HUMA N R ESOURC E MA NAGEME N T:

INDUSTRIAL RELATIONS
DEBRIEF OF ‘MODERN TIMES’

1. List ten things that you would like to change in that

workplace( From - To)
2. Make a vision statement of a decent workplace.
3. Describe ten parameters of decent work place. (
Example : ‘A decent workplace should have the
following qualities:
1. Empathetic supervision…’
 WHAT CONSTITUTES DECENT WORK:
FOUR FOCUS AREAS

1. Gainful employment

2. Social Protection

3. Social Dialogue

4. Rights at work

Millennium Development Goal (MDG) of International Labour

Organization adopted in 1999.
 10 DIMENSIONS OF DECENT WORK
Dimensions Regulations

1. Productive work and Minimum Wage, Timely payment of wage, Over Time
adequate earnings compensation, Night Allowance, Holiday work allowance.
2. Decent working Hours Annual Leave with wages, Limits on hours of work, Compensatory
Holidays.
3. Employment Security Appointment letter, Fixed term contract workers for permanent
tasks, Length of probation period, Notice requirements, Severance
Pay.
4. Combining work and life Family responsibilities( Paternity leave), Maternity protection.

5. Safe working Health and Safety at work, Sickness and Employment Injury.
environment
6. Social security Unemployment Benefits, Old Age Pensions, Invalidity Benefits,
Survivors' Benefits,.
7. Equal treatment at work Equal Pay for Equal work, Sexual Harassment

8. Children at work Minimum Age for work.

9. Forced labour Forced labour, Workers right to terminate employment, Limit to

maximum overtime.
10. Social dialogue/Trade Right to form and join unions, Right to bargain collectively, Right to
Unions strike.
WHAT IS SOCIAL DIALOGUE?

It covers all types of negotiation, consultation or

exchange of information between or amongst
representatives of governments , employers and
workers on issues of common interest relating to
economic and social policy.
INDUSTRIAL RELATIONS RESTS ON SOCIAL DIALOGUE
IN THE WORKPLACE

Industrial Relations is a discipline, that concerns itself

with the study of the relationships between employer
and the employee in an organization , industry or a
nation level.

These relationships are shaped in the larger context

of societal, economic , political and technological
forces that are in existence.
 State

Employers Employees

Relationship

Employer groups Employees’ Groups

Trade Unions

Context and Rules Structures

The Actors: their Objectives
Case i
The workers of Eastern Medikit Ltd (EML), Gurgaon, saw a notice put-up in the five units of
EML on 18 May 2012, communicating that the plant is under shutdown. They had never
imagined that they would be facing such uncertainty related to their future while working at
EML.

EML, established in the year 1988, was manufacturing and exporting medical disposables,
disposable needles and surgical needles. The employee strength was 1,200 permanent
employees and 400 permanent employees in the supervisory role, and 3,000 contract
employees. Since 18 May 2012, the employees were continuously protesting against the
company management for abruptly shutting down all the five plants and not paying their
salaries and other dues.

The EML management alleged that the workers were not reporting for their duties and were
on an ‘illegal’ strike. On the other hand, the labour union leaders argued that the factory
was shut down to compel the employees to leave the organization.
The labour union leaders and the workers complained to the labour department and also
took up their issue before the district magistrate to get their problem settled. Families of
1,200 permanent workers had to face dire circumstances due to the closure/lockout
declared by the management of EML.

The labour department made efforts to settle the dispute and called conciliation meetings,
issued notices to the management and challans for non-compliance of the legal provisions.
But the adamantine approach of the management reaped no results. Finally, the labour
department made reference of the dispute to the industrial tribunal at Gurgaon
 CRITERIA FOR GOOD INDUSTRIAL RELATIONS
No. of Strikes & lockouts and their intensity - man days / man-hours
lost & production loss during last five years.

Productivity improvement initiatives and result achieved.

Number of Industrial Disputes pending.

