UNIT -1

Q.1) discuss note on Industrial relations, labour problem and labour policy in India.
Ans- Industrial relations refer to how workers behave in the organizations where they work. Scholars studying industrial relations aim
to understand differences in work conditions, how much say workers have in decision-making, the role of unions and other ways
workers are represented, and how conflicts between workers and employers are resolved. They look at how these interactions affect
the outcomes of organizations, including things like worker satisfaction, job security, organizational efficiency, and the impact on the
community and society. The key roles of industrial relations include:
 Facilitating communication between workers and management for a positive relationship.
 Fostering collaboration between managers and employees.
 Harnessing the positive influence of trade unions to prevent conflicts.
 Protecting the interests of both workers and management.
 Preventing an unhealthy and unethical environment in the industry.
 Developing measures that promote understanding, creativity, and cooperation to boost industrial productivity.
 Ensuring increased participation by workers.

Importance of Positive Industrial Relations

1. Promoting Democracy
Industrial relations involve using collective bargaining to address workers’ issues. This process relies on cooperation and mutual
agreement among all parties involved—democracy in action. This includes management and employee unions working together to
establish industrial democracy, encouraging workers to contribute their best to the organization’s growth and prosperity.
2. Boosting Morale
Positive industrial relations elevate employee morale, inspiring them to work more efficiently.
3. Preventing Conflicts Between Management And Union
Industrial relations help prevent conflicts between unions and management by setting up mechanisms to resolve issues through mutual
agreement. Both parties are bound to this agreement, reducing the likelihood of unfair practices and major conflicts between
employers and trade unions.
4. Reducing Wastage
Maintaining satisfactory industrial relations is based on cooperation and mutual recognition within the department. This approach
helps minimize wastage of material, manpower, and costs.
5. Fostering Economic Growth And Development
Healthy and harmonious industrial relations lead to increased efficiency, prosperity, and reduced turnover, providing tangible benefits
to the organization. This, in turn, contributes to economic growth and development.
As an HR Expert in any company, one must be aware of labour laws and industrial relations. If you are a fresh graduate and seeking a
career in HR management, you must check the Executive Programme in Human Resource Management by IIT Delhi. By blending
theoretical concepts with practical applications, the program seamlessly integrates HR principles and analytics to enhance
organizational effectiveness. Its goals encompass establishing a strong groundwork in HR basics, fostering talent management
proficiency, honing skills in HR data analysis, cultivating leadership capabilities, and offering insights into HR law and ethics. This
initiative empowers professionals to thrive in the field of HR management.
Industrial Relations and Labour Laws in India
The current state of industrial relations and labour laws in India is shaped by the ongoing developments and expansion in the industrial
sector. The growth in this sector has brought about a significant impact on the employment landscape, influencing the economic
conditions of workers and their relationship with organizations. Understanding the intricacies of these laws is not a one-size-fits-all
approach; rather, it requires a thorough examination of empirical and statistical data to comprehend the nuances of labour policies.
Each industry operates under specific rules and regulations that necessitate compliance with both national and regional laws and
policies. On 28th September 2020, the Industrial Relations Code 2020 received the president’s assent. This legislative move aimed to
consolidate the Industrial Disputes Act of 1947, the Industrial Employment (Standing Orders) Act of 1946, and the Trade Unions Act
of 1926. The overarching goal of this code was to bring about benefits for both employers and employees. Here are some advantages
of the Industrial Relations Code 2020:
 Enhancing the efficiency of dispute resolution processes to facilitate amicable solutions and preserve the employer-employee
relationship.
 Safeguarding employees with fixed-term contracts, ensuring protection for those engaged in specific-duration employment.
 Enforcing compliance with established standing orders within industrial establishments.
 Imposing stringent penalties on authorities failing to adhere to regulations, addressing non-compliance issues effectively.
 Fostering a business-friendly environment and providing employers with increased flexibility in decision-making for
smoother operations.
 The maintenance of the nation's output and administration heavily depends on labour. Increasing the nation's contribution to
development, which is directly dependent on its workforce, is the primary responsibility of our government. The lifestyles of
labourers and capitalists, however, are very different. As a result, our government has introduced a number of labour

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 regulations that give workers employment, security, and good working conditions. To provide workers with the necessities of
life and to preserve industrial peace is the primary goal of labour law.
Labour Policy in India

Labour Policy

 Due to the workers' poor economic standing and inability to barter or negotiate with employers, labour legislation is
absolutely important. As a result, time to time, Indian government keep updating and implementing the labour friendly
policy, which intended to provide negotiating power, health services, safety, security, and welfare.
 India's labour strategy has evolved in response to the country's unique circumstances in order to meet the demands of social
justice and planned economic development. Its dual goals are to maintain industrial peace and advance worker welfare. The
recognition and implementation of the strategy for worker engagement were stressed in the second, third, and fifth five-year
plans.

Second Five-Year Plan's Employment Policy

 Since the middle of 1958, a code of discipline in the industry has been in place and has been voluntarily adopted by all
employer and worker organisations. In order to foster positive cooperation between their representatives at all levels, the code
set forth particular requirements for the management and employees. The area of industrial relations has significantly
improved as a result of this new idea of such expansive goals. Man-day losses dramatically decreased from 47 during January
through June 1958 to 19 during July through December 19608.
 Every employee is given the freedom and awards to join the union of his or her choosing, according to the code. A sort of
worker involvement in management has also developed. Councils for joint administration were set up as an experiment. The
Council was tasked with facilitating consultation between employers and employees on a wide range of crucial topics
affecting industrial relations. Additionally, a programme for employee education was put into place. The programme
included training for both working teachers and teacher administrators. The workers' ability to benefit from protective labour
regulations has improved thanks to this initiative, which has also served to boost their self-confidence.

The Third Five-Year Plan's Labour Policies

 The immediate and long-term needs of a planned economy were taken into consideration when designing labour policy. The
goal of India's current labour policy is to achieve full employment and raise the average income of the population. It was kept
in mind what a socialist society would be like. Therefore, as stated in the Third Five Year Plan, the benefits of progress
should be distributed fairly. The Fifth Plan's labour supply projections7 indicate an increase in the labour force of around
18.26 million. As a result, the plan is focused on creating significant employment possibilities.

India's Constitutional Provisions for Labour Policy (Article 43a)

 Furthermore, the 42nd Amendment Act of 1976, which added Article 43A-9 to the Indian Constitution, offered a new
window into industrial relations in contemporary India. The "participation of workers in the management of industries" is
listed. It declares that the state has a responsibility to take action to ensure that employees participate in the administration of
businesses, establishments, or other organisations engaged in any industry by passing appropriate legislation or in another
manner. One of India's most significant social institutions has grown to be labour law. When a nation wants to advance
economically, industrial harmony is a necessity. No country can hope to thrive in the present technological age, much less
grow strong, great, and affluent unless it is committed to industrial development and technological advancement, which may
sound trite but is nonetheless true.

labour problem in india

The Indian labor market is grappling with various challenges that hinder its growth and development. It is crucial for future managers
and policymakers to understand these problems in order to devise effective strategies for addressing them.
This article sheds light on eight major problems in the Indian labor market and highlights the need for reforms to foster a more
inclusive and productive workforce:
1. Surplus Labour Force
India faces a significant challenge of a surplus labor force, primarily due to its rapidly growing population. The continuous addition of
laborers to an already saturated market leads to high levels of unemployment and underemployment.
Future managers need to explore innovative solutions to generate sufficient demand and create employment opportunities for this
surplus labor force.

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2. Unskilled Labor

A pressing issue in the Indian labor market is the prevalence of a large number of unskilled workers. Limited access to vocational
training institutes hampers skill development, making it difficult for these individuals to secure meaningful employment.
Future managers can contribute by supporting skill development initiatives, promoting vocational education, and collaborating with
industry stakeholders to bridge the skill gap.
3. Lack of Absorption of Skilled Labor
Despite the availability of skilled labor in India, the absorption rate remains low. Many technically educated individuals, including
engineering and vocational course graduates, struggle to find suitable employment opportunities.
Future managers should focus on enhancing industry-academia linkages, fostering internships and apprenticeship programs, and
encouraging entrepreneurship to enhance the absorption of skilled labor.
4. Imperfections
The Indian labor market suffers from imperfections such as information asymmetry, inadequate manpower planning, child labor
practices, and a lack of suitable agencies for labor force utilization.
Future managers can contribute by promoting transparency, encouraging responsible business practices, and supporting policies that
ensure fair labor market operations.
5. Work Culture

