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Q1. Explain the provisions regarding unfair labor practices by the employers, or workmen, which have
been prohibited under the Industrial Dispute Act, 1947?
Ans. Introduction
The Industrial Dispute Act of 1947 outlines what constitutes unfair labor practices on the part of both
employers and employees. The fifth schedule of the act contains a list of unfair labor practices on the
part of employers and their trade unions and employees and their trade unions respectively.
What is the Meaning of Unfair Labour Practices?
Unfair labor practice commonly characterized as the taking undue advantages of workers in terms of
giving extra hours to work and not paying for that, not paying the minimum wages, asking to work on
holiday, no leave, etc.
according to Section 2(ra), "any of the practices described under Schedule V of the Industrial Dispute
Act,".
It is mostly split into two categories −
a) Unfair labor practices by employers and their trade unions are covered in Part I of Schedule V.
b) The second, focuses on unfair labor practices by employees or employee unions.
The right to join a union and take part in its legal operations is guaranteed to every employer and
employee. A person is deemed to have engaged in unfair labor practices if they participate in any of the
forbidden behaviors.
Employer And Employer TU-Related Trade Union Unfair Labour Practises
The following are the unfair labor practices that are forbidden with regard to the employer and the
employer’s trade union −
1. Interfere with employees’ ability to exercise their right as an employer to organize, join, or
support a trade union in concerted activities for the benefit of collective bargaining or other
forms of mutual protection or assistance, or to restrain employees from doing so, in the
following situations:
a) Threatening to fire or discharge workers if they join a union.
b) If a trade union is formed, threatening a lockout.
c) Providing workers with a pay raise at a critical time will thwart trade union efforts.
d) Interfere with, ruled over, or provide financial or other forms of support to any employer
or trade union.
2. An employer who shows favoritism or prejudice toward one of the many trade unions trying to
organize workers for its employers, even when that union is not a recognized trade union.
3. Establish employer support of labor unions for employees.
4. Encourage or discourage worker discrimination by encouraging or discouraging participation in
any trade union.
5. Discharging or disciplining a worker if he urges another worker to join a trade union.
6. Dismissing or firing a worker for participating in a strike that is not illegal.
7. Refusal to promote workers to higher positions due to their union involvement.
8. Giving certain employees promotions that are underserved in an effort to incite conflict among
other employees or demonstrate the power of their trade union.
9. Releasing active union members or office holders because of the activity of their union.
10. Using a victimization strategy.
Unfair Labour Practises on The Part of Employees or Labour Unions
The following are the unfair labor practices that workers and their unions are barred from engaging in −
1. Advise, participate in, incite, or support any strike that the Act deems unlawful.
2. Restrict workers from exercising their right to form a union, stop them from doing so, or engage
in self-organization in the following situations:
a) Picketing by the trade unions so that non-strikers are physically prevented from entering the
workplaces.
b) Engage in acts of violence against non-striking workers or make intimidation threats in
connection with a strike.
c) A recognized union refuses to negotiate with the employer in good faith.
3. Engage in coercive tactics to prevent a bargaining representative’s certification.
4. Encourage or incite coercive behaviors such as deliberate "go-slow" behavior, squatting on the
job site after hours, or "gherao" behavior on the part of any management or other staff member.
5. Fake demonstrations are staged at employers’ homes.
6. Engage in any intentional destruction of employer property connected to the sector.
7. Engage in any act of force or violence against a worker or make threats to him in an effort to
keep him away from his job.
Discrimination Against Unfair Labour Practices
Employer or trade union of employer, or any worker or trade union of workers, whether registered under
the Trade Unions Act, 1926 or not, shall not engage in any unfair labor practice, according to Section
25T of the Industrial Dispute Act, 1947.
Punishment for Engaging in Unfair Labour Practices
Any person who engages in an unfair labor practice is subject to punishment under Section 25U of the
Industrial Dispute Act of 1947, which carries a possible six-month prison sentence, a fine of up to $1,000,
or both.
