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“Namma Kanoonu Guide”

LABOUR LAW I
Prepared as per the syllabus prescribed by Karnataka State Law University
(KSLU), Hubballi

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CONTENTS
PART-I

SYLLABUS:

UNIT-I Historical aspects Master and Slave Relationship, Trade Unionism in India and
UK Enactment of the Trade Unions Act,1926-
ILOConventionsrelatingtoTradeUnionsand relevant Constitutional provisions.

A bird's eye view of the Act—Definitions-Trade Union, Trade Dispute, etc.

Provisions relating to registration, withdrawal and cancellation of
registrationFunds of Trade Union, Immunities, problems of Trade Union,
Amalgamation of Trade Union -Recognition of Trade Unions - Methods, need
and efforts in this regard, Collective Bargaining - Meaning, methods, status of
collective bargaining settlements, collective bargaining and liberalization
UNIT-2
Historical Background and Introduction to the Industrial Disputes Act, 1947 -
Definitions - Industry, Workman, Industrial Dispute, Appropriate Government,
etc., - Authorities/ Industrial Dispute resolution machinery - Works Committee,
Conciliation and Board of Conciliation — Powers and Functions, Court of Inquiry,
Grievance Settlement Authority,
Voluntary Arbitration U/S 10-A, Compulsory Adjudication- Government's power
of reference U/S- 10 - Critical analysis with reference to decided cases.
Compulsory Adjudication - Composition, Qualification, Jurisdiction, powers of
adjudication authorities, - Award and Settlement - Definition, Period of
operation, binding nature and Juridical Review of award.

UNIT-3 Law relating to regulation of strikes and lockouts- Definition of strikes and
lockouts, Analysis with reference to Judicial Interpretations, Regulation U/Ss 22,
23, 10-A(4-A), and 10 (3), Illegal strikes and lockouts, penalties.-Regulation of
Job losses- concepts of Lay-off, Retrenchment, Closure and Transfer of
undertakings with reference to statutory definition and Judicial Interpretations
-Regulation of job losses with reference to the provisions of chapter V A and V B
of the ID Act, 1947 - Regulation of managerial prerogatives - Ss. 9A,llA, 33
and33Aof ID Act, 1947 -Certified Standing Orders - Meaning and Procedure for
Certification, Certifying officers- Powers and Functions, etc.

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UNIT-4 Concept and Importance of Social Security - Influence of I.L.O. - Constitutional

Mandate. The Employees' Compensation Act, 1923 — Definitions - employee,
employer, dependent, partial disablement, total disablement, etc. - Employer's
liability for compensation —Conditions and Exceptions - Procedure for claiming
compensation. Computation of Compensation. Commissioner- Jurisdiction,
Powers, etc.
The Employees' State InsuranceAct,1948—Definitions-Employment injury,
contribution, dependent, employee, principal employer, etc. -
Employees State Insurance Funds -
contribution,BenefitsavailableAdministrativeMechanism-
E.S.ICorporation,Standing Committee, Medical Benefits Council-Composition,
Powers, Duties - Adjudication Of Disputes- E.S.I
Courts. Comparative analysis of the E.S.I. Act, 1948 with the Employees'
Compensation Act, 1923

UNIT-5 The Payment of Wages Act, 1936 -Definitions — employed person, factory,
industrial and other establishment, wages, etc. - Deductions — Authorities -
Inspectors and Payment of Wages Authority.
The Factories Act, 1948 —Definitions -factory, manufacturing process, occupier,
worker, hazardous process, etc. -Provisions of the Factories Act relating to
health, safety and welfare of workers -Provisions relating to Hazardous process
-Provisions relating to working conditions of employment - Working Hours,
Weekly leave, Annual leave facility -Provisions relating to regulation of
employment of women, children and young persons.

