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Industrial Dispute Act 1947

BY • 1. Mukesh Gadhvi • 2. Jyotsana Chauhan • Roll no 09 • Roll no 05

SOME IMPORTANT LABOUR LAWS APPLICABLE TO WORKMEN
• In India several labour laws regulate various conditions of work, wages, service, labour relations and other such related matters and for the present presentation we will discuss the complex labour laws in the Organized sector in India. Some of the relevant laws which are discussed here are as follows: The Industrial Disputes Act, 1947; The Factories Act, 1948; Shops and Establishment Acts of various states; The Contract Labour (Regulation and Abolition) Act, 1970; The Trade Unions Act, 1926; The Workmen’s Compensation Act, 1923; The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952; The Employees’ State Insurance Act, 1948;

• • • • • • • •

• IDA - is an Act to make provision and settlement of Industrial Disputes with the objective to maintain industrial peace and economic justice. • IDA categories employees into workman and non-workman. • Section 2 (s) of IDA defines workman. • “Workman” means any person employed in any industry to carry out manual, skilled and unskilled, technical, operational, clerical or supervisory work for hire or reward. • The definition specifically excludes – persons employed in managerial or administrative capacity and also those persons (otherwise falling within the definition of workman) who are employed in supervisory capacity at wages more than Rs.1,600/- per month) and sales promotion employees.

THE INDUSTRIAL DISPUTES ACT, 1947 (IDA)

Labour Courts. Layoffs.INDUSTRIAL DISPUTE ACT 1947 • CHAPTER I : EXTENT AND DEFINITIONS. Unfair Labour Practice • CHAPTER II : Section 3 to 9 . Industrial disputes. Retrenchment. National Tribunal • CHAPTER III : Reference of Dispute. Public Utility Company. Board of Conciliation.Authorities under the Act: Works ommittee. Lockouts. Notice under section 22 & Voluntary Reference of Disputes • CHAPTER IV : Section 11 to 21 Powers & Duties • CHAPTER V : Section 22 to 25 : Strikes & Lockouts • CHAPTER VA : Section 25 A to J Layouts & Retrenchment • CHAPTER VB : Section 26 to 31 Misc Provisions .It contains important definitions of Employer. Conciliation Officer. Industrial Courts. Industrial Tribunal.

Section 2 (oo) (bb) – provides for termination of the service of a workman as a result of the non-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. power etc. Section 2 (oo) defines “retrenchment” as termination of a workman for any reason whatsoever otherwise than voluntary retirement. but who has not been retrenched. • • . non renewal of contract or termination due to continued ill-health. reaching age of superannuation.Some Important Definations • Section 2 (kkk) defines “lay-off” the failure of the employer to provide employment due to shortage of raw material.

per month) and sales promotion employees. • The definition specifically excludes – persons employed in managerial or administrative capacity and also those persons (otherwise falling within the definition of workman) who are employed in supervisory capacity at wages more than Rs.600/. operational. clerical or supervisory work for hire or reward.1. .Some Important Definations • Section 2 (s) of IDA defines workman. skilled and unskilled. technical. • “Workman” means any person employed in any industry to carry out manual.

Adjudicating Authorities under ID Act .

Authorities constituted for the settlement Eight authorities are constituted under the Act. (b) Conciliation Officer. namely : (a) Works Committee. (f) Tribunals. (d) Court of Inquiry. (e) Labour Courts. (c) Boards of Conciliation. for the settlement of industrial dispute. and (h) Voluntary reference to Arbitrator . (g) National Tribunals.

a Works Committee shall be constituted. • This Committee shall have equal representatives of employers and employees. • The representatives of the workmen shall be chosen from among the workmen engaged in the establishment and in consultation with their registered trade union.(a) Works Committee • The industrial establishment employed 100 or more workmen. .

3] .The duty of the Works Committee The duty of the Works Committee shall be (i) (ii) to promote measures for securing and preserving amity (friendly relation). [S. to promote good relations between the employer and workmen. and (iii) to that end. to comment upon matters of their common interest or concern and endeavour to compose any material difference of opinion in respect of such matters.

• A conciliation officer may be appointed for a specified area or for specified industries in a specified area or for one or more specified industries and either permanently or for a limited period. charged with the duty of mediating in and promoting the settlement of industrial disputes. [S.(b) Conciliation Officer • The appropriate Government may. as it thinks fit to be conciliation officers.4] . appoint such number of persons.

send a report with reasons and steps taken by him for ascertaining the facts and circumstances relating to the dispute and for bringing about a settlement thereof.Duties of Conciliation Officers • The Conciliation Officer shall hold the conciliation proceeding in prescribed manner. a settlement could not be arrived at. with memorandum signed by the parties. • When he arrived on settlement send a report to the Government. together with a full statement of such facts and circumstances. • Such report shall be submitted within 14 days of the commencement of the conciliation proceedings or within such shorter period as may be fixed by the Government. and the reasons on account of which. [S. • But.12] . Investigate the matter for the purpose of bringing about a fair and amicable (peaceful) settlement of the dispute. where no settlement arrived. in his opinion.

• If.5 of the Act. .(c) Boards of Conciliation • According to S. as the Government thinks fit. • The Chairman shall be an independent person and the other members shall be persons appointed in equal numbers to represent the parties to the dispute and any person appointed to represent a party shall be appointed on the recommendation of that party. • A Board shall consist of a Chairman and two or four other members. the appropriate Government may constitute Board of Conciliation for promoting the settlement of an industrial dispute. the Government shall appoint such persons as it thinks fit to represent that party. any party fails to make a recommendation as aforesaid within the prescribed time.

