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OBJECT OF THE ACT: The Employees* Slate Insurance Act (ESI Act) was enacted with the object of
introducing a scheme of health insurance for industrial workers. The scheme envisaged by it is one
of compulsory State Insurance providing for certain benefits in the event of sickness, maternity and
employment injury to workmen employed in or in connection with the work in factories other than
seasonal factories. The ESI Act, which has replaced the Workmen's Compensation.
(c) one person each representing each of the States in which this Act is in force to be
appointed by the State Government concerned;
(d) one person to be appointed by the Central Government to represent the 3Union
Territories;
(h) 3 members of Parliament of whom two shall be members of the House of the
People (Lok Sabha) and one shall be a member of the Council of States (Rajya
Sabha) elected respectively by the members of the House of the People and the
members of the Council of States; and
(i) The Director-General of the Corporation ex-officio.
Members referred to in clauses (f), (g), (h) shall be four years, commencing from the
date on which their appointment or election. The members of the Corporation
referred to in clauses (a),(b),(c) and (e)of Sectiontion 4 shall hold office during the
pleasure of the government appointing them.
(bb) three members of the Corporation representing such three State Governments
thereon as the Central Government may, by notification Gazette, specify from time to
time;
(a) the Director General, the Employees' State Insurance Corporation, ex officio as
Chairman;
(f) 3 members, of whom not less than one shall be a woman, representing the
medical profession, to be appointed by the Central Government.
advise the Corporation and the Standing Committee on matters relating to the
administration of medical benefit, the certification for purposes of the grant of
benefits and other connected matters;
CONTRIBUTIONS
Employer and employer liable for payment of the contribution to the Employee
State Insurance Corporation.
The rate of contribution paid by employer and employee will be decided by the
central government.
For Andhra Pradesh Employees in receipt of a daily average wage up to Rs.70/- are
exempted from payment of contribution.
METHOD OF PAYMENT OF CONTRIBUTION. [Section 43]
The ESI Corporation can make following rules and regulation in payment and
collection of contributions payable under this Act.
Every principal and immediate employer should submit to the Corporation or to such
officer of the Corporation as it may direct such returns in such form and containing
such particulars relating to persons employed by him.
Every principal and immediate employer shall maintain such registers or records in
respect of his factory or establishment
The Corporation may appoint such person as Social Security Officers, as it thinks fit,
for the purposes of this Act. The following are his functions and duties.
Enquiring into the correctness of any of the particulars stated in any return
referred to in Section 44.
Social Security Officers can demand any principal or immediate employer to
furnish to him such information as he may consider necessary for the
purposes of this Act.
Social Security Officers can at any reasonable time enter any office,
establishment, factory or other premises for inspection of examine such
accounts, books and other documents relating to the employment of persons
and payment of wages or to furnish to him such information as he may
consider necessary.
He can examine the employer, his agent or servant or any person found in
such factory, establishment, and office.
He can make copies of, or take extracts from, any register, account book or
other document maintained in such factory, establishment, office or other
premises.
He can do re-inspection whether the records and returns submitted under
Section 44 are correct or not.
CHAPTER V
BENEFITS
The following benefits will be paid to insured persons or to their dependents [Section
46]
an amount of Rs. 5000/- is payable to the dependents or to the person who performs
last rites from day one of entering insurable employment.
Qualifying Conditions
A person who has entered into insurable employment for the first time has to
wait for nearly 9 months before becoming eligible to sickness benefit, because
his corresponding benefit period starts only after that interval.
IPs suffering from long term diseases was experiencing great hardship on expiry of
91 days Sickness benefit. Often they, though not fit for duty, pressed for a Final
certificate. Hence, a provision for paying Sickness Benefit for an extended period
(Extended Sickness Benefit)of up to 2 years in a ESB period of 3 years.
An Insured Person suffering from certain long term diseases is entitled to ESB, only
after exhausting Sickness Benefit to which he may be eligible. A common list of
these long term diseases for which ESB is payable, is reviewed by the Corporation
from time to time. The list was last reviewed on 5.12.99 and revised provisions of
ESB became effective from 1.1.2000 and at present this list includes 34 diseases
which are grouped in 11 groups as per International Classification of diseases and
the names of many existing diseases have been changed as under :-
I Infectious Diseases
1. Tuberculosis
2. Leprosy
3. Chronic Empyema
4. AIDS
II Neoplasms
5. Malignant Diseases
V Disease of Eye
15. Immature Cataract with vision 6/60 or less
16. Detachment of Retina
17. Glaucoma
IX Orthopaedic Diseases
27. Dislocation of vertebra/prolapse of intervertebral disc
28. Non union or delayed union of fracture
29. Post Traumatic Surgical amputation of lower extremity
30. Compound fracture with chronic osteomyelitis
X Psychoses
31. Sub-group under this head are listed for clarification
a. Schizophrenia
b. Endogenous depression
c. Manic Depressive Psychosis (MDP)
d. Dementia
XI Others
32. More than 20% burns with infection/complication
33. Chronic Renal Failure
34. Reynaud’s disease/Burger’s disease.
According to Section 69, employer shall be liable for payment of excess sickness
benefit, if the sickness to the insured person/ employee is caused by the negligence
and improper maintenance & no cleanliness of factory or establishment.
Duration of TDB:
There is no prescribed limit for the duration of TDB. This is payable as long as
temporary disablement lasts and significant improvement by treatment is possible. If
a Temporary Disablement spell lasts for less than 3 days (excluding day of accident),
IP will be paid sickness benefit, if otherwise eligible.
Permanent Disablement Benefit (PDB)
Employer will be liable for the accidents caused to his employer in the following
circumstance
Employer or his family members are entitled to the medical benefit. In case of the
retirement of the employer his spouse shall be eligible to receive medical benefit
subject to payment of contribution. In case of permanent disablement by the
employee, he can get medical benefit till the date of his retirement. Maximum age for
the retirement is 60 years.
The right to receive any payment of any benefit under this Act shall not be
transferable or assignable.
No cash benefit payable under this Act shall be liable to attachment or sale in
execution of any decree or order of any Court.
[Section 59B]
The Corporation can establish medical colleges, nursing colleges and training
institutes for its Para-medical staff and other employees with a view to improve the
quality of services provided under the Employees' State Insurance Scheme.
should not while under treatment do anything and have chances of recovery;
shall not leave the area in which medical treatment provided by this Act is
being given, without the permission of the medical officer, medical attendant
or such other authority as may be specified in this behalf by the regulations;
and
(1) An insured person shall not be entitled to receive for the same period-
(b) both sickness benefit and disablement benefit for temporary disablement; or
(c) both maternity benefit and disablement benefit for temporary disablement.
(2) Where a person is entitled to more than one of the benefits mentioned in sub-
Section (1), he shall be entitled to choose which benefit he shall receive.
sickness
maternity leave
pregnancy or confinement
under the treatment in the hospital
temporary disablement
CONTRIBUTIONS
Employer and employer liable for payment of the contribution to the Employee
State Insurance Corporation.
The rate of contribution paid by employer and employee will be decided by the
central government.
For Andhra Pradesh Employees in receipt of a daily average wage up to Rs.70/- are
exempted from payment of contribution.
The ESI Corporation can make following rules and regulation in payment and
collection of contributions payable under this Act.
Every principal and immediate employer should submit to the Corporation or to such
officer of the Corporation as it may direct such returns in such form and containing
such particulars relating to persons employed by him.
Every principal and immediate employer shall maintain such registers or records in
respect of his factory or establishment
SOCIAL SECURITY OFFICERS, THEIR FUNCTIONS AND DUTIES. [SECTION 45]
(2010 amendment)
The Corporation may appoint such person as Social Security Officers, as it thinks fit,
for the purposes of this Act. The following are his functions and duties.
