Labour Laws Internal Assignment -test

Labour Laws Internal Assignment test

Q1.
Q. 1 Explain the scheme of the Industrial Dispute Act, 1947.
Answer:
Awards and Settlement:
The Industrial Dispute Act, 1947 which extends to the whole of India came
into operation on the first day of April 1947. As per Preamble of the said Act, it is
enacted to make a provision for the investigation and settlement of the dispute and
certain other purposes such as recovery of money from the employer in terms of
Settlement or Award by making an application to the appropriate government. The
purpose and aim of the Industrial Disputes Act 1947 is to minimize the conflict
between labour and management and to ensure, as far as possible, Economic and
Social Justice. The act has made comprehensive provisions both for this settlement of
disputes and prevention of disputes in certain Industries.
Method of settlement of Industrial Dispute:
In the interests of the industry in particular and the national economy in
general, cordial relations between the employer and employees should be maintained.
To ensure cordial labour management relations and to achieve industrial harmony, the
following methods of settlement of industrial disputes are provided under the Act.
1. Collective Bargaining:
Collective Bargaining or Negotiation is one of the methods for settlement of
an industrial dispute. It plays significant role in promoting labour management
relations and in ensuring industrial harmony Collective Bargaining is a
process/Method by which problems of wages and conditions of employment are
settled amicably, peacefully and voluntarily between labour and management. In
collective bargaining, the parties to the dispute I.e., the employer and the
employees/workmen settle their disputes by mutual discussions and agreements
without the intervention of a third party. Such settlements are called "bipartite
settlement". Therefore, settlement of labour disputes by direct Negotiation or
settlement through collective bargaining is always preferable as it is the best way for
the betterment of labour disputes. Collective Bargaining is recognized as a right of
social importance and greater emphasis is placed on it by India's five year plans. The

term 'Collective Bargaining' was coined for the first time by Sidney and Webb in their
famous book 'Industrial Democracy' published in 1897.
It means Negotiation between an employer and group of workers to reach
agreement on working conditions. N. W. Chamberlain (in his 'Source Book on
Labour: 1958 p. 327) described collective bargaining as "the process whereby
management and Union agree on the terms under which workers shall perform their
duties". In simple word, collective bargaining means "Bargaining between an
employer or group of employers and a bonafide Labour Union".
2. Conciliation:
Conciliation is a process, by which a third party persuades the parties to the
industrial dispute to come to an amicable settlement. Such third party is called
'Conciliation Officer' of Board of Conciliation. Sections 4 and 5 of the act provide for
the appointment of Conciliation Officer and the constitution of the Board of
Conciliation respectively.
3. Voluntarily Arbitration:
The expression 'Arbitration' simply means "the settlement or determination of
a dispute outside the court". Parties to the dispute, without going to the Court of law,
may refer the dispute/Matter to a person in whom they have faith, to suggest an
amicable solution. Such person, who acts as a mediator between the disputants to
settle the dispute is called "Arbitrator". The decision given by the parties, which is
binding on the parties, is called "Award". Therefore, Arbitration is a judicial process
under which one or more outsiders render a binding decision based on the merits of
the dispute. Section 10-A of the industrial dispute act, 1947 confers on parties, power
to enter into Arbitration agreement. The agreement must be in prescribed form and
must specify the name/names of the arbitrator or arbitrators.
4. Adjudication:
When an industrial dispute could not be settle either through bipartite
negotiations or through the Conciliation machinery or through the voluntary
Arbitration, the final stage resorted to, for settlement of an industrial dispute is
Adjudication or compulsory Adjudication, which envisages Governmental reference

to statutory bodies such as Labour Court or Industrial Tribunal or National Tribunal.

Section 7, 7-A and 7-B of the Industrial disputes Act, 1947 provide for the
constitution of Labour Court, Industrial Tribunal and Labour Tribunal respectively.
Definition of Award
Section 2(b) of the Industrial Dispute Act, 1947 defines Award as follows - According to
Section 2(b) of the Industrial Disputes Act, 1947 Award means an
interim or a final determination of any Industrial Dispute or of any question relating
thereto by any Labour Court, Industrial Tribunal or National Industrial Tribunal and
includes arbitration award made under section 10A.
Ingredients of Award –
To constitute Award under Section 2(b) of the Industrial Dispute Act, 1947 the

