Professional Documents
Culture Documents
Chapter 1
INTRODUCTION
The structure of labour laws must include policies for resolving disputes,
regardless of the degree of economic development. This is because every working
relationship will inevitably result in complaints and disagreements; the goal of
policy is to provide procedures that deal with these issues quickly and effectively.
In contemporary conflict resolution policy, the utilization of voluntary processes
like arbitration, conciliation, and mediation has taken center stage. This is
because they have been successful in preserving relationships throughout the
dispute resolution process because they do not include the adversarial element
that typical litigation proceedings do.
The most valuable resource for any nation's economic prosperity is its labour
force. They receive pay as compensation for their contributions to the
manufacturing and production of goods and services. Together, an employer and
employee help to generate income and financial gain but the thought now is: Is it
so easy to work in peace and reap the rewards? No, there are always
disagreements between employers and employees in whatever type of
organization, public or private, on things like fair wages, flexible work schedules,
or union demands.
The Industrial Disputes Act was enacted on 11 th April, 1947 to guarantee and
avoid such disputes as well as for the benefit of labourers or workers and their
employers. The Act's primary goals are to uphold social justice and peace, foster
goodwill between companies and employees, resolve labor disputes, and stop
unfair trade practices and illegal strikes.1
The Trade Disputes Act of 1929 governed the resolution of industrial disputes
prior to 1947. The 1929 Act's operation exposed several shortcomings that needed
to be fixed by new legislation. The Industrial Disputes Bill was consequently
brought before the legislature. A Select Committee has been tasked with
reviewing the legislation. The Select Committee's recommendations led to
changes to the original measure. In April 1947, the Industrial Disputes Act of
1947 was passed.
By establishing the framework and protocols for the examination and negotiation-
based resolution of labor disputes, the Industrial Disputes Act seeks to protect
industrial peace and harmony. The Act also establishes:
(a) The clause allowing for employee compensation in the event of layoffs, plant
closures, etc.
1 https://www.simpliance.in/blog/industrial-disputes-act-1947-labour-
law/#:~:text=The%20Industrial%20Disputes%20Act%2C%201947%20is%20the%20primary,during%20lay-
off%20or%20after%20retrenchment%20or%20wrongful%20dismissal. (Last visited 1/12/23)
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Unfair labour practices with the
Tata Motors: Case Analysis
(b) The procedure for getting prior consent from the relevant government for
industrial establishment closures, layoffs, or retrenchments.
1.3 DEFINITION
The Industrial Disputes Act of 1947 is an Indian legislation that addresses the
resolution of industrial disputes. It outlines procedures for negotiation and
settlement, provides mechanisms for strikes and lockouts, and establishes
authorities for adjudication. The primary aim is to maintain industrial peace and
promote harmonious relations between employers and workers.
Section 2(r)(a) - Unfair labour practices are defined as "any of the practices
specified under Schedule V of the act" under.
Section 25(t) - Unfair labour practices are prohibited for any employer, worker,
or trade union, regardless of their registration status under the Trade Unions Act.
Section 25(u) - Any individual who engages in unfair labour practices is subject
to punishment under this section of the Industrial Disputes Act, 1947, which
includes up to six months in jail, a fine of up to Rs. 1000, or both.4
Chapter 2
UNFAIR LABOUR PRACTICES: ITS TYPES AND FEATURES
Before labour laws were established, employers had significant control over
workers. The Trade Union Act of 1926, the Factories Act of 1948, and the
Minimum Wages Act of 1948 were introduced to protect workers from
exploitation and unfair labor practices. These regulations acknowledged workers'
rights and aimed to ensure they were treated fairly.
The Industrial Disputes Act of 1947 says that both employers and trade unions
can do things that are unfair to workers, and it's not allowed.
Your employer is not allowed to do certain actions, and they are prohibited, such
as:
Employers cannot prohibit employees from joining or forming trade unions
or interfering with business operations.
