202 Labour & Industrial Law - I

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LL.B. Semester III

CORE COURSE : 202 Labour and Industrial Law I
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http://elearning.nokomis.in/uploaddocuments/Industrial%20Relations.%20&
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%201947/PPT/Chapter%2020.pdf
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CONTENTS
Module-1) The Industrial Disputes Act 1947
Module-2) The Industrial Employment (Standing Orders) Act 1946
Module-3) Trade Unions Act 1926
Module-4) Gujarat Industrial Relations Act (former BIR Act) & Collective
Bargaining
Objectives Of The Course :

Protection of labour is a constitutional mandate. A constitution inspired by the vision of
social justice is committed to the cause of upliftment of labour. Well balanced industrial
development leads to increased productivity which in turn is factor of national progress.
Labour makes significant contribution in this respect.
Is labour merely a commodity? Is it only a factor in production? There may be different
approaches towards this question. One fact is certain. Todays labour is engaged in a
battle for position of honour and status equal with management. The law and practice
relating to labour is the story of this battle. In this context, the study of labour law is not
to be confined to mastering of the rules and regulations is relating to the employment of
the work force. Its wings spread wider. It has aim on the societal impulses on, and state
reactions to the complex social-economic, human and political problems arising out of
the constant conflicts between different classes.
The student should get an insight into the mechanics of socio-legal control of labour
relations and should be aware of the history, the present norms, the emerging areas and
possible future techniques of labour jurisprudence.
In order to meet with the above objectives important Labour Laws are divided into two
courses to be studied in Sem. III and IV respectively.
Module-1) The Industrial Disputes Act, 1947 :

1.1) Scope, objects and main features of the Act, Definitions : Industry,
Industrial Dispute (Individual and Collective), Workman etc. and Judicial
Pronouncements
1.2) Authorities under the Act : Works Committee, Conciliation Officer, Boards
of conciliation, Courts of Inquiry, Labour Court, Tribunals
1.3) Procedure, powers and duties of the Authorities
1.4) Strikes and Lock-outs, Lay-off and Retrenchment
1.5) Unfair Labour Practices
Go To Contents
MODULE-1 QUESTIONS :
Discuss : Development of Labour Laws (Industrial Law) internationally as well as in
India.
Discuss : Scope, objects and main features of the ID Act 1947, Definitions : Industry,
Pronouncements.
Explain in detail the aims and objectives of the Industrial Disputes Act 1947.
(Dec-2016)
State the aims and objects of the industrial disputes act 1947. (Nov-2011)
State the concept of industry and industrial dispute with case laws under the I.D.
Act 1947. (Dec-2016)
Explain with decided cases the definition of worker, industries and industrial disputes
under ID act. (Nov-2011)
Explain the definition of "an Industry and Industrial Dispute" with reference to passed
judgment under Industrial Dispute Act 1947. (Oct-2013, Nov-2014)
Write short note : industry. (Nov-2012, Nov-2014)
Discuss : Authorities under the ID Act 1947 : Works Committee, Conciliation Officer,
Boards of conciliation, Courts of Inquiry, Labour Court, Tribunals
Explain in detail the Authorities under the I.D. Act 1947. (Dec-2016)
Discuss : Procedure, powers and duties of the Authorities under ID Act 1947
Discuss the powers and jurisdiction of the labour Court, industrial Tribunal and
national Tribunal. (Nov-2012)
Write short note : industrial tribunal. (Nov-2014)
Write explanatory notes : Jurisdiction of Industrial Tribunal. (Oct-2013)
Write short note : conciliation proceedings. (Nov-2012)

Write explanatory notes : Conciliation Proceedings. (Oct-2013)
Discuss the provisions of "Strike" and "Lockout" under Industrial Dispute Act 1947.
(Oct-2013)
Explain with Case laws the provisions against the illegal strike and Lockout Under The
BIR act 1946. (Nov-2011)
Write short note : strike and Lockout. (Nov-2012)
Explain in detail the concept of strikes and lock-outs with case laws under the I.D. Act
1947. (Dec-2016)
Discuss the provisions of the layoff and retrenchment under the industrial disputes
act 1947. (Nov-2012, Nov-2014)
Write explanatory notes : Lay-off and Retrenchment. (Oct-2013)
Discuss : Unfair Labour Practices
Write short note : Award. (Nov-2012, Oct-2013, Nov-2014)
Go To Contents
MODULE-1 ANSWERS :
Discuss : Development of Labour Law (Industrial Laws) internationally as well as in

India.
ANSWER :
http://ncib.in/pdf/ncib_pdf/Labour%20Act.pdf
INTRODUCTION :
The term labour means productive work especially physical work done for wages.
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". The prevailing social and economic conditions
have been largely influential in shaping the Indian labour legislation, which regulate
various aspects of work such as the number of hours of work, wages, social
security and facilities provided.
Scope of labour laws :
Industrial relations certification of unions, labour-management relations,

collective bargaining and unfair labour practices;
Workplace health and safety;
Employment standards, including general holidays, annual leave, working hours,
unfair dismissals, minimum wage, layoff procedures and severance pay.
Categories of labour laws :
First, collective labour law relates to the tripartite relationship between employee,
employer and union.
Second, individual labour law concerns employees' rights at work and through the
contract for work.
History :
The labour movement has been instrumental in the enacting of laws protecting
labour rights in the 19th and 20th centuries. Labour rights have been integral to
the social and economic development since the industrial revolution.
Labour law arose due to the demands of workers for better conditions, the right to
organize, and the simultaneous demands of employers to restrict the powers of
workers in many organizations and to keep labour costs low.
Employers' costs can increase due to workers organizing to win higher wages, or by
laws imposing costly requirements, such as health and safety or equal
opportunities conditions. Workers' organizations, such as trade unions, can also
transcend purely industrial disputes, and gain political power - which some
employers may oppose.
The state of labour law at any one time is therefore both the product of, and a
component of, struggles between different interests in society.
International Labour Organisation (ILO) was one of the first organisations to deal
with labour issues. The ILO was established as an agency of the League of Nations
following the Treaty of Versailles, which ended World War I. Post-war
reconstruction and the protection of labour unions occupied the attention of many
nations during and immediately after World War I.
Purpose of labour legislation :
Labour legislation that is adapted to the economic and social challenges of the
modern world of work fulfils three crucial roles :
it establishes a legal system that facilitates productive individual and collective
employment relationships, and therefore a productive economy;
by providing a framework within which employers, workers and their
representatives can interact with regard to work-related issues, it serves as an
important vehicle for achieving harmonious industrial relations based on
workplace democracy;
it provides a clear and constant reminder and guarantee of fundamental

principles and rights at work which have received broad social acceptance and
establishes the processes through which these principles and rights can be
implemented and enforced.
But experience shows that labour legislation can only fulfills these functions
effectively if it is responsive to the conditions on the labour market and the needs
of the parties involved. The most efficient way of ensuring that these conditions
and needs are taken fully into account is if those concerned are closely involved in
the formulation of the legislation through processes of social dialogue.
The involvement of stakeholders in this way is of great importance in developing a
broad basis of support for labour legislation and in facilitating its application within
and beyond the formal structured sectors of the economy.
Evolution of Labour law internationally :

Evolution of Labour law in India :
The law relating to labour and employment is also known as Industrial law in India.
The history of labour legislation in India is interwoven with the history of British
colonialism. The industrial/labour legislations enacted by the British were primarily
intended to protect the interests of the British employers.
Considerations of British political economy were naturally paramount in shaping
some of these early laws. Thus came the Factories Act. It is well known that Indian
textile goods offered stiff competition to British textiles in the export market and
hence in order to make India labour costlier the Factories Act was first introduced
in 1883 because of the pressure brought on the British parliament by the textile
magnates of Manchester and Lancashire.
Thus India received the first stipulation of eight hours of work, the abolition of child
labour, and the restriction of women in night employment, and the introduction of
overtime wages for work beyond eight hours. While the impact of this measure was
clearly welfare-ist the real motivation was undoubtedly protectionist.
The original colonial legislation underwent substantial modifications in the post-
colonial era because independent India called for a clear partnership between
labour and capital. The content of this partnership was unanimously approved in a
tripartite conference in December 1947 in which it was agreed that labour would be
given a fair wage and fair working conditions and in return capital would receive
the fullest co-operation of labour for uninterrupted production and higher
productivity as part of the strategy for national economic development and that all
concerned would observe a truce period of three years free from strikes and
lockouts.
Ultimately the Industrial Disputes Act (the Act) brought into force on 01.04.1947
repealing the Trade Disputes Act 1929 has since remained on statute book.
Constitutional provisions with regard to labour laws :
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 is a concurrent subject in the Constitution of India implying that both the
Union and the state governments are competent to legislate on labour matters and
administer the same. The bulk of important legislative acts have been enacted by
the Parliament.
These legislations can be categorized as follows :
1) Labour laws enacted by the Central Government, where the Central
Government has the sole responsibility for enforcement.
2) Labour laws enacted by Central Government and enforced both by Central
and State Governments.
3) Labour laws enacted by Central Government and enforced by the State
Governments.
4) Labour laws enacted and enforced by the various State Governments which
apply to respective States.
The Constitution of India provides detailed provisions for the rights of the citizens
and also lays down the Directive Principles of State Policy which set an aim to
which the activities of the state are to be guided. These Directive Principles
provide:
a. for securing the health and strength of employees, men and women;
b. that the tender age of children are not abused;
c. that citizens are not forced by economic necessity to enter avocations
unsuited to their age or strength;
d. just and humane conditions of work and maternity relief are provided; and
e. that the Government shall take steps, by suitable legislation or in any other
way, to secure the participation of employee in the management of
undertakings, establishments or other organisations engaged in any industry.
Go To MODULE-1 QUESTIONS
Go To Contents
Discuss : Scope, objects and main features of the ID Act 1947, Definitions : Industry,

Pronouncements.
Explain in detail the aims and objectives of the Industrial Disputes Act 1947.
(Dec-2016)
State the aims and objects of the industrial disputes act 1947. (Nov-2011)
State the concept of industry and industrial dispute with case laws under the
I.D. Act 1947. (Dec-2016)Explain with decided cases the definition of worker,
industries and industrial disputes under ID act. (Nov-2011)
Explain the definition of "an Industry and Industrial Dispute" with reference to passed
judgment under Industrial Dispute Act 1947. (Oct-2013, Nov-2014)
Write short note : industry. (Nov-2012, Nov-2014)
ANSWER :
http://www.citehr.com/228367-imp-notes-industrial-disputes.html
Intro to Industrial Disputes Act 1947 :
Industrial Disputes Act 1947 is a principle central legislation which provides for
settlement of industrial Disputes. The main objective of the Act is to secure
industrial peace by preventing and settling industrial disputes through internal
works committees or external machinery of conciliation (consisting of Conciliation
Officers, Boards of Conciliation and Courts of inquiry) or compulsory adjudication
(consisting of Labour Courts, Industrial Tribunals and National Tribunals) and
through Voluntary arbitration. This Act also protects the service conditions of
employees during pendency of Industrial disputes proceedings. It also prohibits
employers and workmen from indulging in any unfair trade practices. This Act is
applicable to all Industries in the country.
Industrial Disputes Act of 1947 as amended from time to time is a sheet
anchor of industrial adjudication in India. It has undergone 34 major
amendments.
Raison d'tre :
After the First World War, there were new incidents of industrial unrest
in India. It led to passing of the first Industrial Disputes Act in India in
1929. It empowered the Government to intervene into industrial disputes
when it deemed necessary. It contained provisions regarding strikes in public
utilities and general strikes affecting the community.
The Act extends to the whole of India and applies to every industrial establishment
carrying on any business, trade, manufacture or distribution of goods and services ,
irrespective of the number of workmen employed therein.
The Act provides for the settlement of industrial disputes through conciliation,
arbitration or adjudication. The Act empowers the appropriate government, that is
the central or State Government , to appoint conciliation officers with the duty of
mediating in and promoting the settlement of industrial disputes.
For the purpose of adjudication, there is a three tier system of labour courts,
industrial tribunals and national tribunals.
The Act prescribes pre-conditions for legality of strikes and lockouts.
It also provides for payment of compensation to workmen in cases of lay-off,
retrenchment and closure.
Objectives of the ID Act 1947 :
To ensure social justice to both employers & employees and advance
progress of industry by bringing about harmony & cordial relationship. To
settle disputes arising between the capital and labour by peaceful
methods and through machinery of conciliation, arbitration and if
necessary, by approaching the tribunals constituted under the Act .
To promote measures for securing and preserving amity and good
relations between the employer & workmen.
To prevent illegal strikes and lockouts
To provide compensation to workmen in case of lay off, retrenchment and closure.
To protect workmen against victimization by the employer & to ensure
termination of industrial disputes in a peaceful manner.
To promote collective bargaining.
Definition : Sec-2(s) : "Workman" : workman means any person (including 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 for the purposes of any proceeding under this
Act in relation to an industrial dispute, includes any such person who has been
dismissed, discharged or retrenched in connection with, or as a consequence of, that
dispute, or whose dismissal, discharge or retrenchment has led to that dispute, but
does not include any such person
(i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950
(46 of 1950), or the Navy Act, 1957 (62 of 1957); or
(ii) who is employed in the police service or as an officer or other employee of a
prison; or
(iii) who is employed mainly in a managerial or administrative capacity; or
(iv) who, being employed in a supervisory capacity, draws wages exceeding one
thousand six hundred rupees per mensem or exercises, either by the nature of
the duties attached to the office or by reason of the powers vested in him,
functions mainly of a managerial nature.
Analysis of the definition : The definition of workmen in section 2(s) falls in three
parts.
The first part determines what a workman means. It gives a statutory meaning
of workman. This part determines a workman by reference to a person
(including an apprentice) employed in an industry to do any manual, unskilled,
skilled, technical, operational, clerical or supervisory work, for the hire or
reward. Unless there is a relationship of employer and employee between
parties, the definition of; workman; will not come into play.
The second part is designed to include something more in what the term
primarily denotes. This part gives an extended connotation to the expression
workman.
The third part specifically excludes the categories of persons specified in clauses
(i) to (iv) of this subsection. Even if a person satisfies the requirements of any
of the first two parts, he shall be excluded from the definition of workman if he
falls in any of the four categories in the third part.
Industry
Normally speaking by industry it is meant production of goods, and wealth and with
the cooperation of labour and capital, but it is not so under ID Act 1947.
Definition : section 2(j) : Industry means any business, trade, undertaking,
manufacture or calling of the employees and includes any calling, service,
employment, handicraft, or industrial occupation or vocation of workmen.
The definition of industry is in two parts.
the first part says that industry means any business, trade, undertaking,
manufacture or calling of employers, and
the second part of the definition of industry says that it includes any calling,
service, employment, handicraft, or industrial occupation or avocation of
workmen.
The definition of 'industry' gives the meaning as a collective enterprise in which
employers and employees working together are associated with the industry. It is
to be mentioned here that the industry does not consist of either employers alone
or by employees alone.
It is to be mentioned here that according to the phraseology of this definition one
can easily brand any business activity or trade as an industry in order to attract the
provisions of the Industrial Disputes Act, 1947.
The Courts have given different meaning to this concept at different times, and
actually, the interpretation has always depended on individual Judges. And even
today, controversy on definition of term "industry' remains unsettled.
In the case of Budge Municipality Vs P.R. Mukerjee, the Supreme Court analyzed
this situation in the light of the Australian Judgment given in Federated Municipal
and Shire Council Employees Union of Australia Vs Melbourne Corporation and
observed that through every activity in which the relationship of employer and
employee existed commonly understood at an industry, but still a wider and more
comprehensive interpretation has to be given to such words to meet the rapid
industrial progress and to bring about industrial peace, and economy and a fair.
In the case of workmen of I. S. Institution Vs I. S. Institution it was held that the
industry is ordinarily something which employers create or undertake. which is
gradually yielding place to the modern concept which regards industry as a joint
venture undertaken by employers, and workmen, an enterprise which equally
belongs to both. Here it is not necessary to view definition of industry under section
2(j) of the Industrial Dispute Act in two parts.
In Bangalore Water Supply Vs A. Rajappa, a seven Judges Bench of the Supreme
Court exhaustively examined and considered the scope of industry and prescribed
the Triple test which has practically reiterated the test projected in Hospital
Mazdoor Sabha case. The Triple test laid down in the Bangalore Water Supply case
are that where there is,
a) systematic activity,
b) organized by co-operation between employer and employee (the direct and
substantial element is chimerical),
c) for the production and/or distribution of goods and services calculated to
satisfy human wants and wishes,
prima facie, there is an industry.
It is noteworthy, here that in "triple test",
i. Absence of profit motive or gainful objective is irrelevant, be the venture in
public, joint, private or other sectors.
ii. The true focus is functional and the decision test is the nature of the activity
with special emphasis on the employer and employee relations.
iii) An organization does not cease to be an 'industry' even if it is a philanthropic
undertaking.
In view of the above points and the consequences of the decision given in the
Bangalore Water Supply case, activities such as clubs, educational institutions,
cooperatives, Research institutes, charitable projects, etc, if they fulfill the above
Triple test, cannot be exempted from the scope of definition of term "industry" as
given in section 2(j) of the Industrial Disputes Act, 1947.
Definition Sec-2(k) Industrial Disputes means any dispute or difference between :
Employers and Employers or between
Employers and Workmen or between
Workmen and Workmen,
which is connected with the employment or non-employment or the terms of
employment or with the conditions of labour, of any person.

Ingredients : An industrial dispute has three ingredients,
There should be real and substantial dispute or difference,
The dispute or difference must be between employers and or workmen,
The dispute or difference must be connected with employment and non-
employment, or with the conditions of labour of any person.
The expression of any person appearing in the last line of section 2(k) means that
he may not be a workman but he may be someone in whose employment, terms of
employment or conditions of labour the workman as a class have a true and
substantial interest.
Industrial dispute is not restricted to dispute between employer and recognized
majority union it also means difference between employer and workmen including a
minority union .
The terms employment and nonemployment include retrenchment as well as
refusal to reinstate.
The use of the word nonemployment also implies that an employee who had
been dismissed, removed, discharged, retrenched can be reinstated by an order of
a Industrial Tribunal.
Dispute relating to workmen employed by the contractor : In some cases, the
workman may not be the direct employee of an organization but a workman
employed to perform certain works or duties under a contractor. In this regard
certain cases are mentioned.
The leading case on this point is the Standard Vacuum Refinery Company of
India Vs Their workmen and another. The Supreme Court held in this case that
the dispute to be an industrial dispute because there was a real and substantial
disputes between the workmen and the company on the question of contract
labour for the work of the company.
Dispute relating to withdrawal of concession / privilege :
In the case of Indian Bank Vs Management of Indian Bank, it was observed that
where privilege given to an office bearer of a trade union in the form of duty
relief was withdrawn by the management which was granted to the privileged. It
cannot be said that an industrial dispute as arisen there by and the legal status
of the duty relief is only that of a concession and not a matter relating to
conditions of service. In this case it was held that where the concession provided
is withdrawn, the beneficiary cannot complain that a condition of service is
affected and the management is not entitled to do so without raising an
industrial dispute and having the matter adjudicated by the authority.
WHEN does an individual Dispute become an industrial dispute ? The following are
some of the principles laid, by the Supreme Court, to examine the nature of the
dispute :
1. The dispute must affect large group of workmen or employers who have
community of interest and the rights of these workmen must be affected as a
class in the interest of common good. In other words, considerable section of
employees should necessarily make common cause with the general lot.
2. The dispute should invariably be taken up by the industry union or by an
appreciable number of workmen.
3. There must be a concentrated demand by the workers for redress and the
grievance becomes such that if turns from individual complaint into the
general complaint.
4. The parties to the dispute must have direct and substantial interest in the
dispute, i.e., there must be some nexus between the union which espouses
the cause of the workmen and the dispute. Moreover, the union must fairly
claim a representative character.
5. If the dispute was in its inception an individual dispute and continued to be
such till the date of its reference by the Government for adjudication, it could
not be converted into an industrial dispute by support to the reference even of
workmen interested in the dispute.
The whole controversy ultimately ended in the year 1965 and the situation was
changed in cases of dismissals and retrenchments when the Parliament amended
the Industrial Dispute Act, 1947 and added section - 2A, according to which,
even the individual disputes relating to termination of service would now be
called industrial disputes under the Act, notwithstanding whether they have been
taken up by any union or by a number of workmen.
Definition : Section - 2A : Dismissal, etc., of an individual workman to be
deemed to be an industrial dispute : Where any employer discharges,
dismisses, retrenches or otherwise terminates the services of an individual
workman, any dispute or difference between that workman and his employer
connected with, or arising out of, such discharge, dismissal, retrenchment or
termination shall be deemed to be an industrial dispute notwithstanding that no
other workman nor any union of workmen is a party to the dispute.
Categories of Disputes : The following dispute have been categorized as industrial
dispute,
allegation of wrongful termination of service
Compulsory retirement of an employee
Claim for reinstatement of dismissed workmen
Dispute connected with minimum wages
Dispute regarding payment to be made under production bonus scheme
Claim for compensation for wrongful dismissal.