following ingredients are to be satisfied-

a) An Award is an interim or final determination of an industrial dispute.
b) It is an Interim or final determination of any question relating to such dispute.
c) Such interim or final determination is made by any Labour Court, Industrial
Tribunal or National Industrial Tribunal.
d) Award of Arbitrators under section 10A is an award.
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Q2.
Q. 2 Define Industry and elaborate what is covers and what not.
Answer:
Definition of Industry:
Section 2(j) defines industry, industry" means any business, trade,
undertaking, manufacture or calling of employers and includes any calling, service,
employment, handicraft, or industrial occupation or avocation of workmen.
This definition is in two parts. The first says that industry means any business,
trade, undertaking, manufacture or calling of employers and the second part provides
that it includes any calling, service, employment, handicraft, or industrial occupation
or avocation of workmen. "If the activity can be described as an industry with
reference to the occupation of the employers, the ambit of the industry, under the
force of the second part takes in the different kinds of activity of employees
mentioned in the second part. But the second part standing alone cannot define
industry. By the inclusive part of the definition the labour force employed in any
industry is made an integral part of the industry for the purpose' of industrial disputes

although industry is ordinarily something which employers create or undertake".

However, the concept that "industry is ordinarily something which employers create
or undertake" is gradually yielding place to the modern concept which regards
industry as a joint venture undertaken by employers, and workmen, an enterprise
which belongs equally to both. Further it is not necessary to view definition of
industry under Section 2(j) in two parts.
The definition read as a whole denotes a collective which employers and
employees are associated. It does not consist either by employers alone or by
employees alone. An industry exists only when there is relationship between
employers and employees, the former engaged in business, trade, undertaking,
manufacture or calling of employers and the latter engaged in any calling, service,
employment, handicraft or industrial occupation or avocation. There must, therefore,
be an rise in which the employers follow their avocations as detailed in the
defamation and employ workmen. Thus, a basic requirement of 'industry' is that the
employers must "Be" ""carrying on any business, 'trade, undertaking, manufacture or
calling of employers'. There is next much difficulty in ascertaining the meaning of the
words business, trade, manufacture, or calling of employers in order to determine
whether a particular activity carried on with the co-operation of employer and
employees is an industry or not but the difficulties have cropped up in defining the
word 'undertaking'.
"Undertaking" means anything undertaken, any business, work or project
which one engages in or attempts, or an enterprise. It is a term of very wide
denotation have been evolved by the Supreme Court in a number of decisions which
But all decisions of the Supreme Court are agreed that an undertaking to be within the
definition in Section 2(j) must be read subject to a limitation, namely, that it must be
analogous to trade or business.1 Some working principles furnish a guidance in
determining what are the attributes or characteristics which will indicate that an
undertaking is analogous to trade or business. The first principles was stated by
Gajendragadkar, J. in Hospital Mazdoor Sobfefl case as follows :
"As a working principle it may be stated that an activity systematically or
habitually undertaken for the production or distribution of goods or for the rendering
of material services to the community at large or a part of such community- with, the

help of employees is an undertaking. Such an activity generally involves the co-

operation of the employer and the employees; and its object is the satisfaction of
material human needs. It must be organized an arranged in a manner in which trade or
business is generally organized or arranged. It must not be casual, nor must it be for
one's self nor for pleasure. Thus the manner in which the activity in question is
organized or arranged, the condition of the co-operation between the employer and
the employee necessary for its success and its object to render material service to the
community can be regarded as some of the features which are distinctive of activities
to which Section 2(j) applies."
In Bangalore Water Supply v. A. Rajappa, a seven Judges' Bench of the
Supreme Court exhaustively considered the scope of industry and laid down the
following test which has practically reiterated the test laid down in Hospital Mazdoor
Sabha case.
Triple Test:
Where there is (i), systematic activity, (ii) organised by cooperation between
employer and employee (the direct and substantial element is chimerical), (iii) for the
production and/or distribution of goods and services calculated to satisfy human
wants and wishes, prima facie, there is an "industry" in that enterprise. This is known
as tripple test. The following points were also emphasized in this case:
1. Industry does not include spiritual or religious services or services geared to
celestial bliss, e.g., making, on a large scale, prasad or food. It includes
material services and things.
2. Absence of profit motive or gainful objective is irrelevant, be the venture in
the public, joint, private or other sector.
3. The true focus is functional and the decisive test is the nature of the activity
with special emphasis on the employer-employee relations.
4. If the organization is a trade or business-it does not cease to be one because of
philanthropy animating the undertaking.
Therefore the consequences of the decision in this case are that professions,
clubs, educational institutions co-operatives, research institutes, charitable projects
and other kindred adventures, if they fulfill the triple test stated above cannot be
exempted from the scope of Section 2(j) of the Act.
Dominant nature test:
Where a complex of activities, some of which qualify for exemption, others
not, involve employees on the total undertaking some of whom are not workmen or
some departments are not productive of goods and services if isolated, even then the
predominant nature of the services and the integrated nature of the departments will
be true test, the whole undertaking will be "industry" although those who are not
workmen by definition may not benefit by status.