Enquiring into the correctness of any of the particulars stated in any return
referred to in Section 44.
Social Security Officers can demand any principal or immediate employer to
furnish to him such information as he may consider necessary for the
purposes of this Act.
Social Security Officers can at any reasonable time enter any office,
establishment, factory or other premises for inspection of examine such
accounts, books and other documents relating to the employment of persons
and payment of wages or to furnish to him such information as he may
consider necessary.
He can examine the employer, his agent or servant or any person found in
such factory, establishment, and office.
He can make copies of, or take extracts from, any register, account book or
other document maintained in such factory, establishment, office or other
premises.
He can do re-inspection whether the records and returns submitted under
Section 44 are correct or not.
THE SCHEDULE
MATTERS TO BE PROVIDED IN STANDING ORDER UNDER THIS ACT
3. Shift working.
4. Attendance and late coming.
5. Conditions of procedure in applying for, and the authority which may grant, leave
and holidays.
10. Means of redress for workmen against unfair treatment or wrongful exactions by
the employer or his agents or servants.
[section 1(3)]. Applicability of the Act - The Act is applicable to all ‘industrial
establishments’ employing 100 or more workmen.
Provided that the appropriate Government may, after giving not less than two
month’s notice of its intention so to do, by notification in the official Gazette, apply
the provision of this Act to any industrial establishment employing such number of
persons less than one hundred as may be specified in the notification.
(i) Any industry to which the provisions of Chapter VII of the Bombay Industrial
Relations Act, 1946 (Bombay Act II of 1947) apply; or
(ii) Any Industrial establishment to which the provisions of the Madhya Pradesh
Industrial Employment (Standing Orders) Act, 1961 (Madhya Pradesh Act 26 of 1961
apply:
Provided that notwithstanding anything contained in the Madhya Pradesh Industrial
Employment (Standing Orders) Act, 1961 (Madhya Pradesh Act, 26 of 1961), the
provision of this Act shall apply to all industrial establishments under the control of
the Central Government.]
Approval of Standing Orders - Every employer covered under the Act has to
prepare ‘Standing Orders’, covering the matters required in the ‘Standing Orders’.
Five copies of these should be sent to Certifying Officer for approval. [section 3(1)].
‘Certifying Officer’ means Labour Commissioner and any officer appointed by
Government to be ‘Certifying Officer’. [section 2(c)].
The Certifying Officer will inform the Union and workmen and hear their
objections. After that, he will certify the ‘Standing Orders’ for the industrial
establishment. [section 5]. Till standing orders are certified, ‘Model Standing Order’
prepared by Government will automatically apply. [section12A].
Once the ‘Standing Orders’ are certified, they supersede any term and condition of
employment, contained in the appointment letter. If there is inconsistency between
‘Standing Order’ and ‘Appointment Letter’, the provisions of ‘Standing Order’ prevail -
Eicher Goodearth Ltd. v. R K Soni - (1993)
Standing orders are binding on employer and employee. These are statutorily
imposed conditions of service. However, they are not statutory provisions
themselves (meaning that the ‘Standing Orders’ even when approved, do not
become ‘law’ in the sense in which Rules and Notifications issued under delegated
legislation become after they are published as prescribed.) - Rajasthan
SRTC v. Krishna Kant - AIR 1995
Model Standing Orders - The Act has prescribed Model Standing Orders. These
are automatically applicable till employer prepares his own ‘Standing Orders’ and
these are approved by ‘Certifying Officer’. [section 12A].
Below shown sample pictures are of the Standing Orders of the Honourable
High Court. these are uploaded only for illustration purpose, to show
students how the Standing Orders looks like and make them understand
what it is contains.
Employee's Compensation
(i) the workman having been at the time thereof under the
influence of drink or drugs, (alcohol) or
(iii)
the willful removal or disregard by the workman of any safety
guard or other device which he knew to have been provided for the
purpose of securing the safety of workmen,
Occupational Diseases.[Sec 3]
An occupational disease is any chronic ailment that occurs as a result of work or
occupational activity. It is an aspect of occupational safety and health. An
occupational disease is typically identified when it is shown that it is more prevalent
in a given body of workers than in the general population, or in other worker
populations.
[Sec 3 (2)]
The reason behind above conditions are, current employer shouldn’t be blamed for
the occupational disease caused to an employee by the previous employment. There
should be certain service time gap to decide whether current employer or previous
employer is liable for the occupation disease caused to an employee.
Diseases which are specified in part A,B.& C of the Schedule lll, need not to be
proved that they are 'occupational diseases' as they are already declared by
schedule lll. In respect of any disease not covered by schedule lll, it is must for an
employee to prove that such a disease was contracted in the course of employment.
SCHEDULE 3
LIST OF OCCUPATIONAL DISEASES
S. No. Occupational disease Employment
1 2 3
PART A
1 Infectious and parasitic diseases (a) All work involving exposure to
contracted in an occupation where there is contracted in an occupation health or
a particular risk of contamination. laboratory work;
(b) All work involving exposure to
veterinary work;
(c) Work relating to handling animals,
animal carcasses, part of such carcasses, or
merchandise which may have been
contaminated by animals or animal
carcasses;
(d) Other work carrying a particular risk of
contamination.
2 Diseases caused by work in compressed All work involving exposure to the risk
air. concerned.
3 Diseases caused by lead or its toxic All work involving exposure to the risk
compounds. concerned.
4 Poisoning by nitrous fumes. All work involving exposure to the risk
concerned.
5 Poisoning by organo phosphorus All work involving exposure to the risk
compounds. concerned.
PART B
1 Diseases caused by phosphorus or its All work involving exposure to the risk
toxic compounds. concerned.
2 Diseases caused by mercury or its toxic All work involving exposure to the risk
compounds. concerned.
3 Diseases caused by benzene or its toxic All work involving exposure to the risk
homologues. concerned.
4 Diseases caused by nitro and amido toxic All work involving exposure to the risk
derivatives of benzine or its homologues concerned.
5 Diseases caused by chromium, or its toxic All work involving exposure to the risk
compounds concerned.
6 Diseases caused by arsenic or its toxic All work involving exposure to the risk
compounds. concerned.
7 Diseases caused by radioactive substances All work involving exposure to the
or radiations. substances and ionising action of radioactive
ionising radiations.
8 Primary epitheliomatous cancer of the All work involving exposure to the risk
skin, caused by tar, pitch, bitumen, concerned.
mineral oil, anthracene, or the
compounds, products or residues of these
substances.
9 Disease caused by the toxic halogen All work involving exposure to the risk
derivatives of hydrocarbons (of the concerned.
aliphatic and aromatic series).
10 Diseases caused by carbon disulphide. All work involving exposure to the risk
concerned.
11 Occupational cataract due to infra-red All work involving exposure to the risk
radiations. concerned.
12 Diseases caused by manganese or its toxic All work involving exposure to the risk
compounds. concerned.
13 Skin diseases caused by physical, All work involving exposure to the risk
chemical or biological agents not included concerned.
in other items.
14 Hearing impairment caused by noise. All work involving exposure to the risk
concerned.
15 Poisoning by dinitrophenol or a All work involving exposure to the risk
homologue or by substituted dinitrophenol concerned.
or by the salts of such substances.
16 Diseases caused by beryllium or its toxic All work involving exposure to the risk
compounds. concerned.
17 Diseases caused by cadmium or its toxic All work involving exposure to the risk
compounds. concerned.
18 Occupational asthma caused by All work involving exposure to the risk
recognised sensitising agents inherent to concerned.
the work process.
