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LABOUR AND
INDUSTRIAL
LAW

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TABLE OF CONTENTS

TRADE UNIONS ACT, 1926

Trade Union………………………………………………………………………………………………………………..4

Registration of Trade Union………………………………………………………………………………………..5

Rights of Trade Union………………………………………………………………………………………………….8

Liabilities & Duties of Trade Union……………………………………………………………………………..10

Immunity from Civil & Criminal Liability………………………………………………………………………11

INDUSTRIAL DISPUTES ACT, 1947

Industrial Dispute…………………………………………………………………………………………………………13

Objects of Industrial Disputes Act…………………………………………………………………………………15

Main Features of Industrial Disputes Act………………………………………………………………………16

Industry…………………………………………………………………………………………………………………………17

Controlled Industry……………………………………………………………………………………………………….18

Industrial Establishment/Undertaking…………………………………………………………………………..19

Workman……………………………………………………………………………………………………………………….20

Employer………………………………………………………………………………………………………………………..21

Appropriate Government……………………………………………………………………………………………….22

Public Utility Service…………….…………………………………………………………………………………………23

Wages…………………………………………………………………………………………………………………………….24

Award……………………………………………………………………………………………………………………………..25

Continuous Service………………………………………………………………………………………………………….26

Retrenchment………………………………………………………………………………………………………………….27

Layoff……………………………………………………………………………………………………………………………...30

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Strike…………………………………………………………………………………………………………………………………31

Lockout……………………………………………………………………………………………………………………………..32

Legal & Illegal- Strike/Lockout……………………………………………………………………………………………33

Closure……………………………………………………………………………………………………………………………….36

Unfair Labour Practice………………………………………………………………………………………………………..37

Collective Bargaining…………………………………………………………………………………………………………..39

Authorities/Machinery for Settlement of Industrial Disputes………………………………………………40

Grievance Settlement Authority…………………………………………………………………………………………..41

Works committee………………………………………………………………………………………………………………..42

Conciliation………………………………………………………………………………………………………………………….43

Conciliation Officer………………………………………………………………………………………………………………43

Conciliation Board……………………………………………………………………………………………………………….44

Court of Inquiry……………………………………………………………………………………………………………………46

Labour Court……………………………………………………………………………………………………………………….47

Industrial Tribunal……………………………………………………………………………………………………………….50

National Industrial Tribunal…………………………………………………………………………………………………52

PAYMENT OF WAGES ACT, 1936………………………………………………………………………………………..54

WORKMEN COMPENSATION ACT, 1923…………………………………………………………………………….57

MATERNITY BENEFIT ACT, 1961………………………………………………………………………………………….60

EMPLOYEES’ PROVIDENT FUND………………………………………….................................................61

Previous Years Questions……………………………………………………………………………………………………63

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TRADE UNION

DEFINITION

Section 2 (h) of Trade Unions Act 1926

o Combination (or association)

o Temporary or Permanent
o Purpose-
 Regulating relations between-
 Workmen & Employers
 Workmen & Workmen
 Employers & Employers
 OR
 Imposing Restrictive Conditions
 On conduct of any trade, business
o Includes federation of two or more Trade Unions

QUALIFICATIONS

 Member- 15 years old or more

 Office bearer or member of Executive- 18 years old or more
 Not convicted by court
 For offence – moral turpitude
 Imprisonment
 (unless 5 years elapsed since release)

Q. Can an Outsider be office bearer?

Ans. Yes – 50%

Actually engaged or employed in industry – to which Union is connected- Not less than 50%

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REGISTRATION OF TRADE UNIONS

Trade Unions Act, 1926

 Section 4
o 7 or more
o Members of Trade Union may apply
 Section 4(2)
o If after application and before registration
o Some applicants-
 Ceased to be members
 Written notice to Registrar of dissociation from application
 If
 More than half- No Registration
 Less than half- Registration
 Example-
 7 applied
 4 take back- No Registration
 3 take back- Registration

Copy of Rules-

o With every application

o Rules-
 Name, Object, Funds- Purpose permissible under act
 List maintain, Admission of members
 Subscription payment, Benefits, Fines
 Rule- amend, vary, rescind
 Members, Executive, Office Bearer- Appoint, Remove
 Trade Union – Dissolve

Further Particulars & Name Alteration-

o In opinion of Registrar-
 Non compliance of rules
 Empowered to call for further information
 For satisfying himself
o If name identical or nearly resemble
 Alter the name

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Registration

Certificate-

o To be issued
o Registrar is bound, Cannot refuse

Withdrawal or Cancel-

o Two ways-
 On application of Trade Union
 On will of Registrar

 On application of Trade Union-

 After proper steps-
o General Meeting
o Majority
 No need of 2 months prior notice by Registrar
 On will of Registrar-
 Grounds-
o Certificate obtained by fraud or mistake
o Trade Union cease to exist
o Contravened any provision- willfully and after notice
o Allowed rule- inconsistent with Trade Union Act
o Rescind any rule- providing for manner of-
 Executive, Office Bearer- appoint, remove
 Dissolution of Trade Union
 2 month prior notice by Registrar

Remedies for-

o Refusal to register
o Withdrawal of certificate
o Cancellation of certificate

Appeal-

 Who can appeal-

 Only such person- whose rights, interest affected by order
 ‘Person’- natural, artificial (Trade Union itself against withdrawal,
cancellation )

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Courts-

 High Court
o If Head Office of Union –Within limits of Presidency Town
 Court not inferior to Court of Additional/Assistant Judge of Principal
Civil Court
o If Head Office- Not within limits of Presidency Town
o Appointed by Appropriate Government
o Appeal to High Court of that area

 Powers of Appellate Court-

o Dismiss appeal- after hearing parties
o Direct Registrar to register & issue Certificate
o Set aside order of withdrawal/cancellation – on merit
 Order binding on Registrar- Comply without delay
 Procedure- Same as Civil Procedure Code

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RIGHTS
OF REGISTERED TRADE UNION

