Noida Institute of Engineering and Technology, Greater Noida

Introduction to Employee Relations and Labour

Laws

Unit-I

Employee Relations and Labour laws

Dr. Smita Singh
AMBA HR0312
MBA
MBA Department
III Sem

Dr.Smita Singh Employee Relations and Labour Laws AMBAHR0312 Unit I

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 Index/Content
S. No. Index
1.
Name of Subject with code, Course and Subject Teacher

2.
Brief Introduction of Faculty member with Photograph

3. Evaluation Scheme
4. Syllabus
5. Branch wise Application
6. Course Objective(s)
7. Course Outcome(s)
8. Program Outcomes (POs)
9. COs and POs Mapping

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 Index/Content
S. No. Index
10. Program Specific Outcomes (PSOs)
11. Cos and PSOs Mapping
12. Program Educational Objectives (PEOs)
13. Result Analysis
14. End Semester Question paper Templates
15. Prequisite/Recap
16. Brief Indtroduction about the Subject with Videos
17. Unit Contents
18. Unit Objectives
19. Topic Objectives/Topic Outcome

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 Index/Content
S. No. Index
20. Lecture related to topic
21. Daily Quiz
22. Weekly Assignment
23. Topic Links
24. MCQs
25. Glossary Questions
26. Old question papers
27. Expected Questions
28. Recap of unit

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 Brief Introduction of the Faculty Member

• Faculty Name: Dr.Smita Singh

• Designation: Associate Professor

• Department: MBA

• Email ID: [email protected]

• Qualification: Ph.D., MBA(HR), M.Com,B.Com(Hons)

• Specialization: HR and IR

• Research Area: Virtual Teams, Employee Engagement, HR Practices

• Teaching Area: HR

• Total Experience: 13
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 Evaluation Scheme

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and Labour Laws AMBAHR0312 Unit I
 Subject Syllabus

Unit –I Employee Relations Management (ERM) & Industrial Relation:

Introduction and Importance of Employee Relations Management
Aspects of Industrial Relations, Emerging challenges of IR in India,
Linking Industrial Relations with economic growth of a country,
Negotiations and Counselling.

• Trade Unionism: Development of trade unionism, functions, type and

structure, problems & suggestive remedial measures of trade unions,
The Trade Unions Act 1926: Objective, Recognition and registration,
Industrial Democracy & Participative Management. Case Studies

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 Subject Syllabus

Unit –II Collective Bargaining: Significance, types & procedure of

Collective bargaining

• Discipline: The Industrial Employment (Standing Orders) Act 1961,

Misconduct, Disciplinary Action, Types of Punishments, Code of
Discipline, Domestic Enquiry, Grievance Handling in IR: Grievance
Settlement Procedure, Industrial Disputes, Preventive & Settlement
Machinery in India.

• Employee Participation and Empowerment: Objectives, Employee

Participation, Advantages of Employee Participation, Employee
Participation in India, Methods of Participation, Employee Empowerment.

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 Subject Syllabus

• Unit –III

• The Factories Act, 1948 & The shop & Establishment Act, 1948; The
Payment of Wages Act, 1923; The Workmen’s compensation Act,
1972; The Industrial Disputes Act, 1947.

• Conflict management: Definition, Levels, Sources, Stages, Cause and

Effects of conflicts, Reactions and Responses towards conflict,
Conflict Resolution Process.

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 Subject Syllabus

Unit –IV

• The Factories Act, 1948 & The shop & Establishment Act, 1948; The
Payment of Wages Act, 1923; The Workmen’s compensation Act,
1972; The Industrial Disputes Act, 1947.

• Conflict management: Definition, Levels, Sources, Stages, Cause and

Effects of conflicts, Reactions and Responses towards conflict,
Conflict Resolution Process.

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 Subject Syllabus

Unit –V

• The payment of Bonus Act, 1965; The payment of Gratuity Act, 1972;
The Maternity Benefit Act, 1961; Employee’s Provident fund &
Miscellaneous Provisions Act, 1952.

• The Industrial Relations Code Bill, 2020; Code on Social Security

Bill, 2020 and the Occupational Safety, Health and Working
Conditions Code Bill, 2020.

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 Branch Wise Applications

Industrial relations managers and specialists prepare and distribute

information for management to be used during the collective bargaining
process.
• Industrial relations managers are able to interpret and administer
employees’ contracts regarding issues such as:
• Economics
• Healthcare benefits,
• Salaries or wages
• Safety codes
• Union practices
• Pensions
• Grievances

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 Course Objective

1. To Provide conceptual framework of Industrial Relation

2. To make students aware with the Indian Labour Legislation
3. To make students aware with the basic requirements and mandate
of Labour Legislations.
4. To help the students to understand the existing framework of
Industrial Relation and Labour Legislation.