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II PART-II -
NO. CONTENTS Page.No
I. Trade Unions Act, 1926 5-18
Historical aspects-Master and Slave Relationship, Trade Unionism in -
India and UK Enactment of the Trade Unions Act, 1926 -ILO -
Conventions relating to Trade Unions and relevant Constitutional
provisions.
-
A bird's eye view of the Act—Definitions-Trade Union, Trade -
Dispute, etc. Provisions relating to registration, withdrawal and -
cancellation of registration-Funds of Trade Union, Immunities, -
problems of Trade Union, Amalgamation of Trade Union -
Recognition of Trade Unions - Methods, need and efforts in this
-
regard, Collective Bargaining - Meaning, methods, status of
collective bargaining settlements, collective bargaining and
-
liberalization. -
II. Industrial Disputes Act, 1947 19-26
Historical Background and Introduction to the Industrial Disputes Act, -
1947 - Definitions - Industry, Workman, Industrial Dispute, -
Appropriate Government, etc., - Authorities/ Industrial Dispute
-
resolution machinery - Works Committee, Conciliation and Board of
Conciliation -Powers and Functions, Court of Inquiry, Grievance -
Settlement Authority, -
Voluntary Arbitration U/S 10-A, Compulsory Adjudication- -
Government's power of reference U/S- 10 - Critical analysis with -
reference to decided cases.
-
Compulsory Adjudication - Composition, Qualification, Jurisdiction,
powers of adjudication authorities, - Award and Settlement -
-
Definition, Period of operation, binding nature and Juridical Review -
of award. -
-
III. Law relating to regulation of strikes and lockouts- 28-36
Law relating to regulation of strikes and lockouts- Definition of -
strikes and lockouts, Analysis with reference to Judicial -
Interpretations, Regulation U/Ss 22, 23, 10-A(4-A), and10 (3), Illegal -
strikes and lockouts, penalties.-Regulation of Job losses- concepts of
-
Lay-off, Retrenchment, Closure and Transfer of undertakings with
-
reference to statutory definition and Judicial Interpretations –
Regulation of job losses with reference to the provisions of chapter
-
VA and VB of the ID Act, 1947 – Regulation of managerial -
prerogatives - Ss. 9A,llA, 33 and 33Aof ID Act, 1947 -Certified -
-

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Standing Orders - Meaning and Procedure for Certification, -

Certifying officers- Powers and Functions, etc.

IV. - The Employees' Compensation Act, 1923 37-41

Concept and Importance of Social Security - Influence of I.L.O. - -
Constitutional Mandate. The Employees' Compensation Act, 1923 -
— Definitions - employee, employer, dependent, partial -
disablement, total disablement, etc. - Employer's liability for
-
compensation —Conditions and Exceptions - Procedure for claiming
compensation. Computation of Compensation. -
Commissioner- Jurisdiction, Powers, etc. -
V. The Employees State Insurance Act,1948 41-46
The Employees State Insurance Act,1948—Definitions-Employment -
injury, contribution, dependent, employee, principal employer, etc.- -
Employees State Insurance Funds contribution, Benefits available- -
Administrative Mechanism-E.S.I Corporation, Standing Committee,
-
Medical Benefits Council-Composition, Powers, Duties –
-
Adjudication of Disputes E.S.I Courts. Comparative analysis of the
E.S.I. Act, 1948with the Employees' Compensation Act, 1923
-
-
VI. The Payment of Wages Act, 1936 48-51
Definitions — employed person, factory, industrial and other -
establishment, wages, etc. - Deductions — Authorities - Inspectors -
and Payment of Wages Authority.
-
VII. The Factories Act, 1948 51-55
Definitions -factory, manufacturing process, occupier, worker, -
hazardous process, etc. -Provisions of the Factories Act relating to -
health, safety and welfare of workers -Provisions relating to
-
Hazardous process -Provisions relating to working conditions of
employment - Working Hours, Weekly leave, Annual leave facility -
Provisions relating to regulation of employment of women, children -
and young persons. -

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III PART III Page.No

1. Previous years important question 56-57

IV PART IV Page.No
1 Bare Acts 58-73

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UNIT-I

Historical aspects:
Master and Slave Relationship
Q. Explain Factors responsible for the old theory master and servant?

• A master and servant relationship is determined based upon the amount of control the
employer exercises over the 6 Page 12 service provided by the employee. A master will
be liable for acts of an employee committed while within the scope of employment.