CASE LAW
Sports Authority of India v. Labour Commissioner, Delhi Administration (12 March 2014)
Watch and ward staff, security officers, and chowkidars are all regularly employed. The Sports Authority
of India employs regular workers, such as watchmen, guards, and chowkidars, and the job of watch and
security guards necessitates the employment of a sufficient number of full-time workers. The
management of the Sports Authority of India, the principal employer, has been continuously engaging in
unfair labor practices as defined in the Fifth Schedule of the Industrial Disputes Act 1947 and also in
violation of the provisions of contract labor
Q2. Define retrenchment. Explain the conditions precedent to retrenchment of workmen, both under
chapter VA and VB of the Industrial Dispute Act, 1947. Support your answer with the help of case laws?
(a) the workman has been given one months notice in writing indicating the reasons for retrenchment
and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the
period of the notice:
(b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to
fifteen days average pay [for every completed year of continuous service] or any part thereof in excess of
six months;and
(c) notice in the prescribed manner is served on the appropriate Government [or such authority as may
be specified by the appropriate Government by notification in the Official Gazette].
Calculation of average pay is done by dividing the last drawn monthly salary by 25 and then multiplying
the dividend by 15 for every completed year of continuous work.
1) No workman employed in any industrial establishment to which this Chapter applies, who has been in
continuous service for not less than one year under an employer shall be retrenched by that employer
until,-
(a) the workman has been given three months notice in writing indicating the reasons for retrenchment
and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the
period of the notice; and
(b) the prior permission of the appropriate Government or such authority as may be specified by that
Government by notification in the Official Gazette (hereafter in this section referred to as the specified
authority has been obtained on an application made on this behalf.
(2) An application for permission under sub-section (1) shall be made by the employer in the prescribed
manner stating clearly the reasons for the intended retrenchment and a copy of such application shall
also be served simultaneously on the workmen concerned in the prescribed manner.
(3) Where an application for permission under sub-section (1) has been made, the appropriate
Government or the specified authority, after making such inquiry as it thinks fit and after giving a
reasonable opportunity of being heard to the employer, the workmen concerned and the persons
interested in such retrenchment, may, having regard to the genuineness and adequacy of the reasons
stated by the employer, the interests of the workmen and all other relevant factors, by order and for
reasons to be recorded in writing, grant or refuse to grant such permission and a copy of such order shall
be communicated to the employer and the workmen.
(4) Where an application for permission has been made under sub-section (1) and the appropriate
Government or the specified authority does not communicate the order granting or refusing to grant
permission to the employer within a period of sixty days from the date on which such application is
made, the permission applied for shall be deemed to have been granted on the expiration of the said
period of sixty days.
The Supreme Court in Byram Pestonji Gariwala v. Union Bank of India and others had restricted the
definition of ‘Retrenchment’ under S.2(oo)(bb) to occur only when there is a ‘discharge of excess labor’
by the employer. Later the Supreme Court in State Bank of India v. N. Sundara Money, Punjab Land
Development and Reclamation Corporation Ltd., Chandigarh v. Presiding Officer, Labour Court,
Chandigarh and subsequent decisions rejected the narrow interpretation adopted by the Court in the
earlier decision and held that any retrenchment, as defined in Section 2(oo), means termination by the
employer of the service of a workman for any reason whatsoever otherwise than as a punishment
inflicted by way of disciplinary action and those expressly excluded by Clauses (a), (b) and (c) of the
definition. In view of these decisions, it cannot be said that retrenchment means termination by the
employer of the service of a workman as surplus labor.
Q3. Who is the authority under the Trade Unions Act, 1926 for the purpose of registration and
cancellation of a registered Trade Union? Describe the procedure as well.
Mode of Registration
According to Section 4 of the Act, any seven or more members of a Trade Union in accordance with the
provisions of the Act may make an application for registration of the trade union. There are two
conditions subsequent to the same, firstly no trade union of workmen shall be registered unless at least
10% or 100 of the workmen, whichever is less engaged in the employment of the establishment are its
members on the date of making of its application and secondly no trade union shall be registered unless
on the date of making of application, minimum seven of its members who are workmen are employed in
the establishment or industry.