13. a settlement could not be arrived at. • The board’s report should be in writing and is to be signed by all the members of board. • When they arrived on settlement send a report to the Government. 16 and 17] . • But. together with a full statement of such facts and circumstances. with memorandum signed by the parties. Every report is to be published in such a manner as appropriate Government thinks fit within 30 days of its receipt. and the reasons on account of which. [Ss. where no settlement arrived. the Board without delay shall investigate the matter for the purpose of bringing about a fair and amicable (peaceful) settlement of the dispute. in his opinion.Duties of Board • On the reference of the case. send a report with reasons and steps taken by him for ascertaining the facts and circumstances relating to the dispute and for bringing about a settlement thereof. • The Board shall submit its report within two months of the date on which the dispute was referred to it. or within such shorter period as may be fixed by the Government.

• A Court shall inquire into the matters referred to. • For inquiring into any matter appearing to be connected with or relevant to an industrial dispute.• The appropriate Government may. [S.14] (d) Court of Inquiry . one of them shall be appointed as a Chairman.6 and S. and report thereon to the Government ordinarily within a period of six months from the commencement of its inquiry. • A court may consist of one independent person or of such number of independent persons as the Government may think fit and where a court consists of two or more members. constitute a Court of Inquiry.

(e) Labour Courts • But. [S. or continue in. no person shall be appointed to. or (ii) he has attained the age of 65 years. • A Labour Court shall consist of one person only to be appointed by the Government. or has been. a judge of a High Court. (i) he is. • The presiding officer of a Labour Court shall be qualified if. or (iii) he has held at least for seven years any judicial office in India. the office of the presiding officer of a Labour Court. by notification in the Official Gazette.7] . constitute one or more Labour Courts for the adjudication of industrial disputes relating to any matter specified in the Second Schedule and for performing such other functions as may be assigned to them under this Act. if – (i) he is not an independent person.• The appropriate Government may. or (ii) he has at least for three years been a District Judge or an Additional District Judge. or (iv) he has been the presiding officer at least five years of a Labour Court constituted under any Provincial Act or State Act.

(v) Illegality or otherwise of a strike or lock-out. (iii) (iv) Withdrawal of any customary concession or privilege. are – (i) Jurisdiction of Labour Court : The propriety or legality of an order passed by an employer under the standing orders. and (vi) All matters other than those specified in the Third Schedule. . (ii) The application and interpretation of standing order. or grant of relief to.Matters. within Second Schedule of the Act. workmen wrongfully dismissed. Discharge or dismissal of workmen including reinstatement of.

. or continue in. a Judge of a High Court. appoint two persons as assessors to advise the Tribunal in the proceeding before it. (i) he is. if – (i) He is not an independent person. no person shall be appointed to. constitute one or more Industrial Tribunals for the adjudication of industrial disputes relating to any matter.(f) Tribunals (Industrial) • The appropriate Government may. or (ii) He has attained the age of 65 years. whether specified in the Second Schedule or the Third Schedule and for performing such other functions as may be assigned to them under this Act. or has been. • The Government may. the office of the presiding officer of a Tribunal. or (ii) he has at least for three years been a District Judge or an Additional District Judge. The presiding officer of a Tribunal shall be qualified if. • A Tribunal shall consist of one person only to be appointed by the appropriate Government. • But. if it so thinks fit.

provident fund and gratuity. Leave with wages and holidays. profit sharing. and Any other matter that may be prescribed. Compensatory and other allowances. Bonus. are – (i) (ii) (iii) (iv) (v) (vi) Wages. Shift working otherwise than in accordance with standing orders. described in the Third Schedule of the Act. (ix) (x) (xi) Rationalisation. Hours of work and rest intervals. including the period and mode of payment. . (vii) Classification by grades. (viii) Rules of discipline.Jurisdiction of the Industrial Tribunals : Matters. Retrenchment of workmen and closure of establishment.

A National Tribunal shall consist of one person only to be appointed by the Central Government. But. The Central Government may also appoint two persons as assessors to advise the National Tribunal in the proceeding before it. or (ii) he has attained the age of 65 years. in the opinion of the Central Government.7B and 7C] • • • • • . [S. a Judge of a High Court. by notification in the official Gazette. no person shall be appointed to. the office of the presiding officer of a National Tribunal. if(i) he is not an independent person. or affected by such disputes. or continue in. constitute one or more National Industrial Tribunals for the adjudication of industrial disputes which.(g) National Tribunals • The Central Government may. The presiding officer of a National Tribunal shall be sitting. or has been. involve 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.

[S. or Tribunal or National Tribunal. or Tribunal or National Tribunal.15] . he may for reasons to be recorded in writing. for adjudication. whether jointly or separately. or Tribunal or National Tribunal considers it necessary or expedient to extend such period. within the period specified in the order referring such industrial dispute. submit its award to the appropriate Government. or Tribunals or National Tribunals • Where an industrial dispute has been referred to a Labour Court. and the presiding officer of such Labour Court. for extension of such period or for any other reason. • Where the parties to an industrial dispute apply in the prescribed manner. to the a Labour Court. • It shall hold its proceedings expeditiously and shall.Duties of a Labour Court. extend such period by such further period as he may think fit.

in respect of the following matters -  (i) Enforcing the attendance of any person and examining him on oath.Procedure and power of Authority • Procedure : An arbitrator. a Board.  (iii) Issuing commissions for the examination of witnesses. Tribunal or National Tribunal shall follow such procedure as the arbitrator or other authority concerned may think fit.  (ii) Compelling the production of documents and material object. after giving reasonable notice.C. enter the premises occupied by any establishment to which the dispute relates. Court.  • Every Authority shall have the same powers as are vested in a Civil Court under the C.  (iv) In respect of such other matters as may be prescribed. Labour Court.  • And every inquiry or investigation by authority shall be deemed to be a judicial proceeding..P. when trying a suit. .  • Powers : Authority may for the purpose of inquiry into any existing or apprehended industrial dispute.