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 Course Outcome
Course outcome: At the end of course, the student will be able
AtKnowledge
the end of
ofIndustrial
this course students
Relation will able to :
framework
(CO1) K2(Understand)
Competency to understand the importance
of Employee Relation within the perspective K4(Analyze)
of Industrial Relation. (CO2)

Knowledge about relevant Laws of HR

management . (CO3) K3(Apply)

Competency to interpreted and implement the

Labour Laws within organization. (CO4) K5 (Evaluate)

Competency to use Collective Bargaining and

Grievance redressal Mechanism. (CO5) K3(Apply)

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 Program Outcomes

PO1.Apply knowledge of management theories and practices to solve

business problems.
PO2.Foster Analytical and critical thinking abilities for data-based
decision making.
PO3. Ability to develop Value based Leadership ability.
PO4.Ability to understand, analyze and communicate global,
economic, legal, and ethical aspects of business.
PO5.Ability to lead themselves and others in the achievement of
organizational goals, contributing effectively to a team environment

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and Labour Laws AMBAHR0312 Unit I
 CO-PO Mapping
PO/CO PO1 PO2 PO3 PO4 PO5
CO1 3 1 2 2 1
CO2 3 2 2 2 2

CO3 3 2 2 2 1

CO4 2 3 1 2 2
CO5 2 2 1 2 3

AVERAGE 2.6 2 1.6 2 1.8

**3= High *2= Medium *1=Low

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 Program Educational Objectives

 PEO1- Graduates of the management program will have conceptual

knowledge to adapt to the rapidly changing environment, learn new
skills and demonstrate application of management principles in
professional work setting.
 PEO 2- Graduates will apply appropriate tools for decision making
required for solving complex managerial problems in the local or
global context.
 PEO 3-Graduates of the Management program will exhibit integrity,
social responsibility, and teamwork.
 PEO 4-Graduates will exhibit ethics, communication skills,
leadership qualities and entrepreneurial mindset using creativity and
innovation.

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and Labour Laws AMBAHR0312 Unit I
 Result Analysis(Batch 2020-22)

Subject Total No of
Name & No. Of No of
No of student
Code Stude Pass student
No of students No of
nts % students 65>75 90 & students Average
75>90
40>65 (%) (%) (%)
Above Backlog Marks
(%)

ER &LL 21 95 16 1 3 0 1 103
AMBAH
R0312

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 End Semester Question Paper Template

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and Labour Laws AMBAHR0312 Unit I
 End Semester Question Paper Template

Dr.Smita Singh Employee Relations

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and Labour Laws AMBAHR0312 Unit I
 End Semester Question Paper Template

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and Labour Laws AMBAHR0312 Unit I
 Prerequisite

1.Knowledge of Human Resource Management.

2. The Scope of HRM.

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 Brief Introduction about the Subject

This subject aims to throw light on all the dimensions of industrial

relations and labour laws. It is organised into two parts: first part
focusing on the history and theory relating to the industrial relations
and the second part providing detailed on specific provisions of labour
laws being enforced in India. Labor and employment law concerns the
laws and regulations that govern relationships between employees and
employers. Labor law governs the relationships between groups of
employees, such as labor unions and their employers.

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 Subject Videos

https://www.youtube.com/watch?v=5_btNIdvEfo
https://www.youtube.com/watch?v=Lx83q3mW0oo
https://www.youtube.com/watch?v=uXuj-Kj6_wE

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 Unit Content

1. Introduction and Importance of Employee Relations Management,

Aspects of Industrial Relations, Emerging challenges of IR in India.

2. Negotiation and Counselling

3. Trade Unionism

4. Trade Unions Act 1926 – Introduction

5. Industrial Democracy & Participative Management

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 Objective of the unit

 To understand the importance of Industrial relations.

 To know the aspects of Industrial relations.
 Understand about negotiations and counselling.
 Knowledge about Trade unions and Industrial democracy.

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 Noida Institute of Engineering and Technology, Greater Noida

Introduction and Importance of Employee

Relations Management

Unit I Topic 1

Employee Relations and Labour

Laws

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 Topic Objective
Topic Topic Objective
No.
1 To study the concept of Employee Relations and Labour laws

2 To study the Scope, Importance and Causes or Challenges of

Industrial relations.

