Module 1

1.1
Peace and harmony in the organization is very important for the
economic development of any nation. To bring that peace and harmony in
industries there needs a law.
When the capital and man power goes hand in hand the industry can
prosper and aid the nation for a good economic condition. Hence it is
important for the government to concentrate in the area of harmony in the
industries. By implementing certain law for labour the government can
try to provide a safety working environment to the employees.

Ensure fair wages to workers:

The Labour laws, regarding to wages, ensures fair wages to the labour. In
every nation where ever labour laws are implemented they make a
minimum amount mandatory to be paid to the labour which is according
to the cost of living of the nation. No employer can pay less than that
minimum wages to any employee.

Child Labour:
There were no restrictions on the child labours till the date Labour Law is
been implemented. Many problems have been faced by the children’s in
the industries like more working time, less wages, hazardous work etc.
The law regarding Child labour and restrictions laid by the government
on engaging the child labour regularized the situation of child labour in
the industries to a remarkable level.
Safety and health:
Every manufacturing unit involves heavy machineries in their production
process. These machineries also add risk to the employees who are
working in it. Hence labour law imposed several sections which are with
a motive ensure maximum safety to the life and health of the employees
in the industries.
Proper working condition:
Labour Law imposed some sections which deals with the temperature to
be maintained in the factory, Humidity, cleanliness, sitting place for the
employees etc. which will lead to a proper and comfortable working
condition o the employees.
Employees Union:
Labour laws have provided a way for the employees to form their own
union through which they can fight for their rights. Acts like industrial
disputes Act, Trade Union Act in India made a proper structure for
employees union and provided the unions with certain rights which are
must. This will help the industries to maintain peace and harmony
between the employees and the employers.
Working Hours:
Before the introduction of laws related to labours the employees were
suppose to work in such a condition where the working are not fixed,
usually very long. This was also a major concern for the law makers.
They prescribed a standard for fixing the working hours of labours.
Separate working hours and working time were also fixed for female
employees in the industries.

1.2
For the efficient functioning of a working unit  an  amicable
environment,  cooperation  between  the workers  and  the  employers, 
reasonable  remuneration  and  proper  working  condition  are  the
prerequisites. From the laissez faire to  the  ‘welfare  state’,  the  socio-
economic conditions have faced drastic changes, not only in India but
also across the world. The  industrial  position  that  prevailed in the pre-
independence  era of  India does  not  remain pristine. The industrial
revolution in India brought with it certain inhumane as well as unjust
aspects of the colonial era. To cope with these problems, industrial
legislations were enacted in India. To keep pace with the changing socio-
economic conditions in India, the Legislature as well as the Courts had to
check the unfavourable growth of the industrial legislations. 
During the 20th century a new branch of jurisprudence known as
industrial jurisprudence has developed in our country industrial
jurisprudence is a development of mainly post-independence period
although its birth may be traced back to industrial revolution before
independence it existed in rudimentary form in our country. The growth
of industrial jurisprudence can significantly be noticed not only from
increase in labour and industrial legislation but also from a large number
of industrial laws matter decided by the supreme court and high courts it
affects directly a considerable population of our country consisting of
industrialist workmen and their families those who are affected indirectly
constitute a large bulk of countries population this branch of law
modified the traditional law relating to the master and servant and head
cut down the old theory of laissez faire based upon the freedom of
contract in the larger interest of the society because that theory was found
wanting for the development of harmonious and amicable relations
between the employer and employee. Individual contracts have been in
many respect substituted by a standard form of statutory contract through
legislation and judicial interpretation. the traditional right of an employer
to hire and fire his workman at his bill has been subjected to many
restrain industrial tribunals can buy the award make a contract which is
binding on both the parties creating new right and imposing new
obligations arising out of the award there is no question of employer a
green to the new contract it is binding even though it is an acceptable to
him the creation of new obligation is not by the parties themselves either
or both of them maybe opposite to it never the less it binds them does the
idea of some authority making a contract for the workmen and the
employer is a strange and a novel Idea and is foreign to the basic
principle of law of contract. Many problems like social problems like
lawlessness in industries exploitation of relation between employee and
employer such exploitation of labour rise to many serious social tension.
The concept of industrial jurisprudence in our country developed only
after independence until Independence the change in attitude of the
Government and the benevolent labour legislation only amelioration of
the conditions of labour and it could hardly be said to be deal in Social
justice to the working class the birth of industrial jurisprudence in our
country maybe ascribed to the constitution of India which made more
articulate and clear the Industrial Relations philosophy of republic of
India this philosophy has awarded the broad and clear guidelines for
development of our industrial jurisprudence and has the second India one
step forward in her Quest of industrial harmony the Parliament and the
Supreme Court has helped in shaping industrial jurisprudence the former
through legislation and the latter as interpreter of a Labour Law.

