Labour Law and Industrial Relations - I

Sub- LABOUR LAW & IR-I, SEM -1, Mumbai University New Syllabus – 2022-2023, Marks -75
LABOUR LAW AND INDUSTRIAL RELATIONS- I

MODULE 1:
THE TRADE UNIONS ACT, 1926
1.1 Evolution and growth of Trade Union in India.
1.2 International Labor Organization (ILO) – its influence in bringing changes in the Constitution and
national legislation.
1.3 Definition, Registration and Recognition.
1.4 Immunities in trade disputes: Criminal and Civil.
1.5 Collective Bargaining – Purpose and its types.
1.6 Collective Bargaining Process, Advantages and Disadvantages.
1.1 Evolution and growth of Trade Union in India.
Introduction
The labour movement was the principal force that transformed misery and despair into hope and
progress. Out of its bold struggles, economic and social reform gave birth to unemployment insurance,
old-age pensions, government relief for the destitute and, above all, new wage levels that meant not mere
survival but a tolerable life. The captains of industry did not lead this transformation; they resisted it
until they were overcome. When in the thirties the wave of union organization crested over the nation, it
carried to secure shores not only itself but the whole society.
Trade Unions, in general, emerged as a result of the Industrial Revolution which can be traced back
to the 18th century when the Industrial Revolution began in Britain. The Industrial Revolution is
characterized by the setting up of large-scale factories, new lines of mass production, mechanization and
rapid economic development. It is natural that when a large number of factories are set, there is a need
for labour. Hence, the demand for unskilled and skilled labour grew. At the time the industries were not
properly organized and the employers concentrated on maximizing profits which led to exploitation of
the labour class who were uneducated and poor. In other words, it led to the formation of two classes in
the industrial sector:
• Employer Class – Who were profit-oriented and did not really bother about the working
conditions of the labour.
• Labour Class – Who were uneducated and had no knowledge of their rights and were also in need
of money.
Initially, the labourers felt that their need for money is greater and that their employers can easily
replace them if they protested to the exploitative terms and wages imposed by their employers.
But slowly the labour class realized that if one individual labour protests against the exploitative
terms of his employee, it will not have any impact on the industrial organization but if laborers form
themselves into a group or “Union” then more impact will be exerted on their employer lords. Forming
labourers into Unions also gave them the power to collectively bargain for themselves. Therefore, this
thought led to the formation of Trade Unions.
The observation of the 26th President of the United States is noteworthy to note here which goes
as – “It is essential that there should be an organization of labour. This is an era of organization. Capital
organizes and therefore labour must organize.” – Theodore Roosevelt
Trade Unionism in India

The British started colonizing the Indian sub-continent in the 1600s and started to set up factories
and mills in India just like the Industrial Revolution in Britain. The main reason why the British found it
apt to start industrialization in India was that India had an abundance of cheap and poor labour along
with natural resources and land for setting up the industries.
The cotton mill was established in 1851 in Bombay and first jute mill was established in 1855 in
Bengal. Just like in Britain, the condition of labour in India was worse. The exploitative and pitiable
working terms such as working hours, wages and expelling policies made the labours join hands and
Page 1 of 94
unite and protest. One of the first unrest among labourers can be dated back to the year 1877 when due
to sudden reduction in wages the labourers of Empress Mill, Nagpur organized a strike.
Since such unionism was a new phenomenon there existed no law to legalize and regulate these
new labour unions. With growing discontent and unrest among the labour class and constant tiff with the
employer class, few steps were taken to inquire and resolve the situation.
Factories Commission, 1875 – Factories Commission, 1875 was the first commission set up which
properly inquired into the conditions of the factories and came to the conclusion that some kind of legal
limit was necessary and the Factories Act, 1881 was passed.
Factories Commission, 1885 – The Second Commission was set up in 1885 and on the basis of the
inquiry and second Factories Act in 1891 was passed.
Royal Commission on Labor, 1892 – The Commission led to imposing of limitations on working
hours in factories.
Factories Commissions and Factories legislations caused no improvement in the working
conditions of the labour class in India. In 1885 all workers of India had also signed a memorandum with
their employers to provide them with basic minimum working conditions. However, the situation did not
improve.
The initial approach by labourers was humanistic in nature under the background of the setting
up of Indian National Congress and non-violence movement initiated by Mahatma Gandhi.
Post World War I period

When World War I broke out there was the sudden diversion of all resources to cater to war
needs and the employers were dependent on the labourers. It then the labourers realized that the
employers need them as much as they need their employers. This gave them a “bargaining position”.
Trade unions started to get formed in India but the process was slow due to the leadership of
socialist reformers. Yet many Trade unions started to get formulated. The first major trade union formed
was the Madras Labour Union in 1918 under the president ship of Mr B.P. Wadia. This was followed by
the formation of the All India Trade Union Congress in 1920.
With the formation of Trade Unions, the labourers started to organize strikes and protests to
assert their demands such as lowering of working hours, minimum basic wages,
The Buckingham Mill Case

The formation of Trade Unions and the organization of strikes and protests by the labourers were
not welcomed by the employers. To put an end to the activities of the newly formed trade unions and
further to bar formation of Trade Unions the employers sought legal recourse.
One of the most important cases filed was against Mr B.P. Wadia who was the President of the
Madras Labour Union that he conspired with workers and went on strike and was restraining trade. The
Employers prayed for an injunction to stay the protests and activities done by the Trade Union.
Contentions raised by the Employers:
1. The strike is illegal because it amounts to a restraint of trade under Section 27 of the Indian
Contract Act.
2. The strike constituted criminal conspiracy under section 120A of the Indian Penal Code 1860.
3. The strike also constituted civil conspiracy under civil law.
The Hon’ble Madras High Court granted the injunction to stay the strike on three grounds:
1. There was a valid cause of action in favour of employers.
2. There was a breach of law by the labourers.
3. There were losses suffered by the employers due to the actions of the trade union.
It is to be noted here that until this time there was no legislation which gave legal force/backing to trade
unions. The Order of the Madras High Court was further blown to the truth that there was no law that
legalized trade unionism in India.
Page 2 of 94
The growing need to have pro-labour legislation led to the passing of the Indian Trade Union Act
1926. The word “India” was later dropped and the legislation named Trade Union Act, 1926 came into
force.
The Preamble of the “An Act to provide for the registration of Trade Unions and in certain
respects to define the law relating to registered Trade Unions”.
Post World War I the cost of living increased and there was growing agitation against colonial
rule. With the passing of the Trade Union Act emergence of “military trade unionism” was witnessed with
a lot of strikes and protests by the Trade Unions. India also joined the International Labour Organization
as a founding member.
Period Post 1947

One major lacuna with the 1926 Act was that though it provided for voluntary registration of
Trade Unions it did not provide for compulsory recognition of the Trade Unions by the employers and
because it was not compulsory for the employers to recognize the Trade Unions, obviously did not
recognize them. This again put a halt to the development of Trade unions.
For example, whenever the members of Trade Unions or their lawyers went to negotiate with the
employers, the employers simply refused to talk to them on the ground that they do not recognize such
Trade union, though it is registered!
The Act was amended in 1947 which provided for compulsory recognition by the employers of
the representative Unions. However, the amended act has not been brought to force yet.
Trade Unionism in India from 1950 to 1970
Independence of India was beneficial to Trade Unions in India in a huge way as the forefathers
adopted the principles of equality for all, justice and freedom including the freedom of expression. The
Constitution of India also recognized Freedom of Association as a Fundamental Right.
Planning was also adopted by India by the way of Five- year plans. The focus of the first two five-
year plans was on industry and agriculture which led to setting up of large public sector industries. With
the setting up of industries, the need for labour grew and trade unionism became active.
However, the trade unions saw their own troubles. Due to a lack in organization and proper
leadership there was inter-union tensions and conflicts which was coupled with political interventions.
The State took a paternalistic approach whereby it stated dictating the unions. Hence, during this period
strikes and protests were low as compared to the coming years.

From the mid of 1960, the economic situation of India had started to deteriorate mainly because
of famines and wars witnessed by India in its preceding years. The rate of inflation rose and prices of
food and grains soared. Industries were also affected by the structural changes in the economy. There
were more protests, strikes and lockouts organized by the trade unions during this period.
Nationwide Emergency imposed during PM Indira Gandhi’s regime from 1975 to 1977 suspended all the
Fundamental Rights including the right to form associations and right to strike.
Post-Emergency the government had attempted to bring into force an industrial relations bill which
aimed at banning strikes and lockouts in essential industries and services. However, the bill was met
with strong opposition from different participants, specifically the trade unions. As a result, the bill was
not passed.
The trade unions had achieved a domineering stance by this time. They had aced in their
bargaining powers and had become more organized and were able to meet their requirements by
negotiations and strikes.

In 1991 the Government decided to open the economy by introducing the “New Economic Policy”
(NEP). With pressures of liberalization, privatization and globalization cracks and splits were also seen in
Page 3 of 94
Trade Unions in India because the Government’s labour-friendly approach changed to be more investor-
friendly. Due to globalization, there was massive cutting in the workforce and trade unions were trying
hard to save labourers jobs. With the advent of liberalization in 1991, the industrial relations policy
began to change. Now, the policy was tilted towards employers. Employers opted for workforce
reduction, introduced policies of voluntary retirement schemes and flexibility in the workplace also
increased. The age-old policy of protectionism proved inadequate for the Indian industry to remain
competitive as the lack of flexibility posed a serious threat to manufacturers because they had to
compete in the international market. Thus, globalization brought major changes in industrial relations
policy in India. The main characteristics of trade unionism after globalization became the small size of
membership, lack of adequate finance, non-fulfillment of welfare schemes, control of political parties and
other outside interference in the activities of trade unions.
Trade Unionism in the 21st Century

With difficulties faced by NEP, the trade unions had to face a barrage of problems but the silver
lining is the growth in the number of trade unions, better organization and functioning. As per data of
Labour Bureau, there are around 11,556 registered labour unions in India with average membership at
1283 members per union.
In 2001 the Act was amended. Major additions and amendments to the act are the following,
• Amendment to Section 4.: The proviso to Section 4, added after the 2001 amendment, now
prescribes minimum number workers who should be part of the Trade Union at the time of
making the application for registration. The proviso reads as,
“Provided that no Trade Union of workmen shall be registered unless at least ten per cent of one hundred
of the workmen, whichever is less, engaged or employed in the establishment or industry with which it is
connected are the members of such Trade Union on the date of making of an application for registration:
Provided further that no Trade Union of workmen shall be registered unless it has on the date of making
application not less than seven persons as its members, who are workmen engaged or employed in the
establishment or industry with which it is connected.”
• Insertion of Section 9A: Minimum membership requirement was established by inserting Section
9A to the Act. The new Section 9A reads as,
“9A. The minimum requirement about membership of a Trade Union.-A registered Trade Union of
workmen shall at all times continue to have not less than ten per cent or one hundred of the workmen,
whichever is less, subject to a minimum of seven, engaged or employed in an establishment or industry
with which it is connected, as its members.”
Proposed amendments
The Ministry of Labour and Employment has been deliberating on inserting a provision for
recognition of trade unions at the central and state level. Contemplation to incorporate such an amend
has come in the wake of numerous representations by trade unions. Hence, on 20th July 2018, the
Ministry has published a notification in the official gazette proposing the amendment and has invited
comments from the stakeholders and participants on the draft amendment.
If passed, a new Section 28A and Sub-section (2A) to Section 29 (2) will be inserted which will
provide for compulsory recognition of Trade unions at both federal levels.
Conclusion
Trade Unionism in India has come a long way. Initially from having no legal backing to illegalizing
“strikes” by the unions to granting them registration procedure and compulsory recognition and now
having full-fledged legislations and special courts, trade unions in India have attained remarkable
status/standing in the labour movement. However, there are still few impediments that the trade unions
face such as lack of financial resources and governmental support. Hence, there is still scope for the
development of Trade Unionism in India.
Page 4 of 94
1.2 International Labor Organization (ILO) – its influence in bringing changes in the Constitution
and national legislation.
Introduction
The International Labour Organization (ILO) was founded in 1919, following World War-I as a
social engineering project that sought to safeguard the rights of workers and ensure that freedom, equity,
and dignity in conditions of work are observed universally. It is the first and oldest specialised agency of
the UN and was originally founded as a part of the League of Nations. Currently, 187 of the 193 member
states of the United Nations are members of the ILO.
A fundamental aspect of the ILO’s functioning is the emphasis placed on tripartism, which aims to
ensure that any dialogue involves the three main stakeholders when it comes to labour-related matters,
namely employers, workers and States. The International Labour Organization(ILO) accomplishes its
objectives through three main bodies that are comprised of the aforementioned stakeholders, these
bodies are as follows:
• International Labour Conference: It is an annual meeting of governments’, workers’ and
employer’s delegates of the ILO member States. The objective of the conference is to discuss the
broad policies of the organisation, establish and adopt international labour standards and elect
the governing body.
• Governing Body: It is the executive body of the ILO and is responsible for making policy
decisions, setting the agenda for the International Labour Conference, adopting a budget, and
electing the Director-General. It is composed of 56 titular members of which 28 are held by
governments and 14 each are held by employers and workers respectively. Ten of the titular
government seats are non-elected, permanent seats held by States that have foremost industrial
importance, India is one of these nations.
• International Labour Office: It is the permanent secretariat of the International Labour
Organization and is responsible for the administration of the organization and implementing
technical cooperation activities in addition to awareness, advocacy and information-sharing
programmes.
An Overview of Key Documents
Before analyzing the major conventions under the framework of International Labour Law, we must
examine the Declaration on Fundamental Principles and Rights at Work, 1998. The Declaration divides
fundamental principles and rights into four categories, those being freedom of association and the
effective recognition of right to collective bargaining, the elimination of forced or compulsory labour, the
abolition of child labour and the elimination of discrimination in respect of employment and occupation.
The core conventions of the ILO can be classified under these categories that are considered universal
rights that apply to all individuals in every State.
While the international labour standards are periodically revised with new Conventions, Protocols or
Recommendations being formulated, the ILO Governing Body has listed eight conventions it considers
fundamental in terms of the subjects that they deal with, these are as follows:-
1. Freedom of Association & Protection of the Right to Organize Convention, 1948 : Crystallized
the most fundamental labour rights such as the right of workers to establish and join
organizations of their choosing without their employer’s approval, the right of workers’ and
employers’ organizations to draw up their own constitutions and rules, the right of workers’ and
employers’ organizations to establish and join federations. It imposes a duty on Members of the
ILO to ensure that workers and employers may exercise the right to organize freely, without any
undue interference from administrative authorities.
2. Right to Organize and Collective Bargaining Convention, 1949 : This document aims to protect
workers and workers’ organizations from anti-union discrimination with respect to their
employment. For example, imposing non-membership of Unions as a precondition to
employment. It aims to promote voluntary negotiation between employers or employers’
organizations and workers’ organizations and calls for the creation of machinery for facilitating
the same.
Page 5 of 94
3. Forced Labour Convention, 1930 and its 2014 Protocol : This document is one of the primary
international instruments that can be credited with the reduction in forced/compulsory labour
worldwide. It penalizes exaction of forced labour and imposes an obligation on ratifying States to
ensure that the same are strictly enforced. Ratifying States are also required to ensure that
coverage and enforcement of legislations pertaining to forced labour are applicable to all workers
irrespective of nature of work and sector of economy. This includes taking all measures necessary
to eliminate all forms of forced labour as well as identification and rehabilitation of all victims of
such labour.
4. Abolition of Forced Labour Convention, 1957 : This Convention extends the general prohibition
provided for in the above document by prohibiting use of forced labour as a means of political
coercion, education, punishment, mobilizing labour for economic development, labour discipline,
as punishment for participation in strikes and as a means of racial, social, national or religious
discrimination.
5. Minimum Age Convention, 1973 : This document imposes an obligation on ratifying States to
pursue a national policy that aims to ensure that child labour is effectively abolished. It also
requires States to raise the minimum age for employment/work to a level that is in consonance
with the physical and mental development of young persons. To this end ratifying States are
required to submit a declaration that states the minimum age to be eligible for work which cannot
be less than 15 years in any case. An exception is made for States whose economies are
insufficiently developed to specify a minimum age of 14 years.
6. Worst Forms of Child Labour Convention, 1999 : For the purposes of this Convention, the
term ‘child’ applies to all persons under the age of 18. Each member that ratifies this convention is
required to take immediate measures to eradicate the worst forms of child labour. This term
denotes practices like slavery, trafficking, serfdom, use of child soldiers etc. Member States are
required to implement programmes in consultation with employers’ and workers’ organizations
to do the same.
7. Equal Remuneration Convention, 1951 : This convention requires ratifying States to promote
the application of the equal remuneration principle for work of equal value. This means the rates
of remuneration for similar work are established without discrimination based on sex.
8. Discrimination (Employment & Occupation) Convention, 1958 : This convention focuses on
discrimination that is based on race, color, sex, religion, political opinion, national extraction, or
social origin. It includes other distinctions that have the effect of nullifying or impairing equality of
opportunity. Ratifying states are required to prevent such discrimination through legislation,
educational programmes and cooperation between employers’ and workers’ organisations.
The governing body has also designated four other conventions as priority instruments based on their
importance from an international governance perspective. This is because they are essential in the
operation of the international labour standards system. The governance/priority conventions are as
follows:
1. Labour Inspection Convention, 1947 : This document imposes an obligation on members of the
ILO to ensure that a system of labour inspection in industrial workplaces is maintained under the
supervision and control of a central authority to the extent that the same is feasible. It contains
provisions that outline the functions, qualifications and strength of labour inspectors that must be
maintained and contains a chapter on labour inspection in commerce as well.
2. Employment Policy Convention, 1964 : This document aims to ensure that member states pursue
an active policy goal of free and full employment for all its citizens. It outlines the major
components of such a policy and states that the same must be in consonance with the individual
conditions (pertaining to stage and level of economic development) prevailing in a member state.
3. Labour Inspection (Agriculture) Convention, 1969 : This document is similar to the first one in
this list but differs in terms of its subject matter. It aims to impose an obligation on ratifying States
to refrain from excluding agricultural undertakings from the national system of labour inspection.
Page 6 of 94
It defines agricultural undertakings and outlines the functions of the system that specifically cater
to such establishments.
4. Tripartite Consultation (International Labour Standards) Convention, 1976 : This document
defines representative organisations in the context of labour and imposes an obligation on
ratifying States to undertake procedures that allow for effective consultations with respect to
matters being dealt with by the ILO. These include government replies to questionnaires,
proposals to be made to the competent authority in connection with
Conventions/Recommendations, re-examination of unratified Conventions, questions arising out
of reports made to the International Labour Office and proposals for denunciation of ratified
Conventions.
5. Thus we can see that from an international perspective India is effectively implementing only two
of the four rights enshrined in the DFPR, those being Freedom from Discrimination and Protection
Against Forced Labour. There are numerous judgements which show conformity with
international standards and recognise these fundamental human rights, and even statutory
enactments which implement the same. The question that now arises is: Why hasn’t India ratified
the remaining core conventions?
6. The answer to this can be found by analysing the implications that ratification entails and
juxtaposing this with current socio-economic conditions in the country. This is
because ratification incurs legal obligation and requires implementation. This means that once a
treaty has been ratified, a state incurs an immediate legal obligation at the international level.
This is illustrated by the distinction between being a mere signatory of a treaty/convention and
subsequent ratification. Being a signatory of a treaty usually indicates that a state intends to
become a party to a treaty at some future date. Until ratification at that future date, a state is
required to do nothing which would obstruct the objects and purposes of the treaty/convention,
there is no legal obligation on the state. In contrast, once a state has ratified a treaty, it must
conform to all the obligations set down in a treaty and it cannot generally avoid them unless there
are exceptions provided therein. However, a state cannot cite the failure of concurrence between
international and domestic law on an issue as an excuse for the above.
Relevance of International Law
7. After reading the preceding section that explains ratification and the voluntary nature of
international obligations, one might wonder why International Labour Law is relevant and
moreover what bearing it has on domestic labour law and policy. The two questions are linked
to each other and the answer to the same can be seen from two differing perspectives. One point
of view sees ILO policies and standards as preferences that nations can adopt through regulatory
decisions that ultimately provide them with competitive advantages in global trade. This is
because international conventions provide a universal basis for policy and thus prevent nations
from implementing measures such as deregulation with the intention of gaining trade advantages.
Such measures would be met with international disapproval, sanctions as well as trade isolation
and thus positive morality operates to give these instruments relevance.
8. The other approach views ILO conventions as norm prescribing documents that allow States to
assess their policies with respect to its peer States. This means that States can compare their
policies to both internationally accepted standards as well as the policies adopted by States that
are similarly placed from a socio-economic perspective. Therefore, they can analyse the need for
reform and amendment by finding policy preferences that fall midway between the two
aforementioned points of reference.
1.3 Definition, Registration and Recognition.

After the flare-up of World War 1, the work associations showed up as present day worker's
organizations. Accordingly, as their numbers expanded, participation extended and they became dynamic
in looking to advance and protect the interests of laborers, they needed to confront the open threats of
Page 7 of 94
the businesses and the public specialists. In the year 1921, the nearby governments are mentioned to
discover the perspective on open bodies and private people on certain associated issues like the
standards of proposed enactment, acknowledgment of strikes, insurance of worker's guilds from
common and criminal liabilities, the executives of associations and others.
In the wake of getting the perspectives on the neighborhood governments, the public authority of
India drew up a bill in 1925. The Bill was spent the following year as the Indian Trade Union Act, 1926.
The Act with ensuing changes is as yet in power in the country. The object of Trade Unions Act, 1926 is to
accommodate enlistment of Trade associations and to characterize law identifying with enrolled
worker's organizations in specific angles. This Act stretches out to the entire of India.
What is a Trade Union? Meaning and Definition

A Trade Union is an intentional association of the laborers in a particular industry or occupation. Article
19(1)(c) of the Constitution of India ensures opportunity of relationship as a central right and gives the
laborers, right to consolidate and put together for aggregate activity or deal. Nonetheless, a right isn't
accessible for a specific class of occupations. It is because of the sensible limitation which can be forced
by the Government according to the arrangements of the Constitution of India.
As per G.D.H. Cole:

A worker's organization implies a relationship of laborers in at least one calling an affiliation is continued
for the most part to secure and propelling the individuals' monetary interest regarding their everyday
work.
As indicated by S.D. Punekar:

A worker's guild is a ceaseless relationship of people in the business whether boss or free specialists
framed fundamentally with the end goal of the quest for the interests of its individuals from the exchange
they address.
As indicated by Dale Yoder:
A worker's organization as a proceeding with long haul relationship of representatives, shaped and kept
up with for the particular motivation behind progressing and securing the interest of the individuals in
their functioning relationship.
Section 2(h) of the Trade Unions Act, 1926 characterizes Trade Union as "any mix whether brief or
extremely durable, framed basically.
“Trade Union” means any combination, whether temporary or permanent, formed primarily for the
purpose of regulating the relations between workmen and employers or between workmen and
workmen, or between employers and employers, or for imposing restrictive conditions on the conduct of
any trade or business, and includes any federation of two or more Trade Unions: Provided that this Act
shall not affect—
(i) any agreement between partners as to their own business;
(ii) any agreement between an employer and those employed by him as to such employment; or
(iii) any agreement in consideration of the sale of the goodwill of a business or of instruction in any
profession, trade or handicraft.
Important elements of Trade Union:
• There must be combination of workmen and employers;
• There must be trade or business; and
• The main object of the Union must be to regulate relations of employers and employees or to
impose restrictive conditions on the conduct of any trade or business.
Page 8 of 94
Objective and Scheme of Trade Union Act, 1926:

• To work on the monetary parcel of laborers by getting they better wages.
• To get for laborers better working conditions.
• To get reward for the specialists from the benefits of the undertaking/association.
• To guarantee stable work for laborers and oppose the plans of the board which lessen business
openings.
• To give lawful help to laborers regarding debates with respect to work and installment of wages.
• To secure the positions of work against conservation and cutback and so on
• To guarantee that laborers get according to rules fortunate asset, annuity and different
advantages.
• To get for the laborer's better wellbeing and wellbeing government assistance plans.
• To get laborers interest in administration.
• To instill discipline, self-esteem and pride among laborers
• To guarantee openings for advancement and preparing.
• To get hierarchical effectiveness and high usefulness.
• To create a serious modern work power for further developing efficiency of the framework
Registration of Trade Union

The enrollment of a worker's organization isn't obligatory, however it is prudent to enlist the
worker's guilds as the enrolled worker's organizations are qualified for get a few advantages, resistances
and insurance under the demonstration. There are explicit rights and advantages presented on the
individuals from the enlisted worker's organizations. The individuals from the enrolled worker's
organizations are qualified for get insurance, invulnerability and certain exemptions from some
respectful and criminal liabilities.
A worker's guild must be enrolled under the Trade Unions Act, 1926, and can't be enlisted under
some other demonstration including the Societies Registration Act or the Co-employable Societies Act or
the Indian Companies Act.
A Civil Servants' Union can't be enrolled under the Trade Unions Act, 1926. On account
of Tamilnadu N.G.O's Union versus The Registrar of Trade Unions (AIR 1962), the Madras High Court
excused the allure on the ground that, to get the worker's guild enlisted under the Trade Unions Act,
1926, the individuals from the association should be laborers occupied with exchange, business or
industry and the appellants for this situation are not in that limit, as they are government workers
occupied with the undertakings of the sovereign government.
The methodology which is followed for the enlistment of worker's organization is that a suitable
Government will delegate an individual as Registrar of Trade Unions for each State. [Section 3(1)].
Application for enlistment is needed to be made endorsed by somewhere around 7 individuals.
Application ought to be joined by rules of worker's guild and other required subtleties. [section 5]. Rules
ought to contain arrangements as recommended in segment 6. Recorder will enroll Trade Union and
enter points of interest in the register kept up with by him. [section 8]. Worker's organization will have
an enrolled office. [section 12].
Any at least seven individuals from the association can shape a worker's organization and apply to
the Registrar for its enlistment by buying in their names to its principles. Any seen or more individuals
from a worker's guild may, by buying in their names to the guidelines of the worker's organization and
by in any case following the arrangements of this Act as for enlistment, apply for enrollment of the
worker's guild under this Act.
Page 9 of 94
Given that no Trade Union of laborers will be enlisted except if something like 10% or many the
workers, whichever is less, drawn in or utilized in the foundation or industry with which it is associated
are the individuals from such worker's organization on the date of making of utilization for enrollment:
Given further no Trade Union of workers will be enrolled except if it has on the date of making
application at least 7 people as its individuals, who are laborers drawn in or utilized in the foundation or
industry with which it is associated.
Privileges and Immunities of Registered Trade Unions

The Trade Unions Act, 1926 presents certain advantages and invulnerabilities to the individuals
and heads of the enrolled worker's guilds to empower them to do their authentic worker's organization
exercises with no dread or danger of common or criminal activity/risk. It is the main right without which
the workplace carriers of the enlisted worker's guilds will most likely be unable to release their
obligations proficiently.
The Trade Unions Act, 1926 has made arrangements for the individuals and office-carriers of an
enrolled worker's guild from criminal and common intrigues during the strikes and making any
monetary misfortune the business.
Under Sections 17 and 18 the Trade Unions Act, 1926 an enlisted worker's guild gets
insusceptibility in certain lawbreaker, common, and legally binding procedures.
It was held after 1921 Buckingham and Carnatic Mills case. There was a strike by the specialists of
Buckingham and Carnatic Mills in the city of Madras (presently called Chennai), India, against the
overseeing organization, Binny and Co. The strike, which endured from June to October 1921, made
extreme misfortunes the Madras economy.
The Trade Union Act 1926, deals only with the registration of Trade Unions. The Act has not
provided any provisions with regard to the recognition of a trade union or declaring a trade union as a
sole bargaining agent. However some State Governments such as Madhya Pradesh, Maharastra and West
Bengal made certain amendments to recognize the union as a sole bargaining agent. In the State of
Andhra Pradesh and Telangana there is no such provision and hence the recognition of the union is
based on the acceptance of the code of discipline by the registered trade unions and verification of
membership by the Labour Department.
At the central level, the 16th session of the Indian Labour Conference held at Nainital in May 1958
adopted the following set of criteria under the Code of Discipline for the recognition of trade unions:
1. Where there is more than one union, a union claiming recognition should have been functioning
for at least one year after registration. Where there is only one union, this condition would not
apply.
2. The membership of the union should cover at least 15 per cent of the workers in the
establishment concerned. Membership would be counted only those who had paid their
subscriptions for at least three months during the period of six months immediately preceding the
reckoning.
3. A union may claim to be recognized as a representative union for an industry in a local area if it
has a membership of at least 25 percent of the workers of that industry in that area.
4. When a union has been recognized, there should be no change in its position for a period of two
years.
5. In case of several unions in an industry or establishment, the one with the largest membership
should be recognized.
6. A representative union for an industry in an area should have the right to represent the workers
in all the establishments in the industry, but if a union of workers in a particular establishment
has a membership of 50 percent or more of the workers of that establishment, it should have the
right to deal with matters of purely local interests, such as, for instance, the handling of grievances
Page 10 of 94
pertaining to its own members. All other workers who are not members of that union might either
operate through the representative union for the industry or seek redress directly.
7. In the case of trade union federations not affiliated with any of the four central labour
organizations, the question of recognition would have to be dealt with separately.
8. Only unions which observed the Code of Discipline would be entitled to recognition.
In accordance with the code of discipline the verification of membership of all the registered trade
unions in an establishment is being conducted by the Labour Department authorities and the trade union
which has the highest membership is declared as the recognized union for a period of two years.
In accordance with the provisions of the Act, in an industrial establishment, there can be many
registered trade unions. The Supreme Court has time and again examined the matter and held that the
rights and privileges vested in a non-recognized association are limited to espousing the grievances of
individual members relating to their service conditions and representing them in domestic or
departmental enquiries held by the employer and not proceeding before the conciliation officer, labour
court, industrial tribunal or arbitrator. There is no right in the non-recognized union to participate in
discussions relating to general issues concerning all workmen. [Chairman SBI Vs All Orissa S B Officers
Association, AIR 2002 SC 2279]
Once there is a representative union, which in the present case, is the Labour Union, it is difficult to
see the role of the Workers’ Union. If there are number of trade unions registered under the Trade Union
Act, not entitled to be registered as “representative unions” and they raise disputes, industrial peace
would be a far cry. [National Engg Industries Ltd Vs State of Rajasthan AIR 2000 SC 469].
Today most of the industrial establishment has multiplicity of the unions and hence the management
should in their own interest provide the rightful place to the recognized union and should not encourage
minority or unrecognized unions. Dealing with unrecognized unions will create more unions and the
entire process of employee relations will be more complex and difficult to achieve the organizational
objectives.
1.4 Immunities in trade disputes: Criminal and Civil.
Immunities Against Criminal Conspiracy In Trade Disputes (Sec 17)

No office-conveyor or individual from an enlisted Trade Union will be responsible to discipline under
sub-area (2) of segment 120 B of the Indian Penal Code, in regard of any understanding made between
the individuals to additional any such object of the Trade Union as is indicated in segment 15, except if
the arrangement is a consent to submit an offense.
Conditions Applicable:
The individual looking for the invulnerability ought to be the workplace conveyor or individual from a
Trade union Such Trade union should be enlisted;
The individuals ought to have had the consent to accomplish some legal item;
The objects of the understanding should be covered under Section 15 of the Act; Protection is just for
those intrigues covered under S 120B (2), IPC and If the arrangement is a consent to submit an offense,
then, at that point no insurance is accessible under the Act.
Extent of Immunity
S. 17 grants assertion of strike in facilitation of Trade Dispute subject to the arrangements of the ID Act
including SS. 22, 23, 24 and 25.
It gives insusceptibility just from criminal scheme not from criminal offense.
Immunity is accessible just to the degree of lawful and serene strike.
There is no resistance from the offense of criminal intrigue in instances of unlawful strike, as such
action is culpable under S. 26 of the ID Act.
Page 11 of 94
Important Cases
R.S. Ruikar v Emperor AIR 1935 Nag 149
For this situation the leader of Nagpur Textile Union called a strike as specific conditions in the
terms of settlement of a strike in the earlier year had been avoided by the Express Mills in Nagpur.
For getting the ideal outcomes, the TU began picketing.