Not only are unfair labor practices carried out by employers, but trade unions may
also be complicit in unfair labor practices
The Fifth Schedule of the Industrial Disputes Act refers to the following acts that
are prohibited for trade unions:
Chapter 3
LEGISLATIONS AND SETTLEMENT OF DISPUTES
Legislations:
In India, most of the labor laws are regulated by the central government, but in
addition to that, the states have enacted legislation governing labor laws. Some
state labor laws include:
The Bombay Labor Relations Act of 1946 started in April 1946 and applied to
the entire Maharashtra region. Its goal is to manage rules and settle disagreements
between employers and workers. This law governs how employers and
employees interact, deals with resolving disputes at work, and accomplishes
various other aims. It's important for handling situations between employers and
employees, updating laws for resolving work-related issues, and serving various
other purposes.
This rule started in 1960. According to this rule, an employer cannot punish any
of its employees for taking part in legal union activities, like a strike or lockout.
The rule helps settle work-related problems and manages how employers and
employees interact in specific situations9
9https://blog.ipleaders.in/unfair-labour-practices/#Legislation_to_prevent_and_punish_unfair_labour_practices
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Unfair labour practices with the
Tata Motors: Case Analysis
Approved in 1971 and enforced in September 1975, this law was put in place by
the Government of India to regulate certain companies and foster better
understanding between employees and employers. The law aims to acknowledge
unions, encourage negotiations between groups, and prevent unfair treatment of
workers.
Settlement:
Collective Bargaining.
10https://blog.ipleaders.in/unfair-labour-practices/#Legislation_to_prevent_and_punish_unfair_labour_practices
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Unfair labour practices with the
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Mediation
Voluntary arbitration
According to Section 10-A of the Act, parties have the option to make an
agreement for arbitration to settle disputes. Arbitration is a method of resolving
conflicts outside of the courtroom, involving a third party called an arbitrator.
The arbitrator's decision is final and must be followed by the parties. In the case
of Workmen Of Cement Industry v. Union Of India (1987), it was noted that
voluntary arbitration is a way to resolve labor disputes, reducing industrial
strikes and contributing to the economic development of the country by
involving workers.11
11https://blog.ipleaders.in/unfair-labour-practices/#Legislation_to_prevent_and_punish_unfair_labour_practices
(Last visited 26/11/23)
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Unfair labour practices with the
Tata Motors: Case Analysis
Chapter 4
LANDMARK CASES
As per the Supreme Court's ruling, if a trade union or a significant portion of the
workforce supports a dispute, it can be classified as an industrial conflict. An
individual dispute can be transformed into an industrial issue if it's taken up by a
union representing the establishment's employees. If such a union doesn't exist, it
can be formed by any workers' union involved in a related trade. Regarding the
second requirement, a dispute among employees that is resolved by a substantial
portion of the same establishment's workforce qualifies as an industrial dispute.
It was noted that when a trade union official received privileges in the form of
duties, the management withheld the benefits that were awarded to the privileged.
It is not possible to argue that this has given rise to an industrial dispute, and the
duty relief's legal standing is limited to that of a concession rather than anything
to do with working conditions. In this instance,
12
Workmen of Indian Express Newspapers Ltd. V. Management Indian Express Newspapers AIR 1970, SC 737
13
Bombay Union of Journalists V. The Hindu 1961, II LLJ 727 Bom
it was decided that if a concession is taken away, the recipient cannot claim that
a condition of service is impacted, and the management is not allowed to bring
up the issue without filing an industrial dispute and having the authority settle
it.14
The appellants contended that because the Corporation appoints and removes the
Managing Director and the Board of Directors, it functions as an agent of the
State. They argued that significant decisions are ultimately left to the discretion
of the President of India. The Memorandum of Association (MOA) and Articles
of Association (AOA) of the company underscore the crucial involvement of the
central government. As the Barrackpore branch operates under the Bangalore
office, the relevant government mentioned in Section 10(1) of the Industrial
Disputes Act, 1947 would be either the Central Government or the State
Government of Karnataka.
However, the Court ruled that the Appellant Company is not a government agent.
The decision was supported by various precedents, including Heavy Engineering
Mazdoor Union v. The State of Bihar & Ors. The court found the reasoning in
this case to be similar to that in Graham v. Public Works Commissioners..15
14
Indian Bank V. Management of Indian Bank 1985 1 LLJ 6 (Mad.)
15
Hindustan Aeronautics Ltd. V. The Workmen & ors. AIR 1975 SC 1737
In the current instance, Shri MC Mehta claimed that Article 24's essential rights
for children had been violated and invoked Article 32.
