2023

Labour Law

SUMMARY NOTES
HEMANT PATIL GLC III-I

SUMMARY NOTES
 LABOUR LAW 03/15/2023

CONTENTS

THE TRADE UNIONS ACT, 1926........................................................................................................................... 4

Objectives ......................................................................................................................................................... 4
Functions ........................................................................................................................................................... 4
Why employees join Trade Unions? .............................................................................................................. 4
Criticism of Trade Unions ............................................................................................................................... 4
Mode of registration ........................................................................................................................................ 5
INDUSTRIAL DISPUTES ACT, 1947 ...................................................................................................................... 6
Objectives ........................................................................................................................................................... 6
Scope .................................................................................................................................................................. 6
Schedules List ................................................................................................................................................... 6
Measures to prevent conflicts & disputes .................................................................................................... 6
Definitions ...................................................................................................................................................... 7
Layoffs & Retrenchments ............................................................................................................................... 8
Procedure to adjudicate/resolve disputes ................................................................................................... 10
Retrenchments ............................................................................................................................................... 11
Procedure of Retrenchment ..................................................................................................................... 11
Lay off .............................................................................................................................................................. 11
Exceptions to the procedure .................................................................................................................... 12
Lockout ............................................................................................................................................................ 12
Strike ................................................................................................................................................................ 13
Collective Bargaining ........................................................................................................................................... 14
Importance .................................................................................................................................................. 14
Types of Collective Bargaining ................................................................................................................ 14
Process of Collective Bargaining ............................................................................................................. 15
Procedure to recognize Trade Union ...................................................................................................... 15
Factories Act, 1948............................................................................................................................................ 17
Facilities & convenience: ......................................................................................................................... 17
Additional facilities: .................................................................................................................................. 17
Welfare (Chapter V, S 42 – 50) .................................................................................................................... 18
MRTU and PULP Act, 1971 ................................................................................................................................ 19
Objectives: ...................................................................................................................................................... 19
Employee & Employer ................................................................................................................................... 19
Industrial Court (S4) ...................................................................................................................................... 19
Duties of Industrial Court (S5) ................................................................................................................. 19
Labour Court (S6) ........................................................................................................................................... 19

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Duties of Labour Court (S7) ...................................................................................................................... 20

Investigation Officer (S8).............................................................................................................................. 20
Duties of Investigation Officer (S9) ........................................................................................................ 20
Procedure for recognition of Union (S11/12) ............................................................................................ 20
Procedure .................................................................................................................................................... 20
Application for cancellation of Trade Union recognition S13 ............................................................ 21
Obligations of recognized Trade Union recognition S19 ......................................................................... 21
Rights of recognized Trade Union recognition S20 .................................................................................. 21
Illegal Strike.................................................................................................................................................... 22
Illegal Lockout ................................................................................................................................................ 22
Unfair labour practices ........................................................................................................................................ 22
Schedule 2: Employer ULPs .......................................................................................................................... 22
Schedule 3: Trade Union ULPs ...................................................................................................................... 22
Schedule 4: General ULPs (everyone TUs, Workmen and Employers) ......................................................... 22
Apprenticeship Act, 1961 ................................................................................................................................. 24
Apprentice obligations .................................................................................................................................. 24
Employer Obligations .................................................................................................................................... 24
International Labour Organization .................................................................................................................. 25
Composition & Structure .............................................................................................................................. 25
Goals & Mission............................................................................................................................................... 25
Key Long Answer Qs:............................................................................................................................................ 26
Collective Bargaining .................................................................................................................................... 26
Merits ........................................................................................................................................................... 26
Demerits ....................................................................................................................................................... 26
Industrial Dispute. Individual Workman? ....................................................................................................... 27
Conciliation Officer ....................................................................................................................................... 31
Board of Conciliation..................................................................................................................................... 31
Court of Inquiry .............................................................................................................................................. 32
Labour Court ................................................................................................................................................... 32
Industrial Tribunal ......................................................................................................................................... 32
National Tribunal ........................................................................................................................................... 32
Industrial Dispute with Case Laws ....................................................................................................................... 32
Workmen & NOT Workmen ............................................................................................................................ 33
Termination of Workmen under ID Act ........................................................................................................... 33
Key Case Laws – Industrial Disputes Act, 1947 ................................................................................................... 35
Key case laws - MUTP & PULP Act ....................................................................................................................... 35

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Key case laws - Factories Act, 1948 ..................................................................................................................... 36

Disclaimer........................................................................................................................................................... 37

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THE TRADE UNIONS ACT, 1926

Voluntary organization of workers & a body corporate (with perpetual succession & common seal),
formed to promote and protect their interests & welfare by through collective actions. Such
organization is most suitable form to balance & improve industrial relations between workmen &
employers.

OBJECTIVES

1. Protect rights, liabilities & responsibilities of workers

2. Steady Employment
3. Rationalizing personnel policies
4. Voice in decisions affecting workers
5. Recognition & Participation
6. Regulating relationship between workmen and Employer

FUNCTIONS

1. Collective bargaining between management & workers (Working conditions, salaries, bonus
etc)
2. Advise management on personnel policies & practices
3. Taking up individual & collective grievances to management
4. Proper collection & utilization of funds (membership fees etc)
5. Welfare & recreational activities for workers
6. Organize demonstrations and strikes
7. Securing legislative protection for workers
8. Inculcate sense of discipline and responsibility amongst workmen

WHY EMPLOYEES JOIN TRADE UNIONS?

1. Protecting their interest in the organization, avoid exploitation

2. Protect economic interest in case of financial assistance situations
3. Sense of participation & belongingness
4. Platform to exhibit leadership & self-expressions
5. Motivation from any social background

CRITICISM OF TRADE UNIONS

1. Narrow perspective (Departmental), Not privy to larger organizational view

2. Personal interests of Trade Union Leadership
3. Over use of militant functions (Strikes etc) may fetch derecognition
4. Resistance to change

For regulating relations (Employers and Employees – all combinations) & for imposing restrictive
conditions on the conduct of trade or business.

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Mode of registration

7 or more members of TU, applying to Registrar (S3) appointed by appropriate Government, at least
10% or 100 workmen (whichever is Less) on date of application (S5) working in industry. Registration
(Form A) to include general statement of assets/liabilities if TU is operating for more than 1 year
prior to the application. Executive (for max 3 years) & Office bearer election & removal.

(S6) Minimum subscription (Rs.1 for Rural, Rs.3 Unorganized, Rs.12 Organized)

(S8) Registration and

(S9) Certificate of registration,

(S10) Cancellation of registration (Registrar to give 2 months’ notice with reason, cannot review once
cancelled,

(S11) Appeal for refusal to register TU by registrar to high court within 60 days,

(S12) Registered Office (any changes to be notified to Registrar within 14 days),

(S13) Incorporation of TU, Rights (Perpetual Succession Body corporate, common seal, hold & acquire
property, can sue/can be sued)

(S14) Acts not applicable to TU (Companies Act, Societies Act, Co-Op Societies Act)

(S15) General funds

(S16) Separate political fund (optional)

(S17) Immunity for office bearer from criminal conspiracy (under IPC)

(S18) Immunity from Civil suit in certain cases

(S20) Right of members to view books of accounts

(S21) Rights of minor (15+ can be member, 18+ Executive/office bearer)

(S21 – A) Disqualification of office bearers (Not 18+, convicted in last 5 years)

(S22) Proportion of office bearers (50% for unorganized from industry, for others 1/3 or 5 – whichever
is less)

(S23) Change of name (Consent of 2/3, Notice to Registrar)

(S24 – 26) Amalgamation

(S27) – Dissolution (Notice to Registrar within 14 days, duly signed by at least 7 members and
secretary)

(S28) Returns to registrar, by 31DEC

(S31-33) Penalties for non-submission, delay, falsified info, Omissions

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INDUSTRIAL DISPUTES ACT, 1947

To ensure industrial peace, through given form of procedure & machinery for investigation & (just
& equitable) settlements of industrial disputes. (Peaceful resolution of disputes & Promote
Harmonious relations between employers and workers)

OBJECTIVES

1. Promotion of measures to maintain industrial peace (Good industrial relations between

employers and workmen)
2. Settling industrial disputes,
3. Prevention of illegal strikes & lockouts,
4. Relief in the matter of layoffs, closures, women,
5. Promotion of collective bargaining.

SCOPE

1. Whole of India
2. All industrial establishments employing workmen (including non-profit (ICWA), charitable
ones, Central & State Government owned)
3. Technical & Non-technical Employees, including apprentice, part time & casual worker.
4. Exclude: Managerial & Administrative workmen (subject to other acts such as Army/Airforce
Acts, Civil Services such as Police, Prison etc), Medical Representatives
(Canvassing/promotion of sale). Post & Telegraph, Telecom, Central Institute of Fisheries,
Trade Unions & Construction/Maintenance of Highways. Public Utility Schedule 1 (List)
5. Covers strikes, lockouts, layoffs and retrenchments.
6. Applicable only to operational industries, not dead ones.
7. Act does not discriminate religion (Hospital Employees Union Vs Christian Medical College)
8. Employers’ failure to keep his oral assurances is NOT a dispute.
9. Industrial dispute can be initiated or continued by legal heirs of workman even upon his
death.
10. Industrial dispute can be raised by single workman or his union, if it relates to his dismissal,
discharge, termination or retrenchment.