19 Diseases caused by fluorine or its toxic All work involving exposure to the risk
compounds. concerned.
20 Diseases caused by nitroglycerine or other All work involving exposure to the risk
nitroacid esters. concerned.
21 Diseases caused by alcohols and ketones. All work involving exposure to the risk
concerned.
22 Diseases caused by asphyxiants carbon All work involving exposure to the risk
monoxide, and its toxic derivatives, concerned.
hydrogen sulfide.
23 Lung cancer and mesotheliomas caused All work involving exposure to the risk
by asbestos. concerned.
24 Primary neoplasm of the epithelial lining All work involving exposure to the risk
of the urinary bladder or the kidney or the concerned.
ureter.
25 Snow blindness in snow bound areas. All work involving exposure to the risk
concerned.
26 Disease due to effect of cold in extreme All work involving exposure to the risk
cold climate. concerned.
27 Disease due to effect of cold in extreme All work involving exposure to the risk
cold climate. concerned.
PART C
1 Pneumoconioses caused by sclerogenic All work involving exposure to the risk
mineral dust (silicosis, anthraoosilicosis, concerned.
asbestosis) and silico-tuberculosis
provided that silicosis is an essential
factor in causing the resultant incapacity
or death.
2 Bagassosis. All work involving exposure to the risk
concerned.
3 Bronchopulmonary diseases caused by All work involving exposure to the risk
cotton, flax hemp and sisal dust concerned.
(Byssinosis).
4 Extrinsic allergic alveelitiscaused by the All work involving exposure to the risk
inhalation of organic dusts. concerned.
5 Bronchopulmonary diseases caused by All work involving exposure to the risk
hard metals. concerned.
6 Acute Pulmonary Oedema of High All work involving exposure to the risk
Altitude. concerned.
SCHEDULE I
PART I
6 Absolute deafness
PART II
LIST OF INJURIES DEEMED TO RESULT IN PERMANENT PARTIAL
DISABLEMENT
Amputation Cases - Upper limbs - Either arm
5 Loss of thumb 30
16 Amputation at hip 90
Other injuries
Loss of -
A - Fingers of right or left hand
Index finger
27 Whole 14
28 Two phalanges 11
29 One phalanx 9
Middle finger
31 Whole 12
32 Two phalanges 9
33 One Phalanx 7
35 Whole 7
36 Two phalanges 6
37 One Phalanx 5
SCHEDULE IV
(See section 4)
FACTORS FOR WORKING OUT LUMP SUM EQUIVALENT OF COMPENSATION
AMOUNT IN CASE OF PERMANENT DISABLEMENT AND DEATH.
where the calculation is not possible in both ways as explained above, then the
monthly wages shall be 30 times the total wages earned by the workman divided by
the number of days comprising such period.
For calculating the continuous service under this section, the absence of 14 days
shall not be treated as interruption.
Example: Muniyappa, a worker aged 35 meets with an accident and dies while at
work (i.e. in the course of employment). At the time he drew a monthly wage of
Rs.2,500/-. As per Schedule IV of the Act the relevant factor applicable to his case
would be Rs. 197.06. As such, the amount of compensation payable to his
dependants will be arrived at in the following way:
For above the calculation of the compensation in case of death or permanent partial
disablement, the monthly wage of workman is limited to 4000/- Rupees only. Or the
government may prescribe and change the monthly wage amount for calculation of
the compensation.
Example: Shyam, a worker aged 35 meets with an accident and suffers permanent
total disablement while at work (i.e. in the course of employment) At the time she
drew a monthly wage of Rs.2,500/- The amount of compensation payable will be
arrived at as follows:
All injuries compensation caused by same accident will be added but compensation
amount payable should not exceed more than what would have been payable in the
case of permanent partial disablement.
NOTE: If the injury to the employee caused disablement for not more 3 days, in
such a case employer is not liable to pay any compensation to the employee, except
the medical expenditure
If the period of disablement lasts for less than 28 days, the payment shall be made
after the expiry of 3 days. This wait for 3 days is to ascertain how long the temporary
disablement will last—less than/equal to 28 days or more.
In case the employer makes any payment to the worker before the payment of this
half monthly (every two weeks) or lump sum amount, it shall be deducted from any
lump sum or half-monthly payments. [Section 4 (2) (a)]
[Sec 4(2A)]
The employee shall be reimbursed the actual medical expenditure incurred by him
for treatment of injuries caused during course of employment.
If the injury of the workman results in his death, [Sec
4(4)]
The employer shall, in addition to the compensation for death as calculated above,
deposit with the Commissioner a sum of Rs.5000/- for payment of the same to the
eldest surviving dependent of the workman towards the expenditure of the funeral of
such workman or if the workman did not have a dependent or was not living with his
dependent at the time of his death, the funeral expenditure should be paid to the
person who actually incurred such expenditure.
REVIEW [Sec 6]
Within 30 days from the receipt of the notice from commissioner by the employer has
to submit all the details of the accident or the death of the workman. Employer
should mention whether he is liable to pay the compensation or not liable to pay the
compensation to the workman.
After the occurrence of the accident results in death of the workman, or serious
bodily injury of the workman, employer should give notice to the authority appointed
by the state government within 7 days.
In case of contracting, the principal (person who employed the workman fro contract)
or contractor (principal for the purposes of his trade or business contracts with any
other person) is liable to pay the compensation to the employed workman who is
injured.
In the case where the employer of the worker has entered into an agreement with
insurers (insurance company), to pay compensation and subsequently the employer
(may be company) becomes insolvent or closing down of company, then in the event
of any accident happening, the employer’s liabilities will be transferred to the
insurers, and they would be treated as the employers of the aggrieved worker for the
purpose of paying compensation.
Compensation cannot be claimed from the insurer in any case in which the workman
fails to give notice to the insurers of the happening of the accident and of any
resulting disablement as soon as practicable after he becomes aware of the
institution of the insolvency or liquidation proceedings.
If the liability of the insurers is to be less than that of the original employers, then the
worker can claim the balance amount from the insolvency proceedings. [Sec 4(2)]
If employer has taken insurance to cover claims arising out of workers’ accidents, the
insurance company will be responsible to pay compensation. It is interesting that in
such cases were an employer has taken insurance and the employer will back the
worker’s claim against the insurance company! Naturally, as insurance company is
not responsible to pay the worker compensation. The practice of taking insurance is
common only amongst the bigger contractors/ companies.
In the case of the compensation being half monthly payments (every two weeks), the
insurers may convert that to an appropriate lump sum and pay that compensation to
the worker. [Sec14 (5)]
Master of the ship is treaded as the employer and seamen are treated as the
workman employed under him.
Notice of the accident and disablement to the seaman is not necessary, if it
has happened on board of the ship.
In the case of the death of a master or seaman, the claim for compensation
shall be made within one year after the news of the death has been received
by the claimant. [Sec 15(2)]
In case ship has lost the claim for compensation by claimant shall be made
within 18 months from the date ship is lost.
Captain of the aircraft is treaded as the employer and crew are treated as the
workman employed under him.
Notice of the accident and disablement to the crew is not necessary, if it has
happened on board of the aircraft.
In the case of the death of a Captain of the aircraft r or crew, the claim for
compensation shall be made within one year after the news of the death has
been received by the claimant. [Sec 15A(2)]
In case aircraft has lost, the claim for compensation by claimant shall be
made within 18 months from the date ship is lost..