Picketing implies the presence at a's business of at least one representatives as well as different people
who are publicizing a work question, impacting representatives or clients to retain their work or
business, individually, or showing an association's longing to address workers; picketing is generally
joined by watching with signs.
It was grumbled that two ladies picketers were badgering by the police and were driven away.
Afterward, the president carried his significant other to one of the plant entryways and posted her there
and trained her to beat with shoes any individual who meddled with her.
The president was captured, indicted and sentenced for abetment for picketing under S. 7 of the Criminal
Amendment Act, 1932 for attack while picketing and its abetment.
It was fought that there was a debate between S. 7 of the Criminal Amendment Act and Trade Union Act
1926.
It was likewise battled for this situation that there is a contention between S. 7 of the Criminal
Amendment Act and S. 17 of the TU Act, as the option to strike and insusceptibility under SS. 17 and 18
would not be of any assistance if S. 7 of the Criminal Amendment Act was held as relevant.
The Court saw for this situation that the worker's guilds have right to pronounce a strike and to do
certain demonstrations in assistance of exchange debates.
It further saw that they are not responsible commonly or criminally for scheme in assistance of such goes
about as allowed by the TU Act yet there isn't anything which separated from giving resistance in regards
to criminal intrigue permits invulnerability from criminal offenses.
The Court chose for this situation that the candidate was appropriately indicted, as when serene
demonstrators or strikers resort to unlawful imprisonment of people or criminal attack or wickedness to
an individual or property there is no exception from risk.
Jay Engineering Works Ltd. V State of West Bengal AIR 1968 Cal 407
Issue:
Whether Gera is secured under the TU Act as a method for strike?
Gera implies actual bar of an objective either by infringement or coercive occupation. It is a kind of actual
block and is an offense under S. 340 of the IPC.
It limits the development of an individual. The laborers of a TU can be reserved for the offense of legend.
The Calcutta High Court for this situation pronounced that legend is an unlawful method for dissent or
show. Based on realities and conditions it very well may be held lawful however the extension is truly
restricted.
Page 12 of 94
It further held that if an individual or number of people illegitimately bind someone else or people, it is
rudimentary that it goes under SS. 339(wrongful restriction)/340 (unjust control) of the IPC read with
SS. 341/342 (disciplines of these violations) of the IPC and can't be saved by Section17, TU Act.
Immunity from Civil Suit In Specific Cases (Sec 18)

1. No suit or other legal action will be viable in any Civil Court against any enrolled Trade Union or
any office-conveyor or part thereof in regard of any demonstration done in examination or
promotion of an exchange debate to which an individual from the Trade Union is a party on the
ground just that such demonstration incites another individual to break an agreement of work, or
that it is in impedance with the exchange, business or work of another individual or with the right
of another individual to discard his capital or of his work as he wills.
2. A enlisted Trade Union will not be at risk in any suit or other judicial procedure in any Civil Court
in regard of any convoluted demonstration done in examination or promotion of an exchange
debate by a specialist of the Trade Union in case it is demonstrated that such individual acted
without the information on, or in spite of express guidelines given by, the chief of the Trade Union
The topic of invulnerability under segment 18 of the Trade Union Act was managed for the situation
between Ahmedabad Textile Research Association versus Atira Employees Union and Anr. (1995 (1) LLN
348; (1994) IILLJ 912 GU) wherein the division seat of the Gujarat High Court held that as long as the
holding of shows or yelling of trademarks, showing of notices or holding of dharnas don't turn unlawful,
convoluted or rough such worker's guild exercises is admissible and genuine.
Notwithstanding, while at the same time articulating its judgment the Court was additionally of
the assessment that any exercises with respect to making harm the property of and hindering entrance
into and departure from the offended parties' organization will be understood as unlawful and
convoluted and couldn't be secured.
In choosing the degree of resistance accessible to a worker's guild under the arrangement of area
18 of the Trade Union Act the Karnataka High Court in Simpson and Group Companies Workers and Staff
Union versus Amco Batteries Ltd. (1991 LLR 95 Karn HC; 1994 II LLN 147) decided that till the activity of
the association are serene the association can appreciate insusceptibility under the Act.
It held that the direct of the laborers in the moment case in obstructing the entry of men and
material of the Plaintiff-Company despises resistance under Section 18 of the Trade Unions Act. It was
likewise seen by the Court that under a lock out or strike circumstance the insurance under area 18
doesn't get expanded as the thought and the guideline are same under both the circumstances.
1.5 Collective Bargaining – Purpose and its types.

Collective bargaining is a process in which the workers and the employer of a company sits
together and resolve industrial disputes harmoniously through discussions and settlements. Collective
bargaining is a right of every worker. It includes employee unionisation, negotiations, administration,
and interpretation of collective bargaining agreements governing pay, hours of work, and other working
conditions, as well as contending in concerted economic activities dispute resolution procedures.
It is a bipartite process in which only employee and employer are the parties. Only these two parties
have the power to involve in the bargaining process. There is no intervention of the third party and the
discussion is carried out collectively.
As the industrialization in India was late, the true sense of collective bargaining gained the
grounds after the independence. Before independence, the first collective bargaining was done in a
textile mill of Ahmedabad when the workers of the factory realised that resolving the industrial disputes
by taking the help of the court is a total waste of time, energy and money in the British occupied India.
Page 13 of 94
After independence, the first case of collective agreement was between Dunlop Rubber Company in West
Bengal, then the Indian Aluminium Company made its first five year contract with its employees and then
many companies adopted the concept of collective bargaining.
As per International Labour Organisation Manual 1960, "Negotiations about working conditions
and terms of employment between an employer, a group of employees or one or more employers'
organization on the other, with a view to reaching an agreement."
Principles of Both the Parties

Management/Employers
The management or the employer should be up to date with all the labour laws and should offer unions
unconditional recognition and regard the employees as a constructive and cooperative force in the
organisation. This will increase both their prestige and their responsibilities. To restrict unions from
doing anything drastic which could harm the industrial relations, management needs to build a strong
relationship with the union in order to gain their trust and maintain a satisfactory relation with the
employees.
To maintain a healthy relation with the union, the management needs to take consideration of the needs
of the other side as well while doing bargaining and not think only from the point of economic
considerations. The most important principle which needs to followed by every management is that it
needs to understand and have the willing acceptance to recognise representative union for joint
bargaining efforts and should establish equal opportunities of employment with a view to avoid
industrial disputes and maintain peace and harmony in the industry.
Trade Union/Employees
Trade Union should understand the economic implications of the collective bargaining and realise that it
should also align with the resources and financial health of the company and that the company should
not feel any undue influence. Unions must have the responsibility and obligation to assist management in
reducing waste and unnecessary expenditures. It should place a premium on increasing productivity and
quality.
To boost participation and improve working conditions, the union should employ the collective
bargaining process. They should not limit collective bargaining to merely monetary gains. In collective
bargaining, it is very necessary to understand that it is not a competition. The needs of one party is the
resource of the other party and thus, it should be two-way settlement.
Different Levels Of Collective Bargaining

Disputes arise at every level in a company whether it is a craft level dispute or a national level dispute.
The levels of collective bargaining from region to region, union to union etc. When the industrial disputes
of an organisation is classified as per the levels, it becomes more easy to resolve the issue and determine
the behavior of the industry. Majorly, there are levels of Collective Bargaining.
They are:
National-Level Bargaining
This bargaining usually takes place with the Management and the National level union. The major
advantage at this level of bargaining is that issues are acknowledged by all industries and all industrial
employees when negotiation takes place at the national level. The benefits of negotiation at this level are
that salaries and wage structures are uniform and standardised. It avoids disputes and disparities.
Page 14 of 94
Industry-Level Bargaining
On an industry-by-industry basis, these unions are structured as industry federations. Basic pay,
allowances, production capacity, production rules, and working conditions relating to that industry are
all part of the talks and negotiating. In one industry, bargaining at the industry level ensures
homogeneity in labour costs and working conditions. Bargaining at the industry level might also take the
form of a mix of industry and region-based bargaining.
Because of the varying levels of performance, technology, and productivity, industry-level negotiating
has grown less successful over time, and standard pay and allowances are not conceivable as concerns at
industry-level negotiation.
Corporate-Level Bargaining
When the management of a multi-plant firm negotiates a single agreement with numerous unions
for all of its factories, this is referred to as corporate collective bargaining. Corporate management
frequently conducts collective bargaining with representatives from several factories. The benefit of
corporate level negotiating is that it ensures consistency across all of the company's locations and
prevents conflicts that emerge from disparities.
When collective bargaining takes place at the corporate level, with its multi-plant structure, it's
easy to overlook concerns that are critical at the plant level.
Furthermore, when this is done for huge public sector organisations such as HMT, ONGC, or BHEL, the
management is limited in their ability to bargain, particularly in the Indian context, due to political
involvement. The Ministry of Public Enterprises (MoPE) and the Bureau of Public Enterprises (BPE) both
have guidelines. Corporate management is unable to engage in serious negotiations, and many issues
pertinent to various plants may be overlooked.
Plant-Level Bargaining
The majority of India's private sector firms engage in plant-level collective bargaining. Plant-level
collective bargaining takes place between the management of a certain plant or industrial site. The
problems are specific to particular facility or firm. Performance-related or pay productivity-related
discussions are the cornerstone and foundation of such agreements. Another advantage of plant-level
negotiating is that it allows for separate discussions. These discussions can take advantage of the
differences in cost of living from one location to the next, providing a realistic negotiating ground.
Stages of Collective Bargaining

Following are the stages of collective bargaining:
1. Forming A Union
The minimum number of employees required to form a trade union is seven, according to Section 9A of
the Trade Unions Act of 1926. Though joining a union is not required, it does have its benefits, such as
providing proper representation for employees, the ability to use funds for certain objectives, and
immunity from civil claims, among others.
Charter of Demands
At this point, either the union or the company can start the collective bargaining process. After that,
the labour union writes a charter of demands through a series of meetings with all of its members.
1. Negotiation
The negotiating process begins with the filing of a demand charter. In most cases, the union is the
one who offers official requests for revisions to current labour agreements during the first
Page 15 of 94
meeting. The management is then given the opportunity to make counter-proposals. This will
continue until they reach an accord.
2. Strikes
In the event that negotiations fail, the union may call a strike. Employees in the public utility
industry must provide six weeks' notice of a strike and may strike fourteen days after giving such
notice, according to Section 22 of the Industrial Disputes Act. Management and the union are not
allowed to take any industrial action while the conciliation is in progress, and not until seven days
after the conciliation processes are completed, or two months after the legal proceedings are
completed.
Conciliation
when the conciliation officer gets a notice of strike, the process begins. This phase allows you to choose
between two options. The state government may appoint a conciliation officer to investigate, mediate,
and promote settlement during the cooling-off period, according to Section 4 of the Act.
The second option, according to Section 5 of the Act, is for the state government to form a Board of
Conciliation, which would consist of a chairperson and two or four members. According to Sections 22
and 23 of the Act, strikes are not permitted during the conciliation procedure. This process finishes with
a settlement or a referral to an industrial tribunal or labour court, according to Section 20 of the Act.
Legal Boundaries For Collective Bargaining In India
The IDA oversees the rights of employers and employees in the investigation and settlement of industrial
disputes, which includes trade unions.
It allows for collective bargaining through discussion and mediation, or, if that fails, voluntary
arbitration or compulsory adjudication with trade union involvement. A settlement reached through
collective bargaining is legally binding, according to the IDA, there are two types of settlements
recognised: those agreed via conciliation processes before the authority, which bind members of the
signatory union as well as non-members and all current and future management workers. The second
type of settlement is one achieved outside of conciliation but signed independently by the parties to the
agreement - such agreements bind just the parties to the agreement.
Even after all the indirect provisions for collective bargaining are there, the workers or the trae
union still faces backlash. There are some legal boundaries which causes this.
Some of them are:

1. There is no ratification of ILO Convention, C-98 and C-87.
2. There is a very limited scope collective bargaining under the ambit of Trade Union Act and
Industrial Dispute Act. Both statutes are silent on the recognition of trade unions, which has
serious implications for workers' rights.
3. One of the major backlashes is that the right to strike is a legal right controlled by the Industrial
Dispute Act of 1947, rather than a fundamental right. Strikes or lockouts can be prohibited under
Section 10K of Industrial Disputes Act.
4. Section 22 of the IDA states that there must be at least 6 weeks' notice before a strike in public
utility services.
5. Strikes are prohibited during the pendency of conciliation, arbitration, and judicial processes
under Section 23 of the IDA.
6. The CRPC does not apply to trade union activity, although it does in the case of illegal strikes.
Page 16 of 94
Perspective from Industrial Relation Code, 2020 On Collective Bargaining

The notion of unequal negotiating partners, which arises from the class connection between employers
and employees, lies at the foundation of labour law. In the case of Central Inland Water Transportation
Corporaton V Brojo Nath, Justice DinshaPiroshaMadon expressly recognised this principle, "Trade unions
play a central role through collective bargaining in unequal relationships, where workers are at a
constant risk of unemployment especially when employers are a large corporation".
According to the Industrial Relations Code, an employer cannot discriminate between fixed-term
and permanent employees. A fixed-term employee's working hours, salary, allowances, and other perks
cannot be less than those of a permanent worker doing the same or equivalent work. However, with the
acceptance of fixed-term contracts and individual settlements, even permanent workers' service terms
will be determined on an individual basis.
In effect, trade unions' role in determining wages and service conditions through collective
bargaining would be eliminated. Individual settlements are now included in the definition of "settlement"
in the statute, which goes against the basic principle of collective bargaining.
Case Laws Related To Collective Bargaining
1. Hindustan Lever Ltd. V Hindustan Lever Employees Union, 1999
This position, which has been reaffirmed by the Court in numerous subsequent cases, recognizes the
importance of collective bargaining between workers and employers in modern economic life. It is
generally known that prior to the advent of collective bargaining; labour faced significant difficulties in
securing appropriate conditions for service contracts from his employer. As the country's trade unions
grew and collective bargaining became the norm, employers found it necessary and convenient to deal
with workers' representatives rather than individual workers, not only when making or amending
contracts, but also when taking disciplinary action against one or more workers, and in all other disputes.
2. MRF United Workers Union V State of Tamil Nadu, 2009

Two criteria should be utilised to assess if an organisation has the competence to be the sole signatory to
collective agreements: representativeness and independence.
a. The decision of whether organizations fit these requirements should be carried out by a body that
provides every assurance of objectivity and independence.
b. As a result, it was argued on their behalf that it was an international standard that the trade union
serving as the sole collective bargaining agent must be representative and independent.
3. P. Virudhachalam&Othrs. V The Management of Lotus Mills

It is important to remember that the Act is built on the notion of collective bargaining for the purpose
of settling industrial disputes and sustaining industrial peace. Individual workers must inevitably fade
into the background in all collective bargaining negotiations. The union that represents such workers
takes up the reins of negotiating on his behalf. On behalf of all of its members, unions advocate for a
shared cause.
As a result, any agreement they reach with management will bind at least their members, and if it is
reached through conciliation processes, it will bind even non-members. As a result, settlements are the
Act's live wires for guaranteeing industrial peace and prosperity.
Page 17 of 94
Conclusion
Historically, the role of trade unions in India was mostly restricted to collective bargaining for
economic reasons. Trade unions, on the other hand, currently play an important role in employee
welfare, cultural programmes, banking, and medical facilities, as well as raising awareness via
training and education of trade union members.
In recent years, however, due to increased competition, the dominant managerial objectives in
collective bargaining have been to reduce labour costs, increase production or productivity, flexibility in
work organisation (multi-skilling/multifunctioning, changes in worker grades, etc.), increase work time,
reduce regular staff strength via VRS, stress on quality, and so on.
Despite a few recent events that can mostly be classified as one-off situations, most trade unions
have succeeded to create a climate that allows for a constructive conversation between employees and
employers about whatever requests they may have. Furthermore, over time, Indian trade unions have
guaranteed that a platform exists to support improved industrial relations, industrial growth, and
productivity improvement.
1.6 Collective Bargaining Process, Advantages and Disadvantages.
Collective bargaining is a process of negotiating between management and workers represented by

their representatives for determining mutually agreed terms and conditions of work which protect the
interest of both workers and the management. Collective bargaining has been defined by the Supreme
Court (“SC”) as “the technique by which dispute as to conditions of employment is resolved amicably by
agreement rather than coercion”. In this article, we shall study advantages of collective bargaining.
ILO Convention No. 154 defines collective bargaining as referring to: “all negotiations which take place
between an employer, a group of employers or one or more employers’ organizations, on the one hand,
and one or more workers’ organizations, on the other, for:
(a) determining working conditions and terms of employment; and/or

(b) regulating relations between employers and workers; and/or
(c) regulating relations between employers or their organizations and a workers’ organization or
workers’ organizations.” (Article 2)
Objectives of Collective Bargaining:

• To foster and maintain cordial relations between the employer/management and employees.
• To protect the interests of the workers and employer through collective action and by preventing
unilateral actions from being taken by either party.
• To keep outside the government interventions
• To promote industrial democracy.
Advantages of Collective Bargaining:
Advantages of collective bargaining are as follows:
1. Collective bargaining gives workers a larger voice.

An individual worker under financial constraint cannot bargain with the cash-rich employer. In such a
situation, the individual may be tempted to accept undesirable conditions including low remuneration.
Here there is a fear of loss of a job in the minds of the worker. This fear may be due to the ignorance,
illiteracy and industry-specific skill factors. Sometimes employers are in a position to control the bulk
demands for the labours, and they may through combined action, force the workers to accept low wages.
Collective bargaining allows workers to band together into larger groups like trade unions, create a
louder voice that can help provide the benefits for the workers and employers.
Page 18 of 94
2. Collective bargaining can improve a worker’s quality of life.

The collective bargaining agreements negotiated in good faith often support higher wages for each
worker including additional benefits, such as healthcare access or retirement benefits. Workplace
conditions become safer.
3. Collective bargaining encourages cooperation.
Collective bargaining is a process of negotiating in good faith between management and workers
represented by their representatives for determining mutually agreed terms and conditions of work
which protect the interest of both workers and the management. In collective bargaining there is give
and take approach. There must be a balance, where everyone gets something they need, but not
necessarily everything they want, through a perspective of sincerity or honesty of intention. Both sides
are compelled to negotiate with one another for the benefit of both.
4. Collective bargaining creates relationships.
As discussed above, Collective bargaining encourages cooperation. The negotiation doe in a good faith
can establish a strong relationship. That doesn’t mean employers and employees must become friends
for the formation of a contract. There is a need for open lines of communication to be continually
available for both sides to prosper in negotiations. This creates open lines of communication between all
offices and parties involved, which can create beneficial community relationships over time.
5. Collective bargaining creates enforcement consistency.
Each worker and the employer is bound by the negotiated contract. Each party is bound by the policies
and procedures included with the contract. That means everyone involved has legal standing should an
issue at work come up in violation of the agreed-upon terms. When one group or party fails to live up to
their standards in the contract, then the collective bargaining agreement is useful as a legal defence.
Thus, employers, employees, and any union representation all have access to a higher level of security to
defend their livelihood.
6. Collective bargaining creates a binding result.
Due to contract arrived after collective bargain, both the parties are bound. It is a legal standard that can
be used as part of a legal defence. If one side or the other is not performing to the stipulations that have
been set forth in the contract, then they can be held responsible to them by the injured party. This
provides an extra level of security for employees and employers so they can defend their positions.
7. Collective bargaining can be modified.
Collective bargaining agreement is not forever. It is time bound. After the date of agreement ends, the
agreement can be eventually changed. And new terms and conditions can be negotiated in the new
agreement. Sometimes there may even be a provision to change the collective bargaining agreement
within its operational time if both parties agree to do so.
8. Collective bargaining prevents employees from going on strikes.
When there are big issues between employees and employers that are not settled, a popular option for
employees are to go on strikes. These actions hamper operations and consequently cripple businesses.
Collective bargaining protects employers as well. This is because collective bargaining will result to an
agreement. And normally, this will also be agreed upon if the negotiations are beneficial for both parties.
With collective bargaining, strikes can be avoided.
Disadvantages of Collective Bargaining:
Disadvantages of collective bargaining are as follows:
1. Collective bargaining may require everyone to be bound by the contract.

The stipulations in most collective bargaining agreements require all parties working for a corporation to
follow the rules outlined by the contract. This can make it difficult for some employees to get their work
done. It can also mean that some non-union workers might find their employment in jeopardy at the cost
of unionized workers under some contracts, depending on local laws and regulations. That means a
worker could start their job there without any influence on the negotiation process, then be bound by
Page 19 of 94
those rules without exception until the next contract period allows them to express concerns. New
workers must agree with the terms and conditions of the current contract to be employed.
2. Collective bargaining is not always a process of fair representation.
some non-union workers might find their employment in jeopardy at the cost of unionized workers
under some contracts, depending on local laws and regulations. That means a worker could start their
job there without any influence on the negotiation process, then be bound by those rules without
exception until the next contract period allows them to express concerns. New workers must agree with
the terms and conditions of the current contract to be employed. That creates a situation where a few of
the workers dominate a majority of the wage resources, reducing the possibility of equal success within
the workplace.
3. Collective bargaining highlights personal differences.
During collective bargaining, groups come together to protect common goals, but there is no guarantee
that the final contract will reflect their needs. There is a possibility of a shift from group thinking to
individualistic representation during this process, there can be differences or even divisions that come
up at the table which have never been discussed before. This can lead to feelings of betrayal for those
that are present or targeted by those differences or divisions. The agreement must be approved by
workers by majority. Thus, there are some workers whose aspirations are not fulfilled.
4. Collective bargaining is not always a process of fair representation.
An individual worker under financial constraint cannot bargain with the cash-rich employer. Unionised
and non-unionized members operate under a different agreement. That usually means the union jobs pay
better than the non-union positions. That creates a situation where a few of the workers dominate a
majority of the wage resources, reducing the possibility of equal success within the workplace. There is a
possibility that a minority can consume a majority of the available resources, which creates the
possibility of the union eventually imploding.
5. Collective bargaining is used as a political tool.
Unionization is a politically-charged topic for many people and has been for some time. Many employers
will actively discourage employees from taking steps to unionize. Union members may actively
encourage workers to take the steps necessary to join the union. Similarly, it creates an environment that
is more than just uncomfortable. Political parties enter trade unions as collective bargaining is often
associated with fundraising.
Conclusion:
The top advantages and disadvantages of collective bargaining is to balance improve wages and working
conditions with increased productivity and labor security for the employer. All parties typically give a
little to get a little in the final contract, compromising to create something which is mutually beneficial to
everyone. The benefits often depend on the skills of the negotiators involved and the size of a group
represented, which means some agreements are less beneficial than others.
Page 20 of 94
MODULE 2:
INDUSTRIAL DISPUTES ACT, 1947.
1. Industry – Conceptual Analysis.
2. Concept – Industrial Dispute, Workman etc.
3. Authorities under the Act.
4. Strike and Lockout.
5. Lay off, Retrenchment and Closure.
6. Award and Settlement.
1. Industry – Conceptual Analysis.

Sec.2 (j) of the Industrial Disputes Act, 1947 defines ‘industry’ as any business, trade,
undertaking, manufacture, or calling of employers and includes any calling, service, employment,
handicraft or industrial occupation or avocation of workmen”.
An industry exists only when there is relationship between employers and employees, the former is
engaged in business, trade, undertaking, manufacture or calling of employers and the latter is engaged in
the calling, service, employment, handicraft or industrial occupation and avocation.
Sec. 2(j) gives the definition of industry, which was elaborated upon by the Supreme Court in
the Bangalore Water Supply and Sewerage Board v. R. Rajappa[i]. The term industry has been given a
wide scope and the judgment overruled several earlier decisions. The court held-
1. Any activity will be industry if it fulfills the ‘triple test’, as under:
• Systematic and organized activity
• With the cooperation between Employers and employees
• For the production and distribution of good and services whether or not capital has been invested
for this activity.
2. It is immaterial whether or not there is profit motive or whether or not there is capital.
3. If the organization is a trade or business it does not cease to be one because of philanthropy animating
the triple test, cannot be exempted from scope of definition of industry.
4. Dominant nature test – whether there is complex of activities, the test would be predominant nature of
services and integrated nature of departments. All departments integrated with industry will also be
industry.
5. The exceptions to industry are-
Casual activities (because they are not systematic).
Small clubs, co – operatives, research labs, gurukuls which have an essentially non employee character.
Single door lawyer taking help from clerk (because there is no organized labour).
Selfless charitable activities carried on through volunteers e.g. free legal or medical service.
Sovereign functions – strictly understood, i.e., maintenance of law and order, legislative functions and
judicial function.
Charitable Institutions
These fall into three categories –
(a) Those that yield profit, but the profits are not siphoned off for altruistic purposes;
(b) Those that make no profit but hire the service of employees as in any other business, but the goods/
services which are the output, are made available at a low or no cost to the indigent poor; and
(c) Those that are oriented on a humane mission fulfilled by men who work, not because they are paid
wages, but because they share the passion for the cause and derive job satisfaction.
The first two categories are industries, but not the third, on the assumption that they all involve co-
operation between employers and employees.
Page 21 of 94
Hospitals
In State of Bombay v. Hospital Mazdoor Sabha,[ii] the Supreme Court held the State is carrying on an
‘undertaking’ within Sec. 2(j) when it runs a group of hospitals for purpose of giving medical relief to the
citizens and for helping to impart medical education. The court observed as follows:
• 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.
• It is the character of the activity in question which attracts the provisions of Sec. 2 (j), who
conducts the activity and whether it is conducted for profit or not, do not make a material
difference.
Thus, activities that have no commercial implications, such as hospitals carried on with philanthropic
motives would be covered by the expression ‘undertaking’. The mere fact that Government runs such
activity is immaterial. In case an activity is industry if carried on by a private person, it would be so, even
if carried on by the Government.
In Management of Safdarjung Hospital v. Kuldip Singh[iii], it was held that a place of treatment of
patients run as a department of the government was not an industry because it was a part of the
functions of the government. Charitable hospitals run by Government or even private associations cannot
be included in the definition of industry because they have not embarked upon economic activities
analogous to trade or business. If hospitals, nursing home or a dispensary is run as a business in a
commercial way, there may be elements of industry.
In Dhanrajgiri Hospital v. Workmen[iv] , the main activity of the hospital was imparting of training in
nursing and the beds in the hospital were meant for their practical training. It was held not to be an
industry, as it was not carrying on any economic activity in the nature of trade or business.
In Bangalore Water Supply v A. Rajappa[v], the Supreme Court overruled Safdarjung Hospital and
Dhanrajgiri Hospital cases, and approved the law laid down in Hospital Mazdoor Sabha case. It was held
that hospital facilities are surely services and hence industries. The government departments while
undertaking welfare activities cannot be said to be engaged in discharging sovereign functions and hence
outside the ambit of Sec.2(j) of the Act.
Therefore, a charitable hospital run by a private trust, offering free services and employing a
permanent staff is an industry as there is a systematic activity, a co – operation between employer and
employees and rendering of services which satisfies human wants and wishes. Further, the services of
employees are hired as in any other business.
Legal Firm
In National Union of Commercial Employees v. M.R. Meher,[vi] it was held that a solicitor’s firm
is not an industry, although specifically considered, it is organized as an industrial concern. The court
held that a person following a liberal profession does not carry on his profession in any intelligible sense
with the active co-operation of his employees, and the principal/sole capital which he brings into his
profession is his special and peculiar intellectual and educational equipment.
Subsidiary work which is purely incidental type and which is intended to assist the solicitor in
doing his job has no direct relation to the professional service ultimately rendered by the solicitor. There
is, no doubt, a kind of co-operation between the solicitor and his employees, but that co-operation has no
direct or immediate relation to the advice or service which the solicitor renders to his client.
However this was overruled by Bangalore Water Supply case [vii], wherein it was held that in view of
the infrastructure of the offices of professional persons, the contribution to the success of the institution
comes not merely from the professional or specialist but from all those whose excellence in their
respective spheres makes for total proficiency.
Page 22 of 94
Thus functional cooperation between employer and employees is essential for the total quality of
service. But in the categories of such and allied professions when such co-operation is missing they are
not industries.
A legal consultant firm employing two law graduates stenographer and a peon is an industry.
2. Concept – Industrial Dispute, Workman etc.
Industrial Dispute – Introduction and Meaning

