LABOUR & INDUSTRIAL LEGISLATION

PROJECT ON
INDUSTYRIAL DISPUTE ACT, 1947

Submitted by-

ToMs. Meenu Chopra

Neha Arya 09/BBS/0030

Department of Business Studies Deen Dayal Upadhyaya College University of Delhi

DEEN DAYAL UPADHYAYA COLLEGE UNIVERSITY OF DELHI

Declaration
I, student of Bachelor of Business Studies (5th semester), in Deen Dayal Upadhyaya College, University of Delhi, hereby declare that I have made this academic project as a part of the internal assessment for the subject Labour and industrial legislation, for 5th semester. The information submitted therein is true to the best of our knowledge. We sincerely thank Ms. Meenu Chopra for the guidance for the successful completion of the project report.

Date :

Countersigned (Ms. Meenu Chopra)

Candidates signature

Neha Arya (09/BBS/0030)

Industrial Dispute Act,1947

Definitions

Appropriate Government u/s 2(a)

Central Government In relation to any industrial dispute concerning any industry carried on by or under authority of Central govt. or by a Railway corporation, or IFC, LIC, UTI, ECGC, ONGC, etc State Government In relation to any other industrial dispute

Cases Appropriate Government Case 1BHEL v Govt of Tamil Nadu To hold Central Government to be appropriate government Undertaking must be directly carried on by Central Government or by any of its departments as a departmental activity

Employer u/s 2(g) In relation to an industry carried on by or under the authority of any department of the central government, the authority prescribed in this behalf, or if no authority prescribed then HOD In relation to an industry carried on by or on behlf of a local authority the CEO

Cases Application Case 2 Western Automobile Association v Industrial Tribunal The Act applies to all Industries carried on by indivisual or by association also

Workman u/s 2(s)

Any person employed in an industry to do any manual, unskilled, skilled technical operational, clerical or supervisory work for hire or reward Whether the terms of employment be express or implied and for the purpose of this Act includes any such person who has been dismissed discharged or retrenched in connection with or as a consequence of an industrial dispute or whose dismissal or retrenchment has led to the dispute

Cases 1) Employed in an industryCase 3J.K. Cotton Spinning and Weaving Mills Co. Ltd V Bidri Mali SC held that malis looking after the garden attached to bunglows provided by the company to its officers and directors, are engaged in operations incidentlly connected with the main industry carried on by the employer. And hence, are workers.

Cases To do skilled, unskilled, supervisory, technical or clerical work Case 4AGR Rao V Ciba Geigy The designation of a worker is not important Nature and duty is the essence of issue Dominant purpose of employement to be considered

 But, (Wages) does NOT include a person : who is subject to Army Act, 1950 , Air Force Act 1950 or Navy Act 1957 Who is employed in police service as an officer or other employee of a prison Who is employed mainly in managerial or admn. Capacity A supervisor drawing wages exceeding a specified amount (mentioned in the Rules)

Cases For managerial and Administrative Capacity Case 5Somnath Tulsiram Galande V Presiding Officer The appellant had multifarious duties, most of which are managerial He had the capacity to take decisions & was responsible for quality control Thus, he was not a workmen within definition of 2(s)

Industry [u/s 2(j)]

"industry" means any business, trade, undertaking, manufacture or calling of employers and includes any calling, service, employment, handicraft, or industrial occupation or a vocation of workmen; Any systematic activity carried on by cooperation between employer & his workmen (whether workmen are employed directly or through an agency) for the production, supply or distribution of goods or services. or services with a view to satisfy human wants or wishes (not being wants or wishes which are merely spiritual or religious in nature), whether or not, Whether or not any capital has been invested or such activity is being carried out for the purpose of making profits

Cases Sovereign Functions Case 6Cooperation of city of Nagpur V employees If department of municipality discharges many functions, some pertaining to industry and others non- industrial The predominant function shall be the criteria for the purpose of the Act

 But it DOES NOT include:

Any agricultural operation (except when the agri operation is integrated with another activity & that is the predominant one) Hospitals or dispensaries Educational, scientific, research or training institutions Khadi or village industry Any sovereign function of the govt Any domestic service Any profession practiced by an individual if the number of persons employed by the individual is less than ten

Cooperative society employing less than 10 persons

Wages u/s 2(rr) Wages means all remuneration capable of being expressed in terms of money, which would ,if the terms of employment express or implied, were fulfilled be payable to a workman in respect of his employment. It includes : i) allowances ii) house accommodation, supply of water,light,medical facility or any other services iii) traveling concessions iv) commissions payable on sales or business

But does not include-

i) Bonus

ii) contribution paid by the employer to any pension fund or PF fund iii) gratuity payable on the termination of his service.

Cases Wages include Case 7Bennet Coleman & Co. v P.P. Das Gupta Car allowance And benefit of telephone Or Newspaper

Can be taken into account in fixing fair wages And calculation of Gratuity

Industrial Dispute u/s 2(k) Industrial dispute means any dispute or difference between Employers and employers Employers and workmen Workmen and workmen The disputes or difference must be connected with the employment or nonemployment or terms of employment, or with the conditions of labour of any person.

