E/IRM Notes 2022 T5
I. Discipline & Disciplinary Action
Discipline means orderly behaviour - It means voluntary and willing compliance of rules and regulations
and instructions and also development of right habits of conduct in work with others at the work-place.
In most of the cases, indiscipline of a worker is the expression of his reaction to his environment. Usually
the causes of indiscipline are:
(a) Lack of awareness of Company’s rules and regulations;
(b) False promises made by superiors;
(c) Absence of any procedure to handle grievances;
(d) No action taken when required;
(e) Personal frustrations and misunderstandings.
There could be many other different reasons for indiscipline depending upon individual differences.
Since any case of indiscipline is basically a behavioural problem, it is necessary that before taking any
punitive action, all efforts should be made to improve the behaviour of the employee by correcting him
through education, counselling, persuasion and coutioning. However, if all the efforts to improve the
employee fail, the Supervisor/Manager should never hesitate to reprimand the employee and, if the
misconduct is serious or has been repeated, to report the matter to the superiors for appropriate
disciplinary action.
1.1 Misconduct: means improper conduct or wrongful behavior to decide whether a particular act of
misconduct or not, we have to keep in mind, the following three documents:
(a) Conduct, Discipline,
(b) Service Rules
(c) Contract/Agreement of Appointment or Appointment letter.
Any act committed by an employee in breach of Service Rules to the extent they are applicable to him,
will be considered an act of misconduct. Hence, referring to Service Rules is relevant in this context.
Complaint is the starting point of any disciplinary action. For taking disciplinary action against any
employee for having committed an act of misconduct, the management should invariably get a specific
written complaint. Complaint is nothing but a clear, sequential narration of the facts of incidence of
indiscipline by the complainant, in the form of a report to his superior. Since any disciplinary action may
go hay-way if the complaint is not proper, every complainant should bear in mind the following:
(a) Do not rely on memory. Reduce to writing whatever has happened, immediately.
(b) Submit your complaint in the shape of report of misconduct without any delay to superiors.
(c) Avoid dictating the complaint to somebody else.
(d) Avoid type-writing the complaint, if possible. It is advisable to send it in hand writing.
(e) Do not add your impressions or guesses but narrate the actual facts.
(f) Take written statements of all whoever has any facts relating to the complaint or witnessed the incident
The Report of misconduct should invariably give the following details :
(a) Full name of the person who committed the act of misconduct;
(b) Designation;
(c) Punch Card No/Employee No.;
(d) Section/Dept./Region;
(e) Shift or Relay in which the employee was working;
(f) Date and time of incident;
(g) Place of occurrence;
(h) Details of misconduct;
(i) Names of witnesses, if any;
(j) Recorded Statements, if any.
1.2. CHARGE SHEET
If on the basis of preliminary enquiry or otherwise, the disciplinary authority is satisfied that a prima-facie
case exists and decides to take disciplinary action against the employee concerned, the first thing to be
done is to issue a charge-sheet to delinquent employee.
Charge-sheet is a memorandum of charges or allegations levelled against the employee which are acts of
misconduct as per the Conduct, Discipline and Appeal Rules.
Check-List for preparation of Charge-Sheet
While framing a Charge-sheet, the following items may be kept in mind so that nothing relevant would be
missing from the Charge -sheet :
a) Date of charge sheet.
b) Correct Name and Card No./Employee No. of delinquent employee.
c) Specify date of incident.
d) Description of incident.
e) Reproduce the language in verbatim if there are words of abuse, defamation or threat.
Decide whether employee is to be kept under suspension or not. Decide whom to send the copies of
Guidelines for preparing Charge-Sheet
a) The Charge-Sheet should be specific and must spell out all the relevant particulars of the misconduct.
b) As far as possible, it should be precisely mentioned in the Charge-sheet as to under which rule or clause,
the charges constitute acts of misconduct so as to enable the employee as to which rules are applicable
to him in this context.
c) The Charge-sheet must be signed by the competent authority.
Time for reply to Charge-sheet
A reasonable period of time should be given to the employee to submit his reply to the Charge-Sheet.