The work culture among the Indian labor force needs improvement. Unhealthy work practices, low productivity, and lack of discipline
hinder economic growth and reduce absorption capacity.
Future managers should prioritize fostering a positive work culture through effective leadership, employee engagement initiatives, and
fostering a sense of ownership and professionalism among the workforce.
6. Militant Unionism
Militant unionism poses a significant challenge in certain sectors and states of India. Unhealthy practices and militancy within trade
unions hinder harmonious employer-employee relations and can adversely impact productivity and industrial growth.
Future managers should strive for constructive dialogue, promote collaborative decision-making, and foster a cooperative environment
to address this issue.
7. Unemployment
Unemployment remains a critical problem in the Indian labor market. Disguised unemployment, seasonal unemployment, general
unemployment, and educated unemployment are prevalent.
Future managers need to advocate for policies that promote job creation, support entrepreneurship, and invest in sectors with high
employment potential. They should also explore innovative solutions to address specific types of unemployment.
8. Lack of Labor Reforms
The Indian labor market lacks comprehensive labor reforms that are essential for its growth and adaptability. Despite economic
reforms in the 1990s, labor reforms have been relatively slow.
Future managers should actively participate in shaping policy discussions, advocating for rational and progressive labor reforms, and
promoting a balanced approach that considers the interests of both workers and employers.
Q.2- Explain the mode of registration of Trade Union as laid down under Trade Union Act, 1926. Is registration of a trade
Union is compulsory? Whether an un-registered trade union is an illegal association?(2022,23)
Ans.- Sec. 3 Appointment of Registrars:- The appropriate government shall appoint a person to be the Registrar of Trade Unions
for each state. The appropriate government is also authorized to appoint additional and deputy registrars of Trade Unions. The shall
work under the superintendence and direction of the Registrar.
Sec. 4- Mode of Registration:- A Trade Union may be registered, unregistered or a recognized trade union.
Registration of Trade Union is not compulsory ad an un-registered trade Union is a valid association. But there is basic
distinction between these different unions. The members of a recognized and registered Trade Union enjoy such benefits as the
members of an unregistered trade union do not any seven or more members of a Trade Union may apply for registration of the trade
union all the members applying for registration must subscribe their names to the rules of the trade union and also comply with
provisions of the Act relating to registration of union.
Provided that no Trade Union of workmen shall be registered unless at least ten percent or one hundred of the workmen,
whichever is less engaged or employed in the establishment or industry with which it connected are the members of such trade union
on the date of making of application for registration.
No trade union of workmen shall be registered unless it has on the date of making application not less than 7 person as its
members who are workmen engaged or employed in the establishment or industry with which it is connected.
If more than half of the numbers who applied for registration of Trade Union cease to be members of the Trade Union or
dissociate themselves from the application by giving a notice in writing to Registrar before registration is granted to the trade union
the application shall be deemed to have become invalid.
Sec. 5- Application of Registration - According to the provisions of the Act a Trade Union may become a registered Trade Union in
the following manner.
1- An application should be rent to the Registrar in which seven or more members of such union must subscribe their names.

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2- The application in form ‘A’ should be accompanied with a copy of rules of the Trade Union and a statement of the following
particulars:-
(a) The names occupation and addresses of the members making the application.
(b) The name of the Trade Union and the address of its head office.
(c) The title, name, age, address and occupations of the office bearers of the Trade Union.
(d) A general statement of the assets and liabilities of the Trade Union prepared in the prescribed form and containing such
particulars as may be required should be rent with the application to the Registrar.
Sec. 6- Provisions to be contained in the rules of a trade union :- Every registered trade union is required to have written rules
dealing with certain matters specified in schedule II of the central trade union regulations; 1938. These rules generally determine and
govern the relationship between the trade union and it members.
A Trade Union shall be entitled to registration under this Act if:-
1- The executive of the Trade Union is constituted in accordance with the provision of this Act.
2- The rule of Trade Union provide for the following matters:-
(a) The name of the Trade Unions.
(b) The whole of the object for which the Trade Union has been established.
(c) The whole of the objects for which the general funds of the Trade Union shall be applicable
(d) The maintenance of a list of the members of the Trade Union and adequate facilities for the inspection thereof.
(e) The admission of ordinary members who shall be person actually engaged or employed in an industry with which the Trade
Union is connected and also the admission of the number of honorary or temporary members as office bearers.
(f) The payment of a minimum subscription by members of the Trade Union which shall not be less than
(i) One rupee per annum for rural workers.
(ii) Three rupee per annum for workers in other unorganized sectors.
(iii) Twelve rupees per annum for workers is any other case.
(iv) The conditions under which any member shall be entitled to any benefit and under which any fine or forfeiture may
be imposed on the members
(g) The manner in which the rules shall be amended varied or rescinded
(h) The manner in which the members of the executive and other office bearers of the Trade Union shall be elected or removed.
(hh) The duration of period being not more than three years for which the members of the executive and other office bearers of
the Trade Union shall be elected
(i) The safe custody of the funds of Trade Union
(j) The manner in which the trade union may be dissolved.
Sec. 7- Power to call for further particulars and to require alteration of name. The registrar may require the person applying for such
registration to change the name of the Trade Union if its name deceive the public likely to or the members of either trade union. The
registrar may also ask for further information which he thinks necessary for the purpose of satisfying himself.
Sec. 8 – Registration:- The Registrar will register the Trade Union if he is satisfied that the Trade Union has complied with all the
requirements of this Act in regard to registration the registrar shall register the Trade Union by making necessary entries in the register
to be maintained in such form as may be prescribed where the Registrar takes no action on an application for more than three months,
a writ under Art. 226 can be issued commanding the Registrar to deal with the application.
Sec. 9- Certificate of Registration:- The registrar on registering a Trade Union shall issue a certificate of registration in the fore
scribed form which shall be conclusive evidence that the Trade Union has been duels registered under this Act.

Q.3- Define Trade dispute and discuss provisions relating to criminal conspiracy in trade dispute and immunity from civil
suit in certain cases under the Trade Union Act 1926. Refer to decided cases. (2023)
Ans. Sec. 17. Criminal conspiracy in Trade Disputes—
Section 17 of the Act confers immunity from liability in case of criminal conspiracy under section120-B of the Indian Penal
Code committed by an office bearer or member of a registered Trade Union. The protection provided to members or officer bearers of
a registered Trade Union is partial in the sense that the immunity is available only in respect of agreements made between the
members for the purpose of furthering any legitimate object of the Trade Union as provided in section 15 of the Act. If the agreement
is an agreement to do an act which is an offence, no immunity can be claimed. The effect of section 17 of the Act is that an agreement
or combination of two or more members of the registered Trade Union to do or cause to be done any act in furtherance of a Trade
dispute shall not be punishable as a conspiracy unless such act, if committed by an individual, constitutes an office. Registered Trade
Unions have certain rights to do in furtherance of their trade disputes, such as to declare strike and for that purpose to persuade their
members to abstain from their work.
In West India Steel Company Ltd. v. Azeez, a Trade Union leader obstructed work in the factory for five hours protesting
against deputation of workman to work in another section. It was held that a worker inside the factory is bound to obey the reasonable
instructions given by his superiors and carryout the duties assigned to him. The mere fact that such worker is a Trade Union leader
does not confer on him any immunity in that regard. A trade union leader has no right in law to share managerial powers and he
cannot dictate any worker individually or to the workmen generally about the manner in which they have to do their work or discharge
their duties. A Trade Union can espouse the cause of the workers and can resort to lawful agitations for conducting their rights but
officials of Trade Union are not entitled to order a workman to stop his work or otherwise obstruct the work of the establishment.

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Where officials of a Trade Union obstruct the work the management is justified. Where officials of a Trade Union obstruct the work
the management is justified in proceeding against such worker and deal with him effectively.
Sec. 18. Immunity from civil suits in certain cases.—Section 18 of the Trade Unions Act deals with the immunity from civil
proceedings afforded to a registered Trade Union, and to its members or officer bearers. A person is liable in Torts for deliberately
bringing about a breach of contract of employment between the employer and the employee. But a registered Trade Union, its
members or officer bearers are protected from being sued for inducing a person to break his contract of employment or for interfering
with the trade, business or employment of some other person, provided such inducement is in contemporary or furtherance or a trade
dispute.
Section 18(1) of the Act provides that no suit or other legal proceeding shall be maintainable in any Civil Court against any
registered Trade Union or any office bearer or member thereof 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 an interference with the trade, business or employment of some other person or with the right of
some other person to dispose of his capital or of his labour as he wills. In this sub-section emphasis is on the word “only” which
means the protection is limited only to the grounds of action ability provided in this sub-section, and a registered union, its members
or office bearers shall be liable for any act not covered by this clause. There shall be no immunity if threats, violence or other illegal
means are employed.
Section 18(2) of the Act provides that a registered Trade Union shall not be liable in any suit or other legal proceeding in any
Civil Court in respect of any tortuous act done in contemplation or furtherance of a trade dispute by an agent of the Trade Union if it is
proved that such person acted without the knowledge of, or contrary to, express instructions given by the executive of the Trade
Union.
It was held in Ram Singh and others v. M/s Ashoka Iron Foundry and others, that a suit for perpetual injunction
restraining the workmen from indulging in unfair labour practice is deemed as one of civil nature and hence cognizable under Section
9 of the Civil Proceedure Code. Therefore, where the court has barred the workmen from holding meeting, dharna and interfering in
the rights of a company such a restrain does not curtail the just trade union activities of the workers. It cannot be construed as unjust
and the workmen are at liberty of carry on legitimate trade union activitites peacefully.