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 Topic Mapping
S.No. Topic Course
Outcome
1 Meaning of Employee Relations Management CO1
(ERM) & Industrial Relation
2 Scope and challenges of Industrial Relations CO1

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 Introduction to Industrial Relations

• Industrial relation means the relationship between employers and

employees in course of employment in industrial organisations.
• Industrial relation is used to denote the collective relationships.
• IR is used to cover such aspects of industrial life as trade
unionism, collective bargaining, workers participation in
management , discipline and industrial disputes.
• Under the IR participative management, employee development,
employee remuneration, employee safety and health.

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 Definition of Employee Relations/Industrial
Relations

• According to ‘Dunlop’ “ I.R.

may be defined as the complex
of inter-relations among
workers, managers &
government.
• According to ‘Dale Yoder’, “
IR is a designation of a whole
field of relationship that exists
because of the necessary
collaboration of men and
women in the employment
processes of industry”.

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 Concept of Industrial Relations

 IR can be defined as a coin having two faces: co- operation and

conflict.
 This relationship undergoes starting with co-operation soon changes
into conflict and after its resolution again changes into co- operation.
 This changing process becomes a continuous feature in industrial
system and makes IR concept as dynamic and evolving one.

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 Industrial Relations Perspectives/Why are
they important????

Workers
Employers
Perspectiv Perspective
e

Societal Government
Perspective Perspective

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 Features of Industrial Relations

These relations cannot exist

Outcomes of employment
without the two parties
relationships in an
namely employers and
industrial enterprise.
employees.

The government intervenes

Creates rules and to shape the industrial
regulations to maintain relations through laws,
harmonious relations. rules, agreements, terms,
charters etc.
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 Parties to Industrial Relations

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 Objectives of Industrial Relations

To maintain industrial democracy based on participation of

labour in the management and gains of industry.

To raise productivity by reducing tendency of high labour

turnover and absenteeism.

To ensure workers’ participation in management of the company

by giving them a fair say in decision-making and framing policies.

To establish a proper channel of communication.

To increase the morale and discipline of the employees.

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 Scope of Industrial Relations
 Labour relations, i.e. relations between labour union and management.
Employer- Employee relations,i.e. relations between management and
employees.
 The role of various parties in maintaining industrial relations.
 The mechanisms of handling conflicts between any party(Employer-
Employee, Employee-Employee) in case conflicts arises.

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 Importance of Industrial Relations

Conductive environment for

new programs.

Reduces industrial disputes.

Reduce wastages.

High morale

Reduced wastage

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 Causes of Poor Industrial Relations

Economic Organisational
causes causes

Psychological
Social causes
causes

Political
causes
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 Aspects of Industrial Relations.

The main aspects of industrial relations can be identified as follows:

1. Promotion and development of healthy labour — management
relations.
2. Maintenance of industrial peace and avoidance of industrial strife.
3. Development and growth of industrial democracy.
4. Group relations, i.e., relations between various groups of workmen.
5. Promotions and development of healthy labour-managements relations.
6. Prevention of industrial disputes and maintenance of industrial peace
and harmony.

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 Stages of IR

COTTAGE
PRIMITIVE AGRARIAN HANDICRAFT FACTORY
INDUSTRY
STAGE STAGE STAGE STAGE
STAGE

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 Approaches to Industrial Relations

The unitary The Marxist Systems Giri

approach approach Approach Approach

The
Sociological Gandhian
pluralistic
Approach Approach
approach

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 Approaches to Industrial Relations

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 Recap

• In this topic, We learned about Industrial Relations.

• We also learned about Scope and Causes of Poor Industrial
Relations.

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 Daily Quiz
 Industrial relations cover the following area(s)
a) Collective bargaining
b) Labour legislation
c) Industrial relations training
d) All of the above

 Which of the following is not an approach to industrial relations?

a) Unitary approach
b) Pluralistic approach
c) Marxist approach
d) Employee’s approach

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 Daily Quiz

 Elton Mayo and his team believed in the positive nature of

a) Managers
b) Management
c) Employees
d) All of the above
 Which of the following department has major interest in harmonious
industrial relations?
a) HR b) Production c) Finance d) Marketing

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 Noida Institute of Engineering and Technology, Greater Noida

Negotiation and Counselling

Unit I Topic -2

Employee Relations and Labour

Laws

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 Prerequisite/Recap

• Basic knowledge of HRM and Industrial Relations.

