I Module

INDUSTRIAL
RELATIONS CODE

Structure
1.1 Historical Reasons for the Formation of Combinations of Workers, Legal
Impediments
1.2 International Labour Organisation - Its Influence in Bringing Changes in
National Legislations
1.3 Trade Union - Definition, Registration and Recognition
1.4 Immunities in Trade Disputes: Criminal and Civil

Introduction
The Industrial Relations Code, 2020 provides a broader framework to protect the rights of
workers to make unions, reduce the friction between employers and workers, and provide
regulations for the settlement of industrial disputes. The Industrial Relations Code, 2020 was
enacted by the Central Government, and with respect to the same, most of the State Labour
Department has been publishing its draft rules, which will soon be implemente~. The Code has
been introd~ced in order to amalgamate, simplify and subsume the following three centrai" labour
acts under one Code:
(i) The Trade Unions Act, 1926
(ii) The Industrial Employment (Standing Orders) Act, 1946
(iii) The Industrial Disputes Act, 1947
The Code has 104 sections spread in XI.V Chapters and three schedules relating to the
Standing Orders, Unfair Labour Practice and Condition of Service for Change of which notice has
to be given respectively.

Scope and Applicability

The Code is applicable to the whole of India. The Code is designed to consolidate and amend
the laws regarding Trade Unions, conditions of employment in industrial establishment or
undertaking, and aims settlement of industrial disputes. The Code regulates the subsequent areas:
• Registration, Cancellation and Alteration of Name of Trade Union
 2 Labour Law and Industrial Relations - I

• Const itution of Work Comm ittee and Griev ance Redressal Comm ittee
• Incorporation of a Registered Trade Union
• Recog nition of Negot iating Union
• Preparation of Stand ing Order
• Regis ter of Stand ing Order
• Const itution of Industrial Tribunal
• Illega l Strikes and Lock-outs
• Proce dure for Retrenchment and Re-employment of Retrenched Work
er
• Comp ensati on to Work ers in Case of Transfer of Establishment
• Prohib ition of Lay-o ff
• Closu re of an Industrial Establishment

Objectives
• The Code is designated to safeguard the rights of employers
and emplo yees by
providing easy labour reforms and facilitating Ease of Doing Business
. ·,,,. .
• The object of the Code is to realise industrial peace and harmony
,, ' as the ultima te pursuit
in resolving industrial disputes and to advance the progress of the
industry by bringing
about the existence of harmony and cordial relationship between
the emplo yers and
workers.

The Industrial Revolution, which started in Britain in the 18th centur

y, slowly and steadily
expan ded in different countries and this revolution also resulted in the
formation of Trade Unions.
The sudden shift from small-scale industries to the establishment of
large-scale industries led to a
surge in the demand for both skilled and unskilled labourers.
With the advent of establishment of several factories, employers were
required to hire more
worke rs. Being the initial phase of industrial growth, everything was
at nascent stage and so was
unorg anised . Consequently, there was possibility of.e_xplo\tation of
labour class, as the workers
feared that they will be replaced if there is any_i;~u i{''on their
part. At the same time, the
emplo yer had an upper hand which paved way to exploitation of worke
rs. Therefore, the workers
gathe ring in comm on intention to raise the standard of working condit
ions and to guara ntee their
rights was a welco me step. Over the period of time, the workers came
together to form a body of
worke r which came to be know n as 'Unio n".
India was under British Rule at that time, yet the concept of forma
tion of Trade Union
result ed in forma tion of new laws for protection of workers.
During this period , significant
devel opme nts took place in India in cra~in g s~e.cific labour _legisl
ati~~s fo~ securing the goal of
socia l justic e. Thus, overalJ, the econonuc, poht1cal and social :ond1t
1ons mfluenced the growth
f trade union move ment in India. At the global stage, establishment of Intern
ational Labour
~rgan isatio n (ILO) in 1919 helped the formation of trade union
in the country. Sever al other
 Industrial Relations Code 3

influences, such as the Swaraj Movem ent of 1921-1924 and the Royal Comm
ission on Labour,
emphasised the need to incorporate numer ous labour laws that will benefit worker
s.
Fonnation of Working Class in India
The working class in India developed and formulated in the 19th centur
y under colonial
indulgence with the introduction of capitalism. It was during this phase
that the British India
witnessed several developments in the form of establishment of modem
factories, railways,
dockyards and construction to roads, huge buildings, etc. It was due
to this progress and
expansion to, the working class looked forward to modem organisation of labour
and a relatively
free market for labour.