Time as stipulated in the Conduct, Discipline & Appeal Rules, but not less than 48 hours from the receipt
of the Charge-sheet by the employee should be allowed for submission of his reply. If the Charge-sheeted
employee requests for extension of time, such request(s) may be considered on its own merits.
Service of Charge-sheet
Serving the Charge-sheet on the delinquent employee plays a very important role in disciplinary
proceedings. Hence, all efforts should be made by the employer to see that the Charge-sheet is served on
the delinquent employee. The Charge-Sheet may be handed over to the employee and his signature or
thumb-impression of his having received the same obtained on the office copy. In case he refuses to
accept the Charge-sheet, an endorsement to the effect should be made on the office copy in the presence
of at least two witnesses whose signatures should be obtained.
3. Domestic enquiry-steps
Misconduct
Complaint
Charge sheet
Explanation
A reasonable period of time should be given to the employee to submit his reply to the Charge-Sheet
48 hours from the receipt of the Charge-sheet by the employee should be allowed for submission of his
reply.
Notice of enquiry
Appointing Enquiry officer
Venue
Date
Name of the enquiry officer
Authorization letter
Management representative
Defense counsel
Statement
Examination of evidences
Cross examination
EO role/duties
3.1 Enquiry Officer
The Enquiry Officer is the officer appointed by the disciplinary authority to conduct an enquiry into the
allegations levelled against the charge sheeted employee. The Enquiry Officer’s job is to listen to and
record the statements of both the parties i.e., the accused employee and the management
representative; allow both the parties to submit to him the relevant documents in support of their
contentions; allow both the parties to examine their witnesses as well as cross-examine the other’s
witnesses; allow both the parties to submit arguments and counter arguments in respect of the charges
and evidence adduced in the enquiry; and finally submit his enquiry report to the disciplinary authority
3.2 Presenting Officer/Management representative
Presenting Officer : Presenting Officer is the officer appointed to present the case of the management
before the Enquiry Officer relating to the charges levelled against the accused employee. The Presenting
Officer will produce in the enquiry, all the relevant documents relating to charges levelled against the
employee and also examine the witnesses of the Company as well as cross-examine the witnesses of the
charge-sheeted employee.
3.3 Charge sheeted worker
Charge-sheeted Employee : It is necessary that the enquiry should be held in the presence of the accused.
If, however, the employee failed to report for the enquiry at the appointed place, date and time, the
Enquiry Officer may proceed with the enquiry ex-parte, provided the charge-sheet or the enquiry notice
included a provision to that effect.
3.4 Defense assistant/counsel
Defense Assistant of the Accused Employee: If the accused employee wishes another employee of his
choice to assist him at the enquiry in the conduct of his defense, it should be allowed, if a request is made
for a non-employee union office-bearer.
3.5 Interpreter: The presence of an interpreter, from amongst the employees, would be desirable in case
the accused employee is not familiar with the language in which the enquiry is conducted.
3.6MW & CWW
Management Witnesses:
These are the persons who appear in the enquiry to give their statements in support of the charges
levelled against the charge-sheeted employee.
Charge-sheeted worker’s Witnesses: These are the persons who appear in the enquiry to give their
statements in defense of the charge-sheeted employee.
3.7 Documents to be forwarded to Enquiry Officer
The disciplinary authority shall forward to the Enquiry Officer :
a) A copy of the charge-sheet;
b) A copy of the reply, if submitted by the charge-sheeted employee;
c) List of witnesses, if available;
d) List of documents to be produced in enquiry, if available;
e) Copy of order appointing the Presenting Officer.
At the commencement of the enquiry, the charges should be read out and explained to the chargesheeted employee and he should be asked whether he pleads guilty to the charges or not. If the employee
admits his guilt it will be open Recording of the Proceedings of the enquiry must be recorded elaborately.
The statement of the witness and subsequent examination/cross-examination should be recorded.
The statement should be recorded in a narrative form. All documents and records relied upon by the
Presenting Officer and produced at the enquiry for establishing the charge should be produced in the
presence of the charge sheeted employee and he should be explained the contents thereof relevant for
the purpose.
