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LABOUR LAW

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V.NAGARAJ
PROFESSOR of LAW
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NATIONAL LAW SCHOOL OF INDIA UNIVERSITY
NAGARBHAVI
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BANGALORE-560072
vnagaraj@nls.ac.in
Duties of the conciliation officer
• To mediate and promote the settlement of I.D
• Involvement of Conciliation is optional in non-public utility services-as

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a practice conciliation officer involve when a dispute comes before
him
• In public utility services conciliation officer shall hold conciliation
proceedings as soon as a strike notice is given under Section 22 of

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the I.D.Act
• To bring about a fair and amicable settlement
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• Conciliation if successful send a report to the Govt.
• Conciliation if not successful send a failure report to the Govt.
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• Failure report must contain the steps takes and the reasons in his
opinion why conciliation failed
• Duty of confidentiality-if violated punishable with imprisonment which
may extend to 6months or fine of Rs1000=00 or both Sec21
Binding nature of conciliation settlement
• Binding on parties to the dispute
• All other parties summoned to appear in the proceedings
as parties to the dispute

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• Where a party referred to above is an employer, his heirs
successors or assigns in respect of the establishment to
which the dispute relates

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• Where a party referred to above relates to workmen, all
persons who were employed in the establishment or part
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of the establishment as the case may be to which the
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dispute relates on the date of the dispute and all persons
who subsequently become employed in that
establishment
• In reality how Bi-lateral settlements are converted in to
conciliation settlements! In the light of Tata chemicals
Appropriate Government

• Sec 2(a) of the I.D Act defines

• Industries carried on by or under the authority of the

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Central Govt –central govt is the appropriate govt
• Industries listed in the definition central Govt is the
appropriate Govt

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• For other industries State Govt is the appropriate Govt
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• Meaning of carried on by the C.G
Meaning of carried under the authority of the C.G
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Appropriate Govt case law
• Heavy Engineering Mazdoor Union-v-State of Bihar
1969(1)SCC 765

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• HAL-V-Workmen AIR 1975 SC 1737
• Air India Statutory Corporation-v-United Labour
Union(1997)1LLJ 111 SC

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• SAIL-V-National Union Water Front Workers
AIR 2001SC 3527
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• Workmen of Sri Rangavilas Motors (P) ltd-v-Rangavilas
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Motors (p) ltd(1967)2LLJ 12 SC
Government power of Reference
• It is discretionary
• Subject to judicial Review
• Exercised at any time

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• Not when arbitration has started or notification is issued
• Nirmal singh-v- state of punjab case
• State amendments with reference to 2A disputes

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• Recommendations of Rajasthan Road transport
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corporation-v-Krishna kant
• Punishment short of termination requires reference
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Compulsory Adjudication
• Industrial tribunal(1949)1LLj245 FC Western India
Automobiles-v-

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• Industrial adjudication is not according to the strict law of
master and servant

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• Industrial tribunals have powers to do justice by applying
principles of equity
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• They create rights and duties in favor of the parties
They can create contract for the parties which can be
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enforced by coercion
• Mismatch between the expectations and the qualifications
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Procedure and practice before the LC/IT
• After the receipt of the order of reference the adjudicator
issues a notice to the parties to the dispute and the

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fallowing order of proceedings are usually fallowed
1.The claimant files the claim statement
2.The respondent files the reply to the claim

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3.The claimant may file rejoinder to the reply
4.On the pleadings the adjudicator frames issues
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5.Theremay be preliminary issues also before the main
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issues
6. The claimant opens the case through examination in
chief
7.The respondent can cross examine the witnesses
introduced by the claimant

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8. The respondent introduces evidence through
examination in chief
9. The claimant can cross examine the respondent

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witnesses .L
10. The case is posted for arguments-claimant –
respondent
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11. If parties want they can file written arguments
12. The tribunal analyses the materials before it and
passes the award
 Section 11-A of the ID ACT

• In case of discharge or dismissal of a workman the LC,IT can

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set aside the order of discharge and reinstate the workman
on such terms and conditions, if any, as it thinks fit or give
such other relief to workman including the award of any
lesser punishment in lieu of discharge or dismissal as the

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circumstances of the case may require
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Section 11-A of the I.D Act
• Proviso- In case of any proceedings under this section,
the L.C;I.T shall rely only on the materials on record and

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shall not take any fresh evidence in relation to the matter
• Workmen of Firestone Rubber Co. of India Ltd-v-
Management (1973)1LLJ278SC held-Materials on record
means-

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• Evidence taken at the inquiry and the proceedings of the
enquiry
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• The above and any additional evidence led before the
tribunal
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• Evidence placed before the tribunal for the first time in
support of action taken by an employer as well as the
evidence adduced by the workman contra
Voluntary Arbitration Sec10A
• Agreement between the workmen and the Management
• Send copy to the Govt and conciliation officer

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• Publication of the agreement
• KarnalLeather Karmachari Sanghatan –v-Liberty foot
wear (1989)SCC448-Publication of the arbitration

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agreement is a must before arbitration
• Notification by the Govt if majority workmen are parties to
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the dispute
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• Binding nature of the award-18(2) or 18(3)
• Rohtas Industries Ltd-v-Rothas industries staff union –
Arbitration subject to judicial review
Publication of awards
• Publication is must
• Time duration of 30 days is directory