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 Topic Objective
Topic Topic Objective
No.
1 To study Negotiations and Counselling

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 Topic Mapping
S.No. Topic Course
Outcome
1 Negotiations and Counselling CO1

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 Negotiation

• Negotiation involves
discussion to make agreements
where the parties involved
have some difference of
interest or simply negotiation
of how a task or project will be
carried out.

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 Main features of Negotiation

2 or more parties

Something of value or interest to the parties

Desire to engage in interaction

Atleast some desire to accommodate

Authority to honour the agreement or settlement

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 Negotiation Goals & Outcomes
• Substance goals. – Outcomes that relate to content issues.
• Relationship goals . – Outcomes that relate to how well people
involved in the negotiations and any constituencies they represent are
able to work with one another once the process is concluded.
• Effective Negotiation -Occurs when substance issues are resolved and
working relationships are maintained or improved.

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 Criteria for an effective negotiation.

Quality Harmony Efficiency

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 Criteria for an effective negotiation.

Substance Goals

Relationship goals

Effective Communication

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 P’s OF NEGOTIATION

Purpose Plan

Pace Personalities

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 Factors affecting negotiation

SUBJECTIVE
TIME PLACE FACTORS
ATTITUDE

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 Counselling

• Providing help and support to the

employees to face and sail through the
difficult times in life.
• Guiding, consoling, advising and
sharing and helping to resolve their
problems whenever the need arises.
• The organisation can either take the
help of experienced employees or
expert, professional counsellor to take
up the counselling activities.
• Increasing complexities in the lives of
the employees need to address various
aspects.
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 Need of counselling

• A need for counselling exists wherever there is a problem faced by

the employees.

Stress
Burnout

Disciplinary
Action Absenteeism

Poor Quality
Mid Career
Illness

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 Benefits of effective counselling

Helps employees to tackle with the

problems effectively.

Employees are able to sort their problems.

Helps in decision making.

A new way to look at the perspective.

May reduce the number of absenteeism of

employee.
It may prevent termination from employer
or resignation from employee.
It reduces the cost of hiring new employee
and training new staff.
Possibility of smooth coordination
between employer and employee.

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 Functions of Counselling

Advice

Reassurance

Communication

Release of Emotional
Tension

Clarified Thinking

Reorientation

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 Skills and techniques of counselling

Objectivity Listening

Empathy Congruence

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 Recap

• In this topic, We learned about challenges of IR.

• We also learned about Negotiation ,
Counselling ,Benefits ,Functions and P’s of Negotiation.

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 Daily Quiz
 What is Negotiation?
a) Negotiation can be defined as a basic means of getting what you want from
others.
b) It is back-and-forth communication designed to reach an agreement
c) Negotiation is a method by which people settle differences. It is a process by
which compromise or agreement is reached while avoiding argument and
dispute.
d) All of the above
 means to see the problem and understand it the point of view of the other
person.
a) Empathy
b) Compassion
c) Listening
d) None

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 Daily Quiz
 What are the benefits of counselling?
 What are the skills and techniques of counselling?
 _______guiding, consoling, advising and sharing and helping to resolve
their problems whenever the need arises.

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 Noida Institute of Engineering and Technology, Greater Noida

Trade Unionism

Unit I Topic -3

Employee Relations and Labour

Laws

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 Prerequisite

• Basic knowledge of HRM/ Industrial Relations

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 Topic Objective
Topic Topic Objective
No.
1 To study the meaning and development, functions ,type and
structure of Trade Unions
2 To study the Problems and Suggestions regarding Trade Unions

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 Topic Mapping
S.No. Topic Course
Outcome
1 Meaning and development, functions ,type and CO1
structure of Trade Unions
2 Problems and Suggestions regarding Trade Unions CO1

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 Meaning of Trade Unions
 A trade union is a formal association of workers, acting collectively,
who seek to protect and promote their mutual interests through
collective action.
 A trade union means an association of workers in one or more
occupation— an association carried on mainly, for the purpose of
protecting and advancing the members’ economic interests in
connection with their daily work’.

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 History of Trade Unions

• Trade Union movement began in India after the end of First World
War.
• After a decade following the end of First World War the pressing
need for the coordination of the activities of the individual unions
was recognised.
• Thus, the All India Trade Union Congress was formed in 1920 on a
National Basis, the Central Labour Board,Bombay and the Bengal
Trades Union Federation was formed in 1922.
• The All India Railwaymen's Federation was formed in the same year
and this was followed by the creation of both Provincial and Central
federations of unions of postal and telegraph employees.
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 Structure of Trade Unions

Craft Industrial
Union union

General
Federation
Union

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 Structure of Trade Unions

• Craft union: It is a union whose members done type of work, often

using specialised skills and training.
• Industrial union: It is a union that includes many persons working
in the same industry or company regardless of jobs held.
• General union: This type of union consists of workers employed in
different industries and crafts within a particular city or region.
• Federation: It is a group of autonomous, national and international
unions.

