Workman Under Industrial Dispute Act
Workman Under Industrial Dispute Act
Workman Under Industrial Dispute Act
PROJECT REPORT
I would like to express my special thanks of gratitude to my teacher Dr. Virender Negi, who
gave me the golden opportunity to do this wonderful project on the topic- Workman under
the Industrial Dispute Act, 1947, which helped me in doing a lot of Research and I came to
know about so many new things.
I hereby declare that the project work entitled: Workman under the Industrial Dispute Act,
1947, submitted to Dr. Virinder Negi is a record of an original work done by me. The
material embodied in this project has not been submitted to any other University or Institute.
INTRODUCTION
1
S.N. Misra, Labour &Industrial Laws With Latest Amendments. 43 (Central Law publication, New Delhi,
2020).
2
https://bnblegal.com/article/definition-of-workman/ (Last Visited on 10th December, 2020)
WORKMAN: MEANING
According to dictionary meaning A workman is a man who works with his hands, for
example building or repairing houses or roads. But according to definition in 1947 act a wider
meaning is given to work workman.
Section 2(s) of The Industrial Dispute Act, 1947 defines "workman" as follows:
3
AIR 1958 SC 353
4
Meenu. Paul, Labour and Industrial laws. 34. Allahabad Law Agency, Faridabad, 10th edition, 2020).
According to Section 2(s) of the Industrial Disputes Act, 1947 to be a workman, a person
must satisfy the following conditions:
(3) Person must not draw wages exceeding Rs. Ten thousands p.m. (Rs.10,000/- p.m.) if he is
employed to do supervisory work.
(5) Person must not be specifically excluded from the definition of workman under Section
2(s) of the Industrial Disputes Act, 1947.6
5
Section- 2(s) of The Industrial Dispute Act, 1947.
6
http://lc2.du.ac.in/DATA/003_Industry,%20Industrial%20Disputes%20and%20Workman_Conceptual
%20Framwork%20and%20Judicial%20Activism%20(3-50).pdf(Last Visited on 12th December, 2020)
A person to be a workman under Section 2(s) of the Act must be employed in any industry.
The concept of employment involves three ingredients: (1) employer, (2)employee and (3)
the contract of employment. The employer is one who employs, i.e., one who engages the
services of other persons." The employee is one who works for another for hire. The
employment is the contract of service between the employer and the employee where under
the employee agrees to serve the employer subject to his control and supervision.
“The essential condition of a person being a workman within the terms of definition in
Section 2(s) is that he should be employed to do the work in the industry. That there should
be, in other words,an employment of his by the employer. That their should be the
relationship between the employer and him as between employer and employee or master-
servant. Unless a person is thus employed there can be no question of his being a workman
within the definition of the term as contained in the Act.”
Definition of 'industry' as in force today under Section 2(j) of the Industrial Disputes Act,
1947 Section 2(j).-
"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."
Following are the guiding principles as laid down by the Supreme Court in Bangalore Water
Supply and Sewerage Board v. A. Rajappa8 to know that whether a particular enterprise is
an industry or not.
7
AIR 1956 SC 264
8
AIR 1978 SC 548
In the master-servant relationship the master supervises and controls the work done by the
servant not only in the matter of directing what work the servant is to do but also the manner
in which that work is to be done by the servant.
In Management of Puri Urban Co-op. Bank v. Madhusudan Sahu 10, the Supreme Court
reiterated as follows
"It stands established that industrial law revolves on the axis of master and servant
relationship. By a catena of precedents it stands established that the prima facie test of
9
http://www.legalservicesindia.com/article/422/Which-employees-do-not-fall-under-the-ambit-of-Industrial-
Dispute-Act,-1947.html(Last Visited on 11th December, 2020)
10
1992 Lab IC 1462 SC
The Supreme Court in Dharangadhara Chemical Works Ltd. v. State of Saurashtra 11,
held that, if a person agrees himself to do the work under the supervision of employer, he is a
workman and he does not cease to be a workman merely because he gets other persons to
work along with him and those persons are controlled and paid by him.
In Workmen of Nilgiri Co-op. Mkt. Society v. State of Tamil Nadu 12, a service society
was formed with object of protecting small growers growing vegetable and tea from being
exploited by traders. The society had two big market yards where the growers could bring
their vegetables or tea. In the yard there are always available porters for the job of loading
and unloading. These porters were always in waiting in yard to be engaged by the growers
and merchants themselves for loading, unloading or grading. Said porters were neither
appointed nor engaged by society nor was any control exercised on them by the society.
Except on authorisation by member of society, no direct payment made to them by the
society and there existed no master servant relationship between the porters and the society,
Due to the absence of masters servant relationship between the porters and the society, the
porters were not held workmen of the society within the definition of workman under section
2(s).
Supervision and control exercised by the employer is a deciding factor to know that whether
a person working for the employer is an employee or an independent contractor.
