1. Wages
 S. 2 (rr) Wages means all remuneration capable of
being expressed in terms of money, which would, if
the terms of employment, express or implied, were
fulfilled, be payable to a workman in respect of his
employment or of work done in such employment.
 It includes
i. allowances (including D. A. ) to which workman is
entitled.
ii. any travelling concession.
1 AP 11/23/2012

2. Contd…
iii. the value of any house accommodation, or of
supply of light, water, medical attendance or other
amenity or of any service or of any concessional
supply of food grains or other articles.
iv. any commission payable on the promotion of sales
or business or both.
Wages does not include
I. any bonus
II. any gratuity payable on termination of service.
III. any contribution paid or payable to any pension or
provident fund or for the benefit of the workman
2 AP 11/23/2012

3. STRIKES
 S. 2 (q) defines strikes as
i. a cessation of work by a body of persons
employed in any industry acting in combination, or
ii. a concerted refusal of any number of persons who
are or have been so employed to continue to work
or to accept employment, or
iii. refusal under a common understanding of any
number of such persons to continue to work or to
accept employment.
3 AP 11/23/2012

4. Essentials of an industrial strike
 existence of a set of employers and employees
maintaining employment relationship during the
period of strikes or lockouts.
 existence of a dispute, the settlement of which
becomes the object, cause or motive of a strike or a
lockout
 cessation of work by the employees for achieving the
object or cause or motive propelled by the motive
stated above.
4 AP 11/23/2012

5. Cessation of work
 Stoppage, abandonment, omission of performance
of duties of their posts,
 hampering or deducing normal work,
 hindrance of the working,
 suspension of work,
 discontinuing the employment, etc.
5 AP 11/23/2012

6. When cessation of work?
 Can be anytime and in any form.
 Must be temporary not forever
 Must be of work
 May be nominal for a few minutes
 Mere passing of a resolution of strike does not
amount to strike
6 AP 11/23/2012

7. Objects of strikes
 Strikes are resorted to by the workers
a) For achievement of some economic gains
b) For defense of mutual interests
c) For promotion of union objectives
7 AP 11/23/2012

8. Forms of strikes
 Implied from the circumstances
 Stay-in strikes
 Tools down strikes/Pen down Strikes
 Token Strikes
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9. LOCK-OUTS
 S. 2 (l) Lock-out means a temporary closing of a
place of employment, or the suspension of work, or
the refusal by an employer to continue to employ any
number of persons employed by him.
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10. Essentials of Lock-out
 a temporary closing of the place of employment, or
suspension or withholding of work by the employer
in some form.
 an element of demand for which the place of
employment is locked-out or closed.
 an intention to re-employ the workers if they accept
demands.
 the employer is motivated by coercion.
10 AP 11/23/2012

11. Objects of lock-out
 The employers usually resort to lock-out when they
want the workers to come down to the terms of
management and accept the conditions of service.
 The management uses it as a tool to coerce the
workers to come down in their demands in regard to
conditions of service.
11 AP 11/23/2012

12. Difference between Strike and Lock-out
 Strike  Lock-out
 A weapon in the hands of the  A weapon in the hands of the
workers employer to coerce or
pressurise workmen
 A cessation of work by persons  Temporary closing of place of
employed in an industry acting work or suspension or
in combination withholding of work.
 A concerted refusal of any no.  An element of demand for
of persons to continue work or which the place of work is
to accept employment closed
 A refusal under a common  An intention to re-employ if
understanding of such persons. workers accept demands.
12 AP 11/23/2012

13. Prohibition of Strikes and Lock-outs
 S. 22 Strikes in Public Utility Services
(1)No person employed in a PUS shall go on strike in
breach of contract
a) without giving to the employer notice of strike,
within 6 weeks before striking, or
b) within 14 days of giving such notice, or
c) before the expiry of the date of strike specified in
any such notice as aforesaid, or
d) during the pendency of any conciliation
proceedings before a conciliation officer and 7
days after the conclusion of such proceedings.
13 AP 11/23/2012