Also, such application shall not be deemed to be invalid merely on the ground that at any time after the
date of the application, but before the registration of the trade union some of the members but not
exceeding half of the total number of persons who made the application has ceased to be members.
Registration
According to Section 8 of the Act, if the registrar thinks that the trade union has complied with all the
provisions of the Act, it shall register the Trade Union by entering in a register all the particulars in
accordance with the provisions of the Act.
Certificate of registration
According to Section 9 of the Act, the registrar shall issue a certificate of registration to the trade union
after registration under section 8 which shall be conclusive proof that a trade union has been duly
registered.
Cancellation of registration
According to Section 10 of the Act, a certificate of registration of a trade union may be canceled or
withdrawn or an application of the trade union to be verified in such manner as may be prescribed;
where the registrar is satisfied that the certificate has been obtained by fraud or mistake or the trade
union has ceased to exist or has willfully and other notice from the registrar contravened any provisions
of the Act and if the registrar is satisfied that a registered trade union ceases to have requisite number of
members.
Before issuing such an order, the registrar must be satisfied that the registration should be canceled or
withdrawn, as requested by the trade union. If the registration is being withdrawn or canceled for any
other reason, the registrar is required to provide two months’ notice specifying the particular grounds for
the proposed action.
Appeal
According to Section 11 of the Act, any person aggrieved by any refusal to register a trade union or
withdrawal of registration, etc by registrar may file an appeal where the trade union head office is
situated within the limits of a presidency town to the High Court, or where the head office is situated in
an area, falling within the jurisdiction of a Labour Court or an Industrial Tribunal, to that court or tribunal
as the case may be; where the head office is situated in any area, to such court, not inferior to the court
of an additional or assistant judge of a principal Civil Court of original jurisdiction as the appropriate
government may appoint.
On an application to the appropriate forum, the court may either dismiss the appeal or pass an order
directing the registrar to take appropriate measures.
The court shall have the same powers of a civil court under Civil Procedure Code, 1908 and may follow
the same procedures.
The highest appeal can be made to the High Court.
Registered office
According to Section 12 of the Act, all communications shall be made on the registered office of the
trade union.
Q4. Examine the legal status of a registered trade union as provided under the Trade Unions Act, 1926.
(a) A registered trade union is a body corporate having a perpetual succession and a common seal.
(b) It has power to acquire and hold both movable and immovable property and to enter into contracts.
(c) It can sue and be sued by its own name.
(d) Its office bearer or member cannot be prosecuted for criminal conspiracy for following its legitimate
objects.
(e) No legal proceedings can be filed in any Civil Court against it in respect of any act in furtherance of a
trade dispute even if such act (i) induces some other person to break a contract of employment, or (ii) is
in interference with the trade business or employment of some other person, or (iii) is in interference with
the right of some other person to dispose of his capital or of his labor as he wills. (f) Any agreement
between its members is not void or voidable even if its objects are in restraint of trade.
Q6. Describe the right of the workmen laid-off for compensation under the Industrial Disputes Act, 1947
with the help of the case laws.
1 Marks
Under which sections, the terms ‘Industrial Disputes’, ‘Public Utility Services’, ‘Strike’ and ‘Appropriate
Government’ have been defined under the IDA, 1947?
The Trade Unions Act, 1926, essentially aims to provide a legal framework that supports the formation
and functioning of trade unions, fostering a balanced and constructive relationship between employers
and employees for the overall improvement of industrial relations in the country.
Can a minor become a member of the registered trade union under the Trade Unions Act, 1926?
Section 21. Rights of minors to membership of trade unions
Any person who has attained the age of fifteen years may be a member of a registered trade union
subject to any rules of the trade union to the contrary, and may, subject as aforesaid, enjoy all the rights
of a member and execute all instruments and give all acquaintances necessary to be executed or given
under the rules: