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E1-E2 Core

Rev. Date: 15-03-2011

CHAPTER- 26
LABOUR LAWS

For Internal Circulation Only

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Objects It aims at protecting the rights of the consumer such as 1) 2) 3) 4) 5) 6) The right to be protected against marketing of goods which are hazardous to life and property. These quasi-judicial bodies will observe the principles of natural justice and are empowered to give relief of a specific nature and to award appropriate compensation to consumers. purity. National consumer disputes redressal commission is established by central government by notification. The right to seek the redressal against unfair trade practice or unscrupulous exploitation of consumers and Right to consumer education. The above objects are sought to be promoted and protected by the consumer‟s protection councils at central and state levels. standard. Date: 15-03-2011 Consumer Protection Act 1986 The consumer protection Act. and price of goods to protect the consumer against unfair trade practices The right to be assured wherever possible. potency. a quasi-judicial machinery is set up at district. 1986 seeks to provide for the protection of the interests of consumers and for that purpose to seek provision for establishment of Consumer Councils and other authorities to settle the consumer disputes and matters connected therewith. state and central levels.E1-E2 Core Rev. For Internal Circulation Only 2 . access to variety of goods at competitive prices. They are also empowered to impose penalties for non-compliance of orders given by them Consumer Disputes Redressal Agencies: A consumer disputes redressal forum „District Forum‟ is established by state government in each district of the state. In addition to the above the state government also establishes „state commission‟ for consumer disputes redressal. The right to be informed about the quantity. If required more than one district forum can also be established in the district. The right to be heard and to be assured that consumers interests will receive due consideration at appropriate forums. To provide speedy and simple redressal to consumer disputes.

The state commission is empowered to entertain: (i) Complaints where value of goods or service and compensation exceed 20 lakhs but not more than 100 lakhs (ii) Appeal against district forum For Internal Circulation Only 3 . 1) To pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party. Finding of the District Forum: After the proceedings are conducted. The district forum shall have the same powers as are vested in civil court. it shall order the opposite party directing him to do one or more of the following things namely. 2) To remove the defects or deficiencies in the services in question 3) To provide for adequate costs to parties 4) To return to the complainant the charges paid by him Appeal: Any person aggrieved by an order made by the district forum may prefer an appeal against such order to the state commission within 30 days from the date of the order. Date: 15-03-2011 Manner in which complaint is made A complaint in relation to any goods sold or any service provided or agreed to be provided may be filed in the district forum by 1) Any consumer to whom such service provided. if the district forum is satisfied that the complaint about the services are proved. Every proceeding held by district forum shall be covered by Indian Penal Code and district forum shall be deemed to be civil court.E1-E2 Core Rev. securing production of any record. defendants. 2) Any recognized consumer association whose member has been provided with such service. State commission is constituted by respective state government. The state commission may entertain after this period also at its discretion State Commission: 1. In summoning and enforcing attendance of witness. 3) One or more consumers where there are numerous consumers having the same interest. material object as evidence.

closure. statutory entitlement etc. strikes. Sec. wage revision and demands for the benefit of workmen. Upon the receipt of such a report the appropriate government applies its mind and refers the dispute for adjudication. dismissal. retrenchment.E1-E2 Core Rev. lay-off. For this purpose the Conciliation Officer appointed by the Appropriate Government after admitting into conciliation and failing to make the parties to come to an agreement sends to the appropriate Government a report called failure report. Dispute under this Section includes.2 Industrial dispute means any dispute or difference between Employers and Employees and workmen or between workmen connected with the employment or with the conditions of Labour of any person. Conditions to be complied with In order to make retrenchment valid the following conditions must be fulfilled before the actual effective date of retrenchment. 1947 Object The object of Industrial Disputes Act is to settle the disputes between the Employer and the Employees. Industrial Dispute. lock-out. where the Union takes up the dispute. It entertains the complaint where the value of goods/ service or amount of compensation exceeds 100 lakhs. Brief on Industrial Disputes Act. Any Industrial dispute to be adjudicated by a Labour Court/Tribunal shall be only on a reference by the appropriate Government. For Internal Circulation Only 4 . Retrenchment Retrenchment means the termination of the Services of a workman by the Employer for any reason what-so-ever. Date: 15-03-2011 National Commission National commission is constituted by the central government conferring with sufficient power and independence. termination of service.