1. Welfare measures and CSR activities launched by the company.

2. Training/re-training and skill development initiatives taken by the company for
employee's development.
3. Information about grievance machinery set up by the management at various
levels for redressal of genuine grievances of workers.
4. Whether Works Committees have been set up: if so, details about their
composition, functioning and settlement of issues referred to it.
5. Voluntary welfare measures initiated by the company.
6. Whether the company has initiated steps towards involving workers' in various
decision making process.
7. Formal as well as informal forums & number of committees.
8. The system of communication adopted with employees & its relevance in the
industrial relations.
9. Employee retention rate during the last 5 years.

Criteria adapted by AIOE, an allied body of FICCI for outstanding Industrial Relations
 Who makes the Labour Laws?

Concurrent List under Article 246 of the Indian constitution

47 central labour laws

200 state labour laws.

The three main acts that are the cause of contention are the
Industrial Disputes Act (1947), the Contract Labour (Regulation and
Abolition) Act (1970) and the Trade Union Act (1926).
FOUR KINDS OF LEGAL FRAMEWORKS

Laws pertaining to

1. Working conditions: Factories Act, Shops

and Establishments Act
2. Social security: ESI Act, Employees
Compensation Act, EPF Act, Gratuity Act
3. Wages: Payment of Wages, Bonus, Minimum
Wages
4. Industrial conflicts resolutions : Industrial
Disputes Act, Industrial Employment Standing
Orders Act
 Issues in Labour Laws

1. Archaic nature
2. Too many laws.
3. Lack of uniformity between laws.
4. Excessively protective of employee interest.
5. Creates rigid boundaries in running business.
6. Too narrow a coverage.
7. Problems of implementation. Too much of power to Inspecting
agencies.

Manish Sabharwal on NDTV

https://www.youtube.com/watch?v=WQuL8aUs8lo

https://youtu.be/sDm1I-AiG5g
 Multiplicity of Labour Laws

1. Currently, there are separate laws for cine workers, dock

workers, motor transport workers, sales promotion employees,
plantation labour, working journalists and workers in mines.
2. Varied definitions on child, contract labour, wages, employee,
workman, factory, industry, etc.

Suggestion to unify all the definitions to give way for a

Uniform Labour Code ,where ,for instance, all provisions
related to social security or wage can come under single
statutes respectively.
 Other Issues with Labour Laws

Employers allege excessive state intervention in areas other than

industrial relations. Two examples:

1. Section 10 of factories Act where there are provisions

regarding number of spittoons,
2. Section 43 where there are rules regarding space for keeping
clothes that are not worn during working hours, etc.

There are numerous such provisions where state intervention

generally not required.
Definitions
Worker
Factories Act

a person employed, directly or by or through any agency (including

a contractor) with or without the knowledge of the principal
employer, whether for remuneration or not, in any manufacturing
process, or in cleaning any part of the machinery or premises used
for a manufacturing process, or in any other kind of work incidental
to, or connected with, the manufacturing process, or the subject of
the manufacturing process but does not include any member of the
armed forces of the union;
Definitions
Worker
Industrial Disputes Act

‘Any person employed ( including an apprentice) in any industry to

do any skilled , manual or clerical work for hire or reward , and
includes for the purpose of any proceedings under the Act , in
relation to an Industrial Dispute , a workman discharged during
that dispute ,
but does not include any person employed
in the Naval, Military or Air Service
In a managerial or administrative capacity
In a supervisory capacity drawing more than Rs. 1600 per month
as his wages
Exercises functions mainly of a managerial nature.’
Definitions
Worker
Payment of Bonus Act
Employee

Any person other than an apprentice)employed on a salary or

wage not exceeding ( 21000 pm) in any industry to do any skilled
or unskilled manual, supervisory, managerial , administrative ,
technical or clerical work of hire or reward , whether the terms of
employment be expressed or implied.
 Labour Law Reforms :
the economic rationale
for this?

