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B (3 YEARS)
THIRD SEMESTER
PAPER V
LECTURES ON
LABOUR &
INDUSTRIAL LAWS
BY VIVEK NAHADIA CA CS (LLB)
Advantages
Very simple language
Coverage of almost entire syllabus
Almost all Previous Examination
Questions covered
The book covers almost all the
important questions
It's not boring black and white. It is a
coloured note book.
You will get the note book along with
videos on YouTube. I will use the same
book in the video for teaching. So it will
be very easy to remember and write the
exams well.
disclaimer
Selection of important questions is out of
my in depth research and I don't guarantee
anything.
Ans:
i. The birth place of trade unionism was Great Britain.
ii. From Great Britain trade unionism came to India
iii. The history of Trade unionism in India can be studied by dividing it into
threeperiods as follows
Period prior to First World War
Period up to Independence
Post‐Independence period till now
Period Prior to First World War:
i. It was the initial stage of Trade Unionism in India
ii. Like United Kingdom and United States of America, even in India Trade Unionists were
harassed by Government and employers
iii. Industries were fully in the hands of Britishers.
iv. British Government did not encourage the development of Trade Union in India
Period up to Independence:
i. Several trade unions were formed in Bombay, Madras, Punjab etc.
ii. Indian National Congress began to support trade union movement in India.
Post‐Independence Period:
i. After Independence Trade Unionism took major changes.
ii. Several Trade Unions came into existence.
iii. There was collaboration of Political Parties and Trade Unions.
2. Definition of Trade Union
Ans:
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 or for imposing any
restrictions in trade and includes federation of trade unions.
3. Registration of Trade Union
Ans:
i. Appointment of Registrars:
Registrar means registrar appointed by Appropriate Government
Appropriate Government can appoint any number of Registrars of Trade
Unions as it thinks fit.
ii. Powers of Registrars:
Registration: Registrar is the competent person to register a trade union.
He shall maintain a Register of Trade Unions. He may reject application or
call for further information.
Certificate of Registration: After registering a Trade Union Registrar issues
a Certificate of Registration.
Cancellation of Registration: Registrar is empowered to cancel registration
of Trade Union.
Dissolution of Registration: Registrar is empowered to dissolve a Trade
Union.
Amalgamation of Trade Unions: Registrar is empowered to Amalgamate
trade unions.
Returns: Every Registered Trade Union shall file Annual Returns to the
Registrar.
iii. Mode of Registration:
Seven or more members of a Trade Union can apply for registration.
iv. Application for Registration:
Application for Registration shall be accompanied by two papers:
Copy of Rules of Trade Union and
Statement of following particulars:
a) Details of Members: Name, Occupations and addresses of
members making application.
b) Details of Office‐Bearers: Name, occupations and addresses of
office bearers of the Trade Union.
c) Details of Trade Union: Name of the Trade Union and address of
it's head office.
v. Provisions to be contained in Rules of the Trade Union:
Name of the Trade Union.
Objects of the Trade Union.
List of members of Trade Union.
List of Office Bearers of Trade Union etc.
vi. Power to call for further information:
Registrar has the power to call for further information for registration
purposes.
vii. Registration:
Registrar on being satisfied that all the requirements are complied with,
shall register the trade union.
viii. Certificate of Registration:
The Registrar shall issue a Certificate of Registration which shall be
conclusive evidence that the trade union has been registered under the
act.
4. Immunities provided for Registered Trade Unions
There are two types of immunities provided:
Immunity from Criminal suits and
Immunity from Civil suits.
Immunity from Criminal Suits:
No office bearer or member of a Registered Trade Union shall be liable to punishment in
respect of agreements made between the members for objects of the Trade union.
If the agreement is to commit an offence then they are liable.
The object of this section is to safeguard Trade Union, it's office bearers and members
from the mighty employer and his political influence.
This is not an absolute right. It depends upon facts and circumstances of each case.