For industrial progress and prosperity, maintenance of peaceful relations between labour and
capital is of the first importance. Industrial dispute means a loss, both to the employers and the
employees even when the latter scores a victory. It is also harmful to the community in general.
Therefore, every effort is made in advanced countries to maintain industrial peace. “The employer-
worker relationship”, according to the Planning Commission, “has to be conceived of as a partnership in a
constructive endeavour to promote the satisfaction of the economic needs of the community in the best
possible manner.”
For a long time in India there was no industrial unrest. Although modern industry began to grow
in India in about the middle of the last century, yet for nearly half a century no dispute of importance
took place. The First World War had made the workers conscious of their rights, and they were prepared
to fight for them, if necessary.
During the second war, Defense of India Rules was enforced in order to check strikes and
disputes. According to them the Government armed itself with power to prohibit strikes and lock-outs
and to refer to it any disputes for conciliation or adjudication and to enforce the awards.
Industrial unrest became very serious during the years immediately after World War II and to a lesser
extent in recent years. During the last few years there has been appreciable improvement in industrial
relations, the number of industrial disputes going down from 1,630 in 1957 to 1,491 in 1962.
An industrial dispute as a conflict or a difference in opinion between management and workers
regarding employment. It is a disagreement between an employer and employees representative i.e.
trade union. The issue of disagreement is usually pay or other working conditions. During an industrial
dispute, both the parties try to pressurize each other to agree to their terms and conditions. The
industrial unrest manifests itself as strikes, lock-outs, picketing, gheraos and indiscipline on the part of
workers. The causes of this unrest are either specific organizational problems such as insufficient pay,
lack of benefit and assistance schemes, or the causes may be wider socio-economic problems such as
poverty and unemployment etc.
Industrial Dispute – Definition
The definition of Industrial disputes is as follows – According to Section 2(k) of the Industrial Disputes
Act, 1947 “industrial dispute” is defined as, “Any disputes or differences between employers and
employers, or between employers and workmen, or between workmen and workmen, which is
connected with the employment or non-employment or the terms of employment or with the conditions
of labour, of any person”.
Does this sound very confusing? Let me simplify this for you. Let us understand that the definition
identifies three parties to disputes.
They are:
1. Employers
2. Employees
3. Workmen.
Workmen Industrial dispute is disagreement and difference between two disputants, namely, labour and
management. This disagreement or difference could be on any matter concerning them individually or
collectively. It must be connected with employment or non-employment or with the conditions of labour.
Page 23 of 94
It should also be noted that, the subject- matter of an industrial dispute must be specific, i.e., which
affects the relationship of employers and workers.
Let us now understand the severity of industrial disputes It is self-evident that industrial disputes
and industrial unrest are symptoms of a lack of cooperative spirit and of harmonious relations in
industry. It is agreed that the manifestation of these symptoms causes stoppage of work or disruption of
production and all consequential evils. The continued and prolonged industrial unrest also has serious
consequences for the employees and also for the economy at large.
From the point of view of the employer, an industrial dispute resulting in stoppage of work means
a stoppage of production. Please understand that this results in the increase in the average cost of
production since fixed expenses continue to be incurred. It also leads to a fall in sales and the rate of
turnover, leading to a fall in profits. The employer may also be liable to compensate his customers with
whom he may have contracted for regular supply.
Apart from the immediate economic effects, loss of prestige and credit, alienation of the labour
force, and other non-economic, psychological and social consequences may also arise. Loss due to
destruction of property, personal injury and physical intimidation or inconvenience also arises. For the
employee, an industrial dispute entails loss of income.
The regular income by way of wages and allowance ceases, and great hardship may be caused to
the worker and his family, many times resulting in deprivation, malnutrition, even starvation or near-
starvation. The ability of trade unions to provide for the needs of striking workers, particularly in India,
is very limited. Employees also suffer from personal injury, and the psychological and physical
consequences of forced idleness.
The threat of loss of employment in case of failure to settle the dispute advantageously, or the
threat of reprisal action by employers also exists. Don’t you think that the psychological effects can be
more dangerous than the physical consequences? Prolonged stoppages of work have also an adverse
effect on the national productivity, national income. They cause wastage of national resources. Class
hatred may be generated resulting in political unrest and disrupting amicable social relations or
community attitudes.
Industrial Dispute – Concept
In narrow sense industrial dispute means conflict between parties in industrial establishments.
Dictionary meaning of ‘dispute’ is ‘disagreement’, ‘mutual antagonism as of ideas, interests etc.’ So,
industrial dispute is disagreement/mutual antagonism as of ideas, interests etc. between parties in
industry. In industrial setting parties are invariably workers and management.
In the process of working, workers express their need, expectation, desire for fulfillment and
satisfaction. They want more money i.e., attractive wages, allowances, monetary incentive which the
management may not be agreeable to pay. Workers demand of better fringe benefits, health benefits but
management may provide less than that of their requirement.
They want recognition, status, power, advancement, higher quality of work life but management
may be reluctant to give. Under such situation, a state of disagreement/mutual antagonism between
workers and management develops which gives birth to industrial conflict.
So, industrial dispute is a general concept, and this conflict gets the shape of industrial dispute in a
specific dimensional situation. Basically, there is no difference between ‘industrial conflict’ and
‘industrial dispute’, variation lies only in scope and coverage.
Analysis of the provision of the Act reveals the following:

1. Industrial dispute is a dispute or difference –
(i) Between employers and employers, or
(ii) Between employers and workmen or
(iii) Between workmen and workmen.
Page 24 of 94
2. Industrial dispute is connected with –

(i) Employment or
(ii) Non-employment or
(iii) Terms of employment or
(iv) Conditions of labour of any person.
Industrial Dispute – Top 9 Characteristics: Parties, Relation, Forms, Oral or Written, Real,
Substantial Interest, Related to Industry, Clarification and Origin
Industrial Disputes have the following characteristics or essentials:
(1) Parties:
Industrial disputes may be among different parties.
Ordinarily, it is among the following parties:

(i) Employers and employers,
(ii) Employers and workmen and
(iii) Workmen and Workmen.
(2) Relation:
Matter of dispute may relate to worker or to employer or to both. Normally, it relates to an appointment
or termination of a person; conditions of employment or conditions of work.
(3) Forms:
Industrial disputes may manifest themselves in different forms, such as strikes, lock-outs, Gheraos, go
slow tactics, pens down strike, etc.
(4) Oral or Written:
Industrial dispute need not be written. It may be oral.
(5) Real:
It should be real. It should relate to employment of the worker, termination of employment, terms of
employment, conditions of employment, etc. Matters relating to the personal life of the worker do not
constitute industrial dispute.
(6) Substantial Interest:
In matter relating to industrial dispute interest either of the employer or the worker must be involved.
(7) Related to Industry:
A dispute can be included in industrial dispute when it concerns with industry. Usually, disputes must
belong to an industry which is functioning. Disputes belonging to an industry that has since been closed
down should not be included in it.
(8) Clarification:
Industrial disputes should relate to matters which are clear. Unless, it is a transparent case its settlement
is not possible. Matters which are clear find settlement easily. Concerned party can protect its interest
when the issue is crystal clear.
(9) Origin:
Ordinarily, dispute arises when the workers or trade unions put up their demands before the employer
and the latter refuses to consider them.
In short, it can be said that industrial dispute means lack of peace in industry. When in an industry,
requirements of the two parties contradict each other industrial dispute raises its ugly head.
Page 25 of 94
Industrial Dispute – 4 Different Types: Interest Disputes, Disputes over Unfair Labour Practices,
Grievance or Rights Disputes and Recognition Disputes
Industrial disputes can be classified on the following grounds:
Type # 1. Interest Disputes:

These conflicts are also called ‘conflicts of interest’ or ‘economic disputes’. Such disputes relate to
the establishment of new terms and conditions of employment for the general body workers i.e., that
affect the masses. Generally, such type of disputes originate form trade union demands or proposals for
increase in wages or other emoluments, fringe benefits, job security or other terms of employment.
These demands are put forth by the trade unions with a view to negotiate through collective bargaining
and disputes when the parties fail in their negotiations to reach an agreement.
The terms ‘conflicts of interest’ and ‘economic disputes’ refer to the nature of issues involved. There are
no set principles to arrive at a settlement of interest disputes, and recourse must be had to bargaining
power, compromise, and sometimes a test of economic strength for the parties to arrive at an agreed
solution. Such disputes are solved generally on ‘give and take’ basis.
Type # 2. Disputes over Unfair Labour Practices:
Such disputes arise over the malpractices adopted by the management against a worker or trade
union. The examples of such malpractices may be discrimination against workers for their being
members of the trade union or their involvement in union activities; interference, restraint or coercion of
employees from exercising their right to organise, join or assist a union; establishment of employer
sponsored union and coerce the workers to join such union; refusal to bargain with the recognized
union; recruiting new employees during a strike which is not declared illegal; failure to implement an
award, settlement or agreement; indulging in acts of violence. These practices are also known as ‘trade
union victimization’. In some countries a procedure is given to settle such disputes. In the absence of any
such procedure, the disputes are settled in accordance with the provisions of the Act relating to
industrial disputes.
Type # 3. Grievance or Rights Disputes:
These disputes are also known as ‘conflicts of rights’ or ‘legal disputes’. They involve individual
workers or a group of workers in the same group. In some countries, such disputes are called ‘individual
disputes’. Such disputes arise from the day to day working relations of the workers and management,
usually, as a protest by the workers or workers against an act of management that is considered to
violate his or their legitimate right.
Grievances typically arise on such questions as discipline, promotion, transfer or dismissal of a
worker, payment of wages, fringe benefits, overtime, retirement benefits, seniority work-rules, leave
rules etc., which are against the practice and affect their rights adversely. In some cases, disputes arise
especially over the interpretation and application of collective agreements.
Such grievances, if not dealt with according to the practice, may embitter the industrial relations and may
result in industrial strife, ‘conflict of rights’ refer to the disputes based on alleged violation of an existing
right or an alleged unfair treatment by the management. There are, more or less definite standard for
resolving a dispute i.e., the relevant provision of the Act or collective agreement, employment contract,
works rules or law, or customs or usage.
Type # 4. Recognition Disputes:
Such type of disputes arises when the management refused to recognise a trade union for
purposes of collective bargaining. Issues under this category differ according to the cause that led the
management to refuse recognition. Here the problem is that of attitude.
However the management refusal may be on the ground that the union requesting for recognition
does not represent a specific number of Workers. In such case, resolution of issue depends upon whether
the rules for recognition of a trade union exist or not. Such rules may be laid down by law, for they may
be Conventional or derived from prevailing practices in the country.
Page 26 of 94
Industrial Dispute – What are the Causes of Industrial Disputes: Economic Causes, Managerial
Causes, Political Causes and More…
There has always been contradiction between the interests of employers and workers. Employer
class has always adopted an indifferent attitude towards workers. Their tendency has always been to
exploit the workers. Lack of human behavior with workers, lack of proper working conditions, low wages
and over-looking the interests of the workers are the things not new for the employers. It is the constant
Endeavour of the employers to keep the lion’s share of the profit with them.
On the other hand, worker class wants good working conditions, more opportunities of
development, participation in management and profit sharing. When employers do not adopt just and co-
operative attitude towards labourers, there spreads discontentment among the latter. What follows is
industrial conflict? When employers are more concerned with their vested interests and pay no attention
to the reasonable and just demands of the workers then the latter indulge in such activities as aggravate
industrial disputes.
Causes of industrial disputes can be divided into four major parts i.e., economic causes,
managerial causes political causes and other causes.
The same are discussed in detail as under:
1. Economic Causes:
Most of the Industrial Disputes are due to economic causes. Directly or indirectly economic causes are at
the back of industrial disputes.
Main economic causes are as under:
(1) Low Wages:
In industries wages are low. As a result, it becomes awfully difficult for the labourers to meet their
minimum necessaries. Labourers demand that wages should commensurate with the amount of work.
Such a demand leads to industrial disputes. Demand for higher wage-rate is the most dominant cause
leading to industrial disputes.
(2) Dearness Allowance:
Increasing cost of living is another factor responsible for industrial disputes. In order to neutralise it,
workers demand additional remuneration in the form of dearness allowance. Rising prices are at the root
of demand for dearness allowance and non-acceptance of this demand leads to industrial dispute.
(3) Industrial Profits:
Workers are an important part of production. Profits of the employers multiply because of the untiring
labour of the workers. That they should not be treated as a part of machine is the persistent demand of
the workers, rather they be considered as partner in production. On the basis of this concept, they
demand share out of the increasing profit. When this profit-sharing demand is rejected by the employers,
industrial dispute crops up.
(4) Bonus:
Demand for bonus is also a cause of industrial dispute. Workers consider bonus as deferred wage.
Demand for payment of bonus constitutes cause of industrial dispute.
(5) Working Conditions:
In India working conditions of the workers are not satisfactory. Obsolescence of machines, lack of safety
provisions, inadequate light arrangement, less moving space, lack of other necessary facilities, are the
normal features of industrial units. Demand for better working conditions on the part of the workers also
contributes to industrial disputes.
(6) Working Hours:
Hours of work is another matter of controversy between employers and workers. Despite legislation to
this effect, it is always the intention of the employers to keep the workers engaged for long hours at low
wages. It is opposed tooth and nail by the workers. Result is industrial dispute.
Other Causes:
(i) Safety of work,
(ii) Modernisation of machines,
Page 27 of 94
(iii) Pension, Gratuity, Provident Fund and other Beneficiary Schemes,

(iv) Medical and accommodation facilities,
(v) Leaves and Leaves with pay,
(vi) Share in Profits.
2. Managerial Causes:
Success of an organisation depends largely on its managerial capacity. Growth of the organisation is
based on the policies of the management. If the management pursues appropriate policies, development
of the industrial unit will be automatic. But many a time, due to wrong policies of the management,
disputes get accentuated.
Managerial causes of industrial dispute are as under:
(1) Non Recognition of Unions:
Employers’ attitude towards trade unions has been antagonistic from the very beginning. They do not
want that labourers should organise themselves. Hence, to prevent the workers from uniting, they refuse
to recognise their unions. It leads to conflict between the employers and the workers. In order to create
rift among the workers they deliberately recognise the rival union.
(2) Violation of Agreements:
Employers and workers do enter into agreements on various issues. On many occasions, the employers
do not enforce these agreements nor do they strictly adhere to them. It also accounts for dispute between
the two parties.
(3) Ill-Treatment by Managers and Supervisors:
Managers and supervisors consider themselves to be superior. It is under the influence of this superiority
complex that they ill-treat the workers. The same is vehemently opposed by the trade unions.
(4) Defective Recruitment Procedure and Employees Development Policies:
Defective Recruitment system also gives rise to industrial disputes. Many a time, workers are recruited
by the middlemen who get bribe from them. They take undue advantage of the helplessness of the
workers. Defective development policies like favoritisms in promotion, unnecessary and biased transfer,
casual approach towards training facilities, on the part of employers also contribute to industrial
disputes.
(5) Wrongful Retrenchment, Demotion and Termination:
Sometimes on account of fall in production labourers are retrenched. Those workers who take active part
in trade union activities are demoted. Sometimes employers terminate the services of the workers
without assigning any reason. All these provocative acts of the employers are not only strongly opposed
by the trade unions but also serve as good cause for industrial disputes.
(6) Selfish Leadership:
Lack of right and effective leadership weakens the trade unions and the employer class takes advantage
of it. In order to serve their selfish ends, these leaders enter into unholy alliance with the employers
against the interests of the workers. Often this also becomes cause of dispute.
(7) Violation of Accepted Code of Conduct:
Code of conduct refers to the terms accepted by both the parties and both the parties are required to
abide by it. Employers agree to all the codes on paper but fail to carry them out in practice. As a result,
workers oppose it.
(8) Collective Bargaining and Workers’ Participation in Management:
In the modern industrial world, labour class is seized with new awakening and is influenced by new
concept of management. Trade unions, therefore, insist on workers’ participation in management. By
collective management they try to protect their interests to the maximum. The employers oppose it. The
inevitable result is industrial dispute.
3. Political Causes:
Political causes are no less significant than economic and managerial causes in accounting for industrial
disputes.
Page 28 of 94
Chief among them are as under:

(1) Influence of Politics:
In a country like India, influence of politics on trade unions is clearly visible. Political parties have been
using their influence on trade unions for their selfish ends. Parties mislead the unions and instigate
industrial unrest.
(2) Trade Union Movement:
Ever since trade union movement got recognition, industrial disputes have multiplied. Many a time trade
unions take undue advantage of their position and this results into industrial dispute.
(3) Strikes against the Government:
During the struggle for independence labour-class had taken leading part in it. Now this class directs its
struggle against the government thereby adding fuel to industrial disputes.
Other Causes:
(1) Government’s inclination to support management.
(2) Internal conflicts in Trade Unions.
(3) Resistance to automation.
(4) Influence of Communist thinking on labourers.
(5) Effect of non-acceptance of Human Relations.
Percentage distribution of Industrial Disputes by causes between the period 2011 and 2012. In the
recent years, indiscipline is major reason for industrial disputes. In 2011, the percentage of industrial
disputes due to indiscipline was 41.6 while this percentage was reduced to 24.2 in 2013. Even that this is
the only reason for industrial disputes.
After indiscipline, wages and allowances are the major factor of causing industrial disputes. In 2011 and
2012, the percentage of industrial disputes due to wages and allowances was 24.9 and 16.3 respectively.
Beside this charter of demand, personnel, bonus etc. are important reasons of industrial disputes.
Industrial Dispute – 5 Negative Impacts: Disruption in Production and Services, Impact on

Employers, Impact on Workers, Impact on Society & Impact on National Economy
An industrial dispute can never be said to be a good choice. Consequences of industrial disputes
are very far reaching, for they disturb the economic, social and political life of a country. They are no less
than a war. In a war, casualties and sufferings are not confined to soldiers fighting on the front, so
stoppage of work due to strike or any other mode resulting in stoppage of work does not affect the
employees or the employers of the struck plant, but it affect the whole society or country.
Though it initially starts locally, a war has every possibility to engulf the entire humanity, so, industrial
disputes may and do occasionally assume proportion affecting the entire economy. Strikes etc., in basic
industries are more harmful engulfing the whole economy. It is like a big stone thrown into a pond
causing ever widening waves till the entire pond is engulfed.
Some of the impacts of industrial disputes are:
Impact # 1. Disruption in Production and Services:
The industrial disputes result in huge wastage of man-days and dislocation of production work. A strike
in public utility concerns like water and electric supply units, posts and telegraph or telephone’s services,
railways or roadways, any system of public conservancy or sanitation, hospitals, defence establishments
etc., disturbs the whole public life and throws the economy out of gear. Consumers are subjected to
untold hardships. If the struck commodity happens to be used in other production operations, then other
producers also suffer.
When industrial dispute results in stoppage of work, supply position of the struck commodity becomes
grim and prices of that commodity shoot up. The position becomes severe if the product is consumer
goods of daily use.
Impact # 2. On Employers:
The employers also suffer heavy losses, not only through stoppage of work, reduction in sale and loss of
market due to none or short supply of the product, but also in the form of huge expenditure on crushing
Page 29 of 94
downs the strikes. They have to undertake publicity and propaganda to put their view point before the
public.
Impact # 3. On Workers:
The workers are also badly affected in more than one ways. They lose their wages for the strike period.
Sometimes, they lose their employment. They have to incur debts to meet their day-to-day expenses.
Future prospects become dim. Disruption in family life, person hardship, mental agonies, tortures, and
tensions develop and persist.
The workers are prosecuted, often intimidated, even victimised or beaten mercilessly by goondas,
repressed by police. If strikes etc., fail, the workers, besides inflicting financial loss, are demoralised,
disappointed and shake their confidence in trade unions.
Impact # 4. On Society/Public:
The public/society too, is not spared. Industrial unrest creates law and order problem, ceasing a huge
additional expenditures out of public exchequer. Further, even when the disputes are settled, strife and
bitterness continue to linger endangering happy social and industrial relations.
Impact # 5. On National Economy:
The industrial disputes also affect the national economy adversely when labour and equipment in the
whole or any- part of the industry are rendered idle by strike or lock-out, national dividend (income)
suffers a lot. It may happen in two ways on the one hand, by impoverishing the workers indulging in the
stoppage of work, it lessens the demand of goods produced by other industries on the other hand, if the
struck industry is such that supply goods and services to other industries, it lessens the supply of them of
raw material or equipment to work. The result is loss in production, ultimately reducing the national
income. Consequently, public expenditure on welfare of public is reduced. Development activities cannot
be undertaken for want of finances.
In nutshell, the impact of industrial disputes is not good irrespective of the fact that succeeds—employer
or employees. Each group employers, employees, consumers, society and the economy—suffers in one
way or the other. So, industrial disputes should be avoided, by the interested parties, threshing out their
differences through collective bargaining and voluntary arbitration.
Industrial Dispute – Measures Taken by Government for Prevention of Disputes: Payment of

Bonus Act, Code of Discipline, Industrial Truce Resolution and More…
Prevention is always better than cure, is the principle for the establishment of machinery for
prevention of industrial disputes before they arise. Various measures have been taken by the
Government for the prevention of industrial disputes.
They are as under:
(I) Payment of Bonus Act:
As payment of bonus is one of the major cause of industrial disputes, the Government of India on the
recommendation of Mehar Committee, appointed to study the entire issue of bonus, enacted the Payment
of Bonus Act 1965 which is applicable to workers earning wages upto Rs. 1,600 p.m. (Basic + D.A.).
The Act is applicable to factories employing at least 20 or more workers. At present, the rate of bonus
payable to industrial workers is minimum 8.33% and maximum 20% of their wages. Bonus Amendment
Act 1980 also covers all banks and public sector undertakings not working for profits.
(II) Code of Discipline:
The Indian Labour Conference in 1958 evolved a Code of Discipline which was ratified by the central
organizations of employers and workers. To ensure better discipline in industry, both the parties
voluntarily agree to maintain and create an atmosphere of mutual trust and cooperation in the industrial
unit/ industry and to settle all the disputes and grievances by negotiations, conciliation and voluntary
arbitration. Both parties will try to avoid direct action.
The Code, inter alia, lays down that:
(a) There shall be no strike or lock-out without giving proper notice to other party.
(b) No unilateral action shall be taken in connection with any industrial matter.
(c) No deliberate damage shall be done to plant and machinery.
Page 30 of 94
(d) Awards and agreements should be speedily implemented.

(e) Any action which disturbs cordial relations should be avoided.
(III) Industrial Truce Resolution:
A joint meeting of the central organisations of employers and employees was convened on
November 3, 1962, in the wake of Chinese aggression. The meeting adopted an Industrial Truce
Resolution agreeing that there should be maximum recourse to voluntary arbitration and envisages that
all complaints pertaining to dismissal, discharge, victimisation and retrenchment of individual workman,
not settled mutually should be settled through arbitration.
The Truce Resolution was aimed at the total elimination of work-stoppage, improvement in
production and productivity, cost reduction etc., In accordance with the recommendation of the Indian
Labour Conference held on July 1, 1963, a high level Standing Committee on Industrial Truce Resolution
was set up under the chairmanship of the Labour Minister to review the implementation of Truce
Resolution in all its aspects. The Standing Committee has since been amalgamated with the Central
Implementation and Evaluation Committee in the Ministry of Labour.
(IV) Tripartite Machinery:
A number of tripartite bodies have been set up for the promotion of industrial peace. The Tripartite
Machinery refers to various bodies composed of representatives of employers, employees and the
Government.
The important tripartite bodies are the following:

(a) The Indian Labour Conference:
It is concerned with matters like promoting uniformity in labour legislations, procedures for the
settlement of industrial disputes etc.
(b) The Industrial Committees:
These committees discuss the specific problems of industries for which they have been set up and submit
their reports to the Indian Labour Conference (ILC), which coordinates their activities.
(c) The Central Implementation and Evaluation Committees:
These Committees are concerned with effective implementation of labour laws, awards, settlements etc.
(d) The Standing Labour Committee:
It considers all matters referred to it by the Indian Labour Conference or by the Central Government
including the suggestions, by the employers, employees and State Governments concerning labour.
(e) The Committee on Conventions:
The Committee examines the ILO conventions and recommendations and explores the possibility or
advisability of ratifying them to Indian conditions.
Industrial Dispute – How do you Settle Industrial Disputes (Machinery for Settlement of Disputes)
When a dispute has arisen i.e., it could not be prevented on voluntary basis, the Industrial
Disputes Act 1947 provides several provisions for settling the disputes. A dispute settlement machinery
has been evolved under the Act.
The machinery for settlement of disputes consists of several bodies which are:
1. Establishment of Works Committees:
In every industrial establishment employing 100 or more workers, it is compulsory to establish a works
committee at the plant level to promote the measures for securing and preserving unity and good
relations between the parties. There are equal number of representatives of workers and employer on
the committee.
The main function of the works of committee is to remove causes of friction between the two parties
which concern the factory life of workers. No mention of functions of works committee have been made
in the Act but however in 1960 a tripartite committee of Indian Labour Conference prepared two lists of
functions one for works to be dealt with and the other for works not to be dealt with by the works
committees.
Page 31 of 94
The works committee is to discuss such problems relating to grievances, complaints, matter of discipline,
welfare problems such as health, safety, training, education and other personal problems which vitally
affect the interests of the workers in general. The functions of these committees are purely of advisory
character and no legal obligation is imposed upon employers to carry out the decisions arrived at in the
meeting of works committee. This body has not played any conspicuous role in the past.
2. Grievance Settlement Authority:
The Industrial Disputes (Amendment) Act 1982 has provided for the setting up of a Grievance Settlement
Authority and for reference of certain individual disputes to such authorities. Any employer employing
one hundred or more workers on anyone day in the preceding twelve months, is required to provide for
a Grievance Settlement Authority for settlement of industrial dispute relating to an individual. Where
such dispute arises, the concerned worker or the trade union of which he is a member, may refer the
dispute to the Authority for settlement. Any such reference shall not be referred to Board or Tribunal.
3. Conciliation Officer:
The appointment of conciliation officer is made by the Central or State Government for a particular
region or industries in the state. The main duty of these officers is to bring the two parties together and
help them resolve their differences. They can do everything to settle the dispute between the two parties
amicably. He is bound to take decision within 14 days or such period as extended by the State
Government from the date of registration of dispute.
If the dispute is settled through his good offices and an agreement is reached, he should send a. report to
the appropriate Government along with a memorandum of settlement signed by the parties to the
dispute. In case, the dispute is not settled he should inform the appropriate Government about his failure,
steps taken and the reasons for not being successful.
4. Court of Inquiry:
Where an industrial dispute remains unresolved by the efforts conciliation officer and the board of
conciliation, the matter is referred to a court of inquiry. The court may consist of one or more
independent persons. It will investigate the whole dispute and submit its report to the Government on
the matters referred to it ordinarily within 6 months from the date of commencement of inquiry.
If settlement is not arrived at by the efforts of the above machinery, a three-tier machinery for
compulsory adjudication is provided under the act. There are three types of semi- judicial bodies, i.e.,
labour courts, industrial tribunals and national tribunals.
5. Conciliation Board:
In case, the conciliation officer fails to resolve the dispute, the Government appoints a board of
conciliation on adhoc basis for a particular dispute consisting of a Chairman and two to four persons
representing the employer and the employees to bring the parties of disputes to sit together and thrash
out their differences as referred to by the Government. The board reports the Government about the
success or failure of its efforts, steps taken and reasons for its failure to bring about a settlement within 2
months from the date of reference of the dispute.
6. Labour Courts:
Such courts have been set up by the State Governments to go into the disputed orders of the employers
dismissal, discharge and suspensions of employees by the management, legality or otherwise of any
order passed by an employer under the standing orders, withdrawal of any concession or privilege,
legality or otherwise or any strike or lock-out etc. These courts will award decision and send report to
the Government.
7. Industrial Tribunals:
The State Government has been empowered to appoint as many industrial tribunals as it thinks proper,
for the adjudication of disputes selecting to wages, hours of work and rest, intervals, leave with pay,
holidays, compensatory and other allowances, bonus, profit sharing, provident fund, gratuity, discipline,
retrenchments closure of establishment etc. The tribunal will consist of a person of the rank of a high
court judge. The adjudication of these tribunals is binding on both the parties.
Page 32 of 94
8. National Tribunal:
Such tribunals are set up by the Central Government for the adjudication of industrial dispute which
involve questions of national importance or which affect industrial establishments situated in more than
one state. It gives decisions on matters referred to it by the Central Government. If any matter is referred
to the National Tribunal by the Central Government the labour courts and industrial courts are barred
from entertaining such disputes and if any such dispute, is pending before labour courts or tribunals,
shall be deemed to be quashed.
Other Important Provisions:
a. Restrictions on Strikes and Lock-Outs:
The Act prohibits strikes and lock-outs in public utilities without sufficient notice as specified in the Act.
The Act also prohibits strikes and lock-outs during pendency of proceedings relating to the dispute
before the concerned authority and certain specified period after that. Further prohibition will also apply
during the period in which a settlement or award is in operation in respect of any of the matters covered
by the settlement or award.
b. Restriction of Layoff and Retrenchment:
The Industrial Disputes (Amendment) Act 1984 has provided that no industrial establishment employing
300 or more workers c-in layoff or retrench a worker without the prior permission of the Government at
least three months before such layoff or retrenchment.
The Act also lays down the conditions of layoff and retrenchment, the right of laid off workmen for
compensation, procedure for closing down an undertaking, compensation to workmen in case of closing
down of undertaking.
c. Essential Services Maintenance (Ordinance) 1981:
The President of India has promulgated an ordinance on 26th July 1981, declaring a ban on strikes in
essential services. These essential services are Railways, Post and Telegraph, Telephone, Ports, Air ports,
Banks, units producing or refining petroleum products public conservancy services, defense
establishments and hospitals etc. The Government has power to declare a service as essential by
notification.
Thus, the Government has provided machinery for prevention and settlement of industrial disputes and
also made certain other provisions to maintain industrial harmony.
3. Authorities under the Act.

The Industrial disputes Act 1947, was enacted in the post-independence era with a view to regulate the
relationships of the employer and employee and to maintain peace and harmonious relations between
the two. Earlier the growth was very slow but in recent years it has taken grown due to growing cases in
the supreme court. The growth of the country in the sense of economic development is dependant upon
the industries and the industries could only run smoothly when there is a harmonious relationship
between the two pillars.
Objectives of the Industrial disputes act 1947

The Industrial dispute act of 1947 was enacted with the following objectives:-
a) To promote industrial peace
b) To do economic justice to the workmen
The objective according to the preamble of the Industrial disputes act 1947 are:
a) To make provisions for investigation and settlement of industrial disputes.
b) The objective of all the labor legislation is to ensure fair wages and to prevent industrial disputes.
Page 33 of 94
Scope and Extent of the Industrial Disputes act 1947

The Industrial disputes act of 1947 extends to the whole of India. it came into enforcement on 1st April
1947.
Principal objects as stated by the supreme court in the case of Workmen of Dimakuchi Tea Estate vs
Management of Dimakuchi Tea Estate AIR 1958 SC
1) The act aims to promote the measures which are helpful in securing good and amity relations between
the employer and the employee.
2) An investigation and settlement of disputes between an employer and the employee, employer and
workmen, workmen and workmen and giving them the right of representation in the trade unions.
3) The legislation also tries to do away with illegal strikes and lockouts.
4) It also helps to provide the relief to the workmen in the matter of lay off, retrenchment, closure of
undertaking, etc.
5) it helps to do Collective Bargaining.
The Industrial disputes act is social legislation which tries to maintain a balance between the interest of
the important pillars of the industrial establishment.
What do you understand by the term Employer?

The term employer has been defined under the industrial dispute act of 1947 under section 2(g) the
employer according to the definition is the person authorized to do the work in the capacity as an
employer under the leadership of either the Central Government or the state government or the local
authority.
What do you understand by the term Industry?

The term Industry is defined under section 2(j) of the act as any business, trade or undertaking
manufacture or calling and includes any calling, service, employment, handicraft or industrial occupation
or avocation of workmen.
an industry exists only where there is a relationship between the employer and the employee and
where the former is engaged in business trade or undertaking and the later is engaged in any calling
service employment or handicraft.
The triple test was laid down in the case of Banglore water supply vs A.Rajappa AIR 1978 SC,
where it was laid down that there should be a systematic activity, organized by the cooperation between
the employer and the employee, for the production of goods and services.
What do you mean by the term workmen?