RIGHTS

As a legal person-

 (Registered Trade Union to become legal person by name under which registered)
o Right to have common seal in its own name
o Right to contract in own name
o Right to acquire, hold, dispose- Property (Movable/Immovable)
o Right to sue in own name for infringement of right
 Or to get sued

Spend General Funds-

(Two funds-

 General Fund
 Political Fund

Restrictions on use , Spend only for-)

o Payment of salaries, allowance, expenses of- Office bearers

o Payment of expenses of administration, including audit of fund
o Legal proceeding-
 Prosecution or Defence
 For protecting or securing rights
o Trade Dispute-
 Conduct
 Compensation to members for loss
o Allowance to members/dependants – death, sickness, accident, unemployment
o Assurance policy- Undertaking liability/ issue- life, sickness, accident, unemployment
o Benefits- Educational, social, religious – members, dependents
o Periodical- Questions affecting workmen or employer
o Any other object- Appropriate Government may notify in Official Gazette

Constitute separate Political Fund-

o Constituted separately

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o By way of separate levy on members

o For political or civil interests of members

Change its Name-

o Consent- 2/3 of total members

o Subject to rules of S.25

Amalgamate-

o Two or more registered

o Voting- atleast half of total
o Favour- atleast 60% of voting

In respect of Industrial matters

(Representation and taking action- on behalf of workmen)

o Represent before employer in works committees

 Before conciliation, mediation, arbitration before courts, tribunals, labour dept.
o Negotiate and settle dispute- with employers
 Sign, settlement, execute
o Hold meetings, conference, post notices, inspect workplace where members employed
o Accept service of notice, summons etc.
o Other formalities- attestation of agreements
o Obtain legal aid
o Collect fee on employer’s premises
o Stage demonstrations & strikes
 Most important right
 Common law right
 Not fundamental or absolute right

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LIABILITIES & DUTIES

OF REGISTERED TRADE UNIONS

 Make rules for certain matters-

o (Section 6 contains these matters)-
o Object of establishment
o Purposes- on which General Fund to be spent
o Admission of members
o Manner of dissolution
 Constitute Executive-
o According to Trade Unions Act provisions
o Condition precedent to registration
 Spend General Fund in accordance with S.15 only-
o Certain specified objects
 If Political Fund-
o Separate
 Provide access to books-
o Account books, members list
o For inspection by office bearers, members
 Notice to Registrar-
o Name change, amalgamation, head office address change, dissolution
 Send statement of audit to Registrar-
o In prescribed manner, on prescribed date

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IMMUNITY
FROM CIVIL AND CRIMINAL LIABILITY

Immunity to Trade Union, Its Members & Office Bearers

CRIMINAL IMMUNITY

Trade Unions Act, 1926

Section 17

o Not liable for – Criminal Conspiracy

o In respect of agreement between members
o For furthering object U/S. 15
o Except agreement to commit offence
o S.15 –Objects- On which general funds may be spent
 Like-
 Conduct of Trade Dispute
 Compensation to members for loss on dispute

CIVIL IMMUNITY

Section 18

o Any act done

o In contemplation or furtherance of Trade Dispute
o (Should be party to dispute)

Ground-

o Such act induces some other person to break contract of employment

o Interferes with some other person’s trade, business or employment
o Interferes with some other person’s right to dispose capital, labour at will
o (Generally to pressurize – for better working conditions
o Unless all workers stopped- hard to compel employer)

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Tortious Act-

o Trade Union not liable

o When act done by agent of Trade Union
o In contemplation or furtherance of trade dispute
o If Proved-
 Acted without knowledge or contrary to express instructions of executive

Agreement in Restraint of Trade

o Agreement having any object – in Restraint of Trade

o Neither void nor voidable
o This right is not for unregistered Trade Union
 Have to follow general contract law

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INDUSTRIAL DISPUTE

DEFINITION

Industrial Disputes Act, 1947

Section 2 (k)

o Any dispute or difference between -

 Employers & Workmen
 Employers & Employers
 Workmen & Workmen
o Connected with-
 Employment or Non- Employment
 Terms of Employment
 Conditions of labour of any person

Q. When does Industrial Dispute arise?

Ans. Only when

 Demand is made by workmen

 & is rejected by management
 Or vice-versa

Case Laws

Star Paper Mills Vs Industrial Tribunal

“If demand by workmen – Accepted by Employer & Workmen satisfied

No Industrial Dispute will ever come into existence.”

Village Papers Pvt. Ltd. Vs Himachal Pradesh

“If demand not communicated to management- No Industrial Dispute arise.”

Q. Is a dispute between single workman & his employer – Industrial Dispute?

Ans. Before S. 2-A inserted by Act 35 of 1965- No

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To be industrial dispute-

 Affect interests of workmen as a class

 (Newspapers Ltd. Vs Industrial Tribunal UP)
 Dispute taken up by Trade Union & Demand by workmen for redress
 (Indian Oxygen Ltd. Vs Workmen)
 Support by substantial number of employees
 (CP Transport Service Vs R Gopal Patwardhan)

After S. 2-A inserted - Yes

 If comply with requirements of 2-A

Q. Is dispute between dismissed employee and his employer- Industrial Dispute?

Ans. After S. 2-A inserted – Yes, is comply with 2-A

(Chemical & Fibres of India Ltd. Vs DB Bhair)

Q. When Individual Dispute become Industrial Dispute?

Ans.