Dispute regarding interpretation of standing orders
Dispute relating to lock out or bona fide and genuine closure of business.
Non implementation of award and claim for compensation payable by workmen
to the employer for loss caused by strike
Demand of an employee relating to his confirmation on a post holding in an
acting capacity
Jurisdiction of Labour Courts : The Second Schedule of the I.D. Act deals with matters
within the jurisdiction of Labour Courts, which fall under the category of Rights
Disputes. Such disputes are as follows :
1. The propriety or legality of an order passed by an employer under the standing
orders;
2. The application and interpretation of standing orders, which regulate conditions
of employment.
3. Discharge or dismissal of workmen including reinstatement of, or grant of relief
to, workmen wrongfully dismissed;
4. Withdrawal of any customary concession or privilege;
5. Illegality or otherwise of a strike or lock-out; and
6. All matters other than those specified in the Third Schedule.
Jurisdiction of Industrial Tribunals : The Third Schedule of the I.D. Act deals with
matters within the jurisdiction of Industrial Tribunals which could be classified as
Interest Disputes. These are as follows: -
1. Wages, including the period and mode of payment;
2. Compensatory and other allowances;
3. Hours of work and rest intervals;
4. Leave with wages and holidays;
5. Bonus, profit sharing, provident fund and gratuity;
6. Shift working otherwise than in accordance with standing orders;
7. Classification by grades;
8. Rules of discipline;
9. Rationalization;
10. Retrenchment of workmen and closure of establishment; and
11. Any other matter that may be prescribed.
WHO can raise an Industrial Dispute ?
Any person who is a workman employed in an industry can raise an industrial
dispute. A workman includes any person (including an apprentice) employed in an
industry to do manual, unskilled, skilled, technical, operational, clerical or

supervisory work for hire or reward. It excludes those employed in the Army,
Navy, Air Force and in the police service, in managerial or administrative capacity.
Industry means any business, trade, undertaking, manufacture or calling of
employers and includes any calling, service, employment, handicraft, or industrial
occupation or avocation of workmen.
HOW to raise an Industrial Dispute ?
A workman can raise a dispute directly before a Conciliation Officer in the case of
discharge, dismissal, retrenchment or any form of termination of service.
In all other cases listed at Schedule-II, the dispute has to be raised by a Union /
Management.
WHO are Conciliation Officers and what do they do ?
The Organization of the Chief Labour Commissioner (Central) acts as the primary
conciliatory agency in the Central Government for industrial disputes. There are the
Regional Labour Commissioners (Central) and Assistant Labour Commissioners
(Central) who on behalf of the Chief Labour Commissioner (Central) act as
Conciliatory Officers in different parts of the country.
The Conciliation Officer makes efforts to resolve the dispute through settlement
between the workmen and the management. The duties of Conciliation Officers
have been laid down under Section 12 of the Industrial Disputes Act.
What happens if conciliation fails ?
In case of failure of conciliation (FOC) a report is sent to Government (IR Desks in
Ministry of Labour). The Ministry of Labour after considering the FOC Report
exercises the powers available to it under Section 10 of the Industrial Disputes Act
and either refers the dispute for adjudication or refuses to do so. Details of
functions of IR Desks and reasons for declining may be seen above.
There are at present 17 Central Government Industrial Tribunals-cum-Labour
Courts (CGIT) in different parts of the country to whom industrial disputes could be
referred for adjudication. These CGITs -cum-Labour Courts are at New Delhi,
Mumbai (2 CGITs), Bangalore, Kolkata, Asansol, Dhanbad (2 CGITs), Jabalpur,
Chandigarh, Kanpur, Jaipur, Lucknow, Nagpur, Hyderabad, Chennai and
Bhubaneshwar.
Out of these CGITs, 2 CGITs namely Mumbai-I and Kolkata have been declared as
National Industrial Tribunals.
What happens when the dispute is referred to CGIT / Labour Court ?
After the matter is referred to any of the CGIT-cum-Labour Court, the adjudication
process begins. At the end of the proceedings an Award is given by the Presiding
Officer.
The Ministry of Labour under Section 17 of the I.D. Act publishes the Award in the
Official Gazette within a period of 30 days from the date of receipt of the Award.
How is the Award implemented ?
An Award becomes enforceable on the expiry of 30 days from the date of its
publication in the Official Gazette. The Regional Labour Commissioner is the
implementing authority of the Awards.
General Prohibition of Strikes and Lockouts : No workman who is employed in any
industrial establishment shall go on strike in breach of contract and no employer of
any such workman shall declare a lockout :
(a) During the pendency of conciliation proceedings before a Board and seven days
after the conclusion of such proceedings,
(b) During the pendency of such proceedings before a Labour Court, Tribunal or
National Tribunal and 2 months after the conclusion of such proceedings.
(c) During the pendency of arbitration proceedings before an Arbitrator and 2
months after the conclusion of such proceedings, where a notification has been
issued.
(d) During any period in which a settlement or Award is in operation in respect of
any of the matters covered by the settlement of Award.
Strike : Does the workman have the Right to go on strike with proper notice in Public
Utility Services ? No person employed in a Public Utility Service can go on strike
without giving to the employer notice of strike :
(a) Within 6 weeks before striking.
(b) Within 14 days of giving such notice.
(c) Before the expiry of the date of strike specified in such notice.
(d) During the pendency of any conciliation proceedings before a Conciliation
Officer and 7 days after the conclusion of such proceedings.
Lock out : Does the Employer have the right to lock out any Public Utility Service ?
No employer carrying on any Public Utility service can lockout any of his workman :
(i) Without giving to them notice of lockout provided within 6 weeks before locking
out.
(ii) Within 14 days of giving such notice.
(iii) Before expiry of the date of lockout specified in any such notice.
(iv) During the pendency of any conciliation proceedings before a Conciliation
Officer and 7 days after the conclusion of such proceedings.
Lay-off : What compensation will a workman get when laid off?
Whenever a workman (other than a badli workman or a casual workman)
whose name is borne on the muster rolls of an industrial establishment
employing 50 or more workmen on an average working day, and

who has completed not less than one year of continuous service under an
employer laid off, whether continuously or intermittently,
he is to be paid by the employer, {for all days during which he is so laid off,
except for such weekly holidays as may intervene}, compensation which shall be
equal to fifty per cent of the total of the basic wages and dearness allowance
that would have been payable to him had he not been so laid-off.
Retrenchment : What are the conditions precedent to retrenchment of workmen ?
No workmen employed in any industry who has been in continuous service for not
less than one year under an employer can be retrenched by that employer until :
(a) The workman has to be given one months notice in writing indicating the
reasons for retrenchment or the workman has to be paid in lieu of such notice,
wages for the period of the notice.
(b) The workman has to be paid, at the time of retrenchment, compensation which
is 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 the prescribed manner is to be served on the appropriate Government
(or such authority as may be specified by the appropriate Government by
notification in the Official Gazette).
Closure : What compensation will the workman get when an undertaking closes
down ?
Where an undertaking is closed down for any reason whatsoever, every workman
who has been in continuous service for not less than one year in that undertaking
immediately before such closure is entitled to notice and compensation in
accordance with the provisions as if the workman had been retrenched.
Provided that where the undertaking is closed down on account of unavoidable
circumstances beyond the control of the employer, the compensation to be paid to
the workman is not to exceed his average pay for three months
Go To Contents
Discuss : Authorities under the ID Act 1947 : Works Committee, Conciliation Officer,
Boards of conciliation, Courts of Inquiry, Labour Court, Tribunals
Explain in detail the Authorities under the I.D. Act 1947. (Dec-2016)
Discuss : Procedure, powers and duties of the Authorities under ID Act 1947
Discuss the powers and jurisdiction of the labour Court, industrial Tribunal and
national Tribunal. (Nov-2012)
Write short note : industrial tribunal. (Nov-2014)

Write explanatory notes : Jurisdiction of Industrial Tribunal. (Oct-2013)
Write short note : conciliation proceedings. (Nov-2012)
Write explanatory notes : Conciliation Proceedings. (Oct-2013)
ANSWER :
http://14.139.60.114:8080/jspui/bitstream/123456789/17075/1/029_Conciliation
%20under%20the%20Industrial%20Disputes%20Act%201947%20-%20Should
%20it%20necessarily%20Remain%20A%20Fifth%20Wh.pdf
Intro :
DISPUTES ARE endemic in any organization. Even in a well-knit family where
paternal, maternal and fraternal feelings are supposed to be pervasive, they are
not ruled out. Thus, in an industrial set up, because of the dissimilar characteristics
of the groups which ex necessitates come together to engage in the production of
material goods or services, the dispute or difference aspect is bound to loom large.
It cannot be gainsaid that industrial peace and amity are of great significance in a
developing country like India. Peaceful and harmonious relationships between the
partners in production would ensure to workers economic security and facilitate
economic development of the nation.
The Industrial Disputes Act, 1947, reflects this very concern of the State and thus
justifying a strong need for the intervention of the State in modern industrial
disputes. State intervention in industrial relations is essentially a modern
development.
The concern of state in matters relating to labour is a product of its obligations to
protect the interest of industrial community, while at the same time fostering
economic growth.
Authorities : In 1947, the Government of India passed the Industrial Disputes Act
under which machinery for the preventions and settlement of the disputes was
outlined. The Act as amended in 1956 has set up various authorities under ID Act
1947 for settlement of industrial disputes,
These authorities include,
Works Committee,
Conciliation Officer,
Boards of conciliation,
Courts of Inquiry,
Labour Court (adjudication authority),
Industrial Tribunals (adjudication authority),
National Tribunal (adjudication authority),

Disqualifications for the presiding officers : Sec-7C of ID Act 1947 : Disqualifications
for the presiding officers of Labour Courts, Tribunals and National Tribunals : No
person shall be appointed to, or continue in, the office of the presiding officer of a
Labour Court, Tribunal or National Tribunal, if
(a) he is not an independent person; or
(b) he has attained the age of sixty-five years.]
ALL these authorities are deemed to be a public servants and thus can enter
premises related to the dispute. They exercise all the powers of a Civil Court &
their proceedings are considered to be judicial.
Distinction between Labour Courts and Tribunals : The appropriate Government may
also refer an industrial dispute to a Labour Court, Industrial Tribunal or National
Tribunal for adjudication.
While, Labour Courts are empowered to adjudicate upon matter specified in
Second Schedule, Tribunals are empowered to adjudicate upon matter specified
in Second as well as Third Schedule.
Labor Court : Where a dispute relates to a matter specified in the third schedule,
and is not likely to affect more than one hundred workmen, the appropriate
Government may refer it to a Labour Court.
Industrial Tribunal : Any matter which is important for the industry as a whole
and is listed in schedule ii or schedule iii maybe referred for adjudication to an
Industrial Tribunal.
National Tribunal : In case a dispute involves any question of national
importance or is of such nature that industrial establishment situated in more
than one state or likely to be interested in or affected by the dispute, the Central
Government may at any time refer the dispute or any relevant matter related to
the dispute to the National Tribunal.
NOTE : If a party to an industrial dispute makes a request in the prescribed
manner to refer the dispute to a Labour Court, Tribunal or National Tribunal, then
the appropriate Government is required to decide on such a request and either
make reference as requested or refuse to do so.
Works Committee (Sec-3 of ID Act 1947) :
Any industrial establishment employing 100 or more workmen is required to
constitute Works Committee
i] to promote measures for securing & preserving amity and good relations
between the employer and workmen,
ii] to comment upon matters of their common interest or concern, and
iii] to endeavor to compose any material difference of opinion in respect of such
matters.
Works Committee consists of representatives of employers and workmen engaged
in the establishment. The number of representatives of workmen on the Committee
shall not be less than the number of representatives of the employer.
The representatives of the workmen shall be chosen in the prescribed manner from
among the workmen engaged in the establishment and in consultation with their
trade union, if any, registered under the Indian Trade Unions Act, 1926.
Duty of work committee :
It shall be the duty of the Works Committee 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 Committees attempt to remove causes of friction between employers and
workers in the day-to-day working of the factory.
They provide a forum for negotiations between employers and workers at the
factory level.
Short comings : The scope of the Works Committee as in Sec. 3 (ii) of the
Industrial Disputes Act, 1947 is vague. The function and the responsibility of the
Works Committees as their very nomenclature indicates cannot go beyond
recommendation and as such they are more or less bodies who in the first
instances endeavour to compose the differences and the final decision rests with
the employer.
Conciliation Officers (Sec-4 of ID Act 1947) :
Intro :
The ID Act provides for "conciliation" with a view to bringing about an amicable
settlement of industrial disputes. The word "conciliation" has not been defined
under the Act. In industrial parlance, it involves in an industrial dispute
intervention by a third party, who may be a private body or a governmental
representative, for the purpose of bringing about a "settlement".
What is conciliation ? According to Simkim 'conciliation' is a mild form of
intervention limited primarily to scheduling conferences, trying to keep the
disputants talking, facilitating other procedural niceties, carrying messages back
and forth between the parties, and generally being a "good fellow" who tries to
keep things calm and forward looking in a tense situation.
The conciliation officer (hereinafter referred to as "officer") is required to
investigate the dispute and evolve "a recipe for settlement." He does not
discharge any adjudicatory functions in promoting "a fair and amicable
settlement", but can only goad, induce, encourage or cajole the disputants to
persist in or continue negotiations to arrive at a settlement.

Importance of conciliation process :
It is important to note that parties to an industrial dispute are not the typical
litigants before an ordinary court of law. Its "right settlement" can usher in and
ensure industrial peace. After it has been resolved, the parties, unlike the
ordinary litigants, have to get back and engage under a common roof in the
industry's productive processes.
Thus, if any rancour or ill-will persists even afterwards such feelings would not
augur well for promoting industrial peace. Consequently, only a "right
settlement", i.e., a settlement which is "right" from the point of view of both the
parties would ensure future harmonious relationships.
It is, therefore, important that the eminently sensible principle of "voluntarism"
that underlies the conciliation process be borne in mind.
Unlike the situation in adjudication or arbitration where a third party would
impose its award, in this process, the parties themselves have an excellent
opportunity to settle their differences. The adjudicator or arbitrator cannot
understand and appreciate the differences of the parties as well as they
themselves can. The "give and take" policy demonstrated by them when they
voluntarily endeavour to reconcile their differences can rarely be effectively
employed by a quasi-judicial body such as an adjudicator or arbitrator. Further,
the cost aspects of the adjudicatory and arbitration processes as well as the
inherent delay involved therein should make the conciliation process more
attractive.
Duties of Conciliation Officers :
must hold proceedings where dispute relates to a public utility or if a strike
notice is served and may hold in case of other disputes.
investigate the dispute to bring the parties to amicable settlement
send report to the Government with a memorandum of settlement signed by
parties
if settlement not reached, send full report to the Government on steps taken to
ascertain facts & why settlement was not possible.
send report within 14 days of settlement or non settlement
Conciliation process under the ID Act :
As laid down in the Act a dispute should first go through the process of
conciliation before it could be referred to the appropriate authorities for
adjudication.
Conciliation proceedings can be started in case of dispute that actually exists or
when there is reasonable ground to apprehend that an industrial dispute
is likely to come into existence unless something is done to prevent or

where both parties to dispute approach the Government separately for
conciliation. Conciliation proceedings are deemed to have been started
from the date on which a notice issued to the parties to appear before
the conciliation officer who may meet them jointly or separately.
Under the Act, the power to appoint officers is vested in the appropriate
government, which may also, when the situation demands, constitute a Board of
Conciliation. The board, acquires jurisdiction to promote a settlement only on a
reference being made to it by the appropriate government, under section 10(1)
(a).
The officer acts singly, whereas the board functions as a multi-membered body.
Both are required to induce the parties to arrive at an amicable settlement. In
case this is achieved, they have to send their reports along with the
memorandum of the settlement. Otherwise, a failure report is required to be
submitted detailing out the facts of the dispute and the reasons for failing to
arrive at a settlement.
---> While the officer in submitting his report cannot make a recommendation
"for the determination of the dispute", the board can do so.
Both the officer and the board have been given certain powers of the civil court
under the Code of Civil Procedure 1908. However, the board's powers are
greater. Thus, for example, while both attendance and examination on oath of
any person can be enforced by Board, the officer can enforce only attendance.
The Conciliation Officer must submit his report to the Government within
fourteen days of the starting of conciliation proceedings. During this period he
tries to bring about a fair and amicable settlement between the parties to
dispute.
Distinction between public utility and non-public utility services :
The Act compels the officer to commence conciliation proceedings where an
industrial dispute exists or is apprehended in a public utility service and where
notice of strike or lockout has been issued under section 22 of the Act.
In respect of non-public utility services, though the Act suggests that the
officer may commence proceedings, in light of the statutory objectives,
namely, prompt investigation and settlement of industrial disputes, it is
reasonable to conclude that there is an implicit statutory obligation on his part
to do so even in those cases where a dispute exists or is apprehended.
Settlement :
If a settlement arrived at, the Conciliation Officers will send a report to the
Government along with a memorandum of settlement duly signed by both
parties. This settlement come into force from the date agreed upon by the
parties to dispute or in its absence the date on which it was signed by

them and is binding for a period of six months unless agreed upon
otherwise, and after the period afore said, until expiry of two months from the
date on which a notice in waiting of the intention to terminate the
settlement is given by one of the parties to the other party or parities to the
settlement.
Such a settlement is binding on all parties to the industrial dispute, to
the employer, his heirs, successors or assignees and to the workmen
employed in the establishment on the date of the dispute and all the
persons who subsequently become employed therein.
Note : However, if settlement is achieved "otherwise than in the course of
conciliation proceedings", then it binds only the parties to the agreement.
Failure to settle the dispute : If no settlement is reached by the parties, the
conciliation officer will submit his report to the appropriate Government stating
the reasons for which he thinks no settlement could be arrived at as well
as the facts of the case.
Follow-up action by the Government :
On receipt of the report from the Conciliation Officer, the Government will come
to a decision on whether the circumstances and the facts of the case as such to
justify a further reference. The Government has to arrive at prima facie
conclusion that the nature of the dispute justifies a further reference. If in the
opinion of the Government, there is a scope of arriving at a settlement by
further conciliation efforts, it may refer the case to the Board of Conciliation or
Labor Court, or Tribunal, or provide reasons why no such reference was made.
Boards of Conciliation (Sec-5 of ID Act 1947) :
Section 5 of the Industrial Disputes Act, 1947 provides for creation of Board of
Conciliation which is simply an extension of conciliation officer's work.
Unlike a Conciliation Officer, the board may not be a permanent body and can be
set up as the occasion arises. It comprises of two or four members representing
parties to the dispute in equal numbers and a chairman who has to be an
independent person. The Board has the status of a Civil Court and can issue
summons and administer oaths.
The members representing the parties are to be appointed on the
recommendations of the parties concerned, but in case of their failure to make
such recommendations, the appropriate Government must appoint on its own,
persons representing the parties.
References of Disputes to Board of Conciliation :
Where the appropriate Government is of the opinion that any industrial dispute
exist or is apprehended, it may at any time, by order in writing, refer the dispute
to a Board of Conciliation for promoting settlement. In case the parties to an

industrial dispute make an application in the prescribed manner whether jointly
or separately, for a reference of the dispute to a Board of Conciliation, the
appropriate Government is required (on being satisfied that the persons making
such an application represent the majority of each party) to make the reference
accordingly.
Where the dispute is referred to the Board, the appropriate Government may
prohibit the continuance of any strike or lock-out in connection with such dispute
which may be in existence on the date of reference.
Duties and Powers of the Board :
When a dispute has been referred to the Board of Conciliation, it may take
suitable steps to induce the parties to come to a fair and amicable settlement. If
settlement is arrived at, the board is required to send a report and a
memorandum of the settlement signed by the parties to the disputes to the
appropriate Government.
If no such settlement is arrived at, the Board is required to the appropriate
Government a full report setting forth the proceedings and steps taken by the
board for ascertaining the facts and circumstances relating to the disputes and
bringing about a settlement and the reasons on account of which a settlement
could not be arrived at, and also its recommendations for the determination of
the dispute.
The board is required to submit report within two months of the date of the
reference of the dispute or within shorter period as determined by the
appropriate Government. The appropriate Government may extend the time of
the submission of the report to a period of not exceeding two months in the
aggregate. The date of the submission of the report may also be extend to such
date as may be agreed on in writing by all parties to the dispute.
The report of the Board of Conciliation writing and is to be signed by all
members of the board but any member may record any minute of dissent from a
report or from any of its recommendation.
Every report together with any minute of dissent has to be published by the
appropriate Government within a period of 30 days from the date of its receipt.
Period of Operation :
A settlement comes into operation on the date agreed upon by the parties to the
dispute and in case no date is agreed upon, the date on which the memorandum
of the settlement is signed by the parties to the depute, a settlement is binding
for such period as is agreed upon, for a period of six months from the date which
the memorandum of settlement is signed by the parties to the dispute.
Settlement is Binding : A settlement arrived at in course of conciliation proceedings
is binding on
i. all parties to the industrial disputes.
ii. all other parties summoned to appear in the proceedings as parties to the
dispute.
iii. where such parties is employer, his heirs and successors of the establishment
to which the dispute relates.
iv. where such parties composed of workmen all persons who were employed in
the establishment or part of the establishment, as the case may be to which the
dispute relates.
Courts of Inquiry (Sec-6 of ID Act 1947) : The idea of Court Inquiry is new in this Act
and has been borrowed from the British Industrial Court Act, 1919. Under the British
Act, the Minister-in-charge can constitute a Court of inquiry to enquire into and report
on the causes and circumstances of any trade dispute together with its own
recommendations.
Generally Court of Inquiry is constituted when no settlement is arrived at as a
result of efforts made by the Conciliation Board.
Constitution :
Setting of a Court of Inquiry is at the discretion of an appropriate Government.
The Government can refer any single or more matter connected or relevant to
the dispute or can refer whole to the Court which can be set up (irrespective of
consent of parties to dispute) for the purpose of inquiry in to any matter
appearing to connect with or relevant to an industrial dispute.
Usually, the Courts of Inquiry comprise one person. In case it has more than one
member one of them will be nominated as Chairmen usually.
Duties :
A Court of Inquiry is required to enquiry into the matter referred to it and report
appropriate Government ordinarily within a period of six months from the
commencement of its inquiry.
The report of inquiry is to be in writing and sign by the all members but any of
its members is free to record any minute of dissent from any recommendations.
Consequences :
The report should be given vide publicity to rouse public interest in the matter in
order to prevent any irrational step on the part of the parties for fear of public
condemnation.
After receiving the report of the Court of Inquiry, the Government may refer the
dispute to one of the adjudication authorities or Labour Courts or Industrial
Tribunal or National Tribunals as the case may be.
Labour Courts (Sec-7 of ID Act 1947) :
Labour Court is one of the adjudication authorities set up under the Industrial
Disputes Act, 1947 it was introduced by amending Act in 1956. Setting up of a
Labour Court is at the discretion of the Government.
The Government may constitute one or more Labour Courts for the adjudication of
industrial disputes related to legality of an order passed by employer, interpretation
or application of a standing order, discharge or dismissal of workmen, withdrawal
of benefits etc.
Labour Courts, Tribunal or National Tribunal shall hold their adjudication
proceedings expeditiously and submit their report as soon as practicable.
Qualification :
The Presiding Officers of Labour Courts should be independent persons, below
the age of 65 years and with no interest in the industry whose dispute be heard.
It is a one man Court presided over by a person who has held either a judicial
position in India for not less than seven years or who has been a presiding
officer of Labour Court constituted under any state act for not less than five
years.
Duties :
The court has to inquire in the matters referred to it and submit report to
Government in six months of commencement of inquiry.
Function / Jurisdiction :
The function of labour Court is to adjudicate on matters referred to it are listed
in the schedule II appended to the Act, which includes;
The propriety or legality of an order passed by an employer under the
standing orders;
Discharge or dismissal of workmen including re-instatement of or grant of
relief to workmen wrongfully dismissed;
Withdrawal of customary concession or privilege.
Illegality or otherwise of a strike or a lock out.
All matters other than those provided in the Third Schedule appended to
the Act
Reports & Awards : Must be in writing, and needs to be published by the
government within one month from the receipt.
Industrial Tribunals (Sec-7A of ID Act 1947) :
Appropriate Government may constitute by official notification one or more
Industrial Tribunals, on a temporary or permanent basis, for the adjudication of
industrial disputes related to any matter including wages, compensation and other
allowances, hours of work, bonus , profit sharing PF, gratuity, retrenchment,
closure etc. It can also handle disputes related to classification of grades,
discipline, rationalization etc.