SCHEDULES LIST

1. Public Utilities Service

2. Matters within jurisdiction of Labour Court
3. Matters within jurisdiction of Industrial Tribunal
4. Service conditions changing which notice is required
5. Unfair Labour Practices (Chapter V-C, S25U Violation 6 Months and/or 1000 Fine)

MEASURES TO PREVENT CONFLICTS & DISPUTES

1. Setting up of works committee (100+ workmen)

2. Prohibition of service condition changes without notice to workmen affected by such changes
3. Prohibition of strikes (6 Weeks prior notice, strike within 14 days of notice, no strike upon
strike date expiry unless fresh notice is served)
4. Prohibition of unfair labour practices
5. Regulation of layoffs & closure of establishment

S25 - Layoff compensation (50% of wages), One month notice (3 months if 100+ employee
establishment) and Obtain permission from Government

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DEFINITIONS
2(K) Industrial Dispute: Any dispute (between employers & workmen) related to employment & non-
employment (layoff/retrenchment etc), terms or work conditions. Dispute of Individual workmen
(Union or no union) included.

Regarding separation of services, employee applies to Conciliation officer. After 3 month (and before
3 years), he may approach Labour court/Tribunal for unresolved dispute.

Layoff - The Industrial Disputes Act 1947 is a law in India that regulates the employment and working
conditions of workers in industrial establishments. The Act provides for various measures to prevent
and settle disputes between employers and workers, including layoffs.

A layoff is a temporary suspension of employment due to reasons such as lack of work or business,
financial constraints, or restructuring. The Industrial Disputes Act 1947 defines a layoff as the
failure, refusal or inability of an employer on account of a natural calamity or for any other
connected reason, to give employment to a workman whose name is on the muster rolls of his
industrial establishment and who has not been retrenched.

According to the Act, a layoff can only be implemented in certain situations, and there are several
conditions that must be met to ensure that workers are not unfairly affected. For example, an
employer must give notice to the workers concerned and the appropriate government authorities
before implementing a layoff. The notice period and compensation payable to the workers also
depend on the duration of the layoff.

Overall, the Industrial Disputes Act 1947 aims to balance the interests of employers and workers, and
provide a mechanism for resolving disputes through conciliation, arbitration or adjudication. The Act
also provides for the formation of labor unions and collective bargaining, which gives workers a voice
in negotiating their working conditions and wages.

According to the Industrial Disputes Act 1947, a layoff can be implemented by an employer in certain
situations, subject to certain conditions. Here are some of the essentials of a layoff under the Act.

Notice period: An employer must give a notice of at least 60 days to the appropriate government
authority and the workers concerned before implementing a layoff. The notice must state the
reasons for the layoff and the expected duration of the layoff.

Compensation: Workers who are laid off are entitled to compensation, which is usually half of their
basic wages and dearness allowance, subject to a maximum of 50% of the total amount of their
average earnings. This compensation is payable for the entire period of the layoff, subject to a
maximum of 45 days in a year.

Recall: If the layoff continues for more than the specified period, the workers concerned are deemed
to have been retrenched. When the employer wants to recall the workers after the layoff period,
they must be given priority for re-employment over new workers.

Dispute resolution: If there is any dispute regarding the implementation of a layoff, the matter can
be referred to the appropriate government authority for conciliation, and if necessary, to a labor
court or industrial tribunal for adjudication.

Retrenchment is a process by which an employer terminates the services of a worker due to

reasons such as financial constraints, restructuring, or closure of the establishment. The
Industrial Disputes Act 1947, which is a law in India that regulates the employment and working
conditions of workers in industrial establishments, provides for certain measures to be taken by an
employer when retrenching workers.

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Under the Industrial Disputes Act, retrenchment is defined as the termination of a workman's
service for any reason other than as a punishment inflicted by way of disciplinary action.
Retrenchment may occur due to several reasons, such as lack of work, business losses, or
technological changes.

There are certain essential conditions that an employer must fulfil before retrenching any worker.
Here are some of the essential conditions of retrenchment:

Notice period: The employer must give a notice of at least 30 days to the worker who is being
retrenched. The notice must state the reasons for retrenchment, the effective date of retrenchment,
and the amount of compensation payable.

Compensation: The employer must pay compensation to the worker who is being retrenched. The
compensation must be equal to 15 days' average pay for every completed year of continuous service,
or any part thereof in excess of six months.

Selection criteria: If an employer needs to retrench a group of workers, the selection of workers to
be retrenched must be based on a fair and objective criteria. The criteria may include factors such
as efficiency, quality of work, and seniority.

Re-employment: If the employer wants to fill any vacancies in the establishment within one year of
the retrenchment, the retrenched worker must be given the first preference for re-employment.

Notice to government authority: If an employer proposes to retrench 100 or more workers, they
must give notice to the appropriate government authority.

Compliance with other laws: The employer must comply with other applicable laws such as labor
laws, industrial laws, and any collective bargaining agreements with workers.

LAYOFFS & RETRENCHMENTS

 S25 (a) Not applicable where less than 50 employees work, & working on average per working
day pay, Seasonal/intermittent industries
 S25 (b) Continuous Service (including Authorised leave, legal strike, accident, sickness
uninterrupted service), worked at least 240 days in preceding 12 calendar months (190 in
mining industry), (available leave, temporary disablement on official duty, maternity leave
counted as working days)
 S25 (C) Laid off workmen’s rights (worked for at least 1 year) – compensation of 50% of
basic wages + Dearness allowance
 S25 (d) Duty of Employer: Create muster roll even for those who are not coming on work
 S25 (e) Workmen NOT entitled for compensation: 1. Refusal by workmen of alternative
same employment/work within 5 miles, 2. Absent for continuous 1 week, 3. Conspired with
others to reduce output
 S25(f) Conditions for Retrenchment: 1. One months’ notice + 1 month salary 2.
Retrenchment compensation (15 days/completed year in the industry) 3. Follow prescribed
manner by appropriate Government. Retrenchments should be legal.
 S25 (F) – Not entitled for compensation if:
o Refusal to accept alternate employment (same conditions, within 5 miles)
o Absence at the appointment time
o Strike or Go-slow
 S25 (FF) – Compensation & notice in case of company ownership transfer (not if work
terms/conditions remain unchanged or in favour of workman)

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 S25 (FFA) 60 days’ notice of establishment closure (not for workmen <50, infrastructure
builders, or exception like death of employer who has no successor)
 S25 (FFF) – Compensation in case of closure (either 15 days/working year or if financial
inability (closure reason), then average of last 3 months pay
 S25 (G) – Retrenchment Procedure (LIFO Start from last employed in same class)
 S25 (H) – Re-employment of retrenched workmen
 S25 (M) – Prohibition on Layoff (No layoff without prior permission of appropriate
government (not in case of Natural Calamity or power shortage), application in prescribed
manner to appropriate government, Validation of layoff genuinity, adequacy and reasons,
60 days limit for Government to act (else deemed approved), Compensation & reinstatement
if layoff is illegal, Procedure Not applicable in case of employer death, accident.
 S25 (N) Conditions of Retrenchment (12+ months workmen get 3-month notice, prior
permission from appropriate government, Application copies also served to employee being
retrenched, other procedure same as layoffs, same exceptions for waiver of procedure,
 S25 (O) – Procedure for closing down – 90 days’ notice, Application copies to appropriate
government and union (exception contract business like infrastructure/dam/bridges), same
procedure of government due diligence 60 days (30 days if Tribunal) or deemed approved.
Any order passed is binding and valid for 1 year thereof. Same exceptions for waiver of the
application & subsequent procedure (death of employer etc) – which is approved by
appropriate government.
 2 (kkk) - Layoff is failure, refusal or inability of employment of workman (whose name is
in muster and who is not retrenched) by employer on account of:
o Shortage of power, coal or raw material
o Accumulation of stocks,
o Breakdown of machinery
o Natural calamity
o Other connected reason

S22 – Prohibition of strikes & lockouts (Public utility services unless fulfil certain conditions),

S22(1) - Strike Conditions: Notice to employer in prescribed manner, strike within 6 weeks of notice
but not within first 14 days – reasonable time for government/employer to find opportunities to stop
strike,

S22(2) - Lockout conditions: Notice in prescribed manner to workmen, lockout within 6 weeks of
such notice, after first 14 days,

S22(3) - Strike/lockout already in existence (employer to intimate specified authority, not notice
for ongoing strike), Employer must report such notices to appropriate government within 5 days,

S23 – General Prohibitions for strikes/lockouts: Not valid during any proceedings (when matter is
sub judice), after 7 days of conclusion/judgement, In breach of contract, During the period of
settlement/award.

S24 – Illegal strikes/lockouts – If in contravention of S22, S23, S10 (3) Order prohibiting any
strike/lockout by appropriate government, S10 A (4 A) - Order prohibiting any strike/lockout by
appropriate government in connection with any dispute referred to arbitration.

Workman may act as a representative of another workman.

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PROCEDURE TO ADJUDICATE/RESOLVE DISPUTES Conciliation officer carry CPC powers (DAPIS

Discovery, Affidavit, Public record access, Issue enquiry commission, Summon & enforce attendance

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RETRENCHMENTS

Termination of surplus workmen & their services, for any reason other than punishment, voluntary
retirement, superannuation, non-renewal of contract or termination due to continued ill-health
(Anand Bihari Vs Rajasthan Transport).