Movement in Pre-independence India for Formation for Workers

The trade and enlargements of the several activities by the East India Compa
ny fetched
prominence to the port cities - Bombay, Calcutta and Madras. These cities due
their geographical
convenience favourable for trade very soon becam e the centres of the capital
ist economy. For,
e.g., the establishment of cotton mills in Bombay, jute mills in Calcutta, and
several factories in
Madras in the late 19th century resulted in similar developments in smaller cities
like Ahmed abad,
Kanpur, Solapur, Kolhapur and Nagpu r. Since the factories and various establi
shments required
the services of workers, it emerged as the basic reason historically to
have congregation of
workers. The plantation workers worke d for the capitalist employers and produc
ed goods which
were sold in the international markets. However, they were recruited under
unfree conditions and
were made to work in an unorganised manner. In fact, for the majority of the
workers in coloni al
India, the recruitment and working conditions were not as free as were presen
t in some other
countries which were capitalistically more developed. This situation had
its impac t on the
working class movem ent and was the main reason for calling a worke rs'
movem ent in India.
Apart from less develo ped economy, the colonial condition also had its
bearin g on the labour
movement.
The working class movem ent covere d all kinds of movem ents involving
worke rs such as
silent protests, passive resistance, individual protests and strikes as well as
more organi sed forms
of welfare activities and bigger protes ts and strikes. Thus, the worke rs ' movem
ent extend ed from
daily struggles of the workers to general strikes encompassing the whole
industry or many
industries. In fact, being an early phase, the working conditions of the worke
rs require d attenti on
of law. Consequently, the worke rs' groups made endeavours in 1870-1
880 to improv e the
working condit ions by having organi sed labour. For a long period, no
heed was paid to the
working condit ions of workers. It was only during 1903 to 1908 while the
Swadeshi Surge took
place in furtherance of concer ted efforts to upgrad e the conditions of labour
. Additionally, major
steps were taken for formation, protection and organisation of worke rs
betwee n 1915-1922.
During this period , there was resurg ence of worke rs' movem ent along
with the Home Rule
Movement and the Non-c oopera tion Movem ent. Thus, there were variou
s efforts made by the
workers during the Colonial Rule for formation of worke rs.
The worke rs' movem ent experi enced a long struggle for stream lining the
recruitment and
working condit ions of worke rs which formed a backgr ound for formation
of trade unions. Trade
union movem ent is looked upon as a strong er movem ent which attemp
ted to make workin g
4 Labour Law and Industrial Relations - I

conditions more humane and more cooperative to the needs of the wor~e
rs. It is being in these
compelling circumstances, India witnessed the growth and rise of trade
uruon.
Factors Contributing to the Growth of Trade Union in India
After World War I, there were major changes which included increa
se in the p~i~es of
essential commodities. However, the wages of labourers did not
increase. The condthon of
workers became miserable. In the meantime the Russian Revol
ution of 191? and the
establishment of the USSR compelled the worke;s to reconsider their
social order. Similarly, ~he
establishment of the International Labour Organisation (ILO) in 1919
gave a boost for protection
of the workers' interests.
During the 1920s, the rise of socialist ideology in India led to the forma
tion of trade ~n~ons.
The Gaya Session of Congress in 1922 adopted a resolution allowing
party workers to participate
in trade union activities, providing additional impetus to trade unions.
According to the resolution,
a committee was formed with Lala Lajpat Rai, C.R. Das and Anusu
yaben Sarabhai to organise
workers into trade union. C.R. Das, the President, opined that Congr
ess should provide all
necessary aid to the peasants and the working classes in their fight for
attaining the Swaraj since
they were heavily exploited by the Britishers and the loyalists. The growt
h of communist parties
sparked the interest of the workers and which expanded the trade union
.
Factors Leading to Growth of Trade Union in India
1. Industrialisation: The process of industrialisation in India,
particularly after
independence in 1947, led to the growth of the organised workforce.
As industries
expanded, so did the number of workers, creating a need for collective
representation
and negotiation.
2. Labour Exploitation: Historically, many workers in India faced
harsh working
conditions, low wages, and exploitation by employers. Trade union
emerged as a
response to these grievances, providing a platform for workers to voice
their concerns
and demand better working conditions.
3. Legislative Support: The legal framework provided by laws like the
Trade Unions Act,
I 926, and the Industrial Disputes Act, 1947 gave trade union forma
l recognition and
rights. These laws allowed unions to register, negotiate on behalf
of workers, and
engage in industrial dispute resolution.
4. Political Influence: Many trade unions in India are affiliated with
political parties.
These affiliations have provided unions with political support
and resources,
contributing to their growth and influence.
5. Collective Bargaining: Trade unions are essential for collective
bargaining. They
negotiate with employers on behal f of workers for better wages, worki
ng conditions,
and benefits. The ability to collectively bargain has been a significant
attraction for
workers to join unions.
6. Worker Awareness: Increased awareness among workers about
their rights, labour
laws, and the benefits of collective action has led to more workers joinin
g trade unions
to protect their interests.
Industrial Relatio,rs Code 5