14. Contd…
 S. 22 Lock-outs in Public Utility Services
(2)No employer carrying on any public utility service
shall lock-out any of his workmen
a) without giving them notice of lock-out, within 6
weeks before locking-out, or
b) Within 14 days of giving such notice, or
c) before the expiry of the date of lock-out specified in
any such notice as aforesaid, or
d) during the pendency of any conciliation
proceedings before a conciliation officer and 7 days
after the conclusion of such proceedings.
14 AP 11/23/2012

15. Illegal Strikes and Lock-outs
 S. 24 A strike or lock-out is illegal if
1) It is commenced or declared in contravention of Ss.
22 or 23, or
2) Is continued in contravention of an order made
under S. 10 (3) or S. 10 (4-A)
3) A lock-out declared in consequence of an illegal
strike or a strike declared in consequence of an
illegal lock-out shall not be deemed to be illegal.
15 AP 11/23/2012

16. Penalties relating to strikes and lock-outs
 S. 26 (1) Any workman - punishable with imprisonment for a
term which may extend to 1 month, or with fine which may
extend to
Rs. 50 or with both.
 S.26 (2) Any employer - punishable with imprisonment for a
term which may extend to 6 months, or with fine which may
extend to Rs. 1000/- or with both.
 S. 27 Persons instigating or enticing others to take part in, or
otherwise act in furtherance of an illegal; strike or lock-out -
imprisonment for a term which may extend to 6 months, or
with fine which may extend to Rs. 1000/- or with both.
16 AP 11/23/2012

17. Prohibition of financial aid
 S. 25 prohibits persons from knowingly expending
or applying any money in direct furtherance or
support of illegal strike or lock-out .
 S 28 provides for an imprisonment for a term which
may extend to 6 months, or with fine which may
extend to Rs. 1000/- or with both.
17 AP 11/23/2012

18. LAY-OFF
 S. 2 (kkk) Lay-off means the failure, refusal or
inability of an employer to give employment to a
workman
(a) whose name is borne on the muster-rolls of his
industrial establishment and
(b) who has not been retrenched. The failure, refusal,
or inability to give employment may be due to
(1) shortage of coal, power or raw materials, or
(2) the accumulation of stocks, or
(3) the breakdown of machinery, or
(4) Natural calamity or for any other connected
reasons.
18 AP 11/23/2012

19. Essentials of Lay-off
 Failure or refusal or inability of the employer to
continue employees in his employment.
 Laid off employees must be on the muster-rolls of
the establishment on the day of lay-off.
 Failure, refusal, or inability to give employment may
be due to
a. shortage of raw materials or
b. accumulation of stocks or
c. breakdown of machinery or
d. natural calamity or
e. some other reason.
19 AP 11/23/2012

20. Difference between Lock-out and Lay-off
 Lock-out  Lay-off
 Temporary closing of place of  Refusal of employer to employ
work or suspension of work. due to shortage of coal, power,
raw materials, accumulation of
stocks, breakdown of
machinery, natural calamity,
any other reason
 Employer’s tool to coerce/
pressurize workmen  For trade reasons beyond the
control of the employer
 Result of industrial dispute and
continues during the period of  Not concerned with a dispute
dispute with the workmen
20 AP 11/23/2012

21. RETRENCHMENT
 S. 2 (oo) Retrenchment means “ to end, conclude or
cease. It means the termination by the employer of
the service of a workman for any reason whatsoever,
other wise than as punishment inflicted by way of
disciplinary action.
 It does not include :
a. Voluntary retirement of the workman; or
b. Retirement of the workman on reaching the age of
superannuation if the contract of employment
between the two contains a stipulation in that
behalf; or
21 AP 11/23/2012

22. Contd…
bb. termination of the service of the workman as a
result of the non-renewal of the contract of
employment between the employer and the
workman concerned on its expiry or of such
contract being terminated under a stipulation in that
behalf contained therein; or
c. termination of the service of a workman on the
grounds of continuous ill-health.
CLOSURE
S. 2 (cc) It means the permanent closing down of
a place of employment or part thereof.
22 AP 11/23/2012