EVOLUTION OF INDUSTRIAL JURISPRUDENCE IN INDIA.

The  evolution  of  Industrial  Jurisprudence  in  India  can  be  traced 
back  to  the  period  of  post Independence. Before the Independence, 
the industrial jurisprudence existed in  a rudimentary  form. The
paramount concern of the Pre-independence industrial jurisprudence was
the amelioration of the working condition of the workers at the factories.
There was hardly any deal with the social justice to the  working  class. 
It  was  only  after  the  commencement  of  our  Constitution,  that  the
adequate provisions for the social justice to the workers were inserted. 
Before  the  Independence,  India  was  not  only  a  great  agricultural 
country,  but  also  a manufacturing country. But  the British 
Government, as a matter  of their  policies always  tended to discourage
the Indian industries. This led to a widespread nationalism in India, which
laid emphasis on the boycott of the foreign goods. Further a non-
cooperation movement saw its birth that is also called swadeshi
movement, which  emphasised on  the use of  indigenous goods  and
boycott of the  foreign goods.
The  aspect of  industrialisation  in India  was  based on  the  program of 
planning,  which was accepted after thirties.
It is important to take into consideration that the plantation industry of
Assam was the first to attract the industrial legislation. The situation there
was that the employers  exercised hard practices against the employees.
The employees were not allowed to leave the tea gardens. A number of
Acts were passed from 1863 onward, but they only protected the interests
of the employers. Some other Act.
Trade Union Freedom:
One of the basic features for successful labour law of any economy is the
freedom of trade union. The freedom signifies how the particular
economy is free, open and liberal with such freedom the path of trade
union for self-reliance; self-control inner and outer democracy shall get
accelerated. In such social and economic society like India where still
44% of population are under the poverty line it is not expected by them to
know the laws and strive hard for them here comes the gap which has to
be filled by judiciary. In India the trade union are philosophy used in
social lieu and economic exploitation, political oppression in such
economy may at times even the trade union could be considered as the
suspicious hence it is necessary for both the regulating and judicial
process are considered as the major instrument for defeating and denying
and controlling trade union freedom.
It tends to be said that in the before times in India the colonial Trade
Union Act, 1926, and the different open public security laws.
Fundamental Services Act, Criminal Law Amendment Act, The Indian
Penal Code, The Police Act and the Criminal Procedure Code, are a
couple of precedents, just such a state of mind hold on in the most recent
many years of the twentieth century in the appearance of National
Security Act, 1980 and the Essential Services Maintenance Act. In so far
as Indian adjudicatory procedures as exemplified in the Industrial Dispute
Act, 1947 and other work the board laws is concerned, it has been tilting
towards social equity as opposed to exchange association freedoms.
Considering above for economic development and improved industrial
relations the productivity, evolution of Industrial jurisprudence is
essential.
The Supreme Court and High court have played an important role in
revolutionizing the methods, approaches and interpretations paving a way
towards new industrial jurisprudence by plying the powers of judicial
review. It is not merely the laws but there are even certain cases by
introducing the new character and new action in course has strengthen the
legal provision for labour law of India. Initially the demand of trade
union on higher ages was dismissed by high round because of reason that
court cannot alter the contractual obligation between the parties. But after
the case of Western India Automobile Association Vs Industrial
Tribunal social interest is considered prime for securing peace and
harmony between employer and work me.
Supporting the above judgment in the case of State of Bihar vs
Kameshwar the Supreme court of India very clearly advocated the new
idea of social justice in form of general interest of the community.
Certain judiciary bodies the judges have made tremendous efforts for
delivering justice for working class. Justice V.R Krishna Iyer made a
philosophy that “the principles of the scientific management tend to value
technical efficiency about the human factors may not hold goods in
managing human beings who have clearly demonstrated in recent years
that they cannot be treated a cog in the wheel of machinery. They would
like to have responsibility and respectable place in society and also in
industry where they work for about 100 years.
