Dr Sunil Arora
JR,
Dept. of Chest &TB
Govt. Medical College
Patiala
Labour Laws
• Labour Law or employment law is the body of laws,
administrative rulings,and precedents which
address the legal rights of ,and restrictions on,
working people and their organisations. As such , it
mediates many aspects of the relationship between
trade union,employers and employees.
Purpose Of Labour Laws
Generally Labour Law covers :
1. Industrial Relations-certification of unions, labour
management relations, collective bargaining and
unfair labour practices.
2. Workplace health and safety.
3. Employment standards,including general
holidays,annual leave,working hours,unfair
dismissals,minimum wage,lay off procedures and
severance pay.
History of labour laws
Labour laws arose due to :• demands of workers for better conditions.
• demands of employers to restrict the powers of
workers in many organisations and to keep labour
costs low.
International labour organisation(ILO) was the first
organisation to deal with labour issues.
In India ,the law ,relating to labour and
employment is also known as Industrial Law. The
earliest Indian statute to regulate the relationship
between employer and his workmen was Trade
Dispute Act,1929(Act 7 of 1929). Ultimately,Industrial
Dispute Act(IDA) brought into force on 01.04.1947.
What Is Industrial Dispute Act?
• Industrial dispute means any dispute or difference
between employers and employers,or between
employers and workmen,or workmen and
workmen,which is connected with the employment
or non-employment or the terms and conditions of
employment or with the conditions of labour of any
person[section 2(k)].Section 2A provides that
dismissal ,discharge , retrenchment of even a single
workman will be industrial dispute even if no other
workman or any union is a party to the dispute.
What is Industry?
• Industry means any business,trade, undertaking,
manufacture or calling of employers and includes any
calling, service, employment, handicraft or industrial
occupation or avocation of workmen.[This definition Is
very wide]
In Bangalore Water Supply and Sewrage Board, Vs
R.Rajappa(1978)[A 7 judge bench of supreme court laid
down triple test],a wide interpretation to the term Industry
was given as:• systematic activity.
• organised by cooperation between employer and
employee.
• for the production and or distribution of goods and
services with a view to satisfy human wants and wishes.
Who is a Workman ?
‘Workman’ means any person (including apprentice) employed in
any industry to do any manual, clerical or supervisory work for
hire or reward.It includes dismissed, discharged or retrenched
person also.However,it does not include:• Armed forces i.e. those subject to Air Force Act,Army Act or
Navy Act.
• Police or employees of prison.
• Employed in mainly managerial or administrative capacity or
• Person in supervisory capacity drawing wages exceeding Rs.
10000 per month or functions are is mainly of managerial
nature[section 2(X)][now salary is not a criterion, SC has given
judgement in which pilot of Indian Airlines was given status of
workman, who draws salary in lakhs]
Are Labour Laws applicable to hospitals
or whether hospital comes under the
purview of Industrial Dispute Act….???
• In state of Bombay v. Hospital Mazdoor Sabha case-court held that
the activities which have no commercial implications such as
hospitals carried on with philathropic motives would be covered by
expression ‘undertaking’ and considered hospital as an industry.
• In Management of Safdarjung Hospital v. Kuldip Singh,it was held
that a place of treatment of patients run as a department of govt. was
not an industry because they have not embarked upon economic
activities analogous to trade or business.
If hospitals,nursing home or a dispensary is run as a business in a
commercial way,then there may be the elements of industry.
• In Bangalore Water Supply and Sewrage Board V. R.Rajappa
case,SC overruled the judgement of Management of Safdarjung
Hospital v. Kuldip Singh and gave new definition of industry as
discussed before.
What is Lay off ?
•
•
•
•
•
When an employee is not given work due to some
reasons beyond the powers of the employer.It
means failure/refusal/inability of the emloyer to give
employment due to following reasons:shortage of raw material/power.
accumulation of stocks.
breakdown of machinery.
natural calamity.
other connected reasons(sec(2(kkk))).
Nature of Lay Off
It is temporary.
It is due to situation beyond the control of the employer.
Lay off compensation is given to the employee(50%)
Employee has to come to the factory,but is laid off in 2
hours(not given work).
• No workman (other than a badli workman or a casual
workman) whose name is borne on the muster-rolls of an
industrial establishment wherein 50 or more workers are
employed shall be laid-off by his employer except with the
prior permission of the appropriate Government.
•
•
•
•
Meaning of Retrenchment
Retrenchment means termination by the employer
of service,of a workman for any reason, other than
as a punishment inflicted by a disciplinary action.
However,retrenchment does not include voluntary
retirement or retirement on reaching age of
superannuation or termination on account of nonrenewal of contract or termination on account of
continued ill-health of a workman or in other words
it is the discharge of surplus labour or staff by
employer.
Notice for Retrenchment
A worker who has completed one year of service
can be retrenched by giving one month notice(or
paying one month’s salary) plus retrenchment
compensation at the time of retirement @ 15 days
average wages for every completed year of
service(sec 25 F)
Strike
‘Strike’ 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 employement.