Economists have long argued that India’s outdated labour

laws need change. Stringent hiring-firing rules applied to
firms with over 100 employees, making it virtually
impossible to lay off workers. This adversely acted as an
incentive for smaller firms to stay small so they could
escape the rules. According to the World Bank, with less
restrictive laws, India could approximately add on an
annual basis “2.8 million more good quality formal sector
jobs”.
 Labour Law Reforms

The government has now merged 29 central laws

into four codes:

1. The Occupational Safety, Health And Working

Conditions Code, 2020.
2. The Industrial Relations Code, 2020.
3. The Code on Social Security, 2020
4. The Wage Code, 2019.
 Labour Law Reforms :
Industrial Relations
code
Under the Industrial Relation Code, the government has allowed companies
with up to 300 workers to fire workers or shut plants without the prior
approval of the government. Hitherto, prior approval had been required.
Firms with more than 300 workers need to still apply for approval. However,
if the authorities do not respond to their request, the retrenchment proposal
will be deemed to be approved. Earlier labour laws required a 30- to 90-
day notice period before retrenching “workmen”, which is a class of mainly
shop floor workers. In the case of manufacturing units, plantations, and mines
with 100 or more workmen, lay-offs also required government approval. To
be sure, 90% of India’s workforce, which is employed in the informal sector,
won’t be affected by these changes.
 Labour Law Reforms :
Industrial Relations
code

The Industrial Relation Code lays down new conditions on the

right of workers to go on strike. Unions will now have to give
60 days’ strike notice. If proceedings are pending before a
labour tribunal or the National Industrial Tribunal, workers
cannot go on a strike for 60 days after they are concluded.
These conditions apply to all industries. Earlier, workers could
go on strike by giving between two weeks and six weeks of
notice. Flash strikes are now outlawed.
Labour Law Reforms :
Occupational Safety, Health and
Working Conditions Code, 2020

The Occupational Safety, Health and Working Conditions Code,

2020, amends laws regulating occupational safety, health and
working conditions of employees. The code empowers a state
government to exempt any new factory from the provisions of the
Code to create more economic activity and jobs. It fixes the
maximum daily work limit at eight hours a day. Women will be
entitled to be employed in all establishments for all types of work
and in case they are required to work in hazardous or dangerous
operations, the government may require the employer to have
adequate safeguards in place prior to employment.
Labour Law Reforms :
The Code on Social Security, 2020

The Code on Social Security, 2020 promises universal social

security for the first time, including for both organised and informal
workers as well as gig and platform workers. The government, the
code states, shall formulate and notify, from time to time, suitable
welfare schemes, including schemes relating to “provident fund;
employment injury benefit; housing; educational schemes for
children; skill upgradation of workers; funeral assistance; and old
age homes”. The government can tap corporate social
responsibility funds (within the meaning of the Companies Act,
2013) or any other such source as may be specified in the scheme.
The social security code lays down the setting up of a National
Social Security Board to recommend to the central government
suitable schemes for unorganised workers.
 Labour Law Reforms :
The Code on Wages, 2019

The Code on Wages, 2019 replaces four existing labour laws:

(i) the Payment of Wages Act, 1936, (ii) the Minimum Wages Act,
1948, (iii) the Payment of Bonus Act, 1965, (iv) the Equal
Remuneration Act, 1976.

The main purpose of the enactment of this Code is to universally

regulate the provisions for minimum wages and to ensure a well
timed payment of minimum wages for all workers in India. It is
applicable to all employees in both the organized and
unorganized sector. The provisions of the Code covers all the
employers and employees of all sectors except the members of
the Armed Forces of the Union and apprentices engaged under
the Apprentices Act, 1961 are excluded from the Code.
Need to create decent
work practices

Because labour in the new industries would face different types of

insecurities like job security in the wake of contractual work, lack of
minimum wages legislation, housing and health facilities and most
importantly old age benefits.

Emphasis should first and foremost be laid on decent work practices

along with proper implementation of minimum wages in both
formal and informal sectors which call for commitment from he
employer’s side as well. For instance, if a small level trader in the
informal sector hires a handful of workers we do not know whether
the trader himself is capable enough to provide minimum wages to
its handful of employees..
GROUP PROJECTS

1. Performance Management system

2. Compensation & Rewards
3. Employee Engagement
4. HR Planning & Talent Acquisition
5. HR Analytics
6. Leadership Assessment and Development

Word file . Should cover :

• The impact of Covid

• Future unique practices
• scenario