(i) in the case of workmen who are persons recruited by companies registered in
India and working as such abroad, and
(ii) persons sent for work abroad along with motor vehicles registered under
the Motor Vehicles Act, 1988 (59 of 1988) as drivers, helpers, mechanics, cleaners
or other workmen, subject to the following modifications, namely :- (1) The notice of
the accident and the claim for compensation may be served on the local agent of the
company, or the local agent of the owner of the motor vehicle, in the country of
accident, as the case may be,
(2) In the case of death of the workman in respect of whom the provisions of this
section shall apply, the claim for compensation shall be made within one year after
the news of the death has been received by the claimant:
Any contractor agreement made for give-up of compensation from the employer in
case of the accident or the death of the workman is void and not valid.
(2) Where more than one Commissioner has been appointed for any area, the State
Government may, by general or special order, regulate the distribution of business
between them.
(3) Any Commissioner may, for the purpose of deciding any matter referred to him
for decision under this Act, choose one or more persons possessing special
knowledge of any matter relevant to the matter under inquiry to assist him in holding
the inquiry.
(4) Every Commissioner shall be deemed to be a public servant within the meaning
of the Indian Penal Code (45 of 1860).
FORM OF APPLICATION [Sec 22]
Date of the notice given to the employer about the accident of the employer
If application is illiterate, he or she can take help of other person in preparing
the application form.
[Sec 29]
If memorandum of agreement is not send to commissioner by the employer shall be
liable to pay the full amount of compensation which he is liable to pay.
The Industrial Disputes (Amendment) Bill, 2009, was introduced in the Rajya Sabha
on February 26, 2009 by the Minister of Labour and Employment Shri Oscar
Fernandes. The Bill was passed by the Lok Sabha on August 10, 2010 and the
Rajya Sabha on August 3, 2010.ƒ
1. The Bill amends the Industrial Disputes Act, 1947. The Act provides for
settlement of disputes between workers and management.
2. Persons who are employed in a supervisory capacity and draw more than Rs
1,600 per month are excluded from the purview of the Act. The Bill raises this
ceiling to Rs 10,000 per month.
3. Depending on the type of institution involved in an industrial dispute, either the
central or the state government is given powers to administer various
provisions of the Act. The Bill expands the list of institutions for which disputes
will be administered by the central government to include: (a) companies
where 51% or more of shares are held by the central government, (b) central
public sector undertakings or their subsidiaries (c) corporations set up under a
law made by Parliament and (d) autonomous bodies owned or controlled by
the central government.
4. The Bill specifies that state governments shall administer disputes in state
public sector undertakings or their subsidiaries. State governments shall also
administer disputes in autonomous bodies owned or controlled by them.
5. Under the Act, a worker whose services were terminated can complain to the
government, which may refer the caseto a court or tribunal. The Bill allows a
workman to directly approach the court or tribunal three months after filing
such a complaint. An application to the court or tribunal must be
made within three years of termination of service.
6. The Bill requires all industrial establishments with more than 20 workmen, to
set up one or more grievance redressal committees to resolve grievances of
individual workmen. ƒ
7. The committee shall consist of up to six members with equal representation
from the employer and the workmen, with adequate representation for
women. The chairperson shall be appointed alternately by the employer or
from amongst the workmen every year.
8. The committee must reach a decision on any complaint within 45 days.
Workmen can appeal against the decision to the employer, who has a month
to respond.
9. The existence of such a committee does not affect the rights available to
workmen under other provisions of the Act.
10. The Bill broadens the scope of qualifications required for presiding officers of
courts or tribunals established under the Act. Such officers can now include
those who (a) have been a Deputy Chief Labour Commissioner (Central) or
Joint Commissioner, with a degree in law, and at least seven
years experience in the Labour Department, including three years as a
conciliation officer, or (b) have been an officer of the Indian Legal Service with
three years experience in Grade III.
11. All awards or settlements made by labour courts or tribunals shall be
executed by the relevant civil court according to the Code of Civil Procedure.
Award [Sec 2 (b)] means an interim or a final determination of any industrial dispute
or of any question relating thereto by any Labour Court, Industrial Tribunal or
National Industrial Tribunal and includes an arbitration award made under section
10A;
Industry [Sec. 2(j)]: Industry means any business, trade, undertaking, manufacture
or calling of employers and includes any calling, service, employment, handicraft or
industrial occupation or avocation of workmen.
Industrial Dispute [Sec. 2(k)]: means any dispute or difference between employers
and employers, or between employers and workmen, or between workmen and
workmen, which is connected with the employment or non-employment or the terms
of employment or with the conditions of labour, of any person.
2(k) "industrial dispute" means any dispute or difference between employers and
employers, or between employers and workmen, or between workmen and
workmen, which is connected with the employment or non-employment or the terms
of employment or with the conditions of labour, of any person;
Wages [Sec. 2(rr)]: Wages mean 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 the work done
in such an employment and includes:
(i) such allowances (including dearness allowance) as the workman is for the time
being entitled to;
(ii) 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;
(i) any railway service or any transport service for the carriage of passengers or
goods by air;
(ia) any service in, or in connection with the working of, any major port or dock;
(ii) any section of an industrial establishment, on the working of which the safety of
the establishment or the workmen employed therein depends;
(iii) any postal, telegraph or telephone service;
(iv) any industry which supplies power, light or water to the public;
(v) any system of public conservancy or sanitation;
(vi) any industry specified in the First Schedule which the appropriate Government
may, if satisfied that public emergency or public interest so requires, by notification in
the Official Gazette, declare to be a public utility service for the purposes of this Act,
for such period as may be specified in the notification
The I.D. Act provides elaborate and effective machinery for the investigation and
amicable settlement of industrial disputes by setting up the various authorities.
These are:
1. Works Committee;
2. Conciliation Officer;
3. Conciliation Board;
4. Court of Enquiry;
5. Labour Court;
6. Industrial Tribunal;
7. National Tribunal;
8. Arbitrators;
9. Grievances Settlement Authority.
Difference in between the workman and his employer connected arising out of
following activities shall be deemed to the industrial dispute.
Dismissal of workman
Discharge of workman
Retrenchment of the workman
Termination of workman from his services
[Sec 2A (2)]
Workman having the disputes can make a application to the conciliation officer to
settle the dispute. After the expiry of 3 months of time conciliation officer fails to
settle the dispute, workman can make a direct application to labour courts or
tribunals for adjudication.
[Sec 2A (3)]
In the case of public utility services matters like strikes and lockouts the conciliation
officer can initiate the conciliation proceeding ad tries to settle the dispute in between
the parties.
If the conciliation officer fails to resolve the dispute between the parties, he should
report to the appropriate government. If necessary the dispute shall be referred to
the Board, Labour Court, Tribunal or National Tribunal, by the appropriate
government. [Sec 12 (5)]
If there are many parties relating to or in the dispute the government may appoint the
conciliation board consisting of the above said members
According to [Sec 10 (2)] when parties in the industrial dispute apply to the
government to refer dispute to the Conciliation Board and if government satisfies it
shall make the reference to the Conciliation Board.
Investigate the matters relating to the dispute between parties and inducing
the parties to come to a fair and amicable settlement of the dispute.
The Board shall submit its report under this section within 2 months of the
date on which the dispute was referred to it or within such shorter period as
may be fixed by the appropriate Government.
COURT OF ENQUIRY [Sec. 6]: as occasion arises, Government can initiate a Court
of Inquiry. This Court of Inquiry was to find out matters connected with or relevant to
an industrial dispute. Where a Court consists of two or more members, one of them
shall be appointed as the chairman.
A Court of Inquiry looks into only matters which are referred to it by Government and
submits its report to the Government ordinarily within certain period from the date of
reference.
ADJUDICATION
SECOND SCHEDULE
According to [Sec 10 (2)] when parties in the industrial dispute apply to the
government to refer dispute to the labour court and if government satisfies it
shall make the reference to the labour courts.