23. 9-A The employer cannot effect any change in the service conditions of any workmen. If the employer or workman / Union contravene this provision the lockout or the strike as the strike may be illegal for which the party contravening can be prosecuted (26). 26 and 10(3) Where Industries are notified as public utility services by the Appropriate Government.e. A strike may be by some workers only or in one department or some departments totally.22. offered to the concerned workman either before the actual date of retrenchment or simultaneously. Strike Strike means the stoppage of work by a body of persons employed in the Industry acting in combination or a united refusal under a common understanding of any number of persons to continue to work or accept employment. Industrial Tribunal or National Tribunal for adjudication the said Authority gives opportunity to the Employer and the workman to submit their statements on the issues involved. For Internal Circulation Only 5 . Sec.11 In matters coming up before Labour Court. examine witnesses. In such an event the employer has the option of running the business or to declare lock-out as a result of the strike.E1-E2 Core 1) 2) Rev. if he apprehends danger to the persons or loss of property or likely to endanger the peace and tranquility. 24. No such change can be effected within 21 days. Change in Service Conditions Procedure. no strike or lock-out can be resorted to unless a notice of 6 weeks in the prescribed form is given making a copy of the same to the Conciliation Officer having Jurisdiction. In order to effect such a change the employer must give 21 days notice in the prescribed form to the workman to the effected/Union. Plus Compensation at the rate of 15 days average pay for each year of completed service. Date: 15-03-2011 The retrenchment workman shall be given one month notice or one month pay instead of such notice. Such strike or lockout shall not take place within 14 days of giving such notice or before the date specified in such notice. Sec. In the case of Strike also it must be proved that it is both lawful or justified. This must be tendered i. Adjudication Labour Courts Procedure. Prohibition of Strikes and Lockouts (Sec.

Settlements entered through conciliation are known as Tripartite settlements or 12(3) settlements. Summon documents as applicable to Civil Courts. Date: 15-03-2011 receive documents relied upon and after hearing both the parties pass its award.E1-E2 Core Rev. It does not matter if other Unions do not join such 12(3) settlements. A settlement has to be terminated by giving two months notice but should not be terminated before the expiry of the period. Sec. 17-A An Award given by the Court has to be published in the Gazette which becomes final after 30 days of such publication and it becomes enforceable. Such settlements are not binding on other Unions or Workmen who are not parties to such settlements and on workmen who join the establishment subsequent to the settlement. examine the witnesses on Oath. other than continuing obligations which continue even after one year. Sec. These Courts have power to summon witnesses. 29 There is no provision either under the Industrial Disputes Act 1947 or the Trade Union Act 1926 to grant recognition to any Registered Trade Union. These are also called 18(1) settlement. An Award will be in force for one year. This is the effect of Sec 18(3). 12(3).2 (P). Such settlements are binding not only on the parties to the same but also others who are not parties to the same and those employed subsequent to the said settlement. Unions Recognition. 18(1) As earlier stated a settlement entered into between the parties directly called a Bilateral settlement is binding only on the Union and its members or the workmen entering into such settlements. Settlements and Binding Nature Sec. Recognition means identifying the collective bargaining Agent as a Representative Union. Such award becomes effective one month after its publication in the Official gazette making the award an enforceable one. Publication and Finality of Award.17. Recognition is only for purposes of negotiations with the Employer and to enter into For Internal Circulation Only 6 . Termination of settlement continues to bind A settlement unless replaced by another settlement even though terminated will continues to be binding even after the expiry of the period of the settlement. Where there is a recognized Union the settlement has to be entered into with such recognized Union through other Unions can raise their Charter of demands which also have to be considered.