The Court determined that Sivakasi was the primary perpetrator, using several
underage laborers in the production of matches and fireworks; an industry
deemed hazardous enough to prohibit hiring minors under the age of fourteen.
The Court reiterated its ruling that children under the age of fourteen cannot work
in any dangerous industries and that all children must receive free
education up until the age of fourteen. The Court also took a closer look at Article
39(e), which declares that possibilities for children's healthy growth16
and development should be taken advantage of rather than their immature age.
As a result, the Court ordered that Sivakasi, the employer, pay Rs. 20,000 in
compensation for violating many rights under the Child Labour (Prohibition and
Regulation) Act, 1986.
In this instance, the supreme court determined that the mentioned offenses were
committed, although egregiously. According to the court, there has been
widespread abuse of labor rules, and the State must intervene to prevent such
violations while preserving the workers' fundamental rights.17
16 MC Mehta vs State of Tamil Nadu & Ors Writ Petition (C) No. 465/1986
17
MC Mehta vs State of Tamil Nadu & Ors Writ Petition (C) No. 465/1986
Chapter 5
The recent ruling of the Bombay High Court in a dispute between Tata Motors
and some temporary workers is examined in this article, with special attention
paid to the Court's findings about unfair labour practises involving temporary
workers.
Permanent employees in India are legally entitled to more perks than temporary
employees. Retrenchment compensation, for example, is only available to
employees who have worked continuously for at least 240 days a year in any
industry other than mining. Additionally, gratuities are only required for
continuous service.
18 Shankar Bhimrao Kadam & Ors. vs Tata Motors Ltd, 73 OF 2013 IN WRIT PETITION NO. 5588 OF 2017.
Thakur Ramnarayan College of Law 16
Unfair labour practices with the
Tata Motors: Case Analysis
TML then reappointed a number of the petitioners. Once more, this rescheduled
visit was only for a span of five to seven months. Not one of the petitioners
worked for TML for more than 240 days in a row. The Petitioners were paid much
less than TML's regular workers who performed comparable work because they
were considered "temporary employees."
The petitioners argued that: (a) TML had artificially broken up their
employment with TML on multiple occasions to prevent any of them from
serving 240 days in a row; (b) the breaks were unnatural; and (c) this had turned
into "...a source of profit for the management and, at the same time, it extracted
the same amount of work, in comparison to the work performed by the permanent
workers." (d)the petitioners requested an order for reinstatement with continuity
of service and back wages, as well as (e)a declaration by the Bombay High Court
that TML had participated in unfair labour practices.
According to Tata Motors Ltd- the temporary workers were only hired when
there was a brief surge in work, and their time on the job was reliant on this
brief rise. TML further asserted that it could not be forced to establish jobs for
the Petitioners and that none of the Petitioners were eligible to permanent
employment because none of them had completed 240 days of continuous
service.
The Court noted the following while reaching its decision: (i) TML had not
provided any proof of the temporary increase in work or its discontinuation; and
(ii) there did not appear to be a distinction between the work performed by the
Petitioners and that of TML's permanent employees. After examining each
petitioner's appointment tenure as well as the intervals between appointments and
reappointments, the Court came to the conclusion that there was a distinct and
regular pattern of hiring the petitioners as temporary employees for less than 240
days, disengaging them for a short while, and then reappointing them for a period
of five to seven months. This pattern was thought to be demonstrated by the fact
that TML employed a specialized staff to keep track of the duration of its
temporary personnel.
19https://www.freepressjournal.in/mumbai/tata-motors-resorted-to-unfair-labour-practice-rules-bombay-hc-
orders-to-compensate-52-employees (Last visited 2/12/23)
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The court cited its ruling in Sunil Pralhad Khomane & Ors. v. Bajaj Auto Ltd.,20
in which the employer had employed temporary employees on a rotating basis for
seven months before terminating their employment and temporarily substituting
them with other temporary employees. The Court found that there was
insufficient evidence to support the employer's claim that the term "retrenchment"
did not apply to the workers' terminations because they were only terminated due
to their contracts expiring, despite the management's contention that this did not
qualify as retrenchment. The Court further noted that the pattern of dismissal and
reappointment seemed to be intentional in eluding workers' rightful claims to
permanent employment. The Court determined that TML had participated in
unfair labor practices as the company had followed a comparable pattern.