The term workmen have been defined under section 2(s) of the act which states that workmen
mean a person who is employed in any industry to carry put skilled, unskilled, manual, technical,
operational, clerical or supervisory work.
Authorities under the act:-

There are various authorities under the act such as the works committee, conciliation officer,
conciliation board, courts of inquiry, labour court, tribunal, national tribunal.
Page 34 of 94
Works Committee:
This has been defined under section 3 of the act which says that each industrial establishment
should have a works committee and the works committee will have equal representations from both the
employer and the employee. it is to try to settle the dispute in the first instance through the process of
mediation in the initial stage of the dispute. The works committee also time to time comments upon the
matters in dispute.
Conciliation officer:
Section 4 of the Industrial disputes act 1947 talks about the provisions of the conciliation officer.
it states that the appropriate government i.e. the central government, state government or the local
authority will appoint such number of persons to be the conciliation officer as it thinks fit.
it is the duty of the conciliation officer to mediate and promote the settlement of industrial
dispute. The conciliation officer can be appointed either permanently or for some point of time.
Board of Conciliation:
The board of conciliation are constituted under section 5 by the appropriate government.
The board of conciliation s constituted in order to promote the settlement of industrial dispute.
The board appointed consists of the chairman and two or four other members. under the board
the chairman is the independent person and the other persons appointed in equal numbers which
represents the parties in disputes and the person who represents the party shall be appointed by the
party . the party needs to appoint such representatives within the time prescribed and if the party fails to
appoint the representatives within the time then the appropriate government can appoint the person to
be the representative of the party.
A board needs to work according to the quorum prescribed but if the chairman or the other
member as the case may be ceased to be available the board shall not act until a new chairman or
member as the case may be has been appointed.
Courts of Inquiry:
The section 6 of the act further talks about the constitution of the court of inquiry in order to
conduct inquiry upon the matter in dispute. The court of inquiry to be run by the independent person or
persons as the appropriate government thinks fit. Where the court consists of two or more persons then
any one of them shall be appointed to be chairman.
Labour Court:
Section 7 of the act talks about the constitution of the labor court by the appropriate government. it can
create one or more labor court as it thinks fit for the adjudication of industrial dispute as specified under
schedule II. it consists of one person to be appointed by the appropriate government. the qualifications of
the presiding officer of the court shall be as follows:-
a) if he is or has been a judge of the high court

b) he has for a period of not less than 3 years being a district judge or an additional district judge
c) has held judicial office for not less than 7 years
d) he has been the presiding officer of a Labor Court constituted under any Provincial Act or State Act for
not less than five years.
e) he is or has been a Deputy Chief Labor Commissioner (Central) or Joint Commissioner of the State
Labor Department, having a degree in law and at least seven years' experience in the labor department
including three years of experience as Conciliation Officer.
f) he is an officer of Indian Legal Service in Grade I with years' experience in the grade.
Page 35 of 94
Tribunal:
section 7A deals with the provision of constitution of the one or more tribunal for the adjudication of
dispute relating to the aspects as mentioned in schedule second or third. tribunal to consist of one person
who shall be appointed by appropriate government.
The qualifications of the presiding officer of the tribunal are as follows:-

a) he is, or has been, a Judge of a High Court;
b) he has, for a period of not less than three years, been a District Judge or an Additional District Judge;
c) he is or has been a Deputy Chief Labor Commissioner (Central) or Joint Commissioner of the State
Labor Department,, having a degree in law and at least seven years' experience in the labor department
including three years of experience as Conciliation Officer:
d) he is an officer of Indian Legal Service in Grade III with three years' experience in the grade.
the appropriate government to appoint two persons as assessors to advise the tribunal.
National Tribunal:
section 7B deals with the national tribunal which is appointed by the central government
constitute one or more national tribunal for the adjudication of industrial disputes which in the opinion
of the central government involves questions of national importance or are of such a nature that
industrial establishments situated in more than one state are likely to be interested in or affected by such
disputes. the national tribunal shall be consisted of one person only to be appointed by the central
government. in order to be appointed as the presiding officer of a national tribunal he should be or has
been a judge of a high court. the central government can also appoint two persons as assessors to advise
the national tribunal in the proceeding before it.
Disqualifications for appointment of the presiding officer of labor court, tribunal and national
tribunal:
section 9 c of the act talks about the provision relating to the disqualification of the presiding officer
which states that if the person is not an independent person or if he has attained the age of 65 years then
he cannot be appointed as the presiding officer of the labor court or tribunal or national tribunal by the
central government.
4. Strike and Lockout.

Introduction
Collective bargaining is a mechanism through which employers (organizations) and trade unions
can agree on fair compensation and working conditions. It is also a base for establishing appropriate
labour relations. Strike is a vital part of the collective bargaining process because it evaluates the
economic bargaining power of each party involved and compels both parties to understand, realise, and
evaluate the necessity it has for each other’s contribution. As the strike continues, both the parties bear
losses- the savings of the employees involved in the strike continue to reduce, while the organization also
bears huge losses due to the stoppage of production which affects the bottom line. Lockout is exactly the
opposite of strike. Strike is a weapon that is in the hands of the workers to force the employer to agree on
their demands. Similarly, a lockout is a weapon in the hands of the management to compel the workers to
further negotiate on their demands relating to the conditions of employment, in the favour of the
employer.
What is a strike?
A strike is a stoppage of work initiated by the refusal of most workers to perform their work. A strike is
usually a consequence that happens due to grievances that are not addressed by the employer on a
timely basis.
Page 36 of 94
Strikes became a popular phenomenon at the time of the Industrial Revolution when mass workers
became vital in factories and mines. In most nations, strike actions were quickly made illegal, as
employers comparatively had more political power than the employees.
The right to strike by employees or workers is a well-recognised tool that is available to workers
to negotiate with the employer and force the employer to agree on their demands. In our daily lives, very
frequently we see news regarding workers going on strikes so that their demands in regards to their
wages, benefits and working conditions are accepted by their employer.
The most important ingredients of a strike

The strike must be in an establishment that falls under the definition of “industry” as specified in
the Industrial Disputes Act, 1947.
There should be a relation of employer-employee between the employer and the striking
workmen.
There should be a stoppage of work by the workmen.
Types of strikes
Following are some of the different types of strikes:
1. A general strike is a type of strike where the workers join together for a common reason or
demand and keep themselves from work, depriving the employer of their workers to carry on
their business operations.
2. A “token strike”, which is for a shorter period, for example for a few hours, and its main aim is
to draw the attention of the Management by showing cooperation among the workers, and it is
generally before the general strike.
Why do workmen strike?
Most strikes are undertaken by workers’ unions at the time of collective bargaining. The main aim
of collective bargaining is to obtain an agreement between the workers’ union and the employer on the
terms and conditions of employment.
Sometimes, workmen decide to strike without the intervention or approval of a workers’ union.
This happens either because the workers’ union refuses to support the reason for a strike as it seems
invalid, or the workers who are initiating a strike are not a part of a workers’ union. Such strikes are
usually considered unofficial.
Strikes initiated without obtaining official approval of the workers’ union are also known as
wildcat strikes. In many nations, wildcat strikes are not considered legal and may lead to fines or
penalties for the union members who engage themselves in such types of strikes.
What happens during a strike?
A strike may consist of the workmen who refuse to come to work or march outside the factory or
office premises to prohibit other workmen from working or conducting any business with the employer.
It rarely happens that workers will leave the workplace, but will not agree to do their work or to leave
the workplace. This is called a sit-down strike.
Significant case laws
In the case of TISCO Ltd vs Workmen, the verdict was that if the employer replaces the weekly day-
off Sunday with another day-off without notifying the workmen in advance then such change will not be
considered as a legal change. Therefore, the refusal of workmen to work on the day-off which was not a
Sunday did not amount to strike.
In the case of North Brook Jute Co. Ltd. vs Workmen, the verdict was that when a scheme was
introduced in contradiction to Section 33 of the Industrial disputes Act, 1947 then the refusal to act
according to that scheme would not be considered as a strike.
In the case of Punjab National Bank vs All India Punjab National Bank Employees’ Federation, the
verdict was that a pen-down strike would be considered as a strike because here the workers do enter
the work or office premises but do not agree to perform their work.
Page 37 of 94
In the case of T.K. Rangarajan vs Government of Tamil Nadu, the verdict was that the right to strike
is not a fundamental right. In addition, it is also neither legal nor a statutory right. A similar thing was
recognised in the case of B.R. Singh vs Union of India.
What methodologies do companies utilize to deal with a strike?

Most strikes declared by workers’ unions are usually predicted; as they usually take place after
the employment contract has expired.
Preparation to deal with a Strike: Companies or Factories which manufacture goods for sale will
frequently increase the level of their inventories before a strike takes place. Salaried workmen may be
called upon to take the place of workmen who have engaged in strike, which may require them to take
training in advance. If the organization has multiple work locations, workmen may be redeployed to
meet the business needs of the decreased workmen.
Organizations may also take out strike insurance before an expected strike, which may help to
cover the losses which would cause because of the strike.
One of the weapons utilized by the worker’s unions is the strike action. Some organizations may
refuse entirely to negotiate with the workers’ union and may respond to the strike by hiring workmen in
replacement of the striking workmen. This may create a difficult situation for strikers as they need to
take a call if they have to stick to their original plan, or if there is a possibility that the strike may be lost?
Strikers might also wonder how long will the strike last? Will their employment still be there if the strike
fails?
Organizations that engage the services of strikebreakers usually take advantage of these anxieties
among strikers when they attempt to convince them to end the strike.
Another remedy to a strike is a lockout, which is a way of work stoppage in which an employer
(organization) does not allow workmen to continue their work.
What is a lockout?
Lockout is the opposite of a strike. Strike is a tool in the hands of the workmen to compel the
management to agree to their demands. Similarly, lockout is a tool in the hands of the management to
force the workmen to further negotiate on their demands which are related to the terms and conditions
of the workers’ employment.
As per the Industrial Disputes Act, 1947, Lock-out means the temporary closing of a place of
employment, or the suspension of work, or the refusal by an employer to continue to employ any number
of persons employed by him.
This definition consists of the following three components of a lockout:
1. Temporary closing of a place of employment; or
2. Suspension of work, or
3. Refusal to continue to employ any number of persons employed by the employer.
When a lockout takes place, the workers are asked by the management to stay away from work, and
therefore, they are not obliged to attend work.
Case laws
In the case of Shri Ramchandra Spinning Mills vs State of Madras, it was seen that if the employer
closes his place of business as a means of reprisal or as an instrument of coercion or as a mode of
exerting pressure on employees or generally speaking when his act is what may be called an act of
belligerency there will be a lock-out.
In the case of Lord Krishna Sugar Mills Limited Saharanpur vs State of UP, the verdict was that a lock-out
may sometimes be not at all connected with economic demands; it may be resorted to as a security
measure.
Page 38 of 94
In the case of Lakshmi Devi Sugar Mills Limited vs Ram Sarup, the verdict was that in the case of
lockout there is neither alteration to the prejudice of workmen of the conditions of the service
application to them nor a discharge or punishment whether by dismissal or otherwise.
Conclusion
Thus, we can conclude that Strikes and Lockouts are effective weapons for both employers and
employees who are engaged in the process of Collective Bargaining, provided that such weapons are
utilized lawfully and ethically.
India in the present context of economic development programs cannot afford the unqualified
right to the workers to strike or to the employer to lock-out. Compulsory arbitration as an alternative to
collective bargaining has come to stay. The adoption of compulsory arbitration does not, however,
necessarily mean denial of the right to strike or stifling of the trade union movement. If the benefits of
legislation, settlements and awards are to reach the individual worker, not only the trade union
movement has to be encouraged and its outlook broadened but the laws have also been suitably tailored.
The existing legislation and judicial pronouncements lack the breadth of vision. Indeed, the statutory
definitions of strike and lock-out have been rendered worse by a system of interpretation that is devoid
of a policy-oriented approach and which lays undue stress on semantics.
5. Lay off, Retrenchment and Closure.

Lay-Off, Retrenchment and Closure are three case scenarios contemplated in the Industrial
Disputes Act, 1947, which essentially results in employees losing their jobs. Nonetheless, this is not a
pressure tactic from the part of the employer. These are rather scenarios where situations compel an
employer to resort to denying employment to their employees. The Industrial Disputes Act has come up
with formal definitions and has set out laws which govern these case scenarios.
This is an Act which came into force in the year 1947. The objective of the act was to promote
industrial peace by facilitating the investigation and settlement of industrial disputes through
negotiation. It is labor legislation to protect the workmen against victimization by employers and to
ensure social justice to both employers and employees. The unique object of the Act is to promote
collective bargaining and to maintain a peaceful atmosphere in industries by avoiding illegal strikes and
lockouts. It also has provisions for regulation of retrenchment and lay-off.
Now, having said that, let us specifically examine what lay-off, retrenchment, and closure are. At
the outset, we shall define each one of these case scenarios in detail.
Lay-Off
To start off, let us look at how the act defines the concept of Lay-off. The term ‘lay-off’ has been defined as
the failure, refusal or inability of an employer on account of the shortage of coal, power or raw materials
or the accumulation of stocks or the breakdown of machinery or natural calamity or for any other
unconnected reason to give employment to a workman whose name is borne on the muster rolls of his
industrial establishment and who has not been retrenched.
Essentially, a lay-off is a condition where the employers are constrained to deny work to their workforce
owing to conditions that bring forth a temporary inability to keep their business going. The said case
scenario can happen only in a continuing establishment.
Essentials: The conditions where Lay-off could be brought into play are:
• There has to be a failure, refusal or inability of an employer
• This failure, refusal or inability should be an offshoot of the shortage of coal, power or raw
materials or the accumulation of stocks or the breakdown of machinery or natural calamity or for
any other unconnected reason
• The names of the laid-off workers should necessarily feature on the muster rolls of the
establishment
• The said workers should not have been retrenched
Page 39 of 94
Special Provisions: The employer cannot, without prior permission from the appropriate government,
lay-off an employee featuring on the muster rolls of the establishment A copy of the said application has
to be given to the concerned workmen as well. If the lay-off happened where the workmen (other
than badli workmen or casual workmen) of an industrial establishment, being a mine, owing to reasons
of fire, flood or excess of inflammable gas or explosion, the employer, in relation to such establishment,
shall, within a period of thirty days from the date of commencement of such lay-off, apply in the
prescribed manner, to the appropriate Government or the specified authority for permission to continue
the lay-off. The said application will be considered and a reasonable opportunity to be heard shall be
given to the employer as well as the workmen. After considering the same, the appropriate government
may or may not grant the employer to close down. Even here, if the government does not respond within
sixty days from application, the permission will be deemed to have been granted. There are provisions
for review of the said decision by the authority suo-moto or in response to an application.
Compensation for Laid-Off period: A workman who is laid-off is entitled to compensation equivalent to
50 percent of the total basic wages and dearness allowance for the period of lay-off. The said
compensation can be availed only if the employee has done a continuous service of at least one year; this
will be detailed in an upcoming section of this article. Along with this, the muster rolls of the
establishment should bear the worker’s name to avail of the compensation. A badli or casual worker
cannot avail of such compensation. Refusal to accept alternative employment, absence from the
establishment, strike or deliberate slowing down of production could be grounds that would entail
disentitlement to such compensation.
If such Lay-off exceeds 45 days, the employer can either keep paying such lay-off compensation or
retrench the workers. Nonetheless, retrenchment should necessarily be applied abiding by the procedure
set out by the statute; this will be described in detail in the upcoming section which deals with
retrenchment.
Retrenchment
The Act defines “Retrenchment” as the termination by the employer of the services of a workman for any
reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but doesn't
include-
(a) Voluntary retirement of the workman; or
(b) Retirement of the workman on reaching the age of superannuation if the contract of employment
between the employer and the workman concerned contains a stipulation in that behalf; or
Termination of the service of the workman as a result of the on-renewal of the contract of employment
between the employer and the workman concerned on its expiry or of such contract being terminated
under a stipulation in that behalf contained therein; or
(c) Termination of the service of a workman on the ground of continued ill-health;
Here, the key ingredient is the termination of a workman from service, by the employer. This does not
mean the employer can retrench a worker as a punishment by way of disciplinary action. Further, this
scenario strictly does not include the above-mentioned conditions contemplated under the subsection.
Special Provisions: It is pertinent to note that a worker who has served for at least a year of continuous
service cannot be retrenched unless served a notice three months in advance and prior permission from
the appropriate government. The said application has to be submitted by the employer along with the
reasons for such retrenchment. The said application will be taken into consideration and scrutinized
through an inquiry. They shall provide an opportunity to be heard for both sides and may decide on the
outcome of the application for reasons recorded in writing. If there’s no reply from the appropriate
government for a period of sixty days from the date of application, the permission shall be deemed to
have been granted. Further, it is to be noted that the said decision could be reviewed by the said
appropriate government suo-moto or on application from any of the sides.
Page 40 of 94
Closure
The Act defines “Closure” as the permanent closing down of a place of employment or part thereof. Here,
the employer is constrained to close the establishment permanently. Nonetheless, the due procedure has
to be complied with when it comes to rolling out a plan of closure; the said procedure, as set out by the
Act, has been detailed below. These procedures, nonetheless, do not apply to an undertaking set up for
the construction of buildings, bridges, roads, canals, dams or for other construction work.
Special Provisions: The employer intending to do a closure of his establishment has to necessarily apply
at least ninety days in advance to the appropriate government. A copy of the said application has to be
given to the representatives of the workmen as well. The said application will be considered and a
reasonable opportunity to be heard shall be given to the employer as well as the workmen. After
considering the same, the appropriate government may or may not grant the employer to close down.
Even here, if the government does not respond within sixty days from application, the permission will be
deemed to have been granted. A similar provision for review of the decision exists even here.
Continuous Service
One year of continuous service entails an entitlement for compensation under the Industrial Disputes Act
(1). A workman is said to be in continuous service if he is for that period in uninterrupted service.
Interruption owing to sickness authorised leave, an accident, a strike which is not illegal, a lock and a
cessation of work which is not due to the fault of the workman will not be taken into consideration for
calculating the period of continuous service.
A workman could be deemed to have had one year of continuous service even if the worker hasn’t
had a year of continuous service if the worker was in employment for twelve calendar months preceding
the date with reference to which calculation is to be made, and in the course of these twelve months, he
actually worked for not less than one hundred and ninety days in the case of employment in a mine and
two hundred and forty days in any other case.
The said continuous service shall also include the days laid off, days on earned leave and days
taken off owing to temporary disablement owing to accident arising out of or in the course of
employment. Maternity leave taken, not exceeding twelve weeks shall also be counted in continuous
service in case of female workers.
Bottom Line
Although employers may be forced to deprive their employees, invoking the case scenarios as explained
above, the Industrial Dispute Act has been successful in setting out standards of mutual respect and
requirement for solid reasons as preconditions to bringing these into play. These provisions aim at
protecting the worker’s rights while respecting the employer’s point of view as well.
6. Award 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
Page 41 of 94
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.
What is award?
The judgment of an arbitrator is called his Award. Award (Judgment) of Arbitrators under section 10A is
an Award.
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 an arbitration award made under section 10A.
Page 42 of 94
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 (Judgment) of Arbitrators under section 10A is an award.
What is Settlement?
According to Section 2 (p) of the Industrial Dispute Act, 1947 “Settlement” means a settlement
arrived at in the course of conciliation proceeding and includes a written agreement between the
employer and workmen arrived at otherwise than in the course of conciliation proceeding where such
agreement has been signed by the parties thereto in such manner as may be prescribed and a copy
thereof has been sent to an officer authorised in this behalf by the appropriate Government and the
conciliation officer.
Procedure for Settlement of Industrial Disputes

The Industrial Disputes Act, 1947 provides procedure for settlement of industrial disputes, which
must be followed in all “public utility service”, has been defined in section 2 (n) of the Act so as to include
“any railway, postal, telegraph or telephone service that supplies power, water and light to the public,
any system of public conservancy or sanitation, any section of an industrial establishment on the working
of which the safety of the establishment or the workmen employed therein depend and any industry
which keeping in view the public emergency has been declared as such by the appropriate Government”.
As laid down in the Act a dispute should first go through the process of conciliation before it could be
referred to the appropriate authorities for adjudication33. Where any industrial dispute exists or is
apprehended, the Conciliation Officer may or where the dispute relates to a public utility service and a
notice under Section 22 has been given shall hold conciliation proceedings in prescribed manner.
Conciliation proceedings can be stated in case of dispute that actually exists or when there is
reasonable ground to apprehend that an industrial dispute is likely to come into existence unless
something is done to prevent or where both parties to dispute approach the Government separately for
conciliation. Conciliation proceedings are deemed to have been started from the date on which a notice
issued to the parties to appear before the conciliation officer who may meet them jointly or separately.
The Conciliation Officer must submit his report to the Government within fourteen days of the
starting of conciliation proceedings. During this period he tries to bring about a fair and amicable
settlement between the parties to dispute. If a settlement arrived at, the Conciliation Officers will send a
report to the Government along with a memorandum of settlement duly signed by both parties. This
settlement come into force from the date agreed upon by the parties to dispute or in its absence the date
on which it was signed by them and is binding for a period of six months unless agreed upon otherwise,
and after the period afore said, until expiry of two months from the date on which a notice in waiting of
the intention to terminate the settlement is given by one of the parties to the other party or parities to
the settlement. Such a settlement is binding on all parties to the industrial dispute, to the employer, his
heirs, successors or assignees and to the workmen employed in the establishment on the date of the
dispute and all the persons who subsequently become employed therein. If no settlement is reached by
the parties, the conciliation officer will submit his report to the appropriate Government stating the
reasons for which he thinks no settlement could be arrived at as well as the facts of the case.
Action by the Government:

On receipt of the report from the Conciliation Officer, the Government will come to a decision on whether
the circumstances and the facts of the case as such to justify a further reference. The Government has to
arrive at ‘prima facie’ conclusion that the nature of the dispute justifies a further reference. If in the
Page 43 of 94
opinion of the Government, there is a scope of arriving at a settlement by further conciliation efforts, it
may refer the case to the Board of Conciliation.
Collective Bargaining as a method of Settlement of Industrial Disputes

Collective bargaining as such is one of the most developed in Indian history since independence,
and deserves the attention of all who are concerned with the preservation of industrial peace and
implement of industrial productivity. In the ‘laissez faire’ the employers enjoyed unfettered rights to hire
and fire. They had much superior bargaining power and were in a position to dominate over the
workmen. There are some routine criticism of the adjudicatory system i.e., delay, expensive.
Governmental interference in referrals and uncertain outcome. Therefore the parties to the
industrial dispute are coming closure to the idea that ‘direct negotiations provide better approach to
resolving key deference over wages and other conditions of employment.
The system of collective bargaining as a method of settlement of industrial dispute has been
adopted in industrially advanced countries. The common law emphasis to individual contract of
employment is shafted to collective agreement negotiated by and with reprehensive groups.“The
Industrial Disputes Act, 1947” which provides for the machinery for the settlement of industrial disputes.
Distinction between Award and Settlement

No Award Settlement
Section 2(b) of the Industrial dispute Act 1947 Section 2(p) of the Industrial dispute Act 1947
1
defines Award. defines Settlement.
Settlement means a settlement arrived at in the
course of conciliation proceeding and includes a
Award means an interim or a final determination written agreement between the employer and
of any industrial dispute or of any question workmen arrived at otherwise than in the course
relating thereto by any Labour Court, Industrial of conciliation proceeding where such agreement
2
Tribunal or National Industrial Tribunal and has been signed by the parties thereto in such
includes an arbitration award made under manner as may be prescribed and a copy thereof
Section 10-A. has been sent to an officer authorized in this
behalf by the appropriate Government and the
It is the decision given by the arbitrator, Labour It is arrived at as a result of conciliation between
3
Court or Industrial Tribunal. the parties to the settlement.
It resembles the judgment of a Court. It resembles a gentleman agreement. It is signed
4
It is to be signed by the Presiding Officer. by the parties to the dispute.
On whom Awards and Settlements are binding-
According to Section 18 of the Industrial Disputes Act, 1947 Awards and Settlements are binding on the
following persons –
A settlement arrived at by agreement between the employer and workman otherwise than in the
course of conciliation proceeding shall be binding on the parties to the agreement.
Subject to the provisions of sub-section (3), an arbitration award which has become enforceable
shall be binding on the parties to the agreement who referred the dispute to arbitration.
A settlement arrived at in the course of conciliation proceedings and an award of a Labour Court,
Tribunal or National Tribunal shall be binding on-
Page 44 of 94
All parties to the industrial dispute;

All other parties summoned to appear in the proceedings as parties to the dispute, unless the
Board, arbitrator Labour Court, Tribunal or National Tribunal, as the case may be, records the opinion
that they were so summoned without proper cause;
Where a party referred to in clause (a) or clause (b) is an employer, his heirs, successors or
assigns in respect of the establishment to which the dispute relates;
All persons who were employed in the establishment or part of the establishment on the date of
the dispute and all persons who subsequently become employed in that establishment or part.
Penalty for breach of Settlement or Award

If any person who commits breach of any terms of a settlement or Award is liable for punishment. The
punishment provided for is imprisonment which may extend to 6 months or with fine or with both.
Period of operation of Awards and Settlement

Section 19 of the Industrial Disputes Act 1947 provides for the period of operation of Award and
Settlement.
A settlement shall come into operation on such date as is agreed upon by the parties to the
dispute, and if no date is agreed upon, on the date on which the memorandum of the settlement is signed
by the parties to the dispute.
Such settlement shall be binding for such period as is agreed upon by the parties, and if no such
period is agreed upon, for a period of six months from the date on which the memorandum of settlement
is signed by the parties to the dispute, and shall continue to be binding on the parties after the expiry of
the period aforesaid, until the expiry of two months from the date on which a notice in writing of an
intention to terminate the settlement is given by one of the parties to the other party or parties to the
settlement.
An award shall, subject to the provisions of this section, remain in operation for a period of one
year from the date on which the award becomes enforceable under section 17A.
Provided that the appropriate Government may reduce the said period and fix such period as it thinks fit:
Provided further that the appropriate Government may, before the expiry of the said period, extend the
period of operation by any period not exceeding one year at a time as it thinks fit so, however, that the
total period of operation of an award does not exceed three years from the date on which it came into
operation.
Where the appropriate Government, whether of its own motion or on the application of any party
bound by the award, considers that since the award was made, there has been a material change in the
circumstances on which it was based, the appropriate Government may refer the award or a part of it to
a Labour Court, if the award was that of a Labour Court or to a Tribunal, if the award was that of a
Tribunal or of a National Tribunal, for decision whether the period of operation should not, by reason of
such change, be shortened and the decision of Labour Court or the Tribunal, as the case may be on such
reference shall be final.
Conclusion:
A settlement is an agreement reached among the parties to a workers' compensation claim. This
includes you, your employer and the workers' compensation insurer (unless your employer is self-
insured). This is a type of contract, and it may bar you from seeking further compensation for your injury.
An award, on the other hand, is granted to you by the workers' compensation court. This may
include medical benefits or other types of workers' compensation awards based on the specifics of your
injury. For example, a judge can order - or an insurance company can admit for - temporary and
permanent disability benefits. This isn't a settlement. You don't have to sign away any rights to get these
benefits.
Page 45 of 94
If you need help determining whether you received an award or a settlement, we can help. We can
review your situation and help you understand your legal options. We can also advise you before you
accept an award or settlement. At every stage of your case, we will work to ensure that you receive the
full and fair benefits you need under Colorado's workers' comp laws.
According to Section2(p) of the Industrial Dispute Act, 1947 “Settlement” means a settlement
arrived at in the course of conciliation proceeding and includes a written agreement between the
employer and workmen arrived at otherwise than in the course of conciliation proceeding where such
agreement has been signed by the parties thereto in such manner as may be prescribed and a copy
thereof has been sent to an officer authorized in this behalf by the appropriate Government and the
Page 46 of 94
MODULE 3:
MRTU & PULP, 1971
1. Concept – Industry, Labour Courts, Unfair Labour Practices etc.
2. Authorities within the Act.
3. Recognition of Union and its rights with obligations.
4. Illegal Strikes and Lockouts.
5. Unfair Labour Practices.
6. Power of Courts and Penalties.
1. Concept – Industry, Labour Courts, Unfair Labour Practices etc.

The law identifying with work and job is called Industrial law or labour law in India. The meaning
of MRTU & PULP Act, 1971 is the Maharashtra Recognition of Trade Unions and Prevention of Unfair
Labour Practices Act, 1971. By Government Resolution, Industries, and Labour Department, No. IDA.
1367-LAB-II, dated the 14th February 1968, the Government of Maharashtra appointed a Committee
called “the Committee on Unfair Labour Practices” for defining certain activities of employers and
workers and their organizations which should be treated as unfair labour practices and for suggesting
action which should be taken against employers or workers, or their organisations, for engaging in such
unfair labour practices. On the basis of the report submitted by the committee this Act was enacted.
It is Maharashtra Act I of 1972. The Act received an assent from the President on 13th January 1972 and
was published in Maharashtra Government Gazette Part IV on 1st February 1972.
Objects of the MRTU & Pulp Act, 1971.

