Labor laws, industrial relations & industrial disputes

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Labor laws, industrial relations & industrial disputes

  1. 1. Labour law or employment law is the body of laws, regulations, administrative rulings, and precedents which address the legal rights of, and restrictions on, labourers and their organizations.  I t deals with many aspects of relationship between trade unions, employers and their employees. The final goal of Labour laws is to reduce the differences between the Employer and Employee which leads in Industrial Growth and Growth of a Nation. 
  2. 2.  Under the Constitution of India, Labour is a subject in the Concurrent List where both the Central and State Governments are competent to enact legislation.  As per the Constitution of India, matters in labour law contained in Concurrent List are: • Entry No. 22: Trade Unions, industrialists and labour disputes. • Entry No. 23: Social Security and insurance, employment and unemployment • Entry No. 24: Welfare of labour
  3. 3.  Subjects restricted to Union List are: • Entry No. 55: Regulation of labour and safety in mines and oil fields. • Entry No. 61: Industrial disputes concerning Union employees. • Entry No. 65: Union agencies and institutions for Vocational training.
  4. 4.  Laws related to Industrial Relations: 3. The Trade Unions Act, 1926 The Industrial Employment (Standing Orders) Act, 1946 The Industrial Disputes Act, 1947.  Laws related to Equality and Empowerment of Women: 1. The Maternity Benefit Act, 1961 The Equal Remuneration Act, 1976. 1. 2. 2.
  5. 5.  Laws related to Wages: 1. 4. Workmen’s Compensation Act, 1923 The Payment of Wages Act, 1948 The Working Journalist (Fixation of Rates of Wages) Act, 1958 The Payment of Bonus Act, 1965.  Laws related to Working Conditions: 1. The Factories Act, 1945 The Contract Labour (Regulation & Abolition) Act, 1970 Shops and Establishment Act Indian Boilers Act, 1923 The Dangerous Machines (Regulations) Act, 1983. 2. 3. 2. 3. 4. 5.
  6. 6.  Laws related to Social Security: 1. The Employees’ State Insurance Act, 1948 The Employees’ Provident Fund & Miscellaneous Provisions Act, 1952 The Payment of Gratuity Act, 1972 The Unorganized Workers’ Social Security Act, 2008 Employers’ Liability Act, 1938 The Children (Pledging of Labour) Act, 1938 The Child Labour (Prohibition and Regulation) Act, 1986 The Bonded Labour System (Abolition) Act, 1976 The Employment of Manual Scavengers and Construction of Dry Latrines Prohibition Act, 1993. 2. 3. 4. 5. 6. 7. 8. 9.
  7. 7.  Amendment made in Payment of Wages Act, 1936 enhancing ceiling of workers from Rs.1,600/- to Rs.6,500/- per month and subsequently to Rs.10,000/- per month  Amendment made Payment of Bonus Act, 1965, wherein the calculation ceiling and eligibility limit under the Act has been enhanced from Rs.2,500/- to Rs.3,500/- and from Rs.3,500/- to Rs.10,000/- per month respectively.  He Apprentices Act, 1961 has been amended to provide reservation for other backward classes. The Maternity Benefit Act, 1961 has been amended to enhance the medical bonus from Rs.250/-to Rs.1000/- and also empowering the Central Government to further increase it to maximum of Rs.20,000/through Gazette Notification.
  8. 8.  The Workmen’s Compensation Act has been amended to make it gender neutral and it is now called “the Employees’ Compensation Act, 1923. Besides this, the Compensation in case of death, disablement and funeral expense paid under the Act have also been enhanced. The Plantation Labour Act, 1951 has been amended to provide safety and occupational health care to plantation workers.  Employees’ State Insurance Act, 1948 has been amended to improve the quality of delivery of benefits under the scheme and also to enable ESI infrastructure to be used to provide health care to workers of the unorganized sector.