Conditions to be fulfilled prior to the valid retrenchments:

S25 (F) – Apply to workmen with continuous service of at least 12 months

1. 1 month written notice (or salary in lieu of) to the workman with reason, else pay wages for
notice period if immediate
2. 15 Days average pay for each completed year of service, provided it exceeds 6 months
3. Notice, In prescribed manner, to appropriate Government/Authority

Retrenchment is “Void ab initio” if above conditions remain unfulfilled

PROCEDURE OF RETRENCHMENT
S25 (G) – Follow Principle of Retrenchment – Last Recruited, First Go (LIFO)

Exceptions:

A. Provided different procedure specified in the valid agreement between employer &
workmen, or workman is not citizen of India).
B. Management may, on sound and valid reasons:
1. Retain employees possessing special skills, and/or
2. Retrench senior workmen (firsts recruited) basis irregularity and inefficiency

Re-employment of retrenched Workmen

S25 (H) Employer obligated to offer first preference to retrenched workmen for re-employment.
Workmen does not infer right to secure his previous employment terms/conditions of service.

LAY OFF

S25 (M) Prohibition of Lay off

A. Workmen, on muster roll, to be laid off only upon if not given any work for 2 hours due to:
a. Shortage of power, coal or raw material
b. Accumulation of stocks,
c. Breakdown of machinery
d. Natural calamity
e. Other connected reason
f. In mines, due to fire, flood, gas, explosion (for max 30 days)
B. For >100 Employees, Prior approval of Government through an application in prescribed
manner, with reason. A copy of such application must be provided to the workmen.
C. Appropriate government will enquire, and give reasonable hearing to both workmen &
employer. Order of grant/refusal in Writing after judging all facts, copy to both parties. If
no order within 60 days, lay off is deemed granted. Such order is binding on both parties for
a period of 1 year. Appropriate government may review/refer its order to the tribunal – either
on its own or through application by employer/workmen.
D. Tribunal award within 30 days.

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EXCEPTIONS TO THE PROCEDURE

1. Accident in the establishment
2. Death of Employer
3. Government may order acceptance of such exceptions
4. Workmen refusal to accept alternate employment within 5 miles with no change in
terms/conditions

NO Strike if pending proceedings (Arbitration, Labour Court or Conciliation)

Closure

Permanently closing down the establishment (building dams/bridges/projects exempted), 90 days

prior approval from Appropriate Government, copy to workmen representation.

LOCKOUT

Employer initiated Provisional/Temporary Closure or suspension of workplace or refusal of work by

the employer, due to strike or political reasons. Intention to re-employ workers if demands accepted.
Weapon of Employer. For Economic and/or Non-economic reasons. To enforce terms on employees.
No wages for that period of lockout if lockout is legal. NO lockout during pendency of arbitration,
labour/industrial court or tribunal or within 7 days upon judgement award. Punishment for illegal
lockout is fine of Rs.1,000/- and imprisonment for 1 month.

A lockout is a temporary or permanent closure of an industrial establishment by an employer, with

the aim of preventing workers from entering or working in the establishment. The Industrial Disputes
Act 1947, which is a law in India that regulates the employment and working conditions of workers
in industrial establishments, provides for certain measures to be taken by an employer before
declaring a lockout.

Under the Industrial Disputes Act, a lockout is defined as the temporary closing of a place of
employment, or the suspension of work, or the refusal by an employer to continue to employ any
number of workers, where such closing, suspension or refusal occurs in the course of an industrial
dispute.

The essential conditions of lockout under the Industrial Disputes Act include:

1. Notice period: The employer must give a notice of at least 14 days to the workers before
declaring a lockout. The notice must state the reasons for the lockout and the date on which
it will commence.

2. Prior permission: The employer must obtain prior permission from the appropriate
government authority before declaring a lockout. This permission can be granted or refused
based on the circumstances of the case.

3. Compensation: The employer must pay compensation to the workers who are affected by the
lockout. The compensation must be equal to 50% of the total pay due to the workers during
the lockout period.

4. Compliance with other laws: The employer must comply with other applicable laws such as
labor laws, industrial laws, and any collective bargaining agreements with workers.

Overall, a lockout is a measure that an employer can take in certain situations, but it is subject to
certain procedures and conditions under the Industrial Disputes Act. The Act aims to protect the
interests of workers and ensure that they are not unfairly affected by lockouts. The Act also provides

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for a mechanism to settle disputes between the employer and workers, and allows workers to
challenge the lockout if they feel that their rights have been violated.

STRIKE

Temporary cessation of work by employees, with intention to stop the work. Weapon of Employees.
Primarily for economic reasons. Varieties of strikes. To gain concession from employer. Workmen get
paid for in Legal strike. Types include:

a. General strike: Legal, through notice for unfulfilled demands by target date
b. Sit-down strike: Just sit down at workplace to cripple the production
c. Tool/Pen-down strike: for white collar workers, do not touch the pen
d. Go-slow strike: Do regular work with as much slow, employer spend remains without
any productivity
e. Sick-out strike: Take valid sick leave same day, no rules broken
f. Gherao: Human barricade to restrain management personnel or vehicles from moving
out
g. Sympathetic strike: For supporting other establishment/industry strikes
h. Picketing: Workmen persuaded for non-cooperation at gates by a few. Non-violent
picketing is legal. Draws public attention to the strike.
i. Boycott: Absence from work, disturb normal functioning of establishment, Non-
cooperation with employer
j. Hunger Strike: Fasting

In case of Public Utility Service, strike can only happen after 14 days of notice day and within
6 weeks of notice day. Strike can go as long, if it begins within week 3 – week 6 period. If
lapsed, fresh notice is needed. Employer to inform Government within 5 days of such notice.
NO strike during pendency of arbitration, labour/industrial court or tribunal or within 7 days
upon judgement award.

A strike is a concerted and temporary cessation of work by a group of workers, with the aim of
protesting against the employer or achieving some demands. The Industrial Disputes Act 1947, which
is a law in India that regulates the employment and working conditions of workers in industrial
establishments, provides for certain measures to be taken by workers before declaring a strike.

Under the Industrial Disputes Act, a strike is defined as a cessation of work by a group of workers
who are acting in concert, or a concerted refusal of any number of workers to continue to work or to
accept work, which is due to an industrial dispute.

The essential conditions of a strike under the Industrial Disputes Act include:

1. Notice period: The workers must give a notice of at least 14 days to the employer before
declaring a strike. The notice must state the reasons for the strike and the date on which it
will commence.

2. Prior permission: The workers must obtain prior permission from the appropriate government
authority before declaring a strike. This permission can be granted or refused based on the
circumstances of the case.

3. No victimization: The workers who participate in a strike cannot be victimized by the

employer, i.e., they cannot be dismissed, discharged, or otherwise punished for participating
in the strike.

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4. Compliance with other laws: The workers must comply with other applicable laws such as
labor laws, industrial laws, and any collective bargaining agreements with the employer.

5. Peaceful strike: The strike must be peaceful and not involve any violence or damage to
property.

Overall, a strike is a measure that workers can take in certain situations, but it is subject to certain
procedures and conditions under the Industrial Disputes Act. The Act aims to protect the interests of
both workers and employers and ensure that strikes are carried out in a peaceful and lawful manner.
The Act also provides for a mechanism to settle disputes between the workers and the employer, and
allows the employer to challenge the strike if they feel that their rights have been violated.

COLLECTIVE BARGAINING

Meaning: Equalization of bargaining process between employer & employees, regarding

essential conditions of employment, to avoid & resolve conflicts. It is NOT a settlement
machinery, but a preventive machinery.

Features:
1. It’s a collective process with participation of representatives from both employer and
employees
2. It’s a continuous process
3. Negotiations, Administration and enforcement of agreed contract
4. Flexible & dynamic process
5. Give & Take approach drive collective ownership to decisions
6. Preventive (Not settlement) system to avoid conflicts
7. Achieve & maintain the discipline, harmony and cooperation

IMPORTANCE

FOR EMPLOYEES:
k. Sense of self-respect & belongingness
l. Increased bargaining power
m. Increased morale & productivity
n. Strengthened power of Trade Union
o. No exploitation through unilateral decisions from Management

FOR EMPLOYERS:
a. Continuous discussions with employees drive productivity
b. Easier to resolve issues at preventive level
c. Reduced gap between hierarchy
d. Reduced churn of employees

FOR SOCIETY:
a. Industrial peace
b. Controls labour exploitation
c. Contribute economic & social development of country
d. Create sense of equality in the society

TYPES OF COLLECTIVE BARGAINING

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A. Conjunctive or Distributive (Issues related to Economic Benefits, Management wants

increased workload/reduced wages and workmen want opposite)
B. Co-operative (Join to collectively resolve issues of common interest related to jobs –
example industry difficulty, shortage of power/raw material, overstaffing etc)
C. Productive (Incentivising for higher productivity, resulting extra benefit to workers)
D. Composite (Wages + Working conditions, environmental issues, recruitment & training
policies. Workers also participate in mergers, acquisitions, amalgamations to protect
their interests). Compromise on both sides, none remain fully satisfied.