restrain from. Unfair Labour Practice. if a trade union is organized. Management will grant recognition to the Majority Union which will be in force for a period of 2 years from the date and continues to be in force till elections for recognition are held. On such agreements to the Registrar of Trade Unions of the concerned establishment holds an election amongst the workmen for the purpose of determining the majority. In some states there are Industrial Relations Acts under which granting of Recognition is compulsory. Where management agrees to grant Recognition to a Majority Union. if they join a trade union. workmen in the exercise of their right to organize. to any trade union. with a view to undermining the effects of the trade union at organization. that is to say a) An employer taking an active interest in organizing a trade union of his workmen. In the absence of any such provision no Union can insist on the grant of recognition and cannot claim as of a right to be granted recognition. 2(U) The following are unfair labour practices: I. 2) To dominate. form. b) Threatening a lockout or closure. UP to the knowledge of the Authors).E1-E2 Core Rev. On such recommendation. 2(T). Gujarat. financial or otherwise. and For Internal Circulation Only 7 . all the Unions in the establishment and Management have to enter into agreements agreeing to abide by the code of discipline. 2(ra). Sec. On the part of Employers and Trade Unions of Employers: 1) To interfere with. Management is not bound to grant any such recognition. The Union which secures majority at such election will be recommended by the Commissioner of Labour to the Management to grant Recognition. Date: 15-03-2011 settlements and does not prevent other Unions from serving Charter of demands on the Management. (Maharashtra. interfere with or contribute support. or coerce. 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 it to say: a) Threatening workmen with discharge or dismissal. c) Granting wage increase to workmen at crucial periods of trade union organization.

where such a trade union is not a recognized trade union. To abolish the work of a regular nature being done by workmen. c) Changing seniority rating of workmen because of trade union activity. d) Refusing to promote workmen to higher posts on account of their trade union activities. as a pre-condition to allowing them to resume work. that is to say: a) Discharging or punishing a workman because he urged other workmen to join or organize a trade union. To show favorism or partiality to one set of workers regardless of merit. f) Discharging office bearers or active members of the trade union on account of their trade union activities. f) In utter disregard of the principles of natural justice in the conduct of domestic enquiry or with undue haste. or to undermine the strength of their trade union. b) Discharging or dismissing a workman for taking part in any strike (not being a strike which is deemed to be an illegal strike under this Act). without having any regard to the nature of the particular misconduct or the past record or service of the workman.E1-E2 Core b) Rev. Date: 15-03-2011 An employer showing partiality or granting favour to one of several trade unions attempting to organize his workmen or to its members. 4) To encourage or discourage membership in any trade union by discriminating against any workman. b) Not in good faith. To transfer a workman mala fide from place to place to another. e) Giving unmerited promotions to certain workmen with a view to creating discord amongst other workmen. d) For patently false reasons. e) On untrue or trumped up allegation of absence without leave. 5) To discharge or dismiss workmen a) By way of victimization. who are on a legal strike to sign a good conduct bond. g) For misconduct of a minor or technical character. 3) To establish employer-sponsored trade unions of workmen. and to give such work to contractors as a measure of breaking a strike. under the guise of following management policy: To insist upon individual workmen. thereby leading to a disproportionate punishment. c) By falsely implicating a workman in a criminal case on false evidence or on concerned evidence. 6) 7) 8) 9) For Internal Circulation Only 8 . but in the colourable exercise of the employer‟s rights.

