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Q1 (a).Trace the evolution of Industrial relations in India. Ans. A study of modern industrial relations in India can be made in three distinct phases. The first phase can be considered to have commenced from about the middle of the nineteenth century and ended by the end of the First World War. The second phase comprises the period thereafter till the attainment of the independence in 1947, and the third phase represents the post-independence era. First Phase : During the first phase, the British Government in India was largely interested in enforcing penalties for breach of contract and in regulating the conditions of work with a view to minimising the competitive advantages of indigenous employers against the British employers. A series of legislative measures were adopted during the latter half of the nineteenth century, which can be the beginning of industrial relations in India. The close of the First World War gave a new twist to the labour policy, as it created certain social, economic and political conditions, which raised new hopes among people for a new social order. There was intense labour unrest because workers’ earnings did not keep pace with the rising prices and with their aspirations. The establishment of ILO in 1919 greatly influenced the labour legislation and Industrial relations policy in India. The emergence of trade unions in India, particularly the formation of All India Trade Union Congress (AITUC) in 1920 was another significant event in the history of industrial relations in our country. Second Phase : The Policy after the First World War related to improvement in the working conditions and provision of social security benefits. It was a period of boom for employers. With rising prices, their profits went up enormously. The wages of workers, however did not keep pace with this tendency. Their economic distress brought together and an organised working class movement began in the country resulting strikes or lockouts. During this period, as a result of ILO influence, various laws were enacted i.e. Workmen’s Compensation Act (1923), the Trade Unions Act (1926) and the Trade Disputes Act (1917). During the Second war, employers made enormous profits. The workers demanded a share in them. Bonus and dearness allowance were granted to them but as money wages did not increase in proportion to the rise in prices. The years immediately following the war were the most disturbed years from the point of view of the pattern of Industrial relations in India. In 1946 the Industrial Employment (Standing orders) Act and the Industrial Disputes Act, 1947 provided for the settlement of disputes.
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 1) Name : (Amresh Anjan)
Third Phase: Immediately after Independence, in the interests of the national economy, it was considered necessary to put a stop to strikes/ lockouts that interrupted production. A tripartite conference was, therefore convened in 1947, at which the industrial Truce Resolution was adopted, giving paramount importance to the maintenance of industrial peace. The Minimum Wages Act, The Factories Act and the Employees State Insurance Act were all enacted in 1948. When India became independent in 1947, industrial scene was subjected to considerable amount of chaos and confusion. Industrial unrest and shattered worker management relations have been prevalent everywhere. Govt. has emerged as an arbitrator between management and workers. It is in this context that the Industrial Disputes Act of 1947 deserves importance. During the second five year plan period, certain norms, mechanisms and practices were evolved which evolved which formulate the need based minimum wage, wage boards, guidelines on rationalisation, code of discipline, code of conduct, scheme for workers participation in management.
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 2) Name : (Amresh Anjan)
Q1 (b) Define Industrial Relations and examine its nature, scope and objectives. Ans. The term ‘Industrial Relations’ comprises ‘Industry’ and ‘relations’. “Industry” means “any productive activity in which an individual is engaged” and “relations” means “the relations that exist in the industry between the employer and his workmen.” V.Agnihotri defines “ the term industrial relations explains the relationship between employees and management which stem directly or indirectly from union-employer relationship”. According to C.B. Kumar “ Industrial relations are broadly concerned with bargaining between employers and trade union on wages and other terms of employment”. Nature or features of Industrial Relations: 1. Industrial relations are the relations, which are the outcome of the “employment relationship” in an industrial enterprise. Without the existence of two parties, the employer and the workmen such relationship cannot exist. 2. This relationship emphasises on the process of accommodations whereby the parties involved develop skills and methods of adjusting to and cooperating with each other. 3. The government/State evolves, influences and shapes industrial relations with the help of laws, rules, agreements, awards of the courts, and emphasis on usages, customs, traditions, implementations of its policies and interference through executive and judicial machinery. 4. Every industrial relations system creates a complex of rules and regulations to govern the work place, and work community with the main purpose of maintaining harmonious relations between labour and management by solving their problems through collective bargaining. Scope and objectives of industrial relations: The concept of industrial relations has a very wide meaning and connotation. In the narrow sense, it means that the employer, employee relationship confines itself to the relationship that emerges out of the dayto day association of the management and the labour. In its wider sense, industrial relations include the relationship between an employee and an employer in the course of the running of an industry and may project itself to spheres, which may transgress to the areas of quality control, marketing, price fixation and disposition of profits among others.