7. Changes in Employment Patterns : The changing nature of employm ent, including the
growth of the informal sector, contractual labour, and gig economy workers , has spurred
the need for unions to protect the rights of these workers who may be vulnerable to
exploitation.
8. Social Movements: Various social movements in India, advocating for workers ' rights,
have contributed to the growth of trade unions. These movements have raised awareness
about labour issues and encouraged workers to organise.
9. Global Labour Solidarity: Trade unions in India often collaborate with international
labour organisations and unions. This global solidarity has helped Indian unions gain
support, resources, and exposure.
10. Technological Advances: Technology has enabled trade unions to communicate with
and organise workers more efficiently. Online platforms and social media have
facilitated union activities and outreach.
11. Change s in Economic Policy: Shifts in economic policy, such as labour market
reforms and changes in employment laws, have driven workers to seek the protection
and representation offered by trade unions.
12. Social Welfare Initiatives: Trade unions are often involved in advocating for social
welfare initiatives, including healthcare, education, and housing, which resonate with
workers and attract them to union membership.
Thus, the growth of trade unions in India can be attributed to a combination of economi c,
political, and social factors. These unions continue to be essential in protecting the rights and
interests of workers in a rapidly changing economic and labour landscape.
The Trade Unions Act, 1926 serves as the legal framework for the functioning of trade
unions in India. It aims to protect the rights and interests of workers and employers while
ensuring that trade union activities are conducted within legal boundaries. This Act plays a crucial
role in promoting industrial harmony and facilitating collective bargaining, which are
fundamental to labour relations in India. Additionally, it recognises the role of trade union as vital
entities in safeguarding the rights and welfare of workers in a democratic and evolving society.

Questions
1. Discuss the historical reasons for the formation of combinations of workers in India.
2. Discuss the evolution and growth of Trade Union in India.
3. Explain the factors that contributed to the growth of Trade Unions in India.
4. Elaborat e the backgro und leading for enactment of Trade Unions Act in India.

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In 1919, the International Labour Organisa tion (ILO) came into existence, as part of the
Treaty of Versailles that ended World War I. The said Treaty was premised on the belief that
universa l and lasting peace can be ensured only if it is based on social justice. The Preamble of
- - ~ - - ~ ~ ~ ~-- - ----- -- -- -- ---- -- -- -- ---
6 Labour Law and Industrial Relations - I

Constitution of ILO enlists the regulation of working time and labou

r supply, t~e prevention of
unemployment and the provision of an adequate living wage, social
protectio~ of workers,
children, young persons and women as the key features. The Pream
ble also recogmses a n~?e r
of vital principles such as equal remuneration for work of equal value
and freedom of association
and highlights, among others, the importance of vocational and techni
cal education.
Shri N.M. Joshi, a veteran social activist of that time, represented
the labourers at the
Washington Summ it of ILO in the year 1919. Subsequently, the Intern
ational Labou~ C?nfere~ce
was held in 1927. Shri V.V. Giri also represented the Indian worki
ng class. Since its mceptmn,
the ILO has framed a number of conventions and recommendations conce
rning various aspects of
worki ng conditions, employer-employee relations, labour welfare, social
security, etc. One of the
earlier and most important conventions of the ILO is the 'Righ t
to Organise and Collective
Bargaining Convention (No. 98), 1949' . This Convention sets out
rules for the freedom of
unionisation and collective bargaining, principles that belong to the
core values of the ILO. The
Convention ensures workers' protection from discrimination for their
membership or engagement
in union activities.

The First Central Trade Union Organisation

The year 1920 was of crucial importance in the history of Indian trade
union movement. By
this time, efforts to organise trade unions all over India bore fruit and
a large number of unions
were starte d In fact, in 1920 itself, the first Central Trade Union was
organised. The Government
of India Act, 1914 provided tor representation by nomination in
the Central Legislature for
industrial labour. It was understood that the Government would
consult the leaders of the
organised labour movement before making the nomination. Secon
dly, the establishment of
International Labour Organisation in the same year, i.e., in 1919,
produced a very similar
situation because a representative of the Indian working people was
to be nominated in the
delegation to the International body. Initiative was taken by the leader
s of the Indian National
Congress and the All India Trade Union Congress (AITUC) was consti
tuted in a conference of
trade union representatives in Bombay in October, 1920. Lala Lajpa
t Rai, a veteran Congress
leader from Punjab, was the President of the first session. Also associ
ated were leaders like Shri
Dewa n Chaman Lal, Shri N.M. Joshi, Shri Motilal Nehru and Smt. Annie
Besant. Unions with a
total membership of 1,40,854 were affiliated to it. All India Railwaymen
' s Federation was also
formed in 1922, and practically, all the Unions in the Railways
were affiliated to it. Other
organisations like the Bengal Trade Unionist Federation and the Centra
l Labour Board, Bombay
were also formed almost the same time.
The International Labour Organisation (ILO) was established in 1919,
following World War
I, as a social engineering project to protect workers' rights and ensure that
freedom, equity, and
dignit y in working conditions are universally observed. It is the Unite
d Natio ns' first specialised
agenc y, havin g been established as part of the League of Nations. The
ILO currently has 187 of
the Unite d Natio ns ' 193 member states as members. The ILO accentuates
on the tripartism, which
aims to ensur e that any dialogue on labour-related issues involves
the three main stakeholders,
name ly, emplo yers, workers, a~d states. The International Labo~r Organ
isation (ILO) achieves its
goals through three main bodies made up of the aforementioned stakeholders
, which are as
follow s:
Industrial Relations Code 7