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 Structure of Trade Unions

Plant level
Unions
Local level
Federations

Regional level
federations

National level federations

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 Objectives of Trade Union

 Better wages & working conditions and promotion of Industrial

peace
 Protection against Exploitation and Victimization.
 Representation (Workers’ Interests)
 Negotiation (Collective Bargaining)
 Voice in decisions (Lay off, Retrenchment) affecting workers
 Member Service (Education, Training, Welfare, Discounts, Loans)

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 Functions of Trade Union

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 Why do People Join Union?

Greater
Minimize Sense of
Bargaining
Discrimination Security
Power

Sense of Sense of Platform for

Participation Belongingness self expression

Betterment of
relationships
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 Problems of Trade Union

Multiplicity of
Small size of the Unions & Leadership
the unions Intra-Union Issue
Rivalry

Inadequate Intra-Union Politicalisation of

funds rivalry the Unions

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 Suggestive remedial measures of trade unions

One Union in One Industry

Training and Education of Union
Workers
Enlarging the Coverage

Strengthening the Unions

Expanding and Diversifying
the Activities
Free from the control of
Political Parties
Change in the Employers’
Attitude
Change in Government’s
Attitude

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 Recap

•In this topic ,we learned about Meaning, functions ,objectives of Trade
Unions.
• We have also learned the Problems and Suggestive actions for Trade
Unions.

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 Daily Quiz
 The Trade Unions Act came into operation from ____.
a) a. 1st June, 1927
b) b. 1st May, 1926
c) c. 1st June, 1926
d) d. None of the above
 The act was enacted with the objective of providing for the
registration of trade unions and verification of the membership of
trade unions registered so that they may acquire a legal and
corporate status.
a) True
b) False
 What is the minimum number of trade union members requires in
registering themselves as a union?
a) 7 b) 10 c) 5 d) 15

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 Daily Quiz
 The aim of such activities is to ensure adequate wages secure better
conditions of work and employment get better treatment from
employers, etc.
a) Militant Function
b) Fraternal Function
c) Both a and b
d) None of the above
 Who initiated the textile labour association and in which year?
a) Lokmanya Tilak in 1921
b) Mahatma Gandhi in 1920
c) B.P. Wadia in 1920
d) Annie Besant in 1920

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 Daily Quiz
 The aim of such activities is to ensure adequate wages secure better
conditions of work and employment get better treatment from
employers, etc.
a) Militant Function
b) Fraternal Function
c) Both a and b
d) None of the above
 Who initiated the textile labour association and in which year?
a) Lokmanya Tilak in 1921
b) Mahatma Gandhi in 1920
c) B.P. Wadia in 1920
d) Annie Besant in 1920

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 Noida Institute of Engineering and Technology, Greater Noida

Trade Unions Act 1926

Unit I Topic - 4

Employee Relations and Labour

Laws

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84
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 Prerequisite

• Knowledge of HRM/ Meaning of Trade Unions.

10/21/2024 Dr.Smita Singh Employee Relations and Labour Laws AMBAHR0312 Unit I 85
 Topic Objective
Topic Topic Objective
No.
1 To study about Trade Unions Act 1926.

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 Topic Mapping
S.No. Topic Course
Outcome
1 Trade Unions Act 1926. CO1

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 The Trade Unions Act 1926
 An Act to provide for the registration of Trade Unions and in certain
respects to define the law relating to registered Trade Unions.
 A trade union is such an organisation which is created voluntarily on
the basis of collective strength to secure the interests of the workers. -V.
V. Giri.
 This Act provides for the registration of trade unions and in certain
respects in define the law relating to registered Trade Unions. The act
applies to registered Trade Unions.
 This act specifies the mode of their registration: The act was passed to
regulate :
a) Conditions governing the registration of a trade union.
b) Obligation imposed upon a registered trade unions and
c) Rights and Liabilities of Registered Trade unions.