 Sponsored by Trade Union

 If not Trade Union- by Majority
 Comply with S. 2-A

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OBJECTS OF INDUSTRIAL DISPUTES ACT

Supreme Court laid down objects in-

Workmen of Dimakuchi Tea Estate Vs Management of Dimakuchi Tea Estate

Objects-

o Promotion of measures for securing

 Amity and good relation between employer and workmen
o Investigation and Settlement of Industrial Disputes between-
 Employers and Workmen
 Employers and Employers
 Workmen and Workmen
 With a right of representation by
 Registered Trade Union, Federation of Trade Unions
 Association of Employers, Federation of Association of Employers
o Prevention of illegal strikes and lockouts
o Relief to workmen in the matter of-
 Layoff, retrenchment and closure of undertaking
o Collective Bargaining

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MAIN FEATURES OF INDUSTRIAL DISPUTES

ACT

 Any industrial dispute may be referred to Industrial Tribunal by-

o Agreement of parties to dispute
o State Government ( if it deems expedient to do so)
 Award
o Binding on both
o Enforced by Government
 Strike, Lockout- Prohibited during pendency of-
o Conciliation and Adjudication Proceeding
o Settlement reached in course of Conciliation
o Awards of Industrial Tribunal- Declared binding by Government
 In Public Interest
o Appropriate Government- Power to declare- Public Utility Service
o Max 6 months
o Transport (other than railway), coal, cotton textile, food stuff, iron and steel industry
 Layoff/ Retrenchment
o Compensation by employer
 Compensation –
o Transfer, Closure
 Authorities provided for settlement of Industrial Disputes-
o Works Committee, Conciliation Officer, Board of Conciliation, Courts of Inquiry
o Labour Court, Industrial Tribunal, National Tribunal

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INDUSTRY

DEFINITION

Industrial Disputes Act, 1947

Section 2 (j)

o Any – Business, trade, undertaking, manufacture or calling or employers

o Includes-
 Any- Calling, service, employment, handicraft or individual occupation
or avocation of workmen

To meet the changing requirements of modern Socio-Economic thought-

o Supreme Court expand the concept of Industry through Judicial Interpretation

o Bangalore Water Supply & Sewarage Board Vs R. Rajappa

Triple Test:-

 Systematic activity
 With co-operation between employers and employees
 For production, supply or distribution of- Goods and Services

Amendment in 1982

o (Not yet enforceable)

o (Not binding)
o Provided many exceptions-
 Agricultural operation
 Hospital or Dispensary
 Education, Scientific, Research, Training Institute
 Khadi or Village industry
 Activity of Government- Sovereign functions
 Domestic Service
 Etc.

But as the amendment is not binding so through Triple Test many of these were treated as “Industry” in
various judgements-

Hospital or Dispensary (Bombay Vs Hospital Mazdoor Sabha)

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CONTROLLED INDUSTRY

Section 2 (ee)

o Any industry
o Control of which-
 By Union
o Central act declare expedient in public interest

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INDUSTRIAL ESTABLISHMENT/ UNDERTAKING

Section 2 (ka)

o Establishment or Undertaking
o In which any industry is carried on
o Provided, where several activities & only one or two are- Industry
 Unit carrying industry- Severable
 Deemed separate Industrial Estb./Undertaking
 Predominant activity not separable-From other activities
 Entire Estb./Undertaking/Unit- Deemed Industrial Estb./Undertaking

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WORKMAN

Section 2 (s)

o Any person employed in any industry (including apprentice)

o To do any work-
 Manual, unskilled, skilled
 Technical, operational
 Clerical, supervisory
o For hire or reward
o Terms of employment
 Express or Implied
o For the purpose of proceeding in relation to Industrial Dispute-
 Dismissed, Discharged, Retrenched-
 In consequence of Industrial Dispute
 In connection with Industrial Dispute
 His Dismissal, Discharge, Retrenchment-
 Led to the Industrial Dispute

o Not include-
 Person under Army Act, Air Force act, Navy Act
 Police, Prison
 Managerial, Administrative capacity
 Supervisory capacity- wage: Rs. 1,600 per mensem
 Or exercise managerial functions

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EMPLOYER

Section 2 (g)

o Authority prescribed-
 Where industry carried on by or under
 Authority of Government/ State Department
 Where no authority prescribed
 Head of Department
o Chief Executive Officer (CEO) of Authority
 Industry carried on by or on behalf of
 Local authority

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APPROPRIATE GOVERNMENT

Section 2 (a)

o In relation to some Industrial Disputes- Appr. Govt. is Central Government

o In relation to some Industrial Disputes- Appr. Govt. is State Government

To deal with such disputes

Central Government – Appropriate Government

o Industry carried on –
 By or under – Authority of Central Government
 By railway company
 Controlled Industry- specified in this behalf by Central Government
o Dock labour board, LIC, ONGC, AAI, RRBs, Banking, Insurance, Air Transport, Mine,
Oilfield
Major Ports, NHB, Cantonment Board, etc.

State Government- Appropriate Government

o In all other cases

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PUBLIC UTILITY SERVICE

Section 2 (n)

o Railway, air transport, major port/dock,

o Postal, telephone, telegraph
o Power supply, light, water to public
o Section of industrial establishment-
o On which Safety of establishment or workmen depend
o Public conservancy system or sanitation
o Etc.

Industry specified in Ist Schedule-

o Appropriate Government satisfied- in public interest/ emergency

o Declare for- Max 6 months, may be extended
o Prove- Necessity to declare

Ist Schedule-

o Transport- land, water

o Banking, mints
o Hospital, dispensary, food stuff, cotton textile
o Cement, iron-steel
o Coal, mining, fuel gases, oil
o Nuclear fuel, nuclear components
o Defence Establishment, Airport Authority of India
o Etc.

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WAGES

Section 2 (rr)

o All remuneration
o Paid to workmen
o In respect of is Employment/Work done by him-
 To his employment
 According to terms and conditions of his employment

Includes-

 All allowances-
 Including Dearness Allowance, house accommodation etc.
 Travelling concession
 Commission-
 On promotion of sales/business/both

Excludes-

 Bonus
 Contribution by employer under law (pension/ PF/ for benefit of workmen)
 Gratuity on termination of service

o Fixed on various considerations

o And in accordance with laws of Minimum Wages Act.