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 3) Name : (Amresh Anjan)
Objectives of Industrial Relations: i) To safeguard the interest of labour as well as management by securing the highest level of mutual understanding and goodwill between all sections in industry which take in the process of production. To avoid industrial conflicts, and develop harmonious relations, which is essential for productive efficiency of workers and industrial progress in a country. To raise productivity to a higher level in an era of full employment by lessening the tendency of higher labour turnover and frequent absenteeism. To bring down strikes, lockouts and gheraos by providing better and reasonable wages and improved living conditions, and fringe benefits to the workers. To bring about government control over such units and plants, which are running at losses or where production has to be regulated in public interest.
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 4) Name : (Amresh Anjan)
Q2(a). Examine the Evolution of Industrial Relations Policies in India. Ans. Evolution of Industrial Relations Policies 1. In pre-independence India State intervention in labour/ industrial relations had its beginning when the British Government in India was constrained to protect its commercial interests in this country. An ILO Publication observes : “ Far from protecting the interests of labour, the earlier attempts to regulate labour consisted of enactments such as the Assam Labour Act, the workmen’s Breach of Contract Act, 1859, and the Employers’ and Workmen’s (Disputes) Act of 1860. These Acts aimed at protecting the social system against labour rather than protecting labour against the social system. Deterioration in working conditions, because of greater development of industrial units: unduly low wages and consequent dissatisfaction of the working class; growing indiscipline among the workers; strained relations between labour and management the formation of ILO: the emergence of AITUC (1920) and demands for higher wages, improved working conditions led to serious industrial troubles and labour problems. The beginning of industrial relations dynamics can be traced back to the inception of the Indian Labour Conference as far as 1942 by B.R.Ambedkar, when the policy of bringing together three parties namely, govt., management and labour on a common platform as consultative tripartite forum for all matter of labour policy and industrial relations was accepted. 2. In Post-Independence India The Industrial Disputes Act (1947) provided for i. The establishment of a permanent machinery for the settlement of disputes in the shape of certain authorities like the Works Committee, Conciliation Officers, Industrial Tribunals, Labour Courts: Making an award of a Tribunal or any settlement brought about by the conciliator binding on the parties and legally enforceable.
This Act seeks: i. The prevention and settlement of industrial disputes in all industries through conciliation, arbitration and adjudication/ To prohibit strikes lock-outs during the pendency of conciliation and adjudication proceeding.
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 5) Name : (Amresh Anjan)
In 1950, two bills were brought by the government- a Labour Relations Bill and a Trade Unions Bill. They retained the provisions of the 1947 amendment. They also introduced the principle that “ collective bargaining would be compulsory for both employers and unions under stipulated conditions. Labour courts were empowered to certify unions as sole bargaining agents.
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 6) Name : (Amresh Anjan)
Q2 (b).Comment on the future of Industrial Relations in India. Ans.
FUTURE OF INDUSTRIAL RELATIONS IN INDIA
1. The first is the issue of strengthening collective bargaining by trying to determine a sole bargaining agent for negotiation. The state of Maharashtra has already passed a law for the creation of a sole bargaining agency in every unit and industry. Collective Bargaining is advocated where the parties involved have a fuller understanding. This will help to arrive at a speedier settlement of disputes between themselves. 2. The second issue relates to the gaps that are occurring as a result of the variations that occur in Central and State legislation as far as labour matters are concerned. In India, labour falls under the Concurrent List though NCL has made a recommendation for forming a common labour code, which is yet to be adopted. Adoption of this recommendation will go a long way in solving some of the problems that India’s legislation process in facing. 3. Another issue is that of worker’s participation in management. India has already experienced working of many forms of worker participation schemes but none of them seems to have made any headway. The reasons for the failure of these schemes need to be probed into. Its strategic importance extends beyond the limited frontiers of unionmanagement relationship and overlaps with the future prospects for Indian democracy on one hand, and the basic concepts and assumptions of economic development on the other. The set of strategic choices must be made in the midst of economic and political difficulties that the country is undergoing.