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 Application for Registration.
 Every application for registration of a Trade Union shall be made to the
Registrar.
 Accompanied by a copy of the rules of the Trade Union and a statement
in accordance of section 6 of Act, such as name of the union and its
objects, admission of the members, creation of fund, subscription rate,
the executive of the union, amendment of rules etc.
 If the Registrar is satisfied that the union has complied with the
requirement of the Act.
 He shall register the union and will issue a Certificate of Registration in
favour of the union.
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 Legal status of a registered trade union

 A registered trade union is a body corporate with perpetual

succession and a common seal.
 It can acquire, hold sell or transfer any movable or immovable
property and can be a party to contracts.
 It can sue and be sued in its own name
 No civil suit or other legal proceeding can be initiated against a
registered trade union in respect of any act done in furtherance of a
trade dispute under certain conditions.
 No agreement between the members of a registered trade union shall
be void or voidable merely on the ground that any of its objects is in
restraint of trade.

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 Recognition of a Trade Union
• Recognition means the expressed recognition of a registered trade union by
an employer or by an employers association for the purposes of collective
bargaining.
• Recognition is different from registration.
• Recognition is provided to that union which comprises of more than 50 per
cent of the employees in that establishment as its members.
• It is the employer and only the employer, who awards recognition to one or
more unions, or refuses such recognition.

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 Types of recognition
• Recognition is of two types:
 VOLUNTARY TRADE UNION RECOGNITION: When an employer
voluntarily recognizes a trade union without using any legal procedures.
 STATUTORY TRADE UNION RECOGNITION: If an employer and
trade union do not come to a voluntary recognition agreement, a trade
union can make an application for statutory recognition. This only applies
where the employer, together with any associated employers, employs 21 or
more workers.

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 Rights of recognized trade unions
• Right to sole representation.
• Entering into collective agreement on terms of employment and
conditions of service .
• Collection of membership subscription within the premises of the
undertaking, the right to check-off.
• Holding discussion with departmental representatives of its workers-
members within factory premises .
• Inspecting by prior agreement the place of work of any of its members
• Nominating its representatives on works/ grievance committees and
other bipartite committees
10/21/2024 Dr.Smita Singh Employee Relations and Labour Laws AMBAHR0312 Unit I 93
 Trade unions in India

All India Trade Bharatiya Centre of Indian

Union Congress Mazdoor Sangh Trade Unions
(AITUC) (BMS) (CITU)

Hind Mazdoor National Labor

Hind Mazdoor
Kisan Panchayat Organization
Sabha (HMS)
(HMKP) (NLO)

Union Trade Indian Federation Indian National

Union Congress Of Free Trade Trade Union
(UTUC) Unions (IFFTU) Congress (INTUC)
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 Recap

•In this topic ,we learned about Trade Unions Act 1926.
•Recognition and Registration of Trade Unions.

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 Daily Quiz
 ______is a body corporate with perpetual succession and a common
seal.
 What is the full form of AITUF?
a. All International Trade Union Federation
b. All India Trade Union Forum
c. All India Trade Union Federation
d. None of the above
 In which year was the Indian National Trade Union Congress
formed?
a. 1947
b. 1950
c. 1948
d. 1935

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 Daily Quiz
 What is recognition of a trade union?
 What are the rights of a recognized trade union?
 Which section of the act deals with the registration of the trade
unions?
a. Section 8
b. Section 7
c. Section 9
d. Section 10
 Which act in Industrial Relations defines the term trade union?
a. Industrial Trade Resolution, 1962
b. Industrial Policy, 1991
c. The trade union and labour relations (consolidation) Act, 1992
d. The industrial Employment Act, 1946

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 Noida Institute of Engineering and Technology, Greater Noida

Industrial Democracy & Participative

Management

Unit I Topic - 5

Employee Relations and Labour

Laws

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98
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 Prerequisite

• Knowledge of HRM/ Industrial Relations/Trade Unions

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 Topic Objective
Topic Topic Objective
No.
1 To study about Industrial Democracy

2 To understand about Participative Management

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 Topic Mapping
S.No Topic Co
1 Industrial Democracy CO1

2 Workers Participation in C01

Management

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 Industrial Democracy
The concept of industrial democracy is a complete departure from the
traditional concept of autocratic management or one-man governance.

It means the application of democratic principal in managing industrial

units.

In industrial democracy, worker are treated as responsible partners of

the enterprise and are allowed to participate in the decision -making
process through different methods.

Workers are given the right of self-expression and an opportunity to

communicate their views on framing the polices of the company.

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 Objectives of Industrial Democracy

To improve a
sense of
commitment to
To respect human
the organizational
dignity of
objectives, plans
employees
and activities
among
employees.