E1-E2 Core Rev. with the object of depriving them of the status and privileges of permanent workmen. Failure to implement award. II. For a recognized union to refuse to bargain collectively in good faith with the employer. 1) To advice or actively support or instigate any strike deemed to be illegal under this Act. To indulge in acts of force or violence. For Internal Circulation Only 9 . To refuse to bargain collectively. On the part of workmen and trade unions of workmen.25-T) and the same is made punishable with imprisonment upto six months or with fine or with both. casuals or temporaries and to continue them as such for years. To incite or indulge in willful damage to employer‟s property connected with the industry. 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. To coerce workmen in the exercise of their right to self-organization or to join a trade union or refrain from joining any trade union. Date: 15-03-2011 16) To employ workmen as „badlis‟. workers and Trade Unions are prohibited to commit any unfair Labour practice (Sec. To stage. in good faith with the recognized trade unions. Proposing or continuing a lockout deemed to be illegal under this Act. squatting on the work premises after working hours of “gherao” of any of the members of the managerial or other staff. 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. To recruit workmen during a strike which is not an illegal strike. To indulge in coercive activities against certification of a bargaining representative. 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. 10) 11) 12) 13) 14) 15) 2) 3) 4) 5) 6) 7) 8) Employers. encourage or instigate such forms of coercive actions as willful “go slow”. settlement or agreement. To stage demonstrations at the residence of the employers or the managerial staff members. 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.

Principal Employer In the case of any office or department of Government or local authority employing contract labour through a contractor the Head of that office or department or any other officer notified by the said authorities is known as the principal employer. Contractor Contractor under an establishment is one who undertakes to produce a given result to the establishment through his labour but does not include one who merely supplies goods or articles of manufacture to such establishment. Government has the power to extend the application of the Act to any other establishment. Workman A workman is one who is employed by the contractor to do any skilled.E1-E2 Core Rev. Establishment Establishment means any office or department of government or local authority or any place where any industry. trade. Appropriate Government The Appropriate Government may be the Central Government or the State Government as per the definition of the Industrial Dispute Act. technical or clerical work for hire or reward in or inconnection with the work of the establishment. This Act also applies to every contractor who likewise employs in the establishment. 1971. Applicability This Act applies to every establishment in which 20 or more workers are employed or were employed on any day of the preceding 12 months as Contract Labour. manufacture or any occupation is carried on. Date: 15-03-2011 Brief On Contract Labour Act Object This Act came into force with effect from 10th February. business. supervisory. unskilled. manual. For Internal Circulation Only 10 . semi skilled. The object of the Act is to regulate the employment of Contract Labour employed in certain establishments and to provide for its abolition in certain circumstances.

Amenities The contractor has to provide a canteen for use by the contract labour where the number of the contract labour employed by him is 150 or more. Safety. rest rooms. extra wages of overtime. working hours. O. Welfare. bar an employment of child labour. Prohibition of Employment of Contract Labour The Principal Employer shall not employ any Contract Labour without registering his establishment under the Act or where such registration is revoked. whether such work is done ordinarily thorough regular workmen in that establishment or in a similar establishment and whether it is sufficient to employ considerable number of whole-time workmen. Date: 15-03-2011 Registration as Principal Employer Every Principal Employer to which the Act applies has to register his Establishment under the Act if Contract labour is intended to be employed therein. Such registration shall be made with the appropriate government who appoints the registration officer. washing facilities and first aid facilities health and welfare measures for contract labour specified in the rules.E1-E2 Core Rev. the food stuffs to be served and the charges. Health. intervals of rest spread over.. The conditions of service regarding the issuance of employment card.T. trade etc.e. Rest Day. Canteen. leave with For Internal Circulation Only 11 . where the work is of perennial nature i. trade.. Wages. weekly rest. License for Contractor Every contractor who employs labour to work in the establishment of the Principal Employer shall obtain a license from the appropriate officer of the appropriate government. enough number of latrines and urinals. Working hours etc. manufacture or occupation carried on in the establishment. etc. employment of females. business. national and festival holidays. accommodation. carried on in the establishment. The appropriate government has power to prohibit the employment of contract labour in any establishment where the process / operation or other work is incidental to or necessary for industry. whether the work is of sufficient duration having regard to nature of industry. whole-some drinking water. Conditions of Service. The rules framed in this regard may provide the standards of construction.