As a whole the Tribunal comprises of one person only.
Qualification :
The Presiding Officers of Industrial Tribunals should be independent persons,
below the age of 65 years and with no interest in the industry whose dispute be
heard.
The qualifications for appointment as Presiding Officer of an Industrial Tribunal
are that the candidate should have been or is judge of a High Court or has held
the post of Chairman or Labour Appellate Tribunal for not less than two years or
he is or has been judge or Additional District judge for a period not less than
three years.
Duties :
The tribunal has to inquire in the matters referred to it and submit report to
Generally, industrial disputes of major importance or industrial disputes which
are important to the industry as a whole are referred to the industrial tribunals.
Thus appropriate Government may constitute one or more Industrial Tribunals
for the adjudication of industrial disputes relating to any matter as specified
either in second schedule mentioned above or in the third schedule appended to
the Industrial Disputes Act, 1947. These include,
a. Wages, including the period and mode of payment.
b. Contribution paid or payable by the employer to a any provident or pension
fund or for the benefit of the workmen under any law for the time being in
force;
c. Compensatory and other allowances.
d. Hours of work and intervals.
e. Leave with wages and holidays.
f. Starting alteration or discontinuance.
g. Classification by grades;
h. Withdrawal of any customary concession or change usage;
i. Introduction of new rules of discipline or alteration of existing rules, except
in so far as they are provided in standing orders;
j. Rationalization, standardization or improvement of plant or techniques
which is likely to lead retrenchment of workmen.
k. Any increase or reduction in the number of persons employed or to be

employed in any occupation or department or shift not occasioned by
circumstances over which the employer has no control;
National tribunals (Sec-7B of ID Act 1947) :
The Central Government may constitute through official notification one or more
national Industrial Tribunals for the adjudication of industrial disputes which in the
opinion of the Central Government involve questions of national importance or of
such a nature that industrial establishments situated in more than one state are
likely to be interested in , or affected by, such disputes.
National Tribunals can be set up by the Central Government. The National Tribunal
consists of one person only who is appointed by the Central Government.
Qualification :
The Presiding Officers of National Tribunals should be independent persons,
below the age of 65 years and with no interest in the industry whose dispute be
heard.
Who is qualified for appointment as the Presiding Officer of a National Industrial
Tribunal? He who is or has been a judge of a High Court, OR has held the office
of the chairman or any other member of the Labour Appellate Tribunal
constituted under the Industrial Disputes Act, 1947 for a period of not less than
two years.
The Central Government may also appoint two assessors to advise the National
Tribunal.
Duties :
The tribunal has to inquire in the matters referred to it and submit report to
They are to be constituted for the adjudication of the industrial disputes, which
in 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. In such
circumstances, the Central Governments can made a reference to the National
Tribunal.
Exclusive jurisdiction :
Where any reference is made to made National Tribunal, then notwithstanding
any thing contained in the Act, no Labour Court or Tribunal has jurisdiction to
adjudicate upon any matter which is under adjudication before it. If the mater
under adjudication of National Tribunal is pending before a Court or Tribunal the
proceedings relating to that matter which are pending before them will be
deemed to have been quashed.
State Governments are debarred from referring the matter under adjudication of
National Tribunal to any Labour Court or Industrial Tribunal.
Go To Contents
Discuss the provisions of "Strike" and "Lockout" under Industrial Dispute Act 1947.
(Oct-2013)
Explain with Case laws the provisions against the illegal strike and Lockout Under The
BIR act 1946. (Nov-2011)
Write short note : strike and Lockout. (Nov-2012)
Explain in detail the concept of strikes and lock-outs with case laws under the I.D. Act
1947. (Dec-2016)
ANSWER :
Definitions :
Strike means concerted refusal by workmen to carry work or accept employment.
"Lockout" means the closing of a place of employment or suspension of work or
refusal by an employer to continue to employ any number of persons employed by
him.
Strike :
Definition of strike postulates [i] plurality of workmen; [ii] cessation of work or
refusal to continue work; [iii] acting in combination under a common
understanding.
Workmen may not strike if [i] conciliation is going on before a Board; [ii]
adjudication is on before Labour Court or Tribunal; [iii] when Government in its
reference prohibits strike; [iv] arbitration is on and [v] when a settlement or award
is in operation .
For public utilities there are more restrictions on strikes.
Lockout : Employers right to lock out is subject to same restrictions as for strikes
above.
Penalties for illegal strike or lockout :

Illegal Strike : Workman proceeding on illegal strike can be penalized with
imprisonment up to 30 days or fine of Rs. Fifty or both.
Illegal Lock : An employer commencing illegal lock out can be penalized with
imprisonment as above or fine of Rs. One thousand or both.
Illegal Closure : Up to six months sentence or fine of up to Rs. Five Thousand is
leviable on a person closing down any undertaking without complying with
provisions of this Act.
A person instigating others to take part in illegal strike or lockout is punishable with
imprisonment of up to six months or fine of up to Rs. One Thousand or both.
Similar punishment can be given to a person providing financial assistance to illegal
strike or lockout.
A person who commits a breach of any settlement or an award is punishable by
imprisonment up to six months or fine or both.
Up to six months sentence or fine of up to Rs. One Thousand is leviable on a
person willfully disclosing confidential information .
Several penalties are prescribed in the Act for other offences.
Restrictions on employers : Section [33] spells out certain restrictions on employers
in penalizing workmen for alleged misconduct.
Restrictions are also placed on employers, under the section 33 , to safeguard
interests of a protected workman - workman representing the recognized trade
union- from any disciplinary action during pendency of conciliation, adjudication or
arbitration.
If employer has to take any disciplinary action in such a case , he has to obtain
specific approval from the appropriate authority.
Prior permission of the authority concerned is required before any action is inflicted
on a workman for misconduct connected with dispute pending in conciliation,
adjudication or arbitration.
No such restriction exists on punishment other than dismissal or discharge if
misconduct is not connected with dispute as above. In case of discharge or
dismissal in such case, 30 days wages have to be offered and an application for
approval filed on the same day.
Illegal Strikes :
https://www.scribd.com/doc/50717022/THE-BOMBAY-INDUSTRIAL-RELATIONS-
ACT-1946
A strike is illegal if
strike and lockout - http://www.examrace.com/Study-Material/Law/Labor-
Laws/Labour-Law-Industrial-Dispute.html
work on this
Illegal lockout https://www.scribd.com/doc/50717022/THE-BOMBAY-INDUSTRIAL-
RELATIONS-ACT-1946

Go To Contents
Discuss the provisions of the layoff and retrenchment under the industrial disputes
act 1947. (Nov-2012, Nov-2014)
Write explanatory notes : Lay-off and Retrenchment. (Oct-2013)
ANSWER :
Refer :

Meaning :
Lay-off means the failure, refusal or inability of an employer on account of
shortage of coal, power, raw materials or on account of accumulation of stocks,
or the break down of machinery or for any other 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.
Retrenchment means the termination by employer of the service of the
workman for any reason whatsoever otherwise than a punishment inflicted by
way of disciplinary action.
Closure means permanent closing down of a place of work or a part thereof.
Prior Permission from government :
Lay-off : Not necessary if < 50 employees
Retrenchment : Not necessary if < 50 employees
Closure : Necessary
Notice to workmen :
Lay-off : Prior gov permission to be obtained
Retrenchment : 30 day notice if < 50 workman, 3 month notice otherwise
Closure : 60 day notice if < 50 workman, 3 month notice otherwise
Compensation :
Lay-off : 50% of his basic wages and DA is workman on rolls for >1 year
Retrenchment : 15 days wages for each completed year
Closure : 15 days wages for each completed year

Other points :
Lay-off : No such compensation be paid if i] workman refuses to accept
alternative employment, ii] does not present himself for work at appointed time
each day or iii] if the layoff is consequent upon any strike or slow down.
Retrenchment :
Last-in, first-out
retrenched worker to be given preference for re-employment
Employee cannot be retrenched unless i] 30 days notice is served to him
indicating reasons for retrenchment; ii] compensation equal to 15 days wages
for every completed year of service and for any part thereof exceeding six
months, is paid to him, iii] notice in the prescribed form is served on the
appropriate government.
The employer can pay wages for 30 days in lieu of the required notice.
In case of transfer of ownership or management of an undertaking above
retrenchment compensation has to be paid to workman in continuous service
for a year.
No such compensation is payable if the service of workman is not interrupted
and terms and conditions after transfer are not less favourable after the
transfer.
Closure :
In case of financial difficulties total compensation should not exceed 3 months
wages.
Closed establishment may be restarted in exceptional circumstances
Undertaking set up for construction work of buildings, bridges etc. is
exempted from the notice.
On closure, workman with continuous service of a year is entitled to
retrenchment compensation.
Go To Contents
Discuss : Unfair Labour Practices.

ANSWER :
Schedule 5 of ID Act : UNFAIR LABOUR PRACTICES :
Definition Sec.2 (ra) of the Industrial Disputes Act, 1947 : Unfair labour practices
means any of the practices specified in the Fifth Schedule to the Industrial Disputes
Act, 1947".
Section 25T of the ID Act : No employer or workman or a trade union, whether
registered under the Trade Unions Act, 1926 or not, shall commit any unfair labour
practice.
Section 25U of the ID Act : Penalty for committing unfair labour practices : Any
person who commits any unfair labour practice shall be punishable with imprisonment
for a term which may extend to six months or with fine which may extend to one
thousand rupees or with both.
Fifth Schedule to the Industrial Disputes Act, 1947 provides a list as to what
constitutes an unfair labour practices :
I. Unfair labour practices on the part of employers and trade unions of employers
:
1. To interfere with, restrain from, or coerce, workmen in the exercise of their
right to organise, form, join or assist a trade union or to engage in concerted
activities for the purposes of collective bargaining or other mutual aid or
protection, that is to say
(a) threatening workmen with discharge or dismissal, if they join a trade
union;
(b) threatening a lock-out or closure, if a trade union is organised;
(c) granting wage increase to workmen at crucial periods of trade union
organisation, with a view to undermining the efforts of the trade union
organisation.
2. To dominate, interfere with or contribute support, financial or otherwise, to
any trade union, that is to say
(a) an employer taking an active interest in organising a trade union of his
workmen; and
(b) an employer showing partiality or granting favour to one of several trade
unions attempting to organise his workmen or to its members, where such a
trade union is not a recognised trade union.
3. To establish employer sponsored trade unions of workmen.
4. To encourage or discourage membership in any trade union by discriminating
against any workman, that is to say
(a) discharging or punishing a workman, because he urged other workmen to
join or organise a trade union;
(b) discharging or dismissing a workman for taking part in any strike (not
being a strike which is deemed to be an illegal strike under this Act);
(c) changing seniority rating of workmen because of trade union activities;
(d) refusing to promote workmen to higher posts on account of their trade
union activities;
e) giving unmerited promotions to certain workmen with a view to creating
discord amongst other workmen, or to undermine the strength of their trade
union;
(f) discharging office-bearers or active members of the trade union on account
of their trade union activities.
5. To discharge or dismiss workmen
(a) by way of victimisation;
(b) not in good faith, but in the colourable exercise of the employers rights;
(c) by falsely implicating a workman in a criminal case on false evidence or on
concocted evidence;
(d) for patently false reasons;
(e) on untrue or trumped up allegations of absence without leave;
(f) in utter disregard of the principles of natural justice in the conduct of
domestic enquiry or with undue haste;
(g) for misconduct of a minor or technical character, without having any
regard to the nature of the particular misconduct or the past record or service
of the workman, thereby leading to a disproportionate punishment.
6. To abolish the work of a regular nature being done by workmen, and to give
such work to contractors as a measure of breaking a strike.
7. To transfer a workman mala fide from one place to another, under the guise
of following management policy.
8. To insist upon individual workmen, who are on a legal strike to sign a good
conduct bond, as a precondition to allowing them to resume work.
9. To show favouritism or partiality to one set of workers regardless of merit.
10. To employ workmen as badlis, casuals or temporaries and to continue
them as such for years, with the object of depriving them of the status and
privileges of permanent workmen.
11. To discharge or discriminate against any workman for filing charges or
testifying against an employer in any enquiry or proceeding relating to any
industrial dispute.
12. To recruit workmen during a strike which is not an illegal strike.
13. Failure to implement award, settlement or agreement,
14. To indulge in acts of force or violence.
15. To refuse to bargain collectively, in good faith with the recognised trade
unions.
16. Proposing or continuing a lock-out deemed to be illegal under this Act.
II. Unfair labour practices on the part of workmen and trade unions of workmen :
1. To advise or actively support or instigate any strike deemed to be illegal
under this Act.
2. To coerce workmen in the exercise of their right to self-organisation or to join
a trade union or refrain from joining any trade union, that is to say
(a) for a trade union or its members to picketing in such a manner that
nonstriking workmen are physically debarred from entering the work places;
(b) to indulge in acts of force or violence or to hold out threats of intimidation
in connection with a strike against non-striking workmen or against
managerial staff.
3. For a recognised union to refuse to bargain collectively in good faith with the
employer.
4. To indulge in coercive activities against certification of a bargaining
representative.
5. To stage, encourage or instigate such forms of coercive actions as wilful go
slow, squatting on the work premises after working hours or gherao of any of
the members of the managerial or other staff.
6. To stage demonstrations at the residences of the employers or the managerial
staff members.
7. To incite or indulge in willful damage to employers property connected with
the industry.
8. to indulge in acts of force or violence or to hold out threats of intimidation
against any workman with a view to prevent him from attending work.
Go To Contents
Write short note : Award. (Nov-2012, Oct-2013, Nov-2014)

ANSWER :
Refer :
http://14.139.60.114:8080/jspui/bitstream/123456789/731/10/Enforcement%20of
%20Awards.pdf
Intro :
Award is the end product of the adjudication or an arbitration process.
In order to have a complete and clear picture of adjudication, as a method of
settlement of industrial disputes, it is necessary to study the meaning and
definition of award, the types of award, the law relating to the enforcement of
award and the remedies available to the aggrieved parties against the award.
Definition : Sec. 2(b) of the I.D.Act
award means an interim or final determination of any industrial dispute or of any
question relating thereto by any Labour Court, Industrial Tribunal or National
Industrial Tribunal and includes an arbitration award made under Sec. 10-A.
Interim or final determination, award and relief :
The determination contemplated is of a quasi-judicial nature, implying thereby that
the adjudicatory authority must exercise its own judgment by applying its mind to
the merits of the dispute.
The Supreme Court in Cox&Kings (Agents) Ltd. v. Their Workmen2 laid down a
two-fold test for a decision of the Tribunal to fall within the definition of award.
First, it must be an adjudication of a question or point relating to the industrial
dispute, which has been specified in the order of reference, or is incidental
thereto; and
secondly, such adjudication must be on merits.
The word determination also implies that the adjudicator has to adjudicate upon
the whole dispute as referred to him. The adjudicator cannot determine only part of
the dispute, by leaving the rest to be determined by the parties.
The Act itself distinguishes between award and other decisions of adjudicators in
certain cases. For example, Sec. 19 (4) of the Act, which empowers the appropriate
Government to reduce the period of operation of an award provides for the
reference of such a question to the adjudicator for a decision, whether the period
of operation should not be shortened and that the decision shall be final., It is clear
that such decision shall not be an award.
Similarly, Secs. 33 and 33-C (2) use the words order and decision, respectively,
and the decisions of the adjudicator under these Sections are not awards.
Thus, all the decisions of the adjudicators under the Act are not necessarily awards
within the meaning of Sec. 2(b) of the Act.
The word interim here means a temporary or provisional arrangement made
pending the final disposal of the dispute.
In Hotel Imperial v. Hotel Workers Union the Supreme Court pointed out that it
was open for the adjudicator to make the award in respect of some of the matters
referred to it, whilst some others remain to be determined.
This would be the determination of the matters decided and would be an interim
award.
The Supreme Court in this case also ruled that an adjudicator is empowered
under Sec. 10 (4) of the Act to grant interim relief, with respect to disputes
referred, as a matter incidental to the points of dispute.

This question assumes importance in view of the law that if it is an award, it
requires publication by the appropriate Government under Sec. 17 as a condition
precedent for its enforceability.
There was a conflict of opinion on this question among various High Courts.
The Supreme Court in Cox & Kings (Agents) Ltd v. Workmen, set at rest the
conflicting opinions of various High Courts and held that the decision of the
adjudicator on preliminary issues like, industry, industrial dispute,
workman, etc., is not an award, as there was no adjudication on merits and
that such a decision cannot also be said to be a determination of any industrial
dispute or any related question or a matter incidental thereto.
Compromise or consent award :
Compromise or consent award means an award made by an adjudicator embodying
the compromise arrived at between the parties during the pendency of adjudication
proceedings.
It has been the policy of the judiciary that if the parties arrived at a settlement of
the dispute amicably, even after the same has been referred for adjudication, the
settlement should be preferred, provided that the settlement is considered to be
fair and just.
In such a case, if the parties approach the adjudicator to pass an award in terms of
the settlement, the adjudicator shall normally adopt the settlement and pass a
compromise award.
But before accepting the compromise settlement as an award, it is essential that
the Tribunal must bring its judicial mind to bear upon it and make a determination
that the compromise is just, fair and equitable under the circumstances.
Withdrawal of the dispute :
An order of the Tribunal permitting the parties to withdraw the dispute from
adjudication of a private settlement by subsequent negotiations or by arbitration
does not amount to an award, as there was no adjudication on merits and the
dispute remains unresolved.
The Supreme Court finally resolved the conflict of opinion among various High
Courts on this point.
Dismissal for default :
When a reference is dismissed for default of appearance of workmen, who claimed
the relief, or of both the parties, the order of the adjudicator cannot take the form
of an award, although the proceedings have been terminated.
Ex-parte award :
Where the Tribunal procedes ex-parte, in case anyone party fails to attend, it
makes an ex-parte award after applying its mind fully to the material placed before
it by the party appearing.
Such ex-parte decision is an award within the meaning of Sec. 2 (b), requiring
publication under Sec. 17 of the Act.
Form of an award :
Sec. 16 (2) of the Act simply states, the award of a Labour Court, Tribunal or
National Tribunal shall be in writing and shall be signed by the presiding officer.
No particular form is prescribed.
Usually, an award contains two parts, namely, recitals and the operative part.
Although, it is not necessary for its validity that it should contain an introduction, it
is normally added for the sake of clarity. Sometimes, it may be difficult to
understand the operative part without some preliminary explanation. Therefore,
generally the award contains recitals giving particulars about the dispute.
The operative part of the award is the actual decision of the adjudicator upon the
matters in dispute under reference. It is the essential part of the award.
The award must be certain and consistent in all its parts.
The award must cover all the points referred to it for adjudication. In order that the
award shall be valid, it is essential that it should be confined to the points specified
in the order of reference and matters incidental thereto.
The award must be certain, in the sense that the parties must know what they are
required to do in terms of the award.
The award should contain the findings of the adjudicator and the materials on the
basis of which the findings are based.
The award should finally give directions necessary for proper implementation of the
award. The directions should not be contrary to the law and they should be within
the scope of powers of the adjudicator.
Publication of awards :
The adjudicator shall submit the award to the appropriate Government. The
appropriate Government shall then within a period of thirty days from the date of
its receipt publish the award in such manner as the Government thinks fit.
It is mandatory for the appropriate Government to publish the award, unless it is
prevented from doing so by an order of a Court of competent jurisdiction.
Sometimes, to avoid conflict between a settlement and award, the Courts had
ordered the Government to withhold publication. Excepting in such extra-ordinary
circumstances, the appropriate Government is duty bound to publish the award,
because unless the award is published it cannot become enforceable under the
scheme of the Act.
Conclusion : Introduction of some of the following changes would help the quick and
effective enforceability of awards.

Award, interim or final, shall be pronounced in the open court just like the civil
courts.
The present system of publication of awards by the appropriate Government is
dilatory and causing undue delay in realizing the benefits under the Award. Awards
should become enforceable immediately after its pronouncement by the Presiding
Officer. However one month time may be given for challenging the award by the
aggrieved party.
Further the adjudicating courts should be provided with execution powers for quick
implementation of awards passed by them. The present system, except in some
states who have given such powers to these courts, is cumbersome and is causing
delay in execution of the awards.
The appellate courts shall have to decide the writs challenging the validity of the
awards on priority basis as early as possible, so that unnecessary delay in
realization of the fruits under the awards can be avoided.
Go To Contents
Module-2) The Industrial Employment (Standing Orders) Act, 1946

2.1) Application of the Act
2.2) Standing Orders. Model Standing Orders,
2.3) Certification and Cancellation of Standing Orders
2.4) Provisions of Appeal
2.5) Disciplinary Procedures : Departmental Enquiries
Go To Contents
Discuss the objects applications and standing orders under the industrial
employment standing orders act 1946. (Nov-2012, Oct-2013, Nov-2014)
Explain in detail : Standing orders and model standing orders under the
Industrial Employment (Standing Orders) Act 1946. (Dec-2016)
Discuss : salient features/ provisions of industrial employment standing order act.
Discuss : (i) Certification and Cancellation of Standing Orders, (ii) Appeal against
Standing orders.
Explain standing orders under the industrial employment standing order act. (Nov-
2011)
Explain with decided cases the various stages of departmental enquiry for
disciplinary action in light of the principles of natural justice. (Nov-2011)
Explain the various stages of the departmental enquiry for disciplinary action in the
industrial establishment. (Nov-2012, Oct-2013, Nov-2014)
Explain in detail : Provisions of the Departmental Enquiries under the Industrial
Employment (Standing Orders) Act 1946. (Dec-2016)
Go To Contents
MODULE-2 ANSWERS :
Discuss the objects applications and standing orders under the industrial
employment standing orders act 1946. (Nov-2012, Oct-2013, Nov-2014)
Explain in detail : Standing orders and model standing orders under the
Industrial Employment (Standing Orders) Act 1946. (Dec-2016)
Discuss : salient features/ provisions of industrial employment standing order act.
Discuss : (i) Certification and Cancellation of Standing Orders, (ii) Appeal against
Standing orders.
Explain standing orders under the industrial employment standing order act. (Nov-
2011)
ANSWER :
Refer :
http://www.whatishumanresource.com/industrial-employment-standing-orders-
act-1946
Coverage of Act :-
The Act is applicable to all industrial establishments employing 100 or more
workmen. [section 1(3)]
Definition : "Industrial establishment" means
(i) an industrial establishment as defined in clause (ii) of section 2 of the Payment
of Wages Act, 1936 (4 of 1936), or
(ii) a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63 of
1948), or
(iii) a railway as defined in clause (4) of section 2 of the Indian Railways Act, 1890
(9 of 1890), or
(iv) the establishment of a person who, for the purpose of fulfilling a contract with
the owner of any industrial establishment, employs workmen;
Definition : Workman - Workman has meaning assigned to it under section 2(s) of
Industrial Disputes Act. [section 2(i)]. Thus, workman includes skilled, unskilled,
manual or clerical work. However, workman does not include employees engaged in
managerial or administrative capacity or supervisory capacity. Workman does not
include workers subject to Army Act, Navy Act or Air Force Act or to police or prison
services.
What are Standing Orders ? :-
The Industrial Employment (Standing Orders) Act, 1947 is designed to provide
service rules to workmen. The object of the Act is to require employers in industrial
establishments to formally define conditions of employment under them, and make
the said conditions known to workmen employed by them.
Standing Orders means rules of conduct for workmen employed in industrial
establishments. Standing orders means rules relating to matters set out in the
schedule to the Act. [section 2(g)]. The schedule to the Act requires that following
should be specified in Standing Orders -
(a) classification of workmen i.e. temporary, badli, casual, permanent, skilled
etc.
(b) manner of intimating to workmen working hours, shift working, transfers etc.
(c) Holidays
(d) Attendance and late coming rules
(e) Leave rules