Amended definition of ‘industry’ under the Industrial Disputes (Amendment)

Act, 1982: “Industry” means any systematic activity carried on by co-operation
between an employer and his workmen (Whether such workmen are employed by
such employer directly or by or through any agency, including a contractor) for the
production, supply or distribution of goods or services with a view to satisfy human
wants or wishes (not being wants or wishes which are merely spiritual or religious in
nature), whether or not:
i. any capital has been invested for the purpose of carrying on such activity; or
ii. such activity is carried on with a motive to make any gain or profit, and
includes:
(a) any activity of the Dock Labour Board established under Section 5A of the
Dock Workers (Regulations of Employment) Act, 1948, (9 of 1948);
(b) Any activity relating to the promotion of sales or business or both carried on
by an establishment, but does not include:
1. Any agricultural operation except where such agricultural operation is carried
on in an integrated manner with any other activity (being any such activity as
is referred to in the foregoing provisions of this clause) and such other activity
is the predominant one. Explanation: For the purpose of this sub-clause,
“agricultural operation” does not include any activity carried on in a plantation
as defined in clause (f) of Section 2 of the Plantations Labour Act, 1951; or
2. hospitals or dispensaries; or
3. educational, scientific, research to training institutions; or
4. institutions owned or managed by organisations wholly or substantially
engaged in any charitable, social or philanthropic service; or
5. khadi or village industries; or
6. any activity of the Government relatable to the sovereign functions of the
Government including all the activities carried on by the departments of the
Central Government dealing with defence research atomic energy and space;
or
7. any domestic service; or
8. any activity, being a profession practised by an individual or body of
individuals, if the number of persons employed by the individuals or body of
individuals in relation to such profession is less than ten; or
9. any activity, being an activity carried on by a co-operative society or a club or
any other like body of individuals, if the number of persons employed by the co-operative
society, club or other like body of individuals in relation to such activity is less than ten.
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Q4.
Q. 4 Explain the Scheme of Industrial Employment (Standing Orders) Act 1946 and
Workmen’s Compensation Act, 1923
Answer:
THE INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946
The Industrial Employment (Standing Orders) Act, 1946 was enacted to
require employers in industrial establishments to define with sufficient precision the
conditions of employment under them, and to make the said conditions known to
workmen employed by them. The Act not only requires the employers to lay down
conditions of service but also requires that the conditions of service must be clearly
laid down so that there may not be any confusion or uncertainty in the minds of the
workmen, who are required to work in accordance therewith.
Application of the Act:
This Act may be called the Industrial Employment (Standing Orders) Act,
1946. It extends to the whole of India. It applies to every industrial establishment
wherein one hundred or more workmen are employed, or were employed on any day
of the preceding twelve months:
Provided that the appropriate Government may, after giving not less than two
months’ notice of its intention so to do, by notification in the Official Gazette, apply
the provisions of this Act to any industrial establishment employing such number of
persons less than one hundred as may be specified in the notification.
Nothing in this Act shall apply to
a) any industry to which the provisions of Chapter VII of the Bombay Industrial
Relations Act, 1946 (Bombay Act 11 of 1947) apply; or
b) any industrial establishment to which the provisions of the Madhya Pradesh
Industrial Employment (Standing Orders) Act, 1961 (Madhya Pradesh Act 26
of 1961) apply:
Provided that notwithstanding anything contained in the Madhya Pradesh
Industrial Employment (Standing Orders) Act, 1961 (Madhya Pradesh Act 26 of
1961), the provisions of this Act shall apply to all industrial establishments under the
control of the Central Government.
Objective of the Standing Order:
There was no uniformity in the conditions of service of workers until this act
was brought, which led to friction between workers and Management. An Industrial
worker has the right to know the Terms & condition which he is expected to follow.
The Industrial Employment (Standing Orders) Act, 1946, which, inter alia, requires