An employee like a servant works for the employer under the supervision and control of the
employer not only with regard to which is work to be done, but also with regard to the
manner in which the work is to be done. Whereas the independent contractor works for the
employer without submitting himself to the control and supervision of the employer with
respect to the manner in which the work is to be done.13
11
AIR 1957 SC 264
12
2004 Lab IC 905 SC
13
https://www.dawn.com/news/1512631(Last Visited on 11th December, 2020)
"The question whether the relationship between parties is one as between employer and
employee as between masters and servant is a pure question of fact. The nature and extent of
control which is requisite to establish the relationship of employer and employee must
necessarily vary from business to business and is by its very nature incapable of precise
definition. The correct method of approach, therefore, should be to consider whether having
regard to the nature of the work, there was due control and supervision by the employers. A
person can be a workman even though he is paid not per day but by the job."
In Management of Puri Urban Co-op. Bank v. Madhusudan Sahu 15, the bank had
engaged an appraiser whom the bank gave the work to weigh gold ornaments and certify
about the quantity, purity and value of the same. Though the appraiser is paid by the bank for
the work of evaluation of gold ornaments, yet the Supreme Court held that the appraiser is
not a workman. Because the bank has no control over the manner in which the work of
evaluation of gold ornaments is done by the appraiser. There does not exist master-servant
relationship between the bank and the appraiser.16
According to the definition of workman under Section 2(s), a person to be a workman must
be employed to do any manual, unskilled, skilled, technical, operational, clerical or
supervisory work for hire or reward.
When some work requires a certain technique or certain training is required for doing that job
then it is skilled labour.
Manual
14
Dharangadhara Chemical Works Ltd. v. State of Saurashtra (AIR 1957 SC 264)
15
1992 2LLJ 6(SC)
16
https://www.slideshare.net/bibinssb/industrial-disputes-act-1947 (Last Visited on 12 th December, 2020).
Supervisory Work
A supervisor is a person who sees or looks after the work of other employees or in other
words supervises them.
Technical Work
An employee must possess the technical knowledge to be termed as a technical worker. Eg.
Draftsman, engineer,etc. Any person, who is engaged in doing any technical work which
involves special mental training or scientific or technical knowledge, will fall under the
definition of workman. However, every work of technical nature which involves technical
skill does not necessarily give rise to the relationship of employer and employee. Technical
work requires training or knowledge or expertise of a particular art or science to which that
works pertains. For example, a doctor performing the duties of examining patients,
diagnosing diseases and prescribing medicines is considered to possess specialized skills
required for performing the job. As a result, he will qualify as a workman doing technical
work only when it is established that he is employed in an industry, and where the condition
of an employer-employee relationship is fulfilled. Doctors rendering professional services to
various establishments or engaged in private practice where no relationship of employment is
created will not be entitled to claim the status of workmen.17
Any person, who is engaged in doing any technical work which involves special mental
training or scientific or technical knowledge, will fall under the definition of workman.
However, every work of technical nature which involves technical skill does not necessarily
give rise to the relationship of employer and employee. Technical work requires training or
knowledge or expertise of a particular art or science to which that works pertains. For
example, a doctor performing the duties of examining patients, diagnosing diseases and
17
P.L. Malik, Industrial Law (Covering Labour Law in India)54, (Eastern Book Company, Lucknow, 2017.)
In Bombay Dyeing and Manufacturing Co Ltd v RA Bidoo 18, it was held that a person is
said to be employed in a technical capacity if he possess some special skills. In the present
case, the respondent was employed as a camera operator in the company. He was working in
the screen-making department of textile mills and was responsible for testing new chemicals
and graphite films and, accordingly, advice the management of their suitability. The company
terminated the employment of the respondent without assigning any reason. The respondent
raised an industrial dispute contending that his termination was not justified. The Court
considered the nature of his work and held that the work done by him was not of a technical
nature as it did not require application of any special knowledge which would result in the
creation of a work peculiar to the talent of the respondent. Hence, the petition was dismissed.
Clerical Work
He is a person who works in an office and performs routine tasks like keeping records,
maintaining files, etc.
In May and Baker (India) Ltd v. Their Workmen 19, the Supreme Court dealt directly with
the question that whether an employee who does not fall within the four exceptions to the
definition of 'workman' even under Sec. 2(s) is a workman if he does not do any of the works
specified in the definition of 'workman' under Section 2(s) of the Act.
The Supreme Court in May and Baker's case held that "to be a workman a person must do
any of the works specified in the definition, even if the person does not fall in any of the
exceptions to the definition.
Following its three Judge Bench judgment in May and Baker's case the Supreme Court in
Burmah Shell Oil Storage & Distribution Co. of India v. Burmah Shell Management
Staff Association20, held that the Sales Engineering Representatives and District Sales
18
1990 1 LLJ 98 Bombay HC
19
AIR 1967 SC 678.