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 7) Name : (Amresh Anjan)
Q3 (a).Define Collective Bargaining and examine its characteristics. Ans. Collective Bargaining is process of joint decision making and basically represents a democratic way of life in industry. It is a technique adopted by two parties to reach an understanding acceptable to both through the process of discussion and negotiation. According to Prof. Paul Samuelson, “Collective Bargaining is the process of negotiation between firm’s and worker’s representatives for the purpose of establishing mutually agreeable conditions of employment”. ILO has defined Collective Bargaining as, “Negotiation about working conditions and terms of employment between an employer and a group of employees or one or more employee, organisation with a view to reaching an agreement wherein the terms serve as a code of defining the rights and obligations of each party in their employment relations with one another. Characteristics of Collective Bargaining: 1. It is a group process, wherein one group representing the employers and the other representing the employees sit together to negotiate terms of employment. 2. Negotiations form an important aspect of the process of Collective Bargaining i.e. there is considerable scope for discussion, compromise or mutual give and take in Collective Bargaining. 3. It is flexible or mobile and not fixed or static. 4. Collective bargaining is a process in the sense that it consists of a number of steps. It begins with the presentation of the charter of demands and ends with reaching an agreement, which would serve as the basic law governing labour management relations over a period of time in an enterprise. 5. It a bipartite process. 6. Collective Bargaining is a complementary process i.e. each party needs something that the other party has, labour can increase productivity and management can pay better for their efforts. 7. Collective Bargaining is continuous process. 8. It enables industrial democracy to be effective. 9. Collective Bargaining takes into account day to day changes, policies, potentialities, capacities and interests.
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 8) Name : (Amresh Anjan)
Q3 (b) Explain how Collective Bargaining can help in dealing with the challenges posed by the forces of globalisation and liberalisation. Ans. Collective bargaining is a written document signed by the representatives of labour and management. It is legal contract, which delineates the rights and obligations of the contracting parties in detail. The liberalisation in the scope of C.B i. The growing strength of the Unions which have pressurized management to include new subjects in the agreements; Increases profits, which have led to a favorable response in the demands of the employees;
iii. Increased prices along with increased production have contributed to expansion in the subjects for collective bargaining. iv. The liberal and sympathetic attitude evident in the decisions of the courts and legislative enactments have also favoured this expansion. Collective Bargaining in globalisation The representatives of the trade union and the employer negotiate and arrive at a settlement, but given the industry-cum-region convention in India, such national level agreements are few. At some tripartite conferences convened by the Government of India, certain specific issues have been negotiated and contracted e.g. the Agreement to Rationalise Work Practices and manning and related issues, concluded in 1951 between labour unions (INTUC) and management. The other agreement was the 1956 agreement on bonus for plantation workers between the representatives of the Indian Tea Planters Association, Indian Association and representatives of HMS.
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 9) Name : (Amresh Anjan)
Q4 (a) Explain the difference between mediation and conciliation. Ans. “Mediation” and “Conciliation” are regarded as equivalent terms referring to essentially the same kind of third-party intervention in promoting voluntary settlement of disputes. “Conciliation” is limited to encouraging the parties to discuss their differences and to help them develop their own proposed solutions. On the other hand “ Mediation” implies a stronger form of intervention, and mediator may be permitted to offer to the parties proposals for settlements. Mediation is an attempt by which third party brings together the opposing groups not only to iron out differences between them but also to find answer to problems or specified proposals and other alternative suggestions, whereas, Conciliation is a process by which representative of workers and employers are brought together before a third person or a group of persons with a view to persuading them arrive at an agreement by mutual discussion between them. The conciliator is a neutral third party whereas mediator has been described as a confidential advisor and an industrial diplomat. [The distinction between the two terms tends to disappear in industrial relations practice and there is no consistency in their use from one country to another.]