Right to Strike: The constitution, Courts and Adjudication.
In India many a times the strikes are the answer to many problem like
lack of proper trade union consciousness or lack of legal awareness about
the consequences of strikes or for non-payment of proper wages, stringent
working conditions, failure of collective bargaining system and other
methods of settlement of industrial dispute, involvement of political
parties, dominating attitude of the management, failure in providing
labour welfare and social security, the right to strike has also been
recognized in all democratic societies reasonable restrain use of this
proper is also identified. Further the employers also have the liberty to
apply the weapon of lock – out in case people fail to comply with the
regulations of agreement of employment. The diploma of freedom
granted for its workout varies in line with the social, economic and
political variations within the device for securing public interest, the hotel
to strike or lock – out and in a few cases the duration of either problem to
guidelines and policies or voluntarily agreed to via the parties or
statutorily imposed this has been criterion underline the earlier legislation
for regulating commercial relations within the country.
In case of Romesh Thappar there was an attempt made to include theory
of connection within the ambit of constitution i.e., to imply right to strike
within the confines of Article 19(1)(c). Similarly in case of All India
Bank Employee’s Association Vs.   Tribunal and others the right
guaranteed by Art 19(1)(c) of the Constitution of India does not carry
with it concomitant right that unions formed for the protection of the
interests of labour shall achieve their object such that any interference to
such achievement by any law would be unconstitutional unless it could be
justified under Article 19(4) of the Indian Constitution as being in the
interest of public order or morality. The right under Article19(1)(c)
extends only to the formation of an association or union concerned or as
regards the steps which the union might take to achieve its object, they
are subject to such laws and such laws cannot be tested under Article
19(4) of Indian Constitution.
T.K Rangarjan Vs State of Tamil Nadu
In this case the Hon’ble Supreme Court observed two important issues
raised in this case
1. It is a fundamental right to go on strike?
2.  In this case does the employee have statutory right to go on strike?
It is a fundamental right to go om strike ?
     The Apex Court in the process of answering the same referred the
judgments of previous cases of Kameswar Prasad and others Vs. State
of Bihar and another wherein the Supreme Court held that there exists
no fundamental right to strike. The Supreme Court quoted another
judgment in the case of Radhey Sham Sharma Vs. The Post Master
General, Central Circle, Nagpur. The fact of the case that the employees
of the Telegraph Department of the Government went on strike from the
midnight of July 11, 1960, throughout India and the petitioner was on
duty on that day. As he went on strike, in the departmental enquiry,
penalty was imposed on him. The same was challenged before the
Hon’ble Court. In that context it was contended that Sec.3,4 and 5 of
Essential Service Maintenance Ordinance No.1 of 1960 were violative of
Fundamental Rights guaranteed by clauses (a) and (b) of 19 (1) of the
Indian Constitution. The court considered the said ordinance and held that
Sections 3, 4 and 5 of the ordinances did not violate Fundamental Rights
enshrined in Art 19(1)(a) and (b) of the Constitution of India.
 The Supreme Court concludes that there exists no fundamental right of
Strike.
In the instant case, do the employees have a statutory right to go on
strike?
The Supreme Court of India observes that there is no statutory provision
empowering the employees to go on strike. Further it observes that there
is prohibition to go on strikes under the Tamil Nadu Government
Servants Conduct Rules, 1973. Rule 22 provides that “no government
servant shall engage himself in strike on incitements there to or in similar
activities” The Hon’ble Supreme Court of India did not impose a blanket
ban on all strikes. The court further declares that the said strike to be
illegal in view of Rule 22 which prohibits government servants from
going on strike. Several decisions of the various High Courts in India as
well as the Supreme Court itself have adverted to and positively affirmed
the right to strike in so far as workmen are concerned.
Cases Cited:
1. Western India Automobile Association Vs. Industrial Tribunal.
2. State of Bihar Vs Kameshwar
3. Romesh Thapper Case
4. All India Bank Employee’s Association Vs Tribunal and Others
5. Kameshwar Prasad and others Vs State of Bihar
6. Radhey Sham Sharma Vs The Post Master General, Central, Circle,
Nagar.