3.8 Ex-parte Enquiry
When the enquiry is fixed at a particular time, place and date and the charge-sheeted employee does not
turn up and seeks a postponement on genuine grounds, the same may be granted. If the charge-sheeted
employee makes further attempts for adjournment and the Enquiry Officer is convinced that it is being
done with a view to deliberately delay the proceedings, the Enquiry Officer may proceed with the enquiry
ex-parte.
3.9 Joint Enquiry
Where two or more persons are charge-sheeted in connection with the same incident or transaction, the
authority competent to take disciplinary action for all of them may direct a joint enquiry to be held against
them. If the authorities competent to impose the penalty are different, an order for joint proceedings may
be made by the highest of such authorities.
3.10 De-Novo Enquiry
If the charge-sheeted employee makes a request for re-conducting the enquiry or the Disciplinary
Authority feels on the merits of the case that the enquiry has to be reopened and conducted again in the
interest of justice, the enquiry may be re-opened and conducted again as per the orders of the Disciplinary
Authority. This is called De-Novo
Enquiry.
3.11 Report of the Enquiry Officer
After the conclusion of the recording of evidence, the Enquiry Officer should prepare and submit his
report. The Enquiry Officer should record clearly and precisely his findings and indicate the reasons for
arriving at such findings in respect of each charge. The findings must be based on the evidence on record.
After conclusion of the enquiry, a report shall be prepared by the Enquiry Officer and it shall contain:
a) The articles of charges and the statement of the allegations of misconduct or misbehavior;
b) The defense of the employee in respect of each article of charge;
c) An assessment of the evidence in respect of each article of charge;
d) The findings on each article of charge and the reasons therefor.
ii) The Enquiry Officer, where he is not himself the disciplinary authority, shall forward to the disciplinary
authority the records of enquiry which shall include:
a) The report prepared by it under clause (i) above;
b) The written statement of defense submitted by the employee;
c) The oral and documentary evidence produced in the course of the enquiry;
d) The orders, if any, made by the disciplinary authority and the enquiry authority in regard to the enquiry.
iii) The disciplinary authority shall consider the records of the enquiry, record his conclusions on each
charge and pass appropriate order.
3.12 Supplying Copy of the Proceedings to the Employee
In case, during the proceedings of the enquiry, the charge-sheeted employee asks for copies of statement
for the purpose of cross-examination, he should be supplied with the same provided that he is unable to
read and understand the deposition.
a. Enquiry reports to csw.
b. Second show cause notice
3.13 Check List for Disciplinary Authority
The disciplinary authority before passing final orders should check up if the following aspects have been
taken care of :
a) Whether definite and specific charges were framed;
b) Whether the charge-sheet was properly served;
c) Whether the charge-sheeted employee was given sufficient time to submit his explanation, as required
under the rules. Whether the explanation, if any, submitted was duly considered;
Punishment
Warning
Suspension
Hold increments
Dismissal
3.14 PRINCIPLES OF NATURAL JUSTICE
The procedure for taking disciplinary action against any delinquent employee must be based on principles
of “natural justice” –
a) The employee proceeded against has been informed clearly of the charges levelled against him;
b) The witnesses are examined ordinarily in the presence of the employee in respect of the Charges;
c) The employee is given a fair opportunity to cross-examine the witnesses;
d) The employee is given a fair opportunity to examine his own witnesses, including himself in his defense,
if he so wishes;
e) The enquiry officer records his findings with reasons for the same in his report.
II. THE EMPLOYEE’S COMPENSATION ACT, 1923 (Amendment 2013)
The Employee’s Compensation Act, 1923 was earlier known as The Workmen’s compensation Act, 1923.
It got amended in 2013. The Employee Compensation Act, 1923 is one of the important social security
legislations. It aims at providing financial protection to certain employees and their dependants in case of
accidental injury by means of payment of compensation by the employers.