UNIT-2
Q.1- Define ‘ Industry’ under the industrial disputes Act 1947 with reference to hospitals the approach of the
Supreme Court from Mazdoor Sabah to Safdarjang hospital cases is contradictory explain.(2023)
Ans. 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 in two parts. The first says that industry means any business, trade, undertaking, manufacture, or calling of
employers and the second part provides that it include any calling, service, employment, handicraft, or industrial occupation or
avocation of workmen.
Is hospital an industry- The question whether hospital is an industry or not has come for determination by the Supreme Court on a
number of occasions and the uncertainty has been allowed to persist because of conflicting judicial decisions right from Hospital
Mazdoor Sabah case to the Bangalore Water Supply v. A. Rajappa. In State of Bombay v. Hospital Mazdoor Sabah case, the Hospital
Mazdoor Sabah was a registered Trade Union of the employees of hospitals in the State of Bombay. The services of two of its
members were terminated by way of retrenchment by the Government and the Union claimed their reinstatement through a writ
petition. It was urged by the State that the writ application was misconceived because hospitals did not constitute an industry. The
groups of hospitals were run by the State for giving medical relief to citizens and imparting medical education. The Supreme Court
held the group of hospitals to be industry and observed as follows:
(1) The State is carrying on an ‘undertaking’ within Section 2(j) when it runs a group of hospitals for purpose of giving medical
relief to the citizens and for helping to impart medical education.
(2) An activity systematically or habitually undertaken for the production or distribution of goods or for the rendering of
material services to the community at large or a part of such community with help of employees is an undertaking.
(3) It is the character of the activity in question, which attracts the provisions of Section 2(j). Who
conducts the activity and whether it is conducted for profit or not make a material difference.
(4) The conventional meaning attributed to the words, ‘trade and business’ has lost some of its validity for the purposes of
industrial adjudication…it would be erroneous to attach undue importance to attributes associated with business or trade in
the popular mind in days gone by.
Applying the above principles an Ayurdedic College of Pharmacy manufacturing medicines for sale and for benefit of students
of the college besides other activities of college was held to an industry. Hospital Mazdoor Sabha case was over ruled by Safdarjung
Hospital case. But Safdarjung Hospital and Dhanraj Giri Hospital cases have now been overruled in Bangalore Water Supply v. A.
Rajappa and Hospital Mazdoor Sabha case has been rehabilitated. In Management of Safdarjung Hospital, Delhi v. Kuldip Singh Kurji
Holy Family Hospital was held not be an industry because that was entirely charitable institution carrying on work of training,
research and treatment. Similarly, Safdarjung Hospital, New Delhi, and Tuberculosis Hospital, New Delhi were also held not to be
industry.

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 In Management of Hospitals, Orissa v. Their Workmen it was held that “hospital run by the Government as a part of its function
is not an industry. Hospitals run by the State of Orissa are places where persons can get treated. They are run as departments of
Government. The mere fact that payment is accepted in respect of some beds cannot lead to the inference that the hospitals are run as a
business in a commercial way. Primarily, the hospitals are meant as free service by the Government to the patients without any profit
motive.”
In Dhanrajgiri Hospital v. Workmen, it was held that Dhanrajgiri Hospital, Sholapur was not an industry because it was not
carrying on any economic activity in the nature of trade or business. But in view of the decision of the Supreme Court in Bangalore
Water Supply v. A. Rajappa Dhanrajgiri Hospital case has been overruled and all hospitals fulfilling the test laid down in Bangalore
Water Supply case will be industry.
In Keraleeya Ayurvedic Samajam Hospital and Nursing Home, Shoranpur v. Workmen, the Ayurvedic Institute was registered
under the Registration of Societies Act. It was running a hospital, nursing home and an Ayurvedic School. It was held to be an
industry for the following reasons: “(i) It was engaging employees in its different
departments; (ii) The institution where Ayurvedic medicines were prepared was registered as a factory under the Factories Act; (iii)
For the services, rendered by way of treatment, fee was charged from citizens, and (iv) The establishment was organized in a manner
in which trade or business was undertaken.”
Thus on an analysis of the entire case law up to Bangalore Water Supply case on the subject it can be set that such Hospital as are run
by the Government as part of its sovereign functions with the sole object of rendering free service to the patients are not industry. But
all other Hospitals, both public and private; whether charitable or commercial would be industry if they full fill the triple test laid
down in Bangalore Water Supply v. A. Rajappa.
Q.2- Discuss the constitution, procedure, powers and duties of industrial Tribunals under the Industrial Dispute Act 1947.
Can industrial tribunals give appropriate relief in case of discharge or dismissal of workmen?(2023)
Ans. Section 3. Works Committee—
The Works Committee is an authority under the Act. The following are the duties of the Works Committee:
(a) To promote measures for securing and preserving amity and good relations between the employers and workmen;
(b) To achieve the above object, it is their duty to comment upon matters of common interest or concern of employers and
workmen;
(c) To endeavor to compose any material difference of opinion in respect of matters of common interest or concern between
employers and workmen.
The main purpose of creating the Works Committee is to develop a sense of a partnership between the employer and his
workmen. It is a body which aims to promote good-will and measures of common interest. This section is applicable only to
such industrial establishment in which one hundred or more workmen are employed, or to an establishment in which a
minimum of one hundred workmen have been employed on any day in the preceding twelve months.
Section 4. Works Committee—
The Appropriate Government may by notification in the Official Gazette, appoint conciliation officers. These officers are
charged with the duty of mediating in any promoting the settlement of industrial disputes. The Appropriate Government may appoint
one or more conciliation officers, as it thinks fit. A conciliation officer may be appointed for a specified area or for specified industries
in a specified area, or for one or more specified industries. The appointment may be made either permanently or for a limited period.
The jurisdiction, powers and other matters in respect of the conciliation officer shall be published in the Official Gazette.
Section 5. Boards of Conciliation —
The provision for appointment of Boards of Conciliation is made under the Act to bring the two parties to a dispute to sit
together and thrash out their difference and to find out ways and means to settle them. Section 5 of the Act provides that the
Appropriate Government may, by notification in the Official Gazette, constitute a Board of Conciliation. The object of appointing the
Board is promotion of settlement of an industrial disputes. A Board shall consists 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 present
the parties to the disputes. Any person appointed to represent a party shall be appointed on the recommendation of that party. If any
party fails to make a recommendation within the prescribed time, the Appropriate Government shall appoint such persons as it thinks a
fit to represent that party. A Board, having the prescribed quorum may act even though the Chairman, or any of its members is absent
or there is any vacancy in its number. But, if the Appropriate Government notifies the Board that the services of Chairman or of any
other member have ceased to be available, the Board shall not act until a new Chairman or member, as the case may be, has been
appointed.
It is to be noted that the Chairman must be an “independent person” which means a person unconnected with the industrial
dispute or with the industry affected by such dispute. Of course the Appropriate Government is vested with the discretion to appoint
the Board of Conciliation, whenever there is an occasion for such appointment on the arising of industrial dispute. The Board as stated
above is appointed with a view to promote the settlement of industrial dispute.
The appointment of the Conciliation Board together with the names of the persons constituting the Board shall be notified in
the Official Gazette.
Section 6. Courts of Inquiry—
If any matter is referred to a Court by the Appropriate Government, it shall inquire and make a report ordinarily within a
period of six months from the commencement of inquiry. Section 6 (1) points out that if “occasion arises” the Appropriate