  9. 9.  Industrial Disputes Act, 1947 has been amended to amplify the term “appropriate Government” defined under section 2(a) of the Act. The wage ceiling for coverage under the Act has been enhanced from Rs.1600/- to Rs.10,000/- per month to cover workmen working in supervising capacity. The amended provisions also provide direct access for the workman to the Labour Court or Tribunal.
  10. 10. WHAT IS INDUSTRIAL RELATIONS?  IR is a relationship between management and employees or among employees and their organizations, that characteristics and grow out of employment.  IR may be defined as the complex of inter-relations among workers, managers and government.
  11. 11. CHARACTERISTICS OF IR:  An outcome of relationship in industry.  It create rules and regulations to maintain piece and harmony.  Important parts of IR are employees and their organization, employer and their association and government.  It has a role of management, union and government.
  12. 12. OBJECTIVE OF IR:  To promote and develop labor management relation.  To regulate the production by minimizing industrial conflicts  To provide opportunity to workers to involve in decision making process with management.  To encourage and develop trade unions in order to improve the workers' strength.
  13. 13. ROLE OF TRADE UNIONS IN IR:  Achieving higher wages  To offer responsive co-operation in improving level of production, discipline etc.  To promote individual and collective welfare  To improve working and living conditions  To enlarge the opportunities of promotion and training.
  14. 14. ROLE OF EMPLOYER’S ORGANISATION:  Promote and protect of the interest of employers engaged in Industry, Trade and Commerce.  Advice offering  Bridge between Union Government  Train and develop staff members of concern members of Associations
  15. 15.      Preventive Machinery Trade Union Joint Consultation  Work Committee  Joint Management Council Standing Orders Grievance Procedure Code of Discipline Settlement Machinery a) Conciliation 1. Conciliation Officer 2. Board of Conciliation 3. Court of Inquiry a) Voluntary arbitration b) Compulsory Arbitration 1. Labor Court 2. Industrial Tribunal 3. National Tribunal
  16. 16.  The Industrial Relations (Amendment) Act, 2012 sets stricter conditions for the establishment and variation of Employment Regulation Orders (EROs) and Registered Employment Agreements (REAs).  Both EROs and REAs set out legally binding minimum pay and conditions for workers in different sectors of the economy and encompass all workers in these sectors. An ERO is set by a Joint Labour Council (JLC) made up of representatives of workers and employers, while an REA is an agreement by workers and employers which is registered at the Labour Court. Both ERO’s and REA’s are vetted by the Labour Court and ultimately the Minister, before being legally enforceable.
  17. 17. What are the main changes in the new legislation on EROs?  Basically, it sets out the principles and policies to be set by the JLC when constructing an ERO; it gives guidance as to what can be laid down with regard to pay and other conditions in the ERO and sets out a mechanism for the Labour Court to sort out disagreements at the JLC.  It also sets out a mechanism whereby an employer may seek a temporary derogation or exemption from the obligation to abide by the terms of an ERO.
  18. 18.  The Labour Court will be allowed conduct a five year review of all ERO’s/JLCs and may amend, merge or abolish them according to criteria laid down. Employees or trade unions can now go to a Rights Commissioner with a complaint within six months with an appeal to the Labour Court within six weeks.  Previous contraventions were processed by Labour Inspectors. Any compensation awarded will be given priority in the distribution of assets in the case of insolvent companies.
  19. 19. What does a JLC have to take into account now before proposing an ERO?  The JLC for a sector must now take cognizance of the following;  Legitimate financial and commercial interests of the employers  Efficient, economical and sustainable work practices  Agreeing and maintaining fair and sustainable minimum rates of remuneration
  20. 20.  Maintaining harmonious industrial relations  The levels of employment and unemployment in the sector  The general level of wages in comparable sectors  The current National Minimum Wage  Any National Wage Agreement in force
  21. 21. What powers does the JLC have now for setting rates and conditions?  The JLC can:  Fix minimum hourly rates of remuneration but not more than 2 hourly rates based on length of service in the sector or enterprise concerned  Set statutory minimum conditions of employment  Provide regulations for under 18’s but the National Minimum Wage must apply
  22. 22.  The JLC cannot address:  Time off in lieu of public holidays  Compensation under the Organization of Working Act for working on a Sunday  Payments in lieu of notice  Payments referable to redundancy
  23. 23.  DEFINITION: The industrial dispute means any dispute or difference between:(i) Employers and employers (ii) Employers and Workmen or (iii) Workmen and workmen, which is connected with Industrial disputes may be said to be disagreement or controversy between management and labor with respect to wages, working conditions, other employment matters or union recognition.