the employer to define and publish uniform conditions of employment. This is more
than the HR Policy / code of conduct / handbook, of an organization. It is basically a
terms on employment – Entry & Exit to the premises, Hours of work, Rates of wages,
Shift schedules, Leave and Attendance, Misconduct provisions, process of termination
or separation, etc.
Provisions of Standing Order regulates the conditions of employment,
grievances, misconduct etc. of the workers employed in industrial undertakings.
Unsolved grievances may become industrial disputes.
If the classification of employees – Temporary, Casual, Permanent, Badli,
Probationary etc, can be mentioned in the draft with conditions, then it will not cause
any challenges to the establishment while appointing such types of employees.
The employer of every industrial establishment is required to submit to the
Certifying Officer, draft standing orders proposed by him for adoption in his
industrial establishment for certification under Section 3 of the Act. The Certifying
Officer is empowered to modify or add to the draft as is necessary to render the draft
standing orders certifiable under the Act. It is important to note that, draft standing
orders submitted to the Certifying Officer are to be accompanied by a statement
giving prescribed particulars of the workmen employed in the industrial establishment
including the name of the trade union, if any, to which the workmen belong
As per the provisions of the Act, the Appropriate Government is to set out
model standing orders. The draft standing orders framed by an employer should as far
as practicable be in conformity with model standing orders. Any industrial
establishment can accept the model standing orders; the model standing orders are
temporarily applicable to an industrial establishment which comes under the
provisions of the Act and whose standing orders are not finally certified.
An employer who fails to submit draft standing orders or an employer who
does any act in contravention of the standing orders finally certified under the
provisions of the Act shall be punished with fine as specified in Section 13 of the Act.

Definition of Standing Order: Sec 2 (g)

The Industrial Employment Act, 1946 defines the meaning of ‘Standing
Orders’ in section 2 (g). These are the rules which relate to the matters explained in
the Schedule. Under this section, the employer has to make a draft of standing orders
for submission to the certifying officers regarding the matters prescribed in the
Schedule.
According to the Schedule annexed to the ISO, the following matters should
be provided for in the standing orders of an industrial establishment:
1. Classification of workmen e.g. whether permanent, temporary, apprentices,
probationers, or badlis.
2. Manner of intimating to workmen periods and hours of work, holidays, pay-
days and wage rates.
3. Shift working.
4. Attendance and late coming.
5. Conditions of, procedure in applying for, and the authority which may grant
leave and holidays.
6. Requirement to enter premises by certain gates, and liability to search.
7. Closing and reporting of sections of the industrial establishment, temporary
stoppages of work and the rights and liabilities of the employer and workmen
arising there from.
8. Termination of employment, and the notice to be given by employer and
workmen.
9. Suspension or dismissal for misconduct, and acts or omissions which
constitute misconduct.
10. Means of redress for workmen against unfair treatment or wrongful exactions
by the employer or his agents or servants.
11. Any other matter which may be prescribed.
Definition of Employer: Sec 2(d)
“Employer” means the owner of an industrial establishment to which this Act

for the time being applies, and includes-

i. in a factory, any person named under clause (f) of sub-section (1) of Section 7
of the Factories Act,1948, as manager of the factory;
ii. in any industrial establishment under the control of any department of any
Government in India, the authority appointed by such Government in this
behalf, or where no authority is so appointed, the head of the department;
iii. in any other industrial establishment, any person responsible to the owner for
the supervision and control of the industrial establishment;
Definition of Industrial establishment: Sec 2(e)
“Industrial establishment” means
i. an industrial establishment as defined in clause (ii) of Section 2 of the
Payment of Wages Act, 1936, or
ii. a factory as defined in clause (m) of Section 2 of the Factories Act,
1948, or
iii. a railway as defined in clause (4) of Section 2 of the Indian Railway
Act, 1890, or
iv. the establishment of a person who, for the purpose of fulfilling a
contract with the owner of any industrial establishment, employs
workmen;
Definition of Workman: Sec 2(i)
“The expression as used in this Act is the same as is used in Section 2 (s) of
the Industrial Disputes Act, and includes any person including an apprentice
employed in any industry to do any skilled or unskilled, manual, supervisory,
technical, operational or clerical work for hire or reward whether the terms of
employment are expressed or implied and includes any person who has been
dismissed, discharged or retrenched in connection with an industrial dispute or where
dismissal, discharge or retrenchment has led to the dispute, but doesn’t include any
such person:
(i) Who is subject to the Army Act, 1950 or the Air Force Act, 1950 or
the Navy Act, or
(ii) Who is employed in the Police Service or as an officer of prison or
(iii) Who is employed mainly in a managerial or administrative capacity or
(iv) Who being employed in supervisory capacity, draws wages exceeding
1100 rupees per mensem.