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AWARD

Section 2 (b)

o Decision
 Interim or Final
 Of Industrial Dispute or related question
o By
 Labour court or Industrial Tribunal or National Tribunal
o Includes Arbitration Award U/S. 10 A

Enforceable on – Date specified or on expiry of 30 days from publication date

Appropriate Government – Empowered to reject

o Ground-
 Too much financial burden
 Thereby national economy adversely affected

Binding On-

a. Settlement-
i. Parties to the agreement
b. Arbitration-
i. Parties to the agreement- who referred to arbitration
c. Labour court, Tribunal, National Tribunal-
i. All parties to Industrial Dispute
ii. All other parties summoned
iii. Employer, his heirs, successor, assigns (in respect of establishment related to
dispute)
iv. Workmen- in service, subsequently employed
1. Not- members of Union (not party to reference)

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CONTINUOUS SERVICE

o Uninterrupted service
o Interrupted by –
 Sickness, accident, authorized leave
 Legal strike, Not his fault- lockout, cessation of work

o One year continuous service

o Not less than 240 days in last 12 months

Days include-

 Layoff
 Absent- temporary disablement- by accident- arise out of or in course of
employment
 Sundays, other paid holidays- during which workman was in employment
 Maternity leave for females

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RETRENCHMENT

DEFINITION

Industrial Disputes Act, 1947

Section 2 (oo)

o Termination of service – of a workman

o By the employer
o For any reason whatsoever (surplus labour)
 Otherwise than as a punishment inflicted
 By way of disciplinary action

o But not include-

 Voluntary retirement
 Retirement on reaching superannuation age
 Termination- Ground-
o Continued ill health
o Non-renewal of contract

ESSENTIALS-

o Industry- Continuing, Not Closure

o Termination of service
o Ground- Surplus labour/staff
o Service must have been capable of being continued
o For any proper reason- Not punishment and exceptions
 Proper- rational, economy, labour saving machine installed
 Other industrial or trade reasons

CONDITIONS PRECEDENT

Section 25 (f)

o One month notice

o Notice-

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 In writing
 Reasons
 Period must expire
 Or pay wages for period of notice
o Paid retrenchment compensation
 15 days average pay
o Continuous service
 Not less than 1 year
o If conditions not complied
 Retrenchment- void-ab-initio

PROCEDURE

Section 25-G

o S.25-G incorporates –Rule- “ last come first go” OR “ first come last go”
o S.25-G applicable only if all conditions satisfied
 Person- Workman U/S. 2(s)
 Citizen of India
 “Industrial Establishment”- Industry U/S. 2 (j)
 Belong to particular category
 No agreement- contrary to “last come first go”

RULE

“LAST COME FIRST GO”

o Statutorily incorporated U/S 25-G

o Where other things are being equal
o Intended- safeguard against discrimination
o Intended- secure equitable treatment
o Applied category wise
o If rule violated- retrenchment declared invalid

DEPARTURE/DEVIATION FROM RULE

o Extra-ordinary situations
o Interest of business
o Special ground

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 Like- inefficiency, unreliability, irregularity

o Retained- special qualification- in interest of business
o Sufficient reasons, sound reasons
o Valid reasons, justifiable reasons
o Bona fide

OTHERWISE- INFERENCE

o Improper motive-
 Ulterior consideration
 Mala fide
 Unfair labour practice
 Victimization
 J.K. Iron & Steel Vs. Workmen
o Burden to substantiate-
 Special ground for departure
o Speaking order-
 Absence of mala fide- Not sufficient

o Burden to prove-
 On management/employer
o Employer must record the reasons

o Effect-
 Retrenchment violating ‘LCFG’ rule – declared invalid
 Unless supported by valid, justifiable reasons
 Tribunal may-
 Reinstate
 Pay renumeration

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LAY OFF

Section 2 (kkk)

o Employer’s-
 Failure, Refusal, Inability
o To give employment to workman-
 Name on muster roll
 Not retrenched
o On account of-
 Shortage of – coal, power, raw material
 Accumulation of stocks
 Breakdown of machinery
 Natural calamity
 Any other connected reason

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STRIKE

Section 2 (q)

o Body of persons employed-

 Acting in combination
 Cessation of work
o Any number of persons (Are or have been employed)-
 Concerted refusal OR refusal under common understanding
 To continue to work OR accept employment
o Causes-
 Demand for reconsidering
 Issue of retirement, expulsion, suspension

Q. Is strike a fundamental right?

A. No

o It is a right, but not a fundamental right.

o Strike, Dharna, Procession
o (Kameshwar Singh Vs Bihar)
o (B R Singh Vs Union of India)

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LOCKOUT

Section 2 (e)

o Temporary closing of a place of employment

o Suspension of work
o Refusal to continue to employ persons employed

o Not include- Discharge

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LEGAL AND ILLEGAL

STRIKE OR LOCKOUT

GENERAL PROHIBITIONS

Not- Public Utility Services

Section 23

o Strike by workmen, Lockout by employer

o Can be declared- Without giving Notice

No strike, No lockout –

o In breach of contract
o During pendency of-
 Conciliation proceeding before Board, or 7 days after conclusion
 Proceeding before labour court, tribunal, national tribunal, or 2 months after
conclusion
 Arbitration proceeding before arbitrator, or 2 months after conclusion
o During any period-
 Operation of settlement/award- in matters covered by it

PUBLIC UTILITY SERVICES

Section 22 (1)

o No strike-
 In breach of contract
 Without giving notice to employer- within 6 weeks before striking
 Within 14 days of notice
 Before date of strike, specified in notice
 During pendency- Conciliation proceeding- before Conciliation Officer
 Or 7 days after conclusion
 Section 22 (2)
o No lockout- Similar circumstances

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 No notice necessary for –

o Strike- If Lockout in existence
o Lockout- if Strike in existence
 Employer send intimation (about strike, lockout)-
o To authority specified by Appropriate Government
o On the very day it is declared
 Workmen send notice-
o On the very day it is declared
o By such number of persons- to such persons- in such manner- Appropriate Govt.
prescribe
 Employer report to Appropriate Government or Authorized person-
o Within 5 days of receiving notice

CIRCUMSTANCES

STRIKE/LOCKOUT- ILLEGAL

 Illegal- Against provisions of Industrial Disputes Act

 Section 24
o If commenced or declared- in contravention of –S.22, 23
o Continues in contravention of order made U/S. 10(3) or 10-A(4A)

