LABOUR

LAW
By
UMESH JATAV
Email: jatavumesh7@gmail.com

ARORA GRAPHICS PUBLICATION

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 ARORA GRAPHICS PUBLICATION
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Umesh Jatav (Author)
First Edition –2024
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 PREFACE TO THE FIRST EDITION
The knowledge of Labour law is essential for law fraternity. The relevance of
the dignity of human labour and the need for protecting and safeguarding the
interest of labour as human beings has been enshrined in Chapter-III (Articles
16, 19, 23 & 24) and Chapter IV (Articles 39, 41, 42, 43, 43A & 54) of the
Constitution of India keeping in line with Fundamental Rights and Directive
Principles of State Policy. The Labour Laws were also influenced by
important human rights and the conventions and standards that have
emerged from the United Nations.
The improvement of labour welfare and increasing productivity with
reasonable level of social security is one of the prime objectives concerning
social and economic policy of the Government. Economic development means
not only creation of jobs but also working conditions in which one can work
in freedom, safety and dignity. To improving life and dignity of labour force
of country by protecting & safeguarding the interest of workers, promotion of
welfare and providing social security to the labour force both in Organized
and Unorganized Sectors by enactment and implementation of various
Labour Laws, which regulate the terms and conditions of service and
employment of workers.
The present book is placed with selected statutory provisions, theory
alongwith relevant case laws. This book will be very useful for law students.

ACKNOWLEDGEMENT
I would like to thank God with reverence and sincerity for heavenly richest
blessings and abundant grace, which strengthened me in each and every step
of this endeavour. I express my deep sense of gratitude and indebtedness to
my teachers for their guidance, sustained presence, constant availability and
continuous inspiration right from the planning phase till the completion of
the book. The encouraging words of Dr. Sanjay Kumar Agarwal, Assistant
Professor, Department of Political Science and Public Administration, Central
University of Jharkhand, Ranchi and Former Assistant Professor, Maharaja
Agrasen College, University of Delhi have been the pillars of my strength. He
has always been an excellent mentor and role model. I would not be where I
am today without his guidance, and constant support. I express my deep
sense of reverence to the almighty and broad sense of gratitude to my parents
for their blessings and support which gave me the required moral strength for
the successful and completion of this book.
Umesh Jatav

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 INTRODUCTION TO LABOUR LAW
Labour law also known as employment law is the body of laws,
administrative rulings, and precedents which address the legal rights of, and
restrictions on, working people and their organizations. As such, it mediates
many aspects of the relationship between trade unions, employers and
employees. In other words, Labour law defines the rights and obligations as
workers, union members and employers in the workplace

The law relating to labour and employment in India is primarily known

under the broad category of “Industrial Law”. Industrialization is considered
to be one of the key engines to support the economic growth of any country.
The commence of industry and its growth is not a venture of the employer
alone; yet it involves the hard work and tough grind of each and every
stakeholder of the industry including the labourers, supervisors, managers
and entrepreneurs. A plethora of labour laws have been established to ensure
elevated health, safety, and welfare of workers; to protect workers against
oppressive terms as individual worker is economically weak and has little
bargaining power; to encourage and facilitate the workers in the organization;
to deal with industrial disputes; to enforce social insurance and labour
welfare schemes and alike.

The labour laws derive their origin, authority and strength from the
provisions of the Constitution of India. The relevance of the dignity of human
labour and the need for protecting and safeguarding the interest of labour as
human beings has been enshrined in Chapter-III (Articles 16, 19, 23 & 24) and
Chapter IV (Articles 39, 41, 42, 43, 43A & 54) of the Constitution of India
keeping in line with Fundamental Rights and Directive Principles of State
Policy. Labour law reforms are an ongoing and continuous process and the
Government has been introducing new laws and amending the existing ones
in response to the emerging needs of the workers in a constantly dynamic
economic environment. Labour is a subject in the Concurrent List where both
the Central & State Governments are competent to enact legislation subject to
certain matters being reserved for the Centre.