• Since the Industrial Revolution, the law and practice of capital-labour relationship which
is the most important aspect of master and servant relationship have undergone a great
evolution and for the proper understanding of the significance and development of
industrial Jurisprudence, a resume of this evolution is very essential.
• The Nature of Master and Servant Relationship:
• A servant is one who works for another individual, known as the master, with or without
pay. The master and servant relationship only arises when the tasks are performed by the
servant under the direction and control of the master and are subject to the master's
knowledge and consent
• Advocate S. R. Samant observed that: “The words master and servant are suggestive of
the ideas of domination and submission hidden behind them. According to the settled law
of master and servant, the master holds authority over the servant and the servant owes
obeyance to the master. The strong is never wrong and the weak must ever be meek is the
maxim of the master and servant law. The master and the servant are truly the ruler and
the ruled”.
Q. Growth of Trade Unionism in India and UK.
• Trade Unionism in lndia and UK:
• Introduction:
• The law relating to labour and employment in India is primarily known under the broad
category of “Industrial Law”. Labour law seeks to regulate the relations between an
employer or a class of employers and their employees.The commence of industry and its
growth is not a venture of the employer alone; yet it involves the hard work and tough
grind of each and every stakeholder of the industry including the laborers, supervisors,
managers and entrepreneurs.

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 Definitions TradeUnion, Trade Dispute,etc.

• PYQ
• What is a Trade Union? Explain its objects.
• Definition of Trade Union:
• A trade union can be defined as an organized association of workers in a trade or
profession, formed to further their rights and interests. In India, Trade Unions in
India are registered under the Trade Union Act (1926).
• Sec 2 (h) states that "Trade Union" means any combination, whether temporary or
permanent, formed primarily for the purpose of regulating the relations between
workmen and employers or between workmen and workmen, or between employers
and employers, or for imposing restrictive conditions on the conduct of any trade or
business, and includes any federation of two or more Trade Unions.
• Objectives of Trade Union:
• The following are the objectives of trade union:
(1) To improve the economic lot of workers by securing them better wages.
(2) To secure for workers better working conditions.
(3) To secure bonus for the workers from the profits of the enterprise/organization.
(4) To ensure stable employment for workers and resist the schemes of management
which reduce employment opportunities.
(5) To provide legal assistance to workers in connection with disputes regarding
work and payment of wages.
(6) To protect the jobs of labour against retrenchment and layoff etc.
(7) To ensure that workers get as per rules provident fund, pension and other
benefits.
(8) To secure for the workers better safety and health welfare schemes.
(9) To secure workers participation in management.
• Definition Trade Dispute
• "The term "labor dispute" includes any controversy concerning terms or conditions
of employment, or concerning the association or representation of persons in
negotiating, fixing, maintaining, changing, or seeking to arrange terms or conditions
of employment, regardless of whether or not the disputants stand in the proximate
relation of employer or employee."

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• Provisions relating to registration, withdrawal and cancellation of registration

(IMP):
• PYQ
Q. Explain the provisions relating to registration of a Trade Union.
• Trade union shall not be entitled to registration under this act, unless the executive
thereof is constituted in accordance with the provisions of this act and rules thereof
provide for the following matters, namely:
• 1. The name of the trade union;
• 2. All the objects of its establishment;
• 3. Purpose for which the general funds of the union shall be spent;
• 4. The maintenance of members list and adequate facilities for its inspection by
office bearers and members of the trade union
• 5. The procedure for the admission of ordinary members and also admission of
honorary and temporary members as office bearers and executive;
• 6. The conditions under which the members of the union are entitled to claim
benefits;
• 7. The conditions under which any fine or forfeiture may be imposed on him;
• 8. The manner in which the rules of the trade union are to be amended;
• 9.The manner of appointment of executive and their removal;
• 10. The term of the executive and office bearers of the trade union must not exceed
more than 3 years;
• 11. Safe custody of funds, an annual audit of accounts and adequate facilities for its
inspection by the office bearers and the members of the trade union.
 Registration
• The members are required to fulfil necessary documents for registration, if
all technical requirements are fulfilled by the members of the trade union
then the registrar has to register the trade union.