Entitlement
Every employee (including those employed through a contractor but excluding casual employees), who is
engaged for the purposes of employers business and who suffers an injury in any accident arising out of
and in the course of his employment, shall be entitled for compensation under the Act. Should be
exempted from ESI.
EMPLOYER’S LIABILITY to compensate any employee:
Who has suffered an accident arising out of and in the course of his employment, resulting into:
(i) Death,
(ii) Permanent total disablement,
(iii) Permanent partial disablement,
(iv) Temporary disablement whether total or partial, or who has contracted an occupational disease.
HOWEVER THE EMPLOYER SHALL NOT BE LIABLE -In respect of any injury which does not result in the
total or partial disablement of the workmen for a period exceeding three days; In respect of any injury not
resulting in death, caused by an accident which is directly attributable to the workmen having been at
the time thereof under the influence of drugs, or the willful removal or disregard by the workmen of any
safeguard or other device which he knew to have been provided for the purpose of securing the safety of
workmen. The burden of proving intentional disobedience on the part of the employee shall lie upon the
employer. when the employee has contacted a disease which is not directly attributable to a specific injury
caused by the accident or to the occupation; or When the employee has filed a suit for damages against
the employer or any other person, in a Civil Court.
Computation of Compensation under the Act.
Case 1
Death of Employee : Age and the relevant factor, 50% of the wages, Minimum amount payable
Rs.1,20,000/An employee draws monthly wages of ` 9,000/- (worked out as above) dies of burn injuries while working
at a furnace and his age is 42 years.
In terms of Sec. 4(a) his monthly wages is to be taken as ` 8,000/- only and 50% of it is ` 4,000/Thus compensation Payable = 4,000 x 178.49 = ` 7,13,960/Case 2
Permanent Total Disablement: 30 years Age and the relevant factor, 60% of the wages, Minimum amount
payable Rs. 1,40,000/If the injury results in permanent total disablement, the compensation payable will be as under ` 4,800
(60% of 8000) x 207.98= ` 9,98,304/Loss of thumb: % of loss of earning capacity, (30% from the total permanent disablement compensation
9,98,304 x 30%=2,99,491.20
III. Employee counselling is a method of understanding and helping individuals who have technical,
personal and emotional adjustment problems interfering with their work performance.
Counselling is discussion with an employee, who has some problem or the other, more particularly
emotional in nature.
It is intended to help the employee to overcome the emotional stress, so that he/she can get back to the
main track of performance
Problem
At the workplace employees need counselling in respect of wage problem, absenteeism, relations with
superiors.
Scope of counselling should not be limited to work related problems alone.
The marital problems, financial problems, problems with children and other psychological issues need
counselling.
These problems also affect employee performance at the plant or office.
HR/ER Manager
It is an additional responsibility.
It is an added advantage for the manager as counsellor that he knows his employees and subordinates
well and could find no difficulty in understanding the problems faced by them.
Manager must know that the problem ridden employees cannot work better but commit mistakes and
sometimes come across accident causing immense loss to the organization. Counsellor must be an expert
in industrial psychology.
Approach
Make it a point to listen first and discuss later. Be friendly and approachable in this aspect.
Sometimes, talking about the problems and how to overcome them helps employees open up.
Get to know about their problems and what they think is affecting them and approach accordingly.
Qualities of a Manager for counselling
Communication.
Patience.
Confidence.
Non-judgmental.
Observant.
Listening Skills.
Trust.
Respectful.
Personality
He /she must be a person with charming personality, caring, should attract other persons toward himself
/herself
Should be affectionate towards one and all
Should understand and interpret the behavior of others.
Don’ts
Should not develop conflict.
Do not have any vested interest in counselling.
Do not be angry.
Don’t resist.
Conclusion
Counsellor commands respect from the people and enjoys status in the entire organization as his services
help in achieving good employee/industrial relations.
So counselling is the process of helping an individual facing a problem and to regain his lost confidence
and self esteem and put his mind in his job.
The above becomes in maintaining good and cordial relationship with the union, staff, workers.