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 CONTENTS
PART – A
TRADE UNIONS

1 Introduction to Labour Law 1-11

1.1 Introduction 1
1.2 History and Development of Labour Law, Importance and its
Sociological Understanding, Philosophical Issues, Marxism
and Labour Law 4

2 Trade Union – Definition, Registration and Recognition 12-46

2.1 Introduction 12
2.2 Definitions 14
2.3 Procedures for the Registration of Trade Unions 15
2.4 Power of Registrar to Modify Trade Union Name or Facilitate
Amalgamation 27
2.5 Rights of Registered Trade Unions 30

3 Immunities – Criminal and Civil 47-58

3.1 Criminal conspiracy in trade disputes. 47
3.2 Immunity from civil suit in certain cases. 53

PART – B
INDUSTRIAL DISPUTES
4 „Industry‟ – Conceptual Analysis 59-81
4.1 Conceptual Analysis of Industry 59
4.2 Whether the following activities would fall under industry or
not 63

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5 „Industrial Dispute‟ v. „Individual Dispute‟ – Contrast 82-103
5.1 Introduction 82
5.2 Individual dispute whether industrial dispute? 86
5.3 Dispute in an “Industry” 90

6 Concept of „Workman‟ 104-121

6.1 Concept of „Workman‟ 104
6.2 Difference between – Contract for service and contract of
service 110

7 „Strike & Lock out‟ 122-151

7.1 Introduction 122
7.2 Concept of Strike 122
7.3 Concept of Lock Out 131

8 „Lay off‟ „Retrenchment‟ & „Closure‟ 152-189

8.1 Concept of Retrenchment 152
8.2 Concept of Lay-off 160
8.3 Concept of Closure 168

9 The Industrial Employment (Standing Orders) Act, 1946 190-196

10 The Essential Services Maintenance Act, 1981 197-203

References 204

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 LIST OF CASES
Rangaswami v. Registrar of Trade Unions, AIR 1962 Mad. 231 32
The Tamil Nadu Non-Gazetted Government Officers‟ Union,
Madras v. The Registrar of Trade Unions, AIR 1962 Mad. 234 35

In Re Inland Steam Navigation Workers‟ Union, AIR 1936 Cal. 59 38

The Food Corporation of India Staff Union v. Food Corporation of

India & Ors., AIR 1995 SC 1344 41

R.S. Ruikar v. Emperor, AIR 1935 Nag. 149 51

Rohtas Industries Staff Union v. State of Bihar, AIR 1963 Pat. 170 55

Bangalore Water Supply & Sewerage Board v. A. Rajappa, AIR

1978 SC 548 71

State of U.P. v. Jai Bir Singh, (2005) 5 SCC 1 77

Arihant Siddhi Co.Op. Hg. Soc. Ltd. V. Pushpa Vishnu More,

Bombay High Court, Writ Petition No. 787 OF 2007, Order dated
22-06-2018 79

Workmen of Dimakuchi Tea Estate v. Dimakuchi Tea Estate, AIR

1958 SC 353 : 1958 SCR 1156 94

Municipal Corporation of Delhi v. Female Workers (Muster Roll),

AIR 2000 SC 1274 97

J.H. Jadhav v. Forbes Gokak Ltd., (2005) 3 SCC 202 100

Dharangadhara Chemical Works Ltd. v. State of Saurashtra, AIR

1957 SC 264 : 1957 SCR 152 114

A. Sundarambal v. Government of Goa, Daman & Diu, AIR 1988

SC 1700 118

H.R. Adyanthaya v. Sandoz (India) Ltd., (1994) 5 SCC 737 120

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Management of Chandramalai Estate v. Its Workmen, AIR 1960 SC
902 141

Syndicate Bank v. K. Umesh Nayak, (1994) 5 SCC 572 144

Essorpe Mills Ltd. v. Presiding Officer, Labour Court, (2008) 7 SCC

594 146

T.K. Rangarajan v. Government of Tamil Nadu & Others, (2003) 6

SCC 581 148

Punjab Land Development and Reclamation Corporation Ltd. v.

Presiding Officer, Labour Court, (1990) 3 SCC 682 171

The Workmen v. Firestone Tyre & Rubber Co., (1976) 3 SCC 819 174

U.P. State Brassware Corpn. Ltd. v. Uday Narain Pandey, (2006) 1

SCC 479 177

Deepali Gundu Surwase v. Kranti Junior Adhyapak & Ors., (2013)

10 SCC 324 179

Management of The Barara Cooperative Marketing cum Processing

Society Ltd. v. Workman Pratap Singh, AIR 2019 SC 228 182

Manju Saxena v. Union Of India, Supreme Court of India, Civil

Appeal Nos. 1176611767 OF 2018 185

Ram Manohar Lohia Joint Hospital v. Munna Prasad Saini, CIVIL

APPEAL NO. 5810 OF 2021 187

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 PART – A
TRADE UNIONS
 2 Trade Union – Definition, Registration
and Recognition
TOPIC

2.1 Introduction

Trade Union means “any combination, whether temporary or permanent,

formed primarily for the purpose of regulating the relations between
workmen and employers or between workmen and workmen or between
employers and employers, or for imposing restrictive conditions on the
conduct of any trade or business, and includes any federation of two or more
trade unions”.

Trade union is a voluntary organization of workers pertaining to a particular

trade, industry or a company and formed to promote and protect their
interests and welfare by collective action. They are the most suitable
organisations for balancing and improving the relations between the
employer and the employees. They are formed not only to cater to the
workers‟ demand, but also for inculcating in them the sense of discipline and
responsibility.

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.

Trade Unions Act, 1926 deals with the registration of trade unions, their
rights, their liabilities and responsibilities as well as ensures that their funds
are utilised properly. It gives legal and corporate status to the registered trade
unions. It also seeks to protect them from civil or criminal prosecution so that
they could carry on their legitimate activities for the benefit of the working

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 Trade Union – Definition, Registration and Recognition
class. The Act is applicable not only to the union of workers but also to the
association of employers. It extends to whole of India.

Features of Trade Unions Act

The Trade Unions Act 1926 has been amended from time to time and the most
important being the Trade Unions (Amendment) Act, 2001. This Act has been
enacted in order to bring more transparency and to provide greater support to
trade unionism in India. Some of the salient features of the Trade Unions
(Amendment) Act, 2001 are:-

1. No trade union of workmen shall be registered unless at least 10% or 100,

whichever is less, subject to a minimum of 7 workmen engaged or
employed in the establishment or industry with which it is connected are
the members of such trade union on the date of making of application for
registration.

2. A registered trade union of workmen shall at all times continue to have

not less than 10% or 100 of the workmen, whichever is less, subject to a
minimum of 7 persons engaged or employed in the establishment or
industry with which it is connected, as its members.

3. A provision for filing an appeal before the Industrial Tribunal/Labour

Court in case of non-registration or for restoration of registration has been
provided.

4. All office bearers of a registered trade union, except not more than one-
third of the total number of 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.

5. Minimum rate of subscription by members of the trade union is fixed at

one rupee per annum for rural workers, three rupees per annum for

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Labour Law
workers in other unorganised sectors and 12 rupees per annum in all other
cases.

6. The employees who have been retired or have been retrenched shall not be
construed as outsiders for the purpose of holding an office in the trade
union concerned.

7. For the promotion of civic and political interest of its members, unions are
authorized to set up separate political funds.