1. The International Labour Conference: It is an annual gathering of governments,

workers, and employers from ILO member countries. The conference's goal is to
discuss the organisation's broad policies, establish and adopt international labour
standards, and elect the governing body.
2. Governing Body: It is the ILO's executive body, responsible for policy decisions,
setting the agenda for the International Labour Conference, adopting a budget, and
electing the Director-General. It is made up of 56 titular members, of which, 28 are held
by governments and 14 by employers and workers, respectively. Ten of the titular
government seats are non-elected, permanent seats held by states with the greatest
industrial importance; India is one of these nations.
3. International Labour Office: It is the International Labour Organisation ' s permanent
secretariat, and it is in charge of the organisation's adminis.tration as well as the
implementation of technical cooperation activities, as well as programmes for awareness,
advocacy, and information sharing.

Important Conventions/Declaration/Documents
1. Declaration on Fundamental Principles and Rights at Work (1998): The
Declaration categorises fundamental principles and rights into four categories: freedom
of association and effective recognition of the right to collective bargaining, the
abolition of forced or compulsory labour, the abolition of child labour, and the abolition
of employment and occupation discrimination.
2. Forced Labour Convention (1930) and its Protocol (2014): This document is one of
the primary international instruments responsible for the worldwide reduction in
forced/compulsory labour. It criminalises the use of forced labour and requires ratifying
countries to ensure that it is strictly enforced. This also includes taking all necessary
steps to end all forms of forced labour, as well as identifying and rehabilitating all
victims of such labour.
3. Labour Inspection Convention, 1947: This document requires ILO members to
maintain, to the greatest extent possible, a system of labour inspection in industrial
workplaces under the supervision and control of a central authority.
4. Freedom of Association and Protection of the Right to Organise Convention (1948):
This Convention dealt with the right of workers to form and join organisations of their
choice without the approval of their employer, the right of workers' and employers '
organisations to draft their own constitutions and rules, and the right of workers' and
employers' organisations to form and join federations, etc.
5. Right to Organise and Collective Bargaining Convention (1949): This docwnent
seeks to protect workers and workers' organisations from anti-union discrimination in
the workplace.
6. Equal Remuneration Convention (1951 ): The ratifying states are required by thi s
Convention to promote the application of the equal remuneration principle for work of
equal value also aims to secure gender equality.
7. Abolition of Forced Labour Convention (1957): This Convention expands on the
general prohibition in the preceding docwnent by prohibiting the use of forced labour
 8 Labour Law and Industrial Relations - I

for political coercion, education, punishment, mobilising labour for economic

development, labour discipline, as punishment for strike participation, and as a means of
racial, social, national, or religious discrimination.
8. Minimum Age Convention (1973): This Convention requires ratifying countries to
implement a national policy aimed at effectively eliminating child labour. It also
requires states to raise the minimum age for employment/work to a level consistent with
young people's physical and mental development.
9. Worst Forms of Child Labour Convent ion (1999): The term "child" refers to all
persons under the age of 18 for the purposes of this Convention. Each member who
ratifies this Convention is obligated to take immediate steps to eliminate the most
heinous forms of child labour. This term includes practices such as slavery, human
trafficking, serfdom, and the use of child soldiers, among others.
10. Discrimination (Employment and Occupation) Convention (1958): This addresses
discrimination based on race, colour, gender, sexual orientation, religion, political
opinion, national origin, or social origin. Other distinctions that have the effect of
nullifying or impairing equality of opportunity are included.
11. Employment Policy Convention, 1964: This Convention seeks to ensure that member
countries actively pursue the policy goal of full and equal employment for all of their
citizens.
12. Labour Inspection (Agriculture) Convention, 1969: The Convention seeks to impose
an obligation on ratifying countries to refrain from excluding agricultural enterprises
from the National Labour Inspection system. It defines agricultural enterprises and
outlines the system functions that specifically cater to such establishments.
13. Tripartite Consultation (International Labour Standards) Convention, 1976: This
document defines representative organisations in the context of labour and requires the
ratifying countries to implement procedures that allow for effective consultations on
issues handled by the ILO. These include government responses to questionnaires,
proposals to the competent authority in connection with Conventions/Recommendations,
re•examination of unratified Conventions, questions arising from reports to the
International Labour Office, and proposals to denounce ratified Conventions.

