Industrial and labour laws (comprehensive)

Industrial and Labour Laws
(Comprehensive)

Historical development of labour
law
• The origins of labour law can be traced back
to the remote past and the most varied parts
of the world.
• Asian scholars have identified labour
standards as far back as the Laws of
Hammurabi and rules for labour-
management relations in the Laws of Manu;
• European writers often attach importance to
the guilds and apprenticeship systems of the
medieval world,

• Latin American authors point to the Laws
of the Indies promulgated by Spain in the
17th century for its New World territories.
• None of these can be regarded as more
than anticipations, with only limited
influence on subsequent developments.

• Labour law as it is known today is
essentially the child of successive
industrial revolutions from the 18th century
onward.
• Labour law became necessary when
customary restraints and the intimacy of
employment relationships in small
communities ceased to provide adequate
protection.

• Protection. against the abuses incidental
to new forms of mining ;
• Manufacture on a rapidly increasing scale
• At precisely the time when the 18th-
century Enlightenment, the French
Revolution, and the political forces that
they set in motion were creating the
elements of the modern social
conscience.

• It developed rather slowly, chiefly in the
more industrialized countries of Western
Europe, during the 19th century and
attained its present importance, relative
maturity, and worldwide acceptance only
during the 20th century.

• In India children between the ages of
seven and 12 were limited to nine hours of
work per day in 1881 and adult males in
textile mills to 10 hours per day in 1911.
• The first major advance was the
amendment of the Factory Act in 1922 to
give effect to conventions adopted at the
first session of the International Labour
Conference at Washington, D.C., in 1919.

Elements of labour law
• The basic subject matter of labour law can be
considered under nine broad heads:
1. employment;
2. individual employment relationships;
3. wages and remuneration;
4. conditions of work;
5. health, safety, and welfare;
6. social security;
7. trade unions and industrial relations;
8. the administration of labour law;
9. and special provisions for particular occupational or
other groups.

Evolution of Labour law in
India
• Labour law in INDIA is also known as the
Industrial Law. The current labour law
legislation in India is an adjunct of British
colonialism.
• The industrial or labour law that was
enacted by the British was to protect the
British employers, especially of Textile
Mills in England.

Historical Perspectives on Indian
Labour Legislations.
• Initial periods of imperialism were based
on exploitation of the worker class.
• With the emergence of ILO at an
international level and with the inhumane
treatment meted out to workmen being
replaced with an outlook of dignity of
labour, the whole scenario of labour
legislations began in pre- independence
India.

• Thus came the Factories Act. It is well
known that the Indian textile industry
offered stiff competition with that of the
British textiles in the export market in
1880.
• So the British government imposed a law
called the "The Factories Act, 1883". This
was mainly done to protect the British
Employers and to reduce the export of
Indian Textiles.

• It was then that the Labour system of India was
changed
• A strict stipulation of :
1. Eight hour work was implemented.
2. Abolition of child labour was imposed,
3. Restriction of women to work in night,
4. And the introduction of wages for over time
working.
• While the impact of these measures were clearly
welfarist, they were clearly protectionist.

• Then came The Trade Disputes Act,
1929. This was to regulate the relationship
between the employee and the employer.
• Provisions regarding the act of strike and
lock out was clearly defined in this act.

• The Indian Labour Legislations owe its
existence to the British Raj.
• Most of the labour legislations were
enacted prior to India’s independence.

• After independence, India made various
changes in the Acts that were originally
enacted by the British government.
• New laws and amendments were added to
the Indian Constitution.
• A tripartite conference was held
in December 1947. Members of the
tripartite conference were Employees,
Employers and Members of Trade Unions.

Tripartite Labour Conference
Of December 1947
• In this tripartite meeting, it was agreed that
employee would be given fair wages and
fair working conditions and in return the
employer may receive the fullest co-
operation of Labour for uninterrupted
production and higher productivity as part
of the strategy for national economic
development.

• The post independence enactment of important
legislations in the areas of employee security and
welfare derive their origin partly from:
1. the vision of independent India’s leaders
2. and partly from the provisions in the Indian
Constitution,
3. the Tripartite Labour Conference
Of December 1947,
4. and lastly from the international conventions like
the International Labour Organization (ILO).

• After independence legislations related to
workers’ welfare like:
1.Provident Fund Act,
2.Employee State Insurance Act,
3.Payment of Bonus Act and
4.Payment of Gratuity Act
were enacted with the intention of providing
security and retirement benefits to workmen.

• Over a period of time several amendments have
been made to the existing labour legislations as per
the needs of the industry.
• The case in point is the latest amendment to the
Factory Act whereby women worker are allowed to
work between 7pm and 6am.
• Such amendments were made after
recommendations from industry associations to the
labour ministry.
• Now BPO and IT sector which employs a large
women workforce during its nightshifts ,benefited
tremendously from this amendment to the Factory
Act

Role of India’s Constitutional
Framework on Indian 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 laws and State
Governments
• Under the Constitution of India, Labour is
a subject in the concurrent list where both
the Central and State Governments are
competent to enact legislations.
• There are also Labour laws enacted and
enforced by the various State
Governments which apply to respective
States.