CIRCUMSTANCES

STRIKE/LOCKOUT- NOT ILLEGAL

 Not in contravention of provisions of Act

 Continuance not prohibited U/S 10(3) or 10 A(4A)
 Strike/Lockout declared in consequence of Illegal Lockout/Strike respectively

CONSEQUENCES/PENALTY

FOR ILLEGAL STRIKE/LOCKOUT

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 Illegal Strike
o Any workman- commence/continue/acts in furtherance
 Imprisonment upto 1 month/fine upto Rs. 50/ both
o Wages- not entitled for strike period
o Disciplinary action
 Illegal Lockout
o Any employer- commence/continue/acts in furtherance
 Imprisonment upto 1 month/fine upto Rs.1000/ both
 Illegal Strike/Lockout
o S. 27- Any person- instigate/ incite/ acts in furtherance
 Imprisonment upto 6 months/ fine upto Rs. 1000/ both
o S. 28- Finance any illegal strike/lockout
 Imprisonment upto 6 months/fine upto Rs. 1000/ both

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CLOSURE

Section 2 (cc)

o Permanent
o Closing Down of-
 Place of employment
 Part

Closure Lockout

 Close place Close place

 Forever Not forever
 Close all business No
 Final, Irrevocable No

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UNFAIR LABOUR PRACTICE

Section 2. (ra)

o Any practice specified in 5th Schedule

o Category I- 16 practices- by Employer or their Trade Unions
o Category II- 8 practices- by Workmen or their Trade Unions
o S. 25- No employer/workmen shall commit
o S. 25-U – If commit- 6 months imprisonment/Rupees 1000 fine/Both

Category I-

o To interfere with, refrain from or coerce workmen –

 In exercise of their right to- organize, form, join or assist a Trade Union
 Or to engage in concerted activities for purpose of collective bargaining
o To dominate, interfere with or contribute-
 Support- Financial or otherwise, to any Trade Union
o To establish employer supported Trade Unions of Workmen
o To encourage or discourage membership in any Trade Union-
 By discrimination against any workman
o To discharge or dismiss workmen-
 By way or victimization
 Falsely implicating a workman in a criminal case on false or concocted evidence
 On untrue or trumped-up allegations of absence without leave
 For misconduct of minor or technical character
o To abolish work of regular nature being done by workmen
 To give such work to contractors as a measure to break the strike
o To transfer a workman mala fide from one place to another
 Under the guise of following Management policy
o To insist workmen on legal strike to sign a good conduct bond
 As a pre-condition to allow them to resume work
o To show favouritism or partiality to one set of workers regardless of merit
o To employ workmen as badlis, casuals or temporaries
 And to continue them as such for years
 Objective- Deprive them of status and privileges of permanent workmen
o To discharge or discriminate – for filing charges or testifying against employer
o To recruit workmen- During a legal strike
o Failure to implement- award, settlement, agreement
o Indulge in acts of violence or force
o Refuse to Bargain Collectively – In good faith- with recognized Trade Unions

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o Proposing or continuing a lockout- Deemed to be illegal

Category II-

o To advice or actively support or instigate

 Strike- Deemed to be illegal
o To coerce workmen-
 In the exercise of their right to self organization
 Join a trade union
 Refrain from joining any trade union
o To indulge in acts of violence or force
o For a recognized union- to refuse to Bargain Collectively in good faith with employer
o To indulge in coercive activities against certification of a Bargaining Representative
o To stage, encourage or instigate-
 Such forms of coercive actions as
 Willful “go slow” squatting on the work premises after working hours
 “Gherao” of any members of the Management or other staff
o To stage demonstrations at the residences of employers or management
o Incite or indulge in willful damage to employer’s property connected with industry
o Threats of intimidation against any workman-
 with a view to prevent him from attending work

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COLLECTIVE BARGAINING

 Collective- Group action through representation

 Bargaining- Negotiating ( Proposals, Counter- Proposals, Offers, Counter-Offers)

Collective Bargaining

o Collective Negotiations
o Between Employer and Employee (through Trade Unions)
o Relating to their work situations (pay, benefits, hours, leave, health and safety policies
etc.)

Success depends on-

o Mutual Understanding
o Give and Take Principle

No 3rd party

Weapons of strike and lockout

 Stimulate the process of collective bargaining

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AUTHORITIES / MACHINERIES
FOR SETTLEMENT OF INDUSTRIAL DISPUTES

Conciliation Machinery-

 Works Committee
 Conciliation Officer
 Conciliation Board

Adjudication Machinery-

o Court of Inquiry
o Labour Court
o Industrial Tribunal
o National Industrial Tribunal

Arbitration Machinery

Grievance Settlement Authority

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GRIEVANCE SETTLEMENT AUTHORITY

 Section 9 (c)
o For resolution of disputes – arising out of individual grievances
o Every Industrial Establishment- having 20 or more workmen
 There should be- One or more GSA
o Equal number of members (employer and employee)
 Total number not more than 6
o Chairperson-
 Alternatively –rotation basis- every year- from workmen and employer
o Complete proceeding in – 30 days
o Appeal-
 To employer
 Employer dispose off- within one month
 Send copy of decision to the workman

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WORKS COMMITTEE

MAIN OBJECT

 Investigation and settlement of Industrial Dispute

 Purpose- Smooth away frictions-that might arise in day to day work

METHOD

o Conciliation/ Mediation
o Voluntary negotiation
o Arbitration

NOT INCLUDE

o Decision on important matters

o As alteration in service conditions by nationalization

FINDINGS

o Advisory or Recommendatory
 Not mandatory or binding on employer
 Final power to decide to implement

Kempand Co. Vs Its Workmen

o Although decision not mandatory

o But they do have great weight

CONSTITUTION

o Moment order is made for establishment of an industry U/S. 3 (1)

o Employer bound to establish Works Committee
o Conditions-
 Establishment- Industry U/S. 2 (j)
 Workmen – Workmen U/S. 2 (s)
 100 or more Workmen
 Order issued by Appropriate Government
o Equal representatives ( from employer and workmen)

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CONCILIATION

CONCILIATION

o Intervention of mediator
o With view to bring parties to agreement

CONCILIATION OFFICER

Section 4

o Appropriate Government empowered to appoint as many persons as Conci. Offi.

