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LABOR LAW

Selected Notes For LLB 3YDC Preparation Osmania University

2010 - 2016 www.eSaraswati.com

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Table of Contents
1

PAPER - V: LABOR LAW SYLLABUS..................................................................................................... 1

LABOR LAW SHORT NOTES & ANSWERS ........................................................................................ 2

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PAPER - V: LABOR LAW SYLLABUS

OSMANIA UNIVERSITY LL.B. (3YDC) SYLLABUS SEMESTER-3 THREE-YEAR
DEGREE COURSE
LLB SEMESTER III PAPER-V: LABOR LAW
Unit-I:Trade Unions: History of Trade Union Movement - The Trade Union Act 1926
Definitions Registration Rights and Liabilities of Registered Trade Unions Immunities
Amalgamation and dissolution of Unions Reorganization of Trade Unions.
Unit-II: Prevention and Settlement of Industrial Disputes in India - The role of State in
Industrial Relations The Industrial Disputes Act 1947 - Definition of industry - Industrial
Dispute Individual Dispute - workman- Lay off Retrenchment - Closure -Award - Strike
Lockout
Unit-III: Authorities under the ID Act Works committee Conciliation - Court of inquiry Labour Courts - Tribunal Powers and functions of authorities - Voluntary Arbitration Provisions under Chapter V-A & V- B of the Act- Alteration of conditions of service
Management rights of action during pendency of proceedings Recovery of money due from
employer Unfair labour practices - miscellaneous provisions of the Act.
Unit-IV: Standing Orders - Concept and Nature of Standing Orders scope and coverageCertification process its operation and binding effect Modification and Temporary
application of Model Standing Orders Interpretation and enforcement of Standing Orders and
provisions contained in the Industrial Employment (Standing Orders) Act 1946.
Unit-V: Disciplinary Proceedings in Industries - Charge sheet Explanation Domestic enquiry
- Enquiry officer Enquiry report Punishment Principles of Natural Justice.
Suggested Readings:
1. Srivastava: Law of Trade Unions , Eastern Book Company, Lucknow
2. .Goswami : Labour and Industrial Law, Central Law Agency.
3. R.F. Rustomji : Law of Industrial Disputes : Asia Publishing House, Mumbai
4. S.N. Misra : Labour and Industrial Law
5. J.N. Malik : Trade Union Law
6. Khan& Khan : Labour Law , Asia Law House, Hyderabad
7. S.C. Srivastava : Industrial Relations and Labour Law, Vikas Publishing House5. Dutta:
Company Law, Eastern Law House, Calcutta.

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Page 1 of 12

LABOR LAW SHORT NOTES & ANSWERS

Year

Labor Law
Short Notes

Definition of
Trade Union

Jan/Feb
2014

Dissolution of
Trade Union

3 YDC

Industrial
Dispute

Works
Committee

Sample Answers (Blank - Practice)

According to Trade Unions Act, 1926 Sec.
2(h) Trade Union means any combination, whether temporary or permanent
, formed primarily
for the purpose of regulating the relations between workmen and employers o
r between
workmen and workmen, or between employers and employers, or for imposin
g restrictive
conditions on the conduct of any trade or business, and includes any federatio
n of two or more
Trade Unions: Provided that this Act shall not affect
(i) any agreement between partners as to their own business;
(ii) any agreement between an employer and those employed by him as to
such employment; or
(iii) any agreement in consideration of the sale of the goodwill of a business o
r of instruction
in any profession, trade or handicraft
According to Trade Unions Act, 1926 Sec. 27
(1) When a registered Trade Union is dissolved, notice of the dissolution sign
ed 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 that th
e dissolution has
been effected in accordance with the rules of the Trade Union, and the dissolu
tion shall have effect from the date of such registration.
(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 of funds of the Trade Union o
n dissolution, the
Registrar shall divide the funds amongst the members in such manner as may
be prescribed.
According to Trade Unions Act, 1926 Sec. 2(g) trade dispute 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 terms of employment or the
conditions of labour, of any person, and workmen means all persons
employed in trade or industry whether or not in the employment of the
employer with whom the trade dispute arises
According to THE INDUSTRIAL DISPUTES ACT, 1947 Sec. 3.
Works Committee.-