Industrial Conflict
• Conflict is inherent in industrial relations
today.
• Interest of labour and management are
usually opposite. This manifests itself in
• The prevailing unrest , work stoppages
resulting from strikes or lock-outs , slowing
down of production etc.

• When issues of conflict are submitted to
the management for negotiation, they take
the form of industrial disputes.
• Special causes of industrial conflict may
be treated as causes of industrial
disputes.;

• To prevent & resolve industrial disputes
• Securing amity & good relations between
workers & management, for common
good

• Industrial Dispute is :
• Any dispute between :
– Employers & employers
– Employers & workmen
– Workmen & workmen
• Connected with
– The terms of employment or non-employment
– Conditions of labour of any person.

• Any person (including an apprentice)
– employed in an 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 purpose of this Act includes
– any such person who has been dismissed discharged
or retrenched in connection with or as a consequence of
an industrial dispute or whose dismissal or
retrenchment has led to the dispute

• But, does NOT include a person :
– who is subject to Army Act, 1950 , Air Force
Act 1950 or Navy Act 1957
– Who is employed in police service as an
officer or other employee of a prison
– Who is employed mainly in managerial or
administrative capacity
– A supervisor drawing wages exceeding a
specified amount Rs 10,000pm (mentioned in
the Rules)

• Any systematic activity carried on by cooperation
between employer & his workmen (whether
workmen are employed directly or through an
agency) for the production, supply or distribution of
goods or services.
• or services with a view to satisfy human wants or
wishes (not being wants or wishes which are merely
spiritual or religious in nature), whether or not,-
• Whether or not any capital has been invested or
such activity is being carried out for the purpose of
making profits

• But it DOES NOT include:
• Any agricultural operation (except when the Agri-
operation is integrated with another activity & that
is the predominant one)
• Hospitals or dispensaries
• Educational, scientific, research or training
institutions
• Khadi or village industry
• Any sovereign function of the govt
• Any domestic service
• Any profession practiced by an individual if the
number of persons employed by the individual is
less than ten
• Cooperative society employing less than 10
persons

• Authorities appointed under ID Act :
– Works Committee
– Conciliation Officer
– Board of Conciliation
– Court of Inquiry
– Labour Court
– Industrial Tribunal
– National Tribunal

• What is the statutory requirement for constituting WC?
– Every Industrial establishment in which: 100 or more
workmen are employed or
– have been employed on any day in the preceding 12
months.
• Whom does it consist of ?
– Bipartite – representatives of both
– Representatives of workmen equal to that of
employer ,
– Term of representatives shall be 2 years
• Which type of issues handled ?
– Matters arising out of the day to day working of the
organisation (e.g. health, safety , welfare of
employees , productivity , quality, cost
consciousness)

Conciliation Officer(CO)
• Appropriate govt. may appoint CO
• CO may be Labor officer(less than 20 workmen),Labor
Commissioner or Deputy Com for more than 20.
• CO work is to induce both the parties to the dispute to
come to fair and amicable settlement.
• Mediation (negotiate on proposal made by
mediator/s Conciliation( own proposal)
• Send a report (proceedings- successful or failed) to govt.
within 14 days of start of proceedings
• After considering the govt may refer the dispute to BOC ,
Labour court, Tribunal or national tribunal.

Board of concilliation
Composition :Chairman and 2 or 4
members
Duties & power same as conciliatory officer
: if dispute is settled – then report is to be
sent to appropriate Govt.
: if not, then also submit report to Govt
within 2 months

Courts of Inquiry (COI)
• The app govt may constitute Commission
Of Inquiry connected with a particular
dispute
• A COI may consist of one or more
persons as members.
• Inquire into the report and submit to govt
within 6 months from commencement of
inquiry.
• Inquire and reveal the case

Labour court
• The app govt may appoint a Judge to the Labour
Court – any matter specifies in II Schedule
• Composition – consist of 1 person – should be or
have been a judge of HC, or for 3 yrs been a district
judge or an add district judge, have held any judicial
office in India for 7 yrs,
• Matters in II schedule: under standing order,
• Application or interpretation of SO, discharge or
dismissal of workers, workers wrongly dismissed,
withdrawal of concession or privilege, illegality of
strike or lockout, all matters other than III schedule

Tribunals
• Whether in II schedule or III
• Consist of 1 person – should be or have been a
judge of HC, or for 3 yrs been a district judge or an
add district judge
• Matters; wages , including period, mode of payment,
compensatory allowances, hrs of work, intervals,
leave with wages, bonus , profit, pf gratuity, shift
work, classification fo grades, rules of discipline,
retrenchment, closure,

National Tribunal
• Central govt may refer the dispute to NT :
if the matter is of national importance
• The parties to an industrial dispute are
required not to resort to work stoppage if
dispute is pending before the Board of
Conciliation or adjudication authority.

Methods for settlement and
prevention of Industrial dispute
Collective Bargaining: Steps
• Presentation in collective manner(demands
and grievances)
• Discussions, bargaining and negotiations on
mutual grounds
• Signing of formal agreement or informal
understanding
• In event of failure, likely resort to strikes or
lock outs.

Conciliation and Mediation
• Bargaining with the help of a third party is
called Conciliation or Mediation
• The aim of conciliator is to break the
deadlock ,explain the view point of one
party to the other, convey messages and
keep the negotiation going.
• Parties may or may not accept the
suggestions.