11A] .Powers of Labour Court / Tribunals to give appropriate relief in case of discharge or dismissal of workmen • Where an industrial dispute relating to the discharge or dismissal of a workman has been referred to a Labour Court. it may. [S. as it thinks fit. the Labour Court or Tribunals is satisfied that the order of discharge or dismissal was not justified. in the course of the adjudication proceedings. by its award. if any. Tribunal or National Tribunal for adjudication and. set aside the order of discharge or dismissal and direct re-instatement of the workman on such terms and conditions. In any proceeding under the Labour Court or Tribunals shall rely only on the materials on record and shall not take any fresh evidence in relation to the matter. or give such other relief to the workman including the award of any lesser punishment in lieu of discharge or dismissal as the circumstances of the case may require.

10-A of the Act. According to S.(h) Voluntary reference to Arbitrator • The Act provides voluntary reference of disputes to Arbitration. or National Tribunal) as an arbitrator or arbitrators as may be specified in the arbitration agreement. they may. • Where an arbitration agreement provides for a reference of the dispute to an even number of arbitrators the agreement shall provide for the appointment of another person as umpire who shall enter upon the reference. where any industrial dispute exists or is apprehended and the employer and the workman agree to refer the dispute to arbitration. at any time before the dispute has been referred to a Labour Court or Tribunal or National Tribunal by a written agreement. . refer the dispute to arbitration and the reference shall be to such person or persons (including the presiding officer of a Labour Court or Tribunal. and the award of the umpire shall prevail and shall be deemed to be the arbitration award for the purposes of this Act. if the arbitrators are equally divided in their opinion.

the employers and workmen who are not parties to the arbitration agreement but are concerned in the dispute. 1996 shall not apply to arbitrations under this section.• • • • An arbitration agreement shall be in such form and shall be signed by the parties thereto in such manner as may be prescribed. publish the same in the Official Gazette. A copy of the arbitration agreement shall be forwarded to the appropriate Government and the conciliation officer and the appropriate Government shall. Where an industrial dispute has been referred to arbitration the appropriate Government may. Where an industrial dispute has been referred to arbitration and a notification has been issued. . and when any such notification is issued. The provisions of Arbitration and Conciliation Act. shall be given an opportunity of presenting their case before the arbitrator or arbitrators. issue a notification. by order. within one month from the date of the receipt of such copy. within the prescribed time. prohibit the continuance of any strike or lock-out in connection with such dispute. as the case may be. The arbitrator(s) shall investigate the dispute and submit to the appropriate Government the arbitration award signed by the arbitrator or all the arbitrators. which may be in existence on the date of the reference. the appropriate Government may.

But. it can issue writs otherwise also.Powers of SC and HC to issue writs • The Hon’ble SC under Art.32 and HC under Art. Following writ may be issued – (1) (2) (3) (4) (5) Habeas corpus writ Mandamus writ Certiorari writ Writ of Prohibition Writ of Quo-warranto . 226 may issues any of the writs on the violation of any of fundamental rights. in this regard HCs are having more powers than SC.

But. inferior court. It will lie when there is a failure to perform a mandatory duty. . even in the cases of alleged breaches of mandatory.Mandamus writ • The writ of mandamus is thus an order by a superior court commanding a person or public authorities (to the Government. tribunal corporation {any Labour Tribunals} or any other persons) to perform the public duty or to refrain from doing an illegal act. The party must show that he has made a distinct demand to enforce that the duty and the demand was met with refusal.

Certiorari writ • Certiorari means. • . it is so named as in its original Latin from its required. or On the violation of procedure or disregard of principles of natural justice. tribunal or body exercising such power for examining the legality of the proceeding and object of this writ is to prevent them from acting without jurisdiction. AIR 1991 SC] This (a) (b) (c) writ can be issued on the following grounds : Want of excess of jurisdiction. This writ is issued by a Superior Court to inferior court or tribunal {any Labour Tribunals} or body exercising judicial or quasi-judicial functions to remove the proceedings from such court. For correcting error of law apparent on the force of record. “to certify”. UT Chandigarh. [Ranjit Singh v.

Writ of Prohibition • A writ of prohibition is issued primarily to prevent an inferior court or tribunal from exceeding its jurisdiction. . It is issued by a superior court to inferior courts for the purpose of preventing inferior courts from usurping a jurisdiction with which it was not legally vested or in other words to compel inferior courts to keep within the limits of their jurisdiction. or acting contrary to the rule of natural justice.

000/- Sub Divisional Magistrate Imprisonment up to 3 years and/or fine up to Rs. but death sentence subject to the conformation of HC Courts of Sessions Assistance Sessions Judge Imprisonment up to 10 years and/or fine Courts of Magistrate Chief or Additional Metropolitan Magistrate (in metropolitan cities) Imprisonment up to 7 years and/or fine Chief or Additional Judicial Magistrate (in other areas) Imprisonment up to 7 years and/or fine Metropolitan or Special Metropolitan Magistrate Imprisonment up to 3 years and/or fine up to Rs.000/- . 10.000/- Judicial Magistrate I Class Imprisonment up to 3 years and/or fine up to Rs. 5. 10.000/- Judicial Magistrate II Class Imprisonment up to one years and/or fine up to Rs. 10.Hierarchy of Indian Criminal Supreme Court Any punishment authorised by Law Court Any punishment authorised by Law High Court Sessions and Additional Session Judge Any punishment authorised by Law.

Strike. Lock-out and Illegal Notice .

Strike and Lockout Strike is a weapon used by the workmen as a last resort in the process of collective bargaining similarly lockout is for the employers. .

because their refusal is not concerted or under a common understanding.” means – Definition of Strike (i) a cessation of work by a body of persons employed in any industry acting in combination.2 (q)] • In both strike and lock-out. under a common understanding of any number of persons who are or have been so employed to continue to work or to accept employment. • When there is a cessation of work. or a refusal. It was held by Hon’ble SC that “Pen-down” stoppage of work is a strike within the meaning of S. the mode of duration of stoppage is immaterial and of no consequence. although the work comes to stop but the relation is deemed to be continued.2 (q) of the ID Act. or (ii) a concerted refusal. • When the workmen are not bound to do particular work and he refused to do that work does not amount to strike. .• "Strike. [S.