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• Funds of Trade Union, Immunities, problems of

Trade Union, Amalgamation of Trade Union.
• Funds of Trade Union:
• No organization can function efficiently without funds. The act empowers
the trade union to constitute general as well as political funds. Further, the
act imposes certain restrictions on the trade union with regard to the
utilisation of such funds:
• General Funds:
• Only 25% of the total income of the trade union is regarded as General funds.
Section 15 of this Act deal with General Funds and lay downs the objects on
which general funds may be spent, they are as follows:
• Salaries and allowances to office bearers;
• Defend any legal suit;
• Maintain the administration of the trade union;
• To conduct any trade disputes relating to the trade union or its members;
• To compensate victims of trade dispute;
• Allowances to members or their dependents, in case of his death, old age,
sickness, accident or unemployment;
• To issue insurance policy to its members against sickness, accident or
unemployment;
• To incur educational, social and religious benefits;
• Publish a periodical to discuss questions or concerns of workmen.
• Political Funds:
• Section 16 of this act imposes a trade union to constitute a separate fund for
political purpose. No member shall be discriminated merrily on the ground
that he hasn’t contributed or contributed to the political fund. But the control
of management of such political funds can be exclusively vested in the hands
of those members who have contributed to it. It can be spent for the
following:
I. Campaign for election;
II. Meetings and documents for supporting any candidate;
III. Register the elector for election;

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IV. To issue any publication supporting or disagreeing with the moves of

the government concerning labours; etc.
• Immunities/Privileges :
• registered trade unions are entitled to certain privileges and immunity. The Trade
Unions Act, 1926, grants members and leaders of registered unions a number of
privileges and immunities. The registered trade unions’ immunities or privileges can
be explained under the following headings:
• Immunity from civil liability
• Section 18 of the Trade Unions Act, 1926, grants immunity to registered trade unions
from civil suits .
• This immunity is available to all officers and members of a registered trade union.
No civil action is admissible against them for an activity related to a trade dispute
on the grounds that such an act induces some other person to breach a contract of
employment; or it interferes with some other person’s trade, business, or
employment. Further, the inducement should also be legal and not against the law of
the land. There is no protection from threats, violence, or any other illegal methods.
• In Indian Newspapers (Bom) Pvt. Ltd. v. T.M. Nagarajan the Delhi High Court
held that when there are allegations of violence made by the management in the
plaint supported by documents then prima facie a suit would be maintainable and
the protection of section 18 of the Trade Unions Act, 1926 would not be available.
The fact whether any act of violence was committed or not would be decided in the
suit.
• Immunity from tortious liability:
• Torts are considered to be civil wrongs. It can be resolved through a civil court
action. It is distinct from breaches of quasi-contracts, contracts, and trusts, as well
as other equitable obligations (e.g., trespass, private nuisance, among others). The
Trade Unions Act of 1926, however, provides immunity from tort liability in Section
18(2). The act that seeks immunity or exemption from tort liability must advance a
trade dispute.

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• Immunity from criminal liability:

• Section 17 of the Trade Unions Act of 1926 exempts registered trade union officers
from prosecution for criminal conspiracy.
• A registered trade union is granted immunity under the Trade Union Act of 1926.
This immunity is only applicable to legal agreements made by a trade union’s
members for the stimulation of legitimate objects of a trade union, so it is only
partially available. One right given to registered trade unions to help them settle
trade disputes is the right to call for a strike and try to get their members to join. All
acts that give rise to civil lawsuits are considered illegal acts.
• Problems of Trade Union:
1. Multiplicity of unions: A number of unions exist in one industrial unit.
2. Absence of union structure: The structure of the trade union may be a craft
union, industrial union or the general union.
3. Limited membership: A trade union cannot become strong unless it can enroll
large number of workers as its members.
4. Scarcity of finances: The main problem faced by trade unions in India is the
paucity of financial resources.
5. Small size: On account of the limited membership, the size of the unions in India
is very small.
6. Lack of unity: The major weakness of the trade union movement in India is the
lack of unity among the various unions existing in India at present.
7. Lack of trained workers: The workers in India are uneducated and untrained.
The politicians, who are least concerned with the welfare of the workers, become their
leaders.
8. Political dominance: It is very unfortunate for the workers that all trade unions
in India are being controlled by political parties.
9. Hostile attitude of employers:The employers have their own unions to oppose
the working class.