1.3
LAISSEZ FAIRE TO WELFARE STATE: THE EVOLUTION
The term “administrative law” is not a newly coined term. The traces of
administrative law can be seen in almost every legal system of the world.
In India, from Mauryas to Guptas, Guptas to Mughals, from Mughals to
the East India Company.The development of administrative law goes
hand-in-hand with the development of the society. Administrative law
can more rightly be said to be the sociology of law and not the
philosophy of law. The growth of Administrative law is to be attributed to
a change of philosophy as regards the role and function of the State. The
three main stages led to the expansion of the meaning of the term
Administrative law1-
1. Laissez Faire
2. Dogma of Collectivism
3. Social-Welfare State

Laissez Faire
In the early 20th century the political gospel of laissez-faire was
preached. The principles on
which the theory of laissez-faire works are as follows-
 Minimum control of government
 Free enterprise
 Law and order not counted as subjects of state
 Power said to be concentrated in the hands of the individual
Laissez Faire" is French for "leave alone" which means that the
government leaves the people alone regarding all economic activities. It
is the separation of economy and state.The state was characterized as the
“law and order” state and its role was conceived to be negative as its
interest extended primarily to defending the country from external
aggression , maintaining law and order within the country , dispensing
justice to its subjects and collecting taxes to finance these activities. It
was an era of free enterprise and minimum governmental responsibility
and functions.The management of social and economic life was not
regarded as governmental responsibility. But the laissez faire doctrine
resulted in human misery .It came to be realized that the bargaining
position of every person was not equal and uncontrolled contractual
freedom led to exploitation of the weaker by the stronger. By this the vital
power was concentrated in the hands of the rich people and the balance of
economy got terribily shaken which only paved way to a debacle that is
the increasing economic disparity where the rich became richer and the
poor became poorer. On the one hand, slums, unhealthy and dangerous
conditions of work , child labour , widespread poverty and exploitation of
the masses , but on the other hand , concentration of wealth in a few
hands , becomes the order of the day. Thus the theory of Laissez –faire
met with the following pitfalls-
 Concentration of powers
 Widening the inadvertent gap between the poor and the rich

2. Dogma Of Collectivism
After the miserable consequences that the police state suffered because of
the terrible failure of Laissez-Faire, the principle of collectivism evolved
which said that the state and individuals shall work in proper
synchronization. It came to be realized that the state should take active
interest in ameliorating the conditions of the poor. The state , thus, had
proper control over the actions of the individuals and the state also stood
up to take the responsibility for the individual’s life liberty and property.
The state started to act in the interest of social justice ; it assumed a
positive role.

3)Social Welfare State

The Dogma of collectivism gave birth to the being of a social-welfare
state. India is a socialistic republic as the Preamble of the Constitution
articulates. The social welfare state thrives on the principle of providing
justice of all kinds be it social, economic or political and all laws and
actions of the government to be taken keeping in mind the interests of the
citizens. It lays emphasis on the role of the State as a vehicle of socio
economic regeneration and welfare of the people.The Constitution
envisions to have an egalitarian society. From Laissez –faire to a social
welfare state, the meaning and definition of administrative law has
developed tremendously. After turning into a social-welfare state the
function of state shifted from setting the parameters or for deciding the
administrative functions to following the principles of natural justice and
reasonableness.

WELFARISM IN INDIA
Before 1947, India was a police state. The ruling foreign power was
primarily interested in strengthening its own domination; the
administrative machinery was used mainly with that object in view and
the civil service came to be designed as the “steel frame” .The state did
not concern itself much with the welfare of the state.3
But all this changed with the advent of independence. A conscious effort
began to be made to transform the country into a welfare state. Social
welfare activities in the country find their inspiration in constitution
which postulates the goal of welfare state.
The purpose of the Directive Principles is to fix certain social and
economic goals for immediate attainment by bring about a non-violent
social revolution.

1. Welfare State: The Constitution envisages the establishment of a

“Welfare State” at the federal level as well as the State level. In a Welfare
State, the primary duty of the Government is to secure the welfare of the
people.

2. Social Revolution: The Directive Principles of State Policy set forth

the humanitarian socialist precepts that were the aims of the Indian social
revolution, i.e., to work for an egalitarian society, where there is no
concentration of wealth, where there is plenty, where there is equal
opportunity for all, to education, to work, to livelihood and where there is
social justice.

3. Emphasizes the ideals of Preamble: The Directive Principles

emphasizes, in amplification of the Preamble, the goal of the Indian
polity is not laissez faire, but a Welfare State, where the State has a
positive duty to ensure to its citizens social and economic justice and
dignity of the
individual.