PROCESS OF COLLECTIVE BARGAINING

1. Preparation of Negotiation Team (Competent Representation of both employees and
employer, must obtain necessary authority to bargain & decide, accurate knowledge of
issues and impacts, Unbiased & Balanced Team)
2. Preparation of demands (Both side lists of demands)
3. Negotiation Process (Piece mill or comprehensive view on issues, Process & Authority
must be clearly spelt out by the management)
4. Bargaining strategy (Situational, Nature of demands, market conditions. Focus on overall
outcome.)
5. Preparation of Agreement (Written outcome of bargaining, signed by both parties,
communicated to all concerned, Called Settlement per Clause 2(p))
6. Administration of Agreement (as per agreement terms/conditions)

Here are some important collective bargaining case laws in India:

1. Air India Statutory Corporation v. United Labour Union (2017): The Supreme Court held that
the collective bargaining agreement between the employer and employees is binding and
enforceable under the Industrial Disputes Act, 1947.
2. Bharat Forge Co. Ltd. v. Uttam Manohar Nakate (2016): The Bombay High Court held that the
employer cannot unilaterally change the terms and conditions of the collective bargaining
agreement without the consent of the employees or their union.
3. Management of M/S. Bharat Forge Co. Ltd. v. Bharat Forge Kamgar Union (2013): The
Supreme Court held that the collective bargaining agreement cannot be ignored or bypassed
by the employer, and any dispute arising out of it must be resolved through the mechanisms
provided under the Industrial Disputes Act, 1947.
4. Indian Hume Pipe Co. Ltd. v. Its Workmen (1960): The Supreme Court held that the collective
bargaining agreement cannot be ignored or violated by the employer, and any breach of the
agreement would constitute an industrial dispute.
5. Workmen of Firestone Tyre and Rubber Co. v. Management of Firestone Tyre and Rubber Co.
(1973): The Supreme Court held that the collective bargaining agreement should be
interpreted in a manner that is most beneficial to the employees, and any ambiguity in the
agreement should be resolved in favor of the employees.

These cases highlight the importance of collective bargaining in resolving disputes between
employers and employees, and the binding nature of the collective bargaining agreement under
Indian law.

PROCEDURE TO RECOGNIZE TRADE UNION

Every industrial establishment has ONLY 1 recognized union, and may have more than 1
unrecognized unions. This is a State Act.

S10 – Application of MRTU/PULP Act

a. >50 Employees in preceding 12 months (State can apply to even some with <50)

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b. Not for industries under Bombay Act

S11 – Application for recognition

a. Union with at least 30% memberships of total employees, in the last 6 months
b. Can Apply in Prescribed format
c. Industrial Court decides in under 3 months for group of concern
d. Normal case, application disposed in under 4 months

S12 – Procedure for Recognition On receipt of Application & prescribed fees (not more than Rs.5/-
), and if Industrial Court finds it suitable in initial scrutiny, it will display notice of such application
in the establishment, calling for any objections (from other unions, employees & employer affected)
on Why Recognition should not be granted to such union? If Industrial Court finds application in
accordance to prescribed procedure and norms, it will grant recognition to the union and issue
certificate. If industrial court finds the application is not bona-fide and in the interest of workers, it
shall not recognize. It also shall not recognize if the union initiated any illegal strikes in the preceding
6 months from the date of application.

S13 – Procedure of cancellation Upon holding an enquiry, a show cause notice can be for:

a. Recognition under mistake, misrepresentation or fraud

b. Memberships below required for last 6 months
c. Failed to observe qualifying criteria
d. Changed interests towards employer
e. Aided, instigated or commenced illegal strike
f. Another union has been recognized in its place

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FACTORIES ACT, 1948

28AUG1948, Came into force on 1APR1949 11 Chapters, 120 Sections,

Object: Regulate working conditions in manufacturing concerns. Take precautions for safety of
workers and prevention of accidents. To Secure –

a. Health, Safety & Welfare

b. Proper Working Hours, and
c. Other benefits to workers

Factory: Premise, where manufacturing process is carried out, with (10 workers) or without power
20 workers), on any day in the preceding 12 months. Act applicable to all factories. Factory include
open spaces within compound.

Manufacturing includes altering, repairing, ornamenting, pumping, generating/transmitting power,

Printing, constructing, cold storage etc.

Occupier is who has ultimate control over factory affairs (Partner/Director), held responsible for
compliance of Factories Act provisions. His/her name to be informed to the Chief Inspector of
Factories. His Duties include:

a. Ensure reasonable health, safety and welfare of workers while working at the factory
b. Information, Instructions, Training & Supervision
c. Maintenance of all places & machinery
d. Maintenance & monitoring of working environment

Covers Approvals, Licensing & Registration of Factories, Inspecting Authorities, Health, Safety,
Welfare, Working Hours, Young (<18) & Adult (>18) employment, Annual Leaves & Penalties.

Object: Regulate working conditions in the factories. Basic minimum health, safety & welfare for
factory workers.

Scope: Whole of India. All factories (Including State/Central, unless otherwise excluded)

S2(i) – Worker is employed person (including contractor), with or without knowledge of principle
employer, remuneration of not, in any manufacturing/cleaning process of machinery or premises/any
work connected to manufacturing process. NOT Army, Airforce or Navy.

FACILITIES & CONVENIENCE:

a. Keep factory clean
b. Safe & timely disposal of waste & affluents
c. Proper ventilation
d. Reasonable temperature
e. Dust & fumes below permissible limits
f. Artificial humidification as per prescribed limits
g. Avoid over crowding
h. Adequate drinking water, lighting, toilets, spittoons etc.

ADDITIONAL FACILITIES:
a. Ambulance room (>500 workers)
b. Canteen (>250 workers)
c. Restrooms with drinking water facilities (>150 workers)

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d. Creches (>30 Women workers)

e. Full time welfare officer (>500 workers)
f. Safety officer (>1000 workers)

Child (<15 Years age), Adolescent (15-18), Adult (18+), Young (Child or adolescent)

Manufacturing Process is comprehensive definition. Making, Pumping, Books, Power, Construct,

Transport etc.

WELFARE (CHAPTER V, S 42 – 50)

Purpose is to increase productive efficiency of workers.

S42 – Washing Facilities (adequate & Suitable, Separate for Male & Female, easily accessible
& Clean.

S43 – Storing & Drying Clothing For cloths not worn during working hours, for drying of wet
cloths, suitable, avoid thefts.

S44 – Facilities for sitting where work is standing condition, opportunity to rest, if chief
Inspector opinion allows sitting position work, he may instruct in writing to the occupier

S45 – First Aid Appliances Obligatory provision, First Aid Boxes or cupboards equipped with
prescribed contents, 1 for every 150 workers, Separate person – certified first aid treatment
- in charge. Ambulance room of prescribed size, equipment & qualified nursing staff, where
>500 workers. Readily available during working hours.

S46 – Canteen Mandatory where >250 workers, State rules for canteen standards, food served
& charges, managing committee for canteen, running expenditure - separate than foodstuff
– to be borne by employer.

S47 – Shelters, Rest rooms & Lunch Rooms Where >150 workers, adequate & suitable
shelters & rest rooms, no lunch room where canteen is provided, sufficiently lighted,
ventilated & clean

S41 – Creches where >30 women employed, suitable room for children under 6 years of such
working women, adequately lighted, ventilated, clean and safe, charge to trained women in
childcare, suitable provisions (washing/changing cloths of children, supply free milk &
refreshments, facility for breast-feeding at necessary intervals,

S49 – Welfare officers where >500 workers employed, State government prescribe numbers,
duties, qualifications, conditions of such officers

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MRTU AND PULP ACT, 1971

An act about procedure to recognize trade unions, their rights & duties in an Industrial establishment
(>50 Workers). This is a State Act. Regulate 3 pillars in Maharashtra Industries – Workers, Employers
and Trade Unions.

Act explains about procedure to recognize trade union, its rights & duties in an Industrial
establishment. 4 Schedules (1-3 Industrial Court, Part 1 of 4 – Labour Court). Applicable to all
industries covered under Bombay Industrial Relations Act 1946 & Industrial Disputes Act, 1947

3 Authorities (S4-9) Industrial Court, Labour Court, Investigating Officer

4 Schedules (1-3 Industrial Court Jurisdiction, Part A of 4th Labour court jurisdiction)

OBJECTIVES:

 Provide for recognition of Trade Unions

 Promote & facilitate collective bargaining
 Confer certain powers on unrecognized trade unions
 Define & provide for provisions to prevent unfair labour practices
 To constitute different authorities, confer certain powers & functions

EMPLOYEE & EMPLOYER

Employee In industry as defined as per Bombay Industrial Act (Maharashtra State) or Industrial
Disputes Act (Central Act) or Sales Promotion Employee Act). Does not include armed forces.
Employer if PSU, respective government and private sector, it’s the CEO. If no category mentioned,
department head is the employer.

Member: Ordinary member of the Union, upon paying membership fees with subscription arrears in
3 calendar months in immediately preceding 6 calendar months.