Adjudication
• Under the condition when dispute is not
settled and parties adhere to strikes and
lockouts, Govt may decide to refer the
dispute to adjudication and force the
parties to abide by the award of the
adjudicator
• Prohibit the party from work stoppages.

• Compulsory method in which parties are
forced to go by the power of the state.
• Decision imposed by third party
• Basis of decision is law and justice
• Referred to Court of Arbitration or Tribunal
or Labour Court

Voluntary Arbitration
 When the parties feel that mutual
negotiations will not succeed ,it may
decide to submit the dispute to a neutral
person or group of persons for arbitration.
 Award given may or may not be binding
on parties

• Sec. 10 (A) (1): Before the Govt. refers a dispute to
adjudication, the employer & workmen, can voluntarily
refer it to an arbitrator(s) through a written agreement.
• If there are an even number of arbitrators are there an
umpire shall be appointed whose decision shall prevail if
the others are equally divided in their opinion.
• A copy of the arbitration agreement shall be sent to the
appropriate Govt. and the conciliation officer and the
same shall be published in the official gazette within one
month.

• When the Govt. is satisfied that the persons
who have signed the arbitration agreement
represent the majority of each party , the dispute
is referred to arbitration and the Govt. issues a
notification (The dispute shall be settled through
arbitration ) and …….
• When a dispute has been referred to arbitration
and a notification has been issued, the Govt.
may prohibit the continuance of a strike or lock
out
• The arbitrator (s) shall investigate the dispute
and submit the award to the appropriate Govt.

• Karnal Leather Karamcjari Sanghathan Vs. Liberty
Footwear Co. , AIR 1990 , SC
• Question : If an arbitration agreement is not
published, will the arbitrator’s award still be valid ?
• Facts :
• Workers’ Union claimed that the management had
illegally terminated more than 200 workmen .
• Workers went on strike ….. Violence ….. Police…..
Deputy Commissioner….. Labour Commissioner

• Both parties agreed to get the dispute settled through an
arbitration committee consisting of 5 persons (2 from the
management, two from the Union with the Deputy
Labour Commissioner as the President)
• The committee gave its award to reinstate 159 workers
• The management did not reinstate the workers ….…
another dispute arose!
• The management challenged the validity of the
arbitration award ….. Writ petition in the High Court
• The ground ….. the arbitration agreement was not
published in the official gazette as per requirement of
subsec. 3 of Sec. 10 (A)of ID Act .
• The High Court accepted the writ petition i.e.
requirement of publishing the agreement is mandatory.
• Workmen appealed to the Supreme Court
• SC : upheld the HC decision , i.e. the arbitration
agreement must be published without which the validity
of arbitral award is questionable.

• 2(q) : Cessation of work by a body of persons employed
in an industry acting in combination , or a concerted
refusal , or a refusal under common understanding of
any number of persons who are or have been so
employed to continue to work or accept employment.
• Relevant provisions : Sec. 10(3) ; 10A
(4A); 22-28

• STRIKE : A concerted and temporary
cession of work by workers with a view to
furthering or protecting their interests and
rights an securing a fufillment of their
specific demands
• LOCKOUT : temporary closing of place of
employment or the suspension of work or
refusal by an employer to continue to
employ any number of persons employed
by him or her

• 10 (3) : App. Govt. can prohibit the
continuance of a strike in connection with
a dispute referred to BOC, LC, IT or NT
• 10 A (4A) : App. Govt. can prohibit the
continuance of a strike in connection with
a dispute referred to arbitration and a
notification is issued u/s 10(3A)

Forms of strike
• Authorized strikes
Only when union has given consent or the
union has given the call for strike
• Unauthorized strike or Wild Cat strike
1. The strike has been called by a section of
workmen without the approval of the union
and a strike notice to the management.
2. Strike by a section of workmen on the spur
of moment without any formal preparation,
any formal notice to the employer or consent
of relevant unions

General Strikes called by a political party
• Wide coverage.
• Depending on strike, confined to city, or
industries are included.
Particular Strikes
• Limited in scope , confined to single plant
or a few plants and to a single trade or
occupation in a particular town or city.

• Work-to-rule strike:
Employees declare that they will perform their
tasks strictly in accordance with the rules
prescribed . may result in slow down.

• Sympathetic Strike :
Conducted out of sympathy for the cause
of another group of workmen, most often
from another unit or company.
• Gherao:
Involves confinement of authorities in
their offices by workers to exert pressure
on management to accept their demands

Types based on Techniques
• Slow –down strike: workers do not stop
working ,rather they slow down the pace of
work
• Quickie (Limited Time; Preannounced)
strike : Workers remain in their place of
work, but they stop work for a brief period for
few minutes or hours.
• Sit-down strike: Workers remain in their
place of work but they do not work. Duration
is long .

What Form Does a Strike
Assume
• Workers quit their places of work and stop
working
• They prevent others, mostly by
persuasion or picketing, but occasionally
by violence, from joining work or by new
workmen replacing them

• Sec. 23 : No person employed in any industrial
establishment shall go strike in breach of contract and no
employer shall declare lockout :
– During the pendency of conciliation proceedings
before a board and 7 days after the conclusion of
such proceedings
– During the pendency of proceedings before a Labor
Court , Tribunal or national Tribunal and two months
after the conclusion of such proceedings.
– During the pendency of arbitration proceedings
before an arbitrator and two months after the
conclusion [Sec. 10A (3a)]
– During any period in which a settlement or award is in
operation in respect of any matter covered by the
settlement or award.