When providing the Petitioners with relief, the Court took into account their
requests for back pay in lieu of reinstatement or for reinstatement with continuous
service.
20 Sunil Pralhad Khomane & Ors. v. Bajaj Auto Ltd (2021) 1. CLR 857.
Thakur Ramnarayan College of Law 19
Unfair labour practices with the
Tata Motors: Case Analysis
The court in this instance did not mandate the petitioners' readmission.
Nevertheless, the Court ordered TML to reimburse the Petitioners for their 21
earnings in line with the compensation schedule that the Court had created, based
on its observations and the fact that the Petitioners had not taken employment
elsewhere during the time between engagements with TML. The Court took into
account the required service breaks that TML imposed on the Petitioners while
calculating the compensation slab.
The Court chose not to grant interest even though it was able to do so at its
discretion.
♦ Final Thoughts
2/12/23)
Thakur Ramnarayan College of Law 20
Unfair labour practices with the
Tata Motors: Case Analysis
Chapter 6
6.1 Conclusion:
Unfair labor practices, as detailed in the Industrial Disputes Act, extend beyond
mere legal constraints. They encapsulate a delicate balance between the rights of
employers and employees, emphasizing the need for ethical and responsible
conduct in the workplace. The Act's historical evolution, from the Trade Disputes
Act of 1929 to its current form, underscores its adaptability to changing socio-
economic contexts.
In essence, the Industrial Disputes Act is not merely a legal document but a
dynamic instrument shaping the delicate interplay between labor and
management. Its continuous evolution and adaptability are vital to fostering a
work environment that not only abides by legal norms but also promotes fairness,
equity, and mutual understanding.
In the final analysis, this research paper delves into the intricate landscape of
labour laws, focusing on the Tata Motors case study as a lens through which to
examine unfair labour practices. The exploration of historical contexts, legislative
frameworks, and landmark cases provides a comprehensive foundation for
understanding the complexities of industrial relations in India.
6.2 Suggestion:
REFERENCES
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law/#:~:text=The%20Industrial%20Disputes%20Act%2C%201947%20is%20the%20primary,during%
20lay-off%20or%20after%20retrenchment%20or%20wrongful%20dismissal. (Last visited 1/12/23)
2. https://lawessential.com/m%26a-deals-%26-cases-archive/f/unfair-labour-practices---a-study (Last
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visited 1/12/23)
4. The Industrial Disputes Act,1947(14 of 1947), Bare Act (Professional Book Publishers 2023)
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9. https://blog.ipleaders.in/unfair-labour-
practices/#Legislation_to_prevent_and_punish_unfair_labour_practices (Last visited 26/11/23)
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practices/#Legislation_to_prevent_and_punish_unfair_labour_practices (Last visited 26/11/23)
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practices/#Legislation_to_prevent_and_punish_unfair_labour_practices (Last visited 26/11/23)
12. Workmen of Indian Express Newspapers Ltd. V. Management Indian Express Newspapers AIR 1970,
SC 737
13. Bombay Union of Journalists V. The Hindu 1961, II LLJ 727 Bom
14. Indian Bank V. Management of Indian Bank 1985 1 LLJ 6 (Mad.)
15. Hindustan Aeronautics Ltd. V. The Workmen & ors. AIR 1975 SC 1737
16. MC Mehta vs State of Tamil Nadu & Ors Writ Petition (C) No. 465/1986
17. MC Mehta vs State of Tamil Nadu & Ors Writ Petition (C) No. 465/1986
18. Shankar Bhimrao Kadam & Ors. vs Tata Motors Ltd, 73 OF 2013 IN WRIT PETITION NO. 5588 OF
2017.
19. https://www.freepressjournal.in/mumbai/tata-motors-resorted-to-unfair-labour-practice-rules-
bombay-hc-orders-to-compensate-52-employees (Last visited 2/12/23)
20. Sunil Pralhad Khomane & Ors. v. Bajaj Auto Ltd (2021) 1. CLR 857.
21. https://www.lexology.com/library/detail.aspx?g=d1cf43c0-bcd8-4be0-81b1-e553225a29a2
(Last visited 2/12/23)
22. https://www.lexology.com/library/detail.aspx?g=d1cf43c0-bcd8-4be0-81b1-e553225a29a2 (Last
visited 2/12/23)
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