(f) Leave eligibility and leave conditions
(g) Closing and reopening of sections of industrial establishment
(h) termination of employment, suspension, dismissal etc. for misconduct and
acts or omissions which constitute misconduct
(i) Retirement age
(j) Means of redressal of workmen against unfair treatment or wrongful
exactions by employer
(k) Any other matter that may be prescribed.
What are model Standing Orders ? :-

Main features/ Provisions of the Act :
Submission of Draft Standing Orders :
(1) Within six months from the date on which this Act becomes applicable to an
industrial establishment, the employer shall submit to the Certifying Officer five
copies of the draft standing orders proposed by him for adoption in his industrial
establishment [section 3(1)]. Certifying Officer means Labour Commissioner and
any officer appointed by Government to be Certifying Officer [section 2(c)].
(2) Provision shall be made in such draft for every matter set out in the Schedule
which may be applicable to the industrial establishment, and where model standing
orders have been prescribed, shall be, so far as is practicable, in conformity with
such model.
(3) The draft standing orders submitted under this section shall be accompanied by
a statement giving prescribed particulars of the workmen employed in the
industrial establishment including the name of the trade union, if any, to which
they belong.
(4) Subject to such conditions as may be prescribed, a group of employers in
similar industrial establishments may submit a joint draft of standing orders under
this section.
Conditions for Certification Of Standing Orders : Standing orders shall be certifiable
under this Act if,
(a) provision is made therein for every matter set out in the Schedule which is
applicable to the industrial establishment, and
(b) the standing orders are otherwise in conformity with the provisions of this Act;
and it shall be the function of the Certifying Officer or appellate authority to
adjudicate upon the fairness or reasonableness of the provisions of any standing
orders.
Certification of Standing Orders :
(1) On receipt of the draft under section 3, the Certifying Officer shall forward a
copy thereof to the trade union, if any, of the workmen, or where there is no such
trade union, to the workmen in such manner as may be prescribed, together with a
notice in the prescribed form requiring objections, if any, which the workmen may
desire to make to the draft standing orders to be submitted to him within fifteen
days from the receipt of the notice.
(2) After giving the employer and the trade union or such other representatives of
the workmen as may be prescribed an opportunity of being heard, the Certifying
Officer shall decide whether or not any modification of or addition to the draft
submitted by the employer is necessary to render the draft Standing Orders
certifiable under this Act, and shall make an order in writing accordingly [section
5].
(3) The Certifying Officer shall thereupon certify the draft standing orders, after
making any modifications therein which his order under sub-section (2) may
require, and shall within seven days thereafter send copies of the certified standing
orders authenticated in the prescribed manner and of his order under sub-section
(2) to the employer and to the trade union or other prescribed representatives of
the workmen.
Other features/ provisions :
Till standing orders are certified, Model Standing Order prepared by Government
will automatically apply. [section 12A].
Standing order should be displayed in English and local language on special notice
boards at or near entrance of the establishment. [section 9].
Modifications of Standing Order shall be done by following similar procedure.
[section 10].
Effect of standing orders :
Once the Standing Orders are certified, they supersede any term and condition of
employment, contained in the appointment letter. If there is inconsistency between
Standing Order and Appointment Letter, the provisions of Standing Order
prevail - Eicher Goodearth Ltd. v. R K Soni - (1993)
Standing orders are binding on employer and employee. These are statutorily
imposed conditions of service. However, they are not statutory provisions
themselves (meaning that the Standing Orders even when approved, do not
become law in the sense in which Rules and Notifications issued under delegated
legislation become after they are published as prescribed.) - Rajasthan SRTC v.
Krishna Kant - AIR 1995
Appeal against standing orders / cancellation :
(1) Any employer, workman, trade union or other prescribed representatives of the
workmen aggrieved by the order of the Certifying Officer appeal to the appellate
authority, and the appellate authority, whose decision shall be final, shall by order
in writing confirm the standing orders either in the form certified by the Certifying
Officer or after amending the said standing orders by making such modifications
thereof or additions thereto as it thinks necessary to render the standing orders
certifiable under this Act.
Date of operation of Standing Orders : Standing orders shall, unless an appeal is
preferred under section 6, come into operation on the expiry of thirty days from the
date on which authenticated copies thereof are sent under sub-section (3) of section
5, 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 under sub-
section (2) of section 6.
Duration and modification of Standing Orders :
(1) Standing orders finally certified under this Act shall not, except on agreement
between the employer and the workmen, or a trade union or other representative
body of the workmen, 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 workman or a trade union or other representative body of the
workmen may apply to the Certifying Officer to have the standing orders modified,
and such application shall be accompanied by five copies of the modifications
proposed to be made, and where such modifications are proposed to be made by
agreement between the employer and the workman or a trade union or other
representative body of the workmen, a certified copy of that agreement shall be
filed along with the application.
Disciplinary Action - The most important use of Standing Orders is in case of
disciplinary action. A workman can be punished only if the act committed by him is a
misconduct as defined under the Standing Orders. The Model Standing Orders
contain such acts like insubordination, disobedience, fraud, dishonesty, damage to
employers property, taking bribe, habitual absence or habitual late attendance,
riotous behaviour, habitual neglect of work, strike in contravention of rules etc. as
misconducts. The Certified Standing Orders may cover other acts as misconduct, if
approved by Certifying Officer.
Payment of Subsistence Allowance :
(1) Where any workman is suspended by the employer pending investigation or
inquiry into complaints or charges of misconduct against him, the employer shall
pay to such workman subsistence allowance
(a) at the rate of fifty per cent. of the wages which the workman 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 workman is not directly attributable to the conduct of such workman.
(2) If any dispute arises regarding the subsistence allowance payable to a workman
under sub-section (1), the workman or the employer concerned may refer the
dispute to the Labour Court, constituted under the Industrial Disputes Act, 1947
(14 of 1947), within the local limits of whose jurisdiction the industrial
establishment wherein such workman is employed is situated and the Labour Court
to which the dispute is so referred shall, after giving the parties an opportunity of
being heard, decide the dispute and such decision shall be final and binding on the
parties.
(3) Notwithstanding anything contained in the foregoing provisions of this section,
where provisions relating to payment of subsistence allowance under any other law
for the time being in force in any State are more beneficial than the provisions of
this section, the provisions of such other law shall be applicable to the payment of
subsistence allowance in that State.
Interpretation of Standing Orders : If any question arises as to the application or
interpretation of a standing order certified under this Act, any employer or workman
or a trade union or other representative body of the workmen may refer the question
to any one of the Labour Courts constituted under the Industrial Disputes Act, 1947
(14 of 1947), and specified for the disposal of such proceeding by the appropriate
Government by notification in the Official Gazette, and the Labour Court to which the
question is so referred shall, after giving the parties an opportunity of being heard,
decide the question and such decision shall be final and binding on the parties.
Penalties :
1 Employer who fails to submit draft standing orders : fine five thousand rupees
2 contravention of the standing orders : fine one hundred rupees
Go To Contents
Explain with decided cases the various stages of departmental enquiry for
disciplinary action in light of the principles of natural justice. (Nov-2011)
Explain the various stages of the departmental enquiry for disciplinary action in the
industrial establishment. (Nov-2012, Oct-2013, Nov-2014)
Explain in detail : Provisions of the Departmental Enquiries under the Industrial
Employment (Standing Orders) Act 1946. (Dec-2016)
ANSWER :
Refer :
http://aipnbsf.org/files/Microsoft%20Word%20-%20Domestic%20Enquiry.pdf
http://psalegal.com/upload/publication/assocFile/Labor-Bulletin-Issue-
VIII04072010050903PM.pdf
Introduction
For the smooth functioning of an industry, the defined codes of discipline, contracts
of service by awards, agreements and standing orders must be adhered to. In the
event of an employee not complying with these codes of conduct, he is liable to
face disciplinary actions initiated by the Management according to the Standing
Order. This procedure is called Domestic Enquiry and it is conducted in accordance
with the standing order/agreements.
Disciplining a workman is one of the key methods of curtailing disputes amongst
them and achieving maximum productivity. Accordingly, the Supreme Court of
India (SC) in Hombe Gowda Educational Trust v. State of Karnataka, stated that
giving managers the power to punish a workman according to law, even if the
punishment may result in some hardship is important.
But, one needs to bear in mind that conducting disciplinary proceedings against a
workman is most controversial and often lead to long drawn-out cases. Hence, the
management of any industrial establishment must cautiously approach such
proceedings and strictly follow the procedure laid down by judicial precedents.
What is misconduct ?
Even though the term misconduct is not defined under any legislation governing
labour laws in India, the SC in State of Punjab v. Ram Singh Ex. Constable, held
that misconduct can involve moral turpitude, improper or wrongful behavior, willful
incharacter, doing a forbidden act, or transgression of well established rules of
action or code of conduct.
But, SC further stated that misconduct cannot include a mere error of judgment,
carelessness or negligence in performance of duty.
Moreover, the central government has prescribed Model Standing Orders, which
provides the following instances to constitute misconduct:
(a) willful insubordination or disobedience of any lawful and reasonable order of
a superior;
(b) theft, fraud or dishonesty of the employers business or property;
(c) willful damage or loss to employers goods or property;
(d) taking or giving bribes;
(e) habitual breach of any law applicable to the industrial establishment;
(f) riotous or disorderly behavior during working hours at the industrial
establishment;
(g) habitual negligence or neglect of work;
(h) repetition of any act or omission for which fine may be imposed to a
maximum of 2% of the monthly wages;
(i) striking work or inciting others to strike work in contravention of the provision
of any law;
(j) sexual harassment.
As is evident from the language used, the instances cited above are illustrative and
not exhaustive. Categorization of an act or omission as misconduct will depends on
the facts and circumstances of the case. However, to construe an act or omission
as misconduct it should have a rational connection with the employment of the
workman and the relationship with his employer.
What is "DOMESTIC ENQUIRY" ?
Based on the above description of domestic enquiry, we understand that the term
domestic enquiry is mainly used to refer to an enquiry into the charges of
indiscipline and misconduct by an employee.
In common parlance, domestic enquiry means departmental enquiry or domestic
tribunal.
In such enquiries, the matter is decided by administrative officers and not by
courts of law.
In cases of alleged indiscipline, it is common for disciplinary authorities in a
department or in an industry to appoint an officer or officers to inquire into the
allegations against an employee. These enquiries are commonly known as
Domestic Enquiries.
General Procedure for disciplining a workman :
The procedure for carrying out disciplinary action has not been prescribed under
any statute or notification and has been evolved through practice and judicial
precedents. In Sur Enamel and Stamping Works (P) Ltd. v. Their Workmen, the SC
in an attempt to lay down the procedure for conducting an enquiry for industrial
adjudication provided that:
Rule of Natural Justice must be observed.
The delinquent is entitled to a just hearing.
Prescribed procedure of conducting enquiry shall be scrupulously followed,
He can call for his own evidence.
the workman proceeded against must be informed clearly of the charges leveled
against him;
the witnesses must be examined in the presence of the workman;
the workman must be given a fair opportunity to cross-examine the witnesses
including himself if he so wishes; and
the Enquiry Officer must record his findings with reasons in his report.
In addition to the above rudimentary principles of equity, the management of the

industrial establishment must also satisfy the principles of natural justice and non-
discrimination towards the workman. Keeping this in mind, the following steps for
conducting an enquiry against a workman need to be followed :
Preliminary enquiry :
When an act of misconduct has been committed and the Disciplinary Authority
(Authority) receives a complaint, it may conduct a preliminary enquiry. This
enquiry is conducted before the charges are framed and is not part of a domestic
enquiry. At this stage the management carries out investigations prior to launching
enquiries against the workman, and determines whether there is sufficient material
evidence to initiate domestic enquiry.
The law with respect to preliminary investigation is, if the employer makes the
enquiry it is not incumbent upon him to call for the explanation of the workman
before serving the charge-sheet, since it may be used as a ploy for dishing out the
defence of the workman. However, it is pertinent to note that the evidence
recorded in a preliminary enquiry cannot be used in domestic enquiry because the
workman has not had the opportunity to defend himself against such evidence.
Upon conclusion of the preliminary enquiry, if the workman is found innocent, the
employer need not undergo the following procedure. However, if the workman is
found guilty, the management has to hold a proper enquiry before imposing
penalty on the workman, which can be initiated only by supplying him with a
charge-sheet.
Charge-sheet :
Domestic enquiry commences once a charge-sheet is issued to the workman.
Charge-sheet is an accusation made against a person in respect of an offence
alleged to have been committed by him.
The employer cannot justify his action on any grounds other than those contained
in the charge sheet.
The charge sheet, however, is not expected to be a record of evidence.
The person signing the charge sheet is not an accuser.
A charge-sheet essentially contains detailed particulars of the misconduct, specific
charges against the workman and the relevant clauses of the Standing Order under
which the workman is liable to the punished.
The Supreme Court in Powari Tea Estate Vs. M.K. Barktaki (1965 II LLJ 102), held
that the charge must not contain any expression which would give rise to
reasonable apprehension in the mind of the workman against whom the enquiry is
held that the management has already made up its mind as to his guilt.
The charge sheet must be signed by a competent authority. Usually, such a
competent authority is the Disciplinary Authority who is also authorised to inflict
punishment.
The charge sheet should be drafted very carefully and served properly. It is
important that the charge sheet contains the following details :
Name of the person charged
Employee number
Address
Date, Time & Place of alleged misconduct
Narration of the misconduct alleged
Relevant clause and specific act of misconduct under the standing orders/
settlement.
Calling for an explanation within a stipulated time
If the charge rests on a written report, a copy of that report to be enclosed.
Note : The charges should be specific and clear and never vague. Incidental
matters not connected with the charges and or irrelevant should be omitted from
the charge-sheet.
It is pertinent to note that the charge-sheet is to be properly delivered by the
employer to the workman either in person (in presence of witness, or by registered
post, or (in case it is returned un-served) the employer must get the charges
published in the local newspaper in the regional language understood by the
workman.
Explanation of charged employee :
Pursuant to service of the charge-sheet, the workman must be given an
opportunity to submit an explanation to the Enquiry Officer with respect to the
alleged act or omission leading to misconduct. Accordingly, he must be granted
reasonable time towards submitting the explanation and the enquiry must not be
initiated unless this time period has expired. It is pertinent to note that there are
no defined parameters of what constitutes reasonable time period, and it depends
on the facts and circumstances of each case, nature of charges, nature of proposed
action, etc.
Enquiry proceedings : If employer is not satisfied with the explanation tendered by
the charged employee, employer may initiate conduct of the enquiry proceedgings
with appointment of Enquiry Officer (to conduct impartial enquiry) and a Presenting
Officer (to lead evidence in support of the charge-sheet).
Functions of Enquiry Officer : An Enquiry Officer should complete the enquiry and
submit his findings to the Disciplinary Authority as expeditiously as possible. To this
end he should :
(a) Advise the date of the first hearing to the employee. He may also advise
about the list of documents and witnesses to be relied upon by the prosecution
and forward copies of the documents which would be received by him from the
Presenting Officer.
(b) Following are the persons allowed in an enquiry proceeding :
i. Delinquent employee
ii. Presenting Officer
iii. Defence Representative if any
iv. Only one witness, at a time who is being examined
(c) Ensure that the employee is present during all sittings of the enquiry.
Without his presence, enquiry should not be conducted.
(d) At the enquiry, ensure identity of the employee and ascertain basic details
about him, such as name, age, etc.
(e) Ask the employee whether he has received the charge sheet quoting the
charge sheet number and date.
(f) The delinquent should be asked if he understood the charges leveled against
him. If the delinquent refuses, the charges be further explained to him, the
enquiry officer should oblige him. Delinquent should be asked whether he admits
the charge. If the employee pleads guilty for a charge proceed to the next
charge. If he does not plead guilty to the charges, ask him if he is going to be
represented by any defence representative. If so, obtain letter from the
employee appointing defence representative.
(g) Ensure that the defence representative is no one other than a representative
of a registered union, or with the permission of the Disciplinary Authority, a
lawyer.
(h) Advise the Presenting Officer to present his case and then to start
examination-in-chief of his witnesses. Immediately
after examination-in-chief of each witness is over, allow the witness to be cross-
examined by the Defence Representative and to be re-examined by the
Presenting Officer after the cross-examination is over.
(i) Then ask the Defence Representative to conduct examination-in-chief of the
defence witnesses also and then follow a similar procedure as above.
(j) After each witness has been disposed of obtain the signatures of all present,
in the recorded note book on each page. The witness should also sign before he
leaves the room.
(k) After all the witnesses of the prosecution and defence have been examined
on the last day of the sitting; the Presenting Officer may be advised to present
his summing up followed by the Defence Representative. If they so desire, they
may be allowed to submit written brief. In that case, advise Presenting Officer to
submit one copy of his brief to the defence Representative.
(l) Advise the Defence Representative that on receipt of Presenting Officers

brief, he should submit his brief.
(m) On receipt of Defence Representatives brief, prepare the findings and
submit it to the Disciplinary Authority.
Adjournments requested by the delinquent on reasonable grounds should be
granted. Hastening the enquiry, disregarding the formalities to be observed will
vitiate the enquiry.
Enquiry report :
Once the employer and the workman have been heard, the Enquiry Officer is
required to prepare a reasoned enquiry report and submit it with the Authority.
The Enquiry Officer should narrate briefly the statements made and the evidences
laid before him both in support of and against the charge.
He should analyse each charge as to whether it is proved or not.
The findings should not suggest any punishment.
Findings should be supported by cogent reasons to be set out clearly in the report.
The Charge Sheet, Explanation, and Record of Enquiry and the Enquiry Report/
findings of the Enquiry Officer shall have be submitted to the Disciplinary Authority.
Awarding of Punishment by Disciplinary Authority :
On receipt of the proceedings and findings of the Enquiry Officer, the Disciplinary
Authority should forward a copy of the findings of the Enquiry Officer to the
delinquent employee and advise him to submit his comments on the findings of the
Enquiry Officer within a specific period of time.
On receipt delinquent employees comments or after expiry of specific period of
time given to delinquent employee to submit his comments, the Disciplinary
Authority should come to his own conclusion by going through all the papers and
applying his mind dispassionately. He should also record his views on the Enquiry
Officers findings in respect of each charge separately.
Show Cause Notice :
After deciding the punishment for the misconduct proved against the employee the
Disciplinary Authority should issue a show cause notice furnishing his order and
proposing the punishment and advising the employee to show cause why such a
punishment should not be awarded to him.
Consideration of the Past Record :
The Disciplinary Authority should also go into the past record of the employee while
awarding the punishment. When it is favourable to the employee and the
misconduct committed by and approved against him is of a minor nature, the
Disciplinary Authority may take a lenient view. In case of adverse past record, it
should be disclosed to him (employee) in the show cause notice and he should be
given an opportunity to explain the same.

Note that, the past record is relevant only for the purpose of awarding punishment
and not for finding whether the employee is guilty or not of the charge.
Award of penalty :
After considering all the above factors, and after affording a personal hearing to the
employee, the Disciplinary Authority will issue the final order reducing or
confirming the punishment already proposed or exonerating the employee, as he
may deem fit.
Appeal :
An employee can appeal to the Appellate Authority against the decision of the
Disciplinary Authority. But it should be done within a specified time limit from the
date of communication of the final order of punishment by the Disciplinary
Authority. The Appellate Authority should also give a personal hearing to the
employee if so required by him in case of dismissal.
Employee may also be permitted to be represented by a Defence Representative.
The appellate authority should dispose of the appeal within a stipulated time.
The decision of the appellate Authority is final and binding upon the parties, and
the domestic enquiry would be deemed concluded. However, this position has
changed since the inception of section 11-A in the Act. 9
Impact of section 11-A of the Industrial Disputes Act :
The significance of domestic enquiries has reduced due to the introduction of
section 11-A in the Act and the finding of the SC in The Workmen of Firestone Tyre
and Rubber Co. of India (Pvt.) Ltd. v. The Management, wherein it was held that
even if no enquiry or defective enquiry had been conducted by the management of
the industrial establishment, the parties can adduce evidence before the Industrial
Tribunal (Tribunal) to prove their stand. Thus, before section 11-A was introduced
and a valid enquiry was conducted, the Tribunal could only interfere with the
decision of the management on the following four grounds:
(a) want of good faith;
(b) unfair labour practice;
(c) violation of principles of natural justice by the management; and
(d) the finding is not based on the material evidence.
However, post the amendment, the jurisdiction of the Tribunal/ Labour Court can
interfere with the decision of the Authority, even if the enquiry is conducted on the
principles of natural justice. Therefore, in case of both, valid enquiry following the
principles of natural justice or no enquiry being conducted, the Tribunal/Labour
Court is empowered to set-aside the decision of the management or modify the
punishment awarded to the workman. This in turn means that the amendment has
granted the Tribunal/ Labour Court extensive power which might be misused.
If the employer or the workman is not satisfied with the decision of the Tribunal/
Labour Court, they may further appeal before a high court by invoking writ
jurisdiction.
Conclusion :
Under the present system an Enquiry Officer does not inspire the confidence of the
delinquent workman as the charge-sheet is given by the employer and the Enquiry
Officer is also appointed by the employer. This frustrates the very essence of
natural justice. Therefore, the law should provide a panel of Enquiry Officers
consisting of retired judges and labour law practitioners. They should be
empowered with quasi-judicial powers while holding enquiries.
Accordingly, due weightage will be given to the findings of such Enquiry Officers
and the number of industrial disputes will reduce.
Further, due to the extensive power of the interference of the Tribunal/ Labour
Court under section 11-A of the Act followed by an appeal before the high court,
the significance of holding a valid domestic enquiry is overlooked in industries. The
rationale is that the industry is averse to get involved with cumbersome procedures
when the Tribunal/ Labour Court is fully empowered to re-examine the case on
merits. This undermines the entire process of industrial adjudication.
Go To Contents
Module-3) Trade Unions Act, 1926

3.1) History and Development of Trade Unionism in India
3.2) Registration of Trade Union : Procedure
3.3) Rights and Liabilities of Registered Trade Unions
3.4) Privileges of Registered Trade Unions
Go To Contents
Explain in detail the history and development of the Trade Unionism in India
under the Trade Unions Act 1926. (Dec-2016).
Explain the provisions relating registration of trade union under the trade unions
act 1926. (Nov-2012, Oct-2013)
Explain the provisions relating to trade union under the trade unions act 1926.
(Nov-2014)
Explain in detail : Registration of Trade Union under the Trade Union Act 1926. (Dec-
2016)
Explain rights and privileges of the registered trade union. (Nov-2011)
Explain in detail : Privileges of the registered trade union under the Trade Union Act
1926. (Dec-2016)
Discuss the rights and duties of the office bearers of the union under the trade
union act 1926. (Nov-2012, Oct-2013, Nov-2014)
Immunities available to a registered Trade Union.
Go To Contents
MODULE-3 ANSWERS :
Explain in detail the history and development of the Trade Unionism in India
under the Trade Unions Act 1926. (Dec-2016).
ANSWER :