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Government may constitute a Court of Inquiry. The purpose of constitution of Court of Inquiry is to inquire into any matter appearing
to be connected with or relevant to an industrial dispute. The purpose of constitution of Court of Inquiry is to inquire into any matter
appearing to be connected with or relevant to an industrial dispute. The constitution of the Court has to be notified in the Official
Gazette. Thus it is clear that the proper occasion for appointment of a Court of Inquiry will be arising of an industrial dispute and
necessary inquiry into any matter connected with or relevant to such dispute. The Court shall not inquire into the industrial dispute
itself.
Section 6 (2) says that a Court may consist of one independent person or such number of independent persons as the
Appropriate Government thinks fit. Where a Court consists of two or more members, one of them shall be appointed as a Chairman. If
the Court has the prescribed quorum it may act. The fact that the Chairman or any other member is absent or the existence of any
vacancy in the Court shall not debar the Court from functioning provided the quorum exists. But if the Appropriate Government
notifies the Court that the services of the Chairman have ceased to be available the Court shall not act until a new Chairman has been
appointed. The appointment of a Court together with the names of persons constituting it shall be notified in the Official Gazette.
Section 7. Labour Court —
The power of appointment of a Labour Court under Section 7 of the Act is vested with the Appropriate Government. The
Appropriate Government may constitute one or more labour Courts. The constitution of the Labour Court together with names of
persons constituting the Labour Court should be notified in the Official Gazette. The functions of the Labour Court as provided in the
Act are :
(i) Adjudication of industrial disputes relating to any matter specified in the second Schedule;
(ii) Performing of such other functions as may be assigned to them under this Act.
The following matters are specified in the Second Schedule, namely:
(i) The propriety or legal of any order passed by an employer under the standing Orders;
(ii) The application and interpretation of Standing Orders;
(iii) Discharge or dismissal of workmen, including reinstatement of, or grant of, or relief to, workmen wronglfully dismissed;
(iv) Withdrawal of any customary concession or privilege;
(v) Illegality or otherwise of a strike or lock-out;
(vi) All matters other than those specified in the Third Schedule.
According to Section 7 (2) a Labour Court shall consisit of one person only, who shall be appointed by the appropriate Government.
The qualifications of a person who can be appointed as presiding officer of the Labour Court are mentioned in sub-section (3) of
Section 7 as follows:
(a) he is, or has been, a judge of a High Court; or
(b) he has, for a period of not less than three years, been a District Judge or an Additional District Judge; or
(c) omitted.
(d) he has held any judicial office in India for not less than seven years; or
(e) he has been the presiding officer of a Labaour Court constituted under any Provincial Act or State Act for not less than five
years.
(f) he is or has been a Deputy Chief Labour Commissioner (Central) or Joint Commissioner of the State Labour Department,
having a degree in law and at least sever years’ experience in the labour department including three years of experience as
Conciliation Officer :
Provided that on such Deputy Chief Labour Commissioner or Joint Labour Commissioner shall be appointed unless he resigns from
the service of the Central Government or State Government, as the case may be, before being appointed as the presiding officer; or
(g) he is an officer of Indian Legal Service in Grade III with three years’ experience in the grade.”
Section 7-C prescribes disqualifications of the presiding officer of a Labour Court.

Section 7-A. Tribunals—In our country the Industrial Tribunals were fore the first time created by the Industrial Disputes Act,
1947. Commenting upon the status of these tribunals the Supreme Court has observed that the tribunals under the Act are invested
with many trappings of a Court but do not have the same status as Courts. These Tribunals need not follow the strict technicalities of
law in adjudication of industrial disputes.
The power to constitute Industrial Tribunal is conferred upon the Appropriate Government, be constituted. It is the duty of
the Tribunal to adjudicate upon any industrial dispute relating to any matter, whether specified in the Second Schedule or the Third
Schedule. These tribunals shall perform such other functions as may be assigned to them under this Act.
The Tribunal shall consist of one person only, who shall be appointed by the State Government. Any person having one of
the following qualifications may be appointed as the presiding officer of the Industrial Tribunal, namely:
(a) if he is, or has been, a judge of a High Court; or
(aa) if he has for a period of not less than three years, been a District Judge or an Additional District Judge.
(b) he is or has been a Deputy Chief Labour Commissioner (Central) or Joint Commissioner of the State Labour Department,
having a degree in law and at least seven years’ experience in the labour department including three years of experience as
Conciliation Officer:
Provided that no such Deputy Chief Labour Commissioner or Joint Labour Commissioner shall be appointed unless he
resigns from the service of the Central Government or State Government, as the case may be, before being appointed as the
presiding officer; or

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 (c) he is an officer of Indian Legal Service in Grade III with three years’ experience in the grade.”
It is provided by Section 7-A (4) that the appropriate Government, if it thinks fit, may appoint two persons as assessors to
advise the Tribunal in the proceedings before it.
These Tribunals are important for many practical reasons. First, only experienced persons of high integrity can be
appointed as presiding officer of the Tribunal as stated above. Secondly, almost any important matter can be submitted for
adjudication to the Tribunal including questions relating to wages, bonus, provident fund, gratuity and dismissal, etc. Thirdly,
the Tribunals enjoy unlimited powers so long as they act within the scope of their authority.
Powers—The Tribunal is a judicial body or at any rate a quasi-judicial body. Therefore, a Tribunal must serve notice upon
the parties of the reference by name and any award made without serving such notices is fundamentally wrong. It could make
a suitable award for bringing about harmonious relations between the employers and workmen and can direct reinstatement
of a workman if it is necessary in the interest of industrial peace. The Tribunal while arriving at a finding in a matter may rely
on date available to it otherwise than from evidence adduced on behalf of the parties.

Section 7-B. National Tribunals—

(1) Unlike the other authorities under the Act the National Tribunals can only be constituted by the Central Government.
The power is to be exercised by issuing of notification in the Official Gazette. The name of the person constituting the
National Tribunal shall also be notified in the Official Gazette. The Central Government may constitute one or more
Tribunals. National Industrial Tribunals are constituted for the adjudication of industrial dispute, which in the opinion of
the Central Government (i) involves question of national importance or (ii) are of such a nature that the industrial
establishments situated in more than one State are likely to be interested in or affected by such dispute. It is sole
discretion of the Central Government to decide that the industrial dispute involves a question of national importance or
industrial establishments situated in more than one State are interested in or affected by the dispute.
(2) A National Tribunal shall consist of one person to be appointed by the Central Government.
(3) A person shall not be qualified for appointment as the presiding officer of National Tribunal unless he is or has been a
Judge of a High Court.
(4) The Central Government may, if it thinks fit, appoint two persons as assessors to advise the National Tribunal in the
proceeding before it.
Section 7-C. -- Disqualification for the presiding officers of Labour Courts, Tribunals and National Tribunals—No person
shall be appointed to, or continue in the office of the presiding officer of a Labour Court, Tribunal or National Tribunal, if—
(a) he is not an independent person; or
(b) he has attained the age of sixty-five years.
The moment any person suffers from any disqualification, he shall cease to have authority to act in the office
concerned. Only those persons who do not suffer from the disqualifications stated above can be appointed to fill in any
vacancy under Section 8 of the Act.
Section 8 Filling of vacancies—If a vacancy occurs in the office of the Presiding Officer of a Labour Court, or Tribunal, or in the
office or the chairman or any other member of a Board or Court the Appropriated Government shall appoint another person in
accordance with the provisions of this Act to fill in the vacancy. Any vacancy in the office of Presiding Officer of a National Tribunal
shall be filled in by the Central Government in the like manner. After the vacancy is filled, the proceeding may be continued before
the Labour Court, Tribunal, National Tribunal, Board or Court, as the case may be, from the stage at which the vacancy is filled. It is
provided by Section 8 off the Act that only a vacancy other than a temporary absence shall be filled in accordance with the provisions
of this Act. It means that the temporary absence shall not be considered a vacancy for the purpose of this section. Therefore, a vacancy
shall mainly arise due to transfer, resignation or acquisition of any disqualification as provided in Section 7-C of the Act.
According to the latter part of Section 8 proceedings, after filling in the vacancy, may be started from the stage at which the
vacancy is filled. But where a tribunal constituted under Section 7-A of the Act could not dispose of some references, and a new
Tribunal was constituted by the Government the proceeding must be commenced again and not started as provided for by Section 8 of
the Act.

UNIT -3
Q.1- What are the rights of a laid off workman to claim compensation? Under what circumstances a workman is not entitle to
claim compensation? (2023)
Ans. “Lay-off” (with its grammatical variations and cognate expressions) 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 break-down 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;
Explanation : Every workman whose name is borne on the muster-rolls of the industrial establishment and who presents himself for
work at the establishment at the time appointed for the purpose during normal working hours on any day and is not given employment
by the employer within two hours of his so presenting himself shall be deemed to have been laid off for that day within the meaning of
this clause:

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 Provided that if the workman, instead of being given employment at the commencement of any shift for any day, is asked to
present himself for the purpose during the second half of the shift for the day and is given employment, then, he shall be deemed to
have been laid off only for one half of that day:
Provided further that if he is not given any such employment even after so presenting himself, he shall not be deemed to
have been laid off for the second half of the shift for the day and shall be entitled to full basic wages and dearness allowance for that
part of the day:

Right of workmen laid off for compensation.

Whenever a workman (other than a badli workman or a causal 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 any
intervene, compensation which shall be equal to fifty percent of the total of the basic wages an dearness allowance that would have
been payable to him had he not been so laid off:
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 I respect of any period of the lay-off after the expiry of the first forty-five days, if there is an agreement
to that effect between the workman and the employer.
Provided further that it shall be lawful for the employer in any case falling within the forgoing proviso to retrench the
workman in accordance with the provisions contained in section 25 F at any time after the expiry of the first forty five days of the lay-
off and which he does so, any compensation paid to the set off against the compensation payable for retrenchment.
Explanation: “Badli workman” means a workman who is employed in an industrial establishment in the place of another
workman whose name is borne on the muster rolls of the establishment, but shall ceased to be regarded as such for the purposes of this
section, if he has completed one year of continuous service in the establishment.
Workmen not entitled to compensation in certain cases.
25E. No compensation shall be paid to a workman who has been laid off--
(i) if he refuse to accept any alternative employment I 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 , in the opinion of the employer, such alternative employment does not call for any special skill
or previous experience and can be done by the workman provided that the wages which would normally have been paid to the
workman are offered for the alternative employment also;
(ii) if he does not present himself for work at the establishment at the appointed time during normal working hours at least one a day;
(iii) 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.