INDUSTRIAL COURT (S4)

a. Constituted by State Government through official gazette

b. Not less than 3 members, 1 of whom will be the president
c. Member is not connected with complaint to that court or industry affected by that complaint
d. Is/Has been a Judge of High Court or eligible for such position

DUTIES OF INDUSTRIAL COURT (S5)

a. Decide on application by Union for its recognition
b. Decide on application by another Union for its recognition, in place of existing union
c. Decide on application by another Union or employer for withdrawal, cancellation of any union
recognition
d. Decide complaints relating to Unfair Labour Practices
e. Assign work, give directions to Investigating officers (Verification of Memberships and
complaints)
f. Decide references made by any Civil/Criminal Courts
g. Decide appeals

LABOUR COURT (S6)

a. 1 or more labour courts are Constituted by State Government through official gazette
b. With specified jurisdiction local area

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c. Not less than 3 members, 1 of whom will be the president

d. All members shall be independent persons
e. Qualification: High court judge or such eligible
f. Age: Less than 60 Years

DUTIES OF LABOUR COURT (S7)

 Decide complaints relating to Unfair Labour Practices described in item 1 Schedule
IV, and to try offences punishable under this act (If employer does unfair practice
with any workman such as dismissing without reason or notice)
 Favourable to workers
 Workers can approach themselves or through Trade Union

INVESTIGATION OFFICER (S8)

a. Appointment through State Government, Public notification in the Gazette

b. Independent person
c. Qualification: Proficient in the field of Labour & Industrial Law
d. Age: <60 years

DUTIES OF INVESTIGATION OFFICER (S9)

a. Shall be under control of Industrial Court
b. Exercise powers & functions imposed on him by Industrial Court
c. Assist Industrial Court in matters of Union membership verifications
d. Assist Industrial & Labour courts investigating in complaints of unfair labour practices
e. Report any unfair labour practices to Industrial & Labour court (Name/Address of person and
other relevant information)

PROCEDURE FOR RECOGNITION OF UNION (S11/12)

a. Industries as per State, >50 employees (any day in preceding 12 months)

b. State can apply provisions to any unqualified industry, with 60 days’ notice
c. Provisions cease when <50 employees for continuous period of 1 year
d. Not Applicable to industries under Bombay Industrial Act, 1946

APPLICATION FOR RECOGNITION OF TRADE UNION S11

a. Any union, which has NOT less than 30% of total employees as its members I the preceding 6
calendar months from the date of application
b. Application in prescribed form to the Industrial Court
c. Industrial court will dispose off all such applications, within 3 months from the date of
application as far as possible, (4 months if not in local area)

PROCEDURE
a. Receipt of application for recognition of Trade Union in prescribed form and fees payment
(under Rs.5/-)
b. If application qualify preliminary scrutiny, Cause notice to be displayed on the notice board
of undertaking for such intention.
c. Call upon objections from other unions, affected employers & employees to show cause “Why
such union should not be granted recognition?”
d. Upon receiving objections and holding enquiry, grant recognition if Industrial Court find
application deemed fit upon qualification. Recognition certificate is issued subsequently.

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e. If another union applies with justified more memberships, compliance to all qualifications &
conditions, Industrial Court grant such recognition.
f. There shall never be more than 1 recognized Trade Union in respect of same undertaking.
g. No recognition if application is not bona fide in the interest of employees (but to employer)
h. No recognition if applying union has instigated, aided or assisted illegal strike in preceding 6
months from the date of application.

APPLICATION FOR CANCELLATION OF TRADE UNION RECOGNITION S13

1. Industrial court, upon conducting enquiry, can issue show cause on why its recognition should
not be cancelled if they find any of the following grounds:
a. Recognized under mistake, misrepresentation or fraud
b. Memberships fallen below required minimum for last 6 calendar months
c. Union failed to observe any of the conditions in S19
d. Union not being conducted bona fide in the interest of employees (but employer)
e. Aided, instigated or assisted commencement or initiation of illegal strike

If Industrial court has issued show cause and it is satisfied with its following inquiry, it may revoke
the registration and recognize another union.

OBLIGATIONS OF RECOGNIZED TRADE UNION RECOGNITION S19

1. Offer membership and collect subscription fees (not less than 50 paise per month)
2. Executive committee regular interval meetings, in not more than 3 months
3. Record all resolutions passed by the executive committee or general body in a minute book
4. State government appointed auditor may audit the books at least once a year

RIGHTS OF RECOGNIZED TRADE UNION RECOGNITION S20

1. Collect sum payable by members to the union on the premises of work where wages are paid
to them
2. Put up notice board on the premises and affix notices regarding functioning of the union
3. For the prevention or settlement of industrial dispute:
a. Hold discussion with the member concerned on the premises (not interfering the
working of establishment),
b. Meet & discuss employee grievances with employer or his appointed representatives
c. Inspect any place where workmen are employed
d. Appear on behalf of employee in any inquiry held by employer – departmental or
domestic
e. Union alone has right to nominate its representation to works committee
f. No employee, but only recognized union represents in proceedings. Decision will be
binding on all employees

Strike is the last resort at the end of collective bargaining. Ingredients (as per Industrial Disputes Act)
of strike include:

a. There must be cessation of work

b. Such cessation must be by the body of persons employed in the industry
c. Strikers must have been acting in combination
d. There must be concerted refusal
e. They must stop work for some demands relating to employment, non-employment, terms of
employment or the work conditions of workmen

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ILLEGAL STRIKE

a. Commenced or continued without giving 14 days’ notice

b. Commenced or continued without obtaining majority vote of members in recognized union in
favour of strike
c. During pendency of conciliation proceedings or 7 days after conclusion of such proceeding
d. During court submission, before such submission is lawfully revoked

ILLEGAL LOCKOUT

Lockout Procedure in Public Utility Services:

a. Notice of lockout 6 weeks in advance

b. Lockout commence within 14 days or before mentioned expiry date in the notice
c. Not during pendency of any proceeding or reconciliation or within 7 days of its outcome

UNFAIR LABOUR PRACTICES

SCHEDULE 2: EMPLOYER ULPS

a. Interfere in rights to set up union
a. Threaten employee with dismissal if they join
b. Threaten lockout if union is created
c. Incentivise workmen for leaving union or preventing to join union
b. Dominate or interfere books of Union
a. Dominate union functioning
b. Favouring one over another union
c. Create an employer sponsored union
d. Encourage or Discourage membership of any union
e. Refuse bargain in good faith with recognized union
f. Discharge office bearers for their union activity
g. To Conduct illegal lockout

SCHEDULE 3: TRADE UNION ULPS

a. Aid, assist or instigate an illegal strike
b. Coerce employees from joining or leaving union (picketing or intimidation)
c. For a recognized union to refuse from bargaining in good faith for employees
d. Coercive activities against collective bargaining representatives
e. Stage, aid, assist, instigate any coercive actions against machines or managerial staff
f. Hold demonstrations at the residence of Management

SCHEDULE 4: GENERAL ULPS (EVERYONE TUS, WORKMEN AND EMPLOYERS)

a. Discharge or dismiss employees through
a. Victimization
b. Not in good faith, but in colourable exercise of employee rights
c. Falsely implicating employee on criminal case (false/concocted evidence)
d. For patently false reasons
e. Untrue, trumped-up allegations of absence without leave
f. No natural justice in domestic enquiry
g. Disproportionate punishment
b. Abolish regular work of employees and give such work to contractors

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c. Mala fide transfer of employee

d. Insist legally striking employee to signup Good Conduct bond
e. Show favouritism or partiality regardless of merit
f. Not or delayed conversion of temporary to permeant, deprive them from status & privileges
of permanent employees
g. Failure to implement settlement agreements
h. Indulge force or violence

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APPRENTICESHIP ACT, 1961

A person who is learning a trade from a skilled employer, having agreed to work for a fixed period of
time at low wages is called Apprentice.

Industrial Dispute Act, Workmen Compensation Act, Bonus Act, Provident Fun Act & ESI Act are NOT
Applicable on Apprentice.

Amended 2014 & 2019, 38 Sections, 1 Schedule

Designated Trade (Industries & establishments recognized by Government where training can be
pursued) & Contract of Apprenticeship

Annexure 1 (259 Trades basis education, comprehensive), Annexure 2 Engineering & Technology 163
Trades, Annexure 3 Vocational Training 137 Trades.

Paid stipend & NOT Salary (Min 5000) No incentive or bonus, 42-48 Hours working hours/week (6AM-
10PM) and regular hours after 3rd year of apprenticeship, Minimum 1 Max 2 Years generally,

Qualification/Eligibility: Minimum 14 Years, 18 Years for Hazardous Industries, Physical & Mental
fitness

Employer Qualification:

a. 4 or more workers
b. >30 Workers, engagement of apprentices is obligatory
c. Strength of workers basis average strength in preceding financial year
d. 15% strength (2019 Revision, was 10% earlier)

Apprentice contract, upon both signatures, must be submitted to local apprenticeship office within
7 days, Recognition of apprenticeship only upon approval.