• Sec. 22 : Prohibition of Strikes & Lock Outs
• (1)No person employed in a Public Utility
Service shall go strike in breach of contract-
– Without giving to the employer , notice of strike, within
6 weeks before striking or
– Within 14 days of giving the notice or
– Before the expiry of the date of strike specified in
such notice
– During the pendency of any conciliation proceedings
before a CO & 7 days after the conclusion of such
proceedings.

Public Utility Service
• Any railway service or any transport service
• Any service in major port and dock
• Any postal, telegraph or telephone service
• Any industry which supplies power, light or
water to public
• Sanitation
• Any industry specified in the First Schedule

• Sec, 22 (2) :No employer carrying on a Public
Utility Service shall lock out any of his workmen -
– Without giving them, within 6 weeks before locking out
– Within 14 days of giving the notice
– Before the expiry of the date of Lock out specified in
such notice
– During the pendency of any conciliation proceedings
before a Conciliation Officer & 7 days after the
conclusion of such proceedings.

Employer’s obligation :
• Employer is required to inform the
appropriate govt. about any notice of strike
received from the workmen or any notice
of lock out given by the employer, within 5
days of receiving or giving such notice.

• Notice of lockout is not necessary when
strike is already in existence , but
intimation of the same is to be sent to the
authority specified by appropriate govt.
• Notice of strike is not necessary when
lockout is already in existence , but
intimation of the same is to be sent to the
authority specified by appropriate govt.

• A strike or lock out shall be deemed to be
illegal if :
• It is commenced in contravention of
section 22 or 23
• In case of arbitration – strike prohibit
• A lock out in consequence of an illegal
strike is NOT illegal and a strike in
consequence of an illegal lockout is NOT
illegal.

• Sec. 25 : No person shall knowingly spend
any money to support an illegal strike or
lockout.

• All India bank Employees Union Vs. National Industrial
Tribunal , AIR 1962, SC
• Ar. 19 (1)(c ) of The Constitution of India :
• The Unions contention was: Right to form a Union is a
guaranteed provision. It implies that the right to strike
should be guaranteed , which is necessary to achieve
the objectives of the Union (e.g. Collective bargaining)
• The Supreme Court rejected the contention ; it stated
that the right to strike is not an unfettered right. It is
controlled or restricted by appropriate legislation.

• 2 (kkk) : Failure , refusal or inability of an
employer on account of :
– Shortage of coal, power or raw material
– accumulation of stock
– Breakdown of machinery
– Natural calamity
– Or any other connected reason to give
employment to a workman whose name is borne
on the muster rolls of industrial establishment
and who has not been retrenched.
Lay off results in temporary unemployment

Application of provisions of
Act
Do not apply in establishments
• A). in which less than fifty workmen on an
average per working day have been
employed in preceding calendar month
• B). which is of seasonal character or in
which work is performed only
intermittently.

• Uninterrupted Service
• Including service interrupted on account of :
1.sickness /accident
2.authorized leave
3.Legal strike
4.Lock Out
5.Any cessation of work without the fault of
workmen

Continuous service of One Year :
• In 12 calendar months, actually worked for at
least
– 190 days – establishment below ground
– 240 days – any other case
• The number of days on which workman has
actually worked shall include:
– Days laid off
– Leave with full wages
– Absent due to temporary disablement caused
by accident arising out of & in the course of
employment
– Maternity leave of max 12 weeks

Right of workmen laid off for
compensation
• A workman other than badli or casual workman
whose name is on the muster rolls and who has
completed one year of continuous service ,if laid
off ,is entitled to 50% of the total basis wages
and dearness allowance.
• If workman is laid off for more than 45 days ,no
compensation is payable in respect of any
period of lay off after expiry of first 45 days.
• It is lawful for the employer to retrench the
workmen at any time after expiry of 45 days and
compensated accordingly.

• If workman refuses to accept alternative
employment in the same est. or another
est of the same employer situated within a
radius of 5 miles, if this employment does
not call for any special skill or experience
& the wages are also the same.
• If he does not present himself for work
• If lay off is due to a strike or slow down

• 2(ooo) : Termination by the employer of
the service of a workman for any reason
whatsoever, otherwise than as a
punishment inflicted by way of disciplinary
action, but does not include termination
due to :
– Voluntary retirement
– Superannuation
– Non-renewal of service contract
– Continued ill health

RETRENCHMENT – CHAPTER VARETRENCHMENT – CHAPTER VA
• Conditions precedent to Retrenchment 25
F : No workman employed in an industry
who has cont. service of at least one year,
can be retrenched unless
– served 1 month notice indicating reasons for
retrenchment or wages in lieu of it
– has been paid compensation @ 15 days
average pay for every completed year of
continuous service or any part thereof in
excess of 6 months.
– Notice to the app. Govt.

