Labour Law Notes
Labour Law Notes
Labour Law Notes
1. Closure
2. Conciliation Officer
3. Employer
Definition: An employer is any person or organization that hires workers for wages or
salaries and is responsible for overseeing and managing their work. Employers are
obliged to provide fair working conditions, compensate workers adequately, and
comply with labour laws.
Types:
o Direct Employer: Owns the business and directly employs workers.
o Indirect Employer: Engages workers through third-party contractors or
employment agencies.
Responsibilities: Ensuring employee safety, providing fair compensation, and
adhering to labor laws.
Example: A software development company that directly hires software engineers
and project managers is considered an employer.
4. Layoff
Lockout:
o A lockout occurs when the employer suspends work to pressure employees,
often during disputes over wages, conditions, or policies. It is used as a
strategy to compel employees to agree to the employer’s terms.
Layoff:
o A layoff is a temporary suspension of employment initiated by external factors
and is beyond the employees' control. The employees are expected to return to
work once conditions improve.
Example: In a lockout, a factory is closed due to unresolved wage negotiations with
the union. In a layoff, employees are suspended due to an economic slowdown that
reduces demand for products.
6. Strike
Definition: Industry refers to any organized economic activity where employees work
for wages. It includes a wide range of businesses, trade, and services, but generally
excludes activities without a profit motive, such as charities and religious
organizations.
Scope: Broadly interpreted to cover organized activities, systematic efforts, and
service-based enterprises.
Exclusions: Charitable, social, or purely educational activities may be excluded.
Example: Manufacturing, banking, and telecommunications all fall under the
definition of “industry.”
10. Retrenchment
11. Settlement
Definition: A settlement is an agreement reached between employers and employees
to resolve a dispute, often through negotiation or mediation, with or without a third
party.
Types:
o Bipartite Settlement: Directly negotiated between employer and employees.
o Tripartite Settlement: Involves the government as a mediator.
Importance: Provides a peaceful means to resolve conflicts without strikes or
lockouts.
Example: Management and a trade union agree on a bonus structure to prevent an
impending strike.
Definition: Standing Orders are rules of conduct that outline employment conditions
in an establishment, covering aspects like work hours, leave, disciplinary procedures,
and employee responsibilities.
Purpose: Ensures clarity and standardization of rules, reducing conflicts and
misunderstandings.
Example: Standing Orders specify that employees must report absences 24 hours in
advance and follow safety protocols strictly.
Definition: Unfair labor practices are activities that violate workers' rights or
undermine collective bargaining. Such practices are prohibited under labor laws and
include discriminatory, coercive, or obstructive actions by employers or unions.
Types:
o By Employers: Refusal to bargain, discrimination, or interference with union
activities.
o By Unions: Coercing employees, encouraging illegal strikes, or violating
contract terms.
Example: An employer threatens to fire workers who join a union, which is
considered an unfair labour practice.
14. Worker
Definition: Trade unions collect funds from members to carry out union activities,
provide legal and financial aid, and support workers during strikes. These funds are
crucial for the financial stability of the union and are used for the following purposes:
General Fund: This fund is used for the day-to-day activities of the union, including
administrative costs, meetings, and routine functions.
Political Fund: Trade unions may maintain a separate political fund for the purpose
of supporting political parties, candidates, or other political activities that align with
their goals.
Strike Fund: In case of a strike, the union may use this fund to provide financial
assistance to its members who are not receiving their regular wages.
Welfare Fund: This is used for the welfare of workers, such as providing aid during
illness, accidents, or other personal emergencies.
Definition: Disputes within a trade union can arise from various issues, and they often
involve conflicts between the leadership and the members, or between different
factions of the union. Common causes of disputes in trade unions include:
Financial Mismanagement: Disagreements over the allocation and use of the funds,
misuse of union resources, or lack of transparency in financial dealings can lead to
disputes.
Leadership Conflicts: Disputes may arise when members disagree with the union's
leadership or when there are allegations of favouritism or corruption within the
leadership.
Policy or Strategy Disagreements: Disagreements over union strategies, policies, or
how to handle negotiations with employers can lead to internal conflicts.
Membership Issues: Disputes may arise over the inclusion or exclusion of members,
or disagreements about the size of membership dues and other related issues.
By Shahbaz Khan