23. Difference between Retrenchment and
Closure
Retrenchment Closure
1. It is termination by the 1. It means the closing
employer of service of down of the business
the workman for trade reasons and
otherwise than as affects all the
punishment and workmen.
affects only some of
the workers. 2. This is the total
2. Services are closure of work by an
terminated on account employer.
of surplus labour.
23 AP 11/23/2012

24. Contd…
Retrenchment Closure
3. The trade or business 3. The business itself is
remains uninterrupted. discontinued.
4. Compensation
payable
24 AP 11/23/2012

25. Difference between Retrenchment and Lock-out
Retrenchment Lock-out
1. Retrenchment is 1. Lock-out is temporary.
permanent.
2. The relationship 2. The relationship
between employer subsists. It is only
and employee is suspension of
severed completely. relationship.
3. Is resorted to, to 3. Is with the motive to
dispense with surplus coerce the workman
to accept the
labour. demands of the
4. It is not due to any employer.
dispute . 4. It is due to and during
an industrial dispute.
25 AP 11/23/2012

26. Difference between Lock-out and Closure
Lock-out Closure
1. Only place of business 1. The business itself is
is closed. closed.
2. Indicates the closure 2. Indicates the final and
of place of business, irrevocable
not the place of termination of the
employment business.
3. Is weapon of coercion 3. Is for trade reasons.
for the employers.
26 AP 11/23/2012

27. Contd…
Lock-out Closure
4. There is a suspension 4. There is severance of
of the employer- the employer-
employee relationship. employee relationship.
5. It is due to the 5. It need not be a
apprehension or consequence of an
existence of industrial industrial dispute.
dispute.
27 AP 11/23/2012

28. Similarities between Lock-out and
Closure
Lock-out Closure
1. Cessation of work
1. Cessation of work. 2. A fundamental right
and workers cannot
grudge
3. Result of actual loss
or apprehended loss
or disinclination to run
the business at risk.
28 AP 11/23/2012

29. Applicability
 S. 25-A The provisions of S. 25C to 25E shall apply
only to industrial establishments in which more than
50 workmen on an average per working day have
been employed in the preceding month but not to
those establishments
1. to which certain special provisions of chapter V-B
apply,
2. in which less than 50 workmen on an average per
working day have been employed in the preceding
calendar month,
3. which are of a seasonal nature or in which work is
performed only intermittently.
29 AP 11/23/2012

30. Continuous Service (S. 25-B)
 (1)A person is said to be in continuous service for a
period if he is in uninterrupted service, including
service which is interrupted on account of :
 Sickness, or
 Authorized leave, or
 An accident, or
 A legal strike , or
 A lock-out or cessation of work which is not due to
any fault of the workmen.
30 AP 11/23/2012

31. Contd…
 (2)A workman shall be deemed to be in continuous
service under an employer for 1 year, if he has,
during a period of 12 calendar months preceding the
date with reference to which calculation is to be
made, actually worked under the employer for not
less than
1. 190 days in the case of a workman employed
below ground in a mine, and
2. 240 days in any other case.
31 AP 11/23/2012

32. Contd…
A workman shall be deemed to be in continuous
service for a period of 6 months, if he has, during a
period of 6 calendar months preceding the date
with reference to which calculation is to be made,
actually worked under the employer for not less
than
1. 95 days, in the case of a workman employed below
ground in a mine, and
2. 120 days in any other case.
32 AP 11/23/2012

33. Right of workmen laid-off for
compensation S. 25 (C)
 Compensation is given to relieve the workmen of
hardship caused by unemployment due to no fault of
the workman.
 To claim compensation the requirements are
1. The workman should not be a badli worker or a
casual worker.
2. His name must be borne on the muster rolls of the
industrial establishment.
3. 1 year of continuous service must be completed.
33 AP 11/23/2012