• Employer : application for permission to the app. Govt. and
its copy to the workmen
Appropriate Govt. makes an enquiry – gives the employer &
the workmen an opportunity to present their cases and
decides whether the retrenchment is genuinely required .
App. Govt. passes an order granting or refusing the
permission for retrenchment . Copy of the order is
communicated to both employer and workmen

• Last Come , first go
• Unless the employer records the reasons
for retrenching any other workman.

• Permanent closing of a place of employment or part thereof
• Provisions applicable under chapter VA – (51 to 99 workmen)
• Sec. 25 FF A : Sixty days notice
– Notice of the intention to close down an undertaking is to be
given to the app. Govt. 60 days before the intended date of
closure.
– This condition is not applicable to undertakings :
• employing less than 50 workmen on an average / day
during the past 12 months or
• engaged in construction of roads, bridges, canals or
other construction work.
– Govt. can grant exemption from the requirement of notice
period , under exceptional circumstances (e.g a major
accident in the undertaking requiring it to close down)

• Prohibition of lay off : Sec. 25 M –
• Employer cannot lay off workmen except with
the prior permission of the appropriate govt.
except under the following circumstances :
– Shortage of power
– Natural calamity
– Mine : fire, flood, emission of inflammable gas
or explosion

• Employer : application for permission to the app. Govt. and
its copy to the workmen
decides whether the lay off is genuinely required .
permission for lay off . Copy of the order is

• If the employer has already laid off
workmen due to the permissible reasons
[25 (M) (1)] , one still has to obtain
permission in the prescribed manner in
order to continue the lay off .
• If an application for permission has been
made but app. Govt. does not reply within
60 days, the permission is deemed to
have been granted.

• A Govt order (granting or refusing the
permission shall be a binding on both the
parties and shall be in force for a period of
one year.

• Permanent closing of a place of employment or part
thereof
• Provisions applicable under chapter VA – (51 to 99
workmen)
• Sec. 25 FF A : Sixty days notice
– Notice of the intention to close down an undertaking is
to be given to the app. Govt. 60 days before the
intended date of closure.
– This condition is not applicable to undertakings :
• employing less than 50 workmen on an average /
day during the past 12 mths or
• engaged in construction of roads, bridges, canals or
other construction work.
– Govt. can grant exemption from the requirement of
notice period , under exceptional circumstances (e.g a
major accident in the undertaking requiring it to close
down)

• Every workman who has been in continuous
service of not less than one year, shall be paid
compensation as per sec. 25 F as if he had
been retrenched,i.e. 15 days wages for every
year of continuous service
• Further , if an undertaking is closed down due to
exceptional circumstances beyond the control of
employer, the total amount of compensation
shall NOT exceed 3 months’ avg. pay.

• The following are NOT exceptional
circumstances in this regard :
– Financial losses
– Accumulation of undisposed stock
– Expiry of the period of lease or license
– Mine : exhaustion of minerals in an area

• Employer : application for permission to the app. Govt. and its
copy to the workmen - 90 days before date of intended closure
decides whether the closure is genuinely required .
permission for closure . Copy of the order is

Voluntary Measures for prevention and
settlement of Industrial Disputes
Settlement without state intervention
 Collective Bargaining
 Voluntary Arbitration

Statutory Measures for prevention and
settlement of Industrial Disputes
With Intervention of Govt.
 Compulsory establishment of Bipartite
Committees : e.g. Works Committee
 Establishment of Compulsory Collective
Bargaining
 Conciliation and Mediation : Voluntary or
compulsory
 Compulsory Investigation : e.g. Court of Inquiry
 Compulsory Arbitration or Adjudication

• An employer who intends to close down
an undertaking serves a notice 30 days
before the date on which the intended
closure is to becomes effectives on the
appropriate government. Is the notice
valid??

• No
• As per Section 25FFA of the Industrial
Disputes Act,1947, a notice of 60 days is
required.

What are Industrial Disputes?
• Industrial Dispute means any dispute or
differences between :
1.employers and employers or
2.between employers and workmen
3.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

What are the different categories of
Industrial Disputes?
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.

• The propriety or legality of an order passed by
an employer under the standing orders;
• The application and interpretation of standing
orders which regulate conditions of employment.
• Discharge or dismissal of workmen including
reinstatement of, or grant of relief to workmen
wrongfully dismissed;

• Withdrawal of any customary concession
or privilege;
• Illegality or otherwise of a strike or lock-
out;
• All matters other than those specified in
the Third Schedule.

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 :
• Wages, including the period and mode of payment;
• Compensatory and other allowances;
• Hours of work and rest intervals;
• Leave with wages and holidays;
• Bonus, profit sharing, provident fund and gratuity;
• Shift working otherwise than in accordance with standing
orders;
• Classification by grades;
• Rules of discipline;
• Rationalization;
• Retrenchment of workmen and closure of establishment;
and
• 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 managerial or
administrative capacity.
• Industry means any business, trade,
undertaking, manufacture and includes any
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 above, the
dispute has to be raised by a Union /
Management.

Who are Conciliation Officers
• 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 act as Conciliatory Officers in
different parts of the country.

What do They Do?
• The Conciliation Officer make efforts to
resolve the dispute through settlement
between the workmen and the
management.

What happens when the Dispute is
referred to 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.

