Industrial and Labour Law

Aditya Awasthi
7730863742
 Introduction
• Labour laws are a set of compliances that set the tone for
the treatment of the labour force in the workplace. Labour
is the greatest asset for an organisation and to ensure that
their rights are protected and to safeguard them against any
exploitation, labour laws are enforced.
• The Labour law acts as a tool to promote
worker empowerment as well as worker protection. It
regulates individual and collective employment relations.
Other relevant legislation includes Constitutional law, the
civil code, the criminal code as well as the supranational
ILO Conventions.
• Labour law is concerned with the establishment of a
labour-relations framework that provides peaceful
industrial relations between labours and organized
workers. It is basically related to the matters of labour-
relations, functions of a trade union, an adequate
environment of working, conditions under which labours
are working, strikes and security of the labour.
 Objective of Labour Law
• It establishes a legal system that facilitates productive individual
and collective employment relationships and hence a productive
economy. 
• By providing a framework within which employers, workers,
and their representatives can interact with work-related issues, it
serves as an important vehicle for achieving harmonious
industrial relations based on workplace democracy.
• It provides a clear and consistent reminder and the guarantee of
fundamental principles and labour rights that have gained broad
social recognition and defines the mechanisms through which
those principles and rights can be implemented and enforced.
Necessity and Importance of Labour Law
• Improves industrial relation i.e. employee-employer relations
and minimizes industrial disputes.
• Protects workers from exploitation by the employers or
management
• Helps workers in getting fair wages
• Minimizes labour unrest
• Reduces conflicts and strikes etc.
• Ensures job security for workers
• Promotes favourable environment conditions in the industrial
system
• Fixes rest pauses and work hours etc.
• Provides compensation to workers, who are victims of accidents.
 Labour Laws- Origin & Development

• In the period 1760 to 1830 the Industrial Revolution was

started from Britain and attended a peak in the mean time.
• Labour law arose parallel to the Industrial Revolution, as a
result of conflict between workers and industries.
• The initial labour laws were paved by the Britishers in
India.
• The labour laws enacted by the Britishers was meant
primarily to protect the British employers’ interests.
• The Factories Acts, 1883 and 1893- It was the first labour
law by British which stipulated eight hours of work, the
abolition of child labour, and the restriction of women in
night employment, and the introduction of overtime
wages for work beyond eight hours.
• The earliest Indian statute to regulate the relationship
between employer and his workmen was the Trade
Dispute Act, 1929 (Act 7 of 1929). Provisions were made
in this Act for restraining the rights of strike and lockout
disputes.
Establishment of International Labour Organization

• At the end of World War I, need for an international

organization was felt by various nations.
• In the Treaty of Versailles it was held and adopted that:
1. Labour should be treated as human beings and not commodities.
2. The right to minimum wages should be protected. 
3. There should be no wage disparity between men and women. 
4. Equal pay for equal work. 
5. The right to form associations is inherent and should be protected. 
6. Child labour below the age of 14 should be abolished. 
7. An eight-hour workday or a 40-hour workweek should be the norm across the
globe.
8. Benefits for women during the period of maternity 
9. Foreign workers to be treated on par with domestic workers. 
10.Condition of factories should be made habitable and congenial work
environments should be pushed.
Development of Labour Laws in India

Labour Laws

Pre- Post-
Independence Independence
 Post-Independence Labour Laws
• Indian Labour Law Framework began Industrial Dispute
Act,1947.
• Indian Govt enacted and implemented major labour acts
to neutralize the labour unrest and benefit the labour
workforce.
• Major Acts after Independence-
– Factories Act, 1948
– Minimum wages Act,1948
– Industrial Disputes Act, 1947
– Child Labour Prohibition Act
– Employee State Insurance Act
 Constitutional Provisions
• Fundamental Rights
• Art-14,19,21,23,24