 As it thinks fit
o To mediate and promote settlement of Industrial Dispute

o Notification in Official Gazette

o For specified area, particular industry, industry in particular area

Position of Conciliation Officer-

o Like independent agency

o Making available Government facilities in settlement
o Administrative duty, Not Judicial
 So no formalities of Judicial Process

WORKING

o When notice of Strike/Lockout received- then without delay

o Investigate the dispute
o Do all things- thinks fit-
 To induce parties to arrive at settlement
o Send report of result to Appropriate Government
 To decide further course of action
 If no settlement- Govt. refer to Board, Court, Tribunal

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As advisor, friend, assist to arrive at settlement

Q. Is conciliation – adjudicatin?

Ans. No

CONCILIATION BOARD

Section 5

o Appropriate Government constitute

o For settlement of Industrial Dispute

o Notification in Official Gazette

 Chairman, 2-4 members

 Chairman- Independent person
 Members- Equal number from parties

WORKING

Section 13

o Only when Appropriate Government refer matter to it

o Complete function and send report within 60 days
 2 months extension if both parties consent
o Report in writing, signed by all members
o Appropriate Government publish report within 30 days of receipt

POWERS

o Enforce attendance, examine on oath

o Compel production of documents and material objects

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o Issue commission for witness examination

o Other matters as may be prescribed

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COURT OF INQUIRY

Section 6

o Provides for establishment of Court of Inquiry

o For inquiring into any matter-
 Appearing to be connected with industrial dispute
 Or relevant to it

 Based on similar provision in English Industrial Courts Act

CONSTITUTION

o As occasion arises
o Appropriate Government- be notification – in Official Gazette
o Appoint one or more independent person
 If more than one then- One will be chairman

WORKING

 Complete proceeding in 6 months

 Submit report
 Appropriate Government publish report within 30 days

SCOPE

o Reference by Appropriate Government

o Any matter connected with Industrial Dispute
 Or relevant to it

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LABOUR COURT

Section 7

MEANING

o Courts for adjudication of Industrial Disputes

o Relating to any matter specified in IInd Schedule
o And for performing – other functions- prescribed for them in Act

o Constituted by Appropriate Government- by Notification- In Official Gazette

CONSTITUTION

o S. 7 (1) empowers Govt.- to establish one or more Labour Court in a state

o Central Govt. can establish in any state-
 For matters – for which it is Appropriate Government
o Presiding Officer-
 Only one person- appointed by Govt.
 Qualifications S. 7 (3)
 Is or has been Judge of High Court
 District Judge / Additional District Judge, for more than 3 years
 Judicial Officer , for more than 7 years
 Labour Court Presiding Officer under State Act , for more than 5 years
 Deputy Labour Commissioner (Central)/ Joint Commissioner (State)
o For more than 7 years
o Degree of law
o Must resign
 Grade III Indian Legal Service Officer, for more than 3 years

FUNCTIONS

o Adjudicate Industrial Disputes- relating to matters specified in IInd Schedule

o IInd Schedule- Standing Orders (Terms and Conditions or Rules for employment)-
 Order passed by employer under standing orders
 Application and interpretation of standing orders

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 Discharge, dismissal, reinstate, grant of relief

 Customary concession/privilege- withdrawal
 Strike/Lockout- illegality or otherwise
 All matters other than specified in 3rd Schedule
o Other functions assigned under Industrial Disputes Act
o Any matter appearing to be connected to Industrial Dispute
 Or relevant to it

POWERS AND PROCEDURE

o While trying Industrial Dispute-

 Same as Civil Court
 Code of Civil Procedure
 Compelling attendance, examine on oath
 Compelling production of documents, material objects
 Issue commission- for examination of witness
 Matters- as may be prescribed

 In addition, Labour Court has-

 Right to appoint 2 assessors
o To aid or advise in proceeding
o They must be experts in concerned matter
 Right to award-
o Incidental cost
o Reinstatement, Other relief

 While trying Offence-

o Same as Court of Ist Class Magistrate
o Follow as nearly as possible-
 Summary procedure as provided under Cr.P.C.

 While trying Rights given under Special Acts-

o Special acts confer rights to litigants
o Labour Court can apply own procedure

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WITHDRAWAL OF CASE

o Parties resolved matter amicably

o Before final order by Labour Court
o Labour Court allow withdrawal-
 If sufficient grounds for such withdrawal

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INDUSTRIAL TRIBUNAL

Section 7-A

MEANING

o Constitution of Industrial Tribunal-

 By Appropriate Government- by Notification- in Official Gazette
o For adjudication of Industrial Disputes
 Relating to matters specified in –
 IInd Schedule
 IIIrd Shedule
o Or for performing such other functions
 Assigned to them under Industrial Disputes Act

CONSTITUTION

o S. 7-A empowers Govt. – to constitute – one or more Industrial Tribunal

o Presiding Officer- Only one person
 Qualifications – S. 7-A (3)-
 Is or has been Judge of High Court
 District Judge/ Additional District Judge, for more than 3 years
 Deputy Chief Labour Commissioner (Central)/Joint Comm. (State), 7
years
 Grade III Indian Legal Service Officer, 3 years

FUNCTIONS AND DUTIES

o Quasi-Judicial Proceedings
o Different from ordinary court

Q. What matters can be referred?

Ans. Industrial Disputes relating to matters specified in 2nd and 3rd Schedule (like Gratuity, Promotion)

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JURISDICTION (Authority to decide)

o Limited by terms of reference

 Specific Jurisdiction – for Specified Industrial Dispute
 Circumscribed by terms of order of reference
o Confined to persons who are ‘Workmen’ U/S. 2 (s)
 Not employees of independent contractor

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NATIONAL INDUSTRIAL TRIBUNAL