Article 38 of the Constitution enjoying that the steps shall strive to

promote the welfare of the people by securing and protecting as
effectively as it may, a social order in which, social, economic and
political shall in form all the institutions of the national life.The state is
required to direct its policy towards securing that the citizens have equal
rights to an adequate means of livelihood ; that the ownership and control
of the material resources of the community are so distributed as best to
subserve the common good; no concentration of wealth and means of
production to the common detriment;and equal pay for equal work.(Art.
39) The State is obliged to provide for education and assistance in old age
, in unemployment and in other contingencies (Art. 41) .The State is to
provide for free and compulsory education for children upto age of
fourteen years(Art. 45 and 21 A)
Further , in interpretation of law and the constitution , the judiciary does
at time take note of the ideals of a social welfare state even though some
ideals may not be expressly incorporated in the
Constitution.
In the case of Samatha v. State of Andhra Pradesh 5 , the Supreme
Court as regards the basic tenor of the Indian Constitution held that “The
Constitution envisions to establish an egalitarian social order rendering
to every citizen , social , economic and political justice in a social and
economic democracy.”
Again , the Supreme Court has stated in Paschim Banga Khet Mazdoor
Samity v State of West Bengal that “The Constitution envisages the
establishment of a welfare state at the federal as well as the State level .
In a welfarem state the primary duty of the government to secure the
welfare of the people.”
The emergence of the social welfare concept has affected the democracies
very profoundly .It has led to state activism .There has occurred a
phenomenal increase in the area of State operation ; it has taken over a
number of functions which were previously left to private enterprise.
Thus the State , in India today , pervades every aspect of human life ; it
runs buses , railways and postal services; it undertakes planning of social
and economic life of the community with a view to raise the living
standards of the people and reduce concentration of wealth; it improves
slums , plans urban and rural life, looks after health , morals and
education of the people ; it generates electricity , works mines and
operates key and important industries. It acts as an active investment of
socio –economic policy, regulates individual life and freedom to a large
extent , provides many benefits to its citizens , and imposes social control
and regulation over private enterprises.

WELFARE STATE : PROS AND CONS

Justification of the Welfare State:
The welfare State is a halfway house between individualism and
socialism. It strikes a balance between individualism and socialism. It
neither regards the State as a necessary evil nor regards it as an all
powerful institution. The State is viewed as “a friend, philosopher and
guide” of the individuals.

The welfare State adopts “a mixed economy”. It allows both private and
public sectors to play their roles in the development of national economy.
It believes in planning. Planning is considered as necessary and inevitable
in the welfare State. It constitutes one of the significant dimensions of the
welfare State. The State controls and regulates economic system through
planning. It undertakes the responsibility of bringing about material
welfare of the people. It guarantees a basic minimum to every individual.
It also guarantees social security and provides adequate opportunities for
the individuals for development. The State considers it as an obligation to
try to provide employment opportunities to ail the able-bodies citizens.
The State takes responsibility of providing education and, of looking after
the health of its citizens. It takes measure to abolish illiteracy and
poverty. It comes forward to establish various charitable institutions. It
prevents exploitation of the working class. It promotes social justice.
Used on a wider sense, the tern social justice includes both economic
justice and social justice. It has the objective of eliminating all
inequalities and giving to all citizens in social and economic affair equal
opportunities. The prevalence of social justice make: democracy
significant, purposeful, meaningful ant dynamic. Without social justice,
democracy is poor in its content. Hence the concept of the welfare State is
linked with the concept of social justice. A welfare State is expected to
uphold the principle of social justice. The welfare State upholds the rights
of all men and women and provides equal treatment to all individuals
without any discrimination. In fact, it works “within the framework of
democratic political institution.”

Disadvantages of a Welfare State:

One of the disadvantages of welfare is that it is a burden on taxpayers.
State , to perform these social welfare activities collects taxes from its
citizens . Therefore if the ambit of activities that comes under social
activities increases , it further increases the burden and the taxpayers .
Absence of competition makes the system inefficient. Another
disadvantage is that it discourages productivity.
One last disadvantage is that sometimes people are able to find loopholes
in the system and get money for no reason. In theory, the disadvantages
of a welfare state are that people become dependent on the government to
provide for their needs when they could instead be out trying to meet or
exceed their own needs.