Immunity from Civil Suits:
This immunity is also available to:
a) Registered Trade Union
b) Office Bearers and
c) Members
Immunity from Civil liability
Immunity from Tortious Liability
Immunity from Agreement in restraint of trade
5. Dissolution of Registered Trade Unions
Procedure:
Notice of Dissolution signed by 7 members and by the Secretary of Trade Union shall
be sent to the Registrar.
This notice shall be sent within 14 days of Dissolution.
On receipt of such notice, Registrar has to register “Registration of Dissolution”.
6. Amalgamation of trade union
Any two or more registered Trade Unions may get amalgamated together as one Trade
Union with or without dissolution.
Provided at least one half of the members vote and 60% of the votes recorded are in favour
The registrar of the state in which head office of the registered Trade union is situated may
register the Trade Union
7. Collective bargaining
Employer is superior in position due to his wealth
Employee is weaker than the employer
He is not in a position to bargain with his employer
But a group of employees can successfully bargain with the employer
Pre‐Requisites of a successful collective bargaining
Bargaining Agent: The union of employees is called bargaining agent
Commitment: Both the employer and employees must show commitment to resolve
conflicts
Reliance on facts than emotions: Negotiations will become fruitful if both the parties
rely on facts and facts only and not emotions
Mutual Recognition of rights and interests :Trade union must recognise rights and
interest of employers and even employers must recognise the same for employees
8. Definition of Industrial Dispute
Any dispute between employers and employers or between employers and workmen or
between workmen and workmen which is connected with employment of any person.
9. Difference between Industrial Dispute and Individual dispute
Industrial Dispute: defined above
Individual Dispute:
A dispute between an employer and a single workman cannot be termed as an
Industrial Dispute.
Thus for an individual dispute to become industrial dispute it has to be established that
it had been taken up by union of employees or a group of employees.
Dismissal of an individual workman can become an Industrial dispute notwithstanding
that no other workman is a party to the dispute.
Tests to determine when an individual dispute becomes industrial dispute:
Who has sponsored the dispute: Individual dispute must be supported by majority
of employees of the industry. Then only individual dispute is treated as industrial
dispute.
Representative character: The dispute must be represented by a number of
workmen.
Time of support: Individual dispute must be supported at the time of it's
representation and not after.
Proof of Support: There must be a proof of Support.
Community of interest: Majority of workmen must show interest in individual’s
grievance.
10. Aims and Objectives of Industrial Disputes Act.
Aims and Objectives:
The objects of the act are to prevent and settle the industrial disputes and
maintain industrial peace so that the industries prosper by which the employees,
employers and entire country should develop
The main object of the act is to harmonise the relations between the employer and
employees.
Ensures social justice to both employers and employees
To investigate and settle disputes between:
a) Employers and employers
b) Employer and workmen and
c) Workmen and workmen
Prevention of illegal strikes and Lockouts
Relief to workmen in the matter of lay off and Retrenchment
Collective bargaining etc.
11. Define industry
A. There must be a systematic activity
Such activity must be carried on by cooperation between employers and employees
It is immaterial whether workmen are employed directly or through agency
Object is production or supply of goods or services
Such production is to satisfy human wants.
Immaterial whether capitalhas been invested or not
Immaterial whether such activity is carried on to earn profit or not
Bangalore water supply and sewerage board vs Rajappa
Workers sued the board. Management of the board contended that it being a statutory body
discharging legal functions is not an industry. The Labour court rejected the objection of the board.
Whether hospital is an industry
There were different opinions
In some cases the Supreme Court gave a decision that hospitals are public utility service and
therefore industry
While in other cases Supreme Court said that Hospital was not an industry since it is entirely a
charitable institution
Finally, Hospitals do not come in the definition of industry.
Whether educational institute is an industry
Osmania University's case (AP)
The Supreme Court opined that a university is not an industry.
University of Delhi:
Research institute is also not an industry.