The objects of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour
Practices Act, 1971 are given in the preamble of the Act. They are as follow:
• To provide for the recognition of trade unions for facilitating collective bargaining for certain
undertakings;
• To state the rights and obligations of trade unions;
• To confer certain powers on unrecognized unions;
• To provide for declaring certain strikes and lockouts as illegal strikes and lockouts;
• To define and provide for the prevention of certain unfair labour practices;
• To constitute courts – as independent machinery –
o To carry out the purposes of the Act;
o To accord recognition to trade unions; and
o To enforce the provisions of the Act relating to unfair labour practices.
• To provide for matters connected with the above purposes.
Section 1: MRTU & PULP Act, 1971: Short Title:
This Act may be called the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour
Practices Act, 1971.
Section 2: MRTU & PULP Act, 1971: Extent, Commencement, and Application:
(1) This Act extends to the whole of the State of Maharashtra.
(2) It shall come into force on such date as the State Government may, by notification in the Official
Gazette, appoint; and different dates may be appointed for different areas and for different provision of
this Act.
(3) Except as otherwise hereinafter provided, this Act shall apply to the industries to which the Bombay
Industrial Relations Act, 1946, Bom. XI of 1947, for the time being applies, and also to any industry as
defined in clause (j) of section 2 of the Industrial Disputes Act, 1947, XIV of 1947, and the State
Government in relation to any industrial dispute concerning of such industry is the appropriate
Government under that Act :
Provided that, the State Government may, by notification in the Official Gazette, direct that the provisions
of this Act shall cease to apply to any such industry from such date as may be specified in the notification;
Page 47 of 94
and from that date, the provisions of this Act shall cease to apply to that industry and, thereupon, section
7 of the Bombay General Clauses Act, 1904, Bom. I of 1944, shall apply to such cess or, as if this Act has
been repealed in relation to such industry by a Maharashtra Act.
Definitions of MRTU & PULP Act

Some important terms under section 3 of the MRTU & PULP Act 1971
1. Bombay Act
A Bombay act states to Bombay industrial relates act, 1946 (section 3, Clause 1)
2. Central Act
Central act mentions to industrial disputes act, 1947 (section 3, Clause 2)
3. Employee
An employee refers as a workman to industry (section 3, clause 5)
4. Employer
An employer states relation to industry ad employee (section 3, clause 14)
5. 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.
1. 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.
2. 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.
Page 48 of 94
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.
Solved Example on METU and PULP act

Question: Under which committee MRTU & PULP Act had launched?
1. NLRA
2. Tripartite
3. Both A & B
4. None of the above
Answer: The right answer is the tripartite committee. They took imitative in 1968 to develop a balance
between employers and union to diminish industrial disputes and fast growth of a business.
Constitution of Labour Court:

Para 1 of Section 6 of MRTU & PULP Act, 1971 provides for the constitution of a Labour Court. The
provisions are as under:
The State Government will constitute one or more Labour Courts, by Notification in the Official Gazette,
having jurisdiction in such local areas, as may be specified in such notification, and will appoint persons
having the prescribed qualifications to preside over such Courts.
Qualifications:
Para 2 of Section 6 of MRTU & PULP Act, 1971 provides for the qualification required by a person to be
the judge of a Labour Court. The provisions are as under:
The person should possess qualifications (other than the qualification of age), prescribed under Article
234 of the Constitution for being eligible to enter the judicial service of the State of Maharashtra; and is
not more than sixty years of age.
Duties and Power of Labour Court:

Section 7 of MRTU & PULP Act, 1971 gives duties of a Labour Court.
It is a duty of the Labour Court to decide complaints relating to unfair labour practices described in item
1 of Schedule IV and to try offences punishable under this Act.
Constitution of Industrial Court:

Section 4 of MRTU & PULP Act, 1971 provides for the constitution of an Industrial Court. The provisions
are as under:
1. The State Government shall by notification in the Official Gazette, constitute an Industrial Court.
2. The Industrial Court shall consist of not less than three members, one of whom shall be the President.
3. Every member of the Industrial Court shall be a person who is not connected with the complaint referred
to that Court, or with any industry directly affected by such complaint: Provided that, every member shall
be deemed to be connected with a complaint or with an industry by reason of his having shares in a
company which is connected with, or likely to be affected by, such complaint, unless he discloses to the
State Government the nature and extent of the shares held by him in such company and in the opinion of
the State Government recorded in writing, such member is not connected with the complaint or the
industry.
4. Every member of the Industrial Court shall be a person who is or has been a Judge of a High Court or is
eligible for being appointed a Judge of such Court : Provided that, one member may be a person who is
Page 49 of 94
not so eligible, if he possesses in the opinion of the State Government expert knowledge of labour or
industrial matters.
Duties of Industrial Court:

Section 5 of MRTU & PULP Act, 1971 defines the duties of the Industrial Court. It shall be the duty of the
Industrial Court –
1. to decide an application by a union for grant of recognition to it;
2. to decide an application by a union for grant of recognition to it in place of a union which has already
been recognized under this Act;
3. to decide on an application from another union or an employer for withdrawal or cancellation of the
recognition of a union;
4. to decide complaints relating to unfair labour practices except unfair labour practices falling in item 1 of
Schedule IV;
5. to assign work, and to give directions, to the Investigating Officers in matters of verification of
membership of unions, and investigation of complaints relating to unfair labour practices;
6. to decide references made to it on any point of law either by any civil or criminal court; and
7. to decide appeals under section 42.
Appointment of Investigating Officer:

Section 8 of MRTU & PULP Act, 1971 provides provision for appointment of investigating officers.
The State Government may, by notification in the Official Gazette, appoint a such number of Investigating
Officers for any area as it may consider necessary, to assist the Industrial Court and Labour Courts in the
discharge of their duties.
Duties of Investigating Officer:

Section 9 of MRTU & PULP Act, 1971 gives duties of investigating officer.
• The Investigating Officer is under the control of the Industrial Court, and he/she exercises powers and
perform duties imposed on him by the Industrial Court.
• It is the duty of an Investigating Officer to assist the Industrial Court in
matters of verification of membership of unions, and assist the Industrial and Labour Courts for
investigating into complaints relating to unfair labour practices.
• It is the duty of an Investigating Officer to report to the Industrial Court, or as the case may be, the
Labour Court the existence of any unfair labour practices in any industry or undertaking, and the name
and address of the persons said to be engaged in unfair labour practices and any other information which
the Investigating Officer may deem fit to report to the Industrial Court, or as the case may be, the Labour
Court.
Special Powers of Investigating Officers:

Section 37 of MRTU & PULP Act, 1971 gives special powers conferred on investigating officer.
• An Investigating Officer shall exercise the powers conferred on him by or under this Act, and shall
perform such duties as may be assigned to him, from time to time, by the Court.
• For the purpose of exercising such powers and performing such duties, an investigating Officer may,
subject to such conditions as may be prescribed, at any time during working hours, and outside working
hours after reasonable notice, enter
o any place used for the purpose of any undertaking;
o any place used as the office of any union;
o any premises provided by an employer for the residence of his employees, and shall be entitled to
call for and inspect all relevant documents which he may deem necessary for the due discharge of
his duties and powers under this Act.
Page 50 of 94
• Such powers of entry and inspection can be exercised at any time during working hours. Outside working
hours, such powers can be exercised only after giving reasonable notice to the affected person or
persons. Moreover, these powers are to be exercised subject to such conditions may be prescribed.
• All particulars contained in, or information obtained from, any document inspected or called for under
sub-section (2) shall, if the person, in whose possession the document was, so requires, be treated as
confidential.
• An Investigating Officer may, after giving reasonable notice, convene a
meeting of employees for any of the purposes of this Act, on the premises where they are employed and
may require the employer to affix a written notice of the meeting at such conspicuous place in such
premises as he may order, and may also himself affix or cause to be affixed such notice.
The notice shall specify the date, time and place of the meeting, the employees or class of employees
affected, and the purpose for which the meeting is convened : Provided that, during the continuance of a
lock-out which is not illegal, no meeting of employees affected thereby shall be convened on such
premises without the employer’s consent.
• An Investigating Officer shall be entitled to appear in any proceeding under this Act.
• An Investigating Officer may call for and inspect any document which he has reasonable ground for
considering to be relevant to the complaint or to be necessary for the purpose of verifying the
implementation of any order of the Court or carrying out any other duty imposed on him under this Act,
and for the aforesaid purposes the Investigating Officer shall have the same powers as are vested in a
civil court under the Code of Civil Procedure, 1908, (V of 1908) in respect of compelling the production of
documents
2. Authorities within the Act.

Divided into Labour Court and Industrial Court which is tabulated below for seamless understanding:-
Labour Court
• Constituted under Section 6 of the Act • State Government shall by notification in the Official Gazette,
constitute one or more Labour Courts, having jurisdiction in such local areas • State Government shall
appoint persons having the prescribed qualifications to preside over such Courts as prescribed under
Article 234 of the Constitution for being eligible to enter the judicial service of the State of Maharashtra •
Person shall not be more than sixty years of age.
Industrial Court
• Constituted under Section 4 of the Act • State Government shall by notification in the Official Gazette,
constitute an Industrial Court • Consist of not less than three members, one of whom shall be the
President • Every member of the Industrial Court shall be a person who is or has been a judge of a High
Court or is eligible for being appointed a Judge of such Court
CASE LAWS WHERE THIS ACT HAS BEEN APPLIED As specified under Section 44 of the Act, the
Industrial Court shall have superintendence over all Labour Courts, the same has been reflected in the
case Clifford Rebello v Hotel Oberoi Towers, here writ petition was moved before the Bombay High Court
by the petitioner against the interim order passed by the Ninth Labour Court. The learned counsel of
Respondent sought to rely upon the judgment of this Court in the Case of Engineering Employee’s Union
v Devidayal Rolling and Refineries (Private) Limited, wherein it is clearly ruled that the challenge to
award of Labour Court before the High Court cannot be entertained when the alternative and equally
efficacious remedy by way of revision under Section 44 of the said Act is available. The petition was
disposed of with a direction to the Labour Court to expedite the hearing of the matter. SCHEDULE IV –
General Unfair Labour Practices on the part of employers This Schedule has 10 items listed each of which
explains the general unfair labour practice on part of the employers. One of it is Item No 5 as specified
below:- Item 5. To show favouritism or partiality to one set of workers, regardless of merits.
Page 51 of 94
The reference for the same can be drawn to the case B.E.S.T Undertaking Bombay & Another v
B.E.S.T Kamgar Sena & Others, the petitioner refused to pay to the workers ex-gratia payment in lieu of
bonus for accounting year 1983-84 which was payable vide resolution no 3rd October 1984. The
payment was refused basis subsequent Resolution dated 15th October, 1984 which made the amount
payable to those workers who attended duly for three days during the period when some workers were
on strike. The learned member of Industrial Court said that the Resolution was ridiculous, discriminatory
and arbitrary in nature within the meaning of Item 5 of Schedule IV of the M.R.T.U. and P.U.L.P. Act, 1971
and amounted to Unfair Labour Practice. Section 28 – Procedure for dealing with complaints relating to
unfair labour practices (1) Where any person has engaged in or is engaging in any unfair labour practice,
then any union or any employee or any employer or any Investigating Officer may, within ninety days of
the occurrence of such unfair labour practice, file a complaint before the Court competent to deal with
such complaint either under Section 5, or as the case may be, under Section 7, of this Act SCHEDULE II –
Unfair Labour Practices on the part of employers 1. To interfere with, restrain or coerce employees in the
exercise of their right to organise, form, join or assist a trade union and to engage in concerted activities
for the purposes of collective bargaining or other mutual aid or protection, that is to say- (a) threatening
employees with discharge or dismissal, if they join a union; 4. To encourage or discourage membership in
any union by discriminating against any employee, that is to say- (a) discharging or punishing an
employee because he urged other employees to join or organise a union. Case – Vividh Kamgar Sabha v
Kalyani Steels Ltd and Another, Supreme Court of India, Jan 9, 2001, the appellant claimed to be a Union
representing the workmen of a canteen run by the respondents. The appellant Union claimed that even
though they are actually the employees of the Respondents. The Respondents are not treating them on
par with the other employees and have notionally engaged contractors to run the canteen.
The appellant filed a complaint under Section 28(1) of the Act alleging that respondents have
engaged in Unfair Labour Practices under Items 1(a), 4(a) of Schedule II and Items 3, 5, 6, 7, 9 and 10 of
Schedule IV of the Act. Here the Court concluded that where the workmen have not been accepted to be
its employees, then no complaint would be filed under the Act. It is only after the status as a workmen is
established in an appropriate forum that a complaint could be made under the provisions of this Act.
Hence complaint is not maintainable. Section 21 – Right to appear or act in proceedings relating to
certain unfair labour practices (1) No employee in an undertaking to which the provisions of the Central
Act for the time being apply, shall be allowed to appear or act or allowed to be represented in any
proceedings relating to unfair labour practices specified in Items 2 and 6 of Schedule IV of this Act except
through the recognised union : Provided that, where there is no recognised union to appear, the
employee may himself appear or act in any proceeding relating to any such unfair labour practices. A
landmark case pertaining to Recognised Union and Unfair Labour Practices is Maharashtra State Road
Transport Corporation & Anr vs Casteribe Rajya P. Karmchari on 28 August, 2009 Question – Whether
the two complaints filed by Casteribe Rajya Parivahan Karmchari Sanghatana (“Union”), an Unrecognised
Union under “MRTU & PULP Act”, alleging unfair labour practice on the part of the employer under Item
No. 6 of Schedule IV are maintainable? The correct interpretation to place upon Section 21 is this: Where
there is a recognised union only that recognized union can be allowed, on behalf of an employee, to
appear or; act or be represented in proceedings relating to unfair labour practices specified in Items 2
and 6 of the Schedule IV. Where there is no recognized union an employee may himself appear or act in
any proceeding relating to such unfair labour practice. This does not mean that an unrecognized union
cannot; act or appear in a proceeding relating to such unfair labour practice. It can represent an
employee or the employee may appear himself if he so chooses. The appeals were dismissed with no
order as to costs. Section 20(1) – Rights of recognised union of the Act reads as follows:- Such officers,
members of the office staff and members of a recognised union as may be authorised by or under rules
made in this behalf by the State Government shall, in such manner and subject to such conditions as may
be prescribed, have a right,- (a) to collect sums payable by members to the union on the premises, where
wages are paid to them ; (b) to put up or cause to be put a notice-board on the premises of the
Page 52 of 94
undertaking in which its members are employed and affix or cause to be affixed notices thereon ; (c) for
the purpose of the prevention or settlement of an industrial dispute,— (i) to hold discussions on the
premises of the undertaking with the employees concerned, who are the members of the union but so as
not to interfere with the due working of the undertaking ; (ii) to meet and discuss, with an employer or
any person appointed by him in that behalf, the grievances of employees employed in his undertaking ;
(iii) to inspect, if necessary, in an undertaking any place where any employee of the undertaking is
employed ; (d) to appear on behalf of any employee or employees in any domestic or departmental
inquiry held by the employer. The above provision is reflected in Tata Memorial Centre & Anr vs Tata
Memorial Hospital Workers & Anr, here the petitioners were encouraging other Unrecognised Unions
and also provided them premises inside the establishment for running activities of the union and also
supported them financially against the provision of Section 20. Subsequently, respondent 1 (Recognised
Union) challenged this and the Industrial court held that petitioners were charged with Unfair Labour
Practices as contemplated under Item 2(a) and 2(b) of Schedule II of the Act. SCHEDULE IV – General
Unfair Labour Practices on the part of employers Item 9. Failure to implement award, settlement or
agreement. In Chief Officer, Sangli Municipal Council v Dharamsing Hiralal, Bombay High Court, the
respondent workman was appointed as a Bill Clerk in the Public Works Department as a temporary
workman for a period of 15 months and after having worked for continuous period of 15 months, he
wasn’t made a permanent workman thereby failing to implement the award passed by virtue of the
provisions of the Award made in Reference (IT) No. 102 of 1955. Thereby, the respondent contented that
the petitioner committed Unfair Labour Practice as per Item 9 of Schedule IV. The learned member of
Industrial Court, Pune came to conclusion that petitioner was guilty of unfair labour practice covered by
Items 6 and 9 of Schedule IV.
3. Recognition of Union and its rights with obligations.

Chapter III of the MRTU & PULP Act, 1971 deals with the recognition of a trade union. In this
article, we shall study the recognition of a trade union and the importance of its registration.
Section 10 of MRTU & PULP Act, 1971:
(1) Subject to the provisions of sub-sections (2) and (3), the provisions of this Chapter shall apply
to every undertaking, wherein fifty or more employees are employed, or were employed on any day of
the preceding twelve months : Provided that, the State Government may, after giving not less than sixty
days’ notice or its intention so to do, by notification in the Official Gazette, apply the provisions of this
Chapter to any undertaking, employing such number of employees less than fifty as may be specified in
the notification.
(2) The provisions of this Chapter shall not apply to undertakings in industries to which the provisions of
the Bombay Act for the time being apply.
(3) If the number of employees employed in any undertaking to which the provisions of this Chapter
apply at any time falls below fifty continuously for a period of one year, those provisions shall cease to
apply to such undertaking.
Need for Recognition of Trade Union:
• Collective bargaining is an important aspect of employer-employee relation. The right of collective

bargaining is not provided for all trade unions that exists but is provided for those trade unions which
are recognized.
• Registration of trade union is one thing and the recognition of trade union as a sole bargaining agent for
the purpose of collective bargaining is another thing.
• A union must be recognized before it may effectively represent any employees. Once a union is
recognized it serves as the bargaining agent for the workers in a particular bargaining unit.
Page 53 of 94
Procedure of Recognition of Trade Union:

Criteria of Recognition of Trade Union (S. 11)
• Any union can apply for the recognition if for the whole period of six calendar months immediately
preceding the calendar month in which the application is made must have a membership of not less than
thirty percent of the number of employees employed in any undertaking.
• The application for recognition of the trade union for such an undertaking must be in the prescribed
form to the Industrial Court.
• The criteria of 30% membership mean on the date of application of recognition of union the membership
should be not less than 30%. The temporary or transitory fluctuation is allowed. (Kamgar Utkarsha
Sabha v. Bennett Coleman & Co. Ltd., 1994 III LLJ 798)
• Other requirements:
o The applicant union must show that
o It possesses the required percentage of membership.
o Its constitution is as per the guidelines with section 18 Rule 4 and requirement of Form A.
o It has made provisions for governmental audits.
o It has made provisions for periodical meetings of its executive committee.
o It has made payment of requisite fees. (Rs. 5 currently).
o The list of members submitted for registration should not contain members having arrears for
three calendar months. (Shramik Sena v. Blue Star Worker’s Union, 2006 II CLR 591)
o The list of members submitted should not contain the same members as in the list of contending
other unions. In such a case, the members common in both lists are excluded. This clause is
applicable only when there is an objection from other unions to the registration. (Shramik
Utkarsha Sabha v. Maharashtra Film, Stage & Cultural Dev. Corp. Ltd., 2008 III CLJ 167)
Period of Disposition of Application:

Industrial Court shall disposed of the application as far as possible within three months from the date of
receipt of the application, where a group of concerns in any industry which is notified to be one
undertaking for which recognition is applied for is situated in the same local area; and in any other case,
within four months.
Recognition of Union:
On receipt of an application from a union for recognition under section 11 and on payment of the
prescribed fees, not exceeding rupees five the Industrial Court shall, if it finds the application on a
preliminary scrutiny to be in order, must display a notice on the notice board of the undertaking,
declaring its intention to consider the said application on the date specified in the notice. It should also
call upon the other union or unions, for their objections within a prescribed time, as to why recognition
should not be granted to the applicant-union.
If, after considering the objections, if any, that may be received under sub-section (1) from any
other union (hereinafter referred to as “other union”) or employers or employees, if any, and if after
holding such inquiry in the matter as it deems fit, the Industrial Court comes to the conclusion that the
conditions requisite for registration specified in section 11 are satisfied, and the applicant-union also
complies with the conditions specified in section 19 of the MRTU & PULP Act 1971, the Industrial Court
shall, subject to the provisions of this section, grant recognition to the applicant-union under this Act, and
issue a certificate of such recognition in such form as may be prescribed.
If the Industrial Court comes to the conclusion, that any of the other unions have the largest
membership of employees employed in the undertaking, and the said another union has notified to the
Industrial Court its claim to be registered as a recognized union for such undertaking, and if it satisfies
the conditions requisite for recognition specified in section 11, and also complies with the conditions
specified in section 19 of this Act, the Industrial Court shall, subject to the provisions of this section, grant
such recognition to the other union, and issue a certificate of such recognition in such form as may be
Page 54 of 94
prescribed. For the purpose of this subsection, the other union shall be deemed to have applied for
recognition in the same calendar month as the applicant-union.
Causes of Rejection of Application:

• There shall not, at any time, be more than one recognized union in respect of the same undertaking. This
provision is there to avoid the mushroom growth of unions.
• The Industrial Court shall not recognize any union, if it is satisfied that the application for its recognition
is not made bona fide in the interest of the employees, but is made in the interest of the employer, to the
prejudice of the interest of the employees.
• The Industrial Court shall not recognize any union, if, at any time, within six months immediately
preceding the date of the application for recognition, the union has instigated, aided or assisted the
commencement or continuation of a strike which is deemed to be illegal under this Act.
Cancellation of Recognized Trade Union:

The Industrial Court shall cancel the recognition of a union if after giving notice to such union to show
cause why its recognition should not be canceled, and after holding an inquiry, it is satisfied, –
• that it was recognized under mistake, misrepresentation or fraud; or
• that the membership of the union has, for a continuous period of six calendar months, falling below the
minimum required under section 11 (30% of the total number of employees employed) for its
recognition: Provided that, where a strike (not being an illegal strike under the Central Act) has extended
to a period exceeding fourteen days in any calendar month, such month shall be excluded in computing
the said period of six months:
• that the recognized union has, after its recognition, failed to observe any of the conditions specified in
section 19; or
• that the recognized union is not being conducted bona fide in the interest of employees, but in the
interests of the employer to the prejudice of the interest of employees; or
• hat it has instigated, aided or assisted the commencement or continuation of a strike which is deemed to
be illegal under this Act; or
• that its registration under the Trade Unions Act, 1926, XVI of 1926 is canceled; or
• that another union has been recognized in place of a union recognized under this Chapter.
• The Industrial Court may cancel the recognition of a union if, after giving notice to such union to show
cause why its recognition should not be canceled, and after holding an inquiry, it is satisfied, that it has
committed any practice which is, or has been declared as, an unfair labour practice under this Act :
4. Illegal Strikes and Lockouts.

In this Act, unless the context requires otherwise, - (1) "illegal strike" means a strike which is
commenced or continued –
(a) without giving to the employer notice of strike in the prescribed form, or within fourteen
days of the giving of such notice;
(b) (b) where there is a recognised union, without obtaining the vote of the majority of the
members of the union, in favour of the strike before the notice of the strike is given;
(c) during the pendency of conciliation proceeding under the Bombay Act or the Central Act
and seven days after the conclusion of such proceeding in respect of matters covered by
the notice of strike;
(d) where submission in respect of any of the matters covered by the notice of strike is
registered under section 66 of the Bombay Act, before such submission, is lawfully
revoked;
(e) where an industrial dispute in respect of any of the matters covered by the notice of strike
has been referred to the arbitration of a Labour Court or the Industrial Court voluntarily
under sub-section (6) of section 58 or section 71 of the Bombay Act, during the arbitration
Page 55 of 94
proceedings or before the date on which the arbitration proceedings are completed or the
date on which the award of the arbitrator comes into operation, whichever is later;
(f) during the pendency of arbitration proceedings before an arbitrator under the Central Act
and before the date on which the arbitration proceedings are concluded, if such
proceedings are in respect of any of the matters covered by the notice of strike;
(g) in cases where an industrial dispute has been referred to the arbitration of a Labour Court
or the Industrial Court under sections 72, 73 or 73-A of the Bombay Act, during such
arbitration proceedings or before the date on which the proceeding is completed or the
date on which the award of the Court comes into operation, whichever is later, if such
proceedings are in respect of any of the matters covered by the notice of strike;
(h) in cases where an industrial dispute has been referred to the adjudication of the Industrial
Tribunal or Labour Court under the Central Act, during the pendency of such proceeding
before such authority and before the conclusion of such proceeding, if such proceeding is in
respect of any of the matters covered by notice of strike :
Provided that, nothing in clauses (g) and (h) shall apply to any strike, where the union has
offered in writing to submit the industrial dispute to arbitration under subsection (6) of
section 58 of the Bombay Act or section 10-A of the Central Act, and
(i) (i) the employer does not accept the offer; or (ii) the employer accepts the offer but
disagreeing on the choice of the arbitrator, does not agree to submit the dispute to
arbitration without naming an arbitrator as provided in the Bombay Act, and thereafter,
the dispute has been referred for arbitration of the Industrial Court under section 73-A of
the Bombay Act, or where the Central Act applies, while disagreeing on the choice of the
arbitrator, the employer does not agree to submit the dispute to arbitration of the
arbitrator recommended by the State Government in this behalf, and thereafter, the
dispute has been referred for adjudication of the Industrial Tribunal or the Labour Court,
as the case may be, under the Central Act; or (i) during any period in which any settlement
or award is in operation, in respect of any of the matters covered by the settlement or
award;
(2) "illegal lock-out" means a lock-out which is commenced or continued –

(a) without giving to the employees, a notice of lock-out in the prescribed form or within
fourteen days of the giving of such notice;
(b) during the pendency of conciliation proceeding under the Bombay Act or the Central
Act and seven days after the conclusion of such proceeding in respect of any of the matters
covered by the notice of lock-out;
(c) during the period when a submission in respect of any of the matters covered by the
notice of lock-out is registered under section 66 of the Bombay Act, before such submission
is lawfully revoked;
(d) where an industrial dispute in respect of matter covered by the notice of lock-out has
been referred to the arbitration of a Labour Court or the Industrial Court voluntarily under
sub-section (6) of section 58 or section 71 of the Bombay Act, during the arbitration
proceeding or before the date on which the arbitration proceeding is completed or the date
on which the award of the arbitrator comes into operation, whichever is later;
(e) during the pendency of arbitration proceedings before an arbitrator under the Central
Act and before the date on which the arbitration proceedings are concluded, if such
proceedings are in respect of any of the matters covered by the notice of lock-out;
(f) in cases where an industrial dispute has been referred to the arbitration of a Labour
Court or the Industrial Court compulsorily under sections 72, 73 or 73-A of the Bombay
Act, during such arbitration proceeding or before the date on which the proceeding is
completed, or the date on which the award of the Court comes into operation, whichever is
Page 56 of 94
later, if such proceedings are in respect of any of the matters covered by the notice of lock-
out; or
(g) in cases where an industrial dispute has been referred to the adjudication of the
Industrial Tribunal or Labour Court under the Central Act, during the pendency of such
proceeding before such authority and before the conclusion of such proceeding, if such
proceeding is in respect of any of the matters covered by the notice of lockout :
Provided that, nothing in clauses (f) and (g) shall apply to any lock-out where the employer
has offered in writing to submit the industrial dispute to arbitration under sub-section (6)
of section 58 of the Bombay Act, or section 10-A of the Central Act; and
(i) the union does not accept the offer;
(ii) the union accepts the offer, but disagreeing on the choice of the arbitrator, does not
agree to submit the dispute to arbitration without naming an arbitrator as provided in the
Bombay Act, and thereafter, the dispute has been referred for arbitration of the Industrial
Court under section 73-A of the Bombay Act; or where the Central Act applies, while
disagreeing on the choice of the arbitrator the union does not agree to submit the dispute
to arbitration of the arbitrator recommended by the State Government in this behalf and
thereafter, the dispute has been referred for adjudication of the Industrial Tribunal or the
Labour Court, as the case may be, under the Central Act;
(h) during any period in which any settlement or award is in operation, in respect of any of
the matters covered by the settlement or award.
5. Unfair Labour Practices

We are always must reluctant to put any interpretation upon labour legislation is likely to prejudice
the rights or welfare of Labour. We are fully conscious of the fact that our legislature has put labour
legislation on the statue book primarily for the purpose of redressing the balance between employers
and employees and that we would not, unless we are compelled to do so by the clear language used by
the legislature put any construction upon any provision of labour legislation which will in any way
prejudicially affect their rights. - Chagla C.J.
In India there are several Acts and legislations enacted by the Government of India for regulation of
industries in the country. These enactments play a very important role in the country's overall progress
and economic development. These legislations are amended from time to time in accordance with the
changing circumstances and environment. Another important aspect of legislations is the industrial
relations, which involves various aspects of interactions between the employer and the employees;
among the employees as well as between the employers. In such relations whenever there is a clash of
interest, it may result in dissatisfaction for either of the parties involved and hence lead to industrial
disputes or conflicts. The Industrial Disputes Act, 1947 is the main legislation for investigation and
settlement of all industrial disputes. The Act enumerates the contingencies when a strike or lock-out can
be lawfully resorted to, when they can be declared illegal or unlawful, conditions for laying off,
retrenching, discharging or dismissing a workman, circumstances under which an industrial unit can be
closed down and several other matters related to industrial employees and employers.
In the present scenario of increasing demand for labour flexibility by employers, some practices are
followed that would legally amount to unfair labour practices (ULPs). The Industrial Disputes Act 1947
has provided against ULPs by employers, workmen and unions. Another important state law protecting
against ULPs is the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices
Act 1971 (MRTU & PULP Act). It provides important legal safeguards for workers against victimisation
and persecution at the hands of their employers.
Page 57 of 94
CIRCUMSTANCES WHICH LED TO PASSING OF THE MRTU & PULP ACT.

“Before adverting to the relevant provisions of the Act , it is necessary to refer to the
circumstances which led to passing of the Act. The Government of Maharashtra recognised that the
development of strong, independent and responsible unions and an orderly, rational environment free
from unfair labour practices are the two pre-requisites of effective collective bargaining. There was no
effective legislation providing for recognition of representative trade unions as exclusive bargaining
agent except the Bombay Industrial Relations Act, 1946, which applied only to a few industries. There
was also no systematic law to determine and penalise unfair labour practices. The Government of
Maharashtra therefore in February 1968 appointed a Tripartite Committee under the Chairmanship of
the President, Industrial Court, Bombay, for defining the activities on the part of the employers and
workers and their organisations which should be treated as unfair labour practice and for suggesting
action which should be taken against employers or workers or, as the case may be, their organisations
for engaging in such unfair labour practices. The Committee after detailed deliberations submitted an
unanimous report to the State Government. The Committee noticed that the concept of unfair labour
practice arose after a long drawn out struggle waged by the trade unions in the West For establishing and
estabilising the practice of collective bargaining. The emergency of the practice of collective bargaining
marks a distinct mile-stone in the progress of the trade union movement. The rise of the practice of
collective bargaining has played an extremely important role in the history of industrial relations.
In United States of America after great economic depression of nineteen thirties, the need for
specific legislative protection was felt and this need was translated into definite and clear-cut legislative
provisions. The provisions intended to remove the hurdles in the way of collective bargaining were
summed up in the phrase "unfair labour practices". Unfair Labour Practices were spot-lighted and the
United States Congress proceeded to pass a comprehensive enactment known as National Labour
Relations Act, 1935, which is popularly known as "the Wagner Act". Subsequently the Congress passed a
legislation known as "Labour Management Relations Act, 1947", popularly called the "Taft-Hartley Act".
This legislation made detailed provisions listing the unfair labour practices. Since Independence the
Government of India is playing an important role in the shaping of industrial relations in the country.
Though several legislations dealing with the Industrial disputes were enacted, these legislations did not
deal with the issue of unfair labour practice. Certain general principles of discipline in the industry were
agreed upon by the participants at the 15th Indian Labour Conference and a Tripartite Sub-committee
was created to study additional questions and develop the materials in the form of a Code. This effort
also did not succeed because the Code was merely based on moral sanctions and lacked legislative teeth.
The Committee noticed that in India the system of designating a representative union as a sole
bargaining agent has not been legally accepted, existing in some State legislations, notably the Bombay
Industrial Relations Act. The expression 'unfair labour practice' has not been used in this country to
mean certain activities connected with collective bargaining and in particular, activities calculated to
hinder the smooth passage of discovering the collective bargaining agent. The expression is loosely used
in decisions of the Industrial Tribunals, Labour Appellate Tribunals, High Courts and the Supreme Court,
and refers to unjust, dismissals unmerited promotions, partiality towards one' set of workers and every
form of victimization. The Committee defined which activities on the part of the employers and the
workers and their organisations should be treated as unfair labour practice by furnishing separate lists.
The Committee was conscious 'that it is difficult to define the expression unfair labour practice' and the
list could not be exhaustive. The law relating to unfair labour practice in India as gathered from the
decisions of the Tribunals and Courts, indicates that it has grown out of the exigencies of the situation
and circumstances in specific cases. The Committee felt that to systematise the law relating to unfair
labour practice is necessary in the context of the conditions prevailing in this country. Though the
expression 'unfair labour practice' could not be defined with logical precision for the simple reason that
it covers a large category of cases under its umbrella, the Committee felt that a workable description of
the expression is necessary.” The Government of Maharashtra after taking into consideration the report
of the Committee decided to provide for the recognition of trade unions for facilitating collective
bargaining for certain undertakings and to provide for prevention for certain unfair labour practices. The
Page 58 of 94
Government also considered it necessary to constitute an independent machinery For fulfilling the dual
purpose of according recognition to unions and of enforcing provisions relating to the unfair labour
practices. Accordingly, the State Legislature passed an Act which came into force from February 1, 1972.
FEATURES OF THE ACT The Maharashtra Trade Union Prevention of Unfair Labour Practices Act, 1971
(MRTU & PULP Act) is applicable to every industry to which the Bombay Industrial Relations Act and the
Industrial Disputes Act (in which the state government is the appropriate government) are applicable. It
covers every person defined as an “employee” under the Bombay Industrial Relations Act and as worker
under the Industrial Disputes Act. It seeks to:
• provide for recognition of trade unions which will facilitate collective bargaining;
• formalize rights and obligations of unions; • confer powers on unrecognized unions;
• regulate strikes and lockouts by defining the illegality they involve;
• list unfair labour practices and provide for prevention of these;
• constitute relevant labour judiciary institutions to deal with matters arising out of the provisions of the
Act.
THE PREAMBLE TO THE ACT