Go To CONTENTS
Explain the provisions relating registration of trade union under the trade unions
act 1926. (Nov-2012, Oct-2013)
Explain the provisions relating to trade union under the trade unions act 1926.
(Nov-2014)
Explain in detail : Registration of Trade Union under the Trade Union Act 1926. (Dec-
2016)
ANSWER :
Refer :
http://www.businessmanagementideas.com/trade-unions/trade-unions-objectives-
functions-formation-regulations-rights-and-liabilities/2489
Intro :
The Trade Unions Act, 1926 provides for registration of trade unions with a view to
render lawful organisation of labour to enable collective bargaining. It also confers
on a registered trade union certain protection and privileges.
The Act extends to the whole of India and applies to all kinds of unions of workers
and associations of employers, which aim at regularising labour management
relations.
A Trade Union is formed for regulating the relations not only between workmen and
employers but also between workmen and workmen or between employers and
employers.
The law relating to the registration of trade unions and certain other matters is
contained in the Trade Unions Act 1926. This Act was passed to regulate:
a) Conditions governing the registration of Trade Unions
b) Obligations imposed upon a registered Trade Unions
c) Rights and Liabilities of registered Trade Unions
Definition : Sec-2(h) : Trade Union means for the combination, whether temporary
or permanent, formed primarily for the purpose of regulating the relations between
workmen and employers or between workmen and workmen and 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 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.
Objectives of trade unions :
1. Ensure Security of Workers : This involves continued employment of workers,

prevent retrenchment, lay off or lock-outs. Restrict application of fire or dismissal
or discharge and VRS.
2. Obtain Better Economic Returns : This involves wages hike at periodic intervals,
bonus at higher rate, other admissible allowances, subsidized canteen and
transport facilities.
3. Secure Power To Influence Management : This involves workers participation in
management, decision making, role of union in policy decisions affecting workers,
and staff members.
4. Secure Power To Influence Government : This involves influence on government
to pass labour legislation which improves working conditions, safety, welfare,
security and retirement benefits of workers and their dependents, seek redressal of
grievances as and when needed.
Functions of a Trade Union : The important basic functions of unions listed by National
Commission on labour are:
(i) To secure fair wages to workers.
(ii) To safeguard security of tenure and improve conditions of service.
(iii) To enlarge opportunities for promotion and training.
(iv) To improve working and living conditions.
(v) To provide for educational, cultural and recreational facilities.
(vi) To co-operate in and facilitate technological advance by broadening the
understanding of workers on its underlying issues.
(vii) To promote identity of interests of workers with their industry.
(viii) To offer responsive co-operation in improving levels of production and
productivity, discipline and high standards of quality and
(ix) To promote individual and collective welfare.
Registration of trade union :
Registration of a trade union is not compulsory but is desirable since a registered
trade union enjoys certain rights and privileges under the Act
Any 7 or more members of a trade union may apply subscribing to the rules of the
Trade Union for Registration of the said Union. Following requirements shall be
fulfilled,
a) Minimum Number of members - For registration, the minimum members
should be 100 or 10% of workmen of establishment, whichever is less
b) Applicants ceasing to be member The application for registration will not be
invalid if less than 50% of members applying for its registration have ceased to
be the member of the concerned trade union.
c) Statement to Registrar - following information should be given to the

Registrar of Trade Unions along with the application:
Name, occupation and address of members making application
Title, name, age, occupation and addresses of office bearers of trade union
Place of work of the Workmen (in case of trade union of workmen)
Name of Trade Union and address of its head office.
The registrar on being satisfied that all requirements of the Trade Unions Act in
respect of registration have been fulfilled, register a particular trade union and
issue a Certificate of Registration to the concerned trade union.
Certificate of Registration : The Registrar registering a Trade Union shall issue a
certificate of registration in the prescribed form, which shall be conclusive that the
Trade Union has been duly registered under this Act.
Cancellation of Registration : A certificate of registration of a Trade Union may be
withdrawn or canceled by the Registrar
(a) On the application of the Trade Union to be verified in such manner as may be
prescribed, or
(b) If the Registrar is satisfied that the certificate has been obtained by fraud or
mistake, or that the Trade Union has ceased to exist or has willfully and after
notice from the Registrar contravened any provision of this Act or allowed any rule
to continue in force which is inconsistent with any such provision, or has rescinded
any rule providing for any matter, provision for which is required by Section 6:
(c) If it ceases to have the requisite number of members, or
Provided that not less than two months previous notice in writing specifying the
ground on which it is proposed to withdraw or cancel the certificate shall be given by
the Registrar to the Trade Union before the certificate is withdrawn or canceled
otherwise than on the application of the Trade Union.
Legal Status of a Registered Trade Union :
A registered trade union is a body corporate with perpetual succession and a
common seal.
It can acquire, hold sell or transfer any movable or immovable property and can be
a party to contracts.
It can sue and be sued in its own name
No civil suit or other legal proceeding can be initiated against a registered trade
union in respect of any act done in furtherance of a trade dispute under certain
conditions.
No agreement between the members of a registered trade union shall be void or
voidable merely on the ground that any of its objects is in restraint of trade.
Appointment of Office Bearers :
At least 50% of the office bearers of a union should be actually engaged or

employed in the industry with which the trade union is concerned, and the
remaining 50% or less can be outsiders such as Lawyers, politicians, social workers
etc.
To be appointed as an office bearer or executive of a registered trade union, a
person must have
a. attained the age of 18 years; and
b. not been convicted of any affiance involving moral turpitude and sentenced to
imprisonment, or a period of at least 5 years has elapsed since his release.
Criminal conspiracy in trade disputes : No officers or member of a registered Trade
union shall be liable to punishment under sub-section (2) of Section 120-B of 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 as is specified in Section 15
unless the agreement is an agreement to commit an offence.
Immunity from civil suit to certain cases :
(1) No suit or other legal proceeding shall be maintainable in any Civil Court
against any registered Trade Union or any [Note: Inserted by Act No.51 of 1970] or
member thereof in respect of any act done in contemplation or furtherance of a
trade 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 in interference with the trade, business or employment of some other
person or with the right of some other person to dispose of his capital 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 a trade dispute by and 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.
Membership of Trade Union : Minors who have attained 15 years of age can become
members of a trade union subject to the rules of the concerned Trade Union.
Disqualification for becoming Office bearers of Trade Union : No member of a Trade
Union can become Office bearer if he/she:
Has not attained 18 years of age,
Convicted by a court for offence involving moral turpitude and sent for
imprisonment and 5 years have elapsed since his/her release.
Registered office : All correspondence to a Trade union may be addressed to its
registered office. Any change in the above has to be informed to the Registrar within
14 days of such change.
Change of Name :
A registered trade union may change its name with the consent of at least 2/3rds
of the total numbers of its members.
Notice of change of name in writing, signed by the secretary and 7 members of the
union, should be sent to the registrar.
the Registrar shall register the change in name if he is satisfied that the proposed
name is not identical with the name of any other existing union and the
requirements with respect to change of name have been complied with.
The change of name shall not affect any rights and obligations of the trade union or
render any legal proceeding by or against the trade union as defective.
Amalgamation of Trade Union : Any two or more registered Trade Unions may
become amalgamated together as one Trade Union with or without dissolution or
division of the funds of such Trade Unions or either or any of them, provided that the
votes of at least one-half of the members of each or every such Trade Union entitled
to vote are recorded, and that at least sixty percent of the votes recorded are in
favour of the proposal.
Dissolution :
(1) When a registered Trade Union is dissolved, notice for 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 shall be registered by him if he is
satisfied the dissolution has been effected in accordance with the rules of the Trade
Union, and the dissolution shall have effect from the date of such regulation.
(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 and funds of the Trade
Union on dissolution, the Registrar shall divide the funds amongst the member in
such manner as may be prescribed.
General Fund : The Registered Trade Union may use the general fund for the following
purposes:
Salaries/allowances to office bearers
Expenses for administration of trade union
Conduct of Trade disputes on behalf of Trade Union
Provision for education, social or religious beliefs of members or to the dependents
of deceased members, etc.
Political Fund : a separate political fund may be constituted by a trade Union for the
following purposes:
Payment of expenses for a candidate for election to a legislative body
Holding of any meeting or distribution of any literature in support of such candidate
Maintenance of any person elected to legislative body
Note : The membership to such a political fund should be
a) Voluntary for the Members

b) Should not be disentitle a non-member of such fund to any benefits of the
trade union.
Returns : A general statement, audited in the prescribed manner, may be sent to the
Registrar. The statement shall be prepared in such form and shall comprise such
particulars as may be prescribed.
Penalties :
Failure of office bearers to give notice or statement as required under Act : Fine of
Rs 5/-
Any person making willful False entry or statement, alteration of rules : Fine which
may extend upto Rs 5/-
Go To CONTENTS
Explain rights and privileges of the registered trade union. (Nov-2011)

Explain in detail : Privileges of the registered trade union under the Trade Union Act
1926. (Dec-2016)
ANSWER :
Rights and Priviledges of a registered Trade Union :
1. As per section 13, upon registration, a trade union becomes a legal entity and as
a consequence, it gets perpetual succession and a corporate seal, it can acquire
and hold movable and immovable property, contract through agents, and can sue
and get sued.
2. Under section 15 a registered trade union has a right to establish a general fund.
3. Under section 16, a registered trade union has a right to establish a political
fund. Subscription to this fund is not necessary for a member.
4. Under section 17, 18, and 19 a registered trade union gets immunity in certain
criminal, civil, and contractual proceedings.
5. Under section 24, trade unions have the right to amalgamate.
6. Under section 28-F, the executive of a registered trade union has a right to
negotiate with the employer the matters of employment or non-employment or
the terms of employment or the condition of labor of all or any of the members of
the trade union and the employer shall receive and send replies to letters and grant
interviews to such body regarding such matters. It further provides that the
executive is entitled to post notices of the trade union meant for its members at
any premises where they are employed and that the employer shall provide
reasonable facilities for that.

Liabilities of a registered Trade Union : A registered trade union must follow the
provisions of the Trade Unions Act 1926. In particular, the following are some
restrictions in a registered trade union :
1. A Trade Union cannot spend the funds on arbitrary things that the office bearers
want. It can spend funds only on the activities specified in Section 15. These
include :
salaries of the office bearers.
expenses required for the administration of the trade union
compensation to workers due to loss arise of any trade dispute.
welfare activities of the workers including housing, clothing, or any such
activity.
benefits to the workers or their dependents in the case of unemployment,
disability, or death.
publishing material for creating awareness in the workers.
legal expenses required for defending or bringing a suit.
education of workers or their dependents.
expenses for medical treatment of workers.
taking insurance policies for workers.
Illustration : Mario Raposo vs H M Bhandarkar and others 1994 - Office bearers
of a trade union invested the money from general fund into shares of UTI. This
was held invalid because it is a speculative investment.
2. A trade union cannot force members to subscribe to political fund under section
16.
3. Under section 20 a trade union must make available all its record books of
accounts and list of membership for inspection upon request of any member or his
representative.
4. Section 21 allows minors more than 15 yrs of age to be members of a trade
union. However, such minors cannot hold office.
5. Under section 21-A, a trade union cannot appoint a person who has been
convicted of a crime involving moral turpitude and has been imprisoned for 6
months or more within last 5 years.
6. As per section 22, at least half of the office bearers of a trade union of workers
of unorganized sector must be engaged or employed in an industry to which the
trade union is connected. Also, while a union has a right to remove any office
bearer, this power must be used judiciously and rules of natural justice must be
followed.
7. Under section 28, a general statement, audited in a prescribed manner, of all

income and expenses must be sent to the registrar every year.
Go To CONTENTS
Discuss the rights and duties of the office bearers of the union under the trade
union act 1926. (Nov-2012, Oct-2013, Nov-2014)
ANSWER :

THE RIGHTS OF OFFICERS OF APPROVED TRADE UNIONS :
(a) To collect sums payable by members to the union
(b) To put up or cause to be put up a notice-board on the premises of undertakings
in which its members are employed & affix notices thereon
(c) For prevention or settlement of an industrial dispute
(i) to hold discussions with the employees concerned who are members of the
union
(ii) to meet & discuss with an employer for redressing the grievances of its
members employed in the undertaking
(iii) to inspect, if necessary
(d) An approved union is entitled to appear before a Labour Court or Industrial
Court for the grant of legal aid at the expense of the State Government.
Go To CONTENTS
Immunities available to a registered Trade Union.

ANSWER :
Refer :

1. Section 17 of the Trade Unions Act confers immunity from liability in the case of
criminal conspiracy under section 120-B of IPC, committed by an office bearer or a
member. However, this immunity is partial in the sense that it is available only with
respect to the legal agreements created by the members for the furtherance of valid
objects of a trade union as described in section 15 of the act.
ie The immunity cannot be claimed for an act that is an offence. Registered Trade
Unions have certain rights to do in furtherance of their trade disputes such as

calling for strike, persuading members.
Illustration : In the case of West India Steel Company Ltd. vs Azeez 1990 Kerala, a
trade union leader obstructed work inside the factory for 5 hrs while protesting
against the deputation of a workman to work another section. It was held that
while in a factory, the worker must submit to the instructions given by his
superiors. A trade union leader has no immunity against disobeying the orders. A
trade union leader or any worker does not have any right by law to share
managerial responsibilities. A trade union can espouse the cause of workers
through legal ways but officials of a trade union cannot direct other workers
individually or in general about how to do their work. They do not have the right to
ask a worker to stop his work or otherwise obstruct the work of the establishment.
An employer may deal with a person causing obstruction in work effectively.
2. Section 18 of the Trade Unions Act confers immunity from civil proceedings in
certain cases to a trade union or its office bears or members.
In general, a person is liable in torts for inducing another person to breach his
contract of employment or for interfering with the trade or business of another.
However, a trade union, its officers, and its members are immune from this liability
provided that such an inducement is in contemplation or furtherance of a trade
dispute. Further, the inducement should be lawful. There is no immunity against
violence, threats, or any other illegal means.
Illustration :
In the case of P Mukundan and others vs Mohan Kandy Pavithran 1992 Kerala, it
was held that strike per se is not an actionable wrong. Further, it was held that
the trade union, its officers, and its members are immune against legal
proceedings linked with the strike of workmen by the provisions of section 18.
In the leading case of Rohtas Industries Staff Union vs State of Bihar AIR 1963,
it was held that employers do not have the right to claim damages against the
employee participating in an illegal strike and thereby causing loss of production
and business.
In the case of Simpson & Group Companies Workers & Staff Union vs Amco
Batteries Ltd 1992 Karn., it was held that physical obstruction of movement of
management officials, contractors, goods, or vehicles carrying raw materials, is
not a trade union right or a fundamental right under art 19. Immunity under
section 18 cannot be claimed for such activities. Right to picket is a very
intangible right and it extends only up to the right of free movement of others.
The methods of persuasion are limited to oral and visual and do not include
physical obstruction of vehicles or persons.
3. Section 19 of the Trade Unions Act : Enforceability of agreements - In India, an
agreement in restraint of trade is void as per section 25 of Indian Contract Act.
However, such an agreement between trade union members is neither void nor
voidable. It is important to note that this right is available only to registered trade
unions. An unregistered trade union must follow the principles of general contract law.
Go To CONTENTS
Module-4) Gujarat Industrial Relations Act (former BIR Act) & Collective
Bargaining :
4.1) Important definitions: Industry, Workman, Employee, Wage Board,
4.2) Classification of Unions : Primary Union, Qualified Union, Representative
Union
4.3) Rights, duties and privileges of the Representative Union
4.4) Notice of Change
4.5) Concept and importance of Principle of Collective Bargaining (This topic may
also fall in Module-1)
Go To Contents
Distinguish between Bombay Industrial Relations Act 1946 and Industrial Disputes Act
1947
State the aims and objects of the Bombay Industrial Relations Act 1946. (Nov-2011)
Discuss : Definitions : Industry, Workman, Employee, Wage Board.
Discuss under the provisions of the Bombay Industrial Relations Act 1946. (Nov-
2012)
Discuss the various authorities and its power under the Bombay Industrial Relations
Act 1946. (Nov-2012)
Explain in detail the various authorities and its power under the BIR act 1946. (Nov-
2011)
Explain in detail the provisions of Labour Courts and Industrial Courts
prescribed under the Gujarat (Mumbai) Industrial Relations Act 1946 (BIR Act) with
case laws. (Dec-2016)
State the kinds of unions and explain the provisions of registration of unions under
Gujarat industrial relations act (Former BIR Act 1946). (Nov-2014)
B.I.R. Act 1946. (Oct-2013)
Explain the concept of the wage board under the BIR act 1946 and discuss the
jurisdiction of such wage board. (Nov-2011)
Explain methods of fixation of minimum wages under the minimum wages act. (Nov-
2011)
Explain provisions of wages and deduction under the payment of wages act. (Nov-
2011)
Write short note : illegal change. (Nov-2012, Nov-2014)
Discuss : Notice of Change.

Explain in detail the provisions of Notice of Change under the Gujarat (Mumbai)
Industrial Relations Act 1946 with case laws. (Dec-2016)
Explain with Case laws the provisions of the safety and health under the factories
act 1948. (Nov-2011)
Explain in detail the various benefits available under the Employees State
Insurance act 1946. (Nov-2011)
Explain object of the payment of the gratuity under the Payment of Gratuity Act.
(Nov-2011)
Explain permanent and Temporary disabilities under the workmen
compensation act. (Nov-2011)
Discuss : Workers participation in Management.
Discuss : Principle of collective bargaining and joint management Council. (Nov-
2012)
Discuss the concept of "Collective Bargaining in detail under B.I.R. Act 1946. (Oct-
2013)
Discuss the concept of Collective bargaining in detail under Gujarat industrial
relations act (former BIR act 1946). (Nov-2014)
Explain in detail the concept of collective bargaining with case laws under the Gujarat
(Mumbai) Industrial Relations Act 1946. (Dec-2016)
Go To Contents
MODULE-4 ANSWERS :
Distinguish between Bombay Industrial Relations Act 1946 and Industrial Disputes Act
1947
ANSWER :
https://www.scribd.com/doc/37194908/bombay-industrial-regulation-act-1946
One more difference : To seek any change in the existing service conditions
Workmen have to raise a charter of demands under the Industrial disputes Act,
Workmen have to issue notice of change under the BIR Act.
Go To Contents
State the aims and objects of the Bombay Industrial Relations Act 1946. (Nov-2011)
Discuss : Definitions : Industry, Workman, Employee, Wage Board.
Discuss under the provisions of the Bombay Industrial Relations Act 1946. (Nov-
2012)
Discuss the various authorities and its power under the Bombay Industrial Relations
Act 1946. (Nov-2012)
Explain in detail the various authorities and its power under the BIR act 1946. (Nov-
2011)
Explain in detail the provisions of Labour Courts and Industrial Courts
prescribed under the Gujarat (Mumbai) Industrial Relations Act 1946 (BIR Act) with
case laws. (Dec-2016)
ANSWER :
Refer :
https://www.scribd.com/doc/50717022/THE-BOMBAY-INDUSTRIAL-RELATIONS-
ACT-1946
Intro :
The Government of Bombay enacted the Bombay Industrial Disputes Act, 1938,
which came into force with effect from 1/6/1939.
Subsequently, The Bombay Industrial Relations Act, 1947, was brought on the
statute book and was enforced in 1947, replacing
The Bombay Industrial Disputes Act, 1938.
Shri G.L.Nanda, who was then the Labour Minister for Bombay Province, was the
pioneer of this Act.
The Act is based on three Gandhian principles, namely, (i) negotiations, (ii)
conciliations, and (iii) arbitrations.
Aims And Object Of The B.I.R. Act : The principle objectives of the Act may be stated
as below :
1. to regulate relations between employers and employees and to promote
harmonious relations between them,
2. To provide a machinery for settlement of disputes by adjudication or arbitration
on considerations of justice, equity and good conscience.
3. To promote collective bargaining.
APPLICABILITY :
1. The Act extends to the state of Maharashtra and Gujarat and
2. The Act is applicable only to certain industries like silk, cotton, hosiery, woolen,
textile processing, sugar, co-operative banking, generation and supply of electricity
and transport (BEST Undertaking).
IMPORTANT DEFINITIONS :
1. Employees : Employees means any person employed to do any skilled or
unskilled work for hire or reward in any industries, and includes a person employed
by a contractor but does not include,
- person employed with armed forces, police, prison
- person employed primarily in a managerial, administrative, supervisory or
technical capacity drawing basic pay excluding allowances exceeding Rs. 1000
per month.
2. Industry : Industry means
(a) any business, trade, manufacture or undertaking or calling of employees.
(b) any calling, service, employment, handicraft, or, occupation or avocation
of employees;
Industry includes (i)agriculture and agriculture operations; (ii) any branch of
industries or group of industries which the (State) Government may be
notification of the Official Gazette declare to be an industry for the purposes of
this Act.
3. Workman :

4. Wage Board :

Authorities Under The B.I.R. Act :
1. Commissioner of Labour :
2. Registrar, Additional Registrars, and Assistant Registrars of Unions :
3. Chief Conciliator and Conciliators :
4. Board of Conciliation :
5. Labour Officer :
6. Labour Court :
7. Industrial court :
8. Court of enquiry :
1. Commissioner of Labour :
Definition : "Commissioner of Labour" means an officer appointed by the [State]
Government for the time being to be the Commissioner of the Labour; and in
respect of any of the powers and duties of the Commissioner of Labour that may
be conferred and imposed on any person, includes such person;
The duty of the Commissioner of Labour is to mediate and settle the disputes
under this Act. He is also empowered to settle the standing orders, regulate the
relation between the employer and employees with regard to the industries
matters.
2. Registrar, Additional Registrars, and Assistant Registrars of Unions :
Definition : "Registrar" means a person for the time being appointed to be the
Registrar of Unions under this Act; and includes [an Additional Registrar and] in
respect of such powers and duties of the Registrar as may be conferred and
imposed on him, an Assistant Registrar of Unions;
The additional registrar is not subordinate to the registrar. The function of the
registrar is to make enquiry as he deems fit and recognize for the purpose of
this act any concern in any industry to be an undertaking and any section of an
undertaking to be an occupation.
Further, he is to maintain registers of union and list of approved unions.
He is also empowered to cancel registrations of any union.
The Deputy Commissioner of Labour (Admin) Bombay, is notified as Registrar of
Trade Unions and Chief Conciliator for the purpose of this Act for the whole of
the state of Maharashtra.
3. Chief Conciliator and Conciliators :
The State Government shall appoint a person to be the Chief Conciliator. It may
also appoint one of more Chief Conciliators.
A conciliator is a public servant within the meaning of the Indian Penal Code. He
has to hold proceedings in the prescribed manner. He has power to call for the
inspect documents. The conciliators function is to mediate and Endeavour to
settle the dispute between the employer and employees.
4. Board of Conciliation :
The State Government may by notification constitute a Board of Conciliation and
when an industrial dispute arises for promoting the settlement of such dispute.
The board consists of a Chairman who is an independent person and an even
number of members representing the interests of employer and employees.
Its powers are wider than those of conciliators.
5. Labour Officer :
Definition : "Labour Officer" means an officer appointed to perform the duties of
a Labour Officer under this Act; and includes in respect of such powers and
duties of the Labour Officer as may be conferred and imposed on him, as
Assistant Labour Officer;
The State Government may by notification in the Official Gazette appoint Labour
Officers and Assistant Labour Officers for any local area or areas.
The Labour Officers duty is to:
1. watch the interest of employees and promote harmonious relations
between employer and employees;
2. investigate the grievances of employees and represent to employers such

grievances and make recommendations to them in consultation with the
employees concerned for their redressal;
3. Report to the State Government the existence of any industrial disputes of
which no notice of change has been given together with the names of the
parties thereto.
Labour Officer is also entitled to appear in any proceedings under this Act.
However, he will not appear in any proceedings in which the employees are
represented by a representative union, and if there is an approved union for an
industry in local area, then he can only appear only after consultation with the
union.
6. Labour Court :
Definition : "Labour Court" means a Labour Court constituted under section 9 of
BIR Act;
The labour court has powers to decide disputes regarding :
1. the propriety or legality of an order passed by an employer acting or
purporting to act under the standing orders,
2. the application and interpretation of standing orders,
3.Any changes made by an employer or desired by employees in respect or
an industrial matter specified in Schedule III (expect item No. 5 thereof)
and matters arising out of such change.
It can also try offences punishable under this Act. A Lobour Court may refer any
question of law arising in any proceeding before it to the Industrial Court for a
decision.
The State Government may constitute one or more Labour Court and appoint
persons having the prescribed qualifications to preside over such courts.
7. Industrial court :
Definition : "industrial Court" means the Court of Industrial Arbitration
constituted under section 10 of BIR Act;
The state government shall constitute a court of industrial arbitration.
The industrial court shall consist of 3 or more members one of whom shall be its
president.
They must not be connected with industrial dispute
Every member of the industrial court shall be a person who is or has been a
judge of high court or is eligible for being appointed as a judge of such court.
The industrial court acts as a court of appeal against the order of the labour
court. A copy of the order passed by industrial court shall be passed to the labor
court.
Powers of industrial court :