(2) Such action involve either cessation of work. or a concerted refusal. (3) Such cessation or refusal shall be under a common understanding of persons who are or have been employed to continue to work or to accept employment.Essential elements of the strike (1) Strike is an action by the body of persons employed in any industry. or refusal under a common understanding of any number of employees. .

and not of the business itself.Definition of “Lock-out” • "Lock-out" means – (a) the temporary closing of a place of employment. or (b) the suspension of work. (1960) • Lock-out involves merely the closing of place of business. as the later involves the closing down of the business itself. without effecting a termination of service. [SC. [S. 1962] . or (c) the refusal by an employer to continue to employ any number of persons employed by him.2 (l)] • The SC interpreted the word “lock-out” to mean the employer’s refusal to permit any number of persons employed by him to attend to their duties. This distinction is also the test of the difference between the lock-out and closure.

. or (d) During the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings. no person employed in a public utility service (PUS) shall go on strike in breach of contract/No employer carrying on any public utility service shall lock-out any of his workplace (a) Without giving to the employer/employee notice of strike/lock-out. 22 of the Act. or (c) Before the expiry of the date of strike/lock-out specified in notice. within 6 weeks before striking/locking out.Prohibition of strikes and Lockouts • According to S. or (b) Within 14 days of giving such notice.

Similarly. . the notice of lock-out shall be given in such manner as may be prescribed. • Notice shall be given in the prescribed form : The notice of strike shall be given by such number of persons to such person or persons and in such manner as may be prescribed. to such authority as may be specified by the appropriate Government. he shall within five days thereof report to the appropriate Government.Notice of lock-out or strike • The notice of lock-out/strike. • Notice to be reported to the appropriate Government : If on any day an employer receives from any person employed by him any such notices or gives to any person employed by him any such notices. the number of such notices received or given on that day. lock-out in the PUS. but the employer shall send intimation of such lock-out or strike on the day on which it is declared. shall not be necessary where there is already in existence a strike or. as the case may be.

General prohibition of strikes and Lockouts • According to S. or (d) During any period in which a settlement or award is in operation. . in respect of any of the matters covered by the settlement or award. in case of voluntarily reference to arbitration. after the conclusion of such proceedings. Tribunal or National Tribunal and two months. where a notification has been issued.23 of the Act. (c) During the pendency of arbitration proceedings before an arbitrator and two months after the conclusion of such proceedings. (b) During the pendency of proceedings before a Labour Court. no workman who is employed in any industrial establishment shall go on strike in breach of contract and no employer of any such workman shall declare a lock-out(a) During the pendency of conciliation proceedings before a Conciliation Board and seven days after the conclusion of such proceedings.

Illegal strikes and Lockouts According to S. a strike or lock-out shall be illegal if (a) It is commenced or declared in contravention of any prohibition of strike and lock-out.24. or (c) It is continued in contravention of an order made by appropriate Govt. or (b) It is continued in contravention of an order made by appropriate Govt. to prohibit the continuance of any strike or lock-out in connection with dispute referred to arbitration and a notification has been issued. to prohibit the continuance of any strike or lock-out in connection with dispute referred to a Board. . Tribunal or National Tribunal which may be in existence on the date of the reference. Labour Court.

an Arbitrator. a strike or lock-out shall not be illegal if - (a) Where a strike or lock-out in pursuance of an industrial dispute has already commenced and is in existence at the time of the reference of the dispute to a Conciliation Board. Tribunal or National Tribunal. Labor Court. provided that such strike or lock out was not at its commencement in contravention of the provisions of this Act or the continuance thereof was not prohibited by an order of appropriate Govt. Prohibition of financial aid to illegal strikes and Lockouts : No person shall knowingly expend or apply any money in direct furtherance or support of any illegal strike or lockout.But. or (b) A lockout declared in consequence of an illegal strike or a strike declared in consequence of an illegal lockout shall not be deemed to be illegal. the continuance of such strike or lock-out shall not be deemed to be illegal. .

. • Penalty for instigation. a strike or lock-out which is illegal under this Act. continues or otherwise acts in furtherance of. who commences. – shall be punishable with imprisonment up to one month. etc. or with fine up to Rs 1000. – shall be punishable with imprisonment up to six months. • Penalty for giving financial aid to illegal strikes and Lockouts : Any person who knowingly expends or applies any money in direct furtherance or support of any illegal strike or lock-out – shall be punishable with imprisonment up to 6 months. which is illegal under this Act. or otherwise acts in furtherance of. : Any person who instigates or incites others to take part in. – shall be punishable with imprisonment up to one month. • Penalty for illegal Lockouts : Any employer. or with both. 50. 1000.Offences and Penalties • Penalty for illegal strikes : Any workman who commences. or with fine up to Rs. a strike. which is illegal under this Act. or with both. or with fine up to Rs. continues. or with both. or otherwise acts in furtherance of a lockout. or with both. or with fine up to Rs 1000.