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 10) Name : (Amresh Anjan)
Q4 (b) Explain how conciliation helps in preventing and settling industrial disputes in an industry. Ans. Process of conciliation that helps in preventing and settling industrial disputes are mentioned below The Hard Posture Phase : The parties come to conciliation as adversaries in an openly declared dispute. They come with hardened attitudes. During this phase, each party invariably takes the stand that is wholly right and the other side wholly unreasonable or wrong; neither party can see or will admit any merit in any argument or proposition put forward by the other side. Search for Accommodation : In this phase, each party is primarily concerned with protecting its own bargaining position. Neither party normally takes the initiative in adopting an accommodation attitude. The conciliator’s objective is to induce them to adopt a more flexible attitude. Emergence of Appropriate mood for settlement of compromise : Here the conciliator encourages the parties to make modified proposals and counter proposals, which might indicate the areas of agreement within reach. Many conciliation rely upon a straightforward approach to the parties; others prefer to work in a subtle and calculated manner. Drafting of Agreement : When the conciliator’s efforts to settle dispute comes to an end, he takes some action to wind up his handling of the case. he may write a final report on his invention; and he may assist the parties in initiating further proceeding if his condition has not been fully successful. If a dispute is settled, the fact is reflected in an agreement. The conciliator adds his signature to an agreement reached during the conciliation proceedings. The report has to be submitted to the government as well as to the parties concerned within a specific time, indicating (a) the steps taken by conciliator to ascertain facts relating to the dispute (b) the steps taken to bring about the settlement (c) full settlement of facts and circumstances (d) the reasons for which the settlement could not be reached.
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 11) Name : (Amresh Anjan)
Q5 (a) Examine benefits arising out of arbitration. Ans. Arbitration has been popular in foreign countries, particularly in U.S.A Canada, New Zealand, Malaysia, because of the advantages of this system are as follows: 1. Since it is established by the parties themselves, arbitration has the particular advantage of bringing the dispute settlement procedure sown to the level of the parties to the dispute. 2. Since arbitration is established by agreement, it is more flexible than other procedures and can be adjusted to the views, desires and experience of the parties and to the circumstances obtaining in the undertaking and industry. 3. This procedure, operating at the level closest to the parties to the disputes, has the advantage of enabling the arbitrators to acquire much greater familiarity with the characteristics of the particular industry or undertaking than most courts or tribunals. 4. The procedure is relatively expeditious when compared to that in ordinary courts or Labour Tribunals. Ii cuts down delays and results in a prompt settlement of differences. 5. It is informal in character because the disputes are handled by the parties themselves, often without recourse to lawyers. Arbitration, therefore, is less expensive than other procedures. 6. Awards are capable of implementation without any grudge on the part of both the parties to the dispute and do not lead to further chances of litigation. 7. Since arbitration is based on the consent of both the parties, it helps build up a sound base for healthy industrial relations, mutual understanding and co-operation. 8. It is popular because it is suitable and compelling. It is far better than a costly work stoppage, even though not wholly satisfactory from either parties point of view.
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 12) Name : (Amresh Anjan)
Q5 (b) What are the various types of arbitration. Explain the importance of each one of them. Ans. There are two types of arbitration: (i) Voluntary arbitration Compulsory arbitration i) (ii)
Voluntary arbitration implies that the two contending parties, unable to compromise their differences by themselves or with the help of mediator or conciliator, agree to submit the conflict/ dispute to an impartial authority, whose decisions they are ready to accept. In other words, under voluntary arbitration the parties to the dispute can and do themselves refer voluntarily and dispute to arbitration before it is referred for adjudication. This type of reference is known as “voluntary reference”, for the parties themselves volunteer to come to a settlement though an arbitration machinery.
The essential elements in voluntary arbitration are : The voluntary submission of dispute to an arbitrator ; The subsequent attendance of witnesses and investigations, The enforcement of an award may not be necessary and binding because there is no compulsion. Voluntary arbitration may be specially needed for disputes arising under agreements. ii) Compulsory arbitration is one where the parties are required to accept arbitration without any willingness on their part. When one of the parties to an industrial dispute feels aggrieved by an act of the other. It may apply to the appropriate government to refer the dispute to an adjudication machinery. Such reference of a dispute is known as “compulsory” or “involuntary” reference, because reference in such circumstances does not depend on the sweet will of both the contending parties or any party to the dispute.
Under compulsory arbitration, the parties are forced to arbitration by the state when: the parties fail to arrive at a settlement by a voluntary method when there is a national emergency which requires that the wheels of production should not be obstructed by frequent work-stoppages the country is passing through a grave economic crisis there is a grave public dissatisfaction with the existing industrial relations public interest and the working conditions have to be safeguarded and regulated by the state.