The Preamble to the Act sets out that the legislation was passed to provide for the recognition of
trade unions for facilitating collective bargaining and to define and provide for the prevention of certain
unfair labour practices. The preamble further sets out that the legislation is also to provide for
Constitution of Courts as independent machinery for enforcing the provisions relating to unfair practice
and to provide matters connected with the purposes aforesaid. CONCEPT OF UNFAIR LABOUR PRACTICE
Section 3(16) of the Act prescribes that 'unfair labour practices' means unfair labour practices as defined
in Section 26. Section 26 provides that 'unfair labour practices' mean any of the practices listed in
Schedules II, III and IV of the Act. Schedule II sets out unfair labour practices on the part of the employers
and various items under this Schedule have reference to practices which have relation to the Union
activities. Schedule III deals with unfair labour practice on the part of the trade unions, while Schedule IV
sets out general unfair labour practices on the part of employers.
Item No. 1 of Schedule IV reads as under- "1. To discharge or dismiss employees- (a) by way of
victimisation; (b) by falsely implicating an employee in a criminal case on false evidence or on concocted
evidence; (c) for patently false reasons; (d) on untrue or trumped up allegations of absence without
leave; (e) in utter disregard of the principles of natural justice in the conduct of domestic enquiry or with
undue haste. (f) for misconduct of a minor or technical character, without having any regard to the
nature of the particular misconduct or the past record of service of the employee, so as to amount to a
shockingly disproportionate punishment". The Legislature was conscious that the unfair labour practice
set out in Schedules II, III and IV may not be an exhaustive list and from time to time a person may resort
to practices which are unfair labour practices and therefore conferred power upon the State Government
to add or alter the items in the Schedule after obtaining the opinion of the Industrial Court. Regulation
147 framed by the Industrial Court in exercise of powers conferred under Section 33 of the Act requires
the Members of Industrial Court to submit a report upon any unscheduled unfair labour practice which
comes to the notice of the President of the Industrial Court to the State Government and on receipt of
such report the State Government is entitled to take action under Section 53 of the Act.Section 27 of the
Act issues a fiat that no employer or union and no employees shall engage in any unfair labour practice.
PROCEDURE FOR REDRESSAL OF COMPLAINT RELATING TO UNFAIR LABOUR PRACTICE UNDER MRTU
& PULP Act. SEC 28 of the Act deals with PROCEDURE FOR DEALING WITH COMPLAINTS RELATING
TO UNFAIR LABOUR PRACTICES. –
(1) In case any person has engaged in or is engaging in any unfair labour practice, filing of complaint by
any union or any employee or any employer or any Investigating Officer within ninety days of the
occurrence of such unfair labour practice, before the Court competent to deal with such complaint either
under section 5, or as the as the case may be, under section 7, of this Act : Proviso stated that, if good and
Page 59 of 94
sufficient reasons are shown by the complainant for the late filing of the complaint i.e after the period of
ninety days from the date of the alleged occurrence the Court may entertain a complaint.
(2) The decision shall be given by Court on every such complaint as far as possible within a period of six
months from the date of receipt of the complaint.
(3) On receipt of a complaint under sub-section (1), the Court may, if it so considers necessary, first cause
an investigation into the said complaint to be made by the Investigating Officer, and direct that a report
in the matter may be submitted by him to the Court, within the period specified in the direction.
(4) The Investigating Officer may visit the undertaking, where the practice alleged is said to have
occurred, and make such enquiries as he considers necessary. He may also make efforts to promote
settlement of the complaint While investigating into any such complaint.
(5) The Investigating Officer shall, after investigating into the complaint under sub-section (4) submit his
report to the Court, within the time specified by it, setting out the full facts and circumstances of the case,
and the efforts made by him in settling the complaint. The Court shall, on demand and on payment of
such fee as may be prescribed by rules, supply a copy of the report to the complainant and the person
complained against.
(6) If, on receipt of the report of the Investigating Officer, the Court finds that the complaint has not been
settled satisfactorily, and that facts and circumstances of the case require, that the matter should be
further considered by it, the Court shall proceed to consider it, and give its decision.
(7) The decision of the Court, which shall be in writing, shall be in the form of an order.The order of the
Court shall be final and shall not be called in question in any civil or criminal court.
(8) The Court shall cause its order to be published in such manner as may be prescribed. The order of the
Court shall become enforceable from the date specified in the order. (9) The Court shall forward a copy of
its order to the State Government and such officers of the State Government as may be prescribed.”
In short, section 28 sets out the procedure for dealing with the complaints relating to unfair
labour practices and Sub-section (1) inter alia provides that where any person has engaged in or is
engaging in any unfair labour practice, then any union or any employee or any employer may file a
complaint before the Court competent to deal with such complaint, Section 5 of the Act prescribes that
the Industrial Court shall decide the complaints relating to unfair labour practices except the practices
falling in Item 1 of Schedule IV. The practices falling under Item 1 of Schedule IV are dealt with by the
Labour Court in accordance with provisions of Section 7 of the Act. POWERS OF INDUSTRIAL AND
LABOUR COURTS Section 30 of the Act sets out the powers of Industrial and Labour Courts, while
deciding the complaints and Sub-section (1) provides that where a Court decides that any person has
engaged in or engaging in any unfair labour practice, then the Court may (a) declare that an unfair labour
practice has been engaged in or is being engaged in by that person, and (b) direct all such persons to
cease and desist from such unfair labour practice and take such affirmative action as may in the opinion
of the Court is necessary to effectuate the policy of the Act. Sub-section (2) of Section 30 confers power
upon the Court to pass interim order, including a temporary relief or restraining order as it deems just
and proper, including directions to withdraw temporarily the practice complained of pending final
decision. The failure to comply with the order of the Court is made punishable by conviction with
imprisonment which may extend to three months or with fine which may extend to Rs. 5000/- by
provisions of Section 48 of the Act. The MRTU & PULP Act forbids both employers and workers from
committing unfair labour practices which are illustratively described in the schedules appended to the
Act. The Court will adjudicate on the complaint of such practices within six months from the date of
receipt of the complaint. The Act prohibits the employer from interfering with the union organizational
activities in any manner and victimizing anybody for legitimate union activities, including participating in
legal strikes. The failure of the employers to bargain collectively and in good faith with the recognized
union is also an unfair labour practice (Item No.5, Schedule II of the Act). Similarly, the recognized union
will be committing an unfair labour practice if it refuses to bargain in good faith (Item No.3, Schedule III
of the Act). Schedule IV protects the workers from mala fide actions and victimization by employers such
as dismissal, punitive transfers etc. Thus, the law provides both positive and negative rights to both
Page 60 of 94
employers and workers to conduct collective bargaining. UNFAIR LABOUR PRACTICE" UNDER
INDUSTRIAL DISPUTES ACT The "Unfair Labour Practice" as defined by the I.D. Act in Section 2(ra)
means any of the practices specified in the Fifth Schedule'. When we turn to the Fifth Schedule to the I.D.
Act, we find the cataloguing of unfair labour practices on the part of the employers, the trade unions of
the employers and on the part of the workmen and trade unions of workmen, which are almost
parimateria with lists of unfair labour practices on the part of the employers, on the part of the trade
unions and general unfair labour practices on the part of the employers as found in Schedules II, III and
IV of the Maharashtra Act as described above. The IDA, sets forth the practices of employers, workers and
their trade unions that would be considered “unfair labour practices.” Some of the practices prohibited
with respect to employers are as follows:
█Interfering with or restraining workers in the exercise of their right to organize, form, join or
assist a trade union.
█ Threatening a worker with discharge or dismissal if the worker joins a trade union.
█ Threatening a lockout or closure if a trade union is organized.
█ Granting wage increases to workers at crucial periods of trade union organization, with a view
to undermine the efforts of such organization.
█ Establishing employer-sponsored trade unions of workers.
█ Encouraging or discouraging membership in any trade union by discriminating against any
worker by discharging or punishing the worker for urging other workers to join a trade union.
█ Changing the seniority rating of, refusing to promote or giving unmerited promotions to
workers because of trade union activities. For workers and trade unions, any act employed to coerce
workers in the exercise of their right to self-organization or to join trade unions amounts to an unfair
labour practice.
COMPRESSION OF PROVISIONS OF THE INDUSTRIAL DISPUTES ACT CONCERNING UNFAIR

LABOUR PRACTICES WITH THE PROVISIONS OF THE MAHARASHTRA ACT. “When we keep the relevant
provisions of the Industrial Disputes Act concerning unfair labour practices in view and compare these
provisions with the provisions of the Maharashtra Act, a clear difference becomes obvious. Section 25-T
of the Industrial Disputes Act prohibits an employer or workman or a trade union from committing any
unfair labour practice. While so far as Section 27 of the Maharashtra Act is concerned, it prohibits an
employer or union or employee from engaging in any unfair labour practice. Consequently the
prohibition under the Industrial Disputes Act is against the commission of unfair labour practice which
may include the final acts of such commission. While Section 27 of the Maharashtra Act prohibits the
concerned party even from engaging in any unfair labour practice. The word `engage' is more
comprehensive in nature as compared to the word `commit'. But even that apart, Section 25-U provided
for penalty for committing unfair labour practice and mandates that whoever is guilty of any unfair
labour practice can ..8.. be prosecuted before the competent court on a complaint made by or under the
authority of an appropriate Government under Section 34(1) read with Section 25-U of the Industrial
Disputes Act. So far as the Maharashtra Act is concerned, there is no direct prosecution against a party
guilty of having engaged in any unfair labour practice. Such a prosecution has first to be preceded by an
adjudication by a competent court regarding such engagement in unfair labour practice. Thereafter, it
should culminate into a direction under Section 30(1)(b) or it may be a subject matter of interim relief
order under Section 30(2). It is only thereafter that prosecution can be initiated against the concerned
party disobeying such orders of the Court as per Section 48(1). Consequently, it cannot be said that the
Division Bench of the Bombay High Court was not right when it took the view that the act of engaging in
any unfair labour practice by itself is not an offence under the Maharashtra Act while such commission of
unfair labour practice itself is an offence under the Industrial Disputes Act.” SOME CASE LAWS In a
Bombay High Court in the Murlidhar s/o Atmaram Wani vs Dharangaon Nagarpalika (2008(1) CLR 825)
case, the Hon'ble Court held that a litigant should be given an opportunity to prosecute for its remedy on
merits rather than rejecting his claims on mere technicalities. In this case, the petitioner was working for
Page 61 of 94
the municipal council as a driver on daily wages. He filed a complaint under MRTU & PULP Act 1971,
claiming various service benefits including permanency.
The Industrial Court had allowed the permanency benefit to the petitioner, awarded payment of
relevant wage rates with retrospective effect and directed the council accordingly. When the council did
not comply with the direction of the Industrial Court to grant permanent status to the petitioner and
subsequently failed to pay pensionary and other retirement benefits upon his superannuation, the
petitioner filed complaints under MRTU & PULP Act. The respondents objected to the complaints on the
ground of undue delay without justification. The petitioner replied that the Chief Officer of the council
had already paid some part of the benefit by installments and, therefore, he had reason to believe that the
rest will also be paid to him. He cited the verbal assurances of the Chief Officer of the council that he
would be paid his dues, in due course. The High Court observed that the delay in filing complaints was
not on account of either negligence or callousness of the petitioner. The Court further observed that
petitioner being a class IV employee belongs to that stratum of the society which cannot be expected to
challenge the authority of his employer, more so after being given a verbal assurance by a high ranking
official of the employer. A litigant should be given an opportunity to prosecute its remedy on merits
because it advances the substantial cause of justice. Delay in the present case has been caused not by the
fault of the party but by the circumstances of the case. Therefore, it has to be condoned, and the
complaints filed by the petitioner for the ULPs of not granting retirement and pensionary benefits as well
as permanent status would have to be decided on merits and in accordance with law. In another case,
Ratnagar Ramchandra Patil vs Municipal Corporation of Greater Bombay (2008 (1) CLR 923), before the
same High Court, a similar judgment was given on 25 February 2008. The Justice BH Marlapalle held that
refusing promotion from class IV to class III posts amounts to ULP if the rules of the organisation contain
provision for such promotions. The High Court held that it is well settled that to be considered for
promotion is a legal right and if the same is infringed due to the inaction or wrong action of the employer,
the employees have a right to seek redressal before the appropriate judicial forum. The Industrial Court
has made manifest error in dismissing the complaint on reasons that are frivolous, baseless and
unconnected with the relief sought. Under the rules of the corporation, most of the class III posts are
required to be filled through promotions from amongst the class IV employees if they meet the eligibility
criteria. The petitioner cannot pray for being promoted but his claim was required to be considered to a
limited extent of directing the corporation to hold him eligible for being considered for promotion.
Therefore, the corporation was held to be guilty of ULP. The Court directed that the petitioner be
considered as eligible for promotion to the class IV posts. Interestingly, in both cases, the employer, held
guilty of ULP, was the local authority.
Raymond Ltd. and Anr. Vs. Tukaram Tanaji Mandhare and Anr. - Mar 9 2011 Issue before court is
Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - Sections
3(5) and 28; Industrial Disputes Act, 1947; Bombay Industrial Relations Act, 1946 - Section 3(13) and
3(14)
This appeal was filed against the impugned judgment of the Full Bench of the High Court of
Judicature at Bombay. Petitioners filed complaints under Section 28 read with items 1 (a)(b), (d) and (f)
of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices
Act, 1971 before the Industrial Court/Labour Court for certain reliefs claiming that they were employees
of the Respondent company. The Respondent company in all those writ petitions , disputed the status of
the employees and had contended in its written statement that there was no relationship of employer -
employee with any of the Petitioners. The company had contended that the complainants were employed
through the contractors and that the issue regarding maintainability of the complaints would have to be
decided by the court. During the pendency of these complaints, the judgments in the case of Vividh
Kamgar Sabha v. Kalyani Steel Ltd. (2001) 2 SCC 381 and in the case of Cipla Ltd. v. Maharashtra General
Kamgar Union (2001) 3 SCC 101 were pronounced by this Court, and relying upon these decisions, an
Page 62 of 94
application was made by the Respondent company before the court that the complaints were liable to be
dismissed as there was no employer - employee relationship between it and the complainants. Further a
large number of decisions were put forward before this court. Due to conflict in judgments, this
..10..court sent the matter for the larger bench reference. PROS AND CONS OF MRTU & PULP ACT The
MRTU & PULP Act is lauded for several reasons. It provides for the recognition of trade unions at the
enterprise level, something that is missing in most other states and even at the Central level. By ensuring
‘one union one enterprise’, it helps tackle the problem of multiple unions, the most irritating feature of
unionism in India.
The conciliation and referral processes under the Industrial Disputes Act are lengthy, bureaucratic
and even political. In contrast, under the MRTU & PULP Act, the parties to a dispute can directly approach
the labour judiciary and seek legal redress. Both the parties could get injunctions against the actions of
the other; thus, no party could do anything without the due process of law be completed. Thus, it
provides easy avenues for both, especially workers, to approach the court to prevent or challenge
arbitrary actions. However, on the negative side, this easy access to the courts that the Act allows has
encouraged high amount of litigation. The parties approach the courts apprehending the conduct of some
unfair labour practice or the other and get stay orders. The Srinivasan Committee (2002) found two
disturbing consequences of the Act. Firstly, a large number of unions did not seek recognition under the
Act. The Committee found that as of 31 December 2001, only 1,445 applicant unions out of 3,302 were
granted recognition under the Act. The important reasons for poor response include reluctance of the
unions to comply with clauses imposing difficult obligations; long duration of recognition proceedings
primarily because of the adoption of membership verification method (the average time taken is two
years but there have been cases where it has taken eight years to grant recognition to unions). Secondly,
the law failed to check unfair labour practices. Both employers and unions are guilty of approaching the
court frequently and, as a result, the pendency of cases relating to unfair labour practices increased in all
types of cases. The important cause for litigation by workers relates to unfair discharge by employers (an
unfair labour practice under Schedule IV of the MRTP & PULP Act).
The main reason for high pendency was the long time taken to dispose of cases, which in turn, was
due to (a) time consuming procedures adopted to decide on the disputes, (b) frequent and long
adjournments sought by the parties, and (c) reluctance of the parties to comply with the procedural
requirements of the Act. Litigation and the delay in disposal of cases cannot promote industrial harmony.
6. Power of Courts and Penalties.

( i ) Where a Court decides that any person named in the complaint has engaged in, or is engaging in, or is
engaging in, unfair labour practice, it may in its order –
(а) declare that an unfair labour practice has been engaged in or is being engaged in by that person, and
specify any other person who has engaged in, or is engaging in the unfair labour practice ;
(б) direct all such persons to cease and desist from such unfair labour practice, and take such affirmative
action (including payment of reasonable compensation to the employee or employees affected by the
unfair labour practice, or reinstatement of the employee or employees with or without back wages, or
the payment of reasonable compensation), as may in the opinion of the Court be necessary to effectuate
the policy of the Act;
(c) Where a recognized union has engaged in or is engaging in, any unfair labour practice, direct that its
recognition shall be cancelled or that all or any of its rights under sub-section (7) of section 20 or its right
under section 23 shall be suspended.
(2) In any proceeding before it under this Act, the Court may pass such interim order (including any
temporary relief for restraining order) as it deems just and power (including directions to the person to
withdraw temporarily the practice complained of, which, is an issues in such proceeding),pending final
decision.
Provided that, the Court may, on an application in that behalf, review any interim order passed by it
Page 63 of 94
(3) For the purpose of holding an enquiry or proceeding under this Act, the Court shall have the same
powers as are vested in Courts in respect of
(a) proof of facts by affidavit ;
(b) summoning and enforcing the attendance of any person, and examining him on oath ;
(c) compelling the production of documents; and
(d) issuing commissions for the examination of witnesses.
(4) The Court shall also have powers to call upon any of the parties to proceedings before it to furnish in
writing, and in such forms as it may think proper, any information, which is considered relevant for the
purpose of any proceedings before it, and the party so called upon shall thereupon furnish the
information to the best of its knowledge and belief, and if so required by the Court to do so, verify the
same in such manner as may be prescribed.
31. (1) Where in any proceeding before the Court, if either party, inspite of notice of hearing having been
duly served on it, does not appear, when the matter is called on for hearing the Court may either adjourn
the hearing of the matter to a subsequent day, or proceed ex parte, and make such order as it thinks fit.
(2) Where any order is made ex parte under sub-section (1), the aggrieved party may, within thirty days
of the receipt of the copy thereof, make an application to the Court to set aside such order. If the Court is
satisfied that there was sufficient cause for non-appearance of the aggrieved party, it may set aside the
order so made, and shall appoint a date for proceeding with the matter:
Provided that, no order shall be set aside on any such application as aforesaid, unless notice thereof has
been served on the opposite party.
32. Notwithstanding anything contained in this Act, the Court shall have the power to decide all matters
arising out of any application or a complaint referred to it for the decision under any of the provisions of
this act.
33. (1) The Industrial Court may make regulations consistent with che provisions of this Act and rules
made there under regulating its procedure.
(2) In particular, and without prejudice to the generality for the foregoing power, such regulations may
provide for the formation of Benches consisting of one or more of its members (including provision for
formation of a Full Bench consisting of three or more members) and the exercise by such Bench of the
jurisdiction and powers vested in them:
Provided that, no Bench shall consist only of a member, who has not been, and at the time of his
appointment, was not eligible for appointment as a Judge of a High Court.
(3) Every regulation made under this section shall be published in the Official Gazette.
(4) Every proceeding before the Court shall be deemed to be a judicial V of proceeding within the
meaning of sections 192, 193 and 228 of the Indian 360. Penal Code.
(5) The Court shall have power to direct by whom the whole or any part of the costs of any proceeding
before it shall be paid:
Provided that, no such costs shall be directed to be paid for the service of any legal adviser engaged by
any party.
34. An order made by the Court regarding the costs of a proceeding may be produced before the Court of
the Civil Judge within the local limits of whose jurisdiction any person directed by such order to pay any
Page 64 of 94
sum of money has a place of residence or business, or where such place is within the local limits of the
ordinary civil jurisdiction of the High Court, before the Court of Small Causes of Bombay, and such Court
shall execute such order in the same manner and by the same procedure as if it were a decree for the
payment of money made by itself in a suit.
35. The determination of any question of law in any order, decision, or declaration passed or made, by
the Full Bench of the Industrial Court constituted under the regulations made under section 33 shall be
binding and shall be followed in all proceedings under this Act.
36. The State Government may authorise, and direct any officer of Government to appear in any
proceeding before the Court giving notice to such Court; and on such notice being given, such officer shall
be entitled to appear in such proceeding and to be heard by the Court.
37. (1) An Investigating Officer shall exercise the power conferred on him by or under this Act, and shall
perform such duties as may be assigned to him, from time to time, by the Court.
(2) For the purpose of exercising such powers and performing such duties, an Investigating Officer may,
subject to such conditions as may be prescribed, at any time during working hours, and outside working
hours after reasonable notice, enter and inspect-
(a) any place used for the purpose of any undertaking;
(b) any place used as the office of any union;
(c) any premises provided by an employer for the residence of his employees;
and shall be entitled to call for and inspect all relevant documents which he may deem necessary for the
due discharge of his duties and powers under this Act.
(3) All particulars contained in, or information obtained from, any document inspected or called for
under sub-section (2) shall, if the person in whose possession the document was, so requires, be treated
as confidential.
(4) An Investigating Officer may, after giving reasonable notice, convene a meeting of employees for any
of the purposes of this Act, on the premises where they are employed, and may require the employer to
affix a written notice of the meeting at such conspicuous place in such premises as he may order, and
may also himself affix or cause to be affixed such notice. The notice shall specify the date, time and place
of the meeting, the employees or class of employees affected, and the purpose for which the meeting is
convened:
Provided that, during the continuance of a lock-out which is not illegal, no meeting of employees
affected thereby shall be convened on such premises without the employer's consent.
(5) An Investigating Officer shall be entitled to appear in any proceeding under this Act.
(6) An Investigating Officer may call for and inspect any document which he has reasonable ground for
considering to be relevant to the complaint or to be necessary for the purpose of verifying the
implementation of any order of the Court or carrying out any other duty imposed on him under this Act,
and for the aforesaid purposes, the Investigating Officer shall have the same powers as are vested in a
civil court under the Code of Civil Procedure, 1908 in respect of compelling the production of documents.
Page 65 of 94
POWERS OF LABOUR COURT AND INDUSTRIAL COURT TO TRY OFFENCES UNDER THIS ACT.
38. (1) A Labour Court shall have power to try offences punishable under this Act.
(2) Every offence punishable under this Act shall be tried by a Labour Court within the limits of whose
jurisdiction it is committed.
39. No Labour Court shall take cognizance of any offence except on a complaint of facts constituting such
offence made by the person affected thereby or a recognised union or on a report in writing by the
Investigating Officer.
40. In respect of offences punishable under this Act, a Labour Court of shall have all the powers under the
*Code of Criminal Procedure, 1898, of Presidency Magistrate in Greater Bombay and a "Magistrate of the
First Class elsewhere, and in the trial of every such offence, shall follow the procedure laid down in
Chapter XXII of the said Code for a summary trial in which an appeal lies; and the rest of the provisions of
the said Code shall, so far as may be, apply to such trial.
41. Notwithstanding anything contained in section 32 of the *Code of Criminal Procedure, 1898, it shall
be lawful for any Labour Court to pass any sentence authorised under this Act in excess of its powers
under section 32 of the said Code.
42. (1) Notwithstanding anything contained in section 40, an appeal shall lie to the Industrial Court,-
(a) against a conviction by a Labour Court, by the person convicted;

(b) against an acquittal by a Labour Court in its special jurisdiction, by the complainant;
(c) for enhancement of a sentence awarded by a Labour Court in its special jurisdiction by the state
Government.
(2) Every appeal shall be made within thirty days from the date of the conviction, acquittal or sentence,
as the case may be:
Provided that, the Industrial Court may, for sufficient reason, allow an appeal after the expiry of the said
period.
43. (1) The Industrial Court in an appeal under section 42 may confirm, modify, add to, or rescind any
order of the Labour Court appealed against; and may pass such order thereon as it may deem fit.
(2) in respect of offences punishable under this Act, the Industrial Court shall have all the powers of the
High Court of Judicature at Bombay under the *Code of Criminal Procedure, 1898.
(3) A copy of the order passed by the Industrial Court shall be sent to the Labour Court.
44. The Industrial Court shall have superintendence over all Labour Courts and may,-
(a) call for returns ;

(b) make and issue general rules and prescribe forms for regulating the practice and
procedure of such Courts in matters not expressly provided for by this Act and in
particular, for securing the expeditious disposal of cases;
(c) prescribe form in which books, entries and accounts shall be kept by officers of any such
Courts; and
(d) Settle a table of fees payable for process issued by a Labour Court or the Industrial Court.
Page 66 of 94
45. The Industrial Court may, by order in writing, and for reasons to be stated therein, withdraw any
proceeding under this Act pending before a Labour Court, and transfer the same to another Labour Court
for disposal and the Labour Court to which the proceeding is so transferred may dispose of the
proceeding, but subject to any special direction in the order of transfer, proceed either de novo or from
the stage at which it was so transferred.
46. No order of a Labour Court or an order of the Industrial Court in appeal in respect of offences tried by
it under this Act shall be called in question in any criminal court.
PENALTIES.
47. If an Investigating Officer or any person present at, or concerned in, any proceeding under this Act
willfully discloses any information or the contents of any document in contravention of the provisions of
this Act, he shall, on conviction, on a complaint made by the party who gave the information or produced
the document in such proceeding, be punished with fine which may extend to one thousand rupees.
48. (1) Any person who fails to comply with any order of the Court under clause (b) of sub-section (1) or
sub-section (2) of section 30 of this Act shall, on conviction, be punished with imprisonment which may
extend to three months or with fine which may extend to five thousand rupees.
(2) If any person,
(a) when ordered by the Industrial Court or a Labour Court to produce or deliver up any document or to
furnish information being legally bound so to do, intentionally omits to do so; or
(b) When required by the Industrial Court or a Labour Court to bind him by on oath or affirmation to
state the truth refuses to do so;
(c) being legally bound to state the truth on any subject to the Industrial Court or a Labour Court refuses
to answer any question demanded of him touching such subject by such Court; or
(d) intentionally offers any insult or causes any interruption to the Industrial Court or a Labour Court at
any stage of its judicial proceeding, he shall, on conviction, be punished with imprisonment for a term
which may extend to six months or with fine which may extend to one thousand rupees or with both.
(3) If any person refuses to sign any statement made by him, when required to do so by the Industrial
Court or a Labour Court, he shall, on conviction, be punished with imprisonment for a term which may
extend to three months or with fine which may extend to five hundred rupees or with both.
(4) If any offence under sub-section (2) or (3) is committed in the view or presence of the Industrial
Court or as the case may be, a Labour Court, such Court may, after recording the facts constituting the
offence and the statement of the accused as provided in the *Code of Criminal Procedure, 1898, forward
the case to a Magistrate having jurisdiction to try the same, and may require security to be given for the
appearance of the accused person before such Magistrate or, if sufficient security is not given, shall
forward such person in custody to such Magistrate. The Magistrate to whom any case is so forwarded
shall proceed to hear the complaint against the accused person in the manner provided in the said Code
of Criminal Procedure.
(5) If any person commits any act or publishes any writing which is calculated to improperly influence
the Industrial Court, or a Labour Court or to bring such Court or a member or a Judge thereof into
Page 67 of 94
disrepute or contempt or to lower its or his authority, or to interfere with the lawful process of any such
Court, such person shall be deemed to be guilty of contempt of such Court.
(6) In the case of contempt of itself, the Industrial Court shall record the facts constituting such contempt,
and make a report in that behalf to the High Court.
(7) In the case of contempt of a Labour Court, such Court shall record the facts constituting such
contempt, and make a report in that behalf to the Industrial Court; and thereupon, the Industrial Court
may, if it considers it expedient to do so, forward the report to the High Court.
(8) When any intimation or report in respect of any contempt is received by the High Court under sub-
section (6) or (7), the High Court shall deal with such contempt as if it were contempt of itself, and shall
have and exercise in respect of it the same jurisdiction, powers and authority in accordance with the
same procedure and practice as it has and exercises in respect of contempt of itself.
49. Any person who willfully,-
(i) Prevents or obstructs officers, members of the office staff, or members of any union from exercising
any of their rights conferred by this Act;
(ii) refuses entry to an Investigating Officer to any place which he is entitled to enter;
(iii) fails to produce any document which he is required to produce or
(iv) fails to comply with any requisition or order issued to him by or under the provisions of this Act or
the rules made there under ; shall, on conviction, be punished with fine which may extend to five
hundred rupees.
50. Where any money is due to an employee from an employer under an order passed by the Court under
Chapter VI, the employee himself or any other person authorized by him in writing in this behalf, or in
the case of death of the employee, his assignee or heirs may, without prejudice to any other mode of
recovery, make an application to the Court for the recovery of money due to him, and if the Court is
satisfied that any money is so dne, it shall issue a certificate for that amount to the Collector, who shall,
proceed to recover the same in the manner as an arrear of land revenue:
Provided that, every such application shall be made within one year from the date on which the
money became due to the employee from the employer.:
Provided further that, any such application may be entertained after the expiry of the said period
of one year, if the court is satisfied that the applicant had sufficient cause for not making the application
within the said period.
51. The amount of any fine imposed under this Chapter shall be recoverable as arrear of land revenue.
Page 68 of 94
MODULE 4:
FACTORIES ACT, 1948 AND APPRENTICES ACT, 1961
1. Concept: Factory, Occupier, Hazardous Process, Apprentices etc.
2. Provision relating to health, safety and welfare of workers.
3. Provision relating to Hazardous Process and working conditions.
4. Penalties and Procedures.
5. Apprentices and their training with object and scope.
6. Authorities constituted and Penalties.
1. Concept: Factory, Occupier, Hazardous Process, Apprentices etc.

The Factories Act, 1948, sets the safety standards for workers employed in factories. It is applied
to factories manufacturing goods, including weaving cloth, knitting of hosiery and other knitwear,
clothing, and footwear production, dyeing and finishing textiles, manufacturing footwear, etc.
The Factories Act, 1948, regulates the working hours for all workers. According to the Act, a working
week should not exceed 60 hours.
The objectives of this Act are to regulate the hours or working time in factories so that workers
are not overworked or unduly exhausted. The Act’s main objectives are also to protect workers’ health
and safety.
The Factories Act, 1948, mandates the payment of minimum wages to the workers by prescribing
a fixed pay rate. An employer shall pay their employees at least the prescribed minimum wage rate. If an
employee is paid less than minimum wage, the employer should pay that employee at least what the law
requires. This Act reminds employers that any failure on their part to comply with its provisions will
have serious legal consequences.
The Act requires employers to allow a weekly holiday to their workers. It further makes it
obligatory for the employer to provide proper sanitary facilities and a clean potable water supply in the
factory or workplace. Strict action will be taken against the employer if they fail in providing these
facilities to the workers.
Employers are also required to set up first aid boxes in their factory, store first aid records, and
ensure proper arrangements for transporting injured workers to a hospital or in-house medical facilities.
Apart from these, the Act has several relevant provisions defining the duty of an employer who has in-
house medical facilities and the duty of a doctor who is an official medical officer at the factory. The Act
also defines the procedure to be followed if a complaint of any kind is received by or made to the
government’s labour department.
The Factories Act, 1948, also provides for implementing some administrative measures regarding
which subsequent governments have framed appropriate rules.
Some of these measures are as follows:
1. The Factory Act, 1948, has provisions for the constitution of a Child Labour Committee in every factory.
This committee should consist of employers, workers, representatives from local authorities and a
medical officer. The committee is responsible for regulating and controlling employment in the age group
of 14 to 18 years at factories where more than 20 persons are employed.
2. An industrial dispute between the employer and worker(s) can be resolved by a Conciliation Officer
appointed by the government. The authority of this officer is to conciliate and not to mediate.
3. The governments appoint labour officers to look after factory workers’ interests; this officer is a
government official. The labour officers must see that no violation of any provisions of the Factories Act,
1948, takes place at any factory in their territories.
4. The state governments or local authorities have set up welfare funds in every factory. This fund may be
established for general or specific purposes depending upon entrepreneurs’ or local authorities’
initiatives.
Page 69 of 94
Objectives of Factories Act, 1948

• To protect the health and safety of workers
• To ensure that factories adhere to global best practices in the factories
• To provide a fair and decent livelihood for all working-class people
• To reduce any social or industrial tensions
Provisions of Factories Act, 1948

Factories Act, 1948, limits work hours to 48 hours a week, and overtime work should not be more than
nine hours a day. Factory Schedule Rules specify that a limited working day shall not exceed ten
consecutive hours; this regulation does not apply during a public holiday or when an emergency requires
immediate action and substantial loss has occurred.
The Factories Act, 1948, sets the safety standards for workers employed in factories. It is applied to
manufacturing goods, including weaving, knitting of hosiery and other knitwear, clothing and footwear
production, dyeing and finishing textiles, etc.
Occupier
The Factories Act 1948 was enforced on 1st April 1949 with the objective of regulating the working
conditions within the factory along with the regulation of the health, safety, and welfare of the workers,
the duty of which was handed over to the Occupier of the factory.
The article discusses the Duties of Occupier under the Factories Act 1948[1], which can help in the
smooth functioning of the factory’s operations.
Who is an Occupier?
According to Section 2 (n) of the Factories Act 1948, an occupier can be defined as a person who has the
ultimate control over the affairs of the factory. In simple terms, Occupier is someone who is responsible
for all the matters related to the factory.
What are the Duties of Occupier under Factories Act 1948?