[SC. (1996)] Principle of ‘No work no pay’ has been accepted by Supreme Court. T S Kelawala.Wages during strike period • Wages during strike period are payable only if the strike is both legal and justified. (1990) & followed in (1994)] • • . on the other hand held that when lockout by employer is legal and justified. (1994) & followed in (1997)] Similarly. workmen are not entitled to payment of wages for the period during which the lock-out continued. [Bank of India v. [SC.

they however. v. • [Escorts Heart Institute and Research Center Ltd. They also cannot be allowed to damage the property and gherao the managerial persons and willing workers. and Ors. Delhi Mazdoor Sangathan Regt.Strike. 2007 I LLJ 366] . Demonstration & Shouting Slogans • The Hon’ble Delhi High Court held that while it may be right of the union and employees to hold peaceful demonstration. cannot under grab of such demonstration become violent or adopt threatening tactics to stop the employees. Gherao. beyond the radius of 60 meters of the premises. The High Court permitted to hold such activities in peaceful manner.

who proposes to effect any change in the conditions of service applicable to any workman in respect of any matter specified in the Fourth Schedule.Notice of change • According to S. (a) Without giving to the workmen likely to be affected by such change a notice in the prescribed manner of the nature of the change proposed to be effected. . no employer. or (b) Within 21 days of giving such notice. * Any notice given in the contravention of above provision is called illegal notice. shall effect such change.9-A of the Act.

to whom – – – – – – – the Fundamental and Supplementary Rules. or • Where the workmen likely to be affected by the change are persons.No notice shall be required for affecting any such change • Where the change is effected in pursuance of any settlement or award. Civil Services (Classification. Revised Leave Rules. Civil Services (Temporary Service) Rules. Control and Appeal) Rules or – the Indian Railway Establishment Code or – any other rules or regulations that may be notified in this behalf by the appropriate Government in the Official Gazette. Control and Appeal) Rules. . Civil Services Regulations. Civilians in Defence Services (Classification.

Fourth Schedule • According to Fourth Schedule following are the conditions of service for change of which notice is to be given (1) Wages. (3) Compensatory and other allowances. (6) Starting alteration or discontinuance of shift working otherwise than in accordance with standing orders. (2) Contribution paid. except in so far as they are provided in standing orders. (5) Leave with wages and holidays. which is likely to lead to retrenchment of workmen. standardisation or improvement of plant or technique. or payable. (11) Any increases or reduction (other than casual) in the number of persons employed or to be employed in any occupation or process or department or shift. by the employer to any provident fund or pension fund or for the benefit of the workmen under any law for the time being in force. (4) Hours of work and rest intervals. (7) Classification by grades. . (9) Introduction of new rules of discipline. (8) Withdrawal of any customary concession or privilege or change in usage. (10) Rationalisation. or alteration of existing rules. including the period and mode of payment. not occasioned by circumstances over which the employer has no control.

Unfair Labour Practices “Unfair labour practice” means any of the practices specified in the
Fifth Schedule. The Fifth Schedule describer the practice on the part of employer and on the part of employee are unfair labour practice. This is based on the principle of coercion that employer shall not involved in the affairs of employees trade union by financial help or showing interest. Similarly, on the other hand employee must not leak any information and do any activities which harm the community of employees. This Act prohibits unfair labour practice and states that no employer or workman or a trade union, whether registered under the Trade Union Act, 1926 or not, shall commit any unfair labour practice. If, any person who commits any unfair labour practice shall be punishable with imprisonment up to six months or with fine up to Rs. 1000, or with both.

VI. LAY-OFF AND RETRENCHMENT OF WORKMAN IN PRIVATE SECTOR
• Section 2 (kkk) defines “lay-off” the failure of the employer to provide employment due to shortage of raw material, power etc. but who has not been retrenched. Section 2 (oo) defines “retrenchment” as termination of a workman for any reason whatsoever otherwise than voluntary retirement, reaching age of superannuation, non renewal of contract or termination due to continued ill-health. Section 2 (oo) (bb) – provides for termination of the service of a workman as a result of the non-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.

VII. CHAPTER VA AND VB OF IDA WITH REFERENCE TO LAY-OFF, RETRENCHMENT, TRANSFER AND CLOSURE
• Chapter VA applies to industrial establishment - in which less than fifty workmen on an average working day have been employed in the preceding calendar month and which are seasonal in character. Section 25C- A workman laid-off under this Chapter is entitled to fifty percent of his basic wages and dearness allowance. The workman who has been in continuous service for at least one year (a year being defined as 240 days of actual work) is terminated, covered under chapter VA, the conditions listed below will have to be fulfilled. Section 25F- Workman cannot be retrenched unless the employer has complied with – (i) giving one months notice in writing, (ii) paid compensation equivalent to 15 days average pay (for every completed year of continuous service) or any part thereof in excess of six months and (iii) notice in the prescribed manner to the appropriate Government.

• •

• Section 25N – No workman to which this chapter applies can be retrenched until the employer (i) has given three months notice in writing with reasons for retrenchment and (ii) prior permission has been obtained from the appropriate Government (‘specified authority”). • An extremely compelling case has to be made out in the application to the appropriate Government. • Section 25M – Prohibits the employer to lay.off except with the prior permission of the appropriate Government unless it is due to the shortage of power or due to natural calamity. • Chapter VB applies to industrial establishment in which not less than one hundred workmen were employed on an average per working day for the preceding twelve months.CHAPTER V B CONTD. . but even so the Government rarely grants this permission.

provides for transfer of an undertaking . in which case workmen are entitled to compensation as if the workman had been retrenched. • The transferee of the undertaking is not bound to take the employees. whether by agreement or operation of law. TRANSFER AND CLOSURE • Section 25FF.VIII. • The transferor is only bound to compensate the workman as if he is deemed to be retrenched .

permission will be deemed to have been granted. If the appropriate Government does not communicate within 60 days. An employer intending to close the undertaking has to take at least 90 days’ prior permission of the appropriate Government. CLOSURE – CHAPTER VB • • • • Section 25-O provides the procedure for closure. workman will be entitled to receive compensation which shall be equivalent to fifteen days’ average pay for every completed year of service or any part thereof in excess of 6 months. On permission being granted.……. .