Whether Statutory corporations, Government departments are industry
Municipal corporations are industry since the work of municipality is of business and trade
12. Triple test to identify industry
Industry: Where there is
a) Systematic activity
b) Organised by cooperation between employer and employees
c) For the production and distribution of goods or services
d) To satisfy human wants
If the above conditions are fulfilled, it is called an industry.
Triple test:
For an establishment to become an industry the following three main tests should exist:
1) Systematic activity
2) Service orproduction and
3) Cooperation between employer and employees
Other important points
a) Industry does not include spiritual or religious services
b) Absence of profit motive is irrelevant
13. Public utility service
Service most essential and useful to public at large
Example:
Railway
Telephone
Postal service
Power, light, water etc.
14. Define Workman
It is a very exhaustive definition
Workman means any person employed in any industry to do any manual, unskilled, skilled,
technical, operational, clerical or supervisory work for hire or reward and includes any
person who has been dismissed.
15.Discuss the law relating to strikes under industrial Disputes Act
Ans.
Strike means stopping of work
The stopping of work should be by a body of persons
Such body of persons should be employed in an industry
They must be acting in combination
There must be a planned refusal by them.
They must be comprised of persons who have been employed
The purpose of refusal is not to continue the work until demands are fulfilled.
Kinds of Strikes:
1. Generalstrike
2. Sit downstrike or stay instrike
3. Tool downstrike or pen downstrike
4. Hunger strike
5. Go slowstrike
6. Go speedstrike
7. Gherao
1. General strike:
Very common type of strike
The workers first give strike notice to the employer.
On failing response they launch strike.
2. Stay in or Sit down strike:
Employees occupy usual positions in the establishment.
But they do not work
They just sit and do nothing.
3. Pen down or Tool down Strike
It is like sit down strike.
Pen Down occurs in Banks and Government offices.
Tool down strike occurs in factories etc.
4. Hunger Strike
Workers do hunger strike to get their demands fulfilled.
5. Go slow
Workers go to organisation
Sit at work places
They actually work
But work very slow.
6. Go speed
Workers give notice
Give time to management to fulfill their demands.
If Management neglects, they wear black badges and work harder
to show displeasure against the employer.
Gherao:
Sanskrit term
Workers encircle the employer.
16. According to legality of the strike what are its kinds
As per legality, strikes are of three types
1. Legalstrike
Whenever a dispute arises, the trade union puts it before the management for
settlement
If there is no settlement, trade union approaches the Appropriate Government
If the Appropriate Government does not solve the problem then the trade union
should give a notice to employer
Employer on receipt of the strike notice shall inform the Conciliation officer
Then negotiations with trade union starts
If negotiations are not successful, workers launch a strike from the date mentioned
in the strike notice.
This is called legal strike
2. Illegal strike
Right to strike is recognised by almost all countries
But it is not a fundamental right
If the prescribed conditions are not followed then the strike is called illegal strike
3. Unjustified strike
When a strike is legal and reasons for the Strike are genuine it is called
justifiedstrike
When a strike is initiated by employees to harass the employer then it is called
unjustified strike
The difference between justified and unjustified strike depends upon facts and
circumstances of each case.
17.When strike is prohibited in a public utility service
When any industrial dispute arises in a public utility service, and a notice of strike or lockout is
given in connection with an industrial dispute, the appropriate Government is bound to refer it to
adjudication by Conciliation and it is obligatory on the part of the Conciliation officer to hold
conciliation proceedings.
Further, the regulatory provisions on strike and Lockouts are more rigorous with regard to public
utility service industries.
18. Discuss the law relating to Lockouts
Meaning
Lockout means to shut or to close
It is an act of employers preventing employees from entering the place of work
Temporary closure of place of employment
Concept
Strike is a weapon in the hands of employer
It is temporary
It includes any number of persons employed in the establishment
Illegal lockout
If employer declares lockout without following the procedure prescribed under the act
Strike Lockout
Weapon of workers Weapon of employer
Two kinds: legal and illegal Two kinds: legal and illegal
19. Meaning of the word Standing order. Procedure for Certification of Standing order.
Ans.