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;
• Within(i.e. the strike has to start before the
expiry of) 6 weeks before striking.
• Within(i.e. before the expiry of) 14 days of giving
such notice.
• Before the expiry of the date of strike specified in
such notice.
• During the pendency of any conciliation
proceedings before a Conciliation Officer and 7
days after the conclusion of such proceedings.

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 :
• Without giving to them notice of lockout provided
within 6 weeks before locking out.
• Within 14 days of giving such notice.
• Before expiry of the date of lockout specified in
any such notice.
• During the pendency of any conciliation
proceedings before a Conciliation Officer and 7
days after the conclusion of such proceedings.

Industrial Employment
(Standing Order Act)
STANDING ORDERS ACT, 1946

Industrial Employment (Standing Order
Act)
• There was no uniformity in the conditions of
service of workers until this Act was
promulgated.
• The absence of standing order, clearly
defining the rights and obligations of the
employer
• The demand for statutory service conditions
was first raised by Bombay Cotton Textile
workers in 1927-28.

• The Bombay Industrial Disputes Act of
1938 provided, for the first time, for
statutory standing orders.
• The Labour Investigation Committee
1944-46 observed: “ An industrial worker
has the right to know the terms &
conditions under which he is expected to
follow”.

OBJECTIVES
• To require employers to define the
conditions of work
• To bring about uniformity in terms and
conditions of employment
• To minimize industrial conflicts
• To foster harmonious relations between
employers and employees.
• To provide statutory sanctity and
importance to standing orders

SCOPE AND APPLICATION
• The Act extends to the whole of India
• It applies to every establishment wherein
100 or more workmen are employed or
employed on any day preceding twelve
months.

Exemptions
• The appropriate Govt. can exempt any
establishment from any of the provisions
of the Act It applies to railways, factories,
mines, quarries, oil-fields, tramways,
motor services, docks, plantations,
workshops, civil construction and
maintenance works. The Act has 15
sections and a schedule.

To Whom Does It Apply
• The Act is applicable to all workmen
employed in any industrial establishment
to do any skilled or unskilled, manual,
supervisory, technical, clerical work. Even
the apprentices are also included.
• But the persons employed mainly in a
managerial/administrative/supervisory
capacity drawing wages exceeding
Rs.1600 are not covered

Nature of the Standing Order
• The Supreme Court in Bagalkot Cement Company
Ltd. v. Pathan (K.K.). (1962) 1 L.L.J. 203)], held that
certified standing orders,
have statutory force and after
they are certified, constitute the statutory terms of
employment between the industrial establishment in
question and their employees.
• Again in Western Indian Match Co. v. Workmen, AIR
1964
• S.C. 1458 the Supreme Court spoke in similar terms:
• "The terms of employment specified in the Standing
Order would prevail over the corresponding terms in
the contract of service in existence at the time of the
enforcement of the Standing Order."

What are the contents of the STANDING
ORDERS
1. Classification of the workmen : temporary, casual,
apprentices
2. Manner of intimating to workmen periods and
hours of work, holidays, pay-days and wage rates
3. Shift working Attendance and late coming
Conditions of, procedure in applying for, and the
authority which may grant leave and holidays
4. Requirements to enter premises by certain gates
and liability to search
5. Closing and reopening of sections of the
establishments, or temporary stoppages
6. Suspension or dismissal for misconduct and acts
and omissions which constitute misconduct

Submission Of Draft Standing Orders
• It is obligatory on the part of an employer or a
group of employers to furnish 5 copies of the
draft standing orders to the certifying officer
within 6 months of the application of the Act
the employer shall submit the draft standing
orders
• The draft shall be accompanied by a
statement giving prescribed particulars of the
workmen employed in the industrial
establishment, including the name of the
trade unions, if any, to which they belong

Procedure for Certification of Standing
Orders
• On receipt of the draft standing order, the
certifying officer shall forward a copy to sent to
trade union of the workmen functioning in the
establishment
• If no such union exists, to three representatives of
workmen in the establishment elected at a
meeting called for the purpose
• A notice in the prescribed form will be given
inviting objections, if any, to the draft standing
orders within fifteen days of receipt of these orders
.

Procedure for Certification of Standing
Orders
• After giving to the parties an opportunity of being heard,
the certifying officer shall decide whether or not any
modification of the draft is necessary , and make an order
in writing accordingly.
• In doing so, the certifying officer can adjudicate upon the
fairness and reasonableness of the provisions in the
drafts.
• The certifying officer shall thereupon certify the standing
orders with or without modifications and forward the
authenticated copies thereof to the employer and to the
trade union or other prescribed representatives of the
workmen within seven days from the date of his orders

Modification of Standing Orders
• The standing orders finally certified under this Act
shall not 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.
• Subject to the provisions of section10(1), an
employer or workman may apply to the certifying
officer to have the standing orders modified.
• Such an application shall be accompanied by five
copies of the modifications proposed to be made by
agreement between the employer and the
workmen, a certified copy of that agreement shall
be filled along with the application

Provisions of the Act
• Thus, the items, which have to be covered by the standing
orders in respect of which the employer has to make a
draft for submission to the certifying officer, are matters
specified in the schedule.
• b) Contents of the Schedule
• The matter referred to in the Schedule are:
• 1. Classification of workmen, e.g., whether permanent,
temporary, apprentices, probationers, of badlis.
• 2. Manner of intimating to workmen periods and hours of
work, holidays, paydays and wage rates.
• 3. Shift working.
• 4. Attendance and late coming.