The difference between the ordinary and the extraordinary handling of any task.Understanding the Importance of Knowledge Knowledge in organizational context. process or interaction – between employees with customers or with any other stakeholder of the firm – has always been the explicit and tacit usage of knowledge by the person guiding the transaction Continue… .

build future opportunity share and stay ahead of competition. . • •Managing knowledge is becoming a business imperative for those corporation who want to protect their present market share. •Knowledge will also be the key driver for those firms who are keen to innovate and change the rules of the game.Understanding the Importance of Knowledge The application of knowledge and the practice of knowledge management as a precise science can create wonderful results in any organizational context.

Knowledge utilization Continue… .Knowledge storage 3.Markets 2. 1.From Knowledge to Knowledge Management • Organization need to know what their knowledge assts are.Technologies •The key processes associated with these assets are: 1.Products 3.Knowledge generation 2. • Knowledge assets are nothing but knowledge about.Processes 4.

So. this knowledge can be purchased. For an organization it might.  Capturing tacit knowledge of its people into its repositories. Continue… .From Knowledge to Knowledge Management Knowledge generation can be seen to broadly comprise:  Knowledge acquisition  Knowledge synthesis  Knowledge creation • • Knowledge Acquisition is quite simple the process of acquiring knowledge that is available somewhere.  Knowledge for existing documents.  Or market intelligence.  Identifying external sources of either process/ technology experts.

From Knowledge to Knowledge Management • Knowledge synthesis:  It is the process of putting either different kinds of information or.  People together to be able to come up with new patterns and ideas. • Knowledge Storage • Knowledge once acquired needs to be preserved.  Knowledge capture  Maintaining the knowledge bases  Creating knowledge maps Continue… . • Knowledge storage entails the following:  Determining the knowledge typology relevant to the organization.

it becomes important to understand the kinds of knowledge that it uses and also those that it needs.  Numerous classification of knowledge are available. Continue… . 2.Tacit knowledge is experiential and localized in people’s heads.From Knowledge to Knowledge Management • Knowledge Typology  Before any organization can start a knowledge initiative.Explicit knowledge on the other hand is available in some documented form.  The most basic demarcation is classifying knowledge as being ‘’tacit’ or ‘explicit’ 1.

 Knowledge utilization.From Knowledge to Knowledge Management • Knowledge Utilization  The fundamental premise of knowledge management is that enterprises rely largely on the tacit knowledge of a few individuals for running a business. using it as best as possible and ploughing back the learning to further enrich the knowledge base. therefore. can be achieved through knowledge dissemination and sharing.  Knowledge management should endeavor ensure that the advantage of this knowledge permeates across the organization instead of available in isolated pockets. Continue… .

Knowledge Transfer Tacit/ individual Articulation Explicit/ individual Combination Intermalization Tacit/ Group Explicit/Group .

sentences. Explicit of codified knowledge refers to knowledge that is transmittable in a formal systematic language Continue… . Tacit knowledge is personal. Tacit knowledge includes beliefs. Tacit knowledge is experience.Knowledge and the organization • Knowledge creation and SECI model  There are two types of knowledge: Tacit and Explicit. It is very context specific. mental methods and technical skills – like the expertise of the craftsman. context specific. images. numbers and formulae. and therefore hard to formalize and communicate. intuition.based knowledge that cannot be expressed in words.

Externalization 3.Socialization 2.Combination and 4.Knowledge and the organization • Human knowledge is created and expanded through social interactions between tacit and explicit knowledge . 1. We call this interaction knowledge conversion. • We have fours modes of knowledge conversion.Internalization Continue… .

In the business setting on the job training uses basically the same principle.SECI MODEL •Socialization:  Which is the conversion from tacit to tacit. Continue… . not through language but through observation. For example apprentices work with their masters and learn craftsmanship.  The key to acquiring tacit knowledge is experiencing. imitation and practice. particularly some form of shared experience. is a process of creating tacit knowledge such as shared mental models and technical skills through shared experiences.

analogies. Continue… .SECI MODEL •Externalization:  Which is conversion from tacit to explicit knowledge. This mode is important for the entire knowledge-creation process in that tacit knowledge becomes explicit. often through metaphors. This is the process of articulating tacit knowledge into explicit concepts or languages. concepts and models.

Information technology can be very effectively used to enhance combination. Continue… . The recent progress in knowledge management has largely been made by facilitating this conversion mode. Combination and systemization of concepts through symbols such as language or figures is achieved through media such as documents. telephone conversation or computerized communication.SECI MODEL •Combination:  Which is combination of explicit with explicit knowledge. meetings.

and it is closely related to learning by doing.SECI MODEL •Internalization:  Which is the conversion process from explicit into tacit knowledge. Continue… . The new knowledge created through combination is internalized into individual tacit knowledge again. Internalization is the process of embodying explicit knowledge.

 Teams need to articulate new knowledge and to combine it with existing knowledge so that they can share it with other groups or departments to create organizational knowledge.Knowledge Creation  Organizational knowledge creation is a continuous and dynamic process of interaction between tacit and explicit knowledge. .  Thus. rather than control them. knowledge creation is process of self-transcendence. and organizations are place for the creation of knowledge.  Organizations need to support individuals. because they are the source of tacit knowledge. it is necessary to transcend the personal sphere.  Not many individual can share their knowledge freely.  However to create new knowledge.

• Knowledge Strategy:  From the view point of knowledge creation. structure. • Knowledge vision:  We need to design the vision.  The most critical elements of corporate strategy is to conceptualize a vision about it into a management system for implementation. the essence of strategy lies in developing the organizational capability to acquire. create.Knowledge Vision and Strategy • The knowledge creation process is supported in several ways.  Visions are image that challenge us to transcend our own boundaries. system and leadership to promote the process continuously. and exploit knowledge. . strategy. accumulate.

HR IN INSTITUTIONALIZING KNOWLEDGE MANAGEMENT IN AN ORGANIZATION .