To satisfy
psychological
needs of the
employees.

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 Pre-requisites of Industrial Democracy

 There should be strong trade union with constructive leadership in

every enterprise.
 The employers should have the willingness to treat workers as equal
partners in industry.
 All the parties to industrial relations, namely, employers,
employees and government should have full faith in industrial
democracy.
 The workers and management should have the genuine desire to del
with the industrial problems peacefully and through democratic
means.

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 Benefits of Industrial Democracy

 Less industrial disputes resulting from better communication

between management and staff.
 Improved decision making processes resulting in higher quality
decisions.
 Increased creativity, enthusiasm and commitment to Corporate
objectives.
 Lowered stress and increased wellbeing.
 Better use of time and resources.
 Improved productivity including service delivery.
 Increased job satisfaction resulting in reduced absenteeism.
 Improved personal fulfillment and self-esteem.

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 Benefits of Industrial Democracy

 Less industrial disputes resulting from better communication

between management and staff.
 Improved decision making processes resulting in higher quality
decisions.
 Increased creativity, enthusiasm and commitment to Corporate
objectives.
 Lowered stress and increased wellbeing.
 Better use of time and resources.
 Improved productivity including service delivery.
 Increased job satisfaction resulting in reduced absenteeism.
 Improved personal fulfillment and self-esteem.

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 Workers’ participation in management
• Workers’ participation in management is mental and emotional
involvement in group Industrial Democracy situation which
encourages workers to contribute to group goals and share
responsibility.
• Participation has three ideas:
 Mental and emotional involvement, rather than mere muscular
activity. It is more psychological than physical.
 It motivates persons to contribute to achievement of organisational
goals by creative suggestions and initiatives.
 It encourages people to accept responsibility. They are ready to work
with the manager, instead of against him.

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 Objectives of Workers Participation in
Management
The objectives of workers’ participation in management are as follows:
 To raise level of motivation of workers by closer involvement.
 To provide opportunity for expression and to provide a sense of
importance to workers.
 To develop ties of understanding leading to better effort and
harmony.
 To act on a device to counter-balance powers of managers.
 To act on a panacea for solving industrial relation problems.

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 Forms of Participation

Works Committee

Joint Management Council (JMC)

Shop Council

Suggestion Scheme

Unit Councils
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 Recap

• In this topic, We learned about Industrial Democracy.

• We also learned about Workers participation in management.

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 Daily Quiz
 Fill in the blanks:
 Industrial Democracy -is an arrangement which involves workers
making decisions, sharing responsibility and authority in the workplace.

 In every organisation, there should be a strong trade union with effective

leadership.

 Employee Participation management refers to the participation of non-

managerial. employees in the decision making processes of the
organization.
 Work committees were expected to discuss matters of common
interest and to maintain cordial relations between workers and
employees.

10/21/2024 Dr.Smita Singh Employee Relations and Labour Laws AMBAHR0312 Unit I 111
 Daily Quiz
 The committees which promote workers’ participation in management
are usually established only at the
a) corporate level
b) plant level
c) shop-floor level
d) All of the above
 Joint management councils are normally formed in an organization at a
level which is
a) above the board of directors
b) below the board but above the shop-floor level
c) below the shop-floor level
d) None of the above

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 Weekly Assignment

Q.1. Describe Industrial Relations. What is the scope of Industrial Relations.

Q.2. Case Study :
In one state, the chief Minister was invited to the annual conference of a union
where union elections were also scheduled. The Chief Minister inaugurated
the conference and observed as follows: "I propose that you elect Mr.XYZ as
your president and the president in turn elect his team. Before the members
could understand the significance of what the Chief Minister has said there
was a big round of applause from the audience-presumably orchastered by
supporters of the Chief Minister's nominee for president ship of the union.
Contd------

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 Weekly Assignment (Case Study continued)

Before anyone could say anything quite, a few queued up and began to
garland Mr.XYZ. Mr.XYZ then rose and announced the name of his
nominees. The elections concluded. Those who were elected were happy
about the smooth and cordial manner in which the elections had been held.
Referring to two cases in the recent past in neighbouring factories, they said,
in one the rival unions spent a lot of money in elections. From where had the
money come? Would the ones who had spent so much money not want to
recover it in one form or another? Another elected person was talking about
how management manipulated the elections to have a "company" union. Some
of the people who had aspired to contest the elections were dismayed but
could not do much because of the atmosphere in which the whole thing had
happened.
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 Weekly Assignment (Case Study continued)

Question:
 What role, if any, should management have in the manner in which unions
are administered? Is there a justification for managements to intervene in
the internal matters of unions on the grounds that the internal dynamics of
unions affect the functioning of the company wherein the unions operate?
 What suggestions do you have to make trade unions truly for the members,
of the members, and by the members?