2.2 Definitions

Section 2(h) of the Trade Union Act, 1926

“Trade Union” means any combination, whether temporary or permanent,

formed primarily for the purpose of regulating the relations between
workmen and employers or between workmen and workmen, or between
employers and employers, or for imposing restrictive conditions on the
conduct of any trade or business, and includes any federation of two or more
Trade Unions.

Provided that this Act shall not affect—

(i) any agreement between partners as to their own business;

(ii) any agreement between an employer and those employed by him as to

such employment; or

(iii) any agreement in consideration of the sale of the goodwill of a business or

of instruction in any profession, trade or handicraft.

These are the components of a trade union:

 There must be a combination of employers and workers in a union;

 The business trade is necessary, and

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 Trade Union – Definition, Registration and Recognition
 The primary goal of the union must be to control employer-employee
interactions and establish limitations on how any trade or company
may be conducted.

2.3 Procedures for the Registration of Trade Unions:

The main object of the Trade Unions Act, 1926 is to provide machinery for
registration and regulation of Trade Unions. Although registration of a trade
union is not mandatory, it is advisable to register the trade unions as the
registered trade unions are entitled to get several benefits, immunities and
protection under the act.

There are specific rights and privileges conferred on the members of the
registered trade unions. The members of the registered trade unions are
entitled to get protection, immunity and certain exceptions from some civil
and criminal liabilities. A trade union can only be registered under the Trade
Unions Act, 1926. Trade union Act, 1926 not provides compulsory
registration. However, there are certain disadvantages of non-registration.
Therefore it is better to register the trade union. The following is the
procedure for registration of trade union.

Section 3. Appointment of Registrars.

1) The appropriate Government shall appoint a person to be be the Registrar

of Trade Unions for each State.

2) The appropriate Government may appoint as many Additional and

Deputy Registrars of Trade Unions as it thinks fit for the purpose of
exercising and discharging, under the superintendence and direction of
the Registrar, such powers and functions of the Registrar under this Act as
it may, by order, specify and define the local limits within which any such
Additional or Deputy Registrar shall exercise and discharge the powers
and functions so specified.

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Labour Law

Rangaswami v. Registrar of Trade Unions

AIR 1962 Mad. 231
Facts:
In the Raj Bhavan at Guindy, a number of persons are employed in various
capacities such as household staff, peons, chauffers, tailors, carpenters,
maistries, gardeners, sweepers etc. There are also gardeners and maistries
employed at the Raj Bhavan at Ootacamund. Those persons are employed for
doing domestic and other services and for the maintenance of the Governor‟s
household and to attend to the needs of the Governor, the members of his
family, staff and State guests. There are two categories of employees: (1) those
whose services are more or less of a domestic nature. They number 102. The
services of these persons are pensionable and are governed by certain rules
framed by the Governor of Madras; and (2) those who formed part of the
work charge establishment consisting of maistries and gardeners. There are 33
such persons employed at Guindy and 35 at Ootacamund. Their duties consist
in maintaining the gardens. Their service is not pensionable but they would
be entitled to gratuity at certain rates. There are separate rules prescribing the
conditions of their service framed under the proviso to Art. 309 of the
Constitution. Both the categories of the staff are appointed by and are under
the disciplinary control of the Comptroller.

With the object of securing better service conditions and to facilitate collective
bargaining with the employer, the employees formed themselves into a union
called the Madras Raj Bhavan Workers‟ Union. On 9.2.1959, seven of the
employees applied to the Registrar of Trade Unions, Madras, for registration
of their union as a trade union under the Trade Unions Act of 1926. The
applicants did not however claim before the Registrar that the employees
were engaged in either a trade or an industry; the claim was that their services
could not be held to be purely domestic services and therefore their union

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 Trade Union – Definition, Registration and Recognition
would be entitled to the benefits of registration under the Trade Unions Act.
The Registrar was of the view that before a union can be registered, the
members thereof must be connected with a trade or industry or business of an
employer, and that condition not being fulfilled in the present case, the
employees could not be held to be workmen within the meaning of the Act to
entitle them to the registration; the application for registration was rejected.