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• Award comes in to operation 30 days after publication
• Remington Rand of India Ltd-v-

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Workmen(1962)1LLJ287SC
• Grindlays bank-v-CGIT(1980)SuppSCC420- Power of the
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Tribunal to recall the award
N
• I.D.Act amendment act, 2010,has introduced the fallowing
sections regarding enforcement of awards:

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• Section 11(9) every award made, order issued or
settlement arrived at by or before LC/IT/NT shall be
executed in accordance with the execution procedure laid

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down in the CPC by the Civil court.
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• Section 11 (10) The LC/IT/NT as the case may be shall
transmit any award, order or settlement to a civil court
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having jurisdiction and such Civil Court shall execute the
same as if it were a decree passed by it.
Works committee
• Applicable to industrial establishments-establishments in
which industry is carried on-employing 100 or more

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workmen
• To be constituted when there is an order by the
appropriate govt.

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• Consist representatives of employers and workmen-
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representatives of workmen on the committee shall not be
less than that of the employer-hence there may be reps of
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the workmen.
• The total number of members should not exceed 20
• It shall be the duty of the works committee to promote
measures for securing and preserving amity and good

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relations between the employer and the workmen
• To achieve the above the committee can comment upon
matters of their common interest or concern and

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Endeavour to compose any material difference of opinion
in respect of such matters
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• Northbrook jute Co;-v- their workmen(1960)1 LLJ 580
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• The works committees were not intended to supplant or
supersede the Trade unions for the purpose of collective

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bargaining.
• They are not authorised to consider real or substantial
changes in the conditions of service.

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• Their task is to only smooth away frictions that might arise
between the workmen and the management in day to day
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work
• It is more a body to prevent minor misunderstandings
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from snowballing in to a dispute
• The duration of the works committee will be 2 years
• The employers representatives will be nominated and the

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workers reps will be elected.
• Minimum age for contesting elections is 19 years, as
there is a requirement of one years experience before

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contesting elections
• Minimum age for voting is 18 years
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• Workmen representation must be wide spread as far as
possible
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• Registered TU as well as workmen who are not members
will be given opportunity to be on the committee
Grievance redressal machinery for
individual disputes
• Sec 9 C of the ID act provides for this and brought in to
effect from 2010

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• Applicable to industrial establishments with 20 or more
workmen
• To settle industrial disputes relating to individual workman

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• There may be one or more grievance redressal machinery
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• It shall consist of equal number of members from
employer and the workmen
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• The chairperson of the committee shall be selected from
among the employer members and workmen alternatively
on rotation basis every year
• The total number of members of the grievance Redressal
committee shall not exceed more than six

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• There must be representation of women on the committee
• Notwithstanding anything contained in this section the
setting up of Grievance Redressal committee shall not

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affect the right of the workman to raise industrial dispute
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on the same matter under the provisions of this Act.
• The said committee is required to dispose off the
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application filed with in 30 days as far as possible.
• From the decision of this committee if the workman is
aggrieved may prefer an appeal to the employer and the
employer shall dispose off the application with in 30 days
• Section 9-A: Notice of change-no employer who proposes
to affect any change in the conditions of service

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applicable to any workman in respect of any matter
specified in fourth Schedule shall affect such change-
• (a) with out giving to the workmen likely to be affected by

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such a change notice proposing to change to be affected
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• (b) with in 21 days of giving such notice.
• The requirement of notice is not applicable if the cane is
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pursuant to a settlement or an award
Fourth Schedule
• Wages including the period and mode of settlement
• Contribution to EPF or pension fund

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• Compensatory and other allowances
• Hours of work and rest intervals

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• Leave with wages and holidays
• Variations in shift otherwise than in accordance with the
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standing orders
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• Classification by grades
• Withdrawal of any customary concessions
• Introduction of new rules of discipline or alteration of
existing rules
• Rationalization, standardization or improvement of plant
or technique which is likely to lead to retrenchment of

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workmen
• Any increase or reduction ( other than casual) in the
number of persons employed which is not occasioned by

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circumstances over which the employer has no control
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 Layoff-Regulations
• Lay off means the failure or the inability of an employer an
account of shortage of coal, power, or raw materials or the
accumulation of stocks or the breakdown of machinery or

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natural calamity other connected reasons to give employment
to a workman whose name is borne on the muster rolls of his
industrial establishment and who has not been retrenched

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• Lay off is applicable only to industrial establishments
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• Industrial establishments employing less than 50 workmen not
covered under the regulation
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• Workmen of Firestone Rubber Co;Ltd-v-
Management(1976)1LLJ493SC
• 50 and more workmen but less than 100 workmen is regulated
for the purpose of payment of compensation No prior
permission required
Layoff continued
• Industrial establishments employing 100 and more are
covered by the Chapter VB.

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• Prior permission of the Government
• Shortage of power or natural calamity, there can be layoff
but approval is required

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• In case of mines lay off with out permission in case of fire,
floods, excess inflammable gas or explosion
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• Approval of the same is required and application has to
be made with in 30 days
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• If permission or approval is not give within 60 days, it is

deemed to have been given
• Constitutionality papanasam labour union caseAIR
1995SC2200