20
AIR 1971 SC 922.
The Court pointed out that the specification of different types of work under Section 2(s) was
obviously intended to lay down that an employee was to be workman only if he was
employed to do work of anyone of types specified in the definition of workman under Section
2(s).
The Supreme Court in Burmah Shells case held that the work of canvassing and promoting
sales could not be included in any of the categories of 'work' specified in the definition of
"workman" under Section 2(s) of the Act. Therefore the sales representative is not a
'workman' under Section 2(s) of the Industrial Disputes Act, 1947.
In H.R. Adyanathaya v. Sandoz (India) Ltd.21, it was contended on behalf of the medical
representative that a medical representative performs the duties of skilled and technical nature
and therefore is a workman. Rejecting this contention, the Full Bench of the Supreme Court
in this case, held that the connotation of the word skilled in the context in which it is used
will not include the work of a sales promotion employee such as the medical representative.
As regards the technical nature of their work, the Supreme Court held that the amount of
technical work done by the sales representative is ancillary to the chief work of promoting
sales. The mere fact that they possessed technical knowledge for such work does not make
their work technical.
In Miss A. Sundrambal v. Govt. of Goa, Daman & Diu 22, the Supreme Court held that
though an educational institution has to be treated as an industry, the teachers in an
educational institution cannot be treated as workmen.
The Supreme Court in A. Sundramnbal's case held that teachers employed by educational
institution whether they are imparting primary, secondary, graduate or post-graduate
education cannot be called workmen. As imparting of education which is the main function
of a teacher cannot be considered as manual, unskilled, skilled, technical, operational, clerical
or supervisory.
21
AIR 1994 SC 2608.
22
1989 1 LLJ 61 SC
The definition of workman under Section 2(s) of the Industrial Disputes Act 1947,
specifically excludes a person from the definition of workman who, being employed in a
supervisory capacity, draws wages exceeding ten thousand rupees per month under clause
(iv) of Sec. 2(s).
Thus, any person who is employed in any industry for hire or reward to do supervisory work
is not a workman if he draws wages exceeding ten thousand rupees per month.
In John Joseph Khokar v. B.S. Bhadange23, the petitioner was working as Mistry' in
Mazagaon Dock Limited and was drawing wages of Rs. 2500/p.m. His duties involved
supervising work of about 30 workmen and getting work done by them according to
specification. He also used to decide who should do overtime. The Bombay High Court in
this case held that since the 'mistry' is employed in supervisory capacity and who is drawing
wages more than Rs 1600/ p.m. Therefore 'mistry' is not a "workman" under Section 2(s) of
the Industrial Disputes Act, 1947. Mistry in this case is specifically excluded from the
definition of workman under clause (iv) of Sec. 2(s).24
The definition of workman under Section 2 (s) of the Industrial Disputes Act, 1947,
specifically excludes any person who is employed mainly in a managerial or administrative
capacity under sub-clause (ii) of Section 2(s). Thus, a person who is employed mainly to do
managerial or administrative work is not a workman under Section 2(s). Therefore in Central
Bank of India, Lucknow v. Assistant Labour Commissioner 25, the person employed
mainly in managerial capacity was not held a "workman" according to Sec. 2 (s) (iii) of the
Industrial Disputes Act, 1947.
In S.K. Maini's case the appellant Shri S.K. Maini, was the employee who was working as the
shop manager in charge of Carona Sahu Co. Ltd. By virtue of his being in charge of the shop,
he was the principal officer in charge of the management of the shop. He was required to
manage the overall functioning in the shop with the aid of his subordinates. Thus the
23
1998 LAB 1C 236 (BOM)
24
Supra note 4 at 64.
25
2000 ILLJ I67 (ALL).
Not the designation but principal nature of duty is important where a person performs
multifarious duties
Whether an employee can be regarded as workman under section 2(s) 1947 Act or not, the
Court must have regard to dominant nature of duties performed as designations are not
conclusive. It is not the nomenclature but nature of job of the workman which is important.
Onus of establishing, whether or not an employee is a workman or not lies on the employee.
The Supreme Court in S.K. Maini v. M/s. Carona Sahu Company Ltd.26 held as follows:
"Whether or not an employee is a workman under Section 2(s) of the Industrial Disputes Act
is required to be determined with reference to his principal nature of duties and functions."
The Supreme Court in S.K. Maini's case further held that to know whether a particular person
is a workman or not under Section 2(s), what is important is the nature of the duties
performed by the person and not his designation.27
Recently in Devinder Singh v. Municipal Council Sanaur29, the Supreme Court held that,
"the definition of workman does not make any distinction between full time and part time
employee appointed on contract basis. There is nothing in the plain language of Section 2(5)
from which it can be inferred that only a person employed on regular basis or person
employed for doing whole time job is a workman and the one employed on temporary, part
26
AIR 1994 SC 1824.