Conventions Ratified by India

India has ratified only four of the eight core conventions, which are as follows:
I. Forced Labour Convention, 1930, No. 29.
2. Equal Remuneration Convention, 1951, No. 100.
3. Discrimination (Employment and Occupation) Convention, 1958, No. 111.
4. Abolition of Forced Labour Convention, 1957, No. 105.
Thus, the principal function of the ILO is to take care of the interests of the workers by
means of setting up the international labour standards in the form of Conventions and
Recomm endation s. Overall, ILO is dedicated to promote social justice and internationally
reccgnis ed human and labour rights, by religiously following its founding mission that labour
peace is essential to prosperity.
Industrial Relations Code 9

Influence of ILO in Bringing about Changes in the Constitutional Law and

Other Legislations in India
The International Labour Organisation (ILO) has had a significant influence on
the
development of labour laws and policies in India, including the Indian Constitution and
other
legislations:
1. ILO and the Indian Constitution: The principles and objectives of the ILO have been
incorporated into the Indian Constitution which reflects in the chapter of Fundamental
Rights Guaranteed by the Indian Constitution. The right to equality, right against
exploitation, and the right to work are influenced by the principles enshrined in ILO
Conventions and Recommendations. Similarly, the Directive Principles of State Policy
in Part IV of the Constitution contain provisions related to labour and employment,
emphasising the welfare of workers, just and humane conditions of work, and the
prohibition of child labour.
2. Minimum Wage Legislation: The concept of minimum wage and fair wages, which
is
an integral part of ILO Standards, has influenced Indian labour laws, including the
Payment of Minimum Wages Act, 1948.
3. Child Labour Prohibition: India has ratified ILO Convention No. 182 on the Worst
Forms of Child Labour. The influence of the ILO is evident in the Indian laws such as
the Child Labour (Prohibition and Regulation) Act, 1986.
4. Occupational Health and Safety: ILO Conventions related to Occupational Health and
Safety have influenced Indian laws and regulations governing workplace safety,
including the Factories Act, 1948; the Employees' State Insurance Act, 1948; Mines Act,
1952; etc.
5. Trade Union Rights: ILO Conventions on Freedom of Association and the Right
to
Organise have played a role in shaping Indian laws related to trade unions, collective
bargaining and industrial disputes, including the Trade Unions Act, 1926 and the
Industrial Disputes Act, 1947.
6. Equal Remuneration: The principle of equal pay for equal work, as advocated by
the
ILO, is reflected in Indian laws like the Equal Remuneration Act, 1976, which aims to
eliminate gender-based wage discrimination.
7. Social Security and Welfare: The ILO's emphasis on social security and worker
s'
welfare has influenced Indian policies and laws related to provident funds, gratuity and
other social security benefits.
8. Maternity Benefits: The ILO's Maternity Protection Convention has influenced Indian
laws such as the Maternity Benefit Act, 1961, which provides maternity benefits and
protection for pregnant and lactating women in the workforce.

Questions
1. Highlight the significance of International Labour Organisation.
2. Explain the role of ILO in protection of Trade Union Members/Labourerss.
3. Explain in what manner has the ILO influenced Indian Legislations.
4. Name few Conventions ofILO.
10 Labour Law and Jnd11strial Relations - I

Definition (Section 2)
Section 2 of the Code defines various terms are given hereu
nder:
2. In this Code, unless the context otherwise requ ires, -
(a) "appellate authority" means an authority appointed
by the appropriate Government to
exercise such functions in such area as may be speci
fied by that Government by
notification in the Official Gazette;
(b) "appropriate Government" mea ns,-
(i) in relation to any industrial establishment or undertaki
ng carried on by or under the
authority of the Central Government or concerning any such
controlled industry as
may be specified in this behalf by the Central Governme
nt or the establishment of
railways including metro railways, mines, oilfields, majo
r ports, air transport
service, telecommunication, banking and insurance comp
any or a corporation or
other authority established by a Central Act or a central publ
ic sector undertaking,
subsidiary companies set up by the principal undertakings
or autonomous bodies
owned or controlled by the Central Government including
establishments of the
contractors for the purposes of such establishment, corpo
ration, other authority,
public sector undertakings or any company in which not less
than fifty-one per cent
of the paid-up share capital is held by the Central Governme
nt, as the case may be,
the Central Government;
Explanation: For the purposes of this clause, the Cent
ral Government shall
continue to be the appropriate Government for central publ
ic sector undertakings
even if the holding of the Central Government reduces to
less than fifty per cent
equity in that public sector undertaking after the commence
ment ofth is Code;
(ii) in relation to any other industrial establishment,
including State public sector
undertakings, subsidiary companies set up by the princ
ipal undertaking and
autonomous bodies owned or controlled by the State
Government, the State
Government:
Provided that in case of a dispute between a contractor
and the contract labour
employed through the contractor in any industrial establishm
ent where such dispute
first arose, the appropriate Government shall be the Cent
ral Government or the
State Government, as the case may be, which has contr
ol over such industrial
establishment;
(c) "arbitrator" includes an umpire;
(d) "average pay" means the average of the wages paya
ble to a wor ker, -
(i) in the case of monthly paid worker, in three complete
calendar months;
(ii) in the case of weekly paid worker, in four complete week
s;
(iii) in the case of daily paid worker, in twelve full working
days, preceding the date on
which the average pay becomes payable, if the worker had
worked for three
Industrial Relations Code 11