HR has a pivotal and a key role in the development of the knowledge-based enterprise HR processes such as – •corporate education. •New HRM roles are those of human capital steward. skill and competency development. •performance management •nurturing (sharing. and rapid deployment specialist. doing and caring) culture – •Focus on strengthening collaborative team effort to leverage collective knowledge of the enterprise. relationship builder. knowledge facilitator. •Recruitment. . training.

• Talent management. how to leverage the collective knowledge of the enterprise. skill and competency development and career planning of an individual. which is the domain of HR and knowledge management are closely interrelated. training.recruitment. through Mentoring and knowledge sharing and collaborative team working. • Talent Management focuses at individual level -. . • Knowledge management focuses on people at collective level.

they attain exposure during training given to a variety of units and geographical locations which helps knowledge awareness / transfer.HR PROCESSES ALIGNED TO STRENGTHEN KNOWLEDGE MANAGEMENT. . • INDUCTION STAGE New executives undergo coaching and mentoring systems which are meant to transfer knowledge.

"Mentorship" The role of the mentor in the later period would be to challenge the executive to look beyond the obvious. look for past learning and base decisions on a more informed platform . .

JOB ROTATIONS • Well-planned job (role) rotations across geographical locations and businesses in a firm help not only people development. but also provide an important vehicle for transfer of knowledge and best practices. • Though an organization cannot obviously depend on this only as the main source of knowledge transfer .

cutting across formal organizational bounds. through sponsorship and or facilitation of knowledge communities (teams). is the way forward to effectively "leverage collective knowledge" of an enterprise. . being part of multiple teams – • vertical team (Business / category) & Horizontal team (function / knowledge domain).NETWORKED ORGANIZATION • people playing multiple roles. • HR should play a key role in developing such a networked organization.

knowledge sharing. Developing and sharing "best practices. capturing and sharing knowledge and delivering business excellence."Leverage Collective Knowledge" • What does leveraging "collective knowledge" involve? • • • • • • Working in collaborative teams. Managing organizational learning ." Faster replication of innovations through faster movement of knowledge through the organization. Acquisition and sharing of "new knowledge." Creating an environment that is comfortable to the idea of openness. risk of failure as well as rewards for success.

. should play an active role in developing suitable course material for the functional and business specific courses.KNOWLEDGE COMMUNITIES • The owners and users of the knowledge.

process improvement workouts are a combination of learning initiatives and knowledge initiatives which converge with training initiatives . team excellence workshops.like creative workshops. • company training programs --.TRAINING • A Company's training program needs to focus on functional and business specific skill development programs as well as competency development focused programs.

E. It allows the learner to enroll into courses or programs of their choice and acquire knowledge at their own pace at the place of their choice.Learning • Online learning is made available through company web sites (Intranets). . and even through CDROMs.

Make KM part of the Company training modules. . • HR could implement Institute Team awards for a better sharing culture. Hold visible knowledge sharing events.  Learning from experience  Team commitment  Developing others • “The • • • • Develop a mechanism to communicate effectively. Xerox: “Eureka Hall of Fame" • Performance Development Planning (PDP). sharing and collaborating. Collaborative effort and knowledge.CULTURE CHANGE STEPS IMPLEMENTED BY HR TO FACILITATE CULTURE CHANGE: best KM practitioners reward employees for learning.

BARRIERS FOR IMPLEMENTING KNOWLEDGE MANAGEMENT • Conceptual / mindset related issues • Operational issues .

“Hoarding of knowledge to gain power" "sharing of knowledge to gain power." . Often knowledge is seen as power and in a competitive environment there could be a tendency to hoard knowledge.CONCEPTUAL / MINDSET RELATED ISSUES • We need to create a culture of sharing.

. if it is seen as a diversion from focus on immediate results.OPERATIONAL ISSUES • The typical executive is already hard pressed for time. So Knowledge Management should not be seen as a separate initiative. He has no time for an additional initiative. but should be integrated into current workflow as a more effective way to achieve business results.

Talent management. and rapid deployment specialist.institutionalizing KM in an organization • • • • • • Focus on strengthening collaborative team effort to leverage collective knowledge of the enterprise. knowledge facilitator. training. relationship builder. Recruitment. Performance Management and nurturing (sharing. skill and competency development. Corporate Education. New HRM roles are those of human capital steward. . doing and caring) culture.

and disseminated – Provides a competitive advantage – Must be part of strategically designed employee development plan • .New HRM Roles • Human capital steward – Creates an environment and culture in which employees voluntarily contribute skills. developed. ideas. and energy – Human capital is not “owned” by organization Knowledge facilitator – Procures necessary employee knowledge and skill sets that allow information to be acquired.

• Relationship builder – Develops structure. knowledge-based economy mandates flexibility and culture that embraces change • . work practices. and culture that allow individuals to work together – Develops networks that focus on strategic objectives Rapid deployment specialist – Creates fluid and adaptable structure and systems – Global.

and practices impact the knowledge sharing in a firm? • Job rotations • Networked organization • Training • Knowledge communities (Teams) • E.Learning • Culture change .

knowledge sharing culture? Realign incentive and reward program: • “The best KM practitioners reward employees for learning. We will recognize those consultants that share and those that leverage other's knowledge and experience as most valuable members of the HP team. Step HR could implement are: • Institute Team awards Xerox: “Eureka Hall of Fame" Hewlett Packard Consulting: in their "vision" statement: "Our consultants feel and act as if they have the knowledge of the entire organization at their fingertips when they consult with customers." . sharing and collaborating.

• • • .HR should be the catalyst for culture change • HR will also be a key facilitator in implementing a companywide communication of value behaviours. Team excellence workshops and process improvement (speed. committed to business excellence. Develop "Knowledge Pull“. These culture change initiatives will strongly support our efforts to become a stronger knowledge driven company. simplicity and excellence) workouts are among the key initiatives that will soon be launched by HR to support the culture change.