• Fundamental Duties
• 39,39,39A,41,42,43,43A, 47

• Schedule 7
Judicial Activism and Labour welfare in India

Types of
Labour
Welfare

On the basis Basis of

of Place implementing
authority

Statutory Voluntary
Intramural Extramural
Welfare welfare
 Liberalization, Privatization & Globalization-
Impact on Indian Market and Labour class
• Liberalization: Relaxation or rebate from
statutory norms
• Privatization: transferring of ownership from
govt to private entities.
• Globalization: It means to integrate the
economy of one country with the global
economy
 Impact on Indian Economy
• Increased Foreign Direct Investment
• Reduced the Monopoly of the Public Sector
• Increased employment opportunities
• Increase in per capita income
• Reduced rates of interest and tariffs
• Decrease in the debt burden of the country.
• Consumer got the option to choose from a
wide range of products- competition in market.
• After 1992, the average annual growth rate of
GDP was 6.1%
• In 1993-94 the export of India recorded an
exponential growth of 20%
• In 1995, the export value of Computer
Services was about $11 Billion
 Labour Policy of India
• Labour policy in India is evolving as per the
specific need with regards to planned
economic development.
• Labour Policy have Two Major Objectives:
• Industrial Peace
• Welfare of Labour.
 Importance of Labour Policy
• Public & Private Investment
• Employment
• Proper utilization of funds
• Social security to the labours
• Allocation of funds to the vulnerable
• Modern/Latest technology.
 Unit II

Trade Union and Collective Bargaining

 Trade Union
• Trade Union: The Trade Unions Act, 1926 provides for
registration of trade unions with a view to render lawful
organization of labour to enable collective bargaining. It
also confers on a registered trade union certain protection
and privileges.
• A trade union is an organized group of workers who
strive to help the workers in the issues relating to the
fairness of pay, good working environment, hours of
work and other benefits that they should be entitled to
instead of their labour. They act as a link between the
management and workers.
• Sec 2(h) of Trade Union Act- "Trade Union"
means any combination, whether temporary or
permanent, formed primarily for the purpose
of regulating the relations between workmen
and employers or between workmen and
workmen, or between employers and
employers.
 Collective Bargaining
• Collective bargaining has been defined by the Supreme
Court as “the technique by which dispute as to conditions
of employment is resolved amicably by agreement rather
than coercion. In the case of Karol Leather Karamchari
Sangathan v. Liberty Footwear Company, (1989) 4
SCC 448
• It is a process of discussion and negotiation between
employer and workers regarding the terms of employment
and working conditions. Workers are generally
represented by trade unions with respect to expressing
their grievance concerning service conditions and wages
before the employer and the management.
Section 3 of the Act empowers the appropriate government to appoint a person as

the registrar of a trade union. The appropriate government can also appoint as many

additional and deputy registrars in a trade union as it deems fit for carrying on the

purposes of the Act.

Section 4 of the Act provides for the mode of registration of the trade union.

According to the Section, any seven or more than seven members of a trade union

may by application apply for the registration of the trade union subject to the

following two conditions:

At Least 7 members should be employed in the establishment on the date of the

making of the application.

At Least 10% or a hundred members whichever is less, are employed in the

establishment should be a part of it on the date of making the application.