Provisions of the Act
• 5. Conditions of, procedure in applying for, and the authority
which may grant, leave and holidays.
• 6. Requirement to enter premises by certain gates, and liability
to search.
• 7. Closing and re-opening of sections of the industrial
establishment, and temporary stoppages of work and the right
and liabilities of the employer and workmen Arising therefrom.
• 8. Termination of employment, and the notice thereof to be
given by employer and workmen.
• 9. Suspension or dismissal for misconduct, and act or
omissions which constitute misconduct.
• 10. Means of redress for workmen against unfair treatment or
wrongful exactions by the employer or his agents or servant.
• 11. Any other matter which may be prescribed.

Acts of Misconduct
• The following acts or omissions on the part of a workman
shall amount to misconduct;
1. Going on an illegal strike
2. Willfully slowing down in performance of work
3. Theft, fraud or dishonesty in connection with the employer’s
business or property or the theft of property of another
workman within the premises of the establishment
4. Taking or giving bribes
5. Habitual absence without leave or absence without leave
for more than ten consecutive days
6. Collection without the permission of the manager of any
money within the premises of the establishment except as
sanctioned by any law for the law for the time being in force

Acts of Misconduct
1. Engaging in trade within the premises of the
establishment
2. Drunkenness, riotous, disorderly or indecent
behaviour on the premises of the
establishment
3. Habitual neglect of work
4. Habitual breach of any rules or instructions
5. Willful damage to work in process or to any
property of the establishment

Acts of Misconduct
• Holding meeting inside the premises of the
establishment without the previous permission of
the manager or except in accordance with the
provisions of any law for the time being in force.
• Disclosing to any unauthorized person any
information
• Smoking and spitting on the premises of the
establishment where it is prohibited by the
employer
• Unauthorized possession of any lethal weapon in
the establishment

Payment of Subsistence
allowance
• Payment of subsistence allowance by an
employer to a workman who has been
suspended by the employer and his
investigation is pending
• the allowance shall be at the rate of 50%
of the wage for the first 90 days of
suspension
• The allowance shall be 75% of the wage
after 90 days if the investigation is delayed
due to employer

Offences and Penalty
• Any employer fails to submit draft standing
orders or modifies it, shall be punishable
with fine which may extend to Rs. 5000.
• In case of continuance of the above
offence, fine up to Rs.200 per every day.

Obligations of Employers
• Submit draft standing orders with the
required information to the certifying
officer for certification within the time limit
mentioned in the Act.
• Act in conformity with the certified
standing orders in the day to day dealings
with the workmen
• Modify certified standing orders only with
the approval of the certifying officer

Obligations of Workmen
• . Work in conformity with the certified
standing orders or model standing orders
as the case may be.
• Comply with the provisions of the Act in
regard to modification and interpretation of
standing orders

Objective of the Act
• ‘An act to provide for the registration of
Trade Unions and in certain respects to
define the law relating to registered Trade
Unions.’
• It extends to the whole of India.

Trade Union:
• It means combination ,whether temporary or
permanent ,formed primarily for the purpose of
1. regulating the relations
2. for imposing restrictive condition on the
conduct of any trade or business,
3. can be between workmen and employers or
between workmen and workmen, or between
employers and employers
• It can include any federation of two or more Trade
Unions.

Definitions of some important Terms
• Appropriate Government: For the trade unions whose
objects are not confined to one state, the appropriate
government will be the Central Government, for others it’ll
be the State Government.
• Trade dispute: It means any dispute between employers
and workmen or between workmen and workmen, or
between employers and employers which is connected
with the employment, or non-employment or the
conditions of labour, of any person.
• Workmen: Means all persons employed in trade or
industry whether or not in the employment of the employer
with whom the trade dispute arises.

Section 4: Mode of registration
Any seven or more members of a Trade
Union may apply for registration of the
Trade Union under this Act:
–by subscribing their names to the rules of
the Trade Union
–and by complying with the provisions of
this Act with respect to registration.

Mode of registration
• An application for the registration of a
Trade Union shall not become invalid
merely for the reason that at any time after
the date of the application, but before the
registration of the Trade Union some of
the applications (not exceeding half of the
total number of the persons who made the
application) have ceased to be members
of the Trade Union.

Section 5: Application for registration
Application for registration of a Trade Union shall
be made to the Registrar and shall be
accompanied by:
– copy of the rules of the Trade Union
– statement of the following particulars, namely:-
• The names, occupations and addresses of
the members making the application.
• The name of the Trade Union and the
address of its head office.
Where a Trade Union has been in existence for
more than one year before the making of an
application for its registration it needs to submit a
statement of the assets and liabilities held by it.

Section 6: Provisions to be contained in the
rules of Trade Union
A Trade Union shall not be entitled to registration
under this Act, unless the executive is constituted in
accordance with the provisions of this Act, and the
rules provided for following matters:
1. for which the general the name of the Trade
Union
2. the object for which the Trade Union has been
established
3. the purposes funds of the Trade Union shall be
applicable.