complete calendar months or four complete weeks or twelve full working

days, as
the case may be, and where such calculation cannot be made, the average
pay shall
be calculated as the average of the wages payable to a worker during the
period he
actually worked;
(e) "award" means an interim or a final determination of any indust
rial dispute or of any
question relating thereto by any Industrial Tribunal referred to in Section
44 or National
Industrial Tribunal referred to in Section 46 and includes an arbitration
award made
under Section 42;
(f) "banking company" means a banking company as defined in Sectio
n 5 of the Banking
Regulation Act, 1949 and includes the Export-Import Bank of India,
the Industrial
Reconstruction Bank of India, the Small Industries Development Bank
of India
established under Section 3 of the Small Industries Development Bank
of India Act,
1989, the Reserve Bank of India, the State Bank of India, a correspondi
ng new bank
constituted under Section 3 of the Banking Companies (Acquisition and
Transfer of
Undertakings) Act, 1970, a corresponding new bank constituted under Sectio
n 3 of the
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980;
(g) "certifying officer" means any officer appointed by the appro
priate Government, by
notification, to perform the functions of a certifying officer under the
provisions of
Chapter IV;
(h) "closure" means the permanent closing down of a place of emplo
yment or part thereof;
(i) "conciliation officer" means a conciliation officer appointed
under Section 43;
(j) "conciliation proceeding" means any proceeding held by a concil
iation officer under
this Code;
(k) "controlled industry" means any industry the control of which
by the Union has been
declared by any Central Act to be expedient in the public interest;
(I) "employee" means any person (other than an apprentice engaged under
the Apprentices
Act, 1961) employed by an industrial establishment to do any skilled,
semi-skilled or
unskilled, manual, operational, supervisory, managerial, administrative,
technical or
clerical work for hire or reward, whether the terms of employment be expre
ss or implied,
and also includes a person declared to be an employee by the appropriate
Government,
but does not include any member of the Armed Forces of the Union ;
(m) "employer" means a person who employs, whether directly
or through any person, or
on his behalf or on behalf of any person, one or more employee or
worker in his
establishment and where the establishment is carried on by any depar
tment of the
Central Government or the State Government, the authority specified by
the head of the
department in this behalf or where no authority is so specified, the
head of the
department, and in relation to an establishment carried on by a local autho
rity, the chief
executive of that authority, and includes,-
(i) in relation to an establishment which is a factory, the occupier of
the factory as
defined in clause (n) of Section 2 of the Factories Act, 1948 and where
a person
has been named as a manager of the factory under clause (f) of sub-se
ction (I ) of
Section 7 of the said Act, the person so named;
12 Labour Law and Industrial Relations -I
In
· · ·
nt, the person who' or the authority ffi . has
(ii) m relatio n to any other establishme .d which
ultimate control over the affairs of the establishment and where the ~at
~ airs are
entrusted to a manager or managmg . director h nager or manag mg directo r-,
, sue ma
(iii) contractor; and
(iv) legal representative of a deceased employer;
(n) "executive", in relation to a Trade Union, means the body by whate
ver name called, to
which the management of the affairs of a Trade Union is entrusted;
(o) "fixed term employment" means the engagement of a worker on
the basis of a written
contract of employment for a fixed period:
Provided that-
(a) his hours of work, wages, allowances and other benefits shall not
be less than that
of a permanent worker doing the same work or work of similar nature;
(b) he shall be eligible for all statutory benefits available to a perma
nent worker
proportionately according to the period of service rendered by him
even if his
period of employment does not extend to the qualifying period of
employment
required in the statute; and
(c) he shall be eligible for gratuity if he renders service under the contra
ct for a period
of one year;
(p) "industry" means any systematic activity carried on by coope
ration between an
employer and worker (whether such worker is employed by such emplo
yer directly <r
by or through any agency, including a contractor) for the produ
ction, suppl y or
distribution of goods or services with a view to satisfy human wants
or wishes (not
being wants or wishes which are merely spiritual or religious in nature
), whether or
not,-
(i) any capital has been invested for the purpose of carrying on such activi
ty; or
(ii) such activity is carried on with a motive to make any gain or profit
, but does not
inclu de-
(i) institutions owned or managed by organisations wholly or
substantially
engaged in any charitable, social or philanthropic service; or
(ii) any activity of the appropriate Government relatable to the sovereign
functions
of the appropriate Government including all the activities carried on
by the
departments of the Central Government dealing with defence research,
atomic
energy and space; or
(iii) any domestic service; or
(iv) any other activity as may be notified by the Central Government·
(q) "industrial dispute" means any dispute or difference between 'emplo
yers and
employers or between employers and workers or between workers and
workers which is
connected with the employment or non-employment or the terms of emplo
yment or with
the conditions of labour, of any person and includes any dispute or differ
ence between
an individual worker and an employer connected with, or arising
out of discharge,
dismissal, retrenchment or termination of such worker;
Industrial Relations Code 13