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• Recognition of Trade Unions - Methods, need and

efforts in this regard:
• There is no specific provision for the recognition of the trade unions under the Trade
Unions Act, 1926. Hence, recognition is a matter of discretion in the hands of the
employer. Provisions for the recognition of trade unions were included in the Trade
Union (Amendment) Act, 1947, but the act has not been implemented. The Trade
Union Bill, 1950 also provided for recognition of trade union (based on the largest
membership among the existing trade unions), but the bill lapsed due to dissolution
of parliament.

• Methods of Recognition of Trade Union:

• Voluntary recognition of trade unions :occurs when employers willingly

acknowledge and engage with a trade union as a legitimate representative of their
employees.

• Recognition by Management:

• Recognition by management, a form of voluntary recognition, is crucial for the

success of a trade union. To be effective in collective bargaining, it’s essential for
an employer to acknowledge the union’s legitimacy.

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UNIT-II
Industry

 PYQ
1. Define "Industry" with the help of decided cases.
 Definition of Industry:
• Section 2(j) defines 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.
• In Bangalore Water Supply v. A. Rajappa, a seven Judges' Bench of the Supreme Court
exhaustively considered the scope of industry and laid down the following test which
has practically reiterated the test laid down in Hospital Mazdoor Sabha case.
• Triple Test:
• Where there is:
(i)Systematic activity,
(ii)Organised by cooperation between employer and employee (the
direct and substantial element is chimerical),
(iii) for the production and/or distribution of goods and services
calculated to satisfy human wants and wishes, prima facie, there is an
"industry" in that enterprise. This is known as tripple test.
• Dominant nature test: hether there is complex of activities, the test would be the
predominant nature of services and integrated nature of departments.
• The exceptions to industry are- • Casual activities (because they are not systematic).
• Whether Municipal corporation can be regarded as an industry:
Supreme Court gave the judgement as the municipal corporation is an industry. The
court also held that the Departments of the Municipal Corporation which perform
welfare activities fall within the definition of industry under Section 2(j) of the Act. For
example: (i) Sewerage Department (ii) Public Works Department (iii)Education
Department (iv)Water works Department etc.

• Whether hospital is an industry:

• The Supreme Court held the group of hospitals to be industry and observed as follows

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:
• purpose of giving medical , medical education
• production or distribution of goods ,etc
• Hospital run by the Government as a part of its function is not an industry.
• all hospitals fulfilling the test laid down in Bangalore Water Supply case will be
industry.
• Whether University and Educational Institutions are industries?
• University of Delhi v. Ram Nath, In 1961, University of Delhi Case arose where a
driver of Miranda House was discharged from service which led to dispute.
• University claimed that it is not industry and the Court agreed. The Court held that
education is imparted by teachers who are not workmen. The intention of legislature
was not be include educational institutions within industry to extend benefits to the
drivers and others who are not core service providers.
• Is Government Department an industry?
• In State of Rajasthan v. Ganeshi lal, It was held that the Law Department of
Government could not be considered as an industry.
• Whether Club is an industry? In Cricket Club of India v. Bombay Labour Union :
It was held that the club was a self service institution and not an industry and it was
wrong to equate the catering facilities provided by the club to its members or their
guests (members paying for that), with a hotel. The catering facility also was in the
nature of self service by the club to its members. This case has now been overruled.
• Definition of Workman:
• Definitions of workman. an employee who performs manual or industrial labor.
synonyms: working man, working person, workingman.

Appropriate government :
• Introduction:
• Section 10, a powerful provision that empowers the government to intervene and
resolve conflicts through conciliation or adjudication, was incorporated into the
Industrial Disputes Act, 1947. Section 10 of the Industrial Disputes Act, 1947 deals with
the procedure for the reference of disputes to the appropriate authority for adjudication.
• Section 2(a), tells who will be the appropriate government under this Act:
• Central Government will be the appropriate government where:
• any industrial establishment is under the control of the central government or carried
on by the central government; or,
• Railway Industry, banking and insurance company, a major port and mine and oil field.