Q.2- Define strike and discuss the essential requirements of a legal strike with the help of decided cases under the
Industrial Dispute Act 1947. (2023)
Ans. Strike is collective stoppage of work by workmen undertaken in order to bring pressure upon those who depend on the sale or
use of the products of word. Ludwig Teller in his book, “Labour Disputes and Collective Bargaining” opines that “the word ‘Strike’ in
its broad significance has reference to a dispute opines that “the word ‘Strike’ in its broad significance has reference to a dispute
between an employer and his workers, in the course of which there is a concerted suspension of employment. Because it is an
expensive weapon the strike is generally labour’s last resort in connection with industrial controversies.”
Section 22. Prohibition of Strikes and lock-outs—Section 22 of the Act deals with the prohibition of strikes and lock-outs. This
section applies to the strikes or lock-outs in industries carrying on public utility service. Strike or lock out in this section is not
absolutely prohibited but certain requirements are to be fulfilled by the workmen before resorting to strike or by the employers before
locking out the place of business. Conditions laid down in Section 22 (1) are to be fulfilled in case of strike in any public utility
service and conditions as laid down in Section 22 (2) are to be fulfilled in case of any lock-out by the employer carrying or any public
utility service. The intention of the legislature in laying down thee conditions was to provide sufficient safeguards against a sudden
strike or lock-out in public utility services lest it would result in great in convenience not only to the other party to the dispute but to
the general public and the society.
Section 22 (1) provides that no person employed in public utility service shall go on strike in breach of contract:
(a) Without giving to the employer notice of the strike within six weeks before striking; or
(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 proceeding before a Conciliation Officer and seven days after the conclusion of such
proceedings.
It is to be noted that these provisions do not prohibit the workmen from going on strike but require them to fulfill the
conditions before going on strike. Further these provisions apply to a public utility service only and not to a non-public utility service.
Notice of strike within six weeks before striking is not necessary where there is already a lock-out in existence. Notice may
be given by the Trade Union or representatives of the workmen elected to do so. A notice of strike shall not be effective after 6 weeks
from the date it is given. So, the strike must be commenced within than period.
Section 22 (2) lays down that no employer carrying on any public utility service shall lock-out any of his workmen—
(a) Without giving them notice of lock-out as hereinafter provided with six weeks before locking out; or

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 (b) Within fourteen days of giving such notice; or
(c) Before the expiry of the date of lock-out specified in any such notice as aforesaid; or
(d) During the pendency of any conciliation proceeding before a Conciliation Officer and seven days after the conclusion of
such proceedings.
Section 22 (3) provides that the notice of strike or lock-out as provided by sub-sections (1) and (2) may in certain cases be
dispensed with
1. No notice or strike shall be necessary where there is already in existence a lock-out in the public utility service
concerned.
2. No notice of lock-out shall be necessary where there is already in existence a strike in the public utility service
concerned.
The employer shall send intimation of strike or lock-out on the day on which it is declared to the specified authority. The
authority to whom the above intimation is required to be sent shall be specified by the Appropriate Government either generally or for
a particular area or for a particular class of public utility services. Sub-Section (3) is in the nature of an exception of sub-sections (1)
and (2) of Section 22.
Section 22 (4) says that the notice of strike shall be given by such number of persons to such person or persons in such
manner as may be prescribed.
Section 22 (5) provides that the notice of lock-out shall be given in such manner as may be prescribed.
Section 22 (6) deals with the intimation of notices given under sub-section (1) and (2) to specified authorities. If on any
day an employer receives from any person employed by him any such notice as is referred to in sub-section (1), he shall within five
days report to the Appropriate Government or to such authority as that Government may prescribe, the number of such notices
received on that day. Similarly, if an employer gives any notice as is referred to in sub-section (2) to any person employed by him, he
shall report this fact within five days to the Appropriate Government or to such authority as the Government may prescribe.
Prohibition of Strike—Where a strike has commenced during the pendency of conciliation proceedings, and the
workmen, pleaded that the strike was provoked by the employer, it was held that the fact that the strike or lock-out was provoked by
the opposite party will not absolve the person, going on strike or declaring lock out-of the duty of complying with the requirements of
Section 22 and 23 of the Act.
The words ‘no person’ appearing in this sub-section refer to workmen because no one other than a workman is likely to
go on strike in an industry. It must further be proved that the workmen were employed in an industry which was a public utility
service within the meaning of Section 2 (n). A company was running three units namely (i) Cotton Textile weaving unit, (ii) Silk Unit,
and (iii) Art silk products manufacturing unit. The Cotton Textile industry was declared a public utility service by the Appropriate
Government. About 230 workmen, working in the silk unit went on strike. The company did not show that the concerned workmen, at
the time of strike or prior to that, had ever worked in cotton weaving mill. There was no evidence to the effect that the workmen under
their terms and employment were required to work in the cotton ill or silk mill as required. No work in the Cotton textile section was
ever assigned to any of the concerned workmen. On the basis of the above evidence it could not be held that the concerned workmen
were employed at the time of strike in public utility service’ within the meaning of Section 2 (n) and for the purpose of Section 22 of
the Act. It was for the employer company to prove by clear and cogent evidence that the workmen under the conditions of service
could be asked to work in the cotton weaving mill when required.
The expression “in breach of the contract” means breach of contract of service of employment whether the contract is express
or implied. There can be no contract not to go on strike, and even if such a contract exists it cannot from a part of the valid contract of
service. Contract of employment implies to work according to the rules of the contract in which the workman is employed. Breach of
contract does not mean breach of a condition of service.
Breach of provisions of Section 22 or 23 of the Act attracts penal liability under Section 26 of the Act. Therefore, in order to
hold a person liable two things must be proved by the prosecution:
(i) That the strike took place in a concern which is a public utility service within the meaning of Section 2 (n) of the Act,
and
(ii) That the strike was in breach of contract of service of the striking workmen.
Meaning of the terms “within six weeks before striking” and “within fourteen days of giving such notice”.—Taking the two
provisions together it means that a person employed in a public utility service may go on strike on giving to the employer a notice of
strike provided:
(i) The strike takes place within 6 weeks of the giving of notice; and
(ii) 14 days have expired after such notice.
Thus strike can take place only when 14 days have passed but before 6 weeks have expired after giving such notice. This
minimum period of fourteen days after notice within which workmen are prohibited to go on strike is prescribed with a view to give
some time to the employer to look into the charter of demands of the workmen and also to give time to the Labour Department of the
Government to intervene so as to avoid strike by finding out some compromise formula. Neither the employee is restrained from
going on strike nor the employer is restrained from locking out the industry but some minimum conditions before striking or locking
out are required to be fulfilled, otherwise the stoppage of work in a public utility concern may result in inconvenience to the society.
Therefore these safeguards were felt necessary to be provided by the Legislature.
During the pendency of conciliation proceedings—This expression is used in Section 22 (1) (d), and Section 22 (2) (d). A
conciliation proceeding means a proceeding before a Conciliation Officer. Where a conciliation proceeding was pending and one the

