Industrial Legal Environment

• Romans: Law is the standard of what is just and

unjust.

• Austin: Law is the aggregate of rule set by men as

politically superior, or sovereign, to men as politically
subject. In other words, law is command of the
sovereign.

• Salmond: the body of principles recognized and

applied by the state in the administration of justice.
 SOURCE
S OF
Morals LAW Opinions
and
of experts
equity

Legislati
Custom
on

Precede
nt
 Custom
A practice followed by people of a particular group
or region.

Essentials of a Custom
• Antiquity
• Continuance
• Obligatory force
• Certainty
• Reasonableness / public policy
• Conformity with statute law
 What is a Precedent?
• According to Oxford Dictionary, Precedent is a
previous instance or case which is, or may be taken
as an example of rule for subsequent cases, or by
which some similar act or circumstances may be
supported or justified.
• Precedents are the results of creative role of the
judges while dealing cases.
• Stare decisis (stand by decided cases), ratio
decidendi (law declared)
 Legislation

• Promulgation of legal rules by an authority which

has the power to do so. (Parliament,
Legislatures, President, Governor, King/Queen
etc.). Also known as Supreme Legislation.

Morals and equity

Opinions of experts
 Why a MBA should know Law?

• He should develop a ‘legal sense’ to know his rights

• He should develop a ‘legal sense’ to know his obligations

as per relevant law.

• Remember “ignorance of law is no excuse”.

• There are many legislations affecting the business entity

today. Basic knowledge of some of the legislations, rules,
notifications and clarifications under various provisions of
the concerned Acts would help in carrying out the
business without legal problems.
Some of Acts may be grouped under:

• General Laws,
• Procedural Laws
• Commercial & Corporate Laws
• Environmental Laws
• Labour and Industrial Laws
• Taxation Laws
 General Laws

• The Constitution of India [395 Articles divided into 22

Parts and 12 Schedules – fundamental rights, directive
principles, constituting )

• The Indian Penal Code, 1860 [ general penal code

contained in 511 sections divided into 23 chapters)

• Family Laws /personal laws (Hindu, Muslim &

Christian – governing majority, adoption, inheritance of
property, marriage, divorce, guardianship etc. in
different Acts)
 Procedural codes
• The Code of Civil Procedure, 1908 [158 sections and 51
Orders ]

• The Code of Criminal Procedure, 1973 [484 sections

divided into 38 chapters with 2 schedules – 1st schedule
about classification of offences and 2nd schedule contains
various forms used in following the procedure.]

• The Indian Evidence Act, 1872 [167 sections divided into

11 parts) deals with proving facts by evidence–oral or
written or circumstantial. Facts are the basis on which
the rights and liabilities are ascertained to determine the
case before hand.
 Commercial & Corporate Laws

• The Indian Contract Act, 1872

• The Indian Partnership Act 1932
• The Negotiable Instruments Act, 1881
• The Companies Act, 1956
• The Foreign Exchange Management Act, 1999
• The Competition Act, 2002
• The Securities Exchange Board of India Act,
1992
• The Consumer Protection Act, 1986
 Environmental Laws:

• The Water (Prevention and Control of

Pollution) Act, 1973
• The Air (Prevention and Control of
Pollution) Act, 1981
• The Environment (Protection) Act, 1986
 Industrial and Labour Laws
 The Factories Act, 1948
 The Industrial Disputes Act, 1947
 The Trade Unions Act, 1926
 The Employees’ Provident Funds and
Miscellaneous Provisions Act, 1952
 The Employees’ State Insurance Act, 1948
 The Industrial Employment (Standing Orders) Act,
1946
 The Workmen’s Compensation Act, 1923
 The Maternity Benefit Act, 1961
 The Minimum Wages Act, 1948
 The Payment of Bonus Act, 1965
 Shops and Establishment Acts of concerned States.
 Direct & Indirect Taxation Laws:

• The Income Tax Act, 1961

• The Customs Act, 1962
• The Central Excise Act. 1944
• The Central Sales Tax Act, 1956 &
concerned State General Sales Tax Acts.
• Host of State Acts & Rules relating to
sales, excise etc.
Workmen’s Compensation Act 1923

• This Act is the earliest national legislation to provide the

compensation to certain classes of workmen by their

employers for injury which may be suffered by the

workmen as a result of an accident during the course of

employment.  The general principle is that a workman

who suffers injury in course of his employment should

be entitled to compensation and in case of fatal injury his

dependants should be compensated.

 
Minimum Wages Act 1948
The Act prescribes minimum wages for all employees in all
establishments or working at home in certain employments
specified in the schedule of the Act. Central and State
Governments revise minimum wages specified in the
schedule.

Payment of Wages Act 1936

• The Act regulates issues relating to time limits within which

wages shall be distributed to employees and that no
deductions other than those authorized by the law are made
by the employers.
Industrial Disputes Act 1947

• Further more the Act aims to ensure fair terms to

workmen and to prevent disputes between
employer and the employees so that production
may not be adversely affected in the larger interest
of public.
It provides the mechanism for the reconciliation and
adjudication of disputes or differences between the
employees and the employers.  The Act provides the
procedure for termination/retrenchment or layoff of
a workman.
• Employees Provident Fund and
Miscellaneous Provisions Act 1952

This Act provides for the institution of provident

funds, employees pension funds and deposit linked
insurance fund for employees in factories and other
establishment.  Its main purpose to ensure the
financial security of the employees in an
establishment by providing for a system of
compulsory savings.
Payment of Bonus Act 1965

• The Act applies to any establishment / business in which

twenty or more persons are employed on any day during an

accounting year.  It provides for the payment of bonus to

persons employed in certain establishments on the basis of

profits or on the basis of production or productivity. The

minimum bonus, which an employer is required to pay even

if he suffers losses during the accounting year is 8.33% of the

salary.
Payment of Gratuity Act 1972

• The Act provides for a provision for the payment of

gratuity to all employees in all establishments
employing ten or more employees to all types of
workers. Gratuity is payable to an employee on his
retirement/resignation.
Maternity Benefit Act 1961
• The Act provides the certain benefits to the women
for a prescribed period before and after child birth.
The Act does not apply to any factory or other
establishment to which the Employees State
Insurance Act 1948 is applicable.
Industrial Employment (Standing orders)
Act 1946
• The Act requires employers in industrial
establishments to clearly define the conditions of
employment by issuing standing orders duly
certified. Model standing orders issued under the
Act deal with classification of workmen, holidays,
shifts, payment of wages, leaves, termination etc.
The Contract Labour (Regulation &
Abolition) Act, 1970

• The Act was passed to aid of workers who are

employed through contractors and who have no
direct link with industry for which work is done. 
The Act regulates the employment of contract
labour in certain establishments and prohibits such
employment in certain circumstances.
The Factories Act, 1948
• The Act provides that employees should work in
healthy and sanitary conditions  so far as the
manufacturing process will allow and that
precaution to be taken care for their safety and for
the preventions of accidents.
The Employees’ State Insurance Act 1948
• The Employees State Insurance Act is a piece of
social security legislation conceived as a means of
extinction of the evils of society, namely disease,
dirt, ignorance and indigence. The object of this Act
is to secure sickness, maternity, disablement, and
medical benefit to employees and dependants’
benefits to the dependants. These benefits are
secured by financial contributions to the Scheme by
employers and employees.
Shops and Commercial Establishment Act

This Act provide for minimum hours of work, rest

intervals, holidays, annual leave, opening and
closing hours of establishment, payment of wages,
and for restrictive employment of children.
 Growth of Labour Legislations
• Industrial revolution
-The maximization of profit, even at the cost of the life of
the labourers
• Laissez- faire
• Tea District Emigrant Labour Act, 1832 and Workmen’s
Breach of Contract Act, 1859
• Civil servants from England
-Factories Act 1881, Mines Act 1901
-Workmen Compensation Act 1923
-Indian Trade Union Act, 1926
-Industrial Disputes Act, 1947
-The payment of Wages Act 1936
• Report on labour reforms
 Nature of labour legislations