34. Contd…
 The workman is entitled to compensation for all days
except the weekly holidays as may intervene, if all
above conditions are fulfilled.
 Rate of compensation = 50% of the total basic
wages and D. A.
 No compensation shall be paid, if during the 12
months, a workman is laid- off for more than 45
days, if an agreement between the employer and
employee subsists to that effect.
 In such a case the employer can retrench the worker
at any time after the expiry of the first 45 days of lay-
off.
34 AP 11/23/2012

35. Contd…
 In such a case the amount of compensation paid on
account of lay off shall be set off against
compensation payable for retrenchment.
35 AP 11/23/2012

36. Machinery for settlement of Industrial
Disputes
 Conciliation Machinery
1. Works Committee
2. Conciliation Officer
3. Board of Conciliation
4. Courts of Enquiry
 Adjudication Machinery
1. Labour Courts
2. Industrial Tribunal
3. National Tribunal
36 AP 11/23/2012

37. Works Committee
1. Constituted in an organization wherein 100 or more
workmen are employed or have been employed on any
day in the preceding 12 month
2. Number of representatives of workmen in the Works
Committee not be less than the number of
representatives of the employers.
37 AP 11/23/2012

38. Contd...
 The number of members shall be fixed so as to allow
representation of various categories, groups, classes of
workmen engaged – maximum 20 members.
 The representatives of employers – nominated by the
employers – shall be officials in direct touch with or
associated – establishment.
The members – elected in two groups
i) To be elected by workmen of establishment - not
members of registered Trade Unions
ii)To be elected by workmen of the establishment of the
registered Trade Unions.
38 AP 11/23/2012

39. Functions of Works Committee:
 The works committee promotes measures to secure and promote amity
and good Industrial relations.
 Comments on any frictions of common interest and concern and helps
reduce the differences between the two.
 It sorts and smoothens the frictions that might arise between the
employer and the workmen.
 Its decision carries great value but it is not conclusive and of no value if
not fairly represented.
 Promote goodwill and harmony between employers and employees and
welfare of the workers
 Deals with the day-to-day internal matters relating to safety , vocational
training, apprenticeship, supervision of recreation and other nurseries.
 It is only a negotiating body to promote harmonious and friendly
relations.
39 AP 11/23/2012

40. Conciliation Officer
 S. 4 states that the appropriate government may by
notification in the Official Gazette, appoint
conciliation officers for a specific area or for a
specified industry or industries in area.
40 AP 11/23/2012

41. Powers of Conciliation Officers
 May call for and inspect any document which he has
ground for considering to be relevant to the industrial
dispute.
 The conciliation officer may for the purposes of
inquiry into any existing or apprehended industrial
dispute after giving reasonable notice enter the
premises occupies b any establishment to which the
dispute relates.
41 AP 11/23/2012

42. Board of conciliation
 S. 5 The A. G. may notification in the Official
Gazette, constitute constitute a Board of Conciliation
for promoting the settlement of an industrial dispute.
 It consists of of a Chairman and 2 or 4 members.
 Chairman is independent person.
 Independent person is a person who is not related to any
industrial dispute or any industry appointed by such
dispute.
42 AP 11/23/2012

43. Duties (S. 13)
1. Whenever a dispute is referred to a Board, the
Board shall endeavour to bring about a settlement
of the same.
2. The Board shall without delay investigate and all
matters affecting the merits and the right
settlement thereof.
3. It may do all such things as it thinks fit for the
purpose of inducing the parties to come to a fair
and amicable settlement of the dispute.
4. In case a settlement is reached, the Board shall
send a report to the Government with a
memorandum of settlement signed by the parties.
43 AP 11/23/2012

44. Contd…
5. Otherwise the Board shall send a report stating full
facts and circumstances, the steps taken, the reasons
for failure to settle and its recommendations for the
determination of the dispute.
6. If the non-settlement is in case of a public utility service,
the A. G. may refer the matter to the Labour Court,
Tribunal or National Tribunal under S. 10, on receipt of
a report. It has to record and communicate to the
parties therefor if it does not do so.
7. Report to be submitted within 2 months from the date
on which the dispute was referred to it, or earlier as
may be fixed by the A. G.