The Duties of Occupier under the Factories Act 1948 are –
Obtain License for the Establishment of Factory

The first and foremost duty of the Occupier under the Factories Act 1948 is to obtain permission in
writing from the State Government or the Chief Inspector for the site on which the factory is to be
situated under section 6 of the Act.
Serve Notice to the Chief Inspector for the Permission of Factory

The Occupier needs to serve a notice to the Chief Inspector as per section 7 at least 15 days before
starting using the factory premises. The Notice must contain the following information –
• Name and Address of the Occupier and the factory
• Name of the owner of the premises
• Address for communication
• Nature of the manufacturing process which would be carried out in the factory
• Total No. of house powers that are required to be installed
• Name of the manager of the factory
• No. of employees that are likely to be employed in the factory
• Any other particulars as prescribed under the Act
Act as a Manager of the Factory
It is one of the Duties of the Occupier to act as a manager of the factory and manage everything in the
factory till the time an actual manager is appointed in the factory.
Page 70 of 94
Maintain and Provide the Plant and Systems of Work

The Occupier is obligated to provide the required plant and factory work systems to facilitate the smooth
functioning of operations of the factory and avoid any delay in the same.
Make Adequate Arrangements in the Factory to ensure Safety.

The duties of the Occupier include making arrangements within the factory to ensure safety and avoid
any risks of injuries or health of the workers by ensuring proper arrangements for the use, storage,
handling, and transportation of substances or articles.
Provide Training to the Workers

The Occupier is responsible for providing adequate training, information, instruction and supervision to
its workers as are essential to ensure the safety and health of the workers of the factory.
Maintain a Safe and Healthy Working Condition

The Occupier must ensure to provide safe and healthy working conditions to its workers by keeping a
check on the cleanliness and hygiene and fulfilment of basic necessities like drinking water and sitting
space to the factory workers.
Formulate a Policy for the Factory

The Occupier must formulate a policy for the factory consisting of the health and safety measures within
the factory and make sure that the workers abide by the policy.
Appoint Safety Officer

The Factories Act provides the Duties of Occupier such as the appointment of the Safety Officer.
According to Section 40-B of the Act, the safety officer must be appointed by the Occupier in case there
are 1000 or more workers in the factory or
If the State Government is of the opinion that the manufacturing process carried out within the factory
can cause any bodily injury, disease, poisoning or any other hazard to the workers’ health.
Disclose Compulsory Information

As per Section 41- B, it is the duty of the Occupier to disclose the compulsory information and obtain
approval of the Chief Inspector regarding the following.
• The hazardous process is carried on in the factory.
• The policy formulated by the Occupier about the health and safety measures untaken for the
workers involved in the hazardous process
• Design the site emergency plan and detailed disaster control measures for the workers’ safety and
obtain the chief inspector’s approval for the site plan and the enlisted measures.
The Occupier must note that he is obligated to inform the same to the workers in the factory as well as
the general public within the vicinity of the factory.
• Measures for the use, storage, handling, and transportation of hazardous substances or articles
inside the factory and their disposal outside the factory and spread awareness about such
measures among the workers and general public within the vicinity of the factory area.
Fulfill the Specific Responsibility regarding hazardous Process

Section 43-B, there are certain specific Duties of Occupier that he must fulfil. The duties include the
following –
• Maintenance of the (adequate and up-to-date) health or medical records of the workers of the
factory
• Appointment of qualified personnel for handling the hazardous substances
• Facilitation of the medical examination of the workers.
Page 71 of 94
Set up a Safety Committee

Another duty as per the Duties of Occupier under Factories Act 1948 is to set up a Safety Committee in
the factory involving the hazardous process. the safety Committee must comprise of equal
representatives of workers and management to promote co-operation between the both to maintain the
health and safety standards and review the same periodically.
Take Remedial action in case of Danger.

The Occupier is obligated to take instant remedial action in imminent danger and send a report of the
same to the Chief Inspector.
Provide the Welfare Activities

The Occupier must ensure to provide all the welfare facilities as mentioned in Chapter V of the Factories
Act 1948.
Formulate a Scheme for Annual Leave with Wages

The Occupier, along with the chief inspector, must formulate a scheme for annual leave with the wage for
the factory workers after agreement with the representatives of the Works Committee established under
Section 3 of the Industrial Dispute Act 1947 or any other relevant Act.
Conduct Occupation and Heath Survey

Another duty on the list of Duties of the Occupier is conducting health and occupational surveys of the
workers in the factory. The Occupier must ensure sufficient arrangements for the testing and examining
of the plant and machinery, collection of samples or any relevant data required for conducting the
survey.
Conclusion
The above discussion helps to conclude that the Occupier plays a very important role in the management
and smooth functioning of the factory. Hence it is necessary for the workers and every person associated
with the factory, either directly or indirectly, to be aware of the Duties of the Occupier under the
Factories act 1948, along with the Occupier himself.
Provisions Relating to Hazardous Processes

In general terms, the word ‘hazardous ‘ is not new to anyone. Generally, it means ‘dangerous’. If we
talk about the dangerous or hazardous processes then it means the processes which may cause damage to
life or health. This topic is very important in the context of factories due to the main involvement of big
pieces of machinery in production.
Introduction to Hazardous Process under Factories Act

In terms of the law, ‘hazardous processes’ means any process or activity in relation to an industry
where, unless special care is taken, raw materials used therein or the intermediate or finished products, by-
products, wastes or effluents thereof would-
(a) cause material impairment to the health of the person
(b) result in pollution or the general environment
In this article, we will look at the various rules and provisions related to the hazardous processes in the
Factories Act, 1948.
Page 72 of 94
Sub- LABOUR LAW & IR-I,, SEM -1, Mumbai University New Syllabus – 2022-2023,
2022 Marks -75
Hazardous Processes Under Factories Act, 19 1948

Section 41A: Constitution of Site Appraisal Committees
This section states that the factory should appoint a ‘Site Appraisal Committee’ consisting. This committee
will be responsible for suggesting the location of the factory which includes hazardous process.
pr This
committee will include:
(a) the Chief Inspector of the State
(b) a representative of the Central Board for the Prevention and Control of Water Pollution
(c) a representative of the Department of Environment in the State
(d) a representative of the Meteorological Department of the Government of India
(e) an expert in the field of occupational health
(f) a representative of the Town Planning Department of the State Government
Browse more Topics under The Factories Act

• Factories Act Definitions
• Allied provisions
• Health Measures
• Safety Measures
• Welfare
• Working Hours
• Penalties
Section 41B: Compulsory disclosure of information by the occupier
This section states:
• Firstly, the occupier of every factory involving a hazardous process shall disclose in the prescribed
manner all information regarding dangers and the measures to overcome the same.
• Secondly, the occupier shall, at the time of registering the factory lay down a detailed policy with
respect to the health and safety of the workers
• Thirdly, the information should
hould be completely accurate
Page 73 of 94
• Lastly, every occupier shall, with the approval of the Chief Inspector, draw up an on-site emergency
plan. He should also draw up detailed disaster control measures for his factory. Moreover, the factory
should announce it to all the workers and the public in general.
Section 41C: Specific responsibility of the occupier in relation to hazardous processes
This section states that every occupier of a factory involving any hazardous process should:
• Accurately maintain the health and medical records of all the workers in a factory. It is mainly for
those workers who are working in the manufacturing of toxic or harmful substances.
• Appoint persons who possess qualifications and experience in handling hazardous substances. They
should also be competent to supervise such handling within the factory. Moreover, they should
provide all the necessary facilities for protecting the workers in the manner prescribed.
• Provide for medical examination of every worker before assigning any production task involving
hazardous substance.
Section 41D: Power of Central Government to appoint an Inquiry Committee
• This section states that The Central Government in some extraordinary situations may appoint an
Inquiry Committee for a factory manufacturing hazardous material.
• They inquire into the standards of health and safety observed in the factory. They do so to find out the
causes of any failure or neglect in the adoption of all measures or standards.
• Moreover, the committee should consist of a Chairman and two other members. The Central
Government determines the tenure of the members. Also, the recommendations of the Committee
shall be advisory in nature.
Section 41E: Emergency standards
This section states that in certain cases when The Central Government thinks that the factory is
unable to apply certain security measures then it is allowed to direct the Director-in-charge of the factory to
implement the measures or standards on an immediate basis. This mainly applies to factories involving the
production of hazardous substances.
Section 41F: Permissible limits of exposure of chemical and toxic substances
This section states:
• Firstly, the maximum permissible threshold limits of exposure of chemical substances should be as
per Schedule Two.
• Secondly, the Central Government may, at any time, for the purpose of giving effect to any scientific
proof may make suitable changes in the said Schedule.
Section 41G: Workers’ participation in safety management
This section states that the occupier shall, in every factory where a hazardous process takes place,
should set up a Safety Committee. This safety will comprise an equal number of representatives of workers
and management.
It is mainly formed to promote co-operation between the workers and the management in
maintaining safety and perfect health at work.
The Apprentices Act, 1961

Acknowledging that training imparted in institutions are not sufficient for acquisition of
employable skills and needs to be supplemented by training at the workplace, the Apprentices Act, 1961
and Apprenticeship Rules,1962 was enacted with the prime objective to utilize fully the facilities
available in industries for imparting practical training and thus developing skilled manpower for
industries. Initially, the Act covered the apprenticeship training for the trade Apprentices. Subsequently,
the Act was amended in 1973, 1986 and 2014 to bring the Graduates, Technician, Technician
(Vocational) and Optional Trade Apprentices respectively under its purview and Apprenticeship Rules,
1992 were revised in year 2015.
Objectives
The Apprentices Act, 1961 was enacted with the following objectives:-
• To regulate and promote the programme of training of apprentices in the industry; and
Page 74 of 94
• To utilize the facilities available in industry for imparting practical training with a
view to meeting the requirements of skilled manpower for industry.
2. Provision relating to health, safety and welfare of workers.

Health
Sections 11-20 of Chapter III of the Act deal with the Health of the Factories Act, 1948.
Cleanliness (Section 11)
Every factory needs to be kept clean and clear of any effluvia from drains, latrines, or other
annoyances. In particular:
• Dirt must be cleaned daily from floors, benches, staircases, and passages by sweeping or by
another method, and it must be properly disposed of.
• The floor should be disinfectant-washed at least once a week.
• During the manufacturing process, the floor becomes moist; this must be drained via drainage.
Disposal of wastes and effluents (Section 12)
Every factory has to have a method in place for treating wastes and effluents produced by the
manufacturing process they use.
Ventilation and temperature (Section 13)
• In order to ensure worker comfort and prevent health problems, sufficient ventilation must be
created for the circulation of air in a factory, which should be maintained at a specific
temperature.
• Walls and roofing should be made of a material that is intended for a particular temperature
that shouldn’t go over as much as possible.
• Certain precautions must be taken to protect the employees in facilities where the
manufacturing process requires extremely high or low temperatures.
Dust and fume (Section 14)
• Every factory has to have efficient measures to remove or prevent any dust, fumes, or other
impurities that might harm or offend the employees employed and cause inhalation and
buildup in any workroom.
• No factory may operate an internal combustion engine unless the exhaust is directed outside,
and no other internal combustion engine may be used. Additionally, precautions must be made
to avoid the buildup of fumes that might endanger the health of any employees inside the
room.
Overcrowding (Section 16)
• There should be no overcrowding in factories that might harm the health of the workers.
• All employees must have ample space in a room to work in the building.
Lighting (Section 17)
• Every area of a factory where employees are employed must have adequate natural, artificial,
or both types of lighting installed and maintained.
• All glass windows and skylights that provide lighting for the workroom in factories must be
kept clean on the inside and outside.
• The production of shadows should not cause eye strain during any manufacturing process, and
all factories must have preventative measures that should not cause glare from the source of
light or via reflection from a smooth or polished surface.
Drinking (Section 18)
• All factories must have the appropriate installations in place, and maintain convenient
locations with an adequate supply of clean drinking water.
• The distance between any drinking water and any washing area, urinal, latrine, spittoon, open
drain carrying sullage or effluent, or another source of contamination in the factory must be 6
metres unless the chief inspector approves a shorter distance in writing. The labelling must be
legible and in a language that workers could understand.
Page 75 of 94
• In all factories with more than 250 regular employees, there needs to be a suitable method for
providing cold drinking water during hot weather.
Latrines and urinals (Section 19)
• All factories should have enough restrooms, and urinal accommodations of the required types
must be offered in a location that is convenient and always accessible to workers.
• Male and female employees must have separate enclosed rooms.
• These locations must be thoroughly cleaned, kept in a hygienic state, and have sufficient
lighting and ventilation.
• Sweepers must be used to maintain latrines, urinals, and washing facilities clean.
Spittoons (Section 20)
• All factories must have spittoons in easily accessible locations, and they must be kept clean and
hygienic.
• The state government specifies the number of spittoons that must be given, their placement in
any factory, as well as their maintenance in a clean and hygienic manner.
• Except for spittoons designed, for this reason, no one should spit within the premises of a
factory. A notice must be posted if any violations occur, with a fine of five rupees.
Safety
Safety is covered in Chapter IV of the Act and is covered in Sections 21–41 of the Factories Act, 1948.
• Employment of young person’s on dangerous machines (Section 23):
No young person is permitted to operate dangerous machines unless he has been adequately taught the
hazards associated with the machine and the measures to be taken, and has received suitable training in
working at the machine or adequate supervision by a person who has complete knowledge and
experience of the equipment.
• Prohibition of employment of women and children near cotton openers (Section 27):
Women and children are not permitted to work in any area of a cotton pressing facility while a cotton
opener is in operation. Women and children may be employed on the side of the partition where the
feed-end is located if the inspector so specifies.
• Hoists and lifts (Section 28):
o Every hoist and lift must be of strong mechanical structure, enough strength, and
sound material. They also need to be regularly maintained, completely checked by a
qualified person at least once every six months, and a register kept for the
mandatory exams.
o A cage that is properly designed and installed must enclose all hoist and lift ways to
prevent people from being trapped between any of the equipment.
o No larger load should be carried; the maximum safe operating load must be marked
on the hoist or lift.
o Every hoist or lift gate must have interlocking or another effective system installed to
prevent the gate from opening except during landing.
• Protection of eyes (Section 35):
The state government may require effective screens or appropriate goggles to be provided for the
protection of persons employed or in the vicinity of the process during any manufacturing process
carried out in any factory that involves risk to the eyes due to exposure to excessive light or injury to the
eyes from particles or fragments thrown off during the process.
• Precautions against dangerous fumes, gases etc (Section 36):
No person shall be required or permitted to enter any chamber, tank, vat, pit, pipe, flue, or other confined
space in any factory where any gas, fume, vapour, or dust is present to such a degree as to involve risk to
persons being overcome, unless such chamber, tank, vat, pit, pipe, flue, or other confined space is
provided with an adequate manhole or other effective means of egress.
• Explosive or inflammable dust, gas etc (Section 37):
Page 76 of 94
o Any factory involved in manufacturing processes that produce dust, gas, fume, or
vapour of a nature that could explode on ignition must take all reasonably
practicable precautions to prevent any explosion through
o The effective enclosure of the plant or machinery.
o The removal or prevention of the accumulation of such dust, gas, fume, or vapour,
etc., or
o Otherwise by the exclusion or effective enclosure of all potential ignition sources.
• Precautions in case of fire (Section 38):
o In order to protect and maintain safety to allow people to escape in the case of fire,
all factories should have precautionary measures in place to avoid the breakout and
spread of fire, both internally and externally. The required tools and facilities
for extinguishing the fire must also be made accessible.
o All factory employees who are familiar with fire escape routes and have received
sufficient training on the procedure to be followed in such circumstances must have
access to appropriate measures.
Labour and welfare

The word ‘labour welfare’ refers to the services offered to employees within as well as outside the
factory, such as canteens, restrooms, recreation areas, housing, and any other amenities that support
employee well-being. States that take welfare measures care about the overall well-being and
productivity of their workforce. Early on in the industrialization process, social programmes for
manufacturing workers did not receive enough priority. In the past, industrial labour conditions in India
were terrible. Due to a growth in industrial activity in the latter part of the twenty-first century, several
attempts were made to improve the working conditions of the workforce through the recommendations
of the Royal Commission.
After gaining knowledge about the deficiencies and limitations of the previous Act, the Factories
Act of 1948 was amended. The definition of ‘factory’ was expanded to encompass any industrial facility
employing 10 or more people that uses power or any industrial establishment employing more than 20
people that uses no power, which was a significant development.
Other significant amendments included-
• Raising the minimum age of children who can work from 12 to 14 years old.
• Reducing the number of hours a child can work from five to four and a half.
• Preventing the kids from working between the hours of 7 p.m. and 6 a.m.
• The health, safety, and well-being of all types of employees are given particular attention.
Welfare measures
The three main components of welfare measures are occupational health care, appropriate
working hours, and appropriate remuneration. It speaks of a person’s complete health, including their
physical, mental, moral, and emotional states. The goal of welfare measures is to integrate the socio-
psychological demands of the workforce, the particular technological requirements, the organisational
structure and procedures, and the current socio-cultural environment. It fosters a culture of work
dedication in enterprises and society at large, ensuring increased employee happiness and productivity.
Washing facilities (Section 42)
• All factories should supply and maintain enough appropriate washing facilities for the use of
the employees.
• For male and female employees, separate, well-screened facilities must be provided; these
facilities also need to be easily accessible and maintained clean.
• The standards for appropriate and suitable facilities for washing must be set by the state
government.
Page 77 of 94
Facilities for storing and drying clothing (Section 43)

• The state government has a specific authority. It specifies that the state government has the
authority to give instructions to the manufacturers regarding where to store the worker’s
clothing.
• They can also provide them with instructions on how to dry the workers’ clothes. It refers to
the circumstance in which workers are not dressed for work.
Facilities for sitting (Section 44)
• All factories should provide and maintain seating arrangements in appropriate areas for all
workers who are required to work in a standing position in order to take advantage of any
chances for rest that may arise throughout the course of the job.
• According to the chief inspector, workers in any factory involved in a certain manufacturing
process or working in a specific room are able to perform their work effectively while seated.
First aid appliance (Section 45)
• All factories must have first aid kits, appliances, or cupboards stocked with the required
supplies during all working hours, and they must be easily accessible for all manufacturing
employees to access. Accordingly, there must be more first aid boxes or cupboards than the
usual ratio of one for every 150 industrial employees, which must be fewer than that.
• The first aid box or cupboard should only include the recommended supplies.
• Throughout the factory’s operating hours, each first aid box or cupboard should be kept under
the supervision of a specific person who is accountable for it on a separate basis and must be
readily available at all times during the working hours of the factory.
Canteen (Section 46)
• A canteen must be provided and kept up by the occupier for the benefit of the workers in any
specified factory where more than 250 people are usually employed, according to rules that the
state government may set.
• Food must be served, and prices must be established for it.
Shelters, restrooms and lunch rooms (Section 47)
• Every factory with more than 150 employees must have appropriate and suitable restrooms
or shelters and a lunchroom with drinking water where employees can eat food they have
brought with them and that is kept for their use. If a lunchroom is available, employees should
stop eating in the work area.
• The shelters or restrooms need to be well-lighted, ventilated, kept clean, cool, and in good
condition.
• The state government sets the standards.
Crèches (Section 48)
• Every factory with more than 30 female employees must have a suitable room for the use of
children under the age of six of such women.
• Such rooms must be well furnished, well-lighted, and ventilated, and they must be kept clean
and hygienic. They must also be under the care of women who have received training in child
and infant care.
• In addition, facilities for washing and changing clothes can be made available for the care of the
children of female workers.
• Any factory may be forced to provide free milk, refreshments, or both to such children.
• Small children can be fed by their mothers in any industry at necessary intervals.
Penalties of the Factories Act, 1948

In Chapter X of the Act, the penalties of the Factories Act of 1948 are covered. There are 9
Sections, from Section 92 to Section 99, that deal with penalties in certain situations. Anyone who
breaches the Act or the rules established by the Act or by law is subjected to the penalty.
Page 78 of 94
General Penalty for offences

Section 92 of the Factories Act, 1948 defines the general penalties for offences:
• If there is any infringement of the Act’s laws, the occupier and manager of the factory will be
held responsible and equally liable for breaching the law. They will both face two years in
imprisonment and a fine of up to Rs.2 lakhs.
• If they continue to commit the same offence, they will be fined Rs.10,000 every day for
continued violations.
Liability of an owner of factory premises

Section 93 of the Factories Act, 1948 defines the liability of an owner of premises under special
circumstances.
• When a factory is leased to several occupiers or lessees or leaseholders, the factory’s owner is
still held liable for supplying and maintaining certain services such as drainage, approach
roads, water supply, power, lighting, sanitation, and so on.
• The chief inspector has the authority to issue an order to the owner of the premises in order to
enforce the requirements.
The penalty is enhanced even after a previous conviction

Section 94 of the Factories Act, 1948 defines a penalty that is enhanced even after a previous conviction.
• First, a person who commits a general offence in a factory and does it again faces a penalty of
up to three years in jail or a fine of at least Rs. 10,000, or both.
• Second, the managers must count the offences committed during the previous two years of the
most recent offence to determine the application of this Section.
The penalty for obstructing an inspector

Section 95 of the Factories Act, 1948 defines a penalty for obstructing an inspector.
• Any person who stops an inspector from using any powers given to him or under the Act, or if
an individual fails to appear when requested by an inspector, may be made responsible and
subject to a punishment of up to six months imprisonment, a fine of up to ten thousand rupees,
or both.
• This Section is also applicable when anyone stops a worker from coming before or being
inspected by an inspector in a factory.
Penalty for wrongfully disclosing results of analysis

Section 96 of the Factories Act, 1948 defines a penalty for wrongfully disclosing the results of analysis
under Section 91 of the Factories Act, 1948.
• Any individual who publishes or discloses to another person the results of an analysis that is
performed using samples is punishable by up to six months imprisonment. He will be liable for
at least an Rs. 10,000 fine.
Penalty for the contravention of certain provisions

Section 96A of the Factories Act, 1948 defines the penalty for the contravention of certain provisions,
such as Sections 41B, 41C, and 41H.
• Anyone who disobeys or violates any of the rules or the provisions of Sections 41B, 41C, or 41H
will be sentenced to 7 years in prison and a fine of Rs. 2,00,000. If the offender continues to
commit the same offence, he will also be fined Rs. 5,000 every day after the conviction of the
same offence.
• If the failure or violation persists more than a year after the conviction, the offender will face a
10-year jail sentence.
Page 79 of 94
Worker’s offences
Section 97 of the Factories Act, 1948 defines worker’s offences.
• If any worker in the factory breaches the Act’s rules or provisions, causing liabilities for other
workers, he or she will be fined at least Rs. 500.
• When a worker is found guilty of a punishable offence, the owner or manager of the factory is
not held responsible for the violation unless it can be proven that he failed to take reasonable
precautions to prevent it.
False certificate of fitness

Section 98 of the Factories Act, 1948 defines a false certificate of fitness.
• A fitness certificate details a person’s level of fitness for a certain job or work. This certificate is
important in factories. A person who obtains a false certificate of fitness faces a minimum fine
of Rs. 10,000 or a 2-month sentence in jail. He may occasionally face fines and jail terms as
punishment.
Double Employment of Child

Section 99 of the Factories Act, 1948 defines the double employment of children.
• If a child works in a factory on a day when they have already worked in another factory, their
parents, guardians, or anyone else who benefits from the wages of the child faces a fine of Rs.
1000 unless the court finds that the child worked without the parents or guardians consent.
Offence Penalties
Section 92 penalises him/her for 2 years of
Any worker in a factory who contravenes the
imprisonment or a fine of Rs.1,00,000 or
provisions of the Act or Rules.
both.
Section 92 penalises him/her with a fine of
A continuation of contravention.
Rs.1000 per day.
On contravention of Chapter IV pertaining to Not less than Rs.25,000 in case of death.Not
safety or dangerous operations. less than Rs.5,000 in case of serious injuries.
Section 94 deals with imprisonment up to 3
Subsequent contravention of some
years or a fine of not less than Rs.10,000
provisions.
which may extend to Rs.2,00,000.
Section 95 deals with imprisonment up to 6
Obstructing inspectors
months or a fine up to Rs.10,000 or both.
Wrongful disclosing results pertaining to the Section 96 deals with imprisonment of 6
results of the analysis. months or a fine of up to Rs.10,000 or both.
For contravention of the provisions of Section 96A deals with penalties of-
Sections 41B, 41C and 41H pertaining to Imprisonment up to 7 years with a fine up to
compulsory disclosure of information by Rs.2,00,000 and on continuation fine of
occupier, specific responsibility of occupier or Rs.4000 per day. Imprisonment for 10 years
right of workers to work imminent danger. when contravention continues for one year.
Page 80 of 94
Duties of various authorities under the Factories Act

Duties of occupier
Notice given by occupier (Section 7)
• According to Section 7 of the Act, the occupier is required to send notice to the chief inspector
of everything that is stated in this Section.
• According to Section 7(1), the occupier must give the chief inspector a written notice at least
fifteen days before occupying or using any factory premises.
• The notice should include the following information:
o the name and location of the factory;
o the occupier’s name and address;
o the owner’s name and address of the property or building (including its
establishments) mentioned in Section 93; and
o the address to which communications pertaining to the factory may be sent;
o the nature of the manufacturing process-
 carried out in the factory over the last 12 months in the case of factories
that exist on the date of the Act’s commencement;
 carried out in the factory during the next 12 months in the case of all
factories;
o the name of the factory manager for the purposes of this Act;
o the number of workers who are presently employed there and have already been
employed in the factory from the date this Act was enacted;
o the average number of workers per day employed over the previous 12 months;
• When a new manager is appointed, the occupier must give written notice to the inspector and a
copy to the chief inspector within seven days of the day, such person takes over in charge.
• During any period when no one has been appointed as manager in the factory or when the
appointed person is not managing the factory, or if no one is found, the occupier must be the
factory’s manager.
General duties of the occupier (Section 7A)

• Every occupier is responsible for the welfare, health, and safety of every worker while they are
in the factory.
• He is responsible for ensuring that the factory’s equipment is maintained in a way that is safe
and poses no health hazards.
• When utilising, handling, storing, and transporting items and chemicals, the factory’s
arrangement needs to be examined to ensure safety and the absence of health dangers.
• In order to ensure the health and safety of all employees while they are at work, he must
examine the information, teaching, training, and monitoring requirements.
• He is responsible for inspecting or supervising the maintenance of a working environment that
is secure, free from health risks, and equipped with the necessary facilities and arrangements
to ensure the welfare of the employees while they are at work.
• He is required to inspect the maintenance of all work areas in the factory in a manner that is
secure and free from any danger to health, as well as the maintenance of methods of access and
egress; such locations must be safe and free from such risks.
Duties of manufacturers
General duties of manufacturers (Section 7B)
• This Section states that anyone who deals with designing, manufacturing, importing, or
supplying any article to use in any factory must make sure, to the extent that it is reasonably
practicable, that the article is constructed so that it is safe and without risks to the health of all
workers when used properly;
Page 81 of 94
• He must also carry out and arrange for tests and examinations to ensure effective
implementation;
• He must take action to guarantee that there is sufficient information regarding the product’s
usage in factories, the uses for which it was intended and tested, and the requirements that
must be met to ensure that the article is used in a way that is safe and does not endanger the
health of the employees;
• It must be provided that when an article is developed or made outside India, the importer must
inspect the article to ensure that it conforms to the same standards as if it were manufactured
in India, or if the standards set in the country outside for the production of such article are
higher than the standards adopted in India, the article must conform to much higher
requirements.
• Anyone who designs or produces a product for use in a factory is allowed to do, or arrange for
the conduct of, any required research in order to determine to the extent that is reasonably
possible, the removal or minimization of any hazards to the health or safety of the employees.
• An article that is mentioned in this provision includes plant and machinery
Case laws
Shankar Balaji Waje v. State of Maharashtra, (1961)
Facts of the case
In this case, the appellant was the proprietor of a business that produced bidis. In the factory, the
petitioner and the other workers used tobacco and leave provided by the factory to roll bidis. There was
no agreement or contract between the owner and the petitioner. He was not required to work in the
factory for specific hours or days. He could enter or leave the factory as he wished. He is allowed to take a
day off work at any time, and with the owner’s consent, he is also allowed to take a 10-day leave of
absence. He wasn’t asked to roll bidis in the factory, but with the owner’s permission, he may take them
home to roll bidis that were given to him. There was neither actual supervision of the work he did in the
factory nor a master-servant relationship between the petitioner and the appellant. There was no
minimum production requirement, and he received fixed rates based on the number of bidis, or piece
prices for rolling bidis.
Issues involved
The issue involved was whether the petitioner complied with the definition of a worker under the
Factories Act of 1948 or not.
Judgment of the case

In accordance with Section 2(l) of the Factories Act of 1948, the petitioner is not a worker.
Shri Suresh Kumar Jalan & Ors v. State of Bihar, (2011)
Facts of the case

In this case, the petitioners were the directors of a factory called Carbon Resources Private Limited,
where a factory inspector investigated the premises and discovered numerous violations of the Factory
Act. The inspector filed a prosecution report against the petitioners, who were factory directors. Under
Section 92 of the Factories Act, the Chief Judicial Magistrate took charge of the offence. The petitioners
filed an appeal with the High Court of Patna to quash the order of the Chief Judicial Magistrate.
Issues involved
The issue involved was whether the petitioner’s appeal with the High Court of Patna to quash the
Chief Judicial Magistrate’s judgment under Section 92 of the Factories Act had merit or not.
The petitioner’s counsel was providing evidence to show that, according to Section 92 of the
Factories Act, only the manager or occupier can be held responsible for violations committed in the
Page 82 of 94
factory. However, based on the judgement rendered by the Chief Judicial Magistrate, directors of the
factory cannot be penalised under Section 92 of the Factories Act. The Chief Judicial Magistrate’s order
was quashed by the High Court of Patna because directors cannot be penalised under Section 92 of the
Act. It was noted from this case that directors cannot be held responsible for the Act’s violations; only the
manager or occupier is responsible.
P.Trivikrama Prasad v. The State of AP by its Assistant Inspector of Factories, (2016)

Facts of the case
In this case, the deputy chief inspector of factories filed a private complaint against the petitioner
for violations of Section 32(a) and Section 41 of the Factories Act, which are punishable under Section 92
of the Act. The petitioner failed to provide D-rings to the cane trally side plate to support the employees
as they would safely get down from the trolley once the crane loading was complete. They also failed to
provide ladders and helmets, which resulted in some unskilled workers getting hit while working and
causing them to die. Since no helmet, d-rings, or ladders were provided, the occupier/managing director
of the entity or the manager (i.e., the petitioner) was made responsible. Then the petitioner filed a
criminal petition against the factory inspector.
Issues involved
The issue involved was whether the criminal petition filed against the accused would be rejected or
allowed to proceed.