• The labour legislations are the products of Industrial

Revolution
• Labour legislation regards individual as workers,
whereas the general legislations regards him as
citizen
• Labour legislation seeks to deal with problems
arising out of occupational status of the individual
• No jurisdiciton of civil courts
 Principles of Modern Labour Legislations

• Principle of protection
“To protect those workers who are to protect their
interests on their own and also workers, in particular
industries against the hazards of industrial process”
• Principle of social justice
“It aims at removing discrimination suffered by
particular groups of labour”
• Principle of Regulation
“It generally seeks to regulate the relationships between
the employers and their associations, on the one hand,
and workers and their organisations, on the other”
• Principle of welfare
“To provide certain welfare amenities to the workers,
and often to their family members also”

• Principle of social security

“To make available social security benefits under the
coverage of legislations”

• Principle of Economic Development

Objectives of the labour legislations

• Establishment of justice- Social, Political and

Economic
• Provisions of opportunities
• Protection of weaker section
• Maintenance of Industrial Peace
• Creation of conditions for economic growth
• Guarantee right of workmen to combine and form
association or unions
• Ensure human rights and dignity
The classification of Labour Legislations

1. Regulative
• The Trade Union Act, 1926
• The Industrial Disputes Act, 1947
• Industrial Employment (Standing Orders) Act 1946
2. Protective
• Factories Act, 1948
• The Mines Act, 1952
• The Plantations Labour Act, 1951
• The shops and establishment Act
3. Wage-Related Labour Legislations
• The Payment of Wages Act, 1936
• The Minimum Wages Act, 1948
• The Payment of Bonus Act, 1965
• The Equal Remuneration Act, 1976
4. Social Security and Labour welfare Legislations
• The Workmen’s Compensation Act, 1923
• The Employees’ State Insurance Act, 1948
• The Employees PF and Miscellaneous Provisions
Act, 1952
• Contract Labour (Regulation and Abolition) Act,
1970
 Indian Constitution and Labour
Legislations
WE, THE PEOPLE OF INDIA, having solemnly
resolved to constitute India into a [SOVEREIGN,
SOCIALIST, SECULAR, DEMOCRATIC,
REPUBLIC] and to secure to all its citizens:
JUSTICE,
• social, economic and political;
LIBERTY
• of thought, expression, belief, faith and worship;
EQUALITY
• of status and of opportunity; and to promote
among them all
FRATERNITY assuring the dignity of the individual
and the [unity and integrity of the Nation];
 Fundamental Rights and Labour
Legislations

• The Right of Equality(Article 14 to 18)

• The Right to Freedom (Article 19 to 22)

• The Right against exploitation (Article

23 to 24)

• The Right to Constitutional Remedies

(Article 32 to 35)
Directive Principles of state policy and
labour legislations
• Article 38
– Directs state to promote welfare of the people
- To minimize inequality in status, facilities and
opportunities
• Article 39 - State shall direct its policy towards securing
- That citizens, men and women equally, have the right to
an adequate means of livelihood.
- Equal pay for equal work for both men and women
- The health and strength of the workers, men and women
and the tender age of the children not to be abused.
• Article 42
- State to make provision for securing just and
humane conditions of work and maternity relief.

• Article 43 A
- State shall take steps, by suitable
legislations, or in any other way, to secure
the participation of workers in
management
 ILO and its influence on Labour Legislation in
India
• The ILO (International Labor Organization) was set
up in the year 1919, with an aim to improve the
conditions of labors around the world. India was the
founding member of ILO, which has now expanded
its membership to 175 nations. ILO through its
conventions and recommendations helps nations to
draw their own set of labor laws for the better
treatment of the working class, and the preservation
of their rights.
 The Objectives of the ILO

• Full employment and raising of standards of living

• The employment of workers in the occupation in
which they can have the satisfaction.
• Policies in regard to wages and earning bonus and
other conditions of work
• The effective recognition of the right of Collective
Bargaining
• Adequate protection for the life and health of
workers in all occupations
• Provision for child welfare and maternity protection
 Influence on Indian Labour Legislation

• Conditions of work
- Hours of work – Convention 1919
- Weekly rest – Convention 1921
- Minimum wages- Convention 1928
• Employment of children and young
persons
- Minimum age- convention 1919
- Medical examination of young persons- convention
1921
• Employment of Women
- Night work (women)- convention 1948
- Equal remuneration- convention 1951
• Health, Safety and Welfare
- The provisions of the Protection against Accidents
-Conventions 1934
- Occupational safety and health- convention 1981
• Social Security
- Workmen’s Compensation- Convention 1925
- Equality of treatment- convention 1962
• Employment and Unemployment
- Unemployment- convention 1919
THE FACTORIES ACT, 1948.
• In India the first Factories Act was passed in 1881.
• In 1891 another factories Act was passed which extended to the
factories employing 50 or more workers.
• Indian Factories Act 1911, Indian factories( Amendment) 1922,
Factories Act, 1934

• The Factories Act, 1948 came into force on the 1 st day of April,1949 and
extends to the whole of India. It was, in fact, extended to Pondicherry
in 1963, to Goa in 1965 and to the State of Jammu & Kashmir in 1970.

• In Bhikusa Yamasa Kshatriya (P) Ltd. v UOI, the court observed that
the Act has been enacted primarily with the object of protecting
workers employed in factories against industrial and occupational
hazards. For that purpose, it seeks to impose upon the owner or the
occupier certain obligations to protect the workers and to secure for
them employment in conditions conducive to their health and safety.
Scope and Applicability of the Act

“The Act extends to whole of India. The benefits of this

Act are available to persons who are employed in
the factory and be covered within the meaning of
the term ‘worker’ as defined in the Act.
 Definitions
• “Factory” is defined in Section 2(m) of the Act. It means any
premises including the precincts thereof-
i. Whereon ten or more workers are working, or were working on
any day of the preceding twelve months, and in any part of which
a manufacturing process is being carried on with the aid of power,
or is ordinarily so carried on; or
ii. Whereon twenty or more workers are working, or were working
on any day of the preceding twelve months, and in any part of
which a manufacturing process is being carried on without the aid
of power, or is ordinarily so carried on;
• But does not include a mine subject to the operation of the Mines
Act,1952 or a mobile unit belonging to the Armed forces of the
Union, a railway running shed or a hotel, restaurant or eating
place.
• “Manufacturing process" means any process for -

(i) making, altering, repairing, ornamenting, finishing,

packing, oiling, washing, cleaning, breaking up,
demolishing or otherwise treating or adopting any
article or substance with a view to its use, sale,
transport, delivery or disposal; or
(ii) pumping oil, water, sewage, or any other substance; or
(iii) generating, transforming or transmitting power; or
(iv) composing types for printing, printing by letter press,
lithography, photogravure or other similar process or
book-binding ;or
(v) constructing, reconstructing, repairing, refitting,
finishing or breaking up ships or vessels ; [or]
(vi) preserving or storing any article in cold storage;
• New Taj Mahal Café Ltd. Mangalore Vs. Inspector
of factories , Mangalore
“the preparation of foodstuffs and other eatables in the
kitchen of a restaurant and use of a refrigerator for
treating or adapting any article with a view to its sale
were held to be manufacturing process”
• Ardeshir V. Bombay state (Salt process)
“The process carried out in the salt works comes
within the definition of ‘manufacturing process’ in as
much as salt can be said to have been
manufactured from sea water by the process of
treatment and adoption of sea water in to salt”
• Hathras Municipality V. Union of India
“the pumping of water is a manufacturing
process according to the definition given in
this Act”
“Worker"

means a person employed directly or by or through any agency

(including a contractor)with or without the knowledge of the

principal employer whether for remuneration or not in any

manufacturing process, or in cleaning any part of the machinery

or premises used for a manufacturing process, or in any other

kind of work incidental to, or connected with the manufacturing

process, or the subject of the manufacturing process 10[but does

not include any member of the armed forces of the Union];