Certifying Officer: Sec 2 (c)

“Certifying Officer” means a Labour Commissioner or a Regional Labour
Commissioner, and includes any other officer appointed by the appropriate

Government, by notification in the Official Gazette, to perform all or any of the

functions of a Certifying Officer under this Act.
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Q5.
Q. 5 What are the Objects of MRTU & PULP Act, 1971
Answer:
MRTU and PULP Act, 1971
Maharashtra Recognition of trade unions and prevention of unfair labor laws practices act
1971 sanctioned by the government of India for regulations of industries in the country to
attain the goal of empathetic between employee and employer. This act figures on the
incidence of the strike, lockout, illegally declared, economizing, terminating a workman.
Under such circumstances, Industrial act can be closely related and several other problems
between employee and employer. In such unwanted issues of industry, the industrial act,
MRTU and PULP Act 1971 against ULPs are provided.

What is Unfair labor laws?

Labour laws protect the rights of employees. The primary function of labor laws to deliver
employee safe working place, mental peace, and physical safety.

mrtu and pulp act:

Unfair labor laws consider when actions taken by employers disrupt National Labour
Relations Act of 1935, section 8. NLRA investigate such acts to give employees to improve
their surroundings with their employers by developing union. NLRA also establishes the
rules for union elections, collective bargaining and more. They also prohibit employers to do
interfere in employee rights to create equilibrium between both union and employers. Such
actions are known as unfair labor laws practices.

Definitions of MRTU & PULP Act

Some important terms under section 3 of the MRTU & PULP Act 1971

Bombay Act
A Bombay act states to Bombay industrial relates act, 1946 (section 3, Clause 1)

Central Act
Central act mentions to industrial disputes act, 1947 (section 3, Clause 2)
Employee
An employee refers as a workman to industry (section 3, clause 5)

Employer
An employer states relation to industry ad employee (section 3, clause 14)

Labour Court
A labour court establishes in section 6 (section3, clause 10)

Objectives of MRTU & PULP Act 1971

To offer rights of trade unions
To abolish industrial disputes
To prevention against certain ULPs
To provide announcing of lock-outs and strikes
To provide powers to unrecognized unions
To provide a safeguard to unions
To consensus recognition to trade unions
To enforce this act
In which conditions MRTU & PULP Act 1971 passed?
To resolve industrial disputes India took initiative for passing that law which fashions
equilibrium between employee and employers to improve industrial growth. The
government of Maharashtra made a strong report and led the following circumstances.

They believed strong development befall if autonomous and responsible unions in order and
atmosphere free from coherent labour practices. There was no operative legalization to
provide gratitude to unions apart from the industrial action, 1946 which was applied to a
few companies. Therefore, in 1968, the government of Maharashtra allotted a tripartite
committee underneath the chairmanship of a president of the industrial court to describing
the relationship of the employee with employers in industries, this takes as unfair labour
practices. After that, the committee has submitted a report to the state. The state their
points and after a long struggle their hard work became successful and this generates major
changes in industrial relations.
During this period, the committee noticed, the designated system has not been accepted
legally, a Bombay industrial act. The Unfair labour practices have not been collected with
bargainings. The committee has collected all the information which activities an employee
should need in the industry. The task was difficult to prepare a list of unfair labour practices.
They have gathered information from Tribunals and courts, which clearly depicts the image
of unfair labour. They covered a large set of information in one place and felt workable
metaphors of the expressions is essential.
After taking this report in deliberation, they decided to generate strong law for unfair labour
practices to expedite unions from uncertain unfair practices. The Government of
Maharashtra also gave importance to produce sovereign machinery to form dual actions
recognition and enforcing provisions of the union. Hence, the state passed the MRTU and
PULP Act 1 February 1971. This applies to all industries of Bombay for both employee and
employer in 1972.

Is MRTU and PULP Act proved beneficial for business growth?

The main reason for introducing this act is to generate a balance between relations of
unions and employers in the industry. The industrial disputes are drawn-out, political and
even administrative. After a great struggle, this law got the legal address.

Before the MRTU and PULP Act 1971, the industrial disputes were large and takes a long
time to resolve. This simply affects the growth of industries. But after this act, the cases
become less and industrial disputes diminish, hence business growth elevated.
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