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 Topic Links

https://www.youtube.com/watch?v=WgRkGrhWklE
https://www.youtube.com/watch?v=lTjYFxwprf4
https://www.youtube.com/watch?v=YpLnBEolKnc

Dr.Smita Singh Employee Relations

10/21/2024 116
and Labour Laws AMBAHR0312 Unit I
 MCQs
1.Industrial relations cover the following area(s)
a) Collective bargaining
b) Labour legislation
c) Industrial relations training
d) All of the above
2. Which of the following is not an approach to industrial relations?
e) Unitary approach
f) Pluralistic approach
g) Marxist approach
h) Employee’s approach

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 MCQs
3. Under unitary approach, industrial relation is grounded in-
a) Mutual co-operation
b) Individual treatment
c) Team work and shared goals
d) All of the above

4. Pluralistic approach perceives ______ as legitimate representative of

employee interests
e) Trade unions
f) Management
g) Board of Directors
h) None of the above

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 MCQs
6. Parties to industrial relations are
a) ILO, Government, Association of employers
b) ILO, Government, IMF
c) ILO, Board of Directors, Association of employers
d) Government, Board of Directors, Association of employers
7. Which of the following department has major interest in harmonious
industrial relations
e) HR
f) Production
g) Finance
h) Marketing
8. The following is (are) included in ILO’s standards with regard to industrial
relations
i) Right of association b) Right to organize and collective bargaining
c) Tripartite consultants d) All of the above

10/21/2024 Dr.Smita Singh Employee Relations and Labour Laws AMBAHR0312 Unit I 119
 MCQs
9. A proactive industrial relations programme must cover the following
decision(s)
a) Communication
b) Competence
c) Discipline and conflict
d) All of the above

10. Which of the following is usually not an objective of industrial

relations?
e) Connectedness
f) Collective wisdom
g) Conflict prevention
h) None of the above

10/21/2024 Dr.Smita Singh Employee Relations and Labour Laws AMBAHR0312 Unit I 120
 Glossary Questions
Trade Union Democratic Social Plant union Negotiation
• The first level in the structure from below in the structure of trade
union is the ________.
• Industrial democracy means the application of _____principles in
managing industrial units.
• Employees join the union to fulfill their ___________ needs.
• is a bargaining process between two or more parties seeking to
reach an agreement to settle a matter of mutual concern or resolve a
conflict.
• ____are a form of employee association.

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 Old Question Papers

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 Old Question Papers

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 Old Question Papers 2022

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 Old Question Papers 2022

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 Previous Sessional I Paper

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 Previous Sessional I Paper

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 Previous Sessional II Paper

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 Previous Sessional II Paper

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 Previous Sessional II Paper

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 Expected Questions for University Exam

• Explain industrial democracy.

• Explain the registration and recognition of Trade unions.
• Explain the concept of Industrial Relations.
• Explain the reasons for joining Trade unions.

10/21/2024 Dr.Smita Singh Employee Relations and Labour Laws AMBAHR0312 Unit I 131
 Recap of Unit
• This unit tells us about that Good industrial relation helps in
effective utilization of man, money and material. Improved
employee morale, industrial peace, recognition of employee's
interest and reconciliation of employer's and employee objectives
and interest increased production with minimum wastage of
resources.

10/21/2024 Dr.Smita Singh Employee Relations and Labour Laws AMBAHR0312 Unit I 132
 References
1.Srivastava SC - Industrial Relations and Labour Laws (Vikas, 2020, 7th
Edition.)
2.Taxmann Labour Laws”, Taxmann Allied Services Pvt. Ltd.,2019
Monappa Arun, “Industrial Relations and Labor laws”, Tata McGraw Hill
Edition, New Delhi, 2E Edition, 2012.

Thank You
3. Industrial Relations, Chaganti Satya Venkata Ratnam, Manoranjan Dhal,
2017.
4. Mamoria, Mamoria and Gankar, “Dynamics of Industrial Relations”,
Himalaya Publishing House, New Delhi, 2016.
5. D. P Sahoo: Employee Relations Management - Texts and Cases (Sage
Publication) 2020
10/21/2024 Dr.Smita Singh Employee Relations and Labour Laws AMBAHR0312 Unit I 133