• Worker is a person
i) who is employed;
ii) Who is employed either directly or through any
agency
iii) Who is employed in any manufacturing process, or
in cleaning any part of the machinery or premises
used for a manufacturing process or in any other
kind of work, incidental to or connected with the
manufacturing process or the subject of the
manufacturing process
If above conditions fulfilled, then it is immaterial
whether a person was employed for remuneration
of not
• Chintaman Rao Vs State of Madhya Pradesh
A Bidi factory entered in to contracts with independent
contractors known as sattedars were supplied tobacco
and bidi leaves also. The sattedars were neither bound to
work in the factory nor were they bound to prepare the
bidis themselves but could get them prepared by others.
They engaged coolies for rolling bidis and made payments
to them. Factory made payments to the sattedars for work
of rolling bidis.
S C Held that
I) Worker was a person employed by the management and
II) There must be a contract of service and a relationship of
master and servant should be there.
Sattedars were independent contractors and that they and
the coolies engaged by them for rolling bidis were not
workers
"occupier" of a factory means a person, who has
ultimate control over the affairs of the factory,
Provided that -
• in the case of a firm or other association of
individuals, any one of the individual partners or
members thereof shall be deemed to be the
occupier;
• in the case of a company, any one of the directors,
shall be deemed to be the occupier;
• "adult“
means a person who has completed his eighteenth
year of age ;
• "adolescent"
means a person, who has completed his fifteenth year
of age but has not completed his eighteenth year ;
• "child"
means a person who has not completed his fifteenth
year of age ;
• "young person"
means a person, who is either a child or an
adolescent;
• Approval, licensing and registration of
factories
The State Government may make rules -
(a)requiring, for the purposes of this Act, the submission of plans of
any class or description of factories to the Chief Inspector or the
State Government;
(aa) requiring the previous permission in writing of the State
Government or the Chief Inspector to be obtained for the site on
which the factory is to be situated and for the construction or
extension of any factory or class or description of factories;
b)requiring for the purpose of considering applications for such
permission the submission of plans and specifications;
c) prescribing the nature of such plans and specifications and by whom
they shall be certified ;
d)requiring the registration and licensing of factories or any class or
description of factories, and prescribing the fees payable for such
registration and licensing and for the renewal of licenses;
e)requiring that no license shall be granted or renewed unless the
notice specified in section 7(Notice by occupier) has been given.
2) If on an application for permission referred accompanied
by the plans and specifications required by the rules
made under clause(b)of that sub-section sent to
the[State]Government or Chief Inspector by registered
post, no order is communicated to the applicant within
three months from the date on which it is so sent the
permission applied for in the said application shall be
deemed to have been granted.
 Notice by Occupier

The occupier shall, at least fifteen days before he begins to

occupy or, use any premises as a factory, sent to the Chief
Inspector a written notice containing -
a) the name and situation of the factory;
b)the name and address of the occupier;
(bb) the name and address of the owner of the premises or
building (including the precincts thereof) referred to in
section 93] ;
c) that address to which communication relating to the factory
may be sent;
d) the nature of the manufacturing process -
(i) carried on in the factory during the last twelve months in the case of
factories in existence on the date of the commencement of this Act, and
(ii) to be carried on in the factory during the next twelve months in the case
of all factories;
(e) the total rated horse power installed or to be installed in the factory,
which shall not include the rated horse power of any separate stand-
by plant];
f) the name of the manager of the factory for the purposes of this Act;
g) the number of workers likely to be employed in the factory;
h) the average number of workers per day employed during the last
twelve months in the case of a factory in existence on the date of the
commencement of this Act;
i )such other particulars as may be prescribed.
• Whenever a new manager is appointed, the occupier
shall send to the Inspector a written notice and to the
Chief Inspector a copy thereof within seven days from
the date on which such person takes over charge.

• During and period for which no person has been

designated as manager of a factory or during which the
person designated does not manage the factory, any
person found acting as manager, or if no such person is
found, the occupier himself, shall be deemed to be the
manager of the factory for the purposes of this Act.
 General duties of the Occupier

• Plant maintenance that is safe and without risk to health

of workers
• Safeguard health and safety with the use, handling,
storage and transport of articles and substance
• Provide information, instruction, training and supervision
to ensure health and safety of all workers
• Monitoring of work environment
• Preparing written statements of policy with respect to
the health and safety of workers and to give notice to the
workers as per rules.
General duties of manufacturers, etc. as regards articles
and substances for use in factories
• (1) Every person who designs, manufactures, imports or
supplies any article for use in any factory shall -
a) ensure, so far as is reasonably practicable, that the article
is so designed and constructed as to be safe and without
risks to the health of the workers when properly used;
b) carry out or arrange for the carrying out of such tests and
examination as may be considered necessary for the
effective implementation of the provisions of clause (a);
c) take such steps as may be necessary to ensure that adequate
information will be available -
– in connection with the use of the article in any factory;
– about the use for which it is designed and tested; and
– about any conditions necessary to ensure that the article,
when put to such use, will be safe, and without risks to the
health of workers:
• Provided that where an article is designed or manufactured
outside India, it shall be obligatory on the part of the importer
to see -
- that the article conforms to the same standards if such article is
manufactured in India, or
- if the standards adopted in the country outside for the
manufacture of such article is above the standards adopted in
India, that the article conforms to such standards.
The Inspecting Staff
The ![State] Government may, by notification in the Official
Gazette, appoint such persons as posses the prescribed
qualification to be inspectors for the purposes of this Act and
may assign to them such local limits as it may think fit.

Types of Inspectors
Chief Inspector, Additional Chief Inspector, Joint Chief Inspector,
Deputy chief inspectors, Inspectors and Additional Inspectors
No person shall be appointed or having been so appointed, shall
continue to hold office, who is or becomes directly or
indirectly interested in a factory or in any process or business
carried on therein or in any patent or machinery connected
therewith.
 Powers of Inspectors

(a) enter with such assistants, being persons in the service

of the Government, or any local or other public authority
or with an expert, as he thinks fit, any place which is
used, or which he has reason to believe is used as a
factory;
(b) make examination of the premises, plant, machinery,
article or substance;
(c) inquire into any accident or dangerous occurrence,
whether resulting in bodily injury, disability or not, and
take on the spot or otherwise statements of any person
which he may consider necessary for such inquiry;
(d) require the production of any prescribed
register, record or other document relating to the
factory;
(e) seize, or take copies of, any register, record or
other document or any portion thereof, as he
may consider necessary in respect of any
offence under this Act, which he has reason to
believe, has been committed;
(f) direct the occupier that any premises or any part
thereof, or anything therein, shall be left
undisturbed (whether generally or in particular
respects) for so long as is necessary for the
purpose of any examination;
(g) take measurements and photographs and make
such recordings as he considers necessary for
the purpose of any examination, taking with
him any necessary instrument or equipment;
(h) in case of any article or substance which appears to him
as having caused or is likely to cause danger to the health
or safety of the workers, direct t it to be dismantled or
subject it to any process or test (but not so as to damage
or destroy it unless the same is, in the circumstances
necessary, for carrying out the purposes of this Act), and
take possession of any such article or substance or a part
thereof, and detain it for so long as is necessary for such
examination;
(i) exercise such other powers as may be prescribed]
 Certifying Surgeons

The ![State] Government may appoint qualified

medical practitioners to be certifying surgeons
for the purposes of this Act within such local
limits or for such factory or class or description
of factories as it may assign to them respectively.
Duties of certifying surgeons
• the examination and certification of young
persons under this Act;
• the examination of persons engaged in factories
in such dangerous occupations or processes as
may be prescribed;
• the exercising of such medical supervisions as may be
prescribed for any factory or class or description of
factories where -
– cases of illness have occurred, which it is reasonable
to believe are due to the nature of the manufacturing
process carried on, or other conditions of work
prevailing therein; by reason of any change in the
manufacturing carried on or in the substances used
therein or by reason of the adoption of any new
manufacturing process, or of any new substance for
use in a manufacturing process, there is likelihood of
injury to the health of workers employed in that
manufacturing process;
– young persons are, about to be, employed in any work
which is likely to cause injury to their health.
 HEALTH
Cleanliness
• Dust and fumes should removed daily
• Floors, stair-cases and passages should be cleaned regularly
• Washing of interior walls and roofs should take place at least
once in 14 months
• Where walls and roofs are painted with washable water paint,
be repainted after every three years and where oil paint is
used at least once in five years
• All doors and window-frames and other wooden or metallic
framework and shutters shall be kept painted or varnished
and the painting or varnishing shall be carried out at least
once in every period of five years;
Disposal of wastes and effluents
Effective arrangements shall be made in every factory for the
treatment of wastes and effluents due to the manufacturing
process carried on therein, so as to render them harmless,
and for their disposal.