Standing orders: Employers and Employees mutually agree and frame general rules pertaining to
working conditions etc. These rules are called Standing orders.
Procedure
Submission of Draft Standing order:
Draft Standing orders must be prepared by the employer in 5 copies mentioning the rules of
service which will be adopted by his company and submit them to the Certifying Officer.
Conditions
There are two conditions for Standing Orders:
Every provision should be made for every matter applicable in the schedule
Standing orders must be prepared in conformity with the act
Certification of Standing order
On receipt of the draft Standing order, the Certifying Officer will send a copy of it to the
Trade union requiring objections from them.
The trade union shall submit their objections to the certifying authority
After receiving objections from both sides, the certifying authority shall follow natural
justice and make an order
He shall then certify the standing orders
Appeals
Any aggrieved party among employees or employers may make an appeal against the Certified
Standing order
Date of operation of Standing orders
On the expiry of 30 days from the date of certification
Register of Standing orders
Certifying Officer should maintain a Register of Standing orders
Pasting of Standing orders
Every employer must paste the Standing orders at prominent place
20.Modification of Standing orders
The standing orders may be modified or altered at any stage ie., Before or after
certification
Modifications of Standing orders is based upon principles of Natural justice
Modes of modification
Modification before certification
Employer files 5 copies of draft standing orders before certifying officer
Certifying officer sends copies of it to trade unions
Trade unions may submit their objections.
After hearing both sides Certifying officer may modify or alter the draft standing orders.
Modification after Certification:
General rule: Once standing orders are certifiedand registered by Certifying officer, they
cannot be modified.
But they can be modified under two conditions:
a) By an agreement between employer and employees
b) At least 6 months have been lapsed from the date of certification.
21.Model Standing order
They are a model or example of Standing ordermade by the Government.
Taking this model as a base, employer of an industry prepares his own standing orders
They mean the Standing Orders prescribed in the act
Contents of the Model Standing Order
Publication of working time
Publication of list of Holidays
Publication of wage ratesetc.
22.Advantages of a Registered Trade union
Ans
It is a juristic person
It can sue and can be sued in its own name
Has perpetual succession
Can acquire properties in its own name
Can contact in it's own name.
23. Retrenchment
Discharge of surplus labour
There must be termination of service of a workman by employer
It may be for any reason
Discharge for the following reasons is not called Retrenchment:
Punishment
Voluntary retirement
Retirement on reaching the age of superannuation
Termination as a result of non‐renewal of contact between employer and employee
Termination on account of continued I'll health.
24. Difference between layoff and Retrenchment
Layoff:
Temporary
Industry stops it's function
All or a group of employees are refused enjoyments
Laid off compensationis paid
All the laid off employees should be taken back in their usual posts later
Retrenchment
Permanent
Industry does not stop it's function
Retrenchment compensation is paid
Not mandatory to re appoint retrenched workmen.
25. Works Committee
It shall be constituted under the following circumstances
Establishment must be an Industrial establishment
There must be 100 or more workmen
Appropriate Government may require an employer to constitute a works committee
Constitution of works committee
Representatives of employer and employees
Number of representatives of workmen shouldn't be less than representatives of
employer
There must be equilibrium between the two forces.
Representatives of workmen shall be chosen from
Workmen engaged in establishment and
In consultation with their Trade Union
Purpose and Object:
The primary purpose of works committee is to settle the disputes between employer and
employees and to improve National economy
Number of members
Shall not exceed 20
Term of office
2 years
Meetings
Once in a month
26. Conciliation
Conciliation is a process by which a third party encourages the parties to an industrial
dispute, to come to a balanced conclusion.