Cases Case 8Workmen v Dharampal Premchand Group of employees not having a union of their own, can validly raise an industrial dispute Case 9Tata C Caseemicals Ltd v Workmen Dispute can br raised by minority union also

Procedure for settlement of industrial disputes and authorities under the act 1. Works committees (sec.3) 2. Conciliation officers (sec.4) 3. Boards of conciliation (sec.5) 4. Courts of inquiry (sec.6)

The act provides for the following settlement of disputes under the act : i) Voluntary settlement and conciliation ii) Adjudication, and iii) Arbitration

Voluntary & Conciliation machinery

Works committees (sec.3) It consists of representatives of employers and workmen's engaged in the establishment. Powers and duties : To promote measures for securing and preserving goodwill and good relations between employers and workmen Comment upon matters of their common interest or concern Endeavour to compose any material difference of opinion in respect of such matters.

Cases Case 10Bengal Raje v Union of India The representatives of workmen should be equal in number or mare than that of employer. They should be elected and not nominated. Case 11North Brook Jute Co. Ltd. v Workmen
Work committee is not intended to supplement the unions for the purpose of collective bargaining

Their task is only to smooth away frictions that may arise b/w workmen & management.

Conciliation officers (sec.4)

Duties : To hold conciliation proceedings. To investigate the dispute To send a report and memorandum of settlement to appropriate government To send a full report Powers : Power to enter premises Power to call for and inspect documents.

Board of conciliation (sec.5)

Duties : To bring about a settlement of dispute To send a report and memorandum of settlement to the appropriate govt. To communicate reasons to the parties if no further references made To submit reports within 2 months Power : Power to enter premises Power to civil court

Cases Case- 12 Royal Calcutta Gold Club Majdoor Union v State The duty of conciliation officer is not judicial but administrative . He has to investigate the dispute and do all such things as he thinks fit for the purpose of inducing the parties to arrive at a fair settlement.

Courts of inquiry (sec.6) Duties : To inquire into the matters referred to it and report thereon To stand by the principles of fairplay and justice Powers : Power to enter premises Power of civil court

Power of Government u/s 9(b) Where the appropriate Government is of opinion that the application of the provisions of section to any class of industrial establishments or to any class of workmen employed in any industrial establishment affect the employers in relation thereto so prejudicially that such application may cause serious repercussion on the industry concerned and that public interest so requires,

 the appropriate Government may, by notification in the Official Gazette, direct that the provisions of the said section shall not apply, or shall apply, subject to such conditions as may be specified in the notification, to that class of industrial establishments or to that class of workmen employed in any industrial establishment.

Strikes and lock-outs

Prohibition of strikes and lock outs (sec 22 & 23) 1. Strike in a public utility service [sec 22(1)] No person employed in a public utility service shall go on strike in breach of a contracta) Without giving to employer notice of strike, within six weeks before striking. b) Within 14 days of giving such notice

c)Before the expiry of the date of strike specified in the notice. d) During pendency of any conciliation proceedings.

LOCK-OUTS

i)A lock-out means :a) the closing of a place of employment; or b)the suspension of work; or c)the refusal by an employer to continue to employ any number of persons employed by him. ii)It means the closure of the place of business and not closure of business itself. iii)Lock-out is usually used by the employer as a weapon of collective bargaining.

Strikes Sec. 2(q) defines a strike as follows: i. The cessation of work by a body of persons employed in any industry acting in combination ; or ii. A concerted refusal, or a refusal, under a common understanding, of any number of persons who are, or have been, so employed to continue to work or accept employment. Following ingredients can be postulated from the definition of strike: i. Plurality of workmen. ii. Cessation of work or refusal to continue to work. iii. Acting in combination or concerted action under a common understanding.

Cases Case 12 Dismissal of workmen & illegal strike Lakshmi Devi Sugar Mills vs. Ram Sarup i) sudden concerted stoppage of work. ii) strikers cannot be exempted from the consequences.
iii) employers has the right to suspend the striking workmen.

Cases Case 13Hall Employees Union v the presiding Officer Where a lockout was declared in response to an illegal strike the same held to be justified and workmen were not entitled to wages

Wages for period of strike and lockout For a justified strike, payment of wages depends on Causes which led to strike Urgency of cause or demand of workmen Service conditions of workers The reason for not restorting to dispute settlement machinery For legal lock-out, no wages are payable to workmen

Cases Case 14- Strike Dum Dum Aluminium workers v Aluminium Mfg. Co. If workers indulge in violence, no wages are payable even when their strike was legal and justified Case 15- lockout Lord Krishna Sugar Mills Ltd. V State of U.P. Where lockout is legal, but has been continued for unreasonable period of time, it is unjustified and workmen are entitled to wages

Lay off (Chpt. VA & VB) Section 2 (KK) of the Act defines lay off as
the failure, refusal or inability of an employer on account of shortage of coal & power or raw material or the accumulation of stocks or the breakdown of machinery or for any other reason to give employment to a workmen whose name is borne on the muster roll of his industrial establishment & who has not been retrenched.