Ventilation and temperature

• Provision for adequate ventilation by the circulation of fresh
air
• Provision for such a temperature as will secure to workers
therein reasonable conditions of comfort and prevent injury
to health;
• and in particular,-
– walls and roofs shall be of such material and so
designed that such temperature shall not be exceeded
but kept as low as practicable;
– where the nature of the work carried on in the
factories involves, or is likely to involve, the
production of excessively high temperatures, such
adequate measures as are practicable shall be taken
to protect the workers there from, by separating the
process, which produces such temperatures from the
workroom, by insulating the hot parts or by other
effective means.
• Dust and fume
In every factory in which, by reason of the manufacturing
process carried on any dust or fume or other impurity is
likely to be injurious or offensive to the workers
employed therein, effective measures shall be taken to
prevent its inhalation and accumulation in any
workroom, and if any exhaust appliance is necessary for
this purpose, it shall be applied as near as possible to the
origin of the dust, fume or other impurity.
• Artificial humidification
In respect of all factories in which the humidity of the air is
artificially increased, the ![State] Government may make
rules, -
• prescribing standards of humidification;
• regulating the methods used for artificially increasing the
humidity of the air;
• directing prescribed tests for determining the humidity of the
air to be correctly carried out and recorded;
• prescribing methods to be adopted for securing adequate
ventilation and cooling of the air in the workrooms.
Overcrowding
• No room in any factory shall be overcrowded to an extent
injurious to the health of the workers employed therein.
• Each worker should be provided with at least 14.2 cubic
meters of space

Lighting
In every part of a factory where workers are working or passing
there shall be provided and maintained sufficient and suitable
lighting, natural or artificial, or both.
Drinking water
• In every factory effective arrangements shall be made to provide
and maintain at a suitable points conveniently situated for all
workers employed therein a sufficient supply of wholesome
drinking water.
• All such points shall be legibly marked "drinking water“ in a
language understood by a majority of the workers employed in
the factory and no such points shall be situated within [six
meters of any washing place, urinal, latrine, spittoon, open drain
or any other source of contamination] unless a shorter distance
is approved in writing by the Chief Inspector.
• In every factory wherein more than two hundred and fifty
workers are ordinarily employed, provisions shall be made for
cooling drinking water during hot weather by effective means
and for distribution thereof.
• Latrines and urinals
• Spittoons
 SAFETY OF WORKERS..

• Fencing of machinery
• Machines in motions
there should be examination of machines in motion.
No women or child should be allowed to work on prime
mover etc. when it is in motion.
• Employment of young persons on dangerous
machines
no young person should be allowed to work on
dangerous machines (unless he has been trained,
and is under supervision).
• Self acting machines
make sure that no person should walk in a space where self
action machines are in motion.
• Precautions against Dangerous Fumes and Gases
• Precaution in case of fire
• Excessive weights
• Protection of eyes
• Explosive or inflammable dust, gas, etc.
• Safety officers
 Provisions relating to hazardous process

• Constitution of site appraisal Committee

a) The chief Inspector
b) Representatives of the Central and State Board for the
prevention and control of water pollution
c) Representative of the Central and State Board for the
prevention and control of air pollution
d) Representative of the Dept of environment in the state
e) Representative of the Meteorological Dept
f) An expert in the field of occupational health
g) Representative of the Town planning department of
state
h) A Scientist having specialized knowledge of the
hazardous process
g) A representative of local authority
i) Not more than three other persons as deemed fit by the
state govt
 Compulsory disclosure of information by the occupier

• The occupier of every factory involving a hazardous process

shall disclose all information regarding dangers, including
health hazards and the measures to overcome such hazards,
to the workers employed in the factory, the Chief Inspector,
the local authority within whose jurisdiction the factory is
situated and the general public in the vicinity.
• The occupier shall, at the time of registering the factory
involving a hazardous process lay down a detailed policy with
respect to the health and safety of the workers employed
therein and intimate such policy to the Chief Inspector and
the local authority
• Every occupier shall, with the approval of the Chief Inspector,
draw up an onsite emergency plan and detailed disaster
control measures for his factory and make known to the
workers employed therein and to the general public living in
the vicinity of the factory the safety measures required to be
taken in the event of an accident taking place.
• Where any occupier of a factory contravenes the above
provisions, the license issued shall be liable for cancellation.
Specific responsibility of the occupier in relation
to hazardous processes
• Maintain accurate up-to-date health records
• Appoint persons who posses qualifications and
experience in handling hazardous substances and are
competent to supervise such handling within the factory
• Provide for medical examination of every worker
• Workers participation in safety management
• Right of workers to warn about imminent danger
 Welfare
• Washing facilities
• Facilities for storing and drying clothing
• Facilities for sitting
• First-aid appliances
• In every factory wherein more than five hundred
workers are there shall be provided and maintained an
ambulance room, containing the prescribed equipment
and in the charge of such medical and nursing staff
• Canteens
The State Government may make rules requiring that in
any specified factory wherein more than two
hundred and fifty workers are ordinarily employed,
a canteen or canteens shall be provided and
maintained by the occupier for the use of the
workers.
• Shelters, rest-rooms and lunch-rooms

In every factory wherein more than one hundred and

fifty workers are ordinarily employed adequate and
suitable shelters or rest-rooms and a suitable lunch-
room, with provision for drinking water, where
workers can eat meals brought by them, shall be
provided and maintained for the use of the workers :
Crèches
• In every factory wherein more than thirty women
workers are ordinarily employed there shall be provided
and maintained a suitable room or rooms for the use of
children under the age of six years of such women.
• Such rooms shall provide adequate accommodation,
shall be adequately lighted and ventilated, shall be
maintained in a clean and sanitary condition and shall be
under the charge of women trained in the care of
children and infants.
Welfare Officers
• In every factory wherein five hundred or more workers
are ordinarily employed, the occupiers shall employ in
the factory welfare officers as may be prescribed.
 Working Hours of Adults

Weekly hours 
• Weekly hours not more than 48

• Daily hours, not more than 9 hours.

• Intervals for rest at least ½ hour on working for 5 hours

• Spread over not more than 10½ hours

• Overlapping shifts prohibited

• Extra wages for overtime double than normal rate of
wages
•
Restrictions on employment of women before 6AM and be
• Notice of periods of work for adults
• There shall be displayed and correctly maintained in
every factory, a notice of periods of work for adults,
showing clearly for every day the periods during which
adult workers may be required to work.
• Register of adult workers
• The manager of every factory shall maintain a register of adult
workers, to be available to the Inspector at all times during
working hours, or when any work is being carried on in the
factory, showing :-
• the name of each adult worker in the factory ;
• the nature of his worker ;
• the group, if any, in which he is included;
• where his group works on shift, the relay to which he is
allotted ; and
• such other particulars as may be prescribed :
Working hour for children
• Child below age of 14 cannot be employed.
• Child above 14 but below 15 years of age can be
employed only for 4.5 hours per day.
• He should be certified fit by a certifying surgeon.
• He cannot be employed during night between 10 pm to
6 am.
• A person above 15 but below 18 years of age is termed
as adolescent‘. He can be employed as an adult if he has
a certificate of fitness for a full day's work from certifying
surgeon.
• Register of child workers
 • Annual Leave with Wages
• A worker having worked for 240 days @ one
day for every 20 days and for a child one day for
working of 15 days.
• Accumulation of leave for 30 days.
Notice of certain accident
• Where in any factory an accident occurs which causes
death, or which causes bodily injury by reason of which
the person injured is prevented from working for a
period of forty-eight hours or more immediately
following the accident, or which is of such nature as may
be prescribed in this behalf, the manager of the factory
shall send notice thereof to such authorities, in such form
and within such time, as may be prescribed.
• Notice of certain dangerous occurrences
• Notice of certain diseases
• OFFENCE • PENALTIES

• ·   For contravention of the Provisions of • ·   Imprisonment upto 2 years or fine upto
the Act or Rules Rs.1,00,000 or both
• ·   On Continuation of contravention • ·   Rs.1000 per day

• ·   On contravention of Chapter IV • ·   Not less than Rs.25000 in case of

pertaining to safety or dangerous death.
operations. • ·   Not less than Rs.5000 in case of serious
• ·  Subsequent contravention of some • injuries.
·   Imprisonment upto 3 years or fine not
provisions less than Rs.10, 000 which may extend to
Rs.2, 00,000.
• ·   Obstructing Inspectors • ·   Imprisonment upto 6 months or fine
upto Rs.10, 000 or both.