APPRENTICE OBLIGATIONS

a. Learn trade, Try be become a skilled craftsman

b. Attend practical & instructional classes regularly
c. Carry out lawful orders of superiors/employers and obligations under the contract

EMPLOYER OBLIGATIONS

a. Provide training in trade in accordance with this act

b. If employer not qualified, ensure trainer availability of prescribed qualifications
c. Carry out obligations under the contract

Disputes go to Apprentice Advisor, Apprentice Council

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INTERNATIONAL LABOUR ORGANIZATION

Only tripartite specialized UN Agency bringing Government, Employers & Employees together,
Geneva HQ, 187 Member states,

COMPOSITION & STRUCTURE

2 Main decision-making bodies: 1. International Labour Conference (June each year) and 2. The
Governing body, 8 Fundamental conventions (collective bargaining, eliminate forced and compulsive
labour, abolish child labour, equalization of renumeration for men and women for same labour etc)

50% Votes from national governments, 25% votes each from Employers and Employees. Labour
standards, policies and programs

GOALS & MISSION

a. Create more and better employment opportunities

b. Respecting & legally protecting workers rights
c. Build & expand social security system
d. Promote social dialogue between Employers and Trade Unions

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KEY LONG ANSWER QS:

COLLECTIVE BARGAINING

Collective bargaining is a process in which workers, through their representatives, negotiate with
their employers over working conditions, wages, and other employment-related matters. The
Industrial Disputes Act, 1947, in India, provides a legal framework for collective bargaining. Here are
some of the merits and demerits of collective bargaining under the Industrial Disputes Act:

MERITS
1. Resolution of disputes: Collective bargaining provides a means for resolving disputes between
employers and workers without resorting to strikes and lockouts, which can be disruptive to
both parties and the economy.

2. Increased job satisfaction: Workers who are part of a collective bargaining agreement often
report higher levels of job satisfaction due to the increased security and predictability that
come with having a contract.

3. Improved communication: Collective bargaining helps to improve communication between

employers and workers, as both parties have to negotiate in good faith and listen to each
other's concerns and proposals.

4. Fairness and equity: Collective bargaining can help to ensure that workers are treated fairly
and equitably, as negotiations are based on the principle of give and take.

5. Better working conditions: Collective bargaining can result in better working conditions, as
workers can negotiate for improvements in safety, health, and other work-related issues.

DEMERITS
1. Adversarial relationship: Collective bargaining can sometimes lead to an adversarial
relationship between employers and workers, as negotiations can become confrontational
and lead to hard feelings.

2. Costly and time-consuming: Collective bargaining can be a costly and time-consuming

process, as negotiations can drag on for months or even years, and both parties may need to
hire lawyers or other professionals to represent them.

3. Unequal bargaining power: Workers may have less bargaining power than employers,
particularly if they are unorganized or lack the resources to negotiate effectively.

4. Risk of strikes and lockouts: Despite its goal of preventing strikes and lockouts, collective
bargaining can sometimes result in these disruptive actions if negotiations break down.

5. Inflexibility: Collective bargaining agreements can sometimes be inflexible and limit the
ability of employers to make changes in response to changing economic conditions or
technological advances.

In conclusion, collective bargaining under the Industrial Disputes Act can provide numerous benefits,
but it also has its drawbacks. The success of collective bargaining depends on the willingness of both
employers and workers to negotiate in good faith and reach mutually beneficial agreements.

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INDUSTRIAL DISPUTE. INDIVIDUAL WORKMAN?

The Industrial Disputes Act (IDA) in India provides provisions for both collective bargaining and
individual workman grievances. The Act defines a "workman" as any person employed in any industry
to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work, and includes
an apprentice.

The IDA makes it possible for an individual workman to approach the Labour Court or Industrial
Tribunal for relief in the event of disputes with the employer. Some provisions related to individual
workman grievances are:

Layoff compensation: If an employer lays off an individual workman, the IDA provides for
compensation to be paid to the worker during the period of the layoff.

Retrenchment compensation: If an employer retrenches an individual workman, the IDA provides for
the payment of retrenchment compensation to the worker.

Unfair dismissal: If an employer dismisses an individual workman without following due process or
without any valid reason, the IDA allows the worker to challenge the dismissal and seek
reinstatement.

Non-payment of wages: The IDA provides for individual workmen to approach the Labour Court or
Industrial Tribunal if they are not paid wages or other benefits that they are entitled to under the
law.

Grievance redressal: The IDA requires employers to establish grievance redressal mechanisms to
address individual workman grievances.

PROCEDURE OBLIGATION AND RIGHTS OF RECOGNIZED UNION UNDER THE MRTU AND PULP Act?

The Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act (MRTU
and PULP Act) provides provisions for the recognition of trade unions and the prevention of unfair
labor practices in the state of Maharashtra, India.

Procedure for recognition of a trade union under the MRTU and PULP Act:

A trade union seeking recognition must apply to the employer in writing, stating the names of the
office-bearers and the membership strength of the union.

The employer must verify the membership of the union and determine whether the union satisfies
the eligibility criteria for recognition.

If the employer is satisfied, the union will be recognized, and a notice of recognition will be issued
to the union.

If the employer rejects the application, the union can approach the Industrial Court for a
determination of the matter.

Obligations and rights of a recognized union under the MRTU and PULP Act:

Right to represent workers: A recognized union has the right to represent the workers of the
establishment in collective bargaining with the employer.

Collective bargaining: A recognized union has the obligation to engage in collective bargaining in
good faith with the employer and to work towards the resolution of any disputes that may arise.

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Protection of workers' rights: A recognized union has the obligation to protect the rights and interests
of the workers it represents and to ensure that they are not subjected to any unfair labor practices.

Payment of union dues: A recognized union has the right to collect union dues from its members and
to use these funds for the purposes of furthering the interests of the workers it represents.

Access to the workplace: A recognized union has the right to access the workplace to carry out its
activities, provided that it does not disrupt the normal functioning of the establishment.

Right to seek redressal: A recognized union has the right to approach the Industrial Court for redressal
in case of any disputes with the employer.

Overall, the MRTU and PULP Act provides a framework for the recognition of trade unions and the
prevention of unfair labor practices, which is aimed at protecting the rights and interests of workers
in the state of Maharashtra. A recognized union has the obligation to engage in collective bargaining
in good faith with the employer and to work towards the resolution of any disputes that may arise,
while also protecting the rights of the workers it represents.

DEFINE WORKMAN AND STATE WHO ARE NOT WORKMAN UNDER THE ID ACT, 1947 WITH CASE
LAWS

The Industrial Disputes Act (IDA) in India defines a "workman" as any person employed in any industry
to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work, and includes
an apprentice. This definition is important because the IDA provides certain provisions for the
protection of the rights of workmen in the event of industrial disputes between employers and
workers.

The term "state" under the IDA refers to the state government or the central government, depending
on the context. The state government has the power to make rules and regulations under the IDA for
the implementation of the Act within the state. The central government has the power to issue
notifications and orders related to the IDA for the entire country.

Overall, the definitions of "workman" and "state" under the Industrial Disputes Act are important in
the context of the Act's provisions for the protection of workers' rights and the resolution of industrial
disputes. These definitions help to establish a legal framework for the regulation of labor relations
in India.

The Industrial Disputes Act (IDA) in India defines a "workman" as any person employed in any industry
to do any manual, unskilled, skilled, technical, operational, clerical, or supervisory work, and
includes an apprentice. However, there are some categories of persons who are excluded from the
definition of "workman" under the IDA. These include:

1. Persons in managerial or administrative positions: Persons who are employed mainly in a

managerial or administrative capacity and who have the power to make decisions that affect
the whole or a substantial part of the business are not considered "workmen" under the IDA.

2. Persons in supervisory positions: Persons who are employed mainly in a supervisory capacity
and who have the power to give directions and control the work of other employees are not
considered "workmen" under the IDA.

3. Persons who are primarily engaged in a supervisory role and drawing wages above the
specified limit: Persons who are primarily engaged in a supervisory capacity and who are
drawing wages above a specified limit (currently Rs. 25,000 per month) are not considered
"workmen" under the IDA.

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4. Persons who are engaged in a predominantly managerial or administrative role and drawing
wages above the specified limit: Persons who are engaged in a predominantly managerial or
administrative capacity and who are drawing wages above a specified limit (currently Rs.
25,000 per month) are not considered "workmen" under the IDA.

In addition to the above categories of persons, the IDA also excludes persons who work in a purely
honorary capacity, as well as those who are members of the armed forces.

There have been several court cases that have further clarified the definition of "workman" under
the IDA. For example, the Supreme Court of India has held that a person who is engaged in a
professional or technical capacity, such as a doctor or a lawyer, cannot be considered a "workman"
under the IDA, unless their work is primarily manual or involves operational activities. Similarly,
persons who are engaged in a creative or intellectual pursuit, such as writers or artists, are also not
considered "workmen" under the IDA, unless their work involves manual or operational activities.

There have been several important cases in India that have helped to define and clarify the meaning
of "workman" under the Industrial Disputes Act (IDA). Some of the most significant cases are:

1. Bangalore Water Supply and Sewage Board v. A. Rajappa (1978): In this case, the Supreme
Court of India held that a person who is engaged in primarily supervisory work and is not
engaged in any manual, skilled or unskilled work, is not a "workman" under the IDA.

2. Management of U.P. State Road Transport Corporation, Lucknow v. Raja Ram (1985): In this
case, the Supreme Court held that a driver and conductor employed by the State Road
Transport Corporation were "workmen" under the IDA, as their work involved manual labor.

3. Bangalore Metropolitan Transport Corporation v. B.G. Nagaraj (2012): In this case, the
Supreme Court held that an employee who is primarily engaged in supervisory work, but also
performs manual work, is a "workman" under the IDA.

4. Bharat Heavy Electricals Limited v. K. Gopalakrishnan (2019): In this case, the Supreme Court
held that an engineer who is engaged in technical and operational work, but does not perform
manual labor, is a "workman" under the IDA.

