1. First Five year plan

 Was set up on 24th December,1966 under the Chairmanship of Justice PB Gajendragadkar.

Amendments of certain laws

Enactment of new laws

Commission gave recommendations

 Globalisation has resulted in multinational corporations (MNCs) establishing their operations in

 Globalisation has increased migration of workers from one territory to another.

 Human Resource Management (HRM) is a process that helps in proper utilisation

 Human Resource Development (HRD) is a set of systematic and planned activities

 HRD is subset of HRM.

SIMILARITIES BETWEEN HRM/HRD AND INDUSTRIAL RELATIONS

a. Both address employee-related concerns HRM/HRD

c. Industrial relations as an area is construed to be dealing with labour/ blue-collar employees

Concern of employers To support their

TWO IMPORTANT PRINCIPLE OF LABOUR

SOCIAL EQUITY SOCIAL JUSTICE

Regulatory Wage-related Welfare Protective Social security

A) The Factories Act, A) The Bonded Labour

Who was the Chairman of The First National Commission on Labour?

The three actors function in an

 Industrial relations system consist of three actors

 Both the parties must work together to

 There should be no conflict.

 Views conflict as a negative force rather than as an opportunity to achieve harmony.

Unequal Distribution of Conflict is seen as Tells no ways to fulfil

 Conflict can be there but they can be

 The Pluralist Theory of Flanders is the opposite of the Unitary Theory.

Rules and procedures do not adapt to

1) Work and working conditions in an

 Inspired by the Marxist view on capitalism.

 Trade unionism is a natural outcome and an inherent feature of a capitalistic society,

Discussion in detail in further chapters.

 Industrial Relations in India is tripartite in nature.

Government Forums and

Management Workers/ Trade Unions

Union List Concurrent List

The role of the State is The Government has