(b) he has been a District judge or an Additional District judge for at least three
years, or
(c) he has held the office of the chairman or any other member of the Labour
Appellate Tribunal or of any Tribunal for at least two years, or
(d) he has held any judicial office in India for not less than seven years, or
(e) he has been the presiding officer of a Labour Court constituted under any
Provincial Act or State Act for at least five years.
(g) as the case may be, before being appointed as the presiding officer; or (g) he is
an officer of Indian Legal Service in Grade III with three years’ experience in the
grade.”
Industrial Tribunal [Sec. 7A]: The appropriate Government may, by notification in
the Official Gazette, constitute one or more Industrial Tribunals for the adjudication of
industrial disputes relating to any matter, whether specified in the Second Schedule
or the Third Schedule and for performing such other functions as may be assigned to
them under this Act.
SECOND SCHEDULE
THIRD SCHEDULE
According to [Sec 10 (2)] when parties in the industrial dispute apply to the
government to refer dispute to the industrial tribunal and if government
satisfies it shall make the reference to the industrial tribunal.
National Tribunal [Sec. 7 (B)]: The Central Government may, by notification in the
Official Gazette, constitute one or more National Industrial Tribunals. Its main
function is the adjudication of industrial disputes which involve questions of national
importance or affecting the interest of two or more States.
According to [Sec 10 (2)] when parties in the industrial dispute apply to the
government to refer dispute to the National Tribunal and if government satisfies it
shall make the reference to the National Tribunal.
The Central Government shall appoint a National Tribunal consisting of one person
only.
The Central Government may appoint two persons as assessors to advise the
National Tribunal.
ARBITRATION
9C. every industrial establishment employing 20 or more workmen shall have one or
more Grievance Redressal Committee for the resolution of disputes arising out of
individual grievances.
Nothing contained in this section shall apply to the workmen for whom there is
an established Grievance Redressal Mechanism in the establishment
concerned.”
where the award has been given by a National Tribunal, that it will be
inexpedient (not advisable or not practicable) on public grounds affecting
national economy or social justice to give effect to the whole or any part of the
award, the appropriate Government, or as the case may be, the Central
Government may, by notification in the Official Gazette, declare that the
award shall not become enforceable on the expiry of the said period of thirty
days. [Sec 17A (1) (b)].
A settlement shall come into operation on such date as is agreed upon by the
parties to the dispute, and if no date is agreed upon, on the date on which the
memorandum of the settlement is signed by the parties to the dispute.
An award shall remain in operation for a period of one year from the date on
which the award becomes enforceable under section 17A: Provided that the
appropriate Government may reduce the said period and fix such period as it
thinks fit :
the appropriate Government may, before the expiry of the said period, extend
the period of operation by any period not exceeding one year at a time as it
thinks fit, so however, that the total period of operation of any award does not
exceed three years from the date on which it came into operation.
Eg: if the court orders the employer to reinstate the workman in case of
unreasonable removal or discharge , the employer is bind over for one year or in
some cases, the period specified by the courts.
STRIKES AND LOCKOUTS
Strike [Sec. 2 (q)]: Strike means "a cessation of work by a body of persons
employed in any industry acting in combination or a concerted refusal under a
common understanding of any number of persons who are or have been so
employed, to continue to work or to accept employment". Mere stoppage of work
does not come within the meaning of strike unless it can be shown that such
stoppage of work was a concerted action for the enforcement of an industrial
demand.
PROCEDURE OF STRIKES
According to Sec. 22(1) No person employed in a public utility service shall go on
strike in breach of contract-
(a) without giving to the employer notice of strike, as hereinafter provided, within six
weeks before striking; 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 seven days after the conclusion of such proceedings.
Commentary
Subsection 1 is applicable to the workmen employed in public utility services and
lays down that "no person employed in a public utility service shall go on without
following below said steps
1. Notice of strike (with or without the date of strike) to the employer by the
employees is mandatory.
2. If the date of strike by the employees is not mentioned in the notice such
notice is valid for six weeks only.
3. If the date of strike is mentioned in the notice, the date of strike should not be
before the expiry of 14 days from the date of notice of strike according to the
clause (b).
4. Therefore employees should not go on strike before the expiry of 14 days
from the date of issue of notice of strike to the employer.
5. Notice of strike without the date of strike is valid for six weeks only, if
employees do not go on strike within six weeks, again a fresh notice of strike
by employees is necessary if they want to go on strike.
6. Employees should not go on strike during the pendency of any conciliation
proceedings before a conciliation officer and seven days after the conclusion
of such proceedings.
The sub-section(l) also prohibits the workers from going on strike before the expiry of
the date mentioned in the strike (clause (c)). It necessarily follows that such date can
be fixed after the period of fourteen days during which workers cannot go on strike
(clause b). Now in clause (a) the phrase “within six weeks before striking” is
incorporated to determine the effectiveness of the notice given by the workmen. In
other words the notice of strike given by the workmen in accordance with Section 22
will be effective only for a period of six weeks, after the expiry of which, another fresh
notice would be required. This can be explained more clearly by an example.
Suppose workmen give a notice of strike under Section 22 on 1.1.2001 and fix the
date to go on strike as 20.1.2001. Now they cannot go on strike before 20.1.2001 as
is required under clause c. They cannot fix any date in the notice in this case before
14.1.2001 as they are prevented from going on strike “within 14 days” of giving such
notice by virtue of clause (b). Thus the requirements of both the clauses (b) and (c)
arc complied with. Now suppose workmen do not go on strike on or after 20.1.2001,
the date fixed by them in the notice of strike and kept quite for several months. Then
suddenly they go on strike on any day after several months. This situation would
defeat the very purpose of the I.D. Act to avert stoppage of
work. Therefore to avoid such situation it is laid down in clause (a) that the workmen
cannot go on strike “without giving to the employer notice of strike within six weeks
before striking”. It means that, in this example, the workmen cannot go on strike in
consequence to their notice given on 1.1.2001 after the expiry of six weeks i.e.
15.2.2001, thus the effect of the notice is confined to a period of six weeks requiring
the notice “within six weeks before striking”.
Lastly the workmen cannot go on strike during the period of pendency of any
conciliation proceeding before the Conciliation Officer and seven days after the
conclusion of such proceedings (clause d).
Same conditions are incorporated under sub-section (2) relating to the employers
who, too, cannot declare lockout without following the requirements laid down in
clauses (a) to (d) of sub-section 2.
It must be noted .hat Section 22 of the I.D. Act does not totally prohibit the strike or
lockout, but requires the parties engaged in Public Utility Service to give notice
before resorting to the double-edged weapon of strike or lockout. This was also
clarified by Court in State of Bihar v. Deodhar Jha
Example:
Hi,
We are engineering industry, I am working as Plant HR. since last 2 months
negotiations were going on on wage settlement with workers union. this union is
registered but it is not recognised union as per MRTU & PULP Act. but yesterday all
of sudden the committee members has walked out of meeting and stopped the work
and went out side the gate and started shouting slogans against Management.
Ans)Worker strike is illegal strike you can make notice against Union and submit the
nearest labour office. after that labour officer is inspection on industry and discussed
with management and union leader.
Facts [+]
New Delhi,2012: Air India pilots was called for strike on May 7 and continued till
July 3, is the second longest strike Indian aviation history, has caused loss of Rs.