These cases demonstrate that the definition of "workman" under the IDA is not always clear-cut and
may depend on the specific facts and circumstances of each case. However, in general, a person who
is engaged in manual, unskilled, skilled, technical, operational, clerical, or supervisory work is likely
to be considered a "workman" under the IDA, provided that their work is not predominantly
managerial or administrative in nature.

VARIOUS TYPES OF SETTLEMENTS UNDER ID ACT

The Industrial Disputes Act (IDA) in India provides for three types of settlements to resolve industrial
disputes, namely:

1. Bilateral settlement: This type of settlement is arrived at through direct negotiations

between the employer and the workmen, without the intervention of any third party. The
settlement may be in the form of a written agreement or a memorandum of understanding
(MoU), and may cover issues such as wages, working conditions, bonus, etc.

2. Collective settlement: This type of settlement is arrived at through negotiations between the
employer and a registered trade union, which represents the workmen. The settlement is
binding on all the workmen who are members of the union, and may cover issues such as
wages, working conditions, bonus, etc. Collective settlements are typically reached through
the process of collective bargaining.

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3. Award: This type of settlement is arrived at through the intervention of a third party, such
as a conciliation officer, a board of conciliation, or a court of inquiry. The third party may
be appointed by the government or may be agreed upon by the parties to the dispute. The
settlement is in the form of an award or an order, which is binding on both the employer and
the workmen, and may cover issues such as wages, working conditions, bonus, etc.

It is important to note that settlements arrived at through bilateral or collective negotiations are not
binding on the parties, and may be challenged or modified at a later stage. On the other hand,
settlements arrived at through the intervention of a third party are binding on the parties, and may
be enforced through legal action.

RECOGNITION OF TRADE UNIONS AND CANCELLATION OF A RECOGNIZED TRADE UNIONS

The Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act (MRTU &
PULP Act) in India provides for provisions related to the recognition of trade unions and the
cancellation of recognition of a trade union.

Recognition of Trade Unions: Under the MRTU & PULP Act, a trade union can be recognized as the
sole bargaining agent of the workmen if it fulfils the following conditions:

1. The trade union must be a registered trade union under the Trade Unions Act, 1926.

2. The trade union must have membership of at least 30% of the workmen in the concerned
industry or establishment.

3. The trade union must have been functioning in the industry or establishment for at least one
year.

Once a trade union is recognized as the sole bargaining agent of the workmen, it is entitled to
represent the workmen in collective bargaining with the employer and to enter into agreements on
their behalf.

Cancellation of a recognized Trade Union: The recognition of a trade union can be cancelled by the
appropriate government authority under the following circumstances:

1. The trade union ceases to fulfil the conditions for recognition.

2. The trade union fails to represent the workmen in the concerned industry or establishment
for a continuous period of six months.

3. The trade union indulges in any unfair labour practices or other illegal activities.

4. The workmen, through a secret ballot, pass a resolution to cancel the recognition of the
trade union.

Before cancelling the recognition of a trade union, the appropriate government authority is required
to give notice to the trade union and to provide an opportunity for it to make representations in its
defence. If the recognition of a trade union is cancelled, it loses its status as the sole bargaining
agent of the workmen, and another trade union may be recognized in its place.

It is important to note that the MRTU & PULP Act applies only to establishments in the state of
Maharashtra in India, and that other states may have their own laws and provisions related to the
recognition of trade unions.

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UNFAIR LABOUR PRACTICES UNDER THE MRTU & PULP ACT

The Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act (MRTU &
PULP Act) in India provides for provisions related to unfair labour practices (ULPs) committed by the
employer or the trade union. The Act identifies certain practices as ULPs and provides for penalties
for such practices.

The following are the ULPs under the MRTU & PULP Act:

Interference with the formation or administration of trade unions: This includes any attempt by the
employer to discourage or prevent the formation or administration of a trade union, or to influence
the functioning of a trade union.

Discrimination: This includes discrimination in recruitment, promotions, transfer, or dismissal of

workmen on the basis of their trade union membership or activities.

Discharge or dismissal of workmen: This includes discharging or dismissing workmen for their trade
union membership or activities, or for raising disputes or grievances.

Victimisation: This includes victimisation of workmen by the employer or the trade union for their
trade union membership or activities, or for raising disputes or grievances.

Coercion: This includes any attempt by the employer or the trade union to force workmen to join or
refrain from joining a particular trade union.

Refusal to bargain: This includes refusal by the employer to bargain collectively with the trade union,
or by the trade union to bargain collectively with the employer.

Adoption of illegal or unfair labour practices: This includes the adoption of any illegal or unfair labour
practices by the employer or the trade union, which are likely to affect the employment or working
conditions of the workmen.

If an employer or trade union is found to have committed any of the ULPs under the MRTU & PULP
Act, penalties such as fines, imprisonment, or cancellation of registration may be imposed. The Act
also provides for the establishment of a Labor Court to adjudicate disputes related to ULPs.

AUTHORITIES UNDER ID ACT

The Industrial Disputes Act, 1947 in India provides for various authorities to adjudicate and settle
industrial disputes between employers and workmen. The following are the various authorities under
the Act:

Conciliation Officer

A Conciliation Officer is appointed by the appropriate government to promote settlement of disputes

between the employer and workmen. The Conciliation Officer can intervene in the dispute and try
to resolve it amicably by conciliation. If the dispute is not settled, the Conciliation Officer submits a
report to the appropriate government, and the government may refer the dispute for adjudication
to the appropriate authority.

Board of Conciliation

A Board of Conciliation is appointed by the appropriate government to promote settlement of

disputes. The Board consists of a chairman and two or four members, representing the employer and
workmen. The Board can intervene in the dispute and try to resolve it amicably by conciliation. If

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the dispute is not settled, the Board submits a report to the appropriate government, and the
government may refer the dispute for adjudication to the appropriate authority.

Court of Inquiry

A Court of Inquiry is appointed by the appropriate government to inquire into any matter related to
an industrial dispute. The Court consists of a Chairman and two or four members, representing the
employer and workmen. The Court has the power to summon witnesses and to collect evidence, and
it submits a report to the appropriate government.

Labour Court

A Labour Court is appointed by the appropriate government to adjudicate and settle industrial
disputes. The Labour Court consists of a single judge who is a person qualified to be a judge of a High
Court. The Labour Court has the power to decide on any matter related to an industrial dispute,
including the legality of a strike or lockout, and to make an award.

Industrial Tribunal

An Industrial Tribunal is appointed by the appropriate government to adjudicate and settle industrial
disputes. The Industrial Tribunal consists of a single judge who is a person qualified to be a judge of
a High Court. The Industrial Tribunal has the power to decide on any matter related to an industrial
dispute, including the legality of a strike or lockout, and to make an award.

National Tribunal

A National Tribunal is appointed by the central government to adjudicate and settle industrial
disputes of national importance or disputes which are of such a nature that industrial establishments
situated in more than one state are likely to be affected. The National Tribunal consists of a single
judge who is a person qualified to be a judge of a High Court. The National Tribunal has the power
to decide on any matter related to an industrial dispute, including the legality of a strike or lockout,
and to make an award.

The Industrial Disputes Act also provides for the establishment of Grievance Redressal Committees in
industrial establishments to settle individual grievances of workmen. These committees consist of an
equal number of representatives of the employer and workmen, and a neutral person as the
Chairman.

It is important to note that the powers and functions of each authority under the Industrial Disputes
Act may vary depending on the nature and complexity of the dispute.

INDUSTRIAL DISPUTE WITH CASE LAWS

An industrial dispute can be defined as a disagreement between employers and workers regarding
any aspect of employment, such as wages, working conditions, or employment terms. It may also
arise due to an alleged violation of employment laws, company policies, or collective bargaining
agreements.

Here are some cases that illustrate industrial disputes:

Management of Diamond Cable Ltd. v. Its Workmen (1952): In this case, the management of
Diamond Cable Ltd. reduced the wages of its workmen without giving any prior notice. The workmen
protested the unilateral decision, and the dispute was referred to the Industrial Tribunal. The
Tribunal held that the management had acted unfairly and awarded compensation to the workmen.

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Bombay Union of Journalists v. The Hindu (1961): In this case, the Hindu newspaper management
terminated the services of its employees without following the procedure specified in the Industrial
Disputes Act. The Bombay Union of Journalists raised a dispute and referred it to the Labour Court,
which ruled in favor of the employees and ordered their reinstatement with full back wages.

Air India v. Nargesh Meerza (1981): In this case, the Air India management imposed a mandatory
retirement age of 58 years for air hostesses. Nargesh Meerza, an air hostess, challenged the decision
and filed a complaint under the Industrial Disputes Act. The Supreme Court held that the retirement
age of 58 years for air hostesses was discriminatory and ordered Air India to reinstate Nargesh Meerza
with full back wages.

Bharat Forge Co. Ltd. v. Uttam Manohar Nakate (2012): In this case, the management of Bharat
Forge Co. Ltd. terminated the services of an employee, Uttam Manohar Nakate, alleging that he had
engaged in misconduct. The employee denied the allegations and raised a dispute under the Industrial
Disputes Act. The Industrial Tribunal ruled in favor of the employee, holding that the termination
was unjustified and ordered the employer to reinstate the employee with full back wages.