IV. COLLECTIVE BARGAINING
Charter of Demand is a collection of demands which the employee through their union put before the
management for improvement in their service conditions and wages. It is only governed by the
relationship of employer and employee and maintenance of peace for uninterrupted production. If
management chooses to ignore the Charter of demands raised by the union, the next course of action
available to the union is to raise an industrial dispute u/s 2(k) of the ID act. The matter will be taken up
for conciliation. If conciliation fructifies a 12 (3) settlement will be entered into by the management and
union duly countersigned by the conciliation officer. In case of failure of conciliation the appropriate
government may refer the matter for adjudication before labour court / Industrial Tribunal.
The Order of the LC/IT is final but subject to writ jurisdiction of the High Court.
Wage agreement
An agreement on wages and benefits over by negotiations between workers and management.
The origin of the long term settlement are:
Charter of Demands.
Termination of settlement.
Charter of Demands of the union to the management.
Nature of demands of the union
The term collective bargaining is made up of two words, ‘collective’ – which means a ‘group action’
through representation and ‘bargaining’, means ‘negotiating’, which involves proposals and counterproposals, offers and counter-offers. Thus it means collective negotiations between the employer and the
employee, relating to their work situations.
The success of these negotiations depends upon mutual understanding and give and take principles
between the employers and employees.
The collective bargaining process comprises of five core steps:
Prepare: This phase involves composition of a negotiation team.
The negotiation team should consist of representatives of both the parties with adequate knowledge and
skills for negotiation.
In this phase both the employer’s representatives and the union examine their own situation in order to
develop the issues that they believe will be most important.
The first thing to be done is to determine whether there is actually any reason to negotiate at all.
A correct understanding of the main issues to be covered and intimate knowledge of operations, working
conditions, production norms and other relevant conditions is required.
Discuss: Here, the parties decide the ground rules that will guide the negotiations.
A process well begun is half done and this is no less true in case of collective bargaining.
An environment of mutual trust and understanding is also created so that the collective bargaining
agreement would be reached.
Propose: This phase involves the initial opening statements and the possible options that exist to resolve
them. In a word, this phase could be described as ‘brainstorming’. The exchange of messages takes place
and opinion of both the parties is sought.
Bargain: negotiations are easy if a problem solving attitude is adopted. This stage comprises the time
when ‘what ifs’ and ‘supposals’ are set forth and the drafting of agreements take place.
Settlement: Once the parties are through with the bargaining process, a consensual agreement is reached
upon wherein both the parties agree to a common decision regarding the problem or the issue.
This stage is described as consisting of effective joint implementation of the agreement through shared
visions, strategic planning and negotiated change.
Collective agreement:
The final product of negotiation process is a collective bargaining agreement. It is a document that often
contains a large number of provisions and clauses covering compensation, hours of work, and other
conditions of employment. Successful administration of an agreement depends on mutual.
Good faith bargaining: both parties are making every reasonable effort to arrive at agreement, proposals
are being matched with counter proposals.
Voluntary (or permissible) bargaining items: items in collective bargaining over which bargaining is
neither illegal nor mandatory-neither party can be compelled against its wishes to negotiate over those
items.
Illegal bargaining items: items in collective bargaining that are forbidden by law; for example, a clause
agreeing to hire “ union member exclusively” would be illegal in a right-to-work state
Mandatory bargaining items: items in collective bargaining that a party must bargain over. For ex; pay
and other working conditions
Impasse : CB situation that occurs when the parties are not able to move further toward settlement,
usually because one party is demanding more than the other will offer.
Mediation: Intervention in which a neutral third party tries to assist the principals in reaching agreement.
V. THE INDUSTRIAL EMPLOYMENT ACT (STANDING ORDERS), 1946
“Standing Orders” mean rules relating to matters set out in the Schedule to the Act [Sec.2(g)] to be
covered and in respect of which the employer has to draft for submission to the Certifying Officer are
matters specified in the Schedule.
Objectives of the Act
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To regulate industrial relations.
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Regulate the conditions of employment, grievances, misconduct etc. of the workers employed in
industrial undertakings.