Issue:

Whether the union of employees was entitled to get itself registered under the
Trade Unions Act, of 1962?

Observation:

In State of Bombay v. Hospital Mazdood Sabha, the question arose whether

the employees in a hospital run by the State could be held to be engaged in an
undertaking of the State so as to entitle them to raise an industrial dispute.
The Supreme Court observed:

It is clear that though S. 2(j) (Industrial Disputes Act) uses words of very wide
denotation, a line would have to be drawn in a fair and just manner so as to
exclude some callings, services or undertakings. If all the words used are
given their widest meaning all callings would come within the purview of the
definition; even service rendered by a servant purely in a personal or
domestic matter or even in a casual way would fall within the definition. It is
not and cannot be suggested that in its wide sweep the word “service” is
intended to include service howsoever rendered in whatsoever capacity and
for whatsoever reason.

An undertaking which is not of a commercial nature will come within the

scope of that enactment [vide State of Bombay v. Hospital Mazdoor Sabha,
AIR 1960 SC 610]. The object behind the Industrial Disputes Act is to secure
industrial peace and speedy remedy for labour discontent or unrest. A

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Labour Law
comprehensive meaning of the term “industry” was evidently thought
necessary by the legislature in regard to that Act. But the same thing cannot
be said of the Trade Unions Act. The history and object of that enactment
show that it was intended purely to render lawful organisation of labour to
enable collective bargaining. The provisions of the Act contemplate the
admission of even outsiders as members and participation in political
activities. That would itself dictate that the benefits conferred by the act
should be enjoyed by a clearly defined category of unions. I am very doubtful
whether at all it could be said that the Industrial Disputes Act and the Trade
Unions Act form as it were a system or code of legislation so that either could
be read together as in pari materia, that is, as forming one system and
interpreting one in the light of another.

Decision:

The Court laid down the following conditions which must be present in Trade
Union:

1. It is a combination of two or more persons

2. The principal object of the combination must be regulating the

relationship between workmen inter se or between employers inter se
or between workmen and employers.

3. The personnel must be either employers or workmen

4. There must be a contract of employment and the potentiality to raise a

trade dispute. The „word‟ must be understood in the sense of a
commercial undertaking.

Therefore, government servants cannot form a Trade Union under the Trade
Union Act of 1926. Thus every trade union is an association but every
association is not a trade union.

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 Trade Union – Definition, Registration and Recognition
The employees serve the visitors and State guests of Raj Bhavan, nor the fact
that unserviceable materials and surplus produce of the gardens of the Raj
Bhavan are occasionally sold would show that there was co-operation
between the employer and the employees for the purpose of a trade or
business. The services rendered to the State guests are personal services to
them and indirectly to the employer. The occasional sales of unserviceable
articles and garden products are incidents of the ordinary administration of
Government property. They are done in accordance with certain rules framed
by the Government. They would not amount to a trade or business.

A large section of employees at Raj Bhavan are Government servants who

could not form themselves into a trade union, it cannot be stated that the
workers are employed in a trade or business carried on by the employer. The
services rendered by them are purely of a personal nature. The union of such
workers would not come within the scope of the Act so as to entitle it to
registration thereunder.

The order of the Registrar of Trade Unions rejecting the application of the
petitioners is, therefore, correct. This petition is dismissed with costs.

The Tamil Nadu Non-Gazetted Government Officers‟ Union,

Madras v. The Registrar of Trade Unions
AIR 1962 Mad. 234

Facts:

The Tamil Nadu Non-Gazetted Government Officers‟ Union is a Services

Association which has been recognised by Government, and the membership
of which is open, according to Rule 7 of its constitution, to all Non-Gazetted
Government Officers employed under the Government of Madras except the
Executive Officers of the Police and Prisons Departments and the last grade
Government servants. The objects of this Association are set forth in Rule 4 of

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