Lock Out
Lock Out is temporary closing or 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.
Difference between Strike and Lock Out
In Strike,employees refuse to work.But Lock Out is
used by the employer to convince the union to back
down. Or in other words, workers go on strike, while
lock out is declared by employer.
Prohibition of Strikes in P.U.S.
•
•
•
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No person employed in public utility service shall go
on strike in breach of contract.
Without giving notice of strike to employer within six
weeks before striking.
Within 14 days of giving such notice;or
Before the expiry of the date of strike specified in
any such notice or aforesaid.
During the pendency of any conciliation
proceedings before a conciliation officer and seven
days after the conclusion of such proceedings.
GENERAL PROHIBITION OF STRIKES
( Sec - 23 of I.D. Act -1947)
No person employed in any Industrial establishment
shall go on Strike in breach of contract –
1) During the pendency of Conciliation proceedings
before a Board and seven days after its conclusion.
2) During the pendency of proceedings before the
adjudication Authorities and two months after its
conclusion.
3) During the pendency of Arbitration Proceedings
before an Arbitrator and two months after its
conclusion or where the Notification has been issued
under section – 10 A ( 3-A).
4) During any period in which a settlement or Award is
in operation.
Justified and Unjustified Strikes
• A strike may be unjustified –when raised in
contravention of the provision of Act and both the
demand and behavior of strike are unjust.
• A strike is justified if it has been raised for a good
cause and carried in a peaceful manner.
Offences and Penalties
• Any workman who commences, continues in furtherance of
illegal strike, shall be punishable with imprisonment upto
one month, or fine upto Rs. 50/- or with both.
• Any person who incites others to take part in an illegal
strike or who knowingly extends money in support of any
illegal strike is punishable with imprisonment of six months
or fine upto Rs. 1000/- or with both.
• If a person committing an offence under this act is a
company, or corporate body, an association;every manager,
director , secretary, agent, officer is deemed to be guilty of
such offence.
What is wages?
• Wages means all remuneration capable of being expressed
in terms of money. It includes house rent allowance but
does not include
• value of house accommodation, supply of light,water,
medical attendance
• Value of any other amenity provided, if excluded by
Government order
• Contribution to pension fund or provident fund or insurance
• Traveling allowance\
• special expenses incurred by the nature of employment
• Gratuity payable on discharge
Wages During Strike/Lock Out
• Wages during strike period are payable only if strike
is both legal and justified.
• If Lock Out by employer is legal and justified,
workmen are not entitled to payment of wages.
• During legal strikes, employers don’t have to pay
workers unless workers demand that payment in
kind(accomodation, food, basic amenities).
No Work-No Pay
This principle has been accepted by Supreme
Court. This principle is also applicable when a
man was eligible for promotion but was not
promoted and infact didn’t work in higher
post. In such case, he is not eligible to get pay
for higher scale.
Minimum Wages Act ,1948
Objective
• To provide minimum wages to the workers in the
scheduled employments.
• To stop exploitation of the workers.
• To empower the government to take steps for fixing
minimum wages and to revise these wages within a
period of 5 years.
Minimum Wage Fixation
By Appropriate government after following
prescribed procedures.
• The rate fixed can be revised periodically [section
3(1)].
The rate can be fixed on-time work basis,
-piece work basis,
-a guaranteed rate,when rate is fixed on piece work
basis and
-overtime rate [section 3(2)].
Minimum Wage Fixation
• Different minimum wage rates can be fixed for
different scheduled employements,diferent class of
work in the same scheduled employement, adults,
adolescents children and apprentices,different
localities[section 3(3)(a)].
• Rates can be fixed on the basis of hour, day or
month or even larger period [section 3(3)(b)].
• Penalty under this act is imprisonment of 6 months
and/or fine of Rs 500
What will happen If a worker works
less than normal hours ?
• He will receive minimum wages.
• However, he will not receive minimum wages if he is
not willing to work or circumstances as may be
prescribed.
Will there be Overtime ?
sec.14: If minimum wages is fixed by hours, then the
workers will be paid overtime if he works more than
the ‘hours’ prescribed. The overtime rate will be as
fixed in this law or other law as applicable.
Workmen’s Compensation Act 1923
• This act is amended and renamed as Employees
Compensation Act.
• The objective of this Act is that in the case of an
employment injury, compensation be provided to
the injured workman and in case of his death to his
dependants.
• Establishments which are covered by the ESI act
are outside the purview of this act.
THE EMPLOYEES’ STATE INSURANCE ACT,
1948
• It is the first major legislation on social security for industrial
workers in India.
• The ESI Scheme is an integrated measure of Social
Insurance come to the life through the ESI Act – 1948, and
is designed to complete the task of protecting ‘Employees
as defined in the ESI Act – 1948, against the hazards of
sickness, maternity, disablement or death due to
employment injury and to provide full medical care to
insured persons and their families.