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Lay Off

Voluntary
Arbitration

(1) In the case of any industrial establishment in which one hundred or more
workmen are employed or have been employed on any day in the preceding
twelve months, the appropriate Government may by general or special order
require the employer to constitute in the prescribed manner a Works
Committee consisting of representatives of employers and workmen engaged
in the establishment so however that 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 (16 of 1926 ).
(2) 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.
According to THE INDUSTRIAL DISPUTES ACT, 1947 Sec. 2 (kkk) " layoff" (with its grammatical variations and cognate expressions) means the
failure, refusal or inability of an employer on account of shortage of coal,
power or raw materials or the accumulation of stocks or the breakdown of
machinery 5 or natural calamity or for any other connected 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. Explanation.-Every workman whose name is borne on the muster rolls of the industrial
establishment and who presents himself for work at the establishment at the
time appointed for the purpose during normal working hours on any day and
is not given employment by the employer within two hours of his so
presenting himself shall be deemed to have been laid- off for that day within
the meaning of this clause: Provided that if the workman, instead of being
given employment at the commencement of any shift for any day is asked to
present himself for the purpose during the second half of the shift for the day
and is given employment then, he shall be deemed to have been laid- off only
for one- half of that day: Provided further that if he is not given any such
employment even after so presenting himself, he shall not be deemed to have
been laid- off for the second half of the shift for the day and shall be entitled
to full basic wages and dearness allowance for that part of the day;] fication,
be extended from time to time, by any period not exceeding six months, at
any one time if in the opinion of the appropriate Government public
emergency or public interest requires such extension;
According to THE INDUSTRIAL DISPUTES ACT, 1947 Sec. 10A.
Voluntary reference of disputes to arbitration.(1) Where any industrial dispute exists or is apprehended and the employer
and the workmen agree to refer the dispute to arbitration, they may, at any
time before the dispute has been referred under section 10 to a Labour Court
or Tribunal or National Tribunal, by a written agreement, refer the dispute to
arbitration and the reference shall be to such person or persons (including the

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Unfair Labor
Practice

Principles of
Natural Justice

Aug/Sep
2013

Definition of
Trade Union

Outside
Leadership in
trade unions

presiding officer of a Labour Court or Tribunal or National Tribunal) as an

arbitrator or arbitrators as may be specified in the arbitration agreement.
Refer to THE INDUSTRIAL DISPUTES ACT, 1947 [Ss. 2 (ra) Fifth
Schedule].
Four important principles of Natural Justice
1. Rule against Bias
2. Rule for a Fair Hearing
3. Reasons should be given
4. A copy of a report or other similar evidence shall be made available to
the affected person
Two important maxims are applicable:
1. Nemo debet essejudex in propria cause (No man shall be a judge in his
own cause)
2. Audi alteram partem (Hear the other side)

Already answered.
According to Trade Unions Act, 1926 Sec. 22, Outside Leadership is
provided in a Trade Union.
Proportion of office-bearers to be connected with the industry.
(1) Not less than one-half of the total number of the office-bearers of every
registered Trade Union in an unrecognised sector shall be persons actually
engaged or employed in an industry with which the Trade Union is
connected: Provided that the appropriate Government may, by special or
general order, declare that the provisions of this section shall not apply to any
Trade Union or class of Trade Unions specified in the order. Explanation.
For the purposes of this section, unorganised sector means any sector which
the appropriate Government may, by notification in the Official Gazette,
specify.
(2) Save as otherwise provided in sub-section (1), all office-bearers of a
registered Trade Union, except not more than one-third of the total number of
the office-bearers or five, whichever is less, shall be persons acutally engaged
or employed in the establishment or industry with which the Trade Union is
connected. Explanation.For the purposes of this sub-section, an employee
who has retired or has been retrenched shall not be construed as outsider for
the purpose of holding an office in a Trade Union.
(3) No member of the Council of Ministers or a person holding an office of
profit (not being an engagement or employment in an establishment or
industry with which the Trade Union is connected), in the Union or a State,
shall be a member of the executive or other office-bearer of a registered Trade
Union.]

3 YDC
Industrial

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Relations

Retrenchment

Definition: Section 2(oo) of the IDA, 1947 defines retrenchment.

The expression Retrenchment means termination of service of a workman
by the employer by any reason other than disciplinary action or punishment.
In other words, if an employer discharges or removes any workman or staff
member on the ground of surplus labor.staff, but not as disciplinary action, it
is called retrenchment.
Analysis: IDA 1947, Sec. 2 (oo) may be analyzed as follows:
1) Retrenchment means the termination by the employer of service of a
workman;
2) The termination may be any reason whatsoever;
3) But the termination should not be a measure of punishment by way of
disciplinary action;
Conditions precedent for retrenchment - IDA, 1947 S. 25 (F) and 25(N)
postulate the following pre-conditions:
1) A workman having satisfied one year continuous service, cannot be
retrenched.
2) By service one month notice, stating the reason in writing or paying
one month wages in lieu of the notice
3) By paying @ 15 days wages for each year of service, not exceeding 6
months as a compensation for total service
4) The notice of retrenchment must be served to the appropriate
Government
Case law - In Bombay Union of Journalists vs. State of Bombay, AIR 1964
SC 1617, the Supreme Court held that one month notice or one month wages
in lieu of notice is mandatory
Procedure for Retrenchment IDA, 1947 U/S 25(G) confers legislative
recognitions to the well-established principle for retrenchment.
Rights of Retrenched workman
1) Retrenchment Compensation See IDA, 1947 U/S 25(F)
2) Right to Re-employment
IDA, 1947 U/S 2(ra) defines Unfair Labor Practice as any of the practices
specified in the Fifth Schedule.
U/Ss 25(T) and 25(U) lays down the provisions regulating Unfair Labor
Practices.