Page 10
Unions of the workmen was a party to it, it was held by the Supreme Court that the settlement according to Section 18 (3) will bind
not only those workmen who are members of this Union but to all workmen working in the establishment. Therefore, if the proceeding
relates to a matter concerning all the employees its pendency would be a bar against all the employees.
Section 23. General prohibition of strikes and lock-outs—The prohibition against strikes and lock-outs contained in
Section 23 is general in nature. It applies to both public utility as well as non-public utility establishments. A strike in breach of
contract by workmen and lock-out by the employer is prohibited in the following cases:
(i) during the pendency of conciliation proceedings before a Board and seven days after the conclusion of such proceedings;
(ii) during the pendency of proceedings before a Labour Court, Tribunal or National Tribunal, and two months after the
conclusion of such proceedings;
(iii) during the pendency of arbitration proceedings before an arbitrator and two months after the conclusion of such
proceedings, where a notification has been issued under sub-Section (3-A) of Section 10-A, or
(iv) During any period in which a settlement or award is in operation in respect of the matters covered by such
settlement or award.
Section 22 and 23 compared—(i) Section 22 applies to public utility concerns only, Section 23 is applicable to both public
utility as well as non-public utility concerns. (ii) Section 23 does not prohibit strike or lock-out during the pendency of conciliation
proceeding before a Conciliation Officer, Section 22 does so, (iii) Under Section 22 notice of strike or lock-out is necessary, under
Section 23 no such notice is required, (iv) Both Sections 22 and 23 are applicable to public utility service, but Section 23 applies to
non-public utility services only. Section 22 is not applicable to non-public utility services. Therefore in case of strike or lock-out in a
public utility service prohibitions contained in Section 22 as well as Section 23 apply. As no notice in case of a non-public utility
service is necessary, a sudden strike is not prohibited under this Act in such concerns.
Q.4- What Are The Provisions Of Industriyal Dispute Act 1947 Relating To Retrenchment ?(2023)
ANS- The Industrial Dispute Act, 1947, was enacted to solve industrial conflicts and maintain peace between employers and
employees. Retrenchment is one of the important factors relating to industrial disputes. This Act helps in negotiating and
resolving conflicts in the workplace. It was formulated to protect employees from exploitation by employers. It was
implemented for retrenching the workers and the employees due to financial and business factors. Retrenchment is the
process of letting go of employees by employers, not due to conflicts taking place but for economic reasons. The employers
are retrenched only after prior permission from the government.
Meaning of retrenchment
The meaning of retrenchment is to terminate employees or workmen by the employer for economic reasons. This termination of their
services is not done as a punishment or disciplinary action but on the ground of surplus labour or the financial position of the
business or company. This removal or discharge of a worker from work by the employer is known as retrenchment. It denotes
the end of the employer-employee relationship.
Definition of retrenchment
Retrenchment is defined in Section 2(oo) of the Industrial Dispute Act, 1947. According to the definition, retrenchment means the
termination of the service of a workman by an employer for any reason whatsoever, other than as a punishment inflicted by
way of disciplinary action’. There are certain factors that do not fall under the definition of retrenchment, which are as
follows:
If the workman or employee voluntarily retires.
If the workman or employee retires after reaching the age of superannuation because of a provision of an agreement relating to
superannuation that was made between the employer and the employee at the time of his employment.
If the termination of employment of the workman or employee took place due to the non-renewal of the employment agreement.
If the termination of employment occurs due to the continuous ill-health of the workman or employee.
Therefore, retrenchment is considered an employee’s end of service due to financial or business constraints, restructuring of the
company, advancements of technologies, downsizing, discontinuation of a specific unit, and so on.
Object of retrenchment in Labour Law
The main object of retrenchment is to terminate employees when an establishment faces financial constraints and is forced to
downsize its number of employees. The companies retrench the employees due to the surplus labour and to cut down on the
expenditure on human resources. The purpose of retrenchment is to:
reduce the outgoing money, or
cutting down the expenditure, or
attempting to become more financially solvent.
Retrenchment also takes place when an industry faces difficulties paying the wages of its employees. During that time, they decide to
remove the employees from their services.
Requirements for a valid retrenchment in Labour Law
The requirements of valid retrenchment in labour law are mentioned in Section 25F of the Industrial Dispute Act, 1947. These
conditions are applicable only when the employee has completed one year of his service on the job. The prerequisites for
valid retrenchment in labour law are as follows:
Notice to the employees: Before retrenching the employees from their services, it is necessary to issue a written notice at least one
month before the retrenchment comes into force. The notice must contain the reason for retrenchment. The employees can be
removed only after notice has been provided to them and not before that.

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No requirement of notice if an agreement already specifies the date of termination: In case, there exists an agreement that already
mentions the date of termination of employment for the employees, it is not required to give notice to them before
retrenchment from their services.
Compensation for retrenchment: In case, the employer fails to send the retrenchment notice to the employees, he will be liable to pay
compensation to the employees for this failure. The compensation should be given on the basis that it is equal to fifteen days’
earnings for each year of continuous employment, or any portion of it longer than six months.
Notice to be served on the appropriate authority: Before retrenching the employees from their jobs, it is necessary to notify the
appropriate government or authority. The notification must be served in the prescribed manner, as stated in the official
gazette.
Adherence to notice regulations: The notice that has been provided to the employees must be in accordance with the provisions of
Rule 76 of the Industrial Disputes (Central) Rules, 1957, as it governs the notice of retrenchment in Labour Law.
While retrenching the employees from their services, the employer must act within the limitations imposed by the law, which are as
follows:
The intention should be bona fide.
The employees must not be victimised.
The law in force should not be violated by the employer.
Procedure for retrenching employees
The procedure for retrenching employees from their services is based on the concepts of ‘first come, last go’ and ‘last come, first go’.
This principle is mentioned in Section 25G of the Industrial Disputes Act, 1947. There are certain factors based on which the
employee can seek procedural protection, which are as follows:

 Prescribed qualification: An employee who wants to seek protection must have the appropriate qualification as
prescribed in Section 2(s) of the Act.

 Citizenship: The employee needs to be a citizen of India. Indian citizenship is an important factor.

 Employment of the employees in an industry: The employee must be an employee of an industry. In other words, he
must be employed in an establishment in accordance with the provisions of Section 2(j) of the Act.

 Specific category of workforce: The employee needs to be a member of a particular workforce in an establishment.

 Non-existence of a retrenchment contract: The employee who wants to seek protection under Section 25G must not
have a prior retrenchment agreement with the employer of that industry.
If the above conditions are satisfied, the employee will get procedural protection under this section of the Act.

Q.4- Discuss the appointment powers and functions of certifying officer under Industrial Employment standing order Act
1946. Where does an appeal lie against the order of certifying officer?

Ans. Sec. 2 (c) Certifying officer:- The following are said to be certifying officers under this Act (1) A labour commissioner or (2) A
regional Labour commissioner or any other officer appointed by the appropriate govt. by notification in the official gazette to perform
all or and of the functions of a certifying officer under .
Submission of draft standing orders.
(1) Within six months from the date on which this Act becomes applicable to an industrial establishment, the employer shall
submit to the Certifying Officer five copies of the draft standing orders proposed by him for adopting in his industrial
establishment.
(2) Provision shall be made in such draft for every matter set out in the schedule which may be applicable to the industrial
establishment, and where model standing orders have been prescribed, shall be, so far as is practicable, conformity with such
model.
(3) The draft standing orders submitted under this section shall be accompanied by a statement giving prescribed particulars of
the workmen employed in the industrial establishment including the name of the trade union, if any to which they belong.
(4) Subject to such conditions as may be prescribed, a group of employers is similar industrial establishments may submit a joint
draft of standing orders under this section.
Conditions for certification of standing orders.
Standing orders shall be certifiable under this Act if—
(a) Provision is made therein for every matter set out in the Schedule which is applicable to the industrial establishment, and
(b) The standing orders are otherwise in conformity with the provisions of this Act;
and it [shall be the function] of the Certifying Officer or appellate authority to adjudicate upon the fairness or reasonableness of the
provisions of any standing orders.

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Certification of standing orders.
(1) On receipt of the draft under section3, the Certifying Officer shall forward a copy thereof to the trade union, if any, of the
workmen, or where there is no such trade union, to the workmen in such manner as may be prescribed, together with a notice
in the prescribed form requiring objections, if any, which the workmen may desire to make to the draft standing orders to be
submitted to him within fifteen days from the receipt of the notice.
(2) After giving the employer and the trade union or such other representatives of the workmen as may be prescribed an
opportunity of being heard, the Certifying Officer shall decide whether or not any modification of or addition to the draft
submitted by the employer is necessary to render the draft Standing Orders certifiable under this Act, and shall make an order
in writing accordingly.
(3) The Certifying Officer shall thereupon certify the draft standing orders after making any modification therein which his order
under sub-section (2) may require, and shall within seven days thereafter send copies of the certified standing orders
authenticated in the prescribed manner and of his order under sub-section (2) to the employer and to the trade union or other
prescribed representatives of the workmen.
Appeals.
(1) Any employer, workman, trade union or other prescribed representatives of the workmen] aggrieved by the order of the
Certifying Officer which copies are sent under sub-section (3) of that section, appeal to the appellate authority, and the appellate
authority, whose decision shall be final, shall by order in writing confirm the standing orders either in the form certified by the
Certifying Officer or after amending the said standing orders by the making such modifications thereof or additions thereto as it
thinks necessary to render the standing orders certifiable under this Act.
(2) The appellate authority shall, within seven days of its order under sub-section (1), send copies thereof of the Certifying Officer, to
the employer and to the trade union or other prescribed representatives of the workmen, accompanied, unless it has confirmed
without amendment the standing orders as certified by the Certifying Officer, by copies of the standing orders as certified by it
and authenticated in the prescribed manner.
Certifying officers and appellate authorities to have powers of Civil Court.
(1) Every Certifying Officer and appellate authority shall have all the powers of a Civil Court for the purposes of receiving
evidence, administering oaths, enforcing the attendance of witnesses, and compelling the discovery and production of
documents, and shall be deemed to be a Civil Court within the meaning of section 345 and 346 of Code of Criminal
Procedure, 1973 (2 of 1974)
(2) Clerical or arithmetical mistakes in any order passed by a Certifying Officer or appellate authority, or errors arising therein
from any accidental slip or omission may, at any time, be corrected by that Officer or authority or the successor in office of
such Officer or authority, as the case may be.