Section 7 B

o S. 7 B provides for constitution of National Tribunal

o If in opinion of Government-
 Industrial Dispute involve question of National Importance
o Industrial Dispute is of such nature that-
 Industrial Establishments in more than one state
 Likely to be interested in or affected by – Such Dispute

S. 10 (6), S. 10 (7)

o Bars-
 Exercise of concurrent power of State Govt.
 So when reference to National Tribunal-
 Labour Court, Industrial Tribunal barred from entertaining
 Or which are before them- Deem quashed

CONSTITUTION

Section 7 B(2)

o Presiding Officer-
 Only one person
 Appointed by Central Government
 Is or has been Judge of High Court
o If the Govt. thinks fit- 2 persons – as Assessors- to advice in proceedings

Section 15

o When referred any Dispute

o National Tribunal should-
 Hold proceedings expeditiously
 Submit award to Appropriate Government
 As soon as possible

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JURISDICTION

o No specific mention
o Any matter-
 Industrial Dispute- National Importance ( in opinion of Central Government)
 Industrial Dispute such nature that-
 Industrial Establishment in more than one state
 Interested in or Affected by the Dispute

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PAYMENT OF WAGES ACT, 1936

RULES FOR PAYMENT OF WAGES

Section 3 to Section 6

SECTION 3

Responsibility for Payment of Wages

1.Every employer is responsible for-

 Payment of all wages

 To all employees he employs
o In every other case-
 Employer names person/nominated
 Person responsible to employer
 Then such person responsible for payment

2.Not withstanding anything in subsection 1

 Employer is responsible
 If contractor, designated person fail to make payment

SECTION 4

Fixation of Wage Periods

1.Person responsible U/S. 3

 Must fix periods- called Wage Periods

2.Wage Periods- Not exceed 1 month

SECTION 5

Time of Wage Payment

1.

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a) If employed person less than 1000

 Then before expiry of 7th day from wage period lasts

b) Others

 Before expiry of 10th day from wage period lasts

2.If terminated

 Before expiry of 2nd working day from termination date

3.Appropriate Government can exempt person responsible

4.Employer / Person responsible- Ensure- Wages are Paid- on Working Day

SECTION 6

Payment of Wages in Currency Notes or Currency Coins

o Payment should be in currency notes or currency coins

 Not in kind
o After taking written authorization of employee
 Payment through Cheque or Demand Draft to Bank Account

DEDUCTIONS FROM WAGES

 Deductions means every payment made by Employee to Employer

 Only in accordance with law

Not Deductions-

o Increment stop
o Promotion stop
o Lack of overall performance- Inducement stop
o Demotion
o Suspension

Acceptable Deductions-

o Fines
 Endorsement of State Govt./ Recommended Authority

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 Observe guidelines
o For absence from duty
 Present on work spot- But not working without appropriate explanation
o For damages and loss
 Should be given chance to clarify- cause and explanation of harm
 Employer should record in register
 Directly attributable to his neglect, default
o For services
 House accommodation, amenities, etc.
o For recovery of advances
 Advance payment, Overpayment
o For recovery of loans granted
o For payment to co-operative societies and insurance schemes, PF etc.
o For payment required to be made on Court order/ Competent authority order

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WORKMEN COMPENSATION ACT,1923

Employer’s Liability to Pay

a. Injury- by accident during employment

b. Disease- in occupation

5 Prerequisites-

Personal injury- sustained by employee

o Personal injury-
 Physical, psychological (intellect), reputation
 Not personal property
 Example- vehicle accidents at employment, libel, slander
o Indian News Chronicle Vs Mrs. Lazarus
 Heating chamber to cooling chamber- Pneumonia

Such Personal Injury- as a result of Accident

o Accident means unexpected event that results in harm to some person

o Personal Injury –result of accident
 While executing his indispensable duty

Such accident- arisen ‘out of’ or ‘in course of’ employment

o Arising out of employment

 Accident resulting out of work
 If not been doing that work, then no accident
 Ram Prasad & Ors. Vs Rajasthan
 Natural Lighting- when in employment, if not there- no accident
o In course of employment
 Working hours
 Place if employer
 Working for benefit of employer

Injury resulted in-

o Permanent or partial disablement

o For period- more than 3 days
o Reduce earning capacity

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If accident- resulted in death

o Heirs get compensation

o If out of or in course of employment

EXCEPTIONS

o Disablement not more than 3 days

o Not result in death
o Drunk
o Employee intentionally disobeyed safety rules
o Employee intentionally disregarded/removed safety grounds for their safety

OCCUPATIONAL DISEASE

 Disease peculiar to employment/ arise out of employment

 Schedule 3- Three parts- A, B,C
 Deemed to be injury by accident

A- In the employment
B- In the employment for not less than 6 months
C- In the employment under more than one employer
For period specified by Central Government

A- Infectious disease, parasitic disease, lead

B- Arsenic, mercury, phosphorus, extreme cold climate, extreme hot climate
C- Bronchopulmonary disease- by cotton, hard metals

AMOUNT OF COMPENSATION

Death

o 50% of monthly salary x appropriate factor ( in Schedule Y)

o Rs. 80,000
o Whichever is more

Permanent total disablement

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o 60% of monthly salary x appropriate factor

o Rs. 90,000
o Whichever is more

Permanent partial disablement

 Percentage of – loss of earning capacity

Temporary disablement

 Half-monthly payments
 Equal to 25% of compensation

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MATERNITY BENEFIT ACT, 1961

 Full Paid Leave

 Motive- Help her in taking care of her child
 Every establishment-
o 10 or more employees
o Factory, plantation, mine, Govt. org, legislative org, shops and other entities

ELIGIBILITY

o Minimum 80 days work in past 12 months

o Amount- based on daily wages

AMENDMENTS- Act, 2017

o 2 surviving children- increase from 12 weeks to 26 weeks leave

o More than 2 surviving children- 12 weeks leave
o Commissioning mother & adopting mother – 12 weeks
o Organizations will facilitate Work From Home condition
o More than 50 employees- Creche is mandatory

DUTY OF EMPLOYER

o Employer cannot terminate- woman on maternity leave

o Employer cannot change terms and conditions of leave
o Duty to inform woman when she joins