 The most important difference between S. 12 and S.13 is
that the Board has jurisdiction only if the matter is
referred to it by the A. G.
44 AP 11/23/2012

45. Courts of Enquiry
 S. 6 The A. G. may by ntfn. in the O. G. , constitute
a Court of Enquiry to enquire into any matter
connected with an industrial dispute.
 A Court may consist of one or more independent
persons. In case it consists of 2 or more members
one of them shall be appointed as a Chairman.
 A court may act in the absence of the chairman,
provided the required quorum is formed, but it shall
not function if the services of the chairman have
ceased to exist, unless a new chairman has been
appointed.
45 AP 11/23/2012

46. Duties of the Court of Enquiry (S.14)
1. To inquire into the matter referred to it by the A. G.
2. To make a report to the A. G. on the enquiry held
on matters referred to it.
3. When a matter is referred to a court, it shall inquire
and make a report within 6 months from
commencement of the enquiry.
46 AP 11/23/2012

47. Labour Courts (S. 7)
 The A. G. by ntfn in the O. G. , may constitute one or
more Labour Courts for adjudicating of industrial
dispute relating to any matter specified in the 2nd
Schedule and for performing any other function as
may be assigned to them under the I D Act.
 It shall consist of only 1 person appointed by the A.
G., known as the presiding officer.
47 AP 11/23/2012

48. Qualifications for appointment of a
Presiding Officer of a labour court
1. Is or has been a Judge of a High Court, or
2. Has been a District Judge or an Additional Judge
for a period of not less than 3 years, or
3. Has been a chairman or any other member of the
Labour Appellate Tribunal or of any other Tribunal
for a period of not less than 2 years, or
4. Has held any Judicial Office in India for not less
than seven years, or
5. Has been presiding officer of a Labour Court
constituted under any Provincial Act or State Act
for not less than 5 years.
48 AP 11/23/2012

49. Duties of Labour Court ( S. 15)
1. Hold the proceedings expeditiously, and
2. Submit its award to the A. G. soon after the
conclusion of proceedings.
Though no time limit is mentioned the proceedings
are expected to be completed without going into
the technicalities of the Civil Courts.
49 AP 11/23/2012

50. Industrial Tribunals S. (7- A)
 The A. G., may by ntfn. , in the O. G. constitute one
or more Industrial Tribunals for the Adjudication of
industrial disputes relating to any matter whether
specified in schedules II or III.
 It shall consist of only 1 person appointed by the A.
G.
50 AP 11/23/2012

51. Qualifications for appointment of
Presiding Officer - Industrial Tribunal
1. Is or has been a Judge of a High Court, or
2. Has been a District Judge or an Additional Judge
for a period of not less than 3 years, or
3. Has been a chairman or any other member of the
Labour Appellate Tribunal or of any other Tribunal
for a period of not less than 2 years.
51 AP 11/23/2012

52. National Tribunals S. (7- B)
 The Central Govt., may by ntfn. , in the O. G.
constitute one or more National Industrial Tribunals
for the Adjudication of industrial disputes relating
which in the opinion of the Central Govt. 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.
 It shall consist of only 1 person appointed by the
Central Government.
52 AP 11/23/2012

53. Qualifications for appointment of
Presiding Officer - National Tribunal
1. Is or has been a Judge of a High Court, or
2. Has been a chairman or any other member of the
Labour Appellate Tribunal or of any other Tribunal
for a period of not less than 2 years.
 The Central Government may appoint two persons
as assessors to advice the National Tribunal in the
proceedings before it.
53 AP 11/23/2012

54. Disqualifications of Presiding Officer
No person can be appointed or can continue in the
office of the Presiding Officerof a Labour Court,
Tribunal, or National Tribunal, if
1. He is not an independent person, or
2. He has attained the age of sixty five years.
54 AP 11/23/2012