600 crores to Air India Management. The reasons behind commencement of strike
by Air India pilots were irregularities and non-payment of salaries to pilots by Air
India management. On this reason few pilots were dismissed from the services for
not attending their duties to run flights and for causing loss to the management and
Air India management approached the Delhi High Court requesting it to consider as
illegal strike by pilots. Delhi High Court supported Air India management and
declared it as illegal strike on the grounds of not following the procedure of strike. On
July 4 Delhi High Court gave them 48 hours to join duty and asked the
management to consider their grievances. Pilots on strike have agreed to join duties
and also demanded to reinstate dismissed pilots into the services.
PROCEDURE OF LOCKOUTS
According to Sec. 22(2)
(a) without giving to the employer notice of Lockout, as hereinafter provided, within
six weeks before lockout; or
(c) before the expiry of the date of lockout specified in any such notice as aforesaid;
or
(d) during the pendency of any conciliation proceedings before a conciliation officer
and seven days after the conclusion of such proceedings.
Commentary
Subsection 2 is applicable to the workmen employed in public utility services and
lays down that "no person employed in a public utility service shall go on without
following below said steps
No employer carrying on any public utility service shall lock-out any of his workman
(a) without giving them notice of lock-out as hereinafter provided, within six weeks
before locking-out; or
(b) within fourteen 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 seven days after the conclusion of such proceedings.
Section
22 Prohibition of strikes and Lockouts (Notice is mandatory in public utility
services)
23 General prohibition of strikes and Lockouts (if said matter is pending
before board, a Labour Court, Tribunal or national tribunal or arbitrator
as mention under Sec 10 & 10A or settlement or about is in operation)
10 Reference of disputes to Boards, courts or Tribunals
10A Voluntary reference of disputes to arbitration
(a) during the pendency of conciliation proceedings before a Board and seven
days after the conclusion of such proceedings;
(b) during the pendency of proceedings before a Labour Court, Tribunal or
National Tribunal] and two months after the conclusion of such proceedings;
(bb) during the pendency of arbitration proceedings before an arbitrator and
two months after the conclusion of such proceedings, where a notification has
been issued under sub- section (3A) of section 10A; or] [10A. Voluntary
reference of disputes to arbitration]
(c) during any period in which a settlement or award is in operation, in respect
of any of the matters covered by the settlement or award.
Strike lockout
Workers shall do the strike. Employer or owner shall do the lockout.
Workers do the strike because of the Owners do the Lockout because of the
grievance and for its solution. disputes between owners and workers.
Prior notice should be given by the Prior notice should be given by the owner
worker to the owner of the factory. of the factory to the worker.
Threat to go on strike:- in State of Bihar v. deodhar Jha (All India Reporter 1958
Patna. 51), the Patna High Court examine the point as to whether or not threat go
on strike is illegal. the court said that the actual resorting to strike cannot always
be illegal, therefore threat to go strike is not illegal.
Section
22 Prohibition of strikes and Lockouts (Notice is mandatory in public utility
services)
23 General prohibition of strikes and Lockouts (if said matter is pending
before board, a Labour Court, Tribunal or national tribunal or arbitrator
as mention under Sec 10 & 10A or settlement or about is in operation)
10 Reference of disputes to Boards, courts or Tribunals
10A Voluntary reference of disputes to arbitration
Penalty for illegal strikes and lock-outs.- (1) Any workman who commences,
continues or otherwise acts in furtherance of, a strike which is illegal under this Act,
shall be punishable with imprisonment for a term which may extend to one month, or
with fine which may extend to fifty rupees, or with both.
In Veiyra v. Fernandez, the Court held that employer has an option for lay-
off or retrenchment.
Lay-Offs
Non-applicability of layoff provisions to certain
establishments
According to section 25A of chapter VA of Industrial Dispute Act 1947, certain
establishments do not have any provisions relating to layoff of the employees by the
employer. In such circumstances, layoff would be considered without any authority of
law.
Employees employed in the above said establishments do not have right for laid-off
compensation. However if there is any agreement between employer and employee
for that purpose or on the grounds of social justice, laid-off competition can be paid.
In South India Corporation Ltd. v. All Kerala Cashewnut Factory
Workers' Federation the Court held that if any establishment is not covered
within the scope of this Chapter V-A, the Tribunal has no right to grant relief on the
basis of any fanciful notions of social justice.
In Vijay Kumar Mills v. Labour Court, the Madras High Court held that the
badli workman is one whose name is not borne on muster rolls of the establishment.
If his name is found on the muster roll, even if he is a badli workman, he is entitled to
lay-off compensation.
For Industrial establishments in which not less than 100 workmen are employed, on
an average per working day and are of not being seasonal character and in which
work is performed only intermittently, have to seek prior permission from competent
authority by the employer to layoff workman. if the employer does not apply to seek
prior permission or where such permission is refused by the competent authority
specified above, to effect lay-off, such lay-off shall be considered as illegal and the
workmen laid-off shall be entitled to all benefits as if they have not been laid-off.
Retrenchment
Definition of retrenchment of employee
[Section 2(oo)]
"retrenchments" means the 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-
In Duryodhan Naik v. Union of lndia, the Court held that the discharge of
surplus labour by the employer· for any reason whatsoever, otherwise than as a
punishment inflicted by way of disciplinary action is called retrenchment, but where
the services of all workmen have been terminated by the employer on a real and
bona fide closure of business or the undertaking is taken over by another employer,
it has no application of retrenchment.
Retrenchment conditions
To an industrial establishment (not being an establishment of a seasonal character
or in which work is performed only intermittently) in which not less than [50 but not
more than 100] workmen were employed on an, average per working day for the
preceding twelve months.[Section 25A]
1. Employee should have continuous service for not less than one year under an
employer
2. One month’s notice in writing indicating the reasons for retrenchment or
payment for the period of the notice
3. Compensation which shall be equivalent to fifteen days’ average pay[for every
completed year of continuous service] or any part thereof in excess of six
months.
4. Notice in the prescribed manner is served on the appropriate government
1. Employee should have continuous service for not less than one year under an
employer
2. Three months notice in writing indicating the reasons for retrenchment or
payment for the period of the notice
3. Compensation which shall be equivalent to fifteen days’ average pay[for every
completed year of continuous service] or any part thereof in excess of six
months.
4. An application for permission to specified authority for the intended
retrenchment and a copy of such application shall also be served
simultaneously on the workmen concerned in the prescribed manner.
5. Compulsory permission from competent authority by employer retrenchment
of workmen
For Industrial establishments in which not less than 100 workmen are
employed, on an average per working day and are of not being seasonal
character and in which work is performed only intermittently, have to seek
prior permission from competent authority by the employer to layoff workman.
April 2012, HYDERABAD: HSBC India did a massive layoff exercise showing
the door to as many as 200 employees ranging from assistant manager to vice
presidents from its centres in Hyderabad alone.The axe had fallen on over 350
employees at HSBC's Pune centres. It is estimated that a total of 750
employees were asked to leave across locations and designations. So from
assistant managers to vice presidents were summoned to the meeting room,
asked to choose between termination or resignation, pack their bags and
leave.
An "adequate" compensation (one month's salary for each year spent in the
company plus three months salary) was part of the layoff deal. While the new
entrants into the international bank are crying hoarse, the senior ones are taking
solace in the cash with some having made Rs 8-15 lakh.
for any misconduct connected with the dispute, discharge or punish, whether
by dismissal or otherwise, any workmen concerned in such dispute,
Alter the term of contract according to standing orders.
Take action against the protected workman.
If employer wants to take above actions against the employee, employer should
makes an application to a conciliation officer, Board, an arbitrator, a Labour Court,
Tribunal or National Tribunal.