Section 7: Power to call for further particulars and
to require alteration of name
• The Registrar can call for further information for the
purpose of checking the compliance of the application
with respect to Sec 5 and Sec 6 of the Trade Union Act.
– He may refuse to register the Trade Union until such
information is supplied.
• If the name under which a Trade Union is proposed to be
registered is identical or it nearly resembles with that of
any other existing Trade Union, the Registrar shall
require the persons applying for registration to alter the
name of the Trade Union stated in the application.

Section 8: Registration
The Registrar, on being satisfied that the
Union has complied with all the
requirements of this Act in regard to
registration, shall register the Trade Union.
Note:
This section is mandatory. The Registrar
cannot refuse to register a Trade Union if
the application for registration complies
with the technical requirement as laid
down in this Act.

Section 9: Certificate of Registration
The Registrar registering a Trade Union
under Section 8, shall issue a certificate of
registration which shall be conclusive that
the Trade Union has been duly registered
under this Act.

Section 10: Cancellation of Registration
A certificate of registration of a Trade
Union may be withdrawn or cancelled by
the Registrar:
–On the application of the Trade Union
–If the Registrar is satisfied that the
certificate has been obtained by fraud or
mistake

Section 12: Registered office
All communications and notice to a
registered Trade Union may be addressed
to its registered office.
–Notice of any change in the address of
the head office shall be given within
fourteen days of such change to the
Registrar in writing.

Section 13: Incorporation of registered
Trade Unions
Every registered Trade Union:
–shall be a body corporate by the name
under which it is registered
–shall have perpetual succession and a
common seal
–power to acquire and hold both movable
and immovable property
–it can, by the said name sue and be
sued.

Section 14: Certain Acts not to apply to
registered Trade Unions
• The Societies Registration Act, 1863.
• The Co-operative Societies Act, 1912.
• The Companies Act, 1956

Rights and liabilities of registered
trade unions
Criminal conspiracy in trade disputes;
• No officers or members 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
objective of the Trade Union.

trade unions
Immunity from civil suit to certain cases
• No suit or other legal proceeding shall be maintainable
in any Civil Court against any registered Trade Union
or any member 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 .
• This may be 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.

trade unions
Immunity from civil suit to certain cases
• 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 an 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.

Section 19: Enforceability of agreements
An agreement between the members of a
registered Trade Union shall not be void
merely because of the fact that any of the
objects of the agreement is in restraint of
trade.

Recognition of Trade Unions
• Recognition of a trade union is very different from Registration
of the union under the Trade Union Act, 1926.
• Recognition means management conferring right to the Union
1) to represent its members as the bargaining agent during the
various discussions and deliberations made while negotiating
terms of employment/conditions of labour;
• 2) to enter into agreements [settlements] with the management
on behalf of its union-members; and
• 3) to air its opinion when general opinion of workmen are
sought while formulating managerial policies and decisions.

• Although there is a fundamental right to form unions under
Article 19(1)(c) and a statutory right to get it registered,
there is no corresponding legal obliging on the
employer /management to recognize any particular trade
union, whether registered or not, even if they are truly
representative.
• Recognition of a Trade Union receives importance when
there are multiple trade unions in an establishment.
• The managements usually refuse to recognize small or
regional trade unions so as to reduce the number of
different voices espousing different demands, while
negotiating wage settlement or conditions of employment.

• There is no Central law on granting recognition
to trade unions. The Parliament had once
passed the Indian Trade Union (Amendment)
Act, 1947, but it was never notified or brought
into force.
• At present, the only provision in this behalf is
contained in Section 36 of the Industrial
Disputes Act, 1947.

• The Act states that in any disciplinary
proceeding a workman is entitled to be
represented by
• (a) any member of the executive or other
office bearer of a registered trade union of
which he is a member, or
• (b) any member of the executive or other
office bearer of a federation of trade unions to
which the trade union is affiliated;

• The said provision concerns only with
representation in industrial disputes and it
does not as such provide for recognition of
any trade union.
• The result of the above is that
Recognition of a Trade Union is a
matter of volition or discretion on the
part of the employer.

• The National Commission for Labour headed
by Dr. Gajendragadkar, rather laid down a
strict guideline for recognition of trade unions.
• The commission expressed the view that
industrial democracy should be applicable
and the majority union should have the right
to sole representation; and where more
unions than one contend for recognition, the
union having a larger following should be
recognized.

• Few State Legislatures have enacted laws
conferring legal right to Trade Unions to
claim Recognition of the Employer.
• The Bombay Industrial Relations Act,
1946 is a beacon on the subject.
• In the said Act, the guidelines laid down by
the National Labour Commission are
incorporated for recognition of a Trade
Union.

• Maharashtra Recognition of Trade Unions &
Prevention of Unfair Labour Practices Act, 1972, is
the other pertinent legislation on the subject.
• In the said act, recognition is afforded to any union
which has 6months of standing and membership
not less than 30% of the total employees.
• The provisions for recognition of trade union in the
Maharashtra Act are applicable only to those
industries which are outside the scope of the
Bombay Act.

Protected Workman
• A certain percentage of union officials are
conferred the right to be “Protected
Workmen”.
• A “Protected Workmen” cannot be
terminated or dismissed without the prior
permission of the Government.
• This gave the union leaders the right to
form unions and fight for the cause of
workmen. .

Industrial and labour laws (comprehensive)

Industrial and labour laws (comprehensive)

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