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 13) Name : (Amresh Anjan)
Q7 (a) What are the permissible authorised deductions under the Payment of Wages Act, 1936? Ans. Deductions from the wages of an employed person shall be made only in accordance with the provisions of this Act and may be of the following kinds only namely: 1. Fine 2. Deductions for absence from duty 3. Deduction for damage to or loss of goods expressly entrusted to employed person for custody, or for loss of money, for which he is required to account, where such damage or loss is directly attributable to his neglect or default. 4. Deduction for such amenities and services supplied by the employer or by government or any housing board. 5. Deduction for such amenities and service supplied by the employer. (The word service does not include the supply of tools and raw materials required for the purpose of employment). 6. Deduction for recovery of advances i.e. travelling allowance or conveyance allowance. a) deduction for recovery of loans granted for house building or other purposes approved by the State Government and the interest due in respect there of. 7. Deductions of Income tax payable by the employed person. 8. Deductions required to be made by the order of court or other authority competent to make such order. 9. Deductions for subscription to and for repayment of advances from provident fund to which the provident fund act applies. 10. Deduction for payment to co-operative societies approved by State Government or to a scheme of insurance maintained by the Indian Post office. 11. Deduction for payment of premium on his life-insurance policy to the life insurance corporation of India. a) deduction made with the written authorization of the employed person, for the payment of contribution to any fund constituted by the employer or a trade union registered under Trade Union Act, 1926. Or the members or their families or both approved by the Government. b) Deduction made for payment of fees payable by him for the membership of any Trade Union Act, 1926. 12. Deduction for payment of insurance premium of Fidelity Guarantee Bonds. 13. Deduction for recovery of losses sustained by a railway administration on account of any rebates or refunds. 14. Deductions, made with the written authorised of the employed person, for contribution by the employed person, for contribution to the Prime Ministers National Relief Fund. 15. Deduction for contribution to any insurance scheme framed by the Central Government for the benefit of its employees.
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 14) Name : (Amresh Anjan)
(A) The total amount of deductions which may be made in any wage period from the wages of any employed person shall not exceed. (i) In case of payments to co-operative societies seventy five percent of such wages and (ii) In any other case fifty percent of such wages. Q7 (b) Explain the procedure laid down under Minimum Wages Act, 1948 for fixation and revision of minimum rates of wages. Ans. Section 5: Procedure for fixing and revising minimum rates of wages For this purpose, the appropriate government shall either a) appoint as many committees and sub-committees as it considers necessary to hold enquiries and advise it in respect of such fixation or revision, as the case may be or. b) by notification in the official gazette, publish its proposal for the information of person likely to be affected thereby and specify a date, not less than two months from the date of the notification on which the proposals will be taken into consideration. Section 6: Advisory Committee and sub-committees shall be formed for the purpose Section 7: Advisory Board- For the purpose of co-ordinating the work of [committees and sub-committees appointed under sec 5] and advising the appropriate government generally in the matter of fixing and revising minimum rate of wages, the appropriate government shall appoint an advisory board. Section 8.: Central Advisory Board (1) For the purpose of advising the central and state government in the matters of the fixation and revision of minimum rates of wages and other matters under this act and for co-ordinating the work of the advisory board. (2) The central advisory board shall consist of persons to be nominated by the central government representing employers and employees in the scheduled employments, who shall be equal in number, and independent persons not exceeding one-third of its total number of members, one of such independent person shall be appointed the chairman of the board by the central government. Section 9: Composition of committees etc. each of the committees and the advisory board shall consist of persons to be nominated by the appropriate government representing employers and employees in the
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 15) Name : (Amresh Anjan)
scheduled employments, who shall be equal in number and independent persons not exceeding one-third of its total number of members, one of such independent person shall be appointed the chairman by the appropriate government.