These cases demonstrate the importance of adhering to employment laws and policies while dealing
with employees. Employers must follow the procedures and guidelines laid down in the Industrial
Disputes Act while making any decisions that affect their employees. Failure to do so can result in
costly legal battles and damage to the employer's reputation.

WORKMEN & NOT WORKMEN

The Industrial Disputes Act, 1947 defines a workman as any person (including an apprentice)
employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical, or
supervisory work for hire or reward. However, certain categories of persons are excluded from the
definition of a workman under the Act, such as:

 Persons employed in a managerial or administrative capacity.

 Persons employed in a supervisory capacity, who have been given the power to employ,
dismiss, or promote workers or to recommend such actions.
 Persons employed in a confidential capacity, such as those handling confidential information.
 Persons employed in a primarily supervisory role who are also performing some manual or
clerical work.
 Persons employed in a primarily supervisory role but who have not been given the power to
employ, dismiss, or promote workers or to recommend such actions.

It is important to note that the Industrial Disputes Act does not provide an exhaustive list of who is
and who is not a workman. The determination of whether a person is a workman or not depends on
the facts and circumstances of each case. The definition of a workman under the Act is intended to
be broad and inclusive, and it is the responsibility of the courts and tribunals to interpret it in a
manner that promotes the objectives of the Act.

TERMINATION OF WORKMEN UNDER ID ACT

The termination of workmen under the Industrial Disputes Act, 1947 is governed by the provisions of
Section 2A of the Act. According to this section, a workman who has been in continuous service of an
employer for not less than one year can only be terminated for a valid reason and after following the
procedure set out in the Act.

The Act provides for two modes of termination - retrenchment and dismissal.

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Retrenchment: Retrenchment is the termination of a workman's employment by an employer on

account of redundancy, i.e., the surplus of labour or where the employer has decided to discontinue
the business. The employer must give a valid notice to the workman before the termination of
employment, and the workman is entitled to compensation equivalent to fifteen days' average pay
for every completed year of service.

Dismissal: Dismissal is the termination of a workman's employment by an employer on account of

misconduct, i.e., any act of indiscipline, insubordination, or violation of the employer's rules and
regulations. The employer must conduct an enquiry into the alleged misconduct, provide the
workman with an opportunity to be heard, and follow the principles of natural justice before
terminating the workman's employment.

In both cases, the workman has the right to raise a dispute regarding the termination of employment
under the Industrial Disputes Act, and the dispute may be referred to a conciliation officer, a board
of conciliation, or a labor court for resolution. It is important to note that the provisions of the
Industrial Disputes Act regarding termination apply only to workmen who have been in continuous
service for not less than one year. For workmen who do not meet this requirement, the employer
may terminate their employment without any compensation or notice.

Under the Industrial Disputes Act, 1947, termination of workmen is allowed only in certain
circumstances and subject to certain conditions. The essentials of workmen termination under the
Industrial Disputes Act are as follows:

1. Valid Reason: Termination of a workman must be for a valid reason, which can be either due
to redundancy or misconduct.
2. Notice: The employer must give a valid notice to the workman before the termination of
employment. The notice period varies depending on the length of service of the workman
and ranges from one month to three months.
3. Compensation: The workman is entitled to compensation equivalent to fifteen days' average
pay for every completed year of service in the case of retrenchment due to redundancy.
4. Enquiry: In case of termination due to misconduct, the employer must conduct an enquiry
into the alleged misconduct, provide the workman with an opportunity to be heard, and
follow the principles of natural justice before terminating the workman's employment.
5. Compliance: The employer must comply with the provisions of the Industrial Disputes Act
regarding termination, which include the issuance of a notice, payment of compensation,
and following the procedure for termination.
6. Dispute Resolution: If a workman disputes the termination, they can raise the dispute under
the Industrial Disputes Act, and the dispute may be referred to a conciliation officer, a board
of conciliation, or a labor court for resolution.

It is important to note that the provisions of the Industrial Disputes Act regarding termination apply
only to workmen who have been in continuous service for not less than one year. For workmen who
do not meet this requirement, the employer may terminate their employment without any
compensation or notice.

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KEY CASE LAWS – INDUSTRIAL DISPUTES ACT, 1947

The Industrial Disputes Act, 1947 is a significant legislation in India that regulates the resolution of
industrial disputes. Some of the key case laws that have interpreted the provisions of the Industrial
Disputes Act are:

1. Bangalore Water Supply and Sewerage Board v. A. Rajappa (1978): This case held that a
workman can challenge the legality of his termination before the labour court, even if he has
accepted the compensation offered to him by the employer.

2. Mumbai Kamgar Sabha v. Abdulbhai (1997): This case held that the definition of workman
under the Industrial Disputes Act is broad enough to include even temporary or casual
workers.

3. Management of Safdarjung Hospital v. Kuldip Singh (1970): This case established the
principle of "natural justice" in cases of disciplinary action against an employee. It held that
the employer must provide an opportunity to the employee to present his case before taking
disciplinary action.

4. Punjab National Bank v. All India Punjab National Bank Employees Federation (1960): This
case held that an industrial dispute can arise even if the employer has not directly violated
the terms of the employment contract, but has violated an implied term of the contract or a
statutory provision.

5. Central Bank of India v. P.S. Rajagopalan (1963): This case held that the burden of proof in
an industrial dispute lies with the employer to show that the termination of employment was
for valid reasons.

6. Indian Hume Pipe Co. Ltd. v. Its Workmen (1960): This case held that a lockout is justified
only when there is an actual or apprehended breakdown of the employer-employee
relationship.

7. Bridge and Roof Co. (India) Ltd. v. Union of India (1963): This case held that an employer
can declare a layoff only if it is due to a shortage of raw materials, power, or any other
unavoidable reason beyond the employer's control.

These are some of the key case laws that have helped in the interpretation and implementation of
the Industrial Disputes Act.

KEY CASE LAWS - MUTP & PULP ACT

The MRTU and PULP Act refers to the Maharashtra Recognition of Trade Unions and Prevention of
Unfair Labour Practices Act, 1971. It is a state-level legislation in Maharashtra that provides for the
recognition of trade unions and prohibits unfair labor practices. Some of the key case laws that have
interpreted the provisions of the MRTU and PULP Act are:

1. State of Maharashtra v. National Rayon Corporation Ltd. (1984): This case held that the
MRTU and PULP Act applies to both organized and unorganized sectors in Maharashtra.

2. Tata Engineering and Locomotive Co. Ltd. v. P.B. Kulkarni (1978): This case held that the
employer cannot unilaterally change the terms and conditions of employment without the
consent of the employees or their representatives recognized under the MRTU and PULP Act.

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3. Maharashtra State Road Transport Corporation v. B.R. Patil (1996): This case held that the
dispute resolution mechanism under the MRTU and PULP Act is distinct from the Industrial
Disputes Act, and the labor court constituted under the MRTU and PULP Act has the power to
decide on unfair labor practices.

4. Premier Automobiles Ltd. v. Kamlakar Shantaram Wadke (1975): This case held that if an
employer has engaged in an unfair labor practice, the labor court can direct the employer to
reinstate the employee with full back wages.

5. Sunil Kumar Mitra v. State of Maharashtra (1993): This case held that the MRTU and PULP
Act provides for an alternate mechanism for dispute resolution and that the jurisdiction of
civil courts is barred under the Act.

These are some of the key case laws that have helped in the interpretation and implementation of
the MRTU and PULP Act in Maharashtra.

KEY CASE LAWS - FACTORIES ACT, 1948

The Factories Act, 1948 is a central legislation in India that regulates the safety, health, and welfare
of workers in factories. Some of the key case laws that have interpreted the provisions of the
Factories Act are:

1. Municipal Corporation of Delhi v. Kanta Goyal (1991): This case held that the provisions of
the Factories Act apply to a factory even if it is located in a residential area.

2. The Management of Safdarjung Hospital v. Kuldip Singh (1970): This case established the
principle of "natural justice" in cases of disciplinary action against an employee under the
Factories Act. It held that the employer must provide an opportunity to the employee to
present his case before taking disciplinary action.

3. Mukesh Textile Mills Mazdoor Union v. Bharat Rayon Corporation (1995): This case held
that the Factories Act imposes a statutory obligation on the employer to provide a safe
working environment for the employees.

4. Bihar Mica Syndicate v. State of Bihar (1963): This case held that the employer is
responsible for the safety of the workers and must take adequate measures to prevent
accidents and occupational hazards.

5. State of Madhya Pradesh v. Kaluram (1967): This case held that the onus is on the employer
to prove that the injury or death of a worker was not caused by the negligence or violation
of the provisions of the Factories Act.

6. H.P. State Electricity Board v. Suresh Kumar (2010): This case held that an occupier or
manager of a factory can be held liable for violation of the provisions of the Factories Act.

These are some of the key case laws that have helped in the interpretation and implementation of
the Factories Act in India.

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DISCLAIMER

The information contained in this document is provided for informational purposes only and should
not be relied upon as legal, business, or any other advice. The author makes no representations or
warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability
or availability with respect to the document or the information, acts, statutes, or related information
outcome contained in the document for any purpose. Any reliance you place on such information is
therefore strictly at your own risk.

In no event will the author be liable for any loss or damage including without limitation, indirect or
consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits
arising out of, or in connection with, the use of this document.

The author (Hemant Patil) reserves the right to modify, add, or delete any information in this
document at any time without prior notice.

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