(r) "industrial establishment or undertaking" means an establishment or undertaking in

which any industry is carried on:
Provided that where several activities are carried on in an establishment or undertaking
and only one or some of such activities is or are an industry or industries, then-
(i) if any unit of such establishment or undertaking carrying on any activity, being an
industry, is severable from the other unit or units of such establishment or
undertaking which is not carrying on or aiding the carrying on of any such activity,
such unit shall be deemed to be a separate industrial establishment or undertaking;
(ii) if the predominant activity or each of the predominant activities carried on in such
establishment or undertaking or any unit thereof is an industry and the other
activity or each of the other activities carried on in such establishment or
undertaking or unit thereof is not severable from and is, for the purpose of carrying
on, or aiding the carrying on of, such predominant activity or activities, the entire
establishment or undertaking or, as the case may be, unit thereof shall be deemed to
be an industrial establishment or undertaking;
(s) "insurance company" means a company as defined in Section 2 of the Insurance Act,
1938;
(t) "layofr' (with its grammatical variations and cognate expressions) means the failure,
refusal or inability of an employer on account of shortage of coal, power or raw
materials or the accumulation of stocks or the breakdown of machinery or natural
calamity or for any other connected reason, to give employment to a worker whose
name is borne on the muster rolls of his industrial establishment and who has not been
retrenched.
Explanation: Every worker whose name is borne on the muster rolls of the industrial
establishment and who presents himself for work at the establishment at the time
appointed for the purpose during normal working hours on any day and is not given
employment by the employer within two hours of his so presenting himself shall be
deemed to have been laid off for that day within the meaning of this clause:
Provided that if the worker, instead of being given employment at the commencement
of any shift for any day is asked to present himself for the purpose during the second
half of the shift for the day and is given employment, then he shall be deemed to have
been laid off only for one-half of that day: -
Provided further that if he is not given any such employment even after so presenting
himself, he shall not be deemed to have been laid off for the second half of the shift for
the .day and shall be entitled to full basic wages and dearness allowance for that part of
the day;
(u) "lock-out" means 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 persons
employed by him;
(v) "major port" means a major port as defined in _clause (8) of Section 3 of the Indian
Ports Act, 1908; · ·
(w) "metro railway" means the metro railway as defined in sub-clause (i) of clause (I) of
Section 2 of the Metro Railways (Operation and Maintenance) Act, 2002;
14 Labour Law and /11dustriol Relations - I

(x) "mine" means a mine as defined in clause (j) of sub-section (I) of Section 2 of the
Mines Act, 1952;
(y) "National Industrial Tribunal" means a National Industrial Tribunal constituted under
Section 46;
(z) "negotiating union or negotiating council" means the negotiating union or negotiating
council referred to in Section 14;
(za) "notification" means a notification published in the Official Gazette of India or the
Official Gazette of a State, as the case may be, and the expression "notify" with its
grammatical variation and cognate ,expressions shall be construed accordingly;
(zb) "office bearer", in relation to a Trade Union, includes any member of the executive
thereof, but does not include an auditor;
(zc) "prescribed'' means prescribed by rules made under this Code;
(zd) "railway" means the railway as defined in clause (31) of Section 2 of the Railways Act,
1989;
(ze) "registered office" means that office of a Trade Union which is registered under this
Code as the head office thereof;
(zf) "registered Trade Union" means a Trade Union registered under this Code;
(zg) ''Registrar" means a Registrar of Trade Unions appointed by the State Government
under Section 5;
(zh) "retrenchment" means the termination by the employer of the service of a worker for
any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary
action, but does not include-
(i) voluntary retirement of the worker; or
(ii) retirement of the worker on reaching the age of superannuation; or
(iii) termination of the service of the worker as a result of the non-renewal of the
,contract of employment between the employer and the worker concerned on its
expiry or of such contract being terminated under a stipulation in that behalf
contained therein; or
(iv) termination of service of the worker as a result of completion of tenure of fixed
term employment; or
(v) termination of the service of a worker on the ground of continued ill-health;
(zi) "settlement" means a settlement arrived at in the course of conciliation proceeding and
includes a written agreement between the employer and worker arrived at otherwise
than in the course of conciliation proceeding where such agreement has been signed by
the parties thereto in such manner as may be prescribed and a copy thereof has been sent
to an officer authorised in this behalf by the appropriate Government and to the
conciliation officer;
(zj) "standing orders" means orders relating to matters set out in the First Schedule;
(zk) "strike'' means a cessation of work by a body of persons employed in any industry
acting in combination, or a concerted refusal, or a refusal, under a common
understanding, of any number of persons who are or have been so employed to continue
 ,..t,.~AJ,/ C6.
-~'I"'.
, ,, ~""
'-Q
.~ ~
Industrial Relations Code
• : 1 IERARY
~~ -
I5
r.
i
to work or to accept employment and includes the concerted casual leave on a - n day~.•
by fifty per cent or more workers employed in an industry; {.,_,,-1P:\l.1.'.S:' ·