Q.4- What Is Standing Order ? Descuss The Inpoertent Provisions Of Industrial Imployment (Standing Order )In Act
1947 ?(2023)
ANS- What are Standing Orders?

Standing Orders means the rules related to Classification of workmen, working hours, Attendance, Conditions and Procedure for
obtaining Leave and the authority who may grant leave, Requirement to enter premises by certain gates, Rights and liabilities of
the employer and workmen arising from Closing and temporary stoppages of work, Termination and Suspension or dismissal of
the workmen, Means of redress for workmen against unfair treatment or wrongful exactions by the employer and Any other
matter relating to industrial establishments in coal mines as specified in the Schedule of the Act.

What are the Objectives of the Standing Orders?

1. To bring uniformity in terms and conditions of the employments.
2. To foster harmonious relations between employers and employees.
3. To make the conditions of service known to the workmen
4. To regulate the conditions of recruitment, discharge, disciplinary action, leave, holidays, etc. of the workers employed in
industrial establishments.
To Whom the Industrial Employment (Standing Orders) Act is applicable?

The Act is extends to the whole of India. Further, every industrial establishment wherein one hundred or more workmen are
employed, or were employed on any day of the preceding twelve months will come under Industrial Employment (Standing Orders)
Act.

To whom the Industrial Employment (Standing Orders) Act is not applicable?

This Act is not applicable to those industrial establishments in which workmen comes under or to whom the below mention Rules
or Regulations applies:
1. Fundamental and Supplementary Rules;
2. Civil Services (Classification, Control and Appeal) Rules;

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 3. Civil Services (Temporary Service) Rules;
4. Revised Leave Rules;
5. Civil Service Regulations;
6. Civilians in Defense Service (Classification, Control and Appeal) Rules;
7. Indian Railway Establishment Code or any other rules;
8. Regulations that may be notified in this behalf by the appropriate Government in the Official Gazette.
What is the procedure for submission of draft Standing Orders?
1. Within six months from the date on which this Act becomes applicable to an industrial establishment, employer shall submit
to the Certifying Officer five copies of the draft standing orders proposed by him for adoption in Form I. It has to be
accompanied by a statement giving prescribed particulars of the workmen employed including the name of the trade union, if
any.
2. The Draft Standing Order shave to cover every matter set out in the Schedule to the Act and more or less confirm to the
Model Standing orders as prescribed by the Government.
Certification of Standing Orders.

On receipt of the draft Standing Orders, the Certifying Officer shall:

1. Forward a copy to the workers’ trade union and if there is no such trade union, to the representative of the workmen along
with the notice in Form II requiring their comments and objections, if any, which the workmen may desire to make to the draft
standing orders to be submitted to him within fifteen days from the receipt of the notice.
2. The Certifying Officer shall certify the draft standing orders, after making any modifications, and shall within seven days
thereafter send copies of the certified standing orders authenticated along with his to the employer and to the trade union or
other representatives of the workmen.
3. Standing orders shall come into operation on the expiry of thirty days (30 days) from the date on which authenticated copies
are sent.
Duration and modification of Standing Orders:
1. Certified Standing Orders shall not be modified until the expiry of six months from the date on which the standing orders
came into operation.
2. An employer or workman or a trade union or other representative body of the workmen may apply to the Certifying Officer
to have the standing orders modified along with the application accompanied by the five copies of the modified standing
orders and a copy of the agreement between employer and workmen.
UNIT-4
Q.1- Discuss and explain the terms ‘factory and manufacturing process’ under the factories Act 1948, can an open land be
treated as factory explain with decided case Law.
Ans.-“Factory” means any premises including the precincts thereof—whereon ten or more workers are 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 of is ordinarily
so carried on; or
Whereon twenty or more workers are working, or were working on any 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.
Factory 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 hotel, restaurant or eating place.
Explanation I –For computing the number of workers for the purposes of this clause all the workers in different groups and
relays in a day shall be taken into account.
Explanation II- For the purposes of this clause, the mere fact that an Electronic Data Processing Unit or a Computer Unit is
installed in any premises or part thereof, shall not be construed to make it a factory if no manufacturing process is being carried on in
such premises or part thereof.
The phrase “premises including precincts” means “both premises with and premises without precincts”. Where premises is a
building it would include precincts also, but where premises are Lands, they would not have precincts. Thus both buildings and lands
are covered by the above expression. It was held in State of Bombay v. Ardeshir Hormosji Bhiwandiwala, that lands in which the
process of manufacturing salt is carried on is a factory.
There was a slate quarry extending over a large open space of about 300 acres. The work was carried onin the open air. Shed
was the only building. In the quarry more than 50 persons were employed for splitting the rock inot slates and shaping them for sale. It
was held that the quarry was not a factory for, if a place in which a manufacturing process is carried on is an open space, it cannot
constitute a factory. In Pragnarain v. Crown, it was held that factory means premises wherein anything is done towards the making or
finishing of an article upto the stage when it is ready to be sold or is in a suitable condition to be put in the market.
Prcecicts means a space enclosed by walls or fences. A place solely used for some purposes other than the manufacturing
process carried on in a factory or a workshop does not constitute a factory.
“Manufacturing process” means any process for—
(i) Making, altering, reparing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing, or
otherwise treting or adapting any article or substance with a view to use, sale, trasport, delivery or disposal; or
(ii) Pumping oil, water, sewage or any other substnace or

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 (iii) Generating transforming power, or transmitting power; or
(iv) Composing types for printing, printing by letter press, lithography, photogravure or other similar porcess 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.
It was held in State of Bomaby v. Ali Saheb Kashim Tamboli, that bidi making is a manufacturing process. The process of
transforming and transmitting electrical energy are manufacturing process. Manufacturing process is carried on in sub-sections of
Electricity Board within the meaning to Section 2(k)(iii) through there is no transmission of electrical energy. In Ardeshir v. Bomaby
State salt was manufactured from sea water applying different process which shows that it is due to the human agency, aided by
natural forces, that salt is extracted from sea water. The process carried out in the salt works comes within the definition of
‘manufacturing process’ in Section 2(k) in as much as salt can be said to have been manufactured from sea water by the process of
treatment and adaptation of sea water into salt.
In the matter of K.V.V. Sharma conversion of raw films into a finished product was held to be a manufacturing process.
Similarly in New Taj Mahal Café Ltd. Manglore v. 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 also held to be
manufacturing process.
In Gateway Auto Services v. Regional Director E.S.I.C., it was held that in the lubricating services of mother vehicles, power
is used to drive compressors which supply compressed air for operating service hoists and pressure and oil spray guns. The fact that
pump is installed on the petoral tank underground and with the aid of power, the petrol is lifted and poured into the tanks of vehicles,
makes the activity manufacturing process within the meaning of Section 2(k) of the Factories Act.
Q.2- Which person has ultimate control over the affairs of the factory? Discuss regarding provisions of notice to Chief
Inspector and general duties of the occupier under the Factories Act, 1948. Refer to decided cases.
Ans. “Occupier”—Occupier of a factory means the person who has ultimate control over the affairs of the factory.
“Provided that—
(i) in the case of a firm or other association of individuals, any of the individual parents or
Members thereof shall be deemed to be the occupier;
(ii) in the case of a company, any one of the directors shall be deemed to be the occupier;
(iii) in the case of a factory owned or controlled by the Central Government or any State Government, or any local authority, the
person or persons appointed to manage the affairs of the factory by the Central Government, the State Government or the
local authority, as the case may be, shall be deemed to be the occupier:
“Provided further that in the case of a ship which is being repaired, or on which maintenance work is being carried out, in a dry dock
which is available for hire,--
(1) the owner of the dock shall be deemed to be the occupier for the purposes of any matter provided by or under—
(a) Section 6, Section 7, Section 7-A, Section 7-B, Section 11 or Section 12;
(b) Section 17, in so far as it relates to the providing and maintenance of sufficient and suitable lighting in or around the
dock;
(c) Section 18, Section 19, Section 42, Section 46, Section 47 or Section 49, in relation to the workers employed on such
repair or maintenance;
(2) the owner of the ship or his agent or master or other officer officer-in-charge of the ship or any person who contracts with
such owner, agent or master or other officer-in-charge to carry out the repair or maintenance work shall be deemed to be the occupier
for the purposes of any matter provided for by or under Section 14, Section 15, Section 16 or Section 17 (save as otherwise provided
in this proviso) or Chapter IV (except Section 27) or Section 43 Section 44 or Section 45, Chapter VI, Chapter VII, Chapter VIII or
Chapter IX or Section 108, Section 109 or Section 110, in relation to—
(a) the workers employed directly by him, or by or through any agency; and
(b) the machinery, plans or premises in use of the purpose of carrying out such repair or maintenance work by such owner,
agent, master or other officer-in-charge or person.
The expression ‘occupier’ as defined in Section 2 (n) Factories act is not to be equated with ‘owner’. No doubt the ultimate
control over a factory must necessarily be with an owner unless the owner has completely transferred that control to another person.
Whether that was done in a particular case is a question of fact. Therefore, the manager of a factory who claims to be an occupier of
the factory must lay before the Chief Inspector of the Factories the necessary material for showing that the company has in some
manner transferred the entire control over the factory to him. In the absence of such material an application for renewal of licence
signed by the manager is not in proper from and cannot be acted upon. Where premises are given over to partnership firm in return for
periodic payment and the owner of the premises has not control over them, he cannot be said to be an ‘occupier’.
It was held in Kirloskar Pneumatic Co. Ltd. v. V.A. More & others, that an occupier need not necessarily be a Director of the
Company. Any person who had ultimate control over the affairs of factory can be nominated as occupier.
It was held in ION Exchange India Ltd. v. Deputy Chief Inspector of Factories, Salem, that owner can nominate any person
to be in ultimate control over the affairs of a factory. If no one else has been nominated to be in ultimate control over the affairs of the
Company, Director of a company or any partner of partnership are deemed to be the occupier.
Q.3- Dicuss The Provisions Lelated To Wefare ,Helth, And Sefty Under The Factory Act.1948.