• Authorities / Industrial Dispute Resolution Machineries:

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• The authorities have been divided into adjudicatory and non-adjudicatory bodies.
1. Works Committee.
2. Conciliation Officers.
3. Boards of Conciliation.
4. Court of Inquiry.
1. Works Committee.
section 3 of the act ,It is to try to settle the dispute in the first instance through the process
of mediation in the initial stage of the dispute. The works committee also time to time
comments upon the matters in dispute.
2. Conciliation Officers.
The appropriate Government may, by notification in the Official Gazette, appoint such
number of persons as it thinks fit to be conciliation officers, charged with the duty of
mediating in and promotion the settlement of Industrial disputes.
3. Boards of Conciliation.
Under section 5 ,The appropriate Government may, as occasion arises by notification in the
Official Gazette constitute a Board of Conciliation for promoting the settlement of an
industrial dispute.
4. Court of Inquiry.
section 6 of the act , The appropriate Government may as occasion arises by notification in
the Official Gazette, constitute a Court of Inquiry for enquiring into any matter appearing
to be connected with or relevant to an industrial dispute
• powers and functions of Board of Conciliation:
i. promote and facilitate the settlement .
ii. investigate and inquire. iii. settle the dispute through
negotiation and compromise. iv. create a peaceful and cooperative
working environment
v. fair and amicable settlement.
vi. If the parties cannot resolve their differences through conciliation, the dispute may
be referred to a government-appointed arbitrator or tribunal for a final dec ision.

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UNIT-III
‘

Strikes and lockouts

• Introduction:
• In the case Management of Kairbetta v/sRajamanickam And Others on 24
March, 1960, Hon'ble Supreme Court of India court has observed as follows:
Just as a strike is a weapon available to the employees for enforcing their industrial
demands, a lockout is a weapon available to the employer to persuade by a coercive
process the employees to see his point of view and to accept his demands. In the
struggle between capital and labour, the weapon of strike is available to labour and
is often used by it, so is the weapon of lockout available to the employer and can be
used by him.
• The use of both the weapons by the respective parties Must, however, be subject to
the relevant provisions of the I D Act. Chapter V which deals with strikes and
lockouts clearly brings out the antithesis between the two weapons and the
limitations subject to which both of them must be exercised.
• Case law: Patiala Cement Company ltd v/s Workman 1955,
• It was held tht there is no limit for the period of strike. It can be for any short period
or any long period. Cessation of work for half an hour was also held to be a strike.

Strike
• Meaning and definition:
• According to section 2(q) of Industrial Disputes Act 1947,
• "a strike is "a cessation of work by a body of persons employed in an industry acting
in combination; or a concerted refusal of any number of persons who are or have
been so employed to continue to work or to accept employment; or a refusal under
a common understanding of any number of such persons to continue to work or to
accept employment".

Lockout
• Definition of Lockout
• Section 2(I) of The Industrial Disputes Act, 1947 defines a lockout as the
“temporary closure of a workplace, the suspension of work, or an employer’s refusal
to continue employing any number of workers during their period of employment.”

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A lockout is when an employer temporarily closes a workplace or stops work. It’s

different from permanently closing a business. Before 1860, a lockout was referred
to as a “turn-off.” A lockout serves as the employer’s counterpart to a strike.
• PYQ
Q. What are the various kinds of strikes mentioned in the Industrial Disputes Act,
1947?
• General Strike: In General Strike, the workmen join together for common cause
and stay away from work, depriving the employer of their labour needed to run his
factory
• Token Strike : a kind of General Strike. Token Strike is for a day or a few hours or
for a short duration because its main object is to draw the attention of the employer
by demonstrating the solidarity and co-operation of the workers.
• Economic Strike: Such strike happens due to economic demands like increment
of wages and allowances like house rent allowance, transport allowances, bonus,
etc.
• Sympathy Strike: In such strike union or workers of one industry join the strikes
already hailed by other union or workers.
• General strike: This strike is intended to increase the political pressure in the ruling
party by all unions or members in a region or state.
• Stay-in-Strike: It is also known as ‘tools-down-strike’ or ‘pens-down-strike.
workmen report to their duties, occupy the premises but do not work.
• Slow down strike: It means workers or unions don’t refuse to work but put pressure
on industries to get their demand by reducing or restricting the output of the
production of an industry.
• Hunger strike: workers go on strike without having food/water to redress the
grievances.
• Wildcat strike: Such strike happens by the workers without the consent of union
and authority.
• Prohibition of Strikes and Lock-outs:
• Section 22 of the Industrial Disputes Act, 1947, deals with the prohibition of strikes
and lock-outs.