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 16) Name : (Amresh Anjan)
Q6 (a) What are the model principles for reference of disputes to Adjudication? Ans. Model principles for reference of disputes to adjudication The Indian Labour Conference (held in Madras in July 1959) laid down model principles for reference of disputes to adjudication. The Central Industrial Relations Machinery is to take these principles into consideration before recommending adjudication. These principles were: 1. All disputes ordinarily be referred to adjudication on request. 2. Disputes may not, however, be ordinarily referred to adjudication. a. Unless efforts at conciliation have failed b. If a strike or lock-out is declared illegal by a court. c. If the issues involved have been the subject matter of recent judicial decisions. d. If it is in respect of demands for which other legal remedies are available i.e. matters covered by the Factories Act, Workmen’s Compensation Act, etc. 3. Industrial disputes raised in regard to individual cases, may be referred for adjudication when legality or propriety of such action is questioned, and in particular: a) b) c) If there is a case of victimization or unfair labour practice: If the standing orders in force or the principles of natural justice have not been followed; and If the conciliation machinery reports that injustice has been done to the worker.
Whenever an industrial dispute exists, or even where there is a mere apprehension that will arise the government may make a reference of the dispute for adjudication. The following principles regarding the powers of the government to make a reference of industrial disputes have been established by a series of judicial decision: i) The Government must be of the opinion that an individual dispute actually exists or is apprehended. Government’s order cannot be challenged on ground that, the Government has no material before it to come to the conclusion that the dispute exists.
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 17) Name : (Amresh Anjan)
Expediency of making a reference is matter entirely for the government to decide. Making of reference, is not a duty or an obligation on the part of the government but a matter of discretion. The Government may refer the dispute or any matter appearing to be connected therewith or relevant to the dispute, whether it relates to any matter specified in the Second Schedule or the Third Schedule, to a tribunal for adjudication:
Where the dispute relates to any matter specified in the Third schedule and is not likely to affect more than 100 workers, the government may make a reference to a labour court; It is mandatory upon the government to make a reference of disputes to courts or tribunals where: a) the dispute relates to a public utility service; b) a notice of strike or lock-out has been give; c) where the parties to the dispute apply in the prescribed manner for reference and the government is satisfied that the persons represent the majority of each party.
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 18) Name : (Amresh Anjan)
Q6 (b) Define a grievance. Draft a model grievance procedure. Ans. “ Grievance is any discontent or dissatisfaction, whether expressed or not, whether valid or not, arising out of anything connected with the company which an employee thinks, believes and even feels to be unfair, unjust or inequitable.” “ A written complaint filed by an employee and claiming unfair treatment”. “ A complaint of any one or more workers in respect of wages, allowances, conditions of work & interpretation of service stipulations, covering such areas as overtime, leave, transfer, promotion, seniority, work assignment and discharge constitute grievance”. Model Grievance Procedure: GRIEVANCE PROCEDURE
Work with grievance ------------------------Immediate Superior -------------- Time limit for answering … 48 hrs Dept. Head -------------- Time limit for answering … 3 days Grievance Committee -------------- Recommendation within …. 7 days Higher management for revision --------- Union may ask for voluntary arbitration Voluntary arbitration Verbal referring
Decision binding on both parties
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 19) Name : (Amresh Anjan)
Q8 (a)“Bonus is a dynamic concept”. – Elucidate. Ans. This Act aims at providing a simpler formula for the payment of bonus to persons employed in certain establishment on the basis of profits or on the basis of production or productivity, so that disputes on this account are minimised. It extends to the whole of India, and is applicable to every factory as defined under the Factories Act and every other establishment in which 20 or more persons are employed on any day during a year. The Government can, however, extend this Act and make it applicable to establishments employing between 10 and 20 workers. It covers all workers including supervisors, managers, administrators etc. employed on a salary or wages not exceeding Rs.3500 per month. The salary or wage of a worker includes basic wage and dearness allowance only. The Act, however, is not applicable to apprentices, and it excludes employees in an establishment and in an industry carried on by or under the authority of an department of the Central Government or State government. Nothing in this Act applies to an establishment in the public sector if in any accounting year, it sells any goods manufactured or produced by it or renders any services in competition with an establishment in the private sector, and income from such sale of goods or services rendered, or both, is less than 20 percent of its gross income for that year. In the case of new establishment bonus is not payable during the first five accounting years following the accounting year in which the employer sells goods. For the accounting year in which the employer derives profit from such establishment, bonus for this year is to be calculated in accordance with the provisions of this Act in relation to the year, but without applying the provision regarding set on and set off.