1. Collaborative effort and knowledge.Learning from experience 2.Developing others Develop a mechanism to communicate effectively. Hold visible knowledge sharing events.HR could take for cultural change : • Performance Development Planning (PDP).Team commitment 3. Make KM part of the Company training modules. • • • • .

and give positive reinforcements for Knowledge Management .“ HR is best placed to play the role of an effective facilitator.Conclusion: • • Transformation into knowledge driven organization HR has a key role to play in nurturing and strengthening knowledge management through "learning initiatives" and "culture change initiatives. Knowledge management has already been embraced as a source of solutions to the problems of today’s business. • • .

IQ EQ AND SQ FOR LEADERSHIP IQ EQ SQ .

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Intelligent Quotient The ability to… • Perceive and understand information • Reason with it and arrive at conclusions • Imagine possibilities • Use intuition • Make judgements • Solve problems and make decisions .

Measurement of IQ • Bell Curve of IQ .

deficient • 0. impaired.5% People have IQ scores very high above 130 i.5 % People have IQ scores less than 70 i.e avarage • 2.Some Facts about IQ • 95 % People have IQ scores between 90 to 110 i.0005 % People are near genius or genius (above 140) or completely retarded (below 60).e. super intelligent • 2. mentally retarded.e. .

People with lots of nous but average intelligence can be enormously successful in running large companies.’John Kotter (1988) ‘The danger of a high intellect is that it can veer into over-intellectualizing a business problem that is essentially very simple. working long and hard on massive amounts of information. 1996) . former CEO of Granada (Tait.’ Gerry Robinson. is able to see (or recognize in suggestions from others) interesting patterns and new possibilities.Some views on IQ ‘Great vision emerges when a powerful mind.

We not only carry IQ with us. For overall development. but we often lack providing them due attention. however. In the past 10 years. . we need to look at EQ and SQ. your Emotional intelligence Quotient (EQ) might be a greater predictor of success.LOOKING FORWARD • • • • • • • • • • • • • • Is IQ the best way to predict what we’ll accomplish in life? We have been conditioned to believe that IQ is the best measure of human potential. The fact which current studies clearly point to is that IQ does not completely measure our intelligence. but also EQ and SQ. This has created an imbalance within us and made us very monotonic. researchers have found that this isn't necessarily the case. We have always nurtured our IQ but unfortunately left out our EQ and SQ. IQ is a measure of only a part of our overall intelligence. that in actuality.

research done by many neuroscientists and Psychologists showed that EQ is a basic requirement for the effective use of IQ .THE HIGHER DIMENSION – EMOTIONAL QUOTIENT (EQ) The ability to… • Understand the needs and feelings of oneself and other people • Manage one’s own feelings • Respond to others in appropriate ways • In the mid-1990’s.

According to John Kotter of Harvard Business School: “Because of the furious pace of change in business today. it is a question of emotions!!” . difficulty in managing relationships sabotage more business than anything else .it is not a question of strategy that gets us into trouble.NEED FOR EQ • .

being fired. • If someone says something negative about you. . 90% of life is decided by how you react. don't be a sponge. A wrong reaction could result in losing a friend.IMPROVING EQ • DISCOVERING THE 90/10 PRINCIPLE • What is this principle? • 10% of life is made up of what happens to you. getting stressed out etc. Let the attack roll off like water on glass. • Here are some ways to apply the 90/10 principle. You don't let the negative comment affect you! • React properly and it will not ruin your day.

You need it. but it doesn’t make you a star.’ Daniel Goleman (1997 . IQ is a threshold competence. Warren Bennis (1994) ‘High IQ makes you a good English professor.Some views on EQ ‘Emotional intelligence is much more powerful than IQ in determining who emerges as a leader. adding high EQ makes you CEO. adding high EQ makes you chairman of the English Department…High IQ makes you a brilliant fiscal analyst. Emotional intelligence can.

MOVING TOWARDS THE BEST • The last and most important quotient.” » Mother Teresa . is the one that differentiates us from animals • “Few of us can do great things. but all of us can do small things with great love. SQ.

Spiritual Intelligence
The ability to… • Understand that human beings have an animating need for meaning, value and a sense of worth in what they seek and do • Respond to that need in appropriate ways

DEFINITION OF SQ
• “SQ is the intelligence with which we ask fundamental questions and with which we reframe our answers.”

Use of Spiritual Intelligence
Without SQ, both IQ and EQ are barren What animates us? Spirit A growing need and awareness of SQ Spiritual leadership is about satisfying the need Wealth and happiness Significant scholars: Fry, Zohar and Marshall, Fairholm, Frankl • A developing consensus • Inspiration comes from leadership that provides meaning, purpose and value • • • • • •

or by contributing to society)… the impact can be extremely powerful. for example. 1983) ‘When people see their jobs as transcending their own personal needs (by improving the quality of life for others.’ Nietzsche (Allport.’ Kets de Vries and Florent-Treacy (1999) .Some views on SQ ‘He who has a why to live can bear with almost any how.

Good’ leadership in the moral sense is not a ‘rare talent’: ‘We are all “hard-wired” to be moral’. Lennick and Kiel (2005) .The Other Intelligence • Moral Intelligence The ability to differentiate right from wrong according to universal moral principles.

speaking and active listening • Body language • Other physical behaviour .Behavioural Intelligence (Skills) • Behaving or acting appropriately according to situational needs • Verbal communication – writing.

to…adapt to. analytical abilities and creativity] as moderated by values to…seek to reach a common good…by balancing intrapersonal (one’s own). interpersonal (others’). institutional. spiritual) interests…over the short and long term. Robert Sternberg (2002) .The wise Leader ‘[Wisdom is] the extent to which [a leader] uses successful intelligence [memory. shape. and select environments. and extrapersonal (organizational.

.Conclusion • Remember the Slogan ‘Engage the mind. feed the soul’. touch the heart.

THANK YOU .