SOCIAL WELFARISM IN INDIA : AN ILLUSTRATION

As already mentioned above, the State or the government in India is
responsible for all the public welfare activities like transportation ,
running of schools , women welfare etc. Taking the example of the
transport scenario in India , an effort is made to review the social
welfarism in India and find a suitable answer to the question of the
viability and suitability of such a welfare structure. Transport system of a
country is an area which mostly is governed , controlled and directed by
the govt. Though private players exist , the nominal share of this sector is
government controlled and thus the govt . has a monopoly over it. Since,
it is govt . controlled , disparity or inequality is seen in various states and
places .There is difference between the way of governance by various
state governments. For eg : New Delhi being the capital of India , has the
best transport system in the country. All Parts of the city, irrespective of
their level of development are very well connected, either by buses or by
metros. On the other hand, Pune, though being one of the metropolitan
cities and considered the educational hub of the country does not have a
proper transportation system. Various parts of the city are not at all
connected by any kind of transport system. The bus transport system is
not very effective. It is thus very difficult for people (especially students)
who do not have their own conveyance to travel from one part of the city
to another .The options left, like autorickshaws are very expensive and
thus not affordable to many. Thus , in the above scenario it can be seen
that the level of social welfare activities carried out by the govt. differ
from place to place and is dependent upon various economic and political
factors. This exactly cannot be said to be welfare of the country in holistic
sense and the centre focuses on some places more than the others.
Another aspect of transportation in India , is the metros. Metros are
available only in a few metropolitan cities, where it is considered one of
the most important means of transportation. In other cities, like Kochi and
Pune, though various master plans have been prepared and sanctioned for
the metro project nothing has come into implementation. This shows the
disparity exercised by the govt , not only in transport but in various other
social sectors and activities. Some sectors of the transport system in India
are governed entirely by the government, while there are some which has
a parallel and simultaneous private participation in it. The Bus transport
system, though majorly controlled by the various state govts does face
competition from a few private players. Railways on the other hand is one
aspect of transport which in its entirety is in the hands of the govt. The
question which arises here is how effective the railways system in India
is? It is a known fact to all that our railways has been running into losses,
due to which it is being run in a very poor condition. The food served is
mostly infested by pests and not prepared in a hygienic manner, leaving
the food inedible. Thus, though the govt is providing social services, it is
known being carried out in an uneffective and inefficient manner. Hence ,
in such a situation is it necessary for the govt. to invite private
participation to improve the dilapidated condition our railway system is
in now. Is this the need of the hour? Should the govt, take such steps.
These are the questions that everyone has been raising and it is now, the
time for the state to answer the same. Metros, started running in New
Delhi, under the realm of the Delhi Metro Rail Corporation. Since then
more than half of the Delhi’s population uses metro as their means of
transport. Though run entirely by the govt, it was a highly effective and
efficient ways of transport. However, there have been some places were
the pillars cracked and fell, leading to loss of lives and resources of many.
Though repaired, the metro, at these places still runs on these pillars. This
carelessness may be a gateway to the next biggest disaster in India. This
shows that, however effective the govt . is, it does have some shortfalls .
On the other hand, one of the metro lines, connecting the Indira Gandhi
International Airport to the New Delhi Railway Station is owned by
Reliance, a private player. Though the lines were stopped for sometime
due to the same problems of cracks, they have repaired it completely and
now the trains are running in a profitable manner .This expressly shows
that private participation does ensure certain standards which the state,
though being the father of all social activities , is not able to ensure .This
illustration brings about both pros and cons of the system of
transportation in India, which in turn shows how that the system of social
welfare has both its advantages and disadvantages. Governance by state
does not necessarily mean bad governance and on the other hand, private
interference also does not ensure high standards. It would be cynical not
to appreciate the efforts done by the State to bring about social welfare in
the country. The govt has played an important role in the same and it is
pertinent to appreciate them.

1.4 and 1.5

Industrial relations imply the relation between both employer and
employees during the period of employment in an industrial organisation.
However, the concept of industrial relations has a broader meaning. In a
broader sense, the term industrial relations refers to the relation between
various unions, state and union, and between employers and government.
Relations of all those associated with the industry may be known as
industrial relations.
According to the International Labour Organisation (ILO), industrial
relations deals with relationships between either state and employers and
workers organisations or the relationship between the occupation
organisation themselves.

Industrial Relation Meaning

The term industrial relations comprises two words, i.e. ‘industry’ and
‘relations’. The term ‘industry’ refers to any productive activity in the
organisation in which the employees are engaged. On the other hand, the
term ‘relations’ refers to the relationship, which exists within the industry
between the management and the employees. The relationship between
management and employees within the organisation within the
organisational settings is defined by industrial relations. Industrial
relations emerge directly or indirectly from management-trade union
relationships.