It has powers of the HC under the CrPC 1989
To review both the findings of fact and law arrived at by labour court.
Superintendence over all labour court and can call for returns.
It can transfer proceedings from one court to another.
It has also to decide disputes regarding any changes desired by any employee
or representative union in respect of industrial matters
The law declared by the industrial court is recognised as binding and is to be
followed in all proceedings under this act.
8. Court of enquiry :
Definition : "Court of Enquiry" means a Court constituted under section 100;
Sec-100 :
(1) The state government may constitute the court of enquiry consisting of
such number of person as it may think.
(2) A Court of Enquiry shall inquire into such industrial matters, as may be
referred to it by the State Government, including any matter pertaining to
conditions of work or relations between employers and employees in any
industry, and aspect of any industrial dispute.
(3) Every proceeding before a Court of Enquiry shall be deemed to be a
judicial proceeding within the meaning of sections 192, 193 and 228 of the
Indian Penal Code.
(4) A Court of Enquiry may refer to the Industrial Court any point of law
arising in any proceeding before it under this Act. Any finding of the Court of
Enquiry in such proceedings shall be in accordance with the decision of the
Industrial Court.
Go To Contents
Gujarat industrial relations act (Former BIR Act 1946). (Nov-2014)
B.I.R. Act 1946. (Oct-2013)
ANSWER :
Refer :
read from page-111 of the boook
Kinds of Union :

Registration of Unions :
<discussed elsewhere in this doc>
Go To Contents
Explain the concept of the wage board under the BIR act 1946 and discuss the
jurisdiction of such wage board. (Nov-2011)
ANSWER :
Refer :
Not good ---> Reproduced sections-86A to 86KK from bare act BIR Act

86-A. Wage Boards.-The [State] Government may, by notification in the Official
Gazette, constitute for one or more industries a Wage Board for the State.
86-B. Constitution of Wage Board.- The Wage Board shall consist of an equal number
of persons nominated by the [State] Government to represent employers and
employees and such number of independent persons as the [State] Government
nominates. The Chairman shall be appointed by the [State] Government.
Explanation.-For the purposes of this section a person shall be deemed to be an
independent person if he is unconnected with the industrial matter which may be
referred to it under section 86C [or 86CC] and the industry directly affected by the
industrial matter.
86-C. Reference to Wage Boards.-
(1) Notwithstanding anything contained in any other provision of this Act, the
[State] Government may, by an order notified in the Official Gazette, refer to a
Wage Board for decision on any industrial matter or industrial dispute regarding
items numbered, 1, 2, 4, 9 and 10 in Schedule II, and such other industrial matters
or disputes as may be prescribed.
(2) The order of reference under sub-section (1) shall specify which employers and
employees (including representative of employees if any, and association of
employers, if any) shall be parties to the proceedings before the Wage Board.
86-CC. Reference to Wage Board by certain registered unions : Notwithstanding
anything contained in any other provision of this Act, [an employer or] a registered
union which is a representative of employees and which is also an approved union
may refer any industrial dispute of the nature mentioned in sub- section (1) of section
86C other than a dispute in respect of bonus, to a Wage Board for decisions :
Provided that no such dispute shall be referred to the Wage Board by the union,-
(i) after two months from the date of the completion of the proceedings
before the Conciliator;
(ii) where the registered union or the employer, as the case may be, has
offered in writing before the Conciliator to submit the dispute to arbitration
under this Act and the employer or the Union, as the case may be, has not
agreed to do so;]
(iii) unless the dispute is first submitted to the Conciliator and the conciliation
proceedings are completed or the Conciliator certifies that the dispute is not
capable of being settled by conciliation].
Effect of reference on proceedings before other forums, like Conciliator, Board,
Labour Court or the Industrial Court or a Court of Enquiry :
86-D. Proceedings not to be commenced or continued before Conciliator, Board, etc :
Notwithstanding anything contained in any other provision of this Act, where an
industrial matter or industrial dispute is referred for decision to a Wage Board under
section 86C, [or 86CC] no proceedings regarding the same shall be commenced
before a Conciliator, Board, Labour Court or the Industrial Court or a Court of
Enquiry; and any such proceedings already commenced shall be forthwith stayed on
the making of the reference.
86-E. Procedure before Wage Boards.- A Wage Board shall, in respect of an
industrial matter or industrial dispute referred to it for decision, subject to any rules
of procedure which may be prescribed, follow the same procedure as the Industrial
Court in respect of arbitration proceedings before it.
In particular the rules of procedure which may be prescribed in this behalf may
provide for the formation of committees with co-option of such other persons from
the local areas as the Wage Board would for the purpose of any reference think fit
to appoint to the committees and the exercise by each such committee of the
jurisdiction and powers vested in the Wage Board in respect of such Industrial
matters or industrial disputes as are referred by the Wage Board to the Committee.
86-EE. Coming into operation of decision of Wage Board :- Save as provided in
section 86-F, a decision of the Wage Board shall come into operation on the date
specified in the decision and where no such date is specified therein on the date on
which it is published in the prescribed manner.]
86-F. Procedure to give effect to decision of Wage Board affecting [State] Gov :-
(1) Where the decision of a Wage Board affects an industry conducted or carried on
by a department of the [State] Government, the decision shall not be effective
except in accordance with the procedure set out in sub-sections (2) and (3).
(2) The Wage Board shall, as soon as practicable on the conclusion of its
proceedings, submit its decision to the [State] Government, and the [State]
Government shall by order in writing declare the decision to be binding;

Provided that where in the opinion of the [State] Government it would be
inexpedient on public grounds to give effect to the whole or any part of the
decision the [State] Government shall on the first available opportunity lay the
decision together with the statement of its reasons for not making a declaration
as aforesaid before the Legislative Assembly of the [State] and shall, as soon as
may be, cause to be moved therein a resolution for the consideration of the
decision; and the Legislative Assembly may by its resolution confirm, modify or
reject the decision.
(3) On the passing of a resolution under the proviso to sub- section (2), unless the
decision is rejected thereby, the [State] Government shall, by order in writing,
declare the decision as confirmed or modified by the resolution, as the case may
be, to be binding.
(4) A decision declared to be binding under sub-section (2) or (3) shall came into
operation on such date as may be specified in the order of declaration made by the
[State] Government]
86-G. Appeals :-
(1) An appeal shall lie to the Industrial Court against an order or decision of a
Wage Board (including reviewed order or decision), save in cases [where the order
is made or decision is given by the Board unanimously and in cases] referred to in
section 86F.
(2) Such appeal shall be made within six weeks from the date of the order of
decision.
86-H. Parties on whom order or decision is binding :- Subject to the provisions of
section 86F and 86G, an order or decision of a Wage Board shall be binding on --
(a) all parties to the industrial dispute;
(b) all parties who were summoned to appear as parties to the proceeding whether
they appeared or not;
(c) all the employers and employees in the concern or occupation or industry in the
local area according as the order or reference under sub-section (1) of section 86C
directs irrespective of whether they were such employers or employees at the time
of the making or giving of such order or decision, or whether they became such
afterwards.
86-I. Review of order or decision by Wage Board :-
(1) An employer or an employee or an association or a group of employers or a
registered union or body of employees may apply to a Wage Board for review of an
order or decision of the Wage Board and the Wage Board may for any sufficient
reason and upon hearing all the parties review the order or decision:
Provided that no such application shall lie until a period of one year has elapsed
from the date of the making or giving of the order or decision or the last review
thereof, as the case may be:
Provided further that no such application by an employer or an association or a
group of employers shall lie unless the employer, association or group, as the
case may be, employs not less than fifteen per cent of the employees whom the
order or decision binds:
Provided also that no such application by an employee or a body of employees,
shall lie unless the employee or body of employees represents not less than
fifteen per cent of the employees whom the order or decision binds.
(2) Where the [State] Government makes an application in this behalf, the Wage
Board may at any time review its order or decision for any sufficient reason and
upon hearing all the parties.
86-J. Superintendence by Industrial Court :- The Industrial Court shall have
superintendence over all Wage Boards and may-
(a) call for returns from such Boards;
(b) make and issue general rules, and lay down forms for regulating the practice
and procedure of such Boards in matters not expressly provided for by or under
this Act, and in particular, for securing expeditious disposal of cases;
(c) lay down the forms in which books, entries and accounts shall be kept by
officers of Wage Boards;
(d) settle fees for processes issued by Wage Boards.
86-K. Order or decision not to be called in question :-
(1) Save as otherwise provided by this Act, no order or decision of a Wage Board
shall be called in question in any proceeding in any civil or criminal court.
(2) The appellate order or decision of the Industrial Court under section 86G shall
have the same force as the original order or decision of the Wage Board which it
replaces except that there shall be no further appeal against it.
86-KK. Transfer of certain disputes to Wage Boards :- The [State] Government may,
on the recommendation of the Industrial Court, by an order notified in the Official
Gazette, direct that any industrial matter, or industrial dispute of the nature
mentioned in section 86C which has been referred to the Industrial Court under [sub-
section 6) of section 58 or sections 66, 72, 73 or 73A] and is pending before it at any
time shall be transferred to a Wage Board for disposal or for further disposal from the
stage reached before the Industrial Court and thereupon all the provisions of this Act
shall apply to that dispute as if it were referred to the Wage Board for decision under
section 86C].
Go To Contents
Explain methods of fixation of minimum wages under the minimum wages act.
(Nov-2011)
ANSWER :
Refer :

Intro :
The Minimum Wages act aims at making provision for statutory fixation of
Minimum rates of wages in a number of industries. This act aims to prevent
exploitation of labour by payment of wages which are necessary for normal and
reasonable need of a workmen and his family.
Applicability of Act : This Act is applicable to all employments described in the Act
i.e. minimum Wages have to be paid to all the employees of the employments
described in the Act
Definition : "Wages" means all remuneration capable of being expressed in terms of
money which would if the terms of the contract of employment express or implied
were fulfilled be payable to a person employed in respect of his employment or of
work done in such employment and includes house rent allowance but does not
include -
(i) the value of -
(a) any house accommodation supply of light water medical attendance or
(b) any other amenity or any service excluded by general or special order of the
appropriate government;
(ii) any contribution paid by the employer to any person fund or provident fund or
under any scheme of social insurance;
(iii) any traveling allowance or the value of any traveling concession;
(iv) any sum paid to the person employed to defray special expenses entailed on
him by the nature of his employment; or
(v) any gratuity payable on discharge;
Fixing Minimum Rates of Wages :
Appropriate Government shall fix minimum rates of wages for all employments
specified in the Schedule of the Act
Review of Minimum wages The appropriate Government shall review the
minimum wages at such intervals as it may deem fit. However, such a review shall
be done before Five years from date of fixing minimum wages.
Wage period : The Minimum wages may be fixed for different wage periods like
By the Hour,
By the Day,
By the month, or
By other larger wage period
Exceptions : Different Minimum Wages may be fixed by the Government for :
Different employments (specified in the schedule)
Different classes (e.g. skilled, unskilled, semis skilled, etc.) of work in the same
employment
Adults, adolescents, children and apprentices
Different localities.
What is Minimum rates of Wages : Minimum rates of Wagesfixed by the Government
may consist of
Basic + Special Allowance (which varies with the cost of living index)
Basic + Cash value of concessional supply of materials like food, clothes, etc
An All inclusive rate which includes Basic + Cost of Living Allowance + Cash value
of concessional supply of materials
Fixing minimum Rates of Wages : For fixing Minimum rates of wages, the Government
may :
Publish its proposals in the official gazette asking from comments from the affected
parties, Or.
Constitute committees/sub-committees for the purpose. The committees/sub-
committees and advisory boards constituted by the Government consist of equal
number of members of :
Employers,
Employees and
Independent persons
Wages in Cash : The wages have to be paid in Cash Only. However, permission can
be taken from the government where payment of wages in kind when the same is as
per custom or concessional supply of materials is made to the employees
Deductions from Minimum Wages : deductions from Minimum Wages like PF, ESI,
Advances , etc (as mentioned in Payment of Wages Act 1936) are permitted.
Wages to workman who works less than normal working day : in such cases Full
Wages for normal days work have to be paid to workman. However, a workman is
not entitled to wages for a full normal working day when he is unwilling to work even
though work is made available by the employer.
Penalties :
Contravention of Minimum Wages Act by employer : Fine which may extend upto
Rs 500/-
Payment of less than Minimum wages to employee : Imprisonment which may
extend upto 6 Months or fine which may extend upto Rs 500/- or Both
Go To Contents
Explain provisions of wages and deduction under the payment of wages act. (Nov-
2011)
ANSWER :
http://www.netlawman.co.in/ia/payment-wages-act-1936
http://www.isspa.org/uploads/laws/pdfs/15_pdf.pdf
Object of the payment of Wages Act : The main object of the Act is to regulate the
payment of wages of certain classes of employed persons, avoid unnecessary delay in
the payment of wages and to prevent unauthorised deductions from the wages.
Purpose of the Act : The main objective of the Act is to avoid unnecessary delay in the
payment of wages and to prevent unauthorized deductions from the wages and
arbitrary fines. The State Government may by notification extend the provisions to
any class of persons employed in any establishment or class of establishment. The
benefit of the Act prescribes for the regular and timely payment of wages .
Applicability of Act :
Factories, industrial Establishments, Tramway service or motor transport service,
Air transport service, Dock, Wharf or Jetty, Inland vessel, Mine, quarry or oil-field
Plantation, Workshop, construction activities or other establishment etc.
In the state of Maharashtra the Act is extended to Shops & commercial
establishments.
Employer's duty :
Employer's required to display the abstracts of the Act in his factory or
establishment. Every employer must display in his factory or establishment a notice
containing the abstracts of the Act and the rules made thereunder in English and
also in the language understood by the majority or the persons.
Coverage of Employees : The employees drawing average wage upto Rs.10,000/-
p.m.
Time of payment of wages : The wages of every person employed be paid :
When less than 1000 persons are employed shall be paid before the expiry of the 7
th day of the following month.
When more than 1000 workers, before the expiry of the 10 th day of the following
month.
Mode of Payment of Wages :
All wages shall be paid in current coins or currency notes or in both.
After obtaining the authorization, either by cheque or by crediting the wages in
employees bank Account
Wages exceeding Rs.3000/- to be paid by cheque/through bank (Applicable in
Maharashtra only)
Fines as prescribed : (Sec.8) : The provisions of the Act regarding the imposition of
fines on the employed person are as follows :
The employer must exhibit on his premises a list of acts or omissions for which
fines can be imposed, Before imposing a fine on an employed person he must be
given an opportunity of showing cause against the fine, The amount of fine must
not exceed 3 percent of the wages, A fine cannot be imposed on an employed
person who is under the age of 15 years, A fine cannot be recovered by
installments or after 90 days from the day of the act or omission for which it is
imposed, The moneys realized from fines must be applied to purposes beneficial to
employed persons.
Subsection 8(3), 10(1-A) & Rule 15} deals with Any person desiring to impose a
fine on an employed person or to make a deduction for damage or loss shall
explain personally or in writing to the said person the act or omission, or damage
or loss in respect of which the fine or deduction is proposed to be imposed, and the
amount of fine or deduction, which it is proposed to impose, and shall hear his
explanation in the presence of at least one other person, or obtain it in writing.
Deduction from wages :
Deductions such as, fine, deduction for amenities and services supplied by the
employer, advances paid, over payment of wages, loan, granted for house-building
or other purposes, income tax payable, in pursuance of the order of the Court, PF
contributions, cooperative societies, premium for Life Insurance, contribution to
any fund constituted by employer or a trade union, recovery of losses, ESI
contributions etc. can be made from the wages, in accordance with Section 7.
Maximum Deductions :
The maximum permissible deductions is 50% of the wages
In the event of deduction include payment to co-operative societies, the maximum
permissible deduction is 75% of the wages.
The procedure to recover wrongful deductions :
The procedure to employ a person has to follow for claiming deducted or delayed
wages. If contrary to the provisions of the Act any deduction has been made from
the wages of an employed person or any payment of wages has been delayed, he
has to make an application for claiming the same to the Authority appointed under
the Act. Such application can be made by the employed person himself or a legal
practitioner or an official of a registered trade union. Such application has to be
made within a period of 12 months from the date on which the date on which the
deduction from the wages was made or from the date on which the payment of the
wages was due to be made.
Payment of subsistence allowance :
There is a competent Authority to entertain and decide an application for payment
of subsistence allowance. The subsistence allowance payable to an employee
placed under suspension pending Departmental Enquiry is covered within the
definition of wages given under Section 2(6) of the Act and, therefore, the
Authority is competent to entertain and decide an application for payment of
subsistence allowance.
Authority under the Act :
The Authority under the Payment of Wages Act is a Court of summary jurisdiction
having powers to deal with the simple matter of delay in payment of wages or
deduction from wages. It is not within the competence of the Authority to decide
the question of the status of an employed person which matter is a complicated
question of law as also of fact.
Section 23 : Contracting out : Any contract or agreement, whether made before or
after the commencement of this Act, whereby an employed person relinquishes
any right conferred by this Act shall be null and void in so far as it purports to deprive
him of such right.
ie IF such agreement is beneficial and advantageous to the employees it is not
null and void under Section 23 of the Act.
Penal Provision :
Penalties for breach of provisions are from Rs.200/- to Rs.1000/-.
Repeat offences attract 1 month to 6 months imprisonment and fine from Rs.500/-
to Rs.3000/-
Delayed wage payments attract penalty f Rs.100/- per day
Conclusion :
The Payment wages act is a regulation drawn up to protect the employees rights
from being infringed by the employer. The employee should be paid on time and
should not be harassed against anything during the employment. It has given a lot
of protections to employees and will continue to do so in the future as well.
Go To Contents
Write short note : illegal change. (Nov-2012, Nov-2014)

Discuss : Notice of Change.
Explain in detail the provisions of Notice of Change under the Gujarat (Mumbai)
Industrial Relations Act 1946 with case laws. (Dec-2016)
ANSWER :
Refer :
bare act Bombay Industrial Relations Act, 1946
Bombay Industrial Relations Act : CHAPTER VIII : Changes :
SECTION 42: NOTICE OF CHANGE :
(1) Any employer intending to effect any change in respect of an industrial matter
specified in Schedule II shall give notice of such intention in the prescribed "form
K" to the representative of employees.
He shall send a copy of such notice to the Chief Conciliator, the Conciliator, the
Registrar, the Labour Officer
He shall also affix copy of such notice at a conspicuous place on the premises
(2) Any employee desiring a change in respect of an industrial matter not specified
in Schedule I or III give a notice in the prescribed "form L" to the employer
through the representative of employees, who shall forward a copy of the notice to
the Chief Conciliator, the Conciliator, the Registrar, the Labour Officer.
(3) When no settlement is arrived at in any conciliation proceeding in regard to any
industrial dispute which has arisen in consequence of a notice relating to any
change given under sub-section (1) or sub-section (2), no fresh notice shall be
given before the expiry of two months from the date of the completion of the
proceeding within the meaning of section 63.
If at any time after the expiry of the said period of two months, any employer or
employee again desires the same change, they shall give fresh notice in the
manner provided in sub- section (1) or (2), as the case may be.
(4) Any employee or a representative union desiring a change in respect of
(i) any order passed by the employer under standing orders, or
(ii) any industrial matter arising out of the application or interpretation of
standing orders, or
(iii) an industrial matter specified in Schedule III, [except item (5) thereof] shall
make an application to the Labour Court and as respects change desired in any
industrial matter specified in item 5 of Schedule III, to the Industrial Court]:
Provided that no such application shall lie unless the employee [or a
representative union] has in the prescribed manner approached the employer