• 5. Application for registration.-
• (1) Every application for registration of a Trade Union
shall be made to the Registrar, and shall be accompanied
by a copy of the rules of the Trade Union and a statement
of the following particulars, namely: -
• (a) the names, occupations and addresses of the members
making the application;
• (b) the name of the Trade Union and the address of its
head office; and
• (c) the titles, names, ages, addresses and occupations of
the office-bearers of the Trade Union.
• Section 6: Provisions to be contained in the rules of a Trade
Union
• Name of the trade union;
• The object of the establishment of the trade union
• Purposes for which the funds with the union shall be directed;
• A list specifying the members of the union shall be maintained.
The list shall be inspected by office bearers and members of the
trade union
• The procedure by which the rules can be amended
• The safe custody of the funds of the labour union, an annual
audit,
• The manner within which the labour union could also be
dissolved
• Section 7: Power to call for further particulars and require alteration of
the name
• Section 7 of the Act furnishes upon the registrar power to call for
information in order to satisfy himself that any application made by the
trade union is in compliance with the Section 5 and 6 of the Act.
• This Section also confers power to the registrar to direct the trade union
to alter its name or change the name if the registrar finds the name of
such union to be identical to the name of any other trade union
• Section 8: Registration
• According to Section 8 of the Act, if the registrar has fully satisfied
himself that a union has complied with all the necessary provisions of the
Act, he may register such union by recording all its particulars in a
manner specified by the Act. 
• Section 9: Certificate of Registration
• According to Section 9 of the Act, the registrar shall issue a registration
certificate to any trade union which has been registered under the
provision of Section 8 of the Act and such certificate shall act as
conclusive proof of registration of the trade union.
• Section 10: Cancellation of Registration
• The registrar, according to Section 10 of the Act has the power
to withdraw or cancel the registration certificate of any union
in any of the following conditions
• If the registrar is satisfied with the fact that the trade union has
obtained the certificate by means of fraud or deceit;
• If the trade union has ceased to exist
• If any union has rescinded any rule provided under Section 6
of the Act.
• Section 11: Appeals-Any union which is aggrieved by
a refusal to register or withdrawal of registration made
by the registrar can file an appeal.
• Section 12 of the Act lays down that all
communications and notices to any trade union must
be addressed to its registered office. If a trade union
changes the address of its registered office, it must
inform the same to the registrar within the period of
fourteen days.
• Section 13: Incorporation of Registered Trade Union
• Section 13 of the Act states that every trade union which
is registered according to the provisions of the Act,
shall:
• Be corporate by the name under which it is registered.  
• have perpetual succession and a common seal.
• Power to contract and hold and acquire any movable and
immovable property.
• By the said name can sue and be sued.
 Rights and Liabilities of Registered Trade Unions
• Section 15 to Section 28 elucidates the rights which a registered
trade union has and also the liabilities which can be imposed against
it.
• Section 15 of the Act lays down the activities only on which a registered trade
union can spend its funds. These activities include:
• Salaries to be given to the office-bearers.
• The cost incurred for the administration of the trade union.
• Compensation to the workers due to any loss arising out of any trade dispute.
• Expenses incurred in the welfare activities of the workers.
• Benefits conferred to the workers in case of unemployment, disability, or death.
• The cost incurred in bringing or defending any legal suit.
• Publishing materials with the aim of spreading awareness amongst the workers.
• Education of the workers or their dependents.
• Making provisions for medical treatment of the workers.
• Taking insurance policies for the welfare of the workers.
• Section 16: Constitution of a Separate Fund
for Political purposes
• Section 16 provides that a trade union, in order
to promote the civic and political interests of
its members can constitute a separate fund
from the contributions made separately for the
said purposes. No member of the union can be
compelled to contribute to the fund. 
• Section 17: Criminal conspiracy in Trade Disputes
• Section 17 of the Act states that no member of a trade union can
be held liable for criminal conspiracy mentioned under sub-
Section 2 of Section 120B regarding any agreement made
between the members of the union in order to promote lawful
interests of the trade union. Unless the agreement is an agreement
to commit an offence

• Section 18: Immunity from civil suits in certain cases

• Section 18 of the Act immunes the members of trade union from
civil or tortious liabilities arising out of any act done in
furtherance or contemplation of any trade disputes. e.g.
Termination of contract
• Section 19: Enforceability of agreement
• According to Section 25, of ICA any agreement in restraint of
trade is void. But under Section 19 of the Trade Unions Act, 1926
any agreement between the members of a registered trade union
in restraint of trade activities is neither void nor voidable.
However such right is available only with the registered trade
unions as the unregistered trade unions have to follow the general
contract law.

• Section 20: Right to inspect the books of Trade Union

• According to Section 20 of the Act, the account books and the list
of the members of any registered trade union can be subjected to
inspection by the members of the trade union at such times as
may be provided under the rules of the trade union.
• Section 21: Rights of minors to membership of Trade Union
• Section 21 provides that a person who is above 15 years of age
can be  a member of any trade union and if he becomes a
member he can enjoy all the rights conferred upon the members
of the trade union subject to the conditions laid down by the
trade union of which he wants to be a part of.

• Section 22: Proportion of office-bearers to be connected with the

industry
• Section 22 of the Act mandates that not less than half of the
members of the trade union should be employed in the industry
or work with which the trade union is connected. For example
trade union is made for the welfare of the agricultural labourers
then, as per this Section half of the members of such a trade
union should be employed in agricultural activities. 
• Section 24: Amalgamation of Trade Unions
• Section 24 lays down that two or more trade unions can join
together and form one trade union with or without dissolution
or division of the fund. Such amalgamation can take place only
when voting by half of the members of each trade union has
been effectuated and that sixty per cent of the casted votes
should be in favour of the proposal.