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 20) Name : (Amresh Anjan)
Q8 (b) Examine the provisions relating to registrations of Union under Trade Unions Act, 1926. Ans. Provision relating to registration of union a. the name of the Trade Union b. the whole of the objects for which the Trade Union has been established c. the purposes for which the general fund of the trade union shall be applicable d. the maintenance of the members of the Trade Union and adequate facilities there of for inspection e. the admission of ordinary members and admission of the number of honorary or temporary members as [office bearers] ee. The payment of a subscription by members of the Trade Union which shall not be less than Rs.12/- per annum per member in case of union in organised section, Rs.3/- p.a. per member in the Unorganised Sector and Re.1/- p.a. per member for the unions in the rural sector. (The change in subscription has been made by the amendment of 2001 to the Trade Unions Act.) f. the conditions under which any member shall be entitled to any benefit assured by the rules and under which any fine or forfeiture may be imposed on the members g. the manner in which the rules shall be amended, varied or rescinded; h. the manner in which the members of the executive and other office bearers of the Trade Union shall be appointed and removed i. the safe custody of the funds of the Trade Union, and annual audit, in such manner as may be prescribed, of the accounts thereof, and adequate facilities for the inspection of the accounts books by the [office-bearers] and the members of the Trade Union; and j. the manner in which the Trade Union may be dissolved.
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 21) Name : (Amresh Anjan)
Q9 (a) Critically examine the benefits that are available to the insured persons and their dependents under the Employees State Insurance Act, 1948. Ans. Section 46: Benefits: The insured persons and their dependents shall be entitled to the following benefits, namely; a. Periodical payments to any insured person in case of his sickness certified by a duly appointed medical practitioner- This is the sickness benefit. In order to claim this benefit the insured person should have contributed for atleast 78 days during the contribution period. The benefit is paid at a Standard Benefit rate which is close to 50% of the average wage. Sickness benefit is available for maximum 91 days during 2 consecutive benefit periods. Extended sickness benefit is available to an insured person who is a member of the ESI scheme for a minimum period of 2 years. If such an insured person contracts any specified malignant disease then he is eligible to claim extended sickness benefits for 309 days. This benefit is payable at a rate 25% more than the standard benefit rate. Enhanced Sickness Benefit is available to an insured person when he/she undergoes family planning operation. This benefit available for a period ranging between 6 days to 12 days depending upon the type of operation. This benefit paid at double the standard benefit rate. b. Periodical payment to an insured woman in case of confinement or miscarriage or sickness arising out of pregnancy, confinement, premature birth of child or miscarriage. This is Maternity Benefit. This benefit is available to an insured woman if she has contributed for minimum 70 days prior to confinement. The maternity benefit is paid at a rate which is double the standard benefit rate. c. Periodical payments to an insured person suffering person suffering disablement as a result of an employment injury sustained as an employee under this Act. This benefit is available to an insured person right from day one. In order to avail this benefit the insured person who has met with an employment injury should be disabled a from joining duties for minimum 3 days. This benefit is paid at a rate which is 40% above the standard benefit rate. d. Periodical payments to such dependants of an insured person who dies as result of an employment injury. It is known as Dependants benefit. This benefit is paid to the spouse and two minor children. This amount is paid on a monthly basis depending upon on the last income of the insured person. Out of the payable amount 3/5 is given to the widow and 2/5 is given to the children. Each child gets 1/5 of the amount. The child gets this amount till reaches the age of 18 years, the
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 22) Name : (Amresh Anjan)
widow gets this amount till her death or till her re-marriage whichever is earlier.