Characteristics of Industrial Relation

Following are the significant features of industrial relations:

Industrial relations are the result of employment relationships in

industrial enterprises. Industrial relations introduced the concept and
method of balancing and cooperating. Industrial relations formulate rules
and regulations to maintain harmonious relations.The intervention of the
Government to shape the industrial relation is made through laws,
agreements, rules, charters, etc. Industrial relations incorporate both
individual relations and collective relations. Several parties play a role in
industrial relations. The main parties are employees and their
organisation, employers and their association, and government. 

Objectives of Industrial Relation

Following are the different objectives of industrial relation.”
To establish industrial peace.
To safeguard the interests of both workers and management.
To avoid industrial disputes.
To raise the production capacity.
To establish industrial democracy.
To minimise the labour turnover rate and absenteeism.
To safeguard the workers economic and social interests.
To contribute to the economic development of the country through
productivity.
To establish a full employment situation.
To minimise strikes, lockout, Heroes, etc., by providing good working
conditions and fair wages to the workers.

Nature of Industrial Relation

Industrial relations are concerned with the relationship between
management and workers. Industrial relations safeguards the interest of
employees.
Industrial relations are concerned with the system, rules, and procedures
used by unions and employees to determine the reward for effort and
other conditions of employment, safeguard the interests of the employees
and their employer and regulate how employers treat their employees.
Industrial relations maintain a balance with employee expectations,
employer associations, trade unions, and other social and economic
institutions of societies.
Industrial relations help in resolving disputes, conflicts, and controversies
between labour and management.
Scope of Industrial Relation
Industrial Relations is a wide-reaching term. Different scholars have
expressed their different views on the scope of industrial relations.
According to Dale Yoder, “Industrial relations incorporate policies
related to recruitment, selection, training of workers, personnel
management, and collective bargaining.” According to the International
Labour Organisation (ILO), industrial relations incorporate the relations
between state and employers and relations between trade unions and
employers associations.
According to Richard A Lester, the scope of industrial relations is no
longer limited only to trade unions and industrial management, rather it
includes all aspects of labour such as wages, productivity, social security,
management, and employee policies. Trade Union policies also form part
of it. In a modern organisation, the industrial relations functions are
performed by the Industrial Relations Department. This function is
performed under the supervision of the Director of the Industrial
Relations department. In the performance of this function, support is
rendered by different managers and subordinates. Different important
functions performed by workers of the industrial relation department
includes:
Management of policies and programs of industrial relations.
Public Relation
Labour Relation
Recruitment, Selection, and Placement of labourers.
To provide medical and health-related services.
To maintain employment records of the employees.
Provision of recruitment test, ability test, skill test, and intelligence test.
Provision of training and education program

What is the Importance of Industrial Relations?

Promotes Democracy: Industrial relations means employing collective
bargaining to resolve issues faced by workers. This collective bargaining
is generally employed through cooperation and mutual agreement
amongst all the affected parties, i.e., democracy, management, and
employees unions. This enables an organisation to establish industrial
democracy, which eventually motivates the workers to perform their best
to the growth and prosperity of the organisation.
High Morale: Good industrial relations enhance the morale of the
employees and motivate the workers to work more efficiently.
Avoid Conflicts Between Management And Union: Industrial relations
minimise issues between unions and management. This is because
industrial relations incorporate setting up machinery to resolve issues
faced by management and employees through mutual agreement to which
both these parties are bound. This results in ignoring any unfair practices
that could lead to major conflicts between employers and trade unions.
Minimises Wastage:  Satisfactory Industrial relations are maintained on
the basis of co-operation and recognition of each other in the department.
It helps to minimise wastage of material, manpower, and costs.
Economic Growth And Development: Good and harmonious industrial
relations result in increased efficiency and hence prosperity, which in turn
minimise turnover and other tangible benefits to the organisation. This
promotes economic growth and development.

Functions of Industrial Relations

The important functions of industrial relations are:
To establish communication between workers and management to
maintain the sound relationship between the two.
To establish support between managers and employees.
To ensure the creative contribution of trade unions to avoid industrial
conflicts.
To safeguard the interests of workers and the management,
To avoid an unhealthy and unethical atmosphere in an industry.
To formulate such considerations that may promote understanding,
creativity, and cooperativeness to enhance industrial productivity.
To ensure better workers’ participation.