• Employees State Insurance Corporation (ESIC) has been
formed to supervise the scheme under section 3 of the Act.
COVERAGE
The ESI Act 1948 applies to
• Non – seasonal Factories using power in and
Employing ten (10) or More persons
• Non – seasonal and non- power using factories and
establishments employing twenty(20) or more
persons
• Employees of the Factories and Establishments in
receipt of wages not exceeding Rs.15000 /- Per
month are covered under this Act.
Contribution under ESI
Act,1948
The Scheme is primarily funded by contribution
raised from Insured Employees and their employers
Payable such as
1. Employees’ Contribution – 1.75% of the Wages
2. Employers’ Contribution – 4.75% of the Wages
TOTAL
- 6.5 % of the Wages
Employees in receipt of an average daily wage of
Rs.75/- or Less, are exempted from Payment of their
share of contribution but are entitled to all social
security benefits under the Scheme.
Machinery for Prevention and
Settlement of Industrial Disputes
Machinery for prevention and settlement of disputes
 Collective Bargaining
Labour
Administration
Machinery
 Trade Unions
 Joint consultations
 Standing Orders
 Grievance Procedure
 Code of Discipline
 State Level
 Central Level


Industrial Disputes Act, 1947
Government Machinery
State Acts
Voluntary Methods
Statutory Measures
 Works Committees
 Conciliation
(A)
(B)
C.Officer
C. Board
 Arbitration
 Adjudication
(a)
(b)
(c)
Labour Courts
Industrial Tribunals
National Tribunals
Machinery for Prevention and
Settlement of Industrial Disputes
Collective Bargaining: Collective Bargaining is a process
in which the representatives of the employer and of the
employees meet and attempt to negotiate a contract
governing the employer-employee-union relationships.
 Joint Management Councils: The JMC normally
consists of equal number of representatives of workers and
employers looking after three things: information sharing,
consultative and administrative matters relating to welfare,
safety, training etc and the formulation of standing
orders.(without encroaching on the jurisdiction of works
committees)
Machinery for Prevention and
Settlement of Industrial Disputes
Standing orders: These are the rules and regulations
which govern the conditions of employment of workers. The
Industrial Employment (standing orders) Act of 1946
provides for the framing of standing orders in all industrial
undertakings employing 100 or more workers.
Grievance procedure: A model grievance procedure as
suggested by the Indian Labour Conference, 1958 has
more or less been widely accepted in India now.
Code of discipline: It consists of a set of self-imposed
obligations voluntarily formulated by the central
organisation of workers and employers.
Machinery for Prevention and
Settlement of Industrial Disputes
Works committees: As per the Industrial Disputes
Act, 1947, works committees have to be set up all
those industrial units which employ 100 or more
persons. It is basically a consultative body.The
main purpose of such committees is to promote
industrial relations.
Machinery for Prevention and
Settlement of Industrial Disputes
 Conciliation: The practice by which the services of a neutral third
party are used in a dispute as a means of helping the disputing
parties to reduce the extent of their differences and to arrive at an
amicable settlement or agreed solution.
 Conciliation officer: an authority appointed by the government
to mediate disputes between parties brought to his notice;
enjoying the powers of a civil court. He is supposed to give
judgement within 14 days of the commencement of the
conciliation proceedings.
 Board of conciliation: The Board is an adhoc, tripartite body
having the powers of a civil court created for a specific dispute.It
is appointed when conciliation officer fails to resolve the dispute
within a time frame,
 Court of enquiry: In case the conciliation proceedings fail to
resolve a dispute, a court of enquiry is constituted by the
government to investigate the dispute and submit the report
within six months.
Machinery for Prevention and
Settlement of Industrial Disputes
• Voluntary arbitration: It is the process in which the
disputing parties show willingness to go to an arbitrator (a
third party) and submit to his decision voluntarily.
• Adjudication: It is the process of settling disputes
compulsorily through the intervention of a third party
appointed by the Government. The Industrial Disputes Act
provides a three-tier adjudication machinery consisting of:
– Labour court
– Industrial tribunal
– National tribunal
Pre-Placement Examination
• It is the foundation of an efficient occupational
health service.
• Done at the time of employement and it includes
worker’s medical,family,occupational & social
history;a thorough physical examination and a
battery of biological and radiological examination,
e.g.,CXR,ECG,vision testing,blood and urine
examinations,special test for endemic diseases.
Pre-Placement Examination
• A fresh recruit either be totally rejected or given a
job suited to his physical and mental abilities.
• The purpose of the pre-placement examination is to
place the Right man in the Right job,so that
worker can perform his duties efficiently without
detriment to his health.
Periodical Examinationtion
Many diseases of occupational origin require month
or even years for their development. Their slow
development very often leads to non-recognition in
the early stages and this is harmful to the workers
and thus making the Periodical Examination
necessary.