Unfair Labor
Practice

A new Schedule V has been added by the IDA (Amendment), 1982. In this
Schedule, Unfair Labor Practices has been defined. Moreover, it contains a
list of such practices as are treated unfair on the part of the employers or their
Trade Unions, or on the part of workmen and their Trade Unions.
Prohibition of Unfair Labor Practice IDA, 1947 U/S 25(T)

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Penalty for committing unfair Labor Practice IDA 1947 U/S 25(U)

IDA 1947 U/Sec. 3 defines Works Committee

Scope IDA 47 Sec 3 lays down the procedure, appointment and its object of
Works Committee. It is the first Committee constituted under this Act to
resolve the industrial disputes amicably.
Important Points

Works
Committee

1) Meaning Works Committee is constituted with the representatives

of employer and employees to solve their problems, disputes that
would arise in present or in future, amicably and peacefully.
2) Object IDA 1947 Sec 3(2) explains the object of Works
Committee and also imposes the duty upon the Works Committee to
promote measures for securing and preserving amity and good
relations between the employers and workmen.
3) Number of Members
4) Representation of Employers
5) Consultation with registered Trade Union
6) Groups of Workmens Representatives
7) Electoral Constituencies
8) Qualifications of Candidates for election
9) Qualifications of Voters
10) Procedure for Election
11) Officers of the Committee
12) Term of Office
13) Meetings
14) Facilities
15) Dissolution
16) Does not supplant functions of Trade Union
17) Binding Force of the Decisions of the Works Committee
Case Law(s)
1) The Supreme Court while disposing the case Metal Box of India Co.
Ltd. Vs Workmen 1952 J 7822, observed: The primary object of
Works Committee is to look after the welfare and interest of the
workmen. But practically, they are concerned with the matters relating
to production, working conditions, welfare, wages, holidays with pay
hours of work, bonus, gratuity, standing orders etc. The function of
the Works Committees is to ascertain the grievance of the employees,
and seek the redress to those grievances in an amicable manner. This,
however does not mean that the recommendations of the Works
Committees are of no value. The exact position lies midway, i.e. the
decision of the Works Committee carries great weight, but is not
conclusive.
2) Northbrook Jute Co. Ltd. Vs. Their Workmen 1960 (I) LLJ 580 SC

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a. Brief Facts
b. Judgment According to The Industrial Employment (Standing Orders) Act, 1946
IE(SO)A 1946
Model Standing Order is a model annexed in Schedule or Schedules to the
act or any Rules made by any State Government or Central Government
delegated under the Act. Each Model Standing Order gives a model for any
particular industry. Taking the model, the employer of that kind of industry
shall prepare his own Standing Order.
Model
Standing Order

DEFINITION(S)
EXAMPLES
1) SCHEDULE 1 2) SCHEDULE 1(A) 3) SCHEDULE 1 (B) CONTENTS OF MODEL STANDING ORDERS
APPLICATION OF THE MODEL STANDING ORDER

Domestic
enquiry
Definition of
Jan 2012 Trade Union
Amalgamation
of Trade
3 YDC
Unions
Definition of
industry
Works
Committee
Lay Off
Charge sheet
Labor court
Workman
Apr /
History of
May
Trade Union
2011
Movement
Definition of
3 YDC
industry
Works
Committee
Conciliation

Already answered

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Backlog

Voluntary
Arbitration
Standing
Orders
Charge sheet
Enquiry Report
Immunities of
Trade Union
Dissolution of
Trade Union
Definition of
industry
Court of
Inquiry
Recovery of
money due
from Employer
Certification of
Standing
Orders
Domestic
enquiry
Principles of
Natural Justice

May /
Jun
2010

Adjudication

Jun / Jul
2011
3 YDC

3 YDC

Dec
2010
3 YDC

Standing
Orders
Trade Union
Joint
Management
Councils
Victimization
Bonus
Disciplinary
proceedings
Conciliation
Registration of
Trade Union
Multiplicity of
Trade Union
Voluntary
Arbitration

2010 2015 www.eSaraswati.com Page 8 of 12

Workman
under the
Industrial
Dispute Act,
1947
Strike
Domestic
enquiry
Labor court
Charge sheet
Apr /
May
2009
3 YDC

Model
Questio
n Paper
I
3 YDC

Collective
Bargaining
Minimum
wages
Voluntary
Arbitration
Retrenchment
Maternity
Benefit
Gratuity
Individual
Dispute
Provident Fund
Rights and
Liabilities of
Registered
Trade Unions
Lay Off
Court of
Inquiry
Scope and
Coverage of
Standing
Orders
Charge sheet
Audi Alteram
Partem
Industrial
Dispute
Alteration of
Conditions of
Service

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Model
Questio
n Paper
2
3 YDC

Triple Test
Define "Trade
Dispute"
Appropriate
Government
Lay Off and
Retrenchment
Recovery of
money due
from Employer
Powers of
Labor Court
Model
Standing Order
Enquiry Report

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