The Hyderabad High Court held that the occupier or managing director (petitioner), who neglects to
provide d-rings, ladders, and helmets to the employees for their safety and fails to teach them during
hazardous times, is at fault. Therefore, the criminal petition brought against the respondent is dismissed
and quashed. As a result, the petitioner is responsible for his ignorance and failure to maintain the
factory properly.
New Amendments of Factories Act
Amendment (1954)
When the Indian government accepted the ILO conventions prohibiting the employment of women and
children in factories at night. Sections 66, 70, and 71 of the Factories Act of 1948 were amended in order
to indicate this ratification. The other provisions were amended at the same time. Therefore, on
December 25, 1954, the Factories (Amendment) Act, 1954 became effective and made the following
significant changes:
• Amendment to Section 4.
• The amendment to the definition of the manufacturing process includes type composing for
printing.
• Women and young people were prohibited from cleaning, lubricating, and operating motion
machinery.
• Encasement of machinery.
• The safety criteria for lifting equipment were explicitly stated in an amendment to Section 29.
• The employees may work for 6 straight hours without being required to take a rest during a 6-
hour shift.
• Shift workers are free from overtime duties if a shift worker arrives late.
• Amending Chapter VIII on leave with pay to fix 240 days of attendance and increase the limit
on carried forward leaves, etc.
• Section 93 has been rewritten to explain the responsibilities of the owner and occupier.
Amendment (1976)
After the amendments of 1948 and 1954, there was a continuation of industrial growth and a need for
safety officers to advise management on concerns about industrial safety and health. The Factories
(Amendment) Act 1976 was passed and came into effect on October 26, 1976, as a result of numerous
Page 83 of 94
judgments concerning the definition of a worker; a tendency to not include contract labour from that
definition but there must be proof of master and servant relationship; and a need for amendments to
many other provisions, including the penal Section.
3. Provision relating to Hazardous Process and working conditions.
Hazardous means “dangerous or risky” and employment means “hiring or giving work to someone or
engaging in work under someone”. So basically hazardous employment means engaging in some kind of
dangerous or risky work. Hazardous employment is done only in factories dealing with hazardous
processes. Hazardous processes are those process’ which may cause harm or risk and danger to the life
of anyone be it environment, person etc. These processes include machinery hazard, chemicals hazard,
workplace hazard etc.
Types of Hazardous Employment

There are several types of hazardous employment or workplace hazards such as :
1. Ergonomic Hazardous Employment
Ergonomic hazardous employment includes engagement of bodywork, that is this type of employment
causes the employer to engage in any kind of work like construction, etc that directly affect the body pose
or muscle strain or body positions. It may include repetition lifting, awkward posture, etc. Basically short
term employment in this type of workplace can lead to several injuries or pain but the long-term
employment in this type of workplace can lead to serious injuries that may affect the body for the long
term.
2. Physical Hazardous Employment
Physical hazardous employment consists of risky work in dangerous conditions which may affect the
body physically, sometimes without even touching. This may be caused by noise, radiation, temperature,
etc. The type of work in physical hazardous employment may include working in construction, oil, and
gas, mining, laboratory, organization which makes sound or radiation-related technology. Extreme care
shall be taken by the factories or the organization that hires the employers under certain hazardous
conditions like use of proper technologies, proper training, proper instructions given, proper equipment
used.
3. Chemical Hazardous Employment
Chemical hazardous employment mostly consists of chemical production, which in a way are harmful,
because inefficiency in chemical handling (not stored, not used properly ) can lead to several injuries and
illness, sometimes even deaths. Chemicals can cause prolonged injury or never-ending injury to anyone
working with it if not handled properly, as it can harm the skin, cause inhalation, ingestion etc. Some
chemical hazardous employment are safer than others but not to people who are prone to chemicals or
sensitive to chemicals.
Biological Hazards
There are various types of diseases, allergies, that a person develops from his day-to-day life and that’s
basically because of exposure to anything (like animal husbandry, plant materials, people, toilet
cleansing) that are associated to any kind of disease or allergies. Basically, this kind of hazardous
employment is done in farms, private industries laboratory, nursing homes, emergency facilities of the
hospital, daycare services, hospitals, college, universities etc. This is one hazardous employment because
it includes working for people who may have some kind of disease or injuries.
Psychosocial
Psychological hazardous employment mostly deals with the mental health of a person. When a person
works in any kind of industry, he involves with the other employees in the industry, there can be
instances when the person is bullied or deals with a lot of stress, violence etc in his workplace. This can
lead to ineffective production. This type of hazardous employment is the most basic and most common
type of employment. However, nowadays may organizations have created a separate department that
deals with the stress of the workers and helps them on regular basis.
Page 84 of 94
Factory Act
We have witnessed a lot of growth in industries in India. As the country is developing industrial
reforms are also being held. The growth of industries, factories, organization has a huge role in growth of
Indian Economy. As the growth continued, many poor people started working in the factories for more
profitability through better earnings, but the main problem faced was that working in factories is
extremely hazardous, it may give money to poor people but would also be causing them lifelong injuries.
The factory act was first enacted in 1881, seeing the problem of not having any kind of provisions for the
working conditions in the factory, but the act was amended several times as it showed many loopholes
and defects. Finally The Factory Act, 1934 was consolidated and amended the provisions related to labor
environment and protection in 1948 and the came into force on 1949.
There were several objectives set by the government before enacting the Factories Act, 1948 and they
are as follows:
1. The main objective was to regulate the working conditions of the workers working in hazardous
conditions.
2. To regulate the working hours for the workers, as it says no worker shall work for more than 48
hours a week.
3. This lays down certain provisions that helps in regulating the health of the workers by taking
every necessary precautions like regulating temperature, proper drainage system, ventilation,
adequate lighting etc.
4. This act also regulates certain provisions which look for safety of the workers working in it.
5. There are provisions in this act which enable factories to keep every sort of facilities which can be
used for the welfare of the workers. for example medical facilities, clothes storing facilities,
restrooms etc.
6. And for the application the following provisions this act also gives punishment to the person
violating the above laws which can be imprisonment or fine or both.
Hazardous Employment under Factory Act

Under the factory act, many provisions were made for hazardous employment in hazardous processes.
According to the factory act, first schedule, hazardous processes means any kind of process or activity
that would cause damage to the person engaged to it or the environment1.
The provisions made for employment in hazardous processes are as follows:
1. Section 41
i. This provision was inserted when the amendment of this act took place in 1987
ii. in these 2 schedules were included
iii. first one is industries involved in hazardous process
iv. second one is the permissible level of certain chemicals used in the factories
2. Section 41a
i. This section deals with the appointment of ‘site appraisal committee which suggest the location
the factory
ii. this committee include the chief inspector, representative of Central board of prevention of water
pollution, representative of the meteorological department, representative of town planning and
occupational health
3. Section 41b
i. This section states that it is the duty of the occupier to disclose the information if the site where
site is related is hazardous in nature
ii. this information should be disclosed to the local authority, general public and workers.
4. Section 41c
i. Under this section the occupier of the factory is obliged to maintain the records, health or his
workers
ii. He is also responsible to appoint qualified supervisors to look after the workers and provide all
the necessary facilities
Page 85 of 94
5. Section 41d
This sections states that the government should appoint an inquiry committee for the production
of hazardous material so that they could regulate the safety and health measures and take actions
accordingly.
Apart from this various health and safety measures are also taken under provisions of the Factories Act,
1948 :
1. Section 11 talks about the cleanliness in the factory, which includes the cleanliness of the
environment, machines & workers as well
2. Section 13 talks about the regulation of temperature and ventilation in the factory
3. Section 18 and section 19 talks about the mandatory system of drinking water & urinals and
latrines respectively
Since most of the factories deal with hazardous processes, the legislation body has laid down rules and
regulations that help the people under hazardous employment to live with dignity and in the safe
environment according to Article 21 of the constitution. The government has done many amendments to
the provisions of the Factories Act, 1948 and will continue to do if anything would trouble or violate the
fundamental rights of the people under hazardous employment.
4. Penalties and Procedures.

In India, After independence, there is a fast-growing development of factories. There is no law that
protects the workers right under factories. There is a various unsatisfactory provision related to health,
safety, and welfare of workers. There is a need to make a law which provides protection to the right of
workers. After that Factories Act, 1948 is formed and is come in force on 1st April 1949. This Act protects
the rights of workers, so to channelized all the provisions of this Act. There is a necessity to make the
provision of a Penalties then it was provided under Chapter X of this Act. In some sort of punishment is
provided to offenders under this Act. Penalty creates fear in the mind of the offender so he follows the
provision of Factories Act, 1948.
Various form of the penalties provided under the Factories Act 1948
There are various penalty is provided under this Act
1. The general form of penalty

The general form of penalty is provided under Section 92 of this Act. If any factory makes any provision,
rule or order in writing which is contrary to the provision of this Act then the occupier and manager shall
be guilty under this Act. The imprisonment under Factories Act which may extend to two years or fine
which may extend to one lakh rupees. If an offender continues the contravention after conviction then
fine may extend to one thousand rupees per day.
If there is a contravention related to the provision of the Safety of workers under Chapter IV or Section
87 (Dangerous Operation) then this has resulted in the death or serious bodily injury of the worker then
the offender is liable for that. In the case of death fine shall not less than twenty-five thousand rupees and
in serious bodily injury fine shall not less than five thousand rupees provided under this Act.
2. A penalty in the form of liability of the owner of premises

A penalty in the form of liability of the owner of the premises in certain circumstances mentioned under
Section 93 of the Factories Act, 1948.
• If there are any separate building from the premises. This separate building was given to lease for
work as a factory then the owner of the premises has a responsibility to provide proper
maintenance and facility to workers like approachable roads, drainage systems, Water supply,
lighting, and sanitation.
Page 86 of 94
• The chief inspector has a power in subject with the state government to issue directions, related
to the proper maintenance of the facility in the premises of factory-like proper roads, drainage
system, water supply, lighting, etc.
• In any premises, independent or self-control, floor or flat are given in lease to another occupier.
The occupier has a responsibility to a given proper facility like-
• Latrines urinals and washing facility are proper or not, Water is properly provided or not.
• Proper fencing of machinery and plants for the safety of workers working under the factory.
• No material put on stairs and common passage leave sufficient space for passing the
passage
• Taken precautions in case of fire and emergency arise.
• Proper maintenance of lifts and hoists.
• The chief inspector sees all the above facilities if this facility is not properly maintained by the
owner of that premises then we can understand that owner as an occupier and manager of the
factory. Punishment is given to that owner of the premises.
In the various forms, the penalty is enhanced after a previous conviction
If the person is previously convicted and again doing the same offense so that the penalty of that person
is enhanced. It was mentioned under Section 94 of the Factories Act, 1948
If a person committed a crime under Section 92 of the Factories Act, 1948 and again doing the same
crime under the same section then punishment is –
• Imprisonment which may extend to three years or fine which may not less than ten thousand
rupees and may not extend up to two lakh rupees or both.
• If any court gives fine less than ten thousand rupees then it was necessary to specially mention
the reason for commuting the fine.
• If there is any contravention to the provision of Chapter IV or Section 87 due to it there is a result
of an accident causing death or serious bodily injury then the punishment for it. For death, fine is
not less than thirty-five thousand rupees and in case serious bodily injury then fine is not less
than ten thousand rupees.
When will be the penalty provided
The penalty will be provided for obstructing the inspector (Section 95)
• When the inspector is willfully obstructed to premises and stop them to use his power which is
provided under this Act.
• When inspector demand to produce any document or register for checking but they were not
provided the excess of theses documents or register.
• When the inspector wants to talk to the workers for inspecting but factory members were not
allowed the workers to talk with the inspector and sometimes they have concealed information of
the workers, also prevent the worker to talk them.
If the above consequences arise then punishment is –
Imprisonment which may extend to six months or fine which may extend to ten thousand rupees or with
both.
The penalty will be provided for wrongfully disclosing the result analysis of section 91
It was mentioned under Section 96
Section 91 is very important for punishing offenses. If the result of the sample report is published or
disclosed then it comes under offense. The punishment for is imprisonment which may extend to six
months or fine which may extend to ten thousand rupees or both.
The penalty is provided when there is any contravention of the provision of section 41-B, 41-C
and 41-H
It was mentioned under Section 96- A, which states that if there is any contravention with the provision
of Section 41-B, 41-C, and 41-H then imprisonment which may extend to seven years and with fine which
may extend to two lakh rupees. After the conviction offense continues then fine is extend to five thousand
rupees per day. If one year is passed but still there is a contravention of provision then imprisonment
extended up to ten years.
Page 87 of 94
Offenses have done by workers

It was mentioned under Section 97 that
• There are certain duties of workers which are mentioned under section 111 if it was not fulfilled
then fine is imposed which may extend to five hundred rupees.
• The occupier or manager of the factory is not liable if they prove that they take all reasonable care
and prevention then they were held not guilty for the actions of workers.
When anyone produces a false certificate of fitness then the penalty will be provided
In section 98, it was stated that the occupier or manager of the factory or parents of a child or child
himself makes a false certificate then the punishment is provided to that person. Imprisonment which
may extend to two months or fine which may extend to one thousand rupees.
If anyone provided double employment of child then the Penalties will be provided.
In Section 99
If a child works in a factory. parents or guardian or any person who has custody of the child or controls
the child using force on the child to do extra work for the benefit of wages then the court provides the
punishment. Fine which may extend to one thousand rupees. If parents, guardians or that person who
has control child prove that they were not forcing the child then they were held not guilty for that.
Opportunity for occupier or manager of the factory to escape from his liability
In under Section 101
• When the charges imposed on the occupier or manager of the factory. The notice of intention is
given after receiving the notice, manager or occupier within 3 days file a duly complained.
• The manager or occupier alleges that we are not the true offender of that crime. Another person is
liable for that.
• The court has do cross-examination of that another person for satisfaction and call them for
hearing.
The hearing happened but that another person did not come in front of court then the court adjourns the
proceeding and wait for three months.
• Court believes that the real offender is the occupier or manager of the factory then the court
punished that offender.
Power of the court

In section 102, the power of the court to make an order
It was stated that the court provides punishment to the offender but also see the public interest and
remedial punishment is provided.
Presumption as to employment
In Section 103, If any worker working on a machine except at the time of interval then that person
assumed as an employee of that factory.
Onus as to age
In Section 104, onus means to prove. The burden of proof of age lies in the accused himself. The
certificate of certified surgeon regarding age worked as evidence in this case. If any question is arises in
the age of workers working in a factory.
The onus of proving limits of what is practicable, etc.-

In Section 104-A, If there is any contravention with the provision of this Act or rule made thereunder, for
the offense proceeding is done. Court passed his verdict and impose the duty. Those people who fail to
comply with the duty then they have to prove that this is practically impossible or they have taken all the
measures properly.
Cognizance offense
In Section 105, In this, no court can entertain the case without the written permission of an inspector.
Only the presidency magistrate or magistrate of first-class can entertain the case.
Page 88 of 94
Limitation of Prosecution
In Section 106, when the offense comes in the knowledge of inspector on that date, within three months
we file a complaint. If someone wants to file a complaint against the written order of an inspector then
within six months we file a complaint.
Jurisdiction of court
In Section 106-A, where the plant or factory is situated on that area of the court has jurisdiction to
entertain the case.
Conclusion
For the success of every legislation, there is a need for proper execution. The provision of penalty helps
the legislature for execution. The penalty which is provided under the Factories Act, 1948 is very less. If
we see the reality the manager or occupier due to less effective penalty escapes from their liability just to
pay the fine. If we interpret some sections of the penalty “OR” word is mentioned. This word “OR”
provides benefits to managers or occupiers. There is a need for changes in the provision of penalty.
5. Apprentices and their training with object and scope.
Apprentices Act 1961

Acknowledging that training imparted in institutions are not sufficient for acquisition of
employable skills and needs to be supplemented by training at the workplace, the Apprentices Act, 1961
and Apprenticeship Rules,1962 was enacted with the prime objective to utilize fully the facilities
available in industries for imparting practical training and thus developing skilled manpower for
industries. Initially, the Act covered the apprenticeship training for the trade Apprentices. Subsequently,
the Act was amended in 1973, 1986 and 2014 to bring the Graduates, Technician, Technician
(Vocational) and Optional Trade Apprentices respectively under its purview and Apprenticeship Rules,
1992 were revised in year 2015.
Introduction:
The rules and regulations for training of apprentices is dealt by “THE APPRENTICES ACT, 1961”, read
with “Apprenticeship Rules, 1992”, (central rules).
Application of act: This act applies to whole of India including Jammu and Kashmir.
Under sec 8, As per basic scheme of the Apprentices Act, every employer is required to provide training
to apprentice.
Apprentice under the act means a person who is undergoing apprenticeship training in pursuance of a
contract of apprenticeship.
Apprenticeship training means a course of training in any industry or establishment undergone in

pursuance of a contract of apprenticeship and under prescribed terms and conditions which may be
different for different categories of apprentices.
Employer means any person who employs one or more other persons to do any work in an
establishment for remuneration and includes any person entrusted with the supervision and control of
employees in such establishment.
Establishment includes any place where any industry is carried on and where an establishment consists
of different departments or have branches, whether situated in the same place or at different places, all
such departments or branches shall be treated as part of the establishments.
Page 89 of 94
Objective of Act:
-To provide practical training in various trades to qualified persons including engineers and diploma
holders
-To meet the increasing demand for skill craftsmen.
-To utilize facilities available for training apprentices.
-To promote of new manpower skill.
Criteria for eligibility of establishment engage apprentice:

The employers having six or more workers shall only be eligible to engage apprentices.
Establishment having number of workers not exceeding 40 for such establishment engagement of
apprentice is not obligatory.
Eligibility to get registered as apprentices

• a person shall not be less than 14 of age, and for designated trades related to
hazardous industries, not less than eighteen years of age
• must satisfy the standards of physical fitness
• must satisfy the standards of education
Note: different standards are prescribed in relation to apprenticeship training in different designated
trades and for different categories of apprentices.
Reservation of training places for SC, ST and Backward classes:

In every designated trade, training places shall be reserved by the employer for SC, ST and backward
classes. The number of training places to be reserved for SC, ST shall be according to Schedule-IIA of
Apprenticeship rules and for Backward classes shall in accordance with the norms followed in the
relevant state or union territory.
Contract of apprenticeship:
The employer and apprentice must enter into a contract of apprenticeship. Such contract will have such
terms and conditions as may be agreed to by the parties to the contract, but such terms and conditions
shall not be inconsistent with any provision of this Act or rules.
The apprenticeship training will commence on the date on which the contract of apprenticeship has been
entered.
Employer must upload the contract on the Portal site apprenticeship.gov.in within seven days, for
verification and registration.
Number of apprentices an employer can engage?

Establishment shall engage apprentices in a band of 2.5 per cent. to 10 per cent. of the total
strength of the establishment including contractual staff. In the establishment number of apprentices
should be less than 2 per cent. of the total strength of the establishment and more than 15 per cent. of the
total strength of the establishment subject to the condition that he shall fulfill apprentice months
corresponding to 2.5 per cent. obligation in a financial year.
Every employer shall disclose their intention of engagement of apprentices on portal site as well
as establishment’s portal-site (if existing) as per quarters given below:
(a) the 1st April to the 30th June
(b) the 1st July to the 30th September
(c) the 1st October to the 31st December
(d) the 1st January to the 31st March
Page 90 of 94
Payment of stipend to apprentices:
As the Apprentice is a “Trainee” & not the worker; will be entitled for Stipend and not the Salary/Wages.
• The minimum rate of stipend per month payable to trade apprentices shall be fallows namely:
• During the 1st year of training 70% of minimum wage of semi-skilled workers
• During the 2nd year of training 80%. of minimum wage of semiskilled workers
• During the 3rd and 4th year of training 90% of minimum wage of semiskilled workers
Above stipend shall be paid as per wages of semi-skilled workers notified by the respective state and
union territory.
• The minimum rates of stipend payable to Graduate, Technician and Technician (Vocational)
Apprentices shall be as follows:
• Graduates Apprentices - Rs.4984/-per month
• Sandwich course (Students from Degree institutions) and Technician Apprentices - Rs.3542/-per
month.
• Sandwich course (Students from Diploma institutions) - Rs.2890/-per month.
- Technician (Vocational) Apprentices - Rs.2758/-per month.
The employer is required to pay minimum stipend to apprentice. In some cases, burden of part of stipend
is borne by Government.
Time of payment of stipend: The stipend for a particular month shall be paid by the tenth day of the
following month
Hours of work and overtime:

total hours of work should be 42 to 48 hours (including the time spent on Related Instruction)
1. The apprentice shall not allow to work overtime except with the approval of the Apprenticeship
Adviser
Leave and holidays:

Apprentice is eligible for a leave in 12 months as given below
1. Casual leave of 12 days
2. Medical Leave of 15 days and
3. Other leaves of 10 days and to such holidays as are observed in the establishment in which he is
undergoing training.
An apprentice is not a worker:

Section 18 of the Act lays down that every apprentice undergoing apprenticeship training in a
designated trade in an establishment shall be a trainee and not a worker. It further states that the
provisions of any laws pertaining to Labour does not apply to an apprentice, except certain specified
provisions of the Factories Act, 1948, Mines Act, 1952 and Employees’ Compensation Act, 1923 in
relation to health, safety and welfare of the apprentices.
Records and returns:

1. Every employer shall maintain records of the progress of training of each apprentice undergoing
apprenticeship training in his establishment in form of a workshop or laboratory note book.
2. Every such employer shall also furnish such information and returns in such form, to such
authorities and at such intervals as may be prescribed.
Obligation of employers:
• Provide proper training to apprentice.
• If employer is not qualified in trade then, appoint a qualified trainer.
• Provide adequate instructional staff, possessing such qualifications as may be prescribed
Page 91 of 94
• Carry out his obligations under the contract of apprenticeship.

Obligations of apprentices:
• Learn his trade conscientiously and diligently
• Endeavor to qualify himself as a skilled craftsman before the expiry of the period of training
attend practical and instructional classes regularly
• Carry out all lawful orders of his employer and superiors
• Carry out his obligations under the contract of apprenticeship
Few important compliance:
• Submission of half-yearly report which is maintained in the Form Apprenticeship-IA of
Schedule-III to Regional Director or State Apprentice Advisor by 15th April or 15th October, as
the case may be.
• Submission of half-yearly report regarding Apprentice Engagement in Form Apprenticeship-2 of
Schedule-III to the Regional Director or the State Apprenticeship Adviser, by 15th April or 15th
October, as the case may be.
• Submission of report on quarterly basis in Form Apprenticeship-6 of Schedule-III (Record of
Progress of Apprentice) to the Director of Regional Board of Apprenticeship Training.
• Quarterly sending report of the work done and training undertaken by the apprentices engaged in
his establishment, in Form Apprenticeship-1 specified in Schedule-III to the Director, Regional
Board of Apprenticeship Training concerned.
Other important provisions:
1. The employer is required to provide training facilities to apprentices. Multiple employers can
come together, either themselves or through an approved agency to provide apprenticeship
training to apprentices under them. Thus, the facilities of training apprentices in theoretical
subjects can be shared among employers.
2. The number of apprentices to be trained will be based on number of workers employed in that
industry, directly or indirectly.
3. The period of training for each designated trade has been specified. The apprentice should have
specified educational qualification and minimum physical fitness as specified.
4. After the training, the trade apprentice may appear for the test (on optional basis) conducted by
National Council.
5. The employer is not bound to offer employment to the trainees after their training period is over
but can have its own policy for recruiting apprentices who have completed the apprenticeship
training. It is not mandatory to offer employment to the apprentices after training.
Page 92 of 94
6. Authorities constituted and Penalties.
Contravention Penalty
Contravention of the act relating to number of apprentice Punishable with fine of five hundred
which employer is required to engage rupees per shortfall of apprenticeship
month for first three months and
thereafter one thousand rupees per
month till such number of seats are filled
up.
Neglecting to furnish any information, furnishing false punishable with fine of Rs. 1,000 for
information or return, refusing to answer any necessary every occurrence
question, refusing to offer any reasonable facility to the
apprenticeship advisor, employing apprentice with work not
connected with training, makes wrong payment to him,
make apprentice work overtime, Engaging unqualified
apprentice, failing to carry out terms and obligation of the
contract of apprenticeship, requires an apprentice to take
part in any output bonus or incentive scheme
Contravention of any other provisions if the Act Punishable with fine which shall not be
less than Rs. 1,000 but may extend to Rs.
3,000
The main purpose of the Act is to provide practical training to technically qualified persons in
various trades. The objective is promotion of new skilled manpower. The scheme is also extended to
engineers and diploma holders.
The Act has got added importance in view of thrust of present Government on training and
employment generation.
The slogan of Modi Government is ‘Seekho Hunar, Bano Honhaar’. The intention is to make India
the Skill Capital of the world. ‘Make in India’.
As per basic scheme of the Apprentices Act, every employer is required to provide training to
apprentice [section 8 of the Act].
The appointment of apprentices may be for designated trade or optional trades.
In addition to designated trade, an employer is free to have ‘optional trades’. He himself can design
syllabus for such optional trades.
The scheme is applicable to engineering, non-engineering, technology or any vocational course.
The employer is required to provide training facilities to apprentices.
Multiple employers to come together, either themselves or through an approved agency to
provide apprenticeship training to apprentices under them. Thus, the facilities of training apprentices in
theoretical subjects can be shared among employers.
The employer is required to pay minimum stipend to apprentice. In some cases, burden of part of
stipend is borne by Government.
The number of apprentices to be trained will be on the basis of number of workers employed in
that industry, directly or indirectly (i.e. direct employment or through contractor.
The period of training for each designated trade has been specified.
The apprentice should have specified educational qualification and minimum physical fitness as
specified.
Employer is required to enter into Apprenticeship Contract with Apprentice. The contract is
required to be registered with Apprenticeship Adviser.
Hours of work and leave of apprentices will be as per the discretion or policy of the employer.
Page 93 of 94
A portal site is being developed to use Information Technology to file Apprenticeship Contract,
periodic returns etc.
The employer is liable for compensation in case of injury to the Apprentice, as per provisions of
Employee’s Compensation Act.
Labour laws like ESI, PF, Minimum Wages Act, Industrial Disputes Act etc. are not applicable to the
apprentices. However, health, safety and welfare regulations as contained in Factories Act, Mines Act etc.
are applicable in respect of apprentices also.
After the training, the trade apprentice may appear for the test (on optional basis) conducted by
National Council.
The employer is not bound to offer employment to the trainees after their training period is over,
but can have its own policy for recruiting apprentices who have completed the apprenticeship training. It
is not mandatory to offer employment to the apprentices after training.
Central Government shall be ‘Appropriate Government’ for (a) Establishments which are
operating business or trade from locations situated in four or more States (b) Establishments owned,
controlled or managed by Central Government (c) Public Sector Companies owned by Central
Government.
In other cases, State Government will be the ‘Appropriate Government’.

Amendments made to Apprentices Act in 2014 – Major amendments have been made in December
2014 in the Apprentices Act. The Amendment Act has received assent of President on 5-12-2014.
The major amendments are as follows —
•
• Non-engineering areas covered under the provisions of Apprentices Act.
• Employer allowed to provide for ‘optional trades’. He can design his own syllabus for that purpose.
• Multiple employers can join either themselves or through an agency to provide apprentices training.
• Hours of work and leave will be as per the discretion or policy of the employer.
• If employer is employing 500 or more workers, he is required to make provisions of basic training to
those who had not undergone any institutional training. In other cases, the basic training will be
provided by institution having adequate facilities.
• Details are to be filed electronically on ‘portal site’ to be developed.
• Punishment for offences will be fine (no imprisonment).
Page 94 of 94

Labour Law and Industrial Relations - I

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Labour Law and Industrial Relations - I

Uploaded by

Copyright:

Available Formats

Sub- LABOUR LAW & IR-I, SEM -1, Mumbai University New Syllabus – 2022-2023, Marks -75

LABOUR LAW AND INDUSTRIAL RELATIONS- I

Trade Unionism in India

Post World War I period

The Buckingham Mill Case

Period Post 1947

Trade Unionism in India from 1970 to 1990

Trade Unionism in India from 1990 to 1999

Trade Unionism in the 21st Century

1.3 Definition, Registration and Recognition.

What is a Trade Union? Meaning and Definition

As per G.D.H. Cole:

As indicated by S.D. Punekar:

Objective and Scheme of Trade Union Act, 1926:

Registration of Trade Union

Privileges and Immunities of Registered Trade Unions

1.4 Immunities in trade disputes: Criminal and Civil.

Immunities Against Criminal Conspiracy In Trade Disputes (Sec 17)

For getting the ideal outcomes, the TU began picketing.

Immunity from Civil Suit In Specific Cases (Sec 18)

1.5 Collective Bargaining – Purpose and its types.

Principles of Both the Parties

Different Levels Of Collective Bargaining

Stages of Collective Bargaining

Legal Boundaries For Collective Bargaining In India

Some of them are:

Perspective from Industrial Relation Code, 2020 On Collective Bargaining

Case Laws Related To Collective Bargaining

1. Hindustan Lever Ltd. V Hindustan Lever Employees Union, 1999

2. MRF United Workers Union V State of Tamil Nadu, 2009

3. P. Virudhachalam&Othrs. V The Management of Lotus Mills

1.6 Collective Bargaining Process, Advantages and Disadvantages.

Collective bargaining is a process of negotiating between management and workers represented by

(a) determining working conditions and terms of employment; and/or

Objectives of Collective Bargaining:

Advantages of Collective Bargaining:

Advantages of collective bargaining are as follows:

1. Collective bargaining gives workers a larger voice.

2. Collective bargaining can improve a worker’s quality of life.

Disadvantages of Collective Bargaining:

Disadvantages of collective bargaining are as follows:

1. Collective bargaining may require everyone to be bound by the contract.

1. Industry – Conceptual Analysis.

2. Concept – Industrial Dispute, Workman etc.

Industrial Dispute – Introduction and Meaning

Industrial Dispute – Definition

Industrial Dispute – Concept

Analysis of the provision of the Act reveals the following:

2. Industrial dispute is connected with –

Industrial Disputes have the following characteristics or essentials:

Industrial disputes may be among different parties.

Ordinarily, it is among the following parties:

Industrial disputes can be classified on the following grounds:

Type # 1. Interest Disputes:

(iii) Pension, Gratuity, Provident Fund and other Beneficiary Schemes,

Chief among them are as under:

Industrial Dispute – 5 Negative Impacts: Disruption in Production and Services, Impact on

Industrial Dispute – Measures Taken by Government for Prevention of Disputes: Payment of

(d) Awards and agreements should be speedily implemented.

The important tripartite bodies are the following:

3. Authorities under the Act.

Objectives of the Industrial disputes act 1947