  24. 24.  Interest disputes: arising out of deadlocks in negotiation for collective bargaining.  Grievance disputes: may pertain to discipline, wages, working time, promotion, rights of supervisors etc. also some times called interpretation disputes.  Unfair labor practices: those arising out of right to organize, acts of violence, failure to implement an award, discriminatory treatment, illegal strikes and lockouts.  Recognition disputes: over the rights of a TU to represent class or category of workers.
  25. 25.  According to SEC 22 (1) No person employed with a public utility service shall go on strike in breach of contract – Without giving the employer notice of strike, within six weeks before the strike. Before the expiry of date of strike specified in such notice. According to SEC 23; No employee of any industrial establishment shall go on strike during the period when proceedings in any disputes case is going on or when final judgment is awaited .
  26. 26. Industrial Undertaking Works Committee Conciliation officer CG/State Govt. Board Tribunal Labour court Arbitral Tribunal 27 AWARD
  27. 27.  There are two ways in which the basic parties to an industrial dispute- the employer and the employees- can settle their disputes.   Collective bargaining Voluntary arbitration
  28. 28.  It is commonly viewed as less expensive and faster than resolving a dispute in court.  An arbitrator may be a single person or a panel.  Sometimes, however, the parties may agree to submit the dispute to an arbitrator but at the same time, reserve their right to accept or reject the award when it comes.
  29. 29. 1. In case of individual dispute of workman related to discharge, dismissal, retrenchment or termination by any means, now the workman has the right to approach labour court directly without waiting for conciliation proceedings and Govt. reference. But he has to wait for three months for this direct action from the date of filling his application before conciliation officer if the Govt. is not able to complete the reference process within three months. Earlier there was no such direct option available to workman to approach labour court. (Except in some states like Karnataka where State govt. has provided for direct approach to Labour court within 6 months of termination)
  30. 30. 2. Such workman in case of individual dispute has to file claim within time limit period of three years. Earlier there was no such limitation period prescribed under the ID Act. 3. Wage ceiling of supervisor has been enhanced from Rs.1600/- per month to Rs. 10,000/- per month, which means now any person working in any industry doing any manual, unskilled, skilled, technical, operational, clerical or supervisory work drawing wages up to Rs. 10000/- will be a workman. Earlier this limit was up to Rs.1600/-By this amendment the coverage of workman has been increased and more people are covered now under the Act.
  31. 31. 4. Definition of appropriate Govt. has been amplified. Now for the industry, corporation, PSEs owned or controlled by the Central Govt., the appropriate Govt. would be Central Govt. 5. In case of industry under the control of State Govt., appropriate Govt. would be State Govt. 6. Earlier to amendment only judicial officers were eligible to become the Judges (Presiding Officers) of labour court/ tribunal. Now with this recent amendment the Dy. Labour Commissioners/ Joint Labour Commissioners with degree of Law & having 7 years of experience can also become labour court/ tribunal judges.
  32. 32. 7. Every industry employing 20 or more workmen is now under legal obligation to constitute and have a grievance redressal machinery in place in the organization to resolve the workers dispute at the first level. Earlier it was not legally essential. The related provisions which were brought in the ID Act in 1984 were never enforced. 8. Now a provision has been made to execute the labour court/ tribunal decision. Earlier there was no such provision in the Act and even after decision of the labour court/ tribunal there was no machinery to enforce its execution on the employer. Now the labour court/ tribunal shall transmit its award to concerned civil court which shall execute the award as if it is a decree passed by the court.

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