The decision is given in the form of an agreement
The Industrial disputes act focuses on settlement of labour and management disputes with
the help of a third party
Under the act, Conciliation is compulsory in all disputes in public utility services
There are two authorities set up for Conciliation:
a) Conciliation officer and
b) Board of Conciliation
27. Voluntary Arbitration
It is a way to Employers and Employees to settle their disputes voluntarily by way of
Arbitration
They can refer their disputes to Arbitration by an arbitration agreement
They can refer the dispute to Arbitration provided the dispute has not been referred to
Labour Court
The Arbitrator shall investigate the dispute and submit the Arbitration award duly signed
to the AppropriateGovernment.
28. Unfair Labour practice
General Meaning: Practices which are not fair
Unfair Labour Practices mentioned in the fifth schedule of the act.
It saves the workers from the exploitation of employers
At the same time it also saves employers from the unfair practices of trade unions and
workers
No Employer or workman or a trade union whether registered or not shall commit any
unfair Labour practice
Unfair Labour Practices as mentioned in the fifth schedule:
On the part of Employers
1. Threatening workmen with dismissal if they join a trade union
2. Threatening a closure if a trade union is organised
3. Granting wage increase to workmen at crucial periods of trade union meetings
4. Punishing a workman because he made even other workmen to join trade union
5. Dismissing a workman for taking part in strike
6. Changing seniority rating of workmen because of trade union activities
7. Refusing to promote workmen because of trade union activities
8. To transfer a workman mala fide
9. To show favouritism and partiality
On the part of workmen and trade unions
1. Commence an illegal strike
2. To involve in coercive activities
3. To stage demonstrations at the residence of employer
4. Damage of employer’s property
5. To involve in acts of violence
29. Victimisation
Worker who has become a victim of unfair action taken by employer by reason of his trade
union activities
The worker is made a victim and is subject to prosecution, harassment or punishment for
no mistake of his own
It is an unfair Labour practice on the part of an employer
It is done by an employer to punish an innocent worker
30.Recovery of money due from an employer
Where any money is due to a Workman from an employer under a settlement, the
workman himself or any other person authorized by him make an application to
Appropriate Government and if the Appropriate Government is satisfied that the money is
due, it shall issue a certificate for that amount to the collector who shall proceed to
recover the same as an arrear of land revenue
31. Principles of Natural justice
1. Principles of Natural justice are principles formulated by good standards
2. They are judge made laws
3. They are not converted into legislation yet they have their own values
Three important principles of Natural Justice are
1. No one shall be a judge in this own cause
2. No one shall be punished unheard
3. A party is entitled to know the reasons for the decisions
32.Closure / closure of industry
Closure means permanent closing down of a place of employment.
1. Prior permission
Employer who wants to close down an undertaking has to first apply to
AppropriateGovernment and seek prior permission.
He should clearly mention the reasons in application form.
He should give a copy of such application to registered Trade union
2. Duty of Government
On receipt of the application, the Government should make an inquiry
It shall give reasonable opportunity to employer, employee and others
It shall adopt the principles of Natural justice
If satisfied, it passes an order of close down
A copy of the order shall be sent to employer and workmen
3. Binding force
Such order shall be final and binding on all parties concerned
4. Review of order
Appropriate Government either on its own motion or on application review it’s order
passed
5. Illegal closure
If the employer closes the establishment without permission, it is illegal closure
6. Compensation
On Closure every worker is entitled to receive compensation
33.Labour courts
Constitution
Appropriate Government may constitute Labour courts
Labour courts shall consist of one person
Such person shall be appointed by Appropriate Government
Qualifications
He has been a judge of High Court
He has been a District judge
Held any judicial office in India for atleast 7 years
Has been Presiding officer of a Labour Court for atleast 5 years
Disqualifications
Not an independent person
Has attained 65 years of age
Powers of a Labour court
1. Inspection of Premises
Presiding officer after giving reasonable notice may enter the premises for
inquiry
2. Every Labour court shall have the powers of a civil court
3. All the members of the Labour court are public servants
34.Conciliation officer
Appointment
Appropriate Government appoints conciliation officers to act as mediators in settlement of
Industrial disputes
Duties of Conciliation officer
1) Duties are not judicial and only administrative
2) He coordinates the matter between the two rival parties
3) He fixes date, place and sends notice to both the parties
4) If parties participate in Conciliation and come to a settlement then it is called
settlement of disputes
Powers of Conciliation officers
Powers of a civil court
Public Servant
Principles of Natural justice
35.Court of inquiry
Object of establishing court of inquiry is to make an investigation into facts
Appropriate Government may constitute a Court of Inquiry
It is not a permanent body
It is a fact finding body
When there are proceedings pending with Conciliation officer or Labour court, the rights
of parties are affected. They are not allowed to do strikes etc.