Registers maintained under the payment of Wages Act or Minimum Wages Act showing the above things could be allowed to be treated as the Registers under this Act. In the licence issued to the contractor the conditions are enumerated. Where the workmen employed by the Contractor perform the same of similar kind of work performed by the workmen directly employed by the Principal Employer. ESI. rates. holidays. Applicability of EPF. I. the Industrial Disputes Act. These deposits are refundable at the end of licence period on proof that no wages fell in arrears. maintenance of registers. Rates of Wages Etc. deductions register and overtime register.D. the Minimum Wages Act. Act. The Provisions of the Factories Act and EPF Act and the Employee State Insurance Act. the Workmens Compensation Act also apply to the Contract labour. The contractor has to maintain certain registers and such registers are maintained under the pay muster roll. wage register. Contractor to specify number of workmen Every contractor obtaining licence shall specify the exact number of workmen intended to be employed in the establishment of the Principal Employer in the Application and also make Security Deposit at the rates prescribed by the Appropriate Government. procedure for termination of services. Acts. Registers The contractor as well as the Principal employer has to maintain certain Registers. hours of work and other conditions of service of the workmen's of the contractor shall be the same as that of the workers employed by the Principal employer. etc. Date: 15-03-2011 wages. right to lay-off the workers are prescribed. MW Act. Wages prescribed shall be paid by the contractor in the For Internal Circulation Only 12 . the wages to be paid. Liability of Principal Employer If the contractor fails to provide health and welfare amenities the same shall be provided by the Principal Employer and the cost of same can be deducted either from the bills of the contractor.E1-E2 Core Rev. the wages.

i) a widow. Brief on Workmen’s Compensation Act Workmen Compensation Act provides for compensation when any workman while on duty meets with any accident or death thereby deprives the workman or family of his earnings. daughter. Rev. Employer’s Liability to Pay Compensation This Act is administered a Commissioner by a Commissioner appointed under Section 20 of the Act. In DoT / BSNL when workmen like Mazdoors or Phone Mechanics suffer any injury including electrocution they are entitled for compensation under this Act. (legitimate or adopted). Son. a Son or a daughter who has attained 18 years of age and. But such compensation need not be paid where the injury does not cause any disablement for more than three days. For Internal Circulation Only 13 . The employer is liable to pay compensation to a workman for any personal injury while in the course of employment. The injuries are specified in the schedules of the Act. an Unmarried daughter. This Act provides cheaper and quicker mechanism for providing compensation to workman in such cases. minor (born legitimately or adopted). Dependents The following persons are dependents of the workman who can claim the compensation incase of death of a workman. or a widowed mother and if wholly dependent on the earnings of a workman at the time of his death. where the injury other than death or permanent disablement is caused on account of the workman being drunk or willful dis-obedience of any Safety order or willful removal of any Safety guard or device which he knows has been provided to prevent accidents. Date: 15-03-2011 of the Principal Employer and Non-Payment of Wages Liability of Principal Employer If the contractor fails to pay the wages to the contract labour employed by him or makes short payment or fails to prove the payment of wages the Principal Employer shall be liable to pay such wages on behalf of the contractor and is entitled to deduct the same from the bills of the contractor or otherwise which word includes filing a Civil suit also for the recovery of such payments on behalf of the contractor.E1-E2 Core presence of Authorized Representatives acknowledgements obtained in his presence.