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 According to Sec. 22(1):

• No person employed in a public utility service shall go on strike in breach of contract:
a. without giving to the employer notice of strike, as hereinafter provided, 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;
d. during the pendency of any conciliation proceedings before a conciliation officer
and seven days after the conclusion of such proceedings.

• Lay-off
• Meaning:
• Lay-off means temporarily keeping a workman without or away from work. The
question of keeping without work arises when employers are unable to provide
employment to the workman for the reason beyond his control such reason or situations
may be:
o Shortage of raw materials o
Economic recession o
Breakdown of machinery o
Accumulation of stocks o
Layoff

• Definition of Layoff:
• Section 2 (kkk) of the Industrial Disputes Act, 1947 defines the term ‘Layoff’’ as the
inability, failure, or refusal of the employer to provide employment to a workman whose
name is mentioned in the muster roll of his industrial establishment and who is not
retrenched due to the lack of power, coal, raw materials, accumulation of stocks,
breakdown of machinery or natural calamity for any other relevant reason.

• Essentials of Lay-off:
• There must be failure, refusal or inability on the part of the employer to give
employment to a workman.
• The failure, refusal or inability should be on account of shortage of coal, power or raw
materials or accumulation of stocks or breakdown of machinery, or natural calamity, or
any other connected reason.

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The workman’s name should be on the muster rolls of the industrial establishment.
• The workman should not have been retrenched.

Case law: Central India spinning, weaving and manufacturing co.ltd Nagpur v/s state
industrial court 1959 Bombay HC The Bombay high court held that the key to the
definition is to be found in the world failure, refusal or inability of an employer these world
make it clear that employment has to be on account of a cause which is independent of any
action or inaction on the part of the workmen themselves.

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UNIT-IV

Concept and Importance of Social Security :

• Definition of social security:
• According to ILO, Social security is the protection that a society provides to
individuals and households to ensure access to health care and to guarantee
income security, particularly in cases of old age, unemployment, sickness,
invalidity, work injury, maternity or loss of a breadwinner.
• Social security policies cover various types of social insurances, such as pension,
health insurance, disability benefit, maternity benefit, and gratuity.
• The importance of social security for the employee as well as the society is
incredibly high:
• social and economic justice and equality in the society.
• protecting employees in the event of contingencies,
• Social Security protects not just the subscriber but also his/her entire family by
giving benefit packages in financial security and health care.
• Social Security schemes are designed to guarantee at least long-term sustenance
to families when the earning member retires, dies or suffers a disability.
• Article 43 of the Constitution of India talks about the responsibility of the state
to provide social security to the citizens of this country by effective legislation,
economic organizations or in any other appropriate way to all workers,
industries, a living wage, a decent standard of living, time for leisure and social
and cultural opportunities. Social Security policies cover various types of social
insurance, maternity benefits, pensions, gratuity, disability benefits, etc.

The Employees State Insurance Act,1948—

• Contribution Section 4; Principal employers under this Act have to pay a sum of
money to the Employees State Insurance Act Corporation according to relevant
provisions.
Corporation Section 6: This important definition describes the Employees State
Corporation that this Act has set up. This corporation has several important powers
and duties.
• Employment Injury Section 8: These injuries must be a result of an accident or
occupational disease arising in the course of employment.
• Dependant Section 6A : the ESI Corporation pays some money to his dependants.
According to the Act, dependants are certain relatives of a deceased worker.

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• Employee Section 9: An employee is basically a person who is employed for wages in

relevant factories/establishments.
• Principal Employer Section 17 : A principal employer is generally the owner or
occupier of a factory to which the Act applies.
• Employees State Insurance Funds contribution:
• The contribution is a determinable amount of money payable by both the employer and
the employee, as per the situation, to the corporation.
• The rates, while usually prescribed by the government, are not set in stone, and are
subject to change. Rates defined by the government are mostly set as the unit standard
for the contribution payable by the employer.

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UNIT-V

The Payment of Wages Act, 1936

• Definitions:
• Employed person sec 2 (i) includes the legal representative of a deceased employed
person.
• "industrial or other establishment"[sec 2 (i1)] means any – (a) tramway service or
motor transport service .