with a request for the change and no agreement has been arrived at in respect
of the change within the prescribed period.
SECTION 44: AGREEMENT REGARDING CHANGE :
(1) If within seven days from the date of service of a notice under section 42, the
employers affected and the representative of the employees affected, an
agreement is arrived at in regard to the proposed change, a memorandum of such
agreement signed by the employer as well as by the representative of employees
shall he forwarded in the prescribed manner to the Chief Conciliator, the Registrar
and the Labour Officer
Provided that unless majority of the employees in the industry, or the whole
industry is deemed to be affected, the Labour Officer shall not enter into any
agreement under this sub section.
(2) On receipt of such memorandum of' agreement the Registrar shall enter the
same in a register maintained for the purpose unless on Inquiry he is satisfied that
the agreement was in contravention of any of the provisions of this Act or was the
result, of mistake, misrepresentation, fraud, undue influence, coercion or threat.
(3) An appeal shall lie to the Industrial Court against an order of the Registrar
refusing to register an agreement under sub- section (2). The provisions of section
20 shall apply to such appeal.
SECTION 44A : REGISTRATION OF AGREEMENTS UNDER SECTION 42(4) :
Where an agreement referred to in the proviso to sub-section (4) of section 42 is
arrived at, a memorandum of such agreement may he forwarded by either party to
the Registrar by registered post. The provision of sub-sections (2) and (3) of
section 44 shall then apply for registration of such agreement.
SECTION 44B: CERTAIN SETTLEMENTS DEEMED TO BE AGREEMENTS :
Where a settlement is arrived at within two months from the date of the completion
of any conciliation proceedings, such settlement shall he deemed to he an
agreement for the purposes of section 44 and the provisions of the said section 44
shall apply for registration of such agreement.]
SECTION 45: AGREEMENT TO COME INTO FORCE
An agreement registered under section 44 shall come into operation on the date
specified therein or if no date is so specified on its being recorded by the Registrar.
SECTION 46: ILLEGAL CHANGE
(1) No employer shall make any change in any standing order settled under
Chapter VII without following the procedure prescribed there for in this Act.
(2) No employer shall make any change in any industrial matter mentioned in
Schedule II before giving notice of the change as required by the provisions of sub-
section(1) of section 42
(i) within the period provided for in sub-section (1) of Section 44 unless an
agreement is arrived at;
(ii) where no agreement is arrived at before the completion of the conciliation
proceedings and during the period of ten days thereafter;
(iii) where no settlement is arrived at, before the date on which the award of the
arbitrator or the Industrial Court, or as the case may be, decision of the Wage
Board, comes into operation].
(3) No employer shall make any such change in contravention of the terms of a
settlement, effective award, registered agreement or effective order or decision of
a Wage Board.
(4) Any change made in contravention of the provisions of sub- section (1), (2) or
(3) shall he illegal.
(5) Failure to carry out the terms of any settlement, award, registered agreement
or effective order or decision of a Wage Board, a Labour Court or the Industrial
Court affecting Industrial matters shall be deemed to be all illegal change.
Go To Contents
Explain with Case laws the provisions of the safety and health under the factories
act 1948. (Nov-2011)
ANSWER :
Refer :
https://www.icsi.edu/docs/webmodules/Publications/7.%20Industrial,%20Labour
%20and%20General%20Laws.pdf
https://www.legalbites.in/factories-act1948/
http://www.tyagisk.com/factories-act-1948.html
Objective of the Factories Act 1948 :
The main object of the Factories Act, 1948 is to ensure adequate safety measures
and to promote the health, safety and welfare of the workers employed in factories.
To prevent haphazard growth of factories through the provisions related to the
approval of plans before the creation of a factory.
The Act also makes provisions regarding employment of women and young persons
(including children and adolescents), annual leave with wages etc.
Applicability of the Act :
Applicable to the whole of India including Jammu & Kashmir.
Covers all manufacturing processes and establishments falling within the definition
of factory.
Applicable to all factories using power and employing 10 or more workers, and if
not using power, employing 20 or more workers on any day of the preceding 12
months.
Important provisions the Act may be grouped as follows :
1. Health related
2. Safety related
3. Welfare related
1. Health related provisions : Chapter III of the Factories Act 1948 deals with the
following aspects.
Cleanliness : Section 11 ensures the cleanliness in the factory. It must be seen that
a factory is kept clean and it is free from effluvia arising from any drain, privy or
other nuisance.
floor should be thoroughly cleaned by washing with disinfectant or by some
other effective method [Section 11(1)(b)].
drainage shall be made and maintained
white wash or colour wash should be carried at least once in every period of 14
months;
All doors, windows and other framework which are of wooden or metallic shall be
kept painted or varnished at least once in every period of five years.
The dates on which such processes are carried out shall be entered in the
prescribed register.
If the State Government finds that a particular factory cannot comply with the
above requirements due to its nature of manufacturing process, it may exempt
the factory from the compliance of these provisions and suggest some
alternative method for keeping the factory clean. [Section 11(2)]
Disposal of waste and effluents : Every occupier of a factory shall make effective
arrangements for the treatment of wastes and effluents due to the manufacturing
process carried on in the factory so as to render them innocuous and for their
disposal. Such arrangements should be in accordance with the rules, if any, laid
down by the State Government.
Ventilation and temperature : Section 13 provides that every factory should make
suitable and effective provisions for securing and maintaining
(1) adequate ventilation by the circulation of fresh air; and
(2) such a temperature as will secure to the workers reasonable conditions of
comfort and prevent injury to health.
Measures to reduce excessively high temperature: To prevent excessive heating of
any workroom following measures shall be adopted :

(i) Walls and roofs shall be of such materials and so designed that reasonable
temperature does not exceed but kept as low as possible.
(ii) Where the nature of work carried on in the factory generates excessively
high temperature, following measures should be adopted to protect the workers:
(a) by separating such process from the workroom; or
(b) insulating the hot parts; or
(c) adopting any other effective method which will protect the workers.
The Chief Inspector is empowered to direct any factory to adopt such methods
which will reduce the excessively high temperature. In this regard, he can
specify the measures which in his opinion should be adopted. (Section 13)
Dust and fume : There are certain manufacturing processes like chemical, textile or
jute, etc., which generates lot of dust, fume or other impurities. It is injurious to
the health of workers employed in such manufacturing process.
Effective measures should be taken to prevent the inhalation and accumulation
of dust, fumes etc., in the work-rooms. Wherever necessary, an exhaust
appliances should be fitted, as far as possible, to the point of origin of dust
fumes or other impurities. Such point shall also be enclosed as far as possible.
Artificial humidification : Humidity means the presence of moisture in the air. In
certain industries like cotton, textile, cigarette, etc., higher degree of humidity is
required for carrying out the manufacturing process. For this purpose, humidity of
the air is artificially increased. This increase or decrease in humidity adversely
affects the health of workers.
Section 15(1) empowers the State Government to make rules (i) prescribing the
standards of humidification, (ii) regulating methods to be adopted for artificially
increasing the humidity of the air, (iii) directing prescribed tests for determining
the humidity of the air to be correctly carried out, and recorded, and (iv)
prescribing methods to be adopted for securing adequate ventilation and cooling
of the air in the work-room.
Overcrowding : Overcrowding in the work-room not only affect the workers in their
efficient discharge of duties but their health also. Section 16 has been enacted with
a view to provide sufficient air space to the workers.
(1) Section 16(1) prohibits the overcrowding in the work-rooms to the extent it
is injurious to the health of the workers.
(2) Apart from this general prohibition Section 16(2) lays down minimum
working space for each worker as 14.2 cubic metres of space per worker in
every workroom
Lighting : Section 17 of the Factories Act makes following provisions in this
respect :
every factory must provide and maintain sufficient and suitable lighting, natural,
artificial or both, in every part of the factory where workers are working or
passing;
(3) effective provisions should be made for the prevention of glare from a source
of light or by reflection from a smooth or polished surface
Drinking water : Section 18 makes following provisions with regard to drinking
water.
every factory should make effective arrangements for sufficient supply of
drinking water for all workers in the factory;
water should be wholesome, i.e., free from impurities;
water should be supplied at suitable points convenient for all workers;
Latrines and urinals : Every factory shall make suitable arrangement for the
provision of latrines and urinals for the workers. These points as stated below, are
subject to the provisions of Section 19 and the rules laid down by the State
Government in this behalf.
every factory shall make provision for sufficient number of latrines and urinals of
prescribed standard. These should be conveniently situated and accessible to all
workers during working hours;
separate arrangement shall be made for male and female workers;
Spittoons : Every factory should have sufficient number of spittoons situated at
convenient places. These should be maintained in a clean and hygienic condition.
(Section 20)
2. Safety related provisions : Chapter IV of the Act contains provisions relating to

safety. These are discussed below :
Fencing of machinery :
Fencing of machinery in use or in motion is obligatory under Section 21. This
Section requires that following types of machinery or their parts, while in use or
in motion, shall be securely fenced by safeguards of substantial construction and
shall be constantly maintained and kept in position, while the parts of machinery
they are fencing are in motion or in use.
Safety measures in case of work on or near machinery in motion :
Section 22 lays down the procedure for carrying out examination of any part
while it is in motion or as a result of such examination to carry out the
operations mentioned under clause (i) or (ii) of the proviso to Section 21(1).
Such examination or operation shall be carried out only by specially trained adult
male worker wearing tight fitting clothing (which shall be supplied by the
occupier).
Employment of young persons on dangerous machines :
Section 23 provides that no young person shall be required or allowed to work at
any machine to which this section applies unless he has been fully instructed as
to dangers arising in connection with the machine and the precautions to be
observed and (a) has received sufficient training in work at the machine, or (b)
is under adequate supervision by a person who has a thorough knowledge and
experience of the machine.
Striking gear and devices for cutting off power :
Section 24 provides that in every factory suitable striking gears or other efficient
mechanical appliances shall be provided and maintained and used to move
driving belts to and from fast and loose pullyes which form part of the
transmission machinery and such gear or appliances shall be so costructed,
placed and maintained as to prevent the belt from creeping back on the fast
pulley. Further, driving belts when not in use shall not be allowed to rest or ride
upon shafting in motion.
Suitable devices for cutting off power in emergencies from running machinery
shall be provided and maintained in every work-room in every factory.
Self-acting machines :
Section 25 provides further safeguard for workers from being injured by self-
acting machines.
It provides that no traverse part of self-acting machine in any factory and no
material carried thereon shall, if the space over which it runs is a space over
which any person is liable to pass whether in the course of his employment or
otherwise, be allowed to run on its outward or inward traverse within a distance
of forty five centimetres from any fixed structure which is not part of the
machines.
Casing of new machinery :
Section 26 provides further safeguards for casing of new machinery of
dangerous nature. In all machinery driven by power and installed in any factory
(a) every set screw, bolt or key on any revolving shaft, spindle, wheel or
pinion shall be so sunk, encased or otherwise effectively guarded as to
prevent danger;
(b) all spur, worm and other toothed or friction gearing which does not require
frequent adjustment while in motion, shall be completely encased unless it is
so situated as to be so safe as it would be if it were completely encased
Prohibition of employment of woman and children near cotton openers :
According to Section 27, no child or woman shall be employed in any part of
factory for pressing cotton in which a cotton opener is at work. However, if the
feed-end of a cotton opener is in a room separated from the delivery end by a
partition extending to the roof, women and children may be employed on the
side of partition where the feed-end is situated.
Hoists and lifts : Section 28 provides that in every factory :
every hoist and lift shall be of good mechanical construction, sound material and
adequate strength. It shall be properly maintained and thoroughly examined by
a competent person at least once in every period of six months and a register
shall be kept containing the prescribed particulars of every such examination,
every hoist way and lift way shall be sufficiently protected by an enclosure fitted
with gates
In terms of Section 29, in any factory the prescribed provisions shall be complied
with respect of every lifting machine (other than a hoist and lift) and every
chain, rope and lifting tackle for the purpose of raising or lowering persons,
goods or materials.
Safety measures in case of use of revolving machinery :
Section 30 of the Act prescribes for permanently affixing or placing a notice in
every factory in which process of grinding is carried on.
Pressure plant :
Section 31 provides for taking effective measures to ensure that safe working
pressure of any plant and machinery, used in manufacturing process operated at
pressure above atmospheric pressure, does not exceed the limits.
Floor, stairs and means of access :
Section 32 provides that in every factory (a) all floors, steps, stairs passages
and gangways shall be of sound construction and properly maintained and shall
be kept free from obstruction and substances likely to cause persons to slip
Pits, sumps, openings in floors etc. :
Section 33 requires that in every factory every fixed vessel, sump, tank, pit or
opening in the ground or in a floor which, by reason of its depth, situation,
construction, or contents is or may be source of danger shall be either securely
covered or securely fence.
Excessive weights :
Section 34 provides that no person shall be employed in any factory to lift, carry
or make any load so heavy as to be likely to cause him injury.
The State Government may make rules prescribing the maximum weights which
may be lifted, carried or moved by adult men, adult women, adolescents and
children employed in factories or in any class or description of factories or in
carrying on any specified process.
Protection of eyes :
Section 35 requires the State Government to make rules and require for
providing the effective screens or suitable goggles for the protection of persons
employed on or in immediate vicinity of any such manufacturing process carried
on in any factory which involves risk of injury to the eyes from particles or
fragments thrown off in the course of the process.
Precautions against dangerous fumes, gases etc. :
Section 36 provides (1) that no person shall be required or allowed to enter any
chamber, tank, vat, pit, pipe, flue or other confined space in any factory in which
any gas, fume, vapour or dust is likely to be present to such an extent as to
involve risk to persons being overcome thereby, unless it is provided with a
manhole of adequate size or other effective means of egress
Explosive or inflammable dust gas, etc. :
Sub-section (1) of section 37 of the Act provides that in every factory where any
manufacturing process produces dust, gas, fume or vapour of such character
and to such extent to be likely to explode on ignition, all practicable measures
shall be taken to prevent any such explosion
Precautions in case of fire :
Section 38 provides that in every factory all practicable measures shall be taken
to outbreak of fire and its spread, both internally and externally and to provide
and maintain (a) safe means of escape for all persons in the event of fire, and
(b) the necessary equipment and facilities for extinguishing fire.
Safety officers :
Section 40-B provides that in every factory (i) where 1,000 or more workers are
ordinarily employed or (ii) where the manufacturing process or operation
involves risk of bodily injury, poisoning or disease or any other hazard to health
of the persons employed therein, the occupier shall employ such number of
safety officers as may be specified in the notification with such duties and
qualifications and conditions of service as may be prescribed by State
Government.
3. Welfare related provisions :
Washing facilities :
Section 42 provides that every factory should provide and maintain adequate
and suitable washing facilities for its workers. For the use of male and female,
such facilities should be separate and adequately screened.
Such facilities should be conveniently accessible for all workers and be kept in a
state of cleanliness. The State Government is empowered to make rules
prescribing standards of adequate and suitable washing facilities.
Facilities for sitting :

There are certain operations which can be performed by the workers only in a
standing position. This not only affects the health of a worker but his efficiency
also.
According to Section 44(1), every factory shall provide and maintain suitable
facilities for sitting, for those who work in standing position so that they may
make use of them as an when any opportunity comes in the course of their
work.
First aid appliances : As per Section 45, the following arrangements should be
made in every factory in respect of first-aid facilities.
(1) Provision of at least one first-aid box or cup-board, subject to following
conditions, for every 150 workers ordinarily employed at any one time in the
factory.
(2) It should be equipped with prescribed contents and nothing else should be
stored in it.
(3) It should be properly maintained and readily accessible during all working
hours.
Canteens :
(1) The State Government may make rules requiring that in any specified factory
wherein more than 250 workers are ordinarily employed, a canteen shall be
provided and maintained by the occupier for the use of workers.
(2) Such rules may relate to any of the following matter :
(i) the date by which canteen shall be provided;
(ii) the standards in respect of construction, accommodation, furniture and
other equipment of the canteen;
(iii) the foodstuffs to be served and the prices to be charged;
Case law : Where the statute casts an obligation to own a canteen in the factory,
and the establishment runs a canteen through a contractor who brings the
workers for the canteen would be part and parcel of the establishment and the
canteen workers would be deemed to be regular employees of the establishment
entitled to arrears of salary and other monetary benefits (Tamil Manila Thozilalar
Sangam v. Chairman TNEB, 1994 CLA 34 Mad. 63.)
Shelters, rest rooms and lunch rooms : The provision of some sort of shelter is a
must, where the workers can take their meals brought by them during rest
interval. The following provisions under Section 47 of the Act have been made in
this respect :
(1) In every factory where more than 150 workers are ordinarily employed, the
occupier should make adequate and suitable arrangements for shelters or rest
rooms and lunch-room with provision of drinking water where the workers can
take rest of or eat meals brought by them. However any canteen which is
maintained in accordance with provisions of Section 45 shall be regarded as part
of the requirements of this sub-section. Where a lunch room exists no worker
shall eat any food in the workroom.
(2) Such places should be equipped with the facility of drinking water.
(3) Such places should be sufficiently lighted, ventilated and kept in cool and
clean conditions
Creches : Following provisions have been made in respect of creches in the
factories :
(1) In every factory wherein more than 30 women workers are ordinarily
employed, the facility of suitable room or rooms should be provided and
maintained for the use of children under the age of six years of such women.
(2) There should be adequate accommodation in such rooms.
(3) These places should be sufficiently lighted and ventilated and kept in clean
and sanitary conditions.
(4) Women trained in the case of children and infants should be made incharge
of such rooms.
Welfare officers :
According to Section 49(1), in every factory wherein 500 or more workers are
ordinarily employed, the occupier should employ such number of welfare officers
as may be prescribed.
The State Government is empowered to prescribe the duties, qualifications and
conditions of service of such welfare officers.
The provisions of Section 49 also apply to seasonal factories like sugar factories
etc.
The State Government is empowered to lay down rules as to the conditions of
service of welfare officers.
The conditions of service may include matters in respect of pay grades, period of
probation and confirmation, dismissal or termination or retirement etc.
Case law : In the case of Associated Cement Cos. Ltd. v. Sharma, A.I.R. 1965
S.C. 1595, the Supreme Court held that
Rule 6 of Punjab Welfare Officers Recruitment and Conditions of Service
Rules, 1952, requiring the concurrence of the Labour Commissioner before the
management can dismiss or terminate the services of Welfare Officer is not
ultra vires.
Provisions relating to hazardous process under Factories Act 1948 :
Definition of Hazardous Substance : Hazardous substance means any substance
or preparation which, by reason of its chemical or physio-chemical properties or

handling, is liable to cause harm to human beings, other living creatures, plants,
micro-organism property or the environment
Special provisions relating to hazardous processes have been envisaged under
Chapter IV. A of the Factories Act, 1948.
This chapter was inserted by the Factories (Amendment) Act, 1987 and Consists
of Sections 41 A to 41 H.
Salient provisions of the Chapter-IVA are as follows :
(Section 41A) Constitution of Site Appraisal Committees : A Committee under
the name Site Appraisal Committee shall be constituted by the State
Government to advise the Government in the matter of examination of
application for establishment of factories involving hazardous processes.
The Site Appraisal Committee shall examine an application for the
establishment of a factory involving hazardous process and make its
recommendation to the State Government within a period of ninety days in
the prescribed from.
(Section 41B) Compulsory disclosure of information by the occupier : It is
compulsory on the part of the occupier of every factory involving a hazardous
process to disclose all information regarding dangers, including health hazards
to the workers employed in the factory, to the Chief Inspector, the local
authority within whose jurisdiction the factory is situated and also to the
general public in the vicinity.
(Section 41C) Specified responsibility of the occupier in relation to hazardous
processes : Accurate and up to date health records or medical records of the
workers of the factory who are exposed to any chemical toxic or any other
harmful substances which are manufactured, stored, handled or transported
and such records shall be maintained by the occupier of a factory involving
any hazardous process.
(Section 41D) Inquiry Committee : In the event of occurrence of an
extraordinary situation, the Central Government may appoint an Inquiry
Committee 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 prescribed for the health and safety of the workers
or the general public.
(Section 41E) Emergency standards : The DirectorGeneral of Factory Advice
Service and Labour Institutes may be directed by the Central Government to
lay down emergency standards in respect of hazardous process.
(Section 41F) Permissible limits of exposure of chemical and toxic
substances : The second Schedule added to the Act, indicates maximum
permissible threshold limits of exposure of chemical and toxic substances in

manufacturing processes in any factory.
(Section 41G) Workers Participation in safety management : The occupier in
every factory shall set up a safety committee consisting of equal number of
representatives of workers and management to promote cooperating
between the workers and the management in maintaining proper safety and
health at work and to review periodically the measure taken in that behalf
where hazardous process is involved.
(Section 41H) Warning about imminent danger : If there is reasonable
apprehension regarding likelihood of imminent danger to the lives or health of
the workers employed in a factory, they may bring the same to the notice of
the occupier, agent, manager, etc.
Conclusion :
Thus Factories Act has made elaborate provisions for health, safety and welfare of
workmen.
Go To Contents
Explain in detail the various benefits available under the Employees State
Insurance act 1946. (Nov-2011)
ANSWER :
Refer :
Object of the Act : To provide social insurance for the employees.
Applicability of the Act & Scheme :
Is extended in area-wise to factories employing 10 or more persons and
establishments employing 20 or more person. It has also been extended upon
shops, hotels, restaurants, roads motor transport undertakings, equipment
maintenance staff in the hospitals.
Coverage of employees : Employees drawing gross wages upto Rs.15000/- per
month, engaged either directly or thrugh contractor
Rate of Contribution of the wages :
Employers 4.75%
Employees 1.75%
Manner and Time Limit for making Payment of contribution :
The total amount of contribution (employees share and employers share) is to be
deposited with the authorized bank through a challan in the prescribed form in
quadruplicate on or before 21 st of month following the calendar month in which
the wages fall due.
Benefits to the employees under the Act :
Medical, sickness, extended sickness for certain diseases, enhanced sickness,
dependents maternity, besides funeral expenses, rehabilitation allowance, medical
benefit to insured person and his or her spouse.
Following to be deemed as wages for ESI contributions :
Basic pay
Dearness allowance
House rent allowance
City compensatory allowance
Overtime wages (but not to be taken into account for determining the coverage of
an employee)
Payment for day of rest
Production incentive
Bonus other than statutory bonus
Night shift allowance
Heat, Gas & Dust allowance
Payment for unsubstituted holidays
Meal/food allowance
Suspension allowance
Lay off compensation
Children education allowance (not being reimbursement for actual tuition fee)
Following NOT to be deemed as wages for ESI contributions :
Contribution paid by the employer to any pension/provident fund or under ESI Act.
Sum paid to defray special expenses entailed by the nature of employment
Daily allowance paid for the period spent on tour.
Gratuity payable on discharge.
Pay in lieu of notice of retrenchment compensation
Benefits paid under the ESI Scheme.
Encashment of leave
Payment of Inam which does not form part of the terms of employment.
Washing allowance
Conveyance Amount towards reimbursement for duty related journey
Contribution period :
1 st April to 30 th September.
1 st October to 31 st March
Illustration : If the person joined employment for the first time, say on 5 th
January, his first contribution period will be from 5 th January to 31 st March and
his corresponding first benefit will be from 5 th October to 31 st December.
Penal Provision :
For contraventions of Provisions of the Act, imprisonment upto 2 years and fine
upto Rs.5,000/-.
For repeated contraventions of the Act, imprisonment upto 5 years and fine upto
Rs.25,000/-.
Besides these provisions, action also can be taken under section 406 of the IPC
in cases where an employer deducts contributions from the wages of his
employees but does not pay the same to the corporation which act of
employer amounts to criminal breach of trust.
Go To Contents
Explain object of the payment of the gratuity under the Payment of Gratuity Act.
(Nov-2011)
ANSWER :
Intro :
This Act was introduced in 1972 and was amended in 1984 and 1987.
Gratitude is defined as something given without obligation or claim.
Object of the payment of the gratuity :
Supreme Court said: Gratuity is a kind of retirement benefit like the provident fund
or pension. Intended to help them after retirement, whether the retirement is the
result of superannuation or physical disability. General principal behind Gratuity is
that the length of the service of the workmen are to be considered to claim a
certain amount as a retiral benefit.
Article 43 of Constitution of India says that the State should work towards securing
to all workers, work, a living wage, conditions of work ensuring a decent standard
of life and full enjoyment of leisure and social and cultural opportunities
Preamble: An Act to provide for a scheme for the payment of gratuity to employees
engaged in factories, mines, oil-fields, plantations, ports, railway companies, shops
or other establishments and for matters connected therewith or incidental thereto.
Definition : Section - 4 Payment of gratuity :-