• ·   Wrongful disclosing result pertaining to • ·   Imprisonment upto 6 months or fine
results of analysis. upto Rs.10, 000 or both.

• ·   For contravention of the provisions of • ·   Imprisonment upto 7 years with fine
Sec.41B, 41C and 41H pertaining to upto Rs.2, 00,000 and on continuation fine
compulsory disclosure of information by @ Rs.5, 000 per day.
occupier, specific responsibility of occupier •   Imprisonment of 10 years when
or right of workers to warn imminent contravention continues for one year.
danger.
 THE CONTRACT LABOUR
( REGULATION & ABOLITION ) ACT, 1970
• PREAMBLE/OBJECTIVE
• AN ACT TO -

 regulate the employment of contract

labour in certain establishments
 APPLICABLITY
• Every establishment where 20 or more workmen
are or were employed as contract labour on any
day in last 12 months

• Every contractor who employs or who employed

20 or more workmen on any day in last 12 months
NOT APPLICABLE -

• if the work is of intermittent or casual

nature

• Explanation.-- For the purpose of this sub-section,

work performed in an establishment shall not be
deemed to be of an intermittent nature--
• (i) if it was performed for more than one hundred and
twenty days in the preceding twelve months, or
• (ii) if it is of a seasonal character and is performed for
more than sixty days in a year.
 Definition
• "contractor",
• in relation to an establishment, means a person who
undertakes to produce a given result for the
establishment, other than a mere supply of goods
of articles of manufacture to such establishment,
through contract labour or who supplies contract
labour for any work of the establishment and
includes a sub-contractor
• Contract Labour –
• A workman hired in or in connection with
work of an establishment, by or through a
contractor, with or without the knowledge
of principal employer.
• Principal Employer –

 In relation to any Govt. Office or Dept. or a

Local Authority, head of that Office/Dept.
or
such other Officer as the Govt. or the Local
Authority may specify in this behalf.
 In case of factory, the owner or occupier of
the factory, & manager of the factory, if any
so named under the Factories Act, 1948.
 In case of mine, owner or agent of mine &
the manager of the mine, if any so named.
 In any other estt., any person responsible
for the supervision & control of the estt.
 REGISTRATION OF ESTABLISHMENT

 Principal Employer of an establishment to make an

application within stipulated time frame, to the
Registering Officer (Asst. Comm.of Labour)

 Revocation of RC in certain cases -

 Misrepresentation or suppression of any
material fact
 If the RC becomes useless or ineffective &
therefore, requires to be revoked
 Effect of Non-Registration -
If -
 the estt. has not been registered under the Act
within the stipulated time ; or

 the RC has been revoked,

the principal employer of the estt. to which this

Act applies, shall not employ contract labour
after expiry of period or after the revocation of
RC.
 LICENSING OF CONTRACTORS

 No Contractor shall undertake or execute any work

thro’ contract labour except under and in accordance
with a license issued by the Licensing Officer.

Contractor to make an application within stipulated

time frame, to the Licensing Officer.

 A License shall contain -

 Such conditions including, in particular, hours of
work, fixation of wages and other essential
amenities in respect of contract labour.
 Welfare and Health of contract
labour

 Canteens in organisations employing 100 or more

employees
 Rest Rooms – where in contract labour required to
halt at night in connection with the work of
establishment
 Other facilities - Drinking Water, Latrines & Urinals,
Washing facilities
 First Aid facilities
 Creches
 Responsibility for payment of wages

• A contractor shall be responsible for payment of wages

to each worker employed by him as contract labour
• Every principal employer shall nominate a
representative duly authorized by him to be present at
the time of disbursement of wages by the contractor and
it shall be the duty of such representative to certify the
amounts paid as wages
• It shall be the duty of the contractor to ensure the
disbursement of wages in the presence of the authorized
representative of the principal employer.
• In case the contractor fails to make payment of wages
• within the prescribed period or makes short payment,
then the principal employer shall be liable to make
payment of wages in full or the unpaid balance due, as
the case may be, to the contract labour employed by the
contractor and recover the amount so paid from the
contractor either by deduction from any amount payable
to the contractor under any contract or as a debt payable
by the contractor.
 Registers and Records to be maintained

• Abstract of the Act

• Wage Register
• OT Register
• Fine Register
• Damage Register
• Advance Register
• Employment Card
 Penalties

• Obstructions - punishable with imprisonment for a term

which may extend to three months, or with fine which
may extend to five hundred rupees, or with both
• Refuses to produce on the demand of an inspector
any register or other document-punishable with
imprisonment for a term which may extend to three
months, or with fine which may extend to five hundred
rupees, or with both.
• Contravention of provisions regarding
employment of contract labour - shall
be punishable with imprisonment for a
term which may extend to three months, or
with fine which may extend to one
thousand rupees, or with both
Video
The Trade Unions Act, 1926
Preamble
‘An Act to provide for the registration of Trade Unions
and in certain respects to define the law relating to
registered Trade Unions.’

It extends to the whole of India.

Section 2: Definitions

Appropriate Government:
For the trade unions whose objects are not confined to one state,
the appropriate government will be the Central Government, for
others it’ll be the State Government.

Trade dispute:
It means any dispute between employers and workmen or between
workmen and workmen, or between employers and employers
which is connected with the employment, or non-employment or the
conditions of labour, of any person.

Workmen:
Means all persons employed in trade or industry whether or not in
the employment of the employer with whom the trade dispute arises.
 Trade Union:
It means any combination whether temporary or permanent, formed
primarily for the purpose of

o regulating the relations between workmen and employers or between

workmen and workmen, or between employers and employers,

o for imposing restrictive condition on the conduct of any trade or

business,

o It can include any federation of two or more Trade Unions.

Registration of Trade Unions
Section 3: Appointment of Registrars

The appropriate Government appoints a person to be the Registrar

of Trade Unions for each State. It may also appoint Additional and
Deputy Registrars of Trade Unions.
Section 4: Mode of registration

Any seven or more members of a Trade Union may apply for

registration of the Trade Union under this Act:

– by subscribing their names to the rules of the Trade Union

– and by complying with the provisions of this Act with respect to

registration.

An application for the registration of a Trade Union shall not become

invalid merely for the reason that at any time after the date of the
application, but before the registration of the Trade Union some of
the applicants (not exceeding half of the total number of the persons
who made the application) have ceased to be members of the Trade
Union.
Section 5: Application for registration

Application for registration of a Trade Union shall be made to the

Registrar and shall be accompanied by:

– copy of the rules of the Trade Union

– statement of the following particulars, namely:-
• The names, occupations and addresses of the members making
the application.
• The name of the Trade Union and the address of its head office.