PENALTY ON EMPLOYER- for non compliance

o If fails to pay / discharge/dismiss

 Imprisonment from 3 months to 1 year, fine- Rs.2000 to Rs.5000
 Provided- court for sufficient reasons- lesser term, fine in lieu of imprisonment
o Employer contravenes provisions
 If no other penalty provided for such contravention
 Imprisonment upto 1 year/ fine –Rs. 5000/ both

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EMPLOYEES’ PROVIDENT FUND

EPF

Employees’ Provident Fund & Miscellaneous Provisions Act, 1952

 Retirement savings scheme

 Available to all salaried employees
 Backed by Government
 Fixed interest is paid

Employees’ Provident Fund Organization (EPFO)

o Statutory body, developed by Govt. Of India, under Ministry of Labour and Employment
o Administers the EPF
o Administer mandatory contribution towards PF by both Employer and Employee

REGISTRATION

o If in establishment, number of employees-

 Less than 20- Voluntary to register
 More than 20- Compulsory to register
o Once registered-
 If number of employees drop below 20
 Still covered

3 COMPONENTS

o EPF
 Employee Provident Fund, 1952
 Retirement savings
o EPS
 Employee Pension Scheme, 1995
 Pension- Post retirement

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o EDLI
 Employee Deposit Linked Insurance Scheme, 1976
 On sudden death of Employee
 Life Insurance fund to family

CONTRIBUTION

o Employee-
 12% of (Basic Pay & DA) to EPF
o Employer-
 Salary upto Rs. 15000
 8.33 % to EPS
 3.67% to EPF
 Salary above Rs. 15000
 8.33% of Rs. 15000 to EPS
 Balance of 8.33% of total salary to EPF
 3.67% also to EPF
 0.5% to EDLI

WITHDRAWAL

o Retires
o Remain unemployed- for 2 months or more
o Partial withdrawal-
 Marriage, education, land, house , home loan repayment etc.

TAX BENEFIT

o Employer’s contribution – Tax Free

o Employee’s contribution- Tax deductible U/S 80C of Income Tax Act
o Employee’s- invested money, interest, withdraw after 5 years- IT Exempt

POST RETIREMENT

o Employee receives
 Full amount in EPF
 Pension from EPS (if done minimum 10 years of service)

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PREVIOUS YEARS QUESTIONS

Section A

1. Explain Lock out

2. What is the remedy if registration of Trade Union is refused?
3. What is the time for payment of wages?
4. What is the penalty for contravention of the Maternity Benefit Act, 1961 by employer?
5. Is strike a constitutional right? Briefly explain.

Section B

6. Write a short note on 'employee’s entitlement for compensation' and 'the amount of
compensation' under the Workman (Employee's) compensation Act 1923.
7. Define 'Factory and Industrial Establishment' under Payment of wages Act, 1936. Also
give the difference between both.
8. Write in brief the salient features of Indian Maternity Benefit Act. 1961.

Section C

9. Discuss the employer's liability to pay compensation under the Workman’s

Compensation Act, 1923.
10. Define 'Industries' under the Industrial Dispute Act, 1947.What are its essential
attributes? Whether professions and municipal corporations comes under the ambit of
the term 'Industry'? Discuss.
11. State the provisions of the Payment of Wages Act 1936 relating to fixation of wages and
deductions from wages.
12. Give a brief account of evolution of industrial legislation in India.
13. Write short note on any two of the following
(i) Closure
(ii) Employees Provident Fund
(iii) Collective Bargaining
(iv) Lay-off and Lockout

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Section A

1. Workman
2. Appropriate Government
3. Give precedent condition of retrenchment.
4. Whether educational institution is an Industry?
5. Court of Inquiry Section 6 Or Work Committee

Section B

6. "Grievance Redressal Committee" Discuss.

7. When a strike becomes Illegal?
8. State the difference between lay off and retrenchment.

Section C

9. What is the scope and object of the Industrial Dispute Act 1947?
10. What do you mean by the term Lock Out? Is it mandatory to serve a notice before declaring lock
out? If so then under which circumstances this can be waived? Discuss the effects of illegal
lockouts.
11. What is the procedure for registration of a Trade Union? How many members are required for
registration of a trade union?
12. Define and discuss in detail "Industrial Dispute" under the Industrial Dispute Act 1947.
13. "Section 11-A of the Industrial Dispute Act 1947 discretionary power to labour court, Industrial
Tribunal and National Tribunal to give appropriate relief to discharged or dismissed workman"
Discuss.

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Section A

1. Workman
2. Work Committee
3. Appropriate Government
4. Award
5. Collective Bargaining.

Section B

6. State the liabilities of a registered Trade Union.

7. When a strike becomes illegal?
8. When can an individual's dispute becomes industrial dispute?

Section C

9. Discuss the procedure for the registration of a Trade Union. How many members are required
for the registration of a Trade Union?
10. Who are disqualified to be office bearer of a registered Trade Union? Can a minor be a member
of a registered Trade Union?
11. Lockout is a weapon in the hands of employer and strike in the hand of workers. Discuss under
Industrial Dispute Act 1947.
12. Define and discuss 'Industrial Dispute' under Industrial Dispute Act 1947.
13. Discuss procedures, powers and functions of National Industrial Tribunal under Industrial
Dispute Act 1947.

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Section A

1. Collective Bargaining.
2. Trade Dispute
3. Award
4. Closure
5. Lay off

Section B

6. Functions of a Conciliation Officer.

7. Discuss the rights of a registered Trade Union.
8. Discuss the procedure followed by a Labour Court.

Section C

9. Discuss the main objects of Industrial Dispute Act 1947.

10. Define and discuss 'Industry' under Industrial Dispute Act 1947.
11. Define Retrenchment. Discuss the procedure for the retrenchment of a workman under
Industrial Dispute Act 1947.
12. Define Trade Union. Discuss the procedure of the registration of a Trade Union.
13. Discuss the immunities from civil and criminal liabilities available to the office bearers of a Trade
Union.

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