(1) Gratuity shall be payable to an employee on the termination of his employment
after he has rendered continuous service for not less than five years,-
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease;
Provided that the completion of continuous service of five years shall not be
necessary where the termination of the employment of any employee is due to
death or disablement :
Provided further that in the case of death of the employee, gratuity payable to
him shall be paid to his nominee or, if no nomination has been made, to the
heirs.
Explanation.- For the purposes of this section, disablement means such
disablement as incapacitates an employee for the work which he was capable of
performing before the accident or disease resulting in such disablement.
(2) For every completed year of service or part thereof in excess of six months, the
employer shall pay gratuity to an employee at the rate of fifteen days' wages based
on the rate of wages last drawn by the employee concerned :
Provided that in the case of piece-rated employee, daily wages shall be
computed on the average of the total wages received by him for a period of
three months immediately preceding the termination of his employment, and, for
this purpose, the wages paid for any overtime work shall not be taken into
account :
Provided further that in the case of an employee employed in a seasonal
establishment, the employer shall pay the gratuity at the rate of seven days'
wages for each season.
(3) The amount of gratuity payable to an employee shall not exceed twenty
months' wages.
(4) For the purpose of computing the gratuity payable to an employee who is
employed, after his disablement, on reduced wages, his wages for the period
preceding his disablement shall be taken to be the wages received by him during
that period, and his wages for the period subsequent to his disablement shall be
taken to be the wages as so reduced.
(5) Nothing in this section shall affect the right of an employee to receive better
terms of gratuity under any award or agreement or contract with the employer.
(6) Notwithstanding anything contained in sub-section (1),-
(a) the gratuity of an employee, whose services have been terminated for any
act, willful omission or negligence causing any damage or loss to, or destruction
of, property belonging to the employer, shall be forfeited to the extent of the
damage or loss so caused;
(b) the gratuity payable to an employee shall be wholly forfeited,-
(i) if the services of such employee have been terminated for his riotous or
disorderly conduct or any other act of violence on his part, or
(ii) if the services of such employee have been terminated for any act which
constitutes an offence involving moral turpitude, provided that such offence is
committed by him in the course of his employment.
Comment: "The right to gratuity is also a statutory right. The appellant was not
charged with nor was given an opportunity that his gratuity would be withheld as
a measure of punishment. No provision of law has been brought to our notice
under which, the. President is empowered to withhold gratuity as well, after his
retirement as a measure of punishment. Therefore, the order to withhold the
gratuity as a measure of penalty is obviously illegal and is devoid of
jurisdiction.": D.V. Kapoor v. Union of India AIR 1990 SUPREME COURT 1923
Payment of Gratuity Act Applies to :
1. Every factory, mine, oil-field, plantation, port and railway company;
2. Shops or establishment with ten or more persons employed on any day in the
preceding 12 months;
3. Such Shops or establishment with ten or more persons employed on any day
in the preceding 12 months as identified by Central Government by notification;
Applies to the whole of India except to Jammu & Kashmir in so far as to
plantations or ports.
'Not less than 5 years of continuous service' is relaxed for cases of death or
disablement
Calculating Gratuity :
15 day average pay = (Total Salary for the month / 26 working days of the
month) * 15 days
Total Gratuity payment amount = 15 day average pay * total years in service
Total years in service should be calculated for every completed year of service or part
thereof in excess of six-months
Recovery of gratuity : If the amount of gratuity payable under this Act is not paid by
the employer, within the prescribed time, to the person entitled thereto, the
controlling authority shall, on an application made to it in this behalf by the aggrieved
person, issue a certificate for that amount to the Collector who shall recover the
same, together with compound interest thereon 1at such rate as the Central
Government may, by notification, specify, from the date of expiry of the prescribed
time as arrears of land revenue and pay the same to the person entitled thereto
Go To Contents
Explain permanent and Temporary disabilities under the workmen compensation

act. (Nov-2011)
ANSWER :
Refer :
Object of the Act :
This Act earlier known as Workmens Compensation Act is introduced as a kind of
Social Security Scheme for the workmen who suffer employment injury,
occupational decease etc.
Applicability :
To those employers employing persons listed in Schedule II of the Act and to whom
ESI Act (Employee's State Insurance Act), is not applicable.
Coverage of Workmen :
All workers irrespective of their status or salaries either directly or through
contractor or a person recruited to work abroad.
Eligibility :
Any workman who is injured by accident arising out of and in the course of his
employment OR contracts occupational disease peculiar to his occupation.
Benefits :
In case of death results from injury, 50% of monthly wages X relevant factor OR
Rs.1,20,000/- whichever is more.
In case of Permanent total disablement resulted from the injury, 60% of monthly
wages X relevant factor OR Rs.1,40,000/- whichever is more
Where permanent, partial disablement or termporary disablement results from
injurty, as per prescribed schedule.
In case of death funeral expenses of Rs.5,000/-
Relevant factor is based on the age of workman
For the purpose of calculation of compensation, the monthly salary ceiling is
Rs.8000/-, as per Central Govt. Notification dated 31.05.2010.
In the event of death or in the event of any dispute, the compensation to be
deposited with the Commissioner within one month.
When an employee is not liable for compensation :
In respect of any injury which does results in the total or partial disablement of the
workman for a period not exceeding three days.
In respect of any injury, not resulting in death or permanent total disablement
caused by an accident which is directly attributable to-
The workman having been at the time thereof under the influence of drink or
drugs, or
Willful disobedience of the workman to an order expressly given, or to a rule
expressly framed, for the purpose of securing the safety of workmen, or
Willful removal or disregard by the workman of any safety guard or other
device which he knew to have been provided for the purpose of securing the
safety of workman.
Report of accident :
Report of fatal Accident and Serious Injury within 7 days to the Commissioner (not
application when ESI Act applies).
Bar upon contracting out : Any workman relinquishing his right for personal injury not
permissible.
Definition : Section 17 : Any contract or agreement whether made before or after
the commencement of this Act, whereby a workman relinquishes any right of
compensation from the employer for personal injury arising out of or in the course
of the employment, shall be null and void in so far as it purports to remove or
reduce the liability of any person to pay compensation under this Act.
Bar of benefit under other enactments :-
When a person is entitled to any of the benefits provided by this Act, he shall not
be entitled to receive any similar benefit admissible under the provisions of any
other enactment.
Penal Provision : In case of default by employer -
50% of the compensation amount + interest to be paid to the workman or his
dependents as the case may be.
Other offences attract fine upto Rs.5000/-
Go To Contents
Discuss : Workers participation in Management

ANSWER :
Refer :
http://www.whatishumanresource.com/workers-participation-in-management
Intro :
"Workers participation in Management" is a process by which subordinate
employees, either individually or collectively, become involved in one or more
aspects of organizational decision making within the enterprises in which they
work.
The main reasons for worker's participation in management as summarized by
ILO :
Workers have ideas which can be useful;
Workers may work more intelligently if they are informed about the reasons for
and then intention of decisions that are taken in a participative atmosphere
Objectives of Worker's Participation in Management :
To raise level of motivation of workers by closer involvement.
To provide opportunity for expression and to provide a sense of importance to
workers.
To develop ties of understanding leading to better effort and harmony.
To act on a device to counter-balance powers of managers.
To act on a panacea for solving industrial relation problems.
Forms of Worker's Participation in Management :
Collective Bargaining : Collective bargaining results in collective agreements
which lay down certain rules and conditions of service in an establishment. Such
agreements are normally binding on the parties. Theoretically, collective bargaining
is based on the principle of balance of power, but, in actual practice, each party
tries to outbid the other and get maximum advantage by using, if necessary,
threats and counterthreats like; strikes, lockouts and other direct actions. Joint
consultation, on the other hand, is a particular technique which is intended to
achieve a greater degree of harmony and cooperation by emphasising matters of
common interest. Workers prefer to use the instrument of collective bargaining
rather than ask for a share in management. Workers participation in the U.S.A has
been ensured almost exclusively by means of collective agreements and their
application and interpretation rather than by way of labour representation in
management.
Works Committees/ Councils : These are exclusive bodies of employees,
assigned with different functions in the management of an enterprise. In West
Germany, the works councils have various decision-making functions. In some
countries, their role is limited only to receiving information about the enterprise.
In Yugoslavia, these councils have wider decision-making powers in an enterprise
like; appointment, promotion, salary fixation and also major investment decisions.
Joint Management Councils/ Committees : Mainly these bodies are
consultative and advisory, with decision-making being left to the top management.
This system of participation is prevalent in many countries, including Britain and
India. As they are consultative and advisory, neither the managements nor the
workers take them seriously.
Board Representations : The role of a worker representative in the board of
directors is essentially one of negotiating the workers interest with the other
members of the board. At times, this may result in tension and friction inside the
board room. The effectiveness of workers representative at the board depend upon
his ability to participate in decision-making, his knowledge of the company affairs,
his educational background, his level of understanding and also on the number of
worker representatives in the Board.
Workers Ownership of Enterprise : Social self-management in Yugoslavia is an
example of complete control of management by workers through an elected board
and workers council. Even in such a system, there exist two distinct managerial
and operative functions with different sets of persons to perform them. Though
workers have the option to influence all the decisions taken at the top level, in
actual practice, the board and the top management team assume a fairly
independent role in taking major policy decisions for the enterprises, especially in
economic matters.
Conclusion :
Workers participation in management is an essential ingredient of Industrial
democracy. The concept of workers participation in management is based on
Human Relations approach to Management which brought about a new set of
values to labour and management. Traditionally the concept of Workers
Participation in Management (WPM) refers to participation of non-managerial
employees in the decision-making process of the organization.
By virtue of their participation, employees are bound to abide by all the decisions
taken. This also helps in boosting the employee morale and enhancing their
commitment to the organization.
Go To Contents
Discuss : Principle of collective bargaining and joint management Council. (Nov-

2012)
Discuss the concept of "Collective Bargaining in detail under B.I.R. Act 1946. (Oct-
2013)
Discuss the concept of Collective bargaining in detail under Gujarat industrial
relations act (former BIR act 1946). (Nov-2014)
Explain in detail the concept of collective bargaining with case laws under the Gujarat
(Mumbai) Industrial Relations Act 1946. (Dec-2016)
ANSWER :
Refer :
page-35-47 of
https://spiritofhr.wordpress.com/industrial-disputes-act-trade-unions-act-factories-
act-plantation-labor-act/
Collective bargaining and Joint Management Council are few of the methods of
Worker's Participation in Management. Joint Management Council is discussed
elsewhere in this doc.
Collective Bargaining as a method of Settlement of Industrial Disputes :

Collective bargaining deserves the attention of all who are concerned with the
preservation of industrial peace and implement of industrial productivity.
In the laissez faire the employers enjoyed unfettered rights to hire and fire. They
had much superior bargaining power and were in a position to dominate over the
workmen.
The system of collective bargaining as a method of settlement of industrial dispute
has been adopted in industrially advanced countries. The common law emphasis to
individual contract of employment is shafted to collective agreement negotiated by
and with reprehensive groups. The application and interpretation of such
agreements are also in collective manner.
eg In United States of America the workers have the right to organize and
bargain collectively. In Japan the right to collective bargaining is guaranteed
under their Constitution.
Collective bargaining in India is of late development and therefore in view of the
above circumstances, the legislature in order to establish and maintain harmony
and peace between labour and capital came out with a legislation named The
Industrial Disputes Act, 1947 which provides for the machinery for the settlement
of industrial disputes.
The ID act has two main objects, first is the investigation and the second is the
settlement of industrial disputes which exist or likely to exist. For the amicable
settlement of the industrial disputes, one of the method is collective bargaining.
Other methods are Negotiation, Conciliation and Mediation, Arbitration and
Adjudication.
Concept and Meaning of Collective Bargaining :
The expression collective bargaining has been defined by deferent persons in
different manners. It is made up two words collective implies group action through
its unions of representatives and bargaining implies haggling and or negotiating.
The Encyclopedia of Social Sciences defines "collective bargaining" as a process of
decision and negotiations between two parties, one or both of who is a group of
persons acting in concert.
More significantly, it is the procedure by which an employer or employers and a
group of employees agree upon the conditions of work.
The International Labour Organization has defined collective bargaining as --->
Negotiations about working conditions and terms of employment between one or
more employers/ organizations on the one hand, and one or more representative
workers/ organizations on the other, with a view to reaching agreement.
According to Ludwing Teller Collective Bargaining is an agreement between a
single employer or an association of employers on the one hand and labour union
on the other hand which regulate the terms and conditions of employment.
The Supreme Court has also laid down that collective bargaining is a technique by
which dispute between labour and capital are resolved amicably by agreement.
Pre- Requisites of Collective bargaining :
Mutual Recognition
The parties must attain a sufficient degree of organisation
Agreement must be observed by those to whom they apply
There must be a favorable political climate, essential for successful collective
bargaining
A give and take policy must prevail in the organisation
Workers as well as the employers shall have the right to form an organisation of
their own to protect their interests
Negotiation is successful only when the parties rely on facts & figures to support
their points of view
Unfair practices should be avoided from both the parties
The terms of agreement should be clearly & precisely written down in detail
Agreement reached should be honored and fairly implemented
Both the parties must have an understanding about the needs, aspirations,
objectives and problems of other parties
Both the parties should have maturity in leadership and negotiation skills
The trade union participating in the collective bargaining process must be strong &
democratic
Parties to Collective Bargaining :
Two parties namely management and workers are required for collective
bargaining. Management may represent itself alone or may be represented through

employers association or federation of employers. Workers will be represented
either through a union or workers federation.
However it is relevant and essential to mention here that a representative of public
should also involve in collective bargaining to represent and safeguard the interest
of the public at large.
Subject matter of Collective Bargaining : The International Labour Organization has
divided the subject matter of collective bargaining into two categories.
That, which set out standards of employment, which are directly applicable to
relations between an individual employer and worker. The first category includes
subjects like wages, working hours, overtime, holidays with pay and period of
notice for termination of contract.
That, which regulate the relation between the parties to the agreement
themselves and have no bearing on individual relations between employers and
workers. The second category includes provisions for enforcement of collective
bargaining, method of settling individual disputes, reference to conciliation and
arbitration, reorganization of union as bargaining agent for the workers,
undertakings not to resort to strike or lockout during the period and procedure
for negotiations of new agreements.
In India the parties are free to decide the subject matter subject to the limitation
imposed by the laws. For instance, the contracts must be in conformity with
Factories Act, 1948, Minimum Wages Act, 1948, Payment of Wages Act, 1936 etc.
These acts prescribe safety precautions, health measures, amenities, conditions of
employment, minimum wages, payment of wages etc.
Objectives of Collective Bargaining :
There are certain objective which are required to be achieved by collective
bargaining contracts. International Confederation of Free Trade Union has
enumerated the following objectives in this regard :
1. To raise workers standard of living and win a better share in companies
profit;
2. To express in practical terms the workers desire to be treated with due
respect and to achieve domestic participation in decision affecting their
working conditions;
3. To establish orderly practices for sharing in these decision and to settle
disputes which may arise in day to day life of the company.
4. To achieve broad general objectives such as defending and promoting the
workers interest.
The main objective of collective bargaining is to settle down the disputes or
deference between the parties in respect of employment, non-employment and
conditions of services of the members of the union.

Collective bargaining is, that arrangement where by the wages and conditions of
employment of workers are settled through their union or by some of them on
behalf of all of them.
Stages of Collective Bargaining :
1. Preparation for negotiation
2. Negotiations
3. Drafting of Agreement
4. Implementation of the Agreement
1. Preparation for negotiation : It is necessary that the bargaining terms of the
management and the labour should be selected with proper care and prudence.
It is also advisable to form a small team because the large members on both
sides become unwieldy. Each member of the team must know the role to be
played by him. Negotiations may commence at the instance of either party
Before the actual negations begin, the parties should hold separate meetings of
their own sides to decide their attitudes on various issues, to draft the terms of
their demands and to limit concessions they are prepared to make.
2. Negotiations : The negotiations between the management and union are the
second stage of collective barging. This stage is excessively a complicated one. It
requires a protracted and complex interchange of ideas combining argument,
horse-trading, bluff, cajolery and threats.
Each party shall listen care fully and observe the reactions of the other. Act of
listing and registering what is being said across the table as well as
remembering the context in which the key words and phrases have been
employed can make the deference of success and failure.
Negotiations also play important role during the course of bargaining process.
They keep on bargaining as long as the other party continues to do so in good
faith and there appears to be a change of settlement.
If there is an agreement between the management and the union, the union
members must accept or reject the agreement by majority vote.
In case the agreement is rejected by the union, negotiating terms return to the
bargaining table to negotiate. Again if there is no agreement between the
parties, negotiations are said to have broken down.
3. Drafting of Agreement : The Third Stage of Collective Bargaining process is the
drafting of an agreement. The importance of drafting of agreement cannot be
under estimated as it involves great deal of skill and prudence.
Drafting of agreement must be in such a manner as to respect the real intention
of the parties.
The provisions mentioned in the agreements are supposed to be clear and

definite and should explicitly cover the subject matter in accordance with the
intent of the agreement.
Vagueness and ambiguity should be avoided. Lastly the agreement is finalized
for signature by the parties, the duration of the agreement vary from agreement
to agreement.
4. Implementation of the Agreement : A collective agreement is useless unless it is
implemented in its true letter and spirits. In the United Kingdom these agreements
are considered gentlemens agreements without legal force. However, in India
collective bargaining agreement can be enforced under Section 18 of Industrial
Disputes Act, 1947, as a settlement arrived between the workers and the
employers.
Note ---> Under Section 18 (1) of ID Act, 1947, a settlement arrived at by an
agreement between the employer and workmen otherwise than in the course of
conciliation proceedings is binding only on the parties to the agreement.
Therefore it is evident that a settlement enforceable under ID Act, 1947, does
not automatically extend to workers employed in the industrial establishment
concerned who are not a party to the settlement.
Conclusions : After analyzing the concept of collective bargaining comprehensively, it
can be concluded that
It is the technique that has been adopted by unions and management for
converging their conflicting interests. Industrial harmony and improving labour
management relations are the ultimate objective of collective bargaining. It helps
in settlement of many minor and major disputes or differences. Therefore, its role
in conflict resolutions is significant and remarkable.
It does not involve bitterness between the parties and unnecessary expenditure.
It differs from arbitration where the solution is based on a decision of a third party,
while arrangements resulting from collective bargaining usually represent the
choice or compromise of the parties themselves.
It is also relevant and pertinent to highlight here that collective bargaining is a
quick and efficient method of settlement of industrial disputes and avoids delay and
unnecessary litigation.
The teams representing both the parties must be strong, balanced and should be
small. They should be the persons of open hearts and should try their best to come
to the solution which is acceptable to all.
It helps in establishing harmonious relationship between the labour and capital and
is considered a step towards industrial democracy.
Mr V V Giri, the former President of India and a strong champion of collective
bargaining had the courage to say that adjudication was enemy number one of the
industry and working class.
Go To Contents
*** End-of-Compilation ***

Source : Public domain print/ internet contents.
URLs of some such resources are listed herein above.
Credits/ copyrights duly acknowledged.
Suggested Reading :
John Bowers and Simon Honeyball, Tex Book on Labour Law, Blackstone, London.
Srivastava K. D. Commentaries on payment of Wages Act, 1936, Eastern, Lucknow.
Srivastava K. D. Commentaries on Minimum Wages Act, 1948, Easteron, Lucknow.
Rao S. B. Law and Practice on Minimum Wage, Law Publishing House, Allahabad.
Sheth D. D. Commentaries on industrial Disputes Act, 1947, Law Publishing House,
Allahabad.
Srivastava K. D. Disciplinary Action against Industrial Employees and its Remedies,
Eastern, Lucknow.
Srivastava K. D. Commentaries on Factories Act, 1948, Eastern, Lucknow.
R. C. Saxena, Labour Problems and Social Welfare Chapter 1.5 and V. V. Giri, Labour
Problems in Indian Industry Chs. 1 and 15
Indian Law Institute, Labour Law and Labour Relation, Cochin University law Review,
Vol. 6 app. 153-210
Report of the National Commission on Labour Ch. 1417, 22, 23, and 24
O. P. Malhotra, The Law of Industrial Dispute, Universal, Delhi,
S.C. Srivastava, Social Security and Labour Laws, Universal Delhi.
S.C. Srivastava, Commentary on the Factories Act, 1948, Universal, Delhi.

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LL.B. Semester III

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Objectives Of The Course :

Module-1) The Industrial Disputes Act, 1947 :

Write short note : conciliation proceedings. (Nov-2012)

Discuss : Development of Labour Law (Industrial Laws) internationally as well as in

Industrial relations certification of unions, labour-management relations,

it provides a clear and constant reminder and guarantee of fundamental

Industrial Dispute (Individual and Collective), Workman etc. and Judicial

employment or with the conditions of labour, of any person.

Claim for compensation for wrongful dismissal.

industry to do manual, unskilled, skilled, technical, operational, clerical or

employing 50 or more workmen on an average working day, and

Write short note : industrial tribunal. (Nov-2014)

National Tribunal (adjudication authority),

persist in or continue negotiations to arrive at a settlement.

is likely to come into existence unless something is done to prevent or

parties to dispute or in its absence the date on which it was signed by

to a Board of Conciliation for promoting settlement. In case the parties to an

discipline, rationalization etc.

k. Any increase or reduction in the number of persons employed or to be

Penalties for illegal strike or lockout :

Closure : 15 days wages for each completed year

Discuss : Unfair Labour Practices.

Write short note : Award. (Nov-2012, Oct-2013, Nov-2014)

referred, as a matter incidental to the points of dispute.

effective enforceability of awards.

Module-2) The Industrial Employment (Standing Orders) Act, 1946

(e) Leave rules

of suspension if the delay in the completion of disciplinary proceedings against

In addition to the above rudimentary principles of equity, the management of the

(l) Advise the Defence Representative that on receipt of Presenting Officers

given an opportunity to explain the same.

Module-3) Trade Unions Act, 1926

1. Ensure Security of Workers : This involves continued employment of workers,

c) Statement to Registrar - following information should be given to the

At least 50% of the office bearers of a union should be actually engaged or

a) Voluntary for the Members

Explain rights and privileges of the registered trade union. (Nov-2011)

reasonable facilities for that.

7. Under section 28, a general statement, audited in a prescribed manner, of all

Immunities available to a registered Trade Union.

Unions have certain rights to do in furtherance of their trade disputes such as

Discuss : Notice of Change.

2. investigate the grievances of employees and represent to employers such

Powers of industrial court :

Government shall by order in writing declare the decision to be binding;

Write short note : illegal change. (Nov-2012, Nov-2014)

representative union] has in the prescribed manner approached the employer

any workroom following measures shall be adopted :

2. Safety related provisions : Chapter IV of the Act contains provisions relating to

Facilities for sitting :

or preparation which, by reason of its chemical or physio-chemical properties or

permissible threshold limits of exposure of chemical and toxic substances in

Definition : Section - 4 Payment of gratuity :-

Explain permanent and Temporary disabilities under the workmen compensation

Discuss : Workers participation in Management

Discuss : Principle of collective bargaining and joint management Council. (Nov-

Collective Bargaining as a method of Settlement of Industrial Disputes :

bargaining. Management may represent itself alone or may be represented through

conditions of services of the members of the union.

The provisions mentioned in the agreements are supposed to be clear and

202 Labour & Industrial Law - I

202 Labour & Industrial Law - I

* End-of-Compilation *