Where a Trade Union has been in existence for more than one year
before the making of an application for its registration it needs to
submit a statement of the assets and liabilities held by it.
Section 6: Provisions to be contained in the rules of
Trade Union
A Trade Union shall not be entitled to registration under this
Act, unless the executive is constituted in accordance with the
provisions of this Act, and the rules provided for following
matters:
• the name of the Trade Union
• the object for which the Trade Union has been established
• the purposes for which the general funds of the Trade Union shall be
applicable.
• the maintenance of a list of the members of the Trade Union and
adequate facilities
• the admission of members
• the conditions under which any member shall be entitled to any
benefit or any fine or forfeiture may be imposed on the members;
• the manner in which the rules shall be amended, varied or rescinded;
• the manner in which the members of the executive and the other of
the Trade Union shall be appointed and removed
Section 7: Power to call for further particulars and
to require alteration of name
• The Registrar can call for further information for the purpose
of checking the compliance of the application with respect to
Sec 5 and Sec 6 of the Trade Union Act.

– He may refuse to register the Trade Union until such information is

supplied.

• If the name under which a Trade Union is proposed to be

registered is identical or it nearly resembles with that of any
other existing Trade Union, the Registrar shall require the
persons applying for registration to alter the name of the
Trade Union stated in the application.
Section 8: Registration

The Registrar, on being satisfied that the Union has complied

with all the requirements of this Act in regard to registration,
shall register the Trade Union.

Note:
This section is mandatory. The Registrar cannot refuse to
register a Trade Union if the application for registration
complies with the technical requirement as laid down in this
Act.
Section 9: Certificate of Registration

The Registrar registering a Trade Union under Section 8, shall

issue a certificate of registration which shall be conclusive that
the Trade Union has been duly registered under this Act.
Section 10: Cancellation of Registration

A certificate of registration of a Trade Union may be withdrawn or cancelled

by the Registrar:

– On the application of the Trade Union

• if the Registrar is satisfied that the certificate has been obtained by fraud
or mistake, or that the Trade Union has ceased to exist or has willfully
and after notice from the Registrar contravened any provision of this Act
or allowed any rule to continue in force which is inconsistent with any
such provision, or has rescinded any rule providing for any matter
provision for which is required by section 6:
• PROVIDED that not less than two months' previous notice in writing
specifying the ground on which it is proposed to withdraw or cancel the
certificate shall be given by the Registrar to the Trade Union before the
certificate is withdrawn or cancelled otherwise than on the application of
the Trade Union.
Section 11: Appeal

Any person aggrieved by any refusal of the Registrar to

register a Trade Union or by the withdrawal or cancellation of
a certificate of registration may appeal to the prescribed
courts.

The Appellate Court may dismiss the appeal, or pass an order

directing the Registrar to register the Union and to issue a
certificate of registration or setting aside the order for
withdrawal or cancellation of the certificate, as the case may
be, and the registrar shall comply with such order.
Section 12: Registered office

All communications and notice to a registered Trade

Union may be addressed to its registered office.

– Notice of any change in the address of the head

office shall be given within fourteen days of such
change to the Registrar in writing.
Section 13: Incorporation of registered Trade
Unions
Every registered Trade Union:

– shall be a body corporate by the name under which it is registered

– shall have perpetual succession and a common seal

– power to acquire and hold both movable and immovable property

– it can, by the said name sue and be sued.

Section 14: Certain Acts not to apply to registered
Trade Unions

• The Societies Registration Act, 1863.

• The Co-operative Societies Act, 1912.

• The Companies Act, 1956

Section 15: Objects on which general funds may
be spent

• The payment of salaries, allowances and expenses to office bearers

of the Trade Union.

• The payment of expenses for the administration of the Trade Union

including audit of the accounts of the general funds.

• The compensation to members for loss arising out of trade disputes;

• Allowance to members or their dependants on account of death, old

age, sickness, accidents or unemployment of such members;

• The provision of educational, social or religious benefits for

members or for the dependants of members;
• The upkeep of a periodical published mainly for the purposes of
discussing questions affecting employers or workmen;

• Any other object notified by the appropriate Government in the

official Gazette.
Section 16: Constitution of a separate fund for political
purposes
A registered Trade Union may constitute a separate fund, from which
payments may be made, for the promotion of the civic and political
interest of its members.
The objects are:
• the payment of any expenses incurred, either directly or indirectly, by
a candidate or prospective candidate for election as a member of any
legislative body
• the holding of any meeting or the distribution of any literature or
documents in support of any such candidate or prospective
candidate; or
• the maintenance of any person who is a member of any legislative
body or
• the holding of political meetings of any kind, or the distribution of
political literature or political documents of any kind.
– No member shall be compelled to contribute to
the fund.

– Member who does not contribute to the said fund

shall not be excluded from any benefits of the
Trade Union

– Contribution to the said fund shall not be made a

condition for admission to the Trade Union.
Section 17: Criminal conspiracy in trade disputes

No officers or members of a registered Trade union shall be

liable to punishment under sub-section (2)of Section 120-B of
the Indian Penal Code, in respect of any agreement made
between the members for the purpose of furthering any such
object of the Trade Union as is specified in Section 15 unless
the agreement is an agreement to commit an offence.
Section 18: Immunity from civil suit to certain cases

• No suit or other legal proceeding shall be maintainable in any

Civil Court against any registered Trade Union or any member
in respect of any act done in contemplation or furtherance of
a trade dispute to which a member of the Trade Union is a
party on the ground only that such act induces some other
person to break a contract of employment, or that it is in
interference with the trade, business or employment of some
other person or with the right of some other person to
dispose of his capital of his labour as he wills.
Section 20: Right to inspect books of Trade Union

The account books of a registered Trade Union and the list

of members shall be open to inspection by any member
of the Trade Union.
Section 21: Rights of minors to membership of
Trade Union

Any person who has attained the age of fifteen years

may be a member of registered Trade Union subject to
any rules of the Trade Union to the contrary.
Section 21A: Disqualification of office bearers of
Trade Union

A person shall be disqualified for being chosen as, and for

being a member of the executive or any other office-bearer or
registered Trade Union if-

– He has not attained the age of eighteen years;

– He has been convicted by a Court in India of any
offence involving moral turpitude and sentenced
to imprisonment, unless a period of five years has
elapsed since his release.
Section 23: Change of name

Any registered Trade Union may, with the consent of not less
than two-thirds of the total number of its members and
subject to the provisions of Section 25 change its name.
Section 24: Amalgamation of Trade Union

Any two or more registered Trade Unions may become

amalgamated together as one Trade Union provided that the
votes of at least one-half of the members of each such Trade
Union is recorded, and that at least sixty percent of the votes
recorded are in favour of the proposal.
Section 25: Notice of change of name or
amalgamations
Notice in writing of every change of name and every amalgamation
shall be sent to the Registrar, signed,

– in the case of change of name, by the Secretary and by seven members

of the Trade Union changing its name

– in the case of an amalgamation by the Secretary and by seven

members of each and every Trade Union which is amalgamating.
Section 26: Effects of change in name and of
amalgamation
The change in the name of a registered Trade Union shall not effect

– any rights or obligation of the Trade Union

– or render defective any legal proceeding by or against the Trade Union,

– legal proceeding may be continued in its new name.

An amalgamation of two or more registered Trade Unions shall not

prejudice any right of any such Trade Unions or any right of a
creditor or any of them.
Section 27: Dissolution

When a registered Trade Union is dissolved, notice for the

dissolution signed by seven members and by the Secretary of the
Trade Union shall, within fourteen days of the dissolution, be sent
to the Registrar.