UNFAIR LABOUR PRACTICES
FIFTH SCHEDULE
1. To interfere with, restrain from, or coerce, workmen in the exercise of their right to
organise, form, join or assist a trade union or to engage in concerted
activities for the purposes of collective bargaining or other mutual aid or
protection, that is to say, -
(a) threatening workmen with discharge or dismissal, if they join a trade union;
(c) granting wage increase to workmen at crucial periods of trade union organisation,
with a view to undermining the efforts of the trade union at organisation.
(a) an employer taking an active interest in organising a trade, union of his workmen;
and
(b) an employer showing partiality or granting favour to one of several trade unions
attempting to organise his workmen or to its members, where such a trade union is
not a recognised trade union.
(b) discharging or dismissing a workman for taking part in any strike (not being a
strike which it deemed to be an illegal strike under this Act);
(d) refusing to promote workmen to higher posts on account of their trade union
activities;
(e) giving unmerited promotions to certain workmen with a view to creating discord
amongst other workmen, or to undermine the strength of their trade union;
(f) discharging office bearers or active members of the trade union on account of
their trade union activities.
(b) not in good faith, but in the colourable exercise of the employer's rights;
(f) in utter disregard of the principles of natural justice in the conduct of domestic
enquiry or with undue haste;
(g) for misconduct of a minor or technical character, without having any regard to the
nature of the particular misconduct or the past record of service of the workman,
thereby leading to a disproportionate punishment.
6. To abolish the work of a regular nature being done by workmen, and to give such
work to contractors as a measure of breaking a strike.
7. To transfer a workman mala fide from one place to another, under the guise of
following management policy.
8. To insist upon individual workmen, who are on a legal strike to sign a good
conduct bond, as a precondition to allowing them to resume work.
9. To show favouritis or partiality to one set of workers regardless of merit.
10. To employ workmen as "badlis" casuals or temporaries and to continue them as
such for years, with the object of depriving them of the status and
privileges of permanent workmen.
11. To discharge or discriminate against any workman for filing charges or testifying
against an employer in any enquiry or proceeding relating to any
industrial dispute.
12. To recruit workmen during a strike which is not an illegal strike.
13. Failure to implement award, settlement or agreement.
14. To indulge in acts of force or violence.
15. To refuse to bargain collectively, in good faith with the recognised trade unions.
16. Proposing or continuing a lock-out deemed to be illegal under this Act.
1. To advise or actively support or instigate any strike deemed to be illegal under this
Act.
2. To coerce workmen in the exercise of their right to self-organisation or to join a
trade union or refrain from joining any trade union, that is to say –
(a) for a trade union or its members to picketing in such a manner that non-striking
workmen are physically debarred from entering the work places;
(b) to indulge in acts of force or violence or to hold out threats of intimidation in
connection with a strike against non-striking workmen or against managerial staff.
3. For a recognised union to refuse to bargain collectively in good faith with the
employer.
4. To indulge in coercive activities against certification of bargaining representative.
5. To stage, encourage or instigate such forms of coercive actions as willful "go
slow", squatting on the work premises after working hours or "gherao" of
any of the members of the managerial or other staff.
6. To stage demonstrations at the residences of the employers or the managerial
staff members.
7. To incite or indulge in willful damage to employer's property connected with the
industry.
8. To indulge in acts of force or violence or to hold out threats of intimidation against
any workman with a view to prevent him from attending work.
PENALTIES
Sec Reasons Punishment
25U unfair labour practice punishable with imprisonment for a term
which may extend to 6 months or with fine
which may extend to 1000/- rupees or with
both.
26 Illegal Strikes punishable with imprisonment for a term
which may extend to one month, or with
fine which may extend to 50/- rupees, or
with both.
26 Illegal Lock-Outs punishable with imprisonment for a term
which may extend to one month, or with
fine which may extend to one 1000/-
rupees, or with both.
27 Any person who instigates or incites punishable with imprisonment for a term
others to take part in, or otherwise acts which may extend to 6 months, or with fine
in furtherance of, a strike or lock-out which may extend to one 1000/- rupees, or
which is illegal under this Act, with both.
28 Giving Financial Aid To Illegal punishable with imprisonment for a term
Strikes And Lock-Outs which may extend to 6 months, or with fine
which may extend to 1000/- rupees, or with
both.
30 Disclosing Confidential Information Punishable with imprisonment for a term
which may extend to 6 months, or with fine
which may extend to 1000/- rupees, or with
both.
30A Closure of establishment Without punishable with imprisonment for a term
Notice which may extend to 6 months, or with fine
which may extend to 5000/- rupees, or with
both.
31 contravenes the provisions of section Punishable with imprisonment for a term
33 which may extend to 6 months, or with fine
which may extend to 1000/- rupees, or with
both.
The Trade Union Act, 1926
Trade Unions
Trade Union in British English or labor union in American English.
Industrial Relations
Workers participation in Management
(The Constitution of India, Art 43A)
Industrial Disputes
Strikes (Industry)
Lockouts (Industry)
Layoff / Laid off and Retrenchment
Unfair dismissal or wrongful termination of employee
Labour Courts for disputes in India
Objectives:
Trade union is a voluntary organization of workers relating to a specific trade,
industry or a company and formed to help and protect their interests and welfare by
collective action. Trade union are the most suitable organisations for balancing and
improving the relations between the employees and the employer. They are formed
not only to cater to the workers' demand, but also for imparting discipline and
inculcating in them the sense of responsibility.
They aim to:-
Secure fair wages for workers and improve their opportunities for promotion
and training.
Safeguard security of tenure and improve their conditions of service.
Improve working and living conditions of workers.
Provide them educational, cultural and recreational facilities.
Facilitate technological advancement by broadening the understanding of the
workers.
Help them in improving levels of production, productivity, discipline and high
standard of living.
Promote individual and collective welfare and thus correlate the workers'
interests with that of their industry.
to take participation in management for decision-making in connection to
workers and to take disciplinary action against the worker who commits in-
disciplinary action.
June 2012: The National Mazdoor Union (NMU) gave a strike notice to
APSRTC ( Andhra Pradesh State Road Transportation
Corporation) Managing Director with nearly 36 demands. In case management
fails to react, union members have decided to strike from following month.
National Mazdoor Union (NMU) said the 36 demands, four were most
important. "Abolition of contract system in APSRTC, regularisation of nearly
22,000 contract drivers and bus conductors, constitution pay commission were
among these.
June 2012: one of the unions of Visakhapatnam steel plant, Indian National Trade
Union Congress (INTUC), has demanded rupees 1 crore ex-gratia ( compensation)
for the families of the victims of the explosion had occurred at the 'oxygen control
unit' near the Steel Melting Shop-II at Visakhapatnam steel plant which claimed the
lives of 20 persons on 12-june-2012. Visakhapatnam steel plant had already paid 20
lakh rupees to each of the families of the deceased workers and officers. The union
also demanded a permanent job for the Kin of the victims. The deceased include
Deputy General Manager (Construction) L Srihari and Deputy General Manager
(instrumentation) P V Karunakar.
Definitions
Appropriate Government [Sec. 2]: In relation to Trade Unions whose objects are
not confined to one state 'the appropriate Government' is the Central Government. In
relation to other Trade Unions, the 'appropriate Government' is the State
Government.
Executive [Sec. 2(a)]: Executive means the body of which the management of the
affairs of a Trade Union is entrusted.
Trade Dispute [Sec. 2(g)]: A trade dispute means any dispute between the
employers and workmen, the workmen and workmen and the 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. 'Workmen' mean all
persons employed in trade or industry whether or not in the employment of the
employer with whom the trade dispute arises.
Trade Union [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 or between workmen and workmen or between employers
and employers for imposing restrictive conditions on the conduct of any trade or
business and includes any federation of two or more Trade Unions.
5. Registered Trade Union [Sec. 2(e)]: A registered Trade Union means a 'Trade
Union' registered under the Act.