27
Supra note 4 at 52.
28
2006 Lab IC 1140.
29
(2011) 6 SCC 584.
(5) Person must not be excluded from the definition of workman under
section 2(s).
According to the definition of “workman” under section 2(s), following persons are the
person who are specifically excluded from the definition of “workman”-
(i) Who is subject to the Air Force Act, 1950 (45 of 1950), 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 m or exercises, either by the nature of the duties attached
to the office or by the reason of the power vested in him, functions mainly of a
managerial nature.30
PROTECTED WORKMEN
i. The workman must be a member of the executive or other office bearer of a registered
trade union.-
30
Section- 2(s) of The Industrial Dispute Act, 1947.
31
2000 (48) BLJR 449
And "office-bearer" is defined under Section 2(11) of the Industrial Disputes Act,
1947 as follows- "Office-bearer, in relation to a trade union, includes any member of
the executive thereof, but does not include an auditor."
ii. The registered trade union must be connected with the establishment to which the
"protected workman" is related; and
iii. The "protected workman" must be recognised in accordance with the rules made in
this behalf.32
18Rule 61(1) of Industrial Disputes (Central) Rules, 1957, provides that every registered
trade union connected with an industrial establishment shall communicate to the employer
before the 30th April every year, the names and addresses of the officers of the union who are
employed in that establishment who should be recognised as protected workmen.
Rule 61(2) makes it obligatory on the part of employer to recognise such number of workers
as provided u/s 33 (4) of the Industrial Disputes Act, 1947, as ‘protected’ for a period of 12
months, within fifteen days of receipt of the proposal from the union. However, management
is entitled to decline recognition as protected workman to a person nominated by the union, if
any disciplinary proceeding is pending against such workman.
Union certainly cannot exercise their power under Rule 61(1) to give immunity to an
employee against whom disciplinary proceedings initiated by the management are pending,
by nominating his name for recognition as protected workman. [HLL Lifecare Ltd Vs.
Hindustan latex Labour Union (AITUC)33]
As per Section 33 (4) of the Industrial Disputes Act, 1947, the number of workmen to be
recognised as protected workmen shall be one per cent of the total number of workmen
employed therein subject to a minimum number of five protected workmen and a maximum
number of one hundred protected workmen.
32
Dhawan, Rahat. Protected Workmen Under Industrial Dispute Act. Journal of Legal Studies and Research
[VOL. 2 ISSUE 4] (Available at https://thelawbrigade.com/wp-content/uploads/2019/05/Rahat-Dhawan.pdf)
last visited on 14th December, 2020.
33
WA.No. 1171 of 2010
Prior to the year 1947, industrial disputes were being settled under the provisions of the Trade
Disputes Act, 1929. Experience of the working of the 1929 Act revealed various defects
which needed to be overcome by a fresh legislation. Accordingly the Industrial Disputes Bill
was introduced in the Legislature. The Bill was referred to the select committee. On the
recommendations of the Select Committee amendments were made in the original Bill.
The act gives an elaborated definition of workman and great importance for the protection
and safely of the workman.
Industrial Disputes Act 1947 is a welfare legislation enacted for the workmen as defined
under section 2(s) of the Act Courts and scholars have been grappling with the question of
‘who is a workmen’ for centuries. The addition of a new intermediate category has the
potential of making the distinction easier. It also has the potential of preventing or at least
minimizing, the widespread avoidance of responsibilities by employers, which so far has
been authorized by the judiciary. For both advantages to materialize, the term ‘employee’ and
‘workmen’ must be interpreted positively to achieve the goals behind the regulations in
which they are found. These purposes may be best served if courts and tribunals maintain a
distinction between two basic vulnerabilities suffered by people who work for others.
Therefore dependency itself should be used to identify ‘workers’ and trigger the application
of protective labour laws.
It is submitted that uniform definitions in various labour statutes and their simplification is
the prime need of the day so that the time of the industrial adjudication machinery, as also of
the superior courts, is not wasted on adjudicating preliminary issues such as whether a person
is a ‘workman’, whether the dispute in question is an ‘industrial dispute,’ and whether the
activity in question is an ‘industry’. These definitions have become the main litigating areas
consuming time, energy and space of industrial adjudication. The legislative process has
promises to keep if industrial harmony, in tune with distributive economic justice and
continuity of active production, is to be accomplished.
BOOKS:
1. Paul, Meenu. Labour and Industrial laws. Faridabad: Allahabad Law Agency, 2020.
2. Misra, S.N. Labour &Industrial Laws with Latest Amendments. New Delhi: Central
Law publication, 2020.
3. Malik, P.L. Industrial Law (Covering Labour Law in India). Lucknow: Eastern Book
Company, 2017.
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