(aa) air transport service

(b) Dock wharf or jetty
(c) inland vessel mechanically
(c) inland vessel mechanically propelled;
(d) mine quarry or oil-field;
(e) plantation;
(f) workshop or other establishment

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 (g) Any place where work is being done on the
construction, development, or maintenance of
buildings, roads, bridges, or canals, or on operations
related to navigation, irrigation, or water supply, or
on the generation, transmission, and distribution of
electricity or any other form of power;
(h) any other establishment or type of establishments
that the Central Government or a State Government
may specify by publication in the Official Gazette,
having regard to the nature of the establishment, the
necessity for protection of persons employed within,
and other relevant circumstances.

Wages
• Wages have been defined under Section 2(iv) of the Payment
of Wages Act, 1936. “Wages” refers to all remuneration
(whether paid in the category of wage entitlements or
otherwise) represented in cash or qualified to be presented
in finances that would be due for payment to a worker in
respect of his occupation or work performed in such
employment.
• Also, wages include payments if the express or implied
terms of employment are satisfied, and include:
o Amount payable under the terms of
employment o Amount payable under any
award, settlement, or court order o Paid as
overtime labor or for vacations / leave period

Payable on account of Termination of employment

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The Factories Act, 1948:

• Factory: The definition of a factory is specified in Section 2(m)
of the Factories Act 1948. A factory is any premises, where it
has certain limits and boundaries-
• If a manufacturing process is regularly carried out in any
portion of the premises with the use of power and with ten or
more workers now engaged in such activity or were engaged in
such work on any day during the previous twelve months; or
• If any element of a manufacturing process is performed inside
the premises without the use of power and is regularly
performed with twenty or more employees working or having
worked there on any given day within the previous twelve
months.

• Manufacturing process:
• The manufacturing process definition is specified under Section
2(k). The term
“manufacturing process” refers to any process for:
• Generating, altering, repairing, ornamenting, finishing,
packing, oiling, washing, cleaning, demolishing, or otherwise
treating or adapting any article or;
• A substance in preparation for use, sale, transportation,
delivery, or disposal or; • Producing, transforming, or
transmitting energy or;
• Creating type for printing, letterpress printing, lithography,
bookbinding, or any other similar process or;
• Constructing, reconstructing, repairing, refitting, finishing, or
breaking up ships or vessels, etc. (as defined by the 1976
Amendment Act);
• Preserving or storing any item in cold storage.

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• Worker: The worker definition is specified under Section 2(l).

A worker is someone who performs any job associated with a
manufacturing process, whether they are employed directly or
indirectly through an agency, a contractor, or any other means.

Hazardous process: Hazardous process is defined in Section 2(cb) of

the Act. any process or activity related to the industry that requires
special care of raw materials that are used in it, intermediate or finished
products, by-products, wastes, or effluents that would cause material
impairment to the health of those engaged in or connected with it or that
result in polluting the environment

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Trade Union Act, 1926

[Act No. 16 of Year 1926]
Contents

Sections Particulars

Chapter I Preliminary

1 Short title, extent and commencement

2 Definitions

Chapter II Registration Of Trade Union

3 Appointment of Registrars

4
Mode of registration
5

Application for registration

6 Provisions to be contained in the rules of a trade union

7 Power to call for further particulars and to require alternations of names

8 Registration

9 Certificate of registration

10 Cancellation of registration

11 Appeal

12 Registered office

13 Incorporation of registered trade union

14 Certain Acts not to apply to registered trade unions

Chapter III
Rights And Liabilities Of Registered Trade Unions

15 Objects on which general funds may be spent

16 Constitution of a separate fund for political purposes

17 Criminal Conspiracy in trade disputes

18 Immunity from civil suit in certain cases

19 Enforceability of agreements

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20 Right to inspect books of trade unions

21 Rights of minors to membership of trade unions

21A Disqualifications of office-bearers of trade unions

22 Proportion of office-bearers to be connected with the industry

23 Change of name

24 Amalgamation of trade unions

25 Notice of change of name or amalgamation

26 Effects of change of name and of amalgamation

27 Dissolution

28 Returns

Chapter IV
Regulations

29 Power to make regulations

30 Publication of regulations

Chapter V Penalties And Procedure

31 Failure to submit returns

32 Supplying false information regarding trade unions

33 Cognizance of offences

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