Trade Unions can be registered only under the Trade Union Act, 1926.
(1) Any seven or more members of a trade union may, by subscribing their names to
the rules of the trade union and by otherwise complying with the provisions of this
Act with respect to registration, apply for registration of the trade union under this
Act.
Provided that no Trade Union of workmen shall be registered unless at least ten per
cent. or one hundred of the workmen, whichever is less, engaged or employed in the
establishment or industry with which it is connected are the members of such Trade
Union on the date of making of application for registration:
Provided further that no Trade Union of workmen shall be registered unless it has on
the date of making application not less than seven persons as its members, who are
workmen engaged or employed in the establishment or industry with which it is
connected .''.
(2) Where an application has been made under sub-section (1) for the registration of
a trade union, such application shall not be deemed to have become invalid merely
by reason of the fact that, at any time after the date of the application, but before the
registration of the trade union, some of the applicants, but not exceeding half of the
total number of persons who made the application, have ceased to be members of
the trade union or have given notice in writing to the Registrar dissociating
themselves from the application.
Commentary:
(a) the names, occupations and addresses of the members making application;
(aa) in the case of a Trade Union of workmen, the names, occupations and
addresses of the place of work of the members of the Trade Union making the
application;''.
(b) the name of the trade union and the address of its head office; and
(c) the titles, names, ages, addresses and occupations of the 8[office-bearers] of the
trade union.
If Trade Union has already been existing for one year or more, for its registration the
members should submit all the details such as general statement of the assets and
liabilities of the Trade Union going to be registered by the Registrar of Trade Union.
c) General funds of the Trade Union by its members should be properly used for
Lawful purpose.
e) Half of the members of the trade union must be the member who actually
engaged in an industry with which trade union is connected.
(ee) the payment of a minimum subscription by members of the Trade Union which
shall not be less than—
(ii) three rupees per annum for workers in other unorganized sectors; and
(iii) twelve rupees per annum for workers in any other case;
(hh) executive members and other office bearers should be elected for the period of
maximum 3 years..
i) Funds of the Trade Union should be safe guarded, annual audit is necessary, and
account books should be maintained for the purpose of inspection if necessary.
Power to call for further particulars and to require alteration of name. [Sec 7]
If the Name of the Trade Union is already existed or similar to other Trade
Unions names, registrar is having power to order for changing of the name.
Registration [Sec 8]
All the documents submitted with details and information is correct by the members
of the Trade Union going to be registered, the Registrar will register the Trade
Union.
As per the Trade Unions Act, 1926, any workman who works in a factory can join a
union of that factory. But trade unions typically have only permanent workers as
members. The reason cited is that contract workers are not employees of the
employer in question (the manufacturing unit), and so should not find representation
in a union body formed for the purpose of negotiating with the said employer.
Contract workers are hired by the labour contractor, who is empanelled with the
employer as a supplier of contract labour, and who pays their salaries.
But not being on the rolls of an employer does not disqualify a contract worker from
being a member of a factory’s union. Labour law experts point to section 2 (g) of the
Trade Union Act, which defines “workmen”, for the purposes of a trade union, as “all
persons employed in trade or industry whether or not in the employment of the
employer with whom the trade dispute arises”.
This question of who can become a member of a trade union also came up
recently in the case of Chander Bhan, etc versus Sunbeam Autoworkers Union
in the Gurgaon District Court. In a judgment that went largely unnoticed, the
court ruled that any workman employed by a factory — irrespective of whether
he was a permanent worker or not, fulfilled the Industrial Dispute (ID)
Act’s definition of workman or not — was eligible to participate in union
activities.
In the Gurgaon industrial belt, Sunbeam Autoworkers Union is probably the only
union that gives membership to workers with less than 240 days’ service, and it
needed a court intervention to be able to do so. But even it does not offer
membership to contract workers. In fact, no union anywhere gives membership and
voting rights to contract workers. The reasons are many. First, in an industrial
climate extremely hostile to any union activity, workers believe that forming a union
that also includes contract workers is bound to provoke the management into even
greater hostility. Second, managements refuse point blank to discuss with unionists
any issues concerning contract workers. Third, contract workers are far more
insecure compared to regular workers. In an era where companies frequently
terminate even a permanent worker for engaging in union mobilisation, the stakes
are too high for contract workers, who could be summarily dismissed, without any
consequences, by the management.
Fourth, and this is an unpalatable truth for most trade unionists, permanent workers
themselves don’t want to extend union membership to contract workers. In a factory,
say, that employs 300 permanent workers and 1,200 contract workers, any union
that gives voting rights to contract workers would instantly marginalise permanent
workers. Given that permanent workers’ salaries are much higher, economic self-
interest militates against the inclusion of contract workers in union membership.
As a result, India’s contract workers, with the exception of some PSUs in select
sectors such as steel and coal, remain both heavily exploited and largely un-
unionised, with the lack of unionisation and exploitation reinforcing each other.
http://www.thehindu.com/opinion/op-ed/g-sampath-on-sc-rulling-on-contract-workers-getting-equal-pay-on-parallel-
tracks/article9296662.ece#
Court may dismiss the appeal, or pass an order directing the Registrar to
register the Union and to issue a certificate of registration under the provisions
of Section 9 or setting aside the order for withdrawal.
Registered Trade Union will have perpetual succession (will no stop after the
death of the members of the Trade Union.
Every registered Trade Union will have common seal.
Every registered Trade Union can acquire and hold both movable and
immovable property.
Every registered Trade Union can sue others.
Every registered Trade Union can sued by others also.
But the Unions are bound to utilize the funds only for the purposes specified in the
Act.
If funds are spent for any purposes other than the above, such expenditure is treated
as unlawful and the Trade Union can be restrained by the Court for applying its funds
in any other purposes.
The funds collected for political purposes shall not be clubbed with the general fund.
No workman is compelled to contribute in this fund and the nonpayment in this fund
cannot be made a condition for admission to the Trade Union.
Delay in the matters relating to the member of the Trade Union regarding the
trade disputes like ‘contract of employment’, (is an agreement between an
employer and an employee which sets out their employment rights,
responsibilities and duties.)
Registered Trade Union shall not be liable in any suit or other legal
proceeding in any Civil Court for the tortious act (wrongful act) committed by
the agent of the Trade Union.
Registered Trade Union is not liable for the vicarious liability (if agent commits
mistake intentionally without the knowledge of the Trade Union, agent is liable
but not the Trade Union)
Change of name [Sec 23] - Any registered Trade Union may, with the consent of not
less than 2/3rd of the total number of its members can change its name.
AMALGAMATION OF TRADE UNIONS
[Sec 24] Any 2 or more registered Trade Unions may become amalgamated together
as one Trade Union with or without dissolution or division of the funds of such Trade
Unions or either or any of them, provided that the votes of at least one-half of the
members of each or every such Trade Union entitled to vote are recorded, and that
at least 60% of the votes recorded are in favor of the proposal.
[Sec 25]
in case of change in the name of the Trade Union, written notice of the
change of name must be signed by secretary and 7 member of the Trade
Union are required to sent to registrar of the Trade Union.
Trade Union name should not match with the other Trade Union names.
If registrar satisfies with provisions and rules followed by the members of the
Trade Union for dissolution, he will confirm the dissolution.
Funds shall be divided by the Registrar among its members if there is no rules
mention by the Trade Union in distribution of the funds.
Every registered Trade Union shall have to submit annually to the Registrar a
general statement of all receipts and expenditures during the year ended the 31st
day of December. Such a statement shall be accompanied by another statement
containing assets and liabilities of Trade Union as existing on 31st December each
year.