Where the dissolution of a registered Trade Union has been

registered and the rules of the Trade Union do not provide for the
distribution and funds, the Registrar shall divide the funds amongst
the member in such manner as may be prescribed.
Section 28: Returns

Every registered Trade Union is required to send a general

statement, of all receipts and expenditure audited in the prescribed
manner, to the Registrar annually on or before such date as may be
prescribed of during the year.
Regulations
Section 29: Power to make regulations

The appropriate Government may make regulations for the purpose

of carrying into effect the provisions of this Act. Such regulations
may provided for all or any of the following matters:

– The manner in which Trade Union and the rules of Trade Unions shall
be registered and the fees payable on registration;

– The transfer of registration in the case of any registered Trade Union

which has changed its head office from one State to another;

– The manner in which, and the qualifications of persons by whom,

accounts of registered Trade Unions or of any class of such Unions
shall be audited;
 Sec 31-PENALTIES AND PROCEDURE

• Failure to submit returns

• Supplying false information regarding Trade Unions
 Recognition of Trade Union
• Conditions for Recognition
Trade Unions (Amendment) Act, 1947, s. 25D
• All its ordinary members are workmen employed in the
same industry or in industries closely allied to or
connected with another;
• It is representative of all the workmen employed by the
employer in that industry or those industries
• that its rules do not provide for the procedure for
declaring a strike;
• that its rules provide that a meeting of its executive will
be held at least once in every six months; and
• That it is a registered trade union and that it has
complied with all provisions of this Act.
 Rights of Recognised TU

• To raise issue and enter into collective agreements with

employers on general questions concerning terms of
employment and conditions of service of workers
• To collect membership fees/subscriptions payable by
members to the union
• To put up a notice board in the premises of the
undertaking in which its members are employed and affix
notices relating to meeting, statements of accounts of its
income and expenditure and other announcements which
are not abusive, indecent or otherwise contrary to the
Code;
For the purpose of prevention or settlement of an industrial
dispute:

• (a) to hold discussion with the employees who are

members of the union at a suitable place or places within
the premises of office/factory/establishment as mutually
agreed upon;
• (b) to meet and discuss with an employer or any person
appointed by him for the purpose, the grievance of its
members employed in the undertaking; and
• (c) to inspect to prior arrangement, in an undertaking,
any place where any member of the union is employed;
• To nominate its representatives on the grievance
committee constituted under the grievance procedure in
an establishment;
• To nominate its representative on joint management
councils, and committees for instance production
committee, welfare committee, canteen committee,
house allotment committees set up by managements
• ..\..\..\..\My documents\My Videos\YouTub
e_-_Charlie_Chaplin_-_Modern_times_par
t_1_9_-_Mozilla_Firefox.flv
THE INDUSTRIAL DISPUTES
ACT, 1947
 Objective
• “An Act to make provision for the investigation and
settlement of industrial disputes”
 Definitions
• “Industry”
means any systematic activity carried on by co-operation
between an employer and his workmen(whether such
workmen are employed by such employer directly or by
or through any agency, including a contractor) for the
production ,supply or distribution of goods or services
with a view to satisfy human wants or wishes (not being
wants or wishes which are merely spiritual or religious
in nature), whether or not,-
• any capital has been invested for the purpose of
carrying on such activity; or
• such activity is carried on with a motive to make any
gain or profit,
but does not include-
• agricultural operation
• hospitals or dispensaries
• -educational, scientific, research or training institutions;
• institutions owned or managed by organisations wholly or
substantially engaged in any charitable, social or
philanthropic service
• khadi or village industries
• any activity, being a profession practised by an individual
or body or individuals, if the number of persons employed
by the individual or body of individuals in relation to such
profession is less than ten; or
• any activity, being an activity carried on by a co-operative
society or a club
The triple test
• Systematic Activity
• Cooperation between employer and
employee
• Production and/ or distribution of goods
and services calculated to satisfy human
wants and wishes
• “Industrial dispute”
means any dispute or difference between employers
and employers, or between employers and workmen,
or between workmen and workmen, which is
connected with the employment or non-employment
or the terms of employment or with the conditions of
labour, of any persons;
“Lay-off”
• means the failure, refusal or inability of an employer
on account of shortage of coal, power or raw
materials or the accumulation of stocks or the
breakdown of machinery [or natural calamity or for
any other connected reason] to give employment to
a workman whose name is borne on the muster rolls
of his industrial establishment and who has not been
retrenched.
“Lock-out”
• means the temporary closing of a place of
employment, or the suspension of work, or the
refusal by an employer to continue to employ any
number of persons employed by him;

“Closure’
• means the permanent closing down of a place of
employ or part thereof
“Retrenchment”
• means the termination by the employer of the service of a
workman for any reason whatsoever, otherwise than as a
punishment inflicted by way of disciplinary action but does not
include-
• (a) Voluntary retirement of the workman; or
• (b) Retirement of the workman on reaching the age of
Superannuation if the contract of employment between the
employer and the workman concerned contains a stipulation in
that behalf; or
• (bb) Termination of the service of the 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; or]
• (c) Termination of the service of a workman on the ground of
continued ill-health;]
“Settlement”
means a settlement arrived at in the course of
conciliation proceeding and includes a written
agreement between the employer and workmen
arrived at otherwise than in the course of
conciliation proceeding where such agreement has
been signed by the parties thereto in such manner
as may be prescribed and a copy thereof has been
sent to the appropriate Government and the
conciliation officer
• “Strike”

• TATA

• means a cessation of work by a body of persons

employed in any industry acting in combination, or a
concerted refusal, or a refusal, under a common
understanding of any number of persons who are or
have been so employed to continue to work or to
accept employment;
• “Workman”
• means any person (including an apprentice)
employed in any industry to do any manual,
unskilled, skilled, technical, operational, clerical or
supervisory work for hire or reward, whether the
terms of employment be express or implied, and for
the purposes of any proceeding under this Act in
relation to an industrial dispute, includes any such
person who has been dismissed, discharged or
retrenched in connection with, or as a consequence
of, that dispute, or whose dismissal, discharge or
retrenchment has led to that dispute,
but does not include any such person-

• (i) Who is subject to the Air Force Act, 1950 (45of l950),or
the Army Act, 1950 (46 of 1950), or the Navy Act, 1957 (62
of 1957); or
• (ii) Who is employed in the police service or as an officer or
other employee of a prison; or
• (iii) Who is employed mainly in a managerial or
administrative capacity; or
• (iv) Who, being employed in a supervisory capacity, draws
wages exceeding ten thousand rupees per mensem or
exercises, either by the nature of the duties attached to the
office or by reason of the powers vested in him, functions
mainly of a managerial nature
AUTHORITIES UNDER THE
ACT
Works Committee. –
• In the case of any industrial establishment in which
one hundred or more workmen are employed or
have been employed on any day in the preceding
twelve months, employer to constitute in the
prescribed manner a Works Committee consisting of
representatives of employers and workmen
engaged in the establishment
 Duties of works committee
• To promote the good relation between employer and
employee
• To achieve above object, it is their duty to comment
upon the matters of common interest
• Creating a sense of partnership
• Conciliation Officer
The appropriate Government may, appoint such number
of persons as it think--, fit, to be conciliation officers,
charged with the duty of mediating in and promoting
the settlement of industrial disputes
Duties :
 To hold conciliation proceedings.
 To investigate the dispute
 To send a report and memorandum of settlement
to appropriate government
 To send a full report
Powers :
Power to enter premises
Power to call for and inspect documents.
Boards of Conciliation. –
• The appropriate Government may constitute a
Board of Conciliation for promoting the settlement of
an industrial dispute.
• A Board shall consist of a chairman and two or four
other members, as the appropriate 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
Courts of Inquiry. –
• It shall inquire and make a report ordinarily within a
period of six months from the commencement of
inquiry
Duties :
 To inquire into the matters referred to it and report
thereon
 To stand by the principles of fairplay and justice
Powers :
 Power to enter premises
 Power of civil court
Labour Court - It will be presided over by Presiding
Officer
Powers of Labour Court
• Interpretation of Standing Orders
• Violation of Standing Orders
• Discharge or dismissal of a workman
• Withdrawal of any customary concession or privilege
• Illegality or otherwise of a strike or lock-out
• Other matters which are not under Industrial Tribunal
Tribunal
• The tribunal will be presided over by Presiding Officer
Powers
• Wages, including period and mode of payment
• Compensatory and other allowances
• Hours of work and rest intervals
• Leave with wages and holidays
• Bonus, profit sharing, provident fund and gratuity
• Shift working changes
• Classification by grades
• Rules of discipline
• Rationalization and retrenchment of workmen.
National Tribunal…
• National Tribunal is formed by Central
Government for adjudication of industrial
disputes of national importance or where
industrial establishments situated in more
than one States are involved
 GRIEVANCE REDRESSAL MACHINERY
• Every industrial establishment employing fifty or
more workmen shall have one or more Grievance
Redressal Committee for the resolution of disputes
arising out of individual grievances.
• The Grievance Redressal Committee shall consist of
equal number of members from the employer and
the workmen.
• The chairperson of the Grievance Redressal
Committee shall be selected from the employer and
from among the workmen alternatively on rotation
basis every year
• The total number of members of the Grievance Redressal
Committee shall not exceed more than six:
• Provided that there shall be, as far as practicable, one
woman member if the Grievance Redressal Committee
has two members and in case the number of members are
more than two, the number of women members may be
increased proportionately.
• The Grievance Redressal Committee may complete its
proceedings within forty-five days on receipt of a written
application by or on behalf of the aggrieved party.
• The workman who is aggrieved of the decision of the
Grievance Redressal Committee may prefer an appeal to
the employer against the decision of Grievance Redressal
Committee and the employer shall, within one month from
the date of receipt of such appeal, dispose off the same
and send a copy of his decision to the workman
concerned.
 Notice of change