When a proceeding is pending with Court of Inquiry, the rights of the parties are not
affected. Workers can still do strike and employer can declare lockout
36. Domestic Enquiry
As the name itself suggests it is an enquiry conducted internally by the management.
The management constitutes Disciplinary Board.
This Board appoints one or more enquiry officers
Enquiry officers must follow principles of Natural Justice
It is required in every establishment to enquire into the misconducts of its workmen. The
reasons are:
1. For every misconduct the management cannot go to Labour courts as it
involves time and cost.
2. Employer cannot make allegations against his own workers
3. He cannotterminate his own workers whenever he wants
37. Enquiry report
An enquiry officer is appointed by the Disciplinary body of an industry to conduct an
enquiry into the misconduct of an employee
After completion of the enquiry, the Enquiry officer submits an Enquiry Report to the
Disciplinary body.
Such enquiry report is a summary of findings on the charges arrived by the Enquiry officer
On the basis of Enquiry Report, Disciplinary Board gives it's decision
Contents of the Enquiry Report
Name, address and designation of the accused employee
Names, addresses and designations of the witnesses
Enquiry officer must record all the evidence in writing
Report must be in good faith
38.Charge sheet
Statement of charges against an employee to give him a notice of allegations against him
It is a statement of allegations against an employee
Contents
1. Name and address of employee
2. Details of every allegation
3. Name of complainant and witnesses
4. Should not be vague
5. Evidence should be disclosed
6. It must be fair
7. Should not contain hypothetical statements
39.Disciplinary proceedings in industries
Meaning:
A set of rules or methods for regulating practices in an industry
For successful running of an industry there are three important factors
a) Money
b) Management and
c) Employees
Every employee should work with a feeling that the industry is his own
All employees and management would work in a disciplinary manner.
Disciplinary Proceedings
The management cannot take disciplinary action against an employee the way it wants.
It would follow law and principles of Natural justice
The procedures which should be adopted by Management are called “ Disciplinary
Proceedings”
Disciplinary proceeding is a written step by step process which a management should
follow in every case where an employee has to be warned or dismissed
Failure to follow a fair and transparent disciplinary procedure may result in legal penalties
40. Adjudication / Compulsory Adjudication
Compulsory Adjudication was first introduced in India during second world war to maintain
industrial peace
Steps of settlement of disputes
a) Conciliation:The first step under the act is Conciliation.
b) Arbitration:If Conciliation fails then the parties go for arbitration.
c) Adjudication: If Arbitration fails, the Appropriate Government may refer the
dispute to Adjudication
There are three kindsof Adjudicatory machinery:
a) Labour Court
b) Industrial Tribunal and
c) National Tribunal or National Industrial Tribunal
41.Minimum wages
Not defined in Minimum wages act
Minimum wage is the lowest wage below which efficiency of a worker is affected
It includes not only basic necessities but also some comfort
It must provide for some measures of education, medical benefits etc
Thus minimum wage is the minimum payment which an employer has to give to it's
employee
Appropriate Government fixes it and employer is bound to pay it irrespective of his profit