e. Medical treatment for attendance on insured persons- it is known as Medical Benefit. f. Payment to the eldest surviving member of the member of the family of an insured person who has died, towards the expenditure on the funeral of the deceased insured person- this is known as funeral benefit. The amount payable as funeral benefit present is Rs.2500/-
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 23) Name : (Amresh Anjan)
Q9(b). Explain the contents of the Employees Deposit Linked Insurance and the Pension Scheme, 1995. Ans. Employees Deposit Linked Insurance Scheme This scheme was introduced by an amendment in the year 1976. It provides for relief to the nominee of the Provident Fund subscriber in case of premature death of the subscriber No contribution is payable by the employee under the scheme, but the employer has o make contributions @ 0.5 % of basic wage, dearness allowance and retaining allowance. Benefits In case of premature death, if the employees balance for the past three years is Rs.1000 then he gets an equivalent amount subject to max. Rs.60,000 /-. If employers formulate a better scheme than the EDLI then can be obtained from the Government. LIC provides for Rs.62,000/- in its scheme irrespective of balance in the subscribers account. Employees Pension Scheme 1995: - This scheme retrospectively or prospectively providing for industrial workers superannuation pension, retiring person, children pension or orphan pension. Applicability and Eligibility: The scheme applies to all factories and other establishments to which Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 is applicable, including the exempted establishments. Pension Fund and Contribution: - The pension fund consists of— i. Employers’ contribution of 8.33% of employees pay which will be diverted from the Provident Fund, whether exempted or unexempted, limited to the pay of Rs. 5000 p.m. only.
ii. Central Governments contribution of 1.16 % of the pay of the members of the Employees’ Pension Scheme limited to the pay of Rs.5000 only. iii. Net assets of the Employees’ Family Pension Fund Scheme 1971, will vest in and stand transferred to the Employees’ Pension Fund. In Industries where employers’ contribution is 10%, the excess of 1.67% limited to pay Rs.5000 will have to be remitted to the Employees’ Provident fund.
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 24) Name : (Amresh Anjan)
Q10(a)Define Industrial dispute. Explain as to when an individual dispute becomes an industrial dispute. Ans. Section 2 (k) of the Industrial Dispute Act, 1947, defines Industrial dispute means any dispute or difference between employers and employers or between employers and workman, or between workman and workman. Which is connected with the employment or non- employment or the terms of employment or with the conditions of labour of any person. Trade Unions as such are not mentioned in the definition of “ Industrial Dispute” because they act on behalf of the workmen and, therefore, when trade union raises a dispute, the workmen are deemed to be parties to the dispute. However, the parties to the industrial dispute do not include disputes (i) between Government & an industrial establishment or (ii) between workmen and non–workmen. Individual dispute means any dispute or difference between employer and workmen regarding his dismissal, discharge, retrenchment or termination. It shall be treated as an individual dispute. An individual dispute becomes an industrial dispute where the workmen of an establishment have no union of their own and some or all of them have joined a union of another establishment belonging to the same industry, if such a union takes up the cause of the workmen working in an establishment which has no union of its own, the dispute would become an industrial if such a union can claim a representative character in a way that its support would made the dispute an industrial dispute.
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 25) Name : (Amresh Anjan)
Q10(b) Explain the procedure laid down under the Industrial Employment (Standing Orders) Act, 1946 for certification and modifications of Standing Orders. Ans. Procedure for certification On receipt of draft standing orders from the employers the certifying officer sends copies of the same to the workmen and their union requiring them to send their comments or objections, if any, within 15 days of receiving notice. After giving the employers and the workmen for their trade union as opportunity of being heard and after considering the fairness and reasonableness of the proposed standing orders, he certifies the same with or without any modification. He has the power to adjudicate any controversial matters, within seven days after certification he sends copies of the certified standing orders to the parties concerned. If the latter feel aggrieved by his order, they can appeal against if within 30 days from the date on which copies of the certified standing orders are sent, to the Appellate Authority appointed under the Act, whose decision is to be final. The Authority has to send copies of its order confirming or modifying the standing orders as certified by the certifying officer to the parties concerned within 7 days of passing the order. (Sec. 4,5,6) Procedure for Modification The application for modification of standing orders must be accompanied by five copies of the modifications proposed to be made and where such modifications are proposed to be made by agreement between employer and the workmen, a certified copy of that agreement shall be filed along with the application. Thus the only way to give effect to the amendment was by resorting to the procedure of amendment contemplated by section 10 of the Industrial Employment (Standing Orders) Act, 1946. Until the existing certified standing orders are suitably amended, the model standing orders could not be deemed to be applicable to the concerned establishment. The aforesaid provisions of the Act, shall apply in respect of the application for modification as they apply to the certification of first Standing Orders. But the said provision is not applicable to an industrial establishment in respect of which the appropriate Government, is the Government of the State of Gujarat or Maharashtra.
INDUSTRIAL RELATIONS & LABOUR LAWS(Page 26) Name : (Amresh Anjan)
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