Industrial establishment here means:

i. Factory under Sec, 2 (m) of Factories Act, 1948. ii. Mines under Sec. 2 (i) of Mines Act, 1952. & iii. Plantation under Sec. 2 (f) of Plantation Labour Act, 1951.

 Compensation for layoff shall be paid be when(Sec 25-C)a) the workman must not be badli workman or a casual workman b) his name must be borne on the muster rolls of the industrial establishment c) he must have completed not less than one year of continuous service. The rate of compensation shall be equal to 90% of the total of basic wages and DA that would have been payable to him had he not been laid off Where a workman is laid off for a period of 45 days during a period of 12 months, the employee can lawfully retrench him at any time after expiry of first 45 days of layoff

 No compensation shall be paid to the workmen (Sec 25-E): i. If he refuses to accept any alternative employment in the same establishment. ii. If he does not present himself for work at the establishment at appointed time during working hours at least once a day. iii. If such laying off is due to strike or slowing down of production on the part of workmen.

 If a workmen has been laid off by his employer due to shortage of power or natural calamity, the appropriate government makes an enquiry if he thinks fit. If the authority does not communicate the permission within 2 mths. With the employer then lay off is deemed to be granted. If the appropriate government refuses the permission for lay off, then lay off is deemed illegal, then the workmen is entitled for all the benefits from the time he has been laid off.

Cases Cases regarding Lay-off : Case 16 Sur Enamel & Stamping Works Ltd. V/s Their Workman Supreme Court said that for 1 year of continuous service it must be shown that a person must be employed for period not less than 12 months and during those 12 months he must have worked not less than 240 days.

Case 17 Surendra Kumar Verma V/s Central Government industrial Tribunal :

Here the Supreme Court said that it is not necessary for an employee to have worked for the period of 12 months and just having worked for not less than 240 days will qualify within the terms.

Case 18 Madras High Court in P. Joseph and others V/s Loyal Textile Mills : Badli workman who has completed 240 days of service is entitled to lay-off compensation but here the badli workman had been excluded from lay-off compensation.

 Penalty for Lay-off:-

Any employer who contravenes the provisions of lay - off is punishable with imprisonment for a term which may extend to Rs.1000/- or both.

Retrenchment (Chpt. VA & VB) Sec. 2 (oo) defines Retrenchment as the termination by the employer of the service of the workman for any reason whatsoever, otherwise than a punishment inflicted by way of disciplinary action. Retrenchment does not include voluntary retirement superannuation, termination of employment on grounds of ill health; do not amount to retrenchment. No workmen who has been employed for 1 year can be retrenched until:
i. 1 month notice in written & reason for retrenchment. ii. 15 days average pay for every completed year of service.

iii. Notice served to the appropriate government

I. Compensation shall be equivalent to 15 days average pay for every completed years of continuous service or any part thereof in excess of 6 months II. Notice shall be given to appropriate government or such authority & the permission of such government or authority is obtained. III. Government or authority after making inquiry may grant or refuse the permission to the employer within 3 mths. Of the date of service of the notice. if it does not communicate within 3 mths. Of such notice then the retrenchment is legal. if it does refuse the permission then the retrenchment is illegal.

Cases Case relating to retrenchment: Case-19 V.L.T. Cargo Movers Ltd., Mumbai v Ajit Kumar S. Puri Non- payment of retrenchment compensation and notice pay at the time of termination of the alleged services of the respondent will amount to illegal retrenchment. Case 20Ratan Singh v Union of India Workman who had continuously worked for more than 240 days in a year was held entitled to protection and the same could not be denied on the ground that he was a DAILY RATED WAGER

TRANSFER OF UNDERTAKING A workman shall not be entitled to notice and compensation where there has been the change of employers by reason of the transfer unless The service of workman has not been interrupted by such transfers. The terms and conditions of service applicable to the workman after such transfer are not in any way less favorable to the workmen than those applicable to him immediately The new employer is under the terms of such transfer.

 60 days notice to be given of intention to close down any undertaking (sec 25) An undertaking in which-less than 50 workman are employed, less than 50 workman were employed on an avg per working day in the preceding 12 months. Accident in the undertaking or death of the employer

COMPENSATION TO WORKMEN IN CASE OF CLOSING DOWN OF UNDERTAKINGS Where an undertaking is closed for any reason whatsoever, every workman who has been in continuous service for less than 1 year Financial difficulties( including losses) Accumulation of indisposed of stocks.

The expiry of the period of the lease or the lien granted to it. closing down of an undertaking set up for construction of buildings, bridges ,canals ,roads, dams.

CASES Case 21Manalakshmi Glass Works Pvt Ltd v State of Maharastra and others

Petitioner Company was in heavy losses and sought permission for closure. Commisioner Labour granted permission. Held, the workers have the right to oppose it before the appropriate authority and review can sought by the union