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Rules covered :Classification of Workers,
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Publication of Work Time, Holidays, Pay Days and Wage Rates,
• Shift Working, Attendance and Late Coming, Leave and Holidays, Casual Leave,
• Payment of Wages, Stoppage of Work, Termination of Employment• Disciplinary Action for
Misconduct, Suspension, Dismissal, Complaints
Procedure for the Approval of Standing Orders
• Within 6 months from the date on which this Act becomes applicable to industrial establishment
wherein 50 workmen are employed, the employer shall submit to the Certifying Officer 5 copies
of the draft standing orders proposed by him.
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The Certifying officer after receipt of the draft Standing Orders from the employer shall forward
a copy of the draft standing orders to the recognized trade union of the establishment seeking
submission of objection to draft standing orders if any.
The standing orders comes into operation on the expiry of 30 days from the date on which the
authenticated copies of the standing orders are forwarded to the employer and the workmen by
the certifying officer.
The conditions of employment, which will be binding on the employer and the workmen from the
date when they become operational.
“Certifying officer” under standing order act means Regional Labor Commissioner, Labor
Commissioner or other officer.
Payment of Subsistence Allowance
Where any workmen is suspended by the employer pending investigation or inquiry into
complaints or charge of misconduct against him, the employer shall pay to such workmen
subsistence allowance:
a. At the rate of 50% of the wages which the employer is entitled to immediately preceding the
date
of
such
suspension,
for
the
90
days
of
suspension;
and
b. At the rate of 70% of such wages for the remaining period of suspension.
MATTERS TO BE PROVIDED IN STANDING ORDER UNDER THIS ACT
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Classification of workmen, e.g. whether permanent, temporary, apprentices, probationers, or
badlis.
• Manner of intimating to workmen periods and hours of work, holidays, pay-days and wage rates.
• Shift working.
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Attendance and late coming.
• Conditions of procedure in applying for, and the authority which may grant, leave and holidays.
• Requirement to enter premises by certain gates, and liability to search.
• Closing and re-opening of sections of the industrial establishment, and temporary stoppages of
work and the rights and liabilities of the employer and workmen arising therefrom.
• Termination of employment, and the notice thereof to be given by employer and workmen.
• Suspension or dismissal for misconduct, and acts or omissions, which constitute misconduct.
• Means of redress for workmen against unfair treatment or wrongful exactions by the employer
or his agents or servants.
• Any other matter, which may be prescribed
MISCONDUCT
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The following shall denote misconduct:—
• Theft, fraud, or dishonesty in connection with the employer’s business or Property.
• Taking or giving of bribes or an illegal gratification whatsoever in connection with the employer’s
business or in his own interests;
• Willful in-subordination or dis-obedience, whether along or in conjunction with another or others,
Or of any lawful or reasonable order of a superior. The order of the superior should normally be
in writing;
• Habitual late attendance and habitual absence without leave or without Sufficient cause;
• Drunkenness, fighting or riotous, disorderly or indecent behavior while on duty at the place of
work;
• Habitual neglect of work;
• Habitual indiscipline;
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Smoking underground or within the mine area or in places, where it is prohibited.
Causing wilful damage to work in progress or to property of the employer.
Sleeping on duty;
Malingering (idle) or slowing down work;
Acceptance of gifts from subordinate employees;
Conviction in any court of law for any criminal offence involving moral turpitude.
Continuous absence without permission and without satisfactory cause for more than ten days;
Giving, false information regarding one’s name, age, father’s name, qualification or previous
service at the time of the employment;
Leaving work without permission or sufficient reason
Threatening, abusing or assaulting any superior or co-worker;
Habitual money-Lending;
Preaching of or inciting to violence;
Abetment of or attempt at abetment of any of the above acts of misconduct;
Going on illegal strike either single or with other workers without giving 14 days previous notice;
Disclosing to any unauthorized person of any confidential information in regard to the working
or process of the establishment which may come into the possession of the workman in the
course of his work;
Refusal to accept any charge-sheet or order or notice communicated in writing;
Failure or refusal to wear or use any protective equipment given by the employers;
Sexual harassment