NOTICE OF CHANGE IN CONDITIONS OF SERVICE

 No employer who proposes to effect any change in the

conditions of service applicable to any workmen in
respect of any matter specified in the fourth schedule
shall effect such change.
(a) Without giving to workmen likely to be affected by such
change a notice in the prescribed manner of the nature
of the change proposed to be effected.
(b) Within 21 days of giving such notice sec(9)
Conditions of Service for Change of which
Notice is to be given
• Wages, including the period and mode of payment;
• Contribution paid, or payable, 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; 
• Compensatory and other allowances;
• Hours of work and rest intervals; 
• Leave with wages and holidays;
• Starting alteration or discontinuance of shift working
otherwise than in accordance with standing orders;
• Classification by grades;
• Withdrawal of any customary concession or privilege or
change in usage;
• Introduction of new rules of discipline, or alteration of existing
rules, except in so far as they are provided in standing
orders;
• Rationalisation, standardisation or improvement of plant or
technique which is likely to lead to retrenchment of workmen;
• 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, 1[not occasioned by
circumstances over which the employer has no control].]
 How disputes are raised and settled
• Industry
Employer Workmen
Dispute
Mutual settlement Fail to settle

Conciliation officer/ Board

Fails
Succeeds(Settlement)
Govt

Does not refer Refers for

Adjudication
Parties free to Lock out or strike
Labour court Tribunal National
Tribunal

Award
(Binding for at least one year)
STRIKES AND LOCK-OUTS
Prohibition of strikes and lock-outs

No person employed in a public utility service shall go on strike, in

breach of contract-

• (a) Without giving to the employer notice of strike, as hereinafter

provided, within six weeks before striking;
• (b) Within fourteen days of giving such notice; or
• (c) Before the expiry of the date of strike specified in any such
notice as aforesaid; or
• (d) During the pendency of any conciliation proceedings before
a conciliation officer and seven days after the conclusion of such
proceedings.
No employer carrying on any public utility service
shall lock-out any of his workman-
• Without giving them notice of lock-out as
hereinafter provided, within six weeks before
locking-out ; or
• Within fourteen days of giving such notice; or
• Before the expiry of the date of lock-out specified in
any such notice as aforesaid ; or
• During the pendency of any conciliation
proceedings before a conciliation officer and seven
days after the conclusion of such proceedings.
General prohibition of strikes and lock-outs. –
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 Board
and seven days after the conclusion of such proceedings;
• (b) During the pendency of proceedings before a Labour Court,
Tribunal or National Tribunal and two months, after the conclusion
of such proceedings
• (bb) During the pendency of arbitration proceedings before an
arbitrator and two months after the conclusion of such proceedings,
• (c) 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.
 LAY-OFF AND RETRENCHMENT
Lay off provisions will not applicable
• (a) To industrial establishments in which less than
fifty workmen on an average per working day have
been employed in the preceding calendar month; or
• (b) To industrial establishments which are of a
seasonal character or in which work is performed
only intermittently.
Right of workmen laid-off for compensation

• Whenever a workman (other than a badli workman or a casual

workman) whose name is borne on the muster rolls of an
industrial establishment and who has completed not less than
one year of continuous service under an employer is laid off,
whether continuously or intermittently, he shall be paid by the
employer for all days during which he is so laid-off, except for
such weekly holidays as may intervene, compensation which
shall be equal to fifty per cent, of the total of the basic
wages and dearness allowance

• Provided that if during any period of twelve months, a workman

is so laid-off for more than forty-five days, no such
compensation shall be payable
Workmen not entitled to compensation in
certain cases
• If he refuses to accept any alternative employment in
the same establishment from which he has been laid-
off, or in any other establishment belonging to the
same employer situate in the same town or village or
situate within a radius of five miles from the
establishment to which he belongs
• If he does not present himself for work at the
establishment at the appointed time during normal
working hours at least once a day;
• If such laying-off is due to a strike or slowing-down of
production on the part of workmen in another part of
the establishment
 Conditions precedent to
retrenchment of workmen
No workman employed in any industry who has been in continuous
service for not less than one year under an employer shall be retrenched
by that employer until-

• The workman has been given one month’s notice in writing indicating
the reasons for retrenchment and the period of notice has expired, or the
workman has been paid in lieu of such notice, wages for the period of
the notice;

• The workman has been paid, at the time of retrenchment, compensation

which shall be equivalent to fifteen days’ average pay for every
completed year of continuous service

• Notice in the prescribed manner

 Notice to be given of intention to close
down any undertaking
• An employer who intends to close down an undertaking
shall serve, at least 60 days before the date on which the
intended closure is to become effective, a notice, in the
prescribed manner, on the appropriate Government stating
clearly the reasons for the intended closure of the
undertaking:
Provided that nothing in this section shall apply to-
• (a) An undertaking in which-
• (i) Less than fifty workmen are employed, or
• (ii) Less than fifty workmen were employed on an average
per working day in the preceding twelve months,
• (b) An undertaking set up for the construction of buildings,
bridges, roads, canals, and dams or for other construction
work or project.
 Compensation to workmen in case of
closing down of undertakings
• The workman has been given one month’s notice in writing
indicating the reasons for retrenchment , or the workman has
been paid in lieu of such notice, wages for the period of the
notice;

• The workman has been paid, at the time of retrenchment,

compensation which shall be equivalent to fifteen days’ average
pay for every completed year of continuous service

• Provided that where the undertaking is closed down on account

of unavoidable circumstances beyond the control of the employer,
the compensation to be paid to the workman, shall not exceed his
average pay for three months
Procedure for retrenchment
• ‘First come last go’ and ‘last come first go’
• Maintenance of Muster roll
• The workman must be a workman as per the Act
• He should be an Indian citizen
• The workman should be employed in an
establishment which is an industry as per the Act
• The workman should belong to a particular category
of workman
• There should be no agreement contrary to the
principle of ‘last come first go’
• Re-employment of retrenched workmen
 UNFAIR LABOUR PRACTICES
• Prohibition of unfair labour practice
Penalty for committing unfair labour practices.
• Punishable with imprisonment for a term, which may
extend to six months or with fine which may extend
to one thousand rupees or with both.
 • PENALTIES
• Penalty for illegal strikes and lock-outs-
1 month imprisonment or fine up to Rs. 50 or both
• Penalty for instigation
6 months imprisonment or Rs. 1000 fine or both
• Penalty forgiving financial aid to illegal strikes and lock-
outs
6 months imprisonment or Rs. 1000 fine or both
• Penalty for breach of settlement or award
6 months imprisonment or fine or both
• Penalty for disclosing confidential information
6 months imprisonment or Rs. 1000 fine or both
• Penalty for closure without notice
6 months imprisonment or Rs. 5000 fine or both