But advances can be given to the extent of three months For Internal Circulation Only 14 . can be ordered to be paid. In cases falling under (b) above. a parent other than a widowed mother. Death Permanent Disablement Permanent partial disablement Temporary disablement Distribution of compensation In case of death of a workman or who is under any legal disability the compensation shall be deposited with the Commissioner. Direct the payment of compensation with interest b. a minor illegitimate Son. the Commissioner shall: a. a minor child or a pre-deceased son or daughter where no parent of the Child is living or paternal Grandparents. Method of calculation of compensation The method of calculation of compensation and the amount of compensation for various injuries resulting in I. if he considers that there is no justification for the delay direct payment of the compensation amount. While the interest ordered to be paid will be paid to the workman. II.E1-E2 Core ii) iii) Rev. no penalty can be levied without giving a show cause notice. a widower. Date: 15-03-2011 if wholly or in part dependent on the earnings.2(d): Payment of Compensation i) ii) The compensation has to be paid as laid in Sec. IV. interest and a further sum not ex exceeding 50% of that amount. the penalty shall be credited to the State Government. a minor brother or an unmarried sister or a widowed daughter-in-law. if no parent of the workman is alive (Sec. 4 as soon as if falls due. If the Employer does not accept the liability the amount payable according to the Employer shall be deposited with the Commissioner or pay to the workman without prejudice to his contention. III. of a workman at the time of his death. iii) If the amount of compensation due is not paid within one month from the due date. The employer cannot make payment directly to the dependants. an unmarried daughter or a legitimate or adopted daughter if married and a minor or if widowed and a minor.

Reports of Fatal Accidents and Serious Injuries If any law requires that a notice of death or serious bodily injury took place in an accident to the workman while on duty.E1-E2 Core Rev. what is the definition of Establishment Who is the Principal Employer as per the Contract Labour Act ? Who is the Contractor as per the Contract Labour Act ? Who is the Worker as per the Contract Labour Act ? What is the Appropriate Government as per the Contract Labour Act ? For Internal Circulation Only 15 . Where notice of such accident is given as per the mandate of any Law to the Authority specified therein no notice need be sent to the Commissioner. Date: 15-03-2011 wages. Any other sum which is not less than ten rupees shall be deposited with the Commissioner. 3). 7). Such advances on proof shall be deducted by the Commissioner and paid to the Employer. Descriptive questions in Labour laws Contract labour act 1). 6). What is the object of Contract Labour Act ? What is the applicability of Contract Labour Act ? As per the Contract Labour Act. In case the amount is payable to a workman or to a person under legal disability the same may be invested for the benefit of such persons. 2). 5). Any receipt given by the Commissioner discharges the Employer in respect of the deposit made. 4). The Commissioner after holding an enquiry about the dependents orders payment of the compensation amount deposited by the apportionment. the Employer shall within Seven days of the accident send a report to the Commissioner stating the circumstances in which the accident took place. In case of half monthly to a person under legal disability Commissioner may order payment during the disability to the dependent or any other person as determined by the Commissioner.

12). 11). What is the adjudication procedure in Labour Courts? Q-7. 13). 9). What is the procedure to be adopted by the employer in change in Service conditions? Q-6. Date: 15-03-2011 What are the Obligations of the Principal Employer as per the Contract Labour Act ? What are the Obligations of the contractor as per the Contract Labour Act ? What are the Obligations of the contractor regarding Health. What are the Unfair Labour Practices on part of Workmen and trade Unions of workmen? For Internal Circulation Only 16 . Rev. What are the Unfair Labour Practices on part of Employers and Trade Unions of employers? Q-10. welfare and safety of Contract labour ? What are the provisions regarding prohibition of engagement of Contract Labour ? What are the other Acts applicable to Contract Labour ? What are the Registers to be maintained by the Contractor as per the Contract Labour Act ? What are the liabilities of the Principal Employer regarding payment of wages to Contract Labour t ? INDUTRIAL DISPUTES ACT-1947 Q-1. 10). What is the object of the Act? Q-2. What is meaning of the Industrial Dispute? Q-3. Briefly explain the Settlements and Binding nature? Q-8. What is Retrenchment? What are the conditions to be complied with? Q-4. 14). What is the meaning of Strike? What are the prohibitions of Strikes and Lockouts? Q-5. Briefly explain the procedure of Union recognition explained in ID Act-1947? Q-9.E1-E2 Core 8).