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ANS- Health Measures and Safety Provisions in Factories Act, 1948
Health is an important part of everyone’s life. Being healthy does not only mean being ‘disease free’. It includes physical, social, and
mental health too. Maintaining sound health is undoubtedly a concern for everyone but it is more necessary for those who are constantly
under threat of health hazards. These are the factory workers. They are constantly under the danger of health risks. Hence, it becomes
necessary to concentrate on the health of the workers in the factories as well as people in society. In order to standardize the health
measures and safety provisions, the Factories Act, 1948 lays down certain ‘health measures’.

Health Measures and Safety Provisions as per Factories Act, 1948

 Section 11: Cleanliness in every factory

 Section 12: Disposal of effluents and wastes
 Section 13: Ventilation and Temperature
 Section 14: Dust and Fume
 Section 15: Artificial Humidification
 Section 16: Overcrowding
 Section 17: Lighting
 Section 18: Drinking Water

Section 11: Cleanliness in Every Factory

Under Section 11, every factory need to keep itself clean and free from effluvia arising from any drain, privy or other nuisance, and in
particular-

 Accumulation of dirt and refuse should be removed daily by any effective method from the floors of workrooms and from
staircases and passages and disposed of in a suitable and efficient manner.
 In case the floor is subject to become wet during the working time, then they should take proper drainage process or steps.
 Clean the worker’s floor every week with proper disinfectant or any other effective method of cleaning.
 Paint or repaint walls, ceilings, and staircases of the factory once in every 5 years.
 Repaint the walls once in every 3 years in case of washable water paints.
 Paint and varnish all doors and window-frames and other wooden or metallic framework and shutters at least once in a period of 5
years.

Section 12: Disposal of Effluents and Wastes

Under this section following things should be considered:
(a) It is necessary for the factories to arrange proper and effective waste treatment and its disposal.
(b) The State Government may make rules prescribing the arrangements for the disposal and treatment of waste and effluents.

Section 13: Ventilation and Temperature

This section states:

 Effective and suitable provisions should be made in every factory for securing and maintaining in every workroom proper
ventilation by circulation of fresh air. It also involves providing an adequate temperature at the workplace. For this, they should
select the material of the walls accordingly.
 The State Government may prescribe a standard of adequate ventilation and reasonable temperature for any factory or class or
description of factories.
 Lastly, if it appears to the Chief Inspector that excessively high temperature in any factory can be reduced by the adoption of
suitable measures, he can order them to use such a method.

Section 14: Dust and Fume

This section states that:

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  If dust and fume release in the manufacturing process of a factory then they should take effective measures to prevent its
inhalation and accumulation in the workplace. For this, they should use proper exhaust appliances in the workplace.
 In any factory, no stationary internal combustion engine shall be operated unless the exhaust is conducted into the open air.

Section 15: Artificial Humidification

1. In respect of all factories in which the humidity of the air artificially increases, the State Government may make rules,-

 Firstly, prescribing standards of humidification;

 Secondly, regulating the methods used for artificially increasing the humidity of the air;
 directing tests for determining the humidity of the air for correct carrying out and recording.
 Lastly, prescribing methods for securing adequate ventilation and cooling of the air in the workrooms.
2. In any factory in which the humidity of the air artificially increases, they should purify the water (drinking water) before the supply.

Section 16: Overcrowding

This section states:

 Firstly, no room in any factory shall be overcrowded to an extent injurious to the health of the workers employed therein.
 Secondly, a factory built after the commencement of this Act at least 14.2 cubic meters of space for every worker employed
therein, and for the purposes of this subsection, no account shall be taken of any space which is more than 4.2 meters above the
level of the floor of the room.
 If the Chief Inspector by order in writing, may or may not post a notice specifying the maximum number of workers who may be
employed in the room.

Section 17: Lighting

This section states:
Firstly, There should be proper lighting in all the places of the factory from where the workers of the factory pass.
In every factory, effective provision shall, so far as is practicable, be made for the prevention of-

 glare, either directly from a source of light or by reflection from a smooth or polished surface;
 the formation of shadows to such an extent as to cause eye-strain or the risk of accident to any worker.

Section 18: Drinking Water

This section states that in every factory, there should be proper arrangements for a sufficient supply of wholesome drinking water and shall
be legibly marked as “drinking water”.

Section 19: Latrines and Urinals

This section states that every factory should make arrangements of latrine and urinals for the employees and the rules are laid down by the
State Government in this behalf.

Section 20: Spittoons

There should be a sufficient number of spittoons in the factories for the employees and they should be in clean and hygienic condition
according to this law

Provisions related to Welfare (Under Factories Act, 1948)

Section 42: Washing facilities

This section states that every factory should:
(a) Firstly, provide and maintain adequate and suitable facilities for washing for all the workers in the factory
(b) Secondly, provide separate and adequately screened facilities separately for men and women.
(c) Thirdly, make accessible all the facilities to all the workers
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Section 43: Facilities for storing and drying clothes
This section contests some powers with the State Government. It states that the State Government has the powers to direct the factories
regarding the place of storing the clothes of the workers.
Moreover, they can also direct them regarding the manner of drying the clothes of the workers. It applies to the situation when workers are
not wearing their working clothes.

Section 44: Facilities for sitting

There are various kinds of jobs in a factory. Some of them require the workers to stand for a longer period of time. There is no doubt that
human power to stand has limits. Looking at such case, this section states:
(a) Firstly, the factory should provide suitable arrangements for sitting for the workers. This is important because whenever the worker gets
some free time, he/she may be able to take some rest by sitting. This will also enhance their efficiency.
(b) Secondly, if the Chief Inspector finds that any worker can do his work more efficiently while sitting, then he can direct the factory
officials to arrange sitting arrangements for him.

Special Point:

Section 45: First-aid-appliance

Injuries are somehow an inescapable part of life for the workers especially working in the factories. Looking at the safety and welfare of the
workers this section provides that:
(a) The factory should provide and maintain proper first-aid boxes at every workroom. Under this Act, the number of boxes should not be
less than one for every 100 or 50 workers. Moreover, the first-aid boxes should have all the relevant contents according to the Act.
(b) There should be nothing except the prescribed contents in a first-aid box.
(c) Each box should be under control of a first-aid in-charge who will handle all its requirements and its utilization. The in-charge should be
an expert in First-aid field.
(d) In case the number of workers exceeds 500, then the factory should arrange an ‘Ambulance Room’ with the availability of all necessary
equipment.

Section 46: Canteens

This section states:
(a) Every factory where the number of workers exceeds 250, then the State Government may direct the factory owners to provide and
maintain a canteen for the workers.
(b) Moreover, the government may lay down certain conditions in the construction of canteen, like:
1. the standard in respect of construction, accommodation, furniture and other equipment of the canteen
2. the foodstuffs to be served therein
3. the date by which such canteen shall be provided
4. the constitution of a managing committee for the canteen
5. the delegation to Chief Inspector subject to such conditions as may be prescribed

Section 47: Shelters, rest-rooms, and lunch-rooms

This section states:
(a) If the number of workers in a factory crosses 150, then the factory owners should construct and maintain shelters, rest-rooms and lunch
rooms for the workers. It allows the workers to eat the food which they bring along with them.

Special Point:
(b) The shelters, rest-rooms and lunch rooms should be properly ventilated and lighted.
(c) The State Government may prescribe the standards, in respect of construction accommodation, furniture, and other equipment.

Section 48: Creches

Due to workforce diversity nowadays, women’s participation is increasing in all the sectors especially the industrial sector.

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One of the factors that stop women to work in factories or any other sector is lack of care for their children during their working hours. In
order to solve this problem and increase the engagement of women in factories, section 48 states:
(a) Where numbers of women workers exceed 30, then the factory should arrange a special room for the worker’s kids who are below the
age of 6 years.
(b) The room should be properly lighted and ventilated

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