(zl) "Trade Union" means any combination, whether temporary or permanent, formed
primarily for the purpose of regulating the relations between workers and employers or
between workers and workers, or between employers and employers, or for imposing
restrictive conditions on the conduct of any trade or business, and includes any
federation of two or more Trade Unions:
Provided that the provisions of Chapter III of this Code shall not affect-
(i) any agreement between partners as to their own business; or
(ii) any agreement between an employer and those employed by him as to such
employment; or
(iii) any agreement in consideration of the sale of the goodwill of a business or of
instruction in any profession, trade or handicraft;
(zm) "Trade Union dispute" means any dispute relating to Trade Union arising between two
or more Trade Unions or between the members of a Trade Union inter se;
(zn) "Tribunal" means an Industrial Tribunal constituted under Section 44;
(zo) "unfair labour practice" means any of the practices specified in the Second Schedule;
(zp) "unorganised sector" shall have the same meaning as assigned to it in clause (1) of
Section 2 of the Unorganised Workers' Social Security Act, 2008;
(zq) "wages" means all remuneration, whether by way of salary, allowances or otherwise,
expressed in terms of money or capable of being so expressed which would, if the terms
of employment, express or implied, were fulfilled, be payable to a person employed in
respect of his employment or of work done in such employment, and includes,-
(i) basic pay;
(ii) dearness allowance;
(iii) retaining allowance, if any, but does not include-
(a) any bonus payable under any law for the time being in force, which does not
form part of the remuneration payable under the terms of employment;
(b) the value of any house accommodation, or of the supply of light, water, medical
attendance or other amenity or of any service excluded from the computation of
wages by a general or special order of the appropriate Government;
(c) any contribution paid by the employer to any pension or provident fund, and the
interest which may have accrued thereon;
(d) any conveyance allowance or the value of any travelling concession;
(e) any sum paid to the employed person to defray special expenses entailed on
him by the nature of his employment;
( f) house rent allowance;
(g) remuneration payable under any award or settlement between the parties or
order of a court or Tribunal;
(h) any overtime allowance;
 Labour Law and J11dustrlal Relatio11s - I
16

(i) any commission payable to the employee~

(j) any gratuity payable on the termination of employment; or
(k) any retrenchment compensation or other retirement benefit paya~le _to the
employee or any ex- gratia payment made to him on the temunahon of
employment:
Provided that for calculating the wage under this clause, if any payments made (
by the emplo~er to the employee under sub-clauses (a) to (i) exceeds one-half,
or such other per cent as may be notified by the Centr~l Government, of all
remuneration calculated under this clause, the amount which exceeds such one-
half, or the per cent so notified, shall be deemed to be remuneration and shall be
accordingly added in wages under this clause:
Provided further that for the purpose of equal wages to all genders and for the
purpose of payment of wages, the emoluments specified in sub-clauses (d), (f),
(g) and (h) shall be taken for computation of wage. E
Explanation: Where an employee is given in lieu of the whole or part of the
wages payable to him, any remuneration in kind by his employer, the value of
such remuneration in kind which does not exceed fifteen per cent of the total
"
.. wages payable to him, shall be deemed to form part of the wages of such
employee;
(zr) "worker" means any person (except an apprentice as defined under clause (aa) of
Section 2 of the Apprentices Act, 1961) employed in any industry to do any manual,
unskilled, skilled, technicaL operational, clerical or supervisory work for hire or reward,
whether the terms of employment be express or implied, and includes working
journalists as defined in clause (f) of Section 2 of the Working Journalists and Other
Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955
and sales promotion employees as defined in clause (d) of Section 2 of the Sales
Promotion Employees (Conditions of Service) Act, 1976, and for the purposes of any
proceeding under this Code in relation to an industrial dispute, includes any such person
who has been dismissed, discharged or retrenched or otherwise terminated in connection
with, or as a consequence of, that dispute, or whose dismissal, discharge or
retrenchment has led to that dispute, but does not include any such person-
(i) who is subject to the Air Force Act, 1950, or the Army Act, 1950, or the Navy Act,
1957; or
(ii) who is employed in the police service or as an officer or other employee of a prison;
or
(iii) who is employed mainly in a managerial or administrative capacity; or
(iv) who is employed in a supervisory capacity drawing wages exceeding eighteen
thousand rupees per month or an amount as may be notified by the Central
Government from time to time:
Industrial Relations Code 17

Provided that for the purposes of Chapter III, "worke r"-

(a) means all persons employed in trade or industry; and
(b) includes the worker as defined in clause (m) of Section 2 of the Unorganised
Workers' Social Security Act, 2008.

Questions
1. Define Trade Union as per the Industrial Relations Code.
2. Define Employer and Employee as per the Industrial Relations Code.
3. Define Wages as per the Industrial Relations Code.
4. Define Appropriate Government as per the Industrial Relations Code.
5. Define Retrenchment as per the Industrial Relations Code.

81-PARTITE FORUM S

Works Comm ittee (Section 3)

I. In the case of any industrial establishment in which one hundred or more workers are
employed or have been employed on any day in the preceding twelve months, the
appropriate Government may by general or special order require the employer to
constitute a Works Committee, in such manner as may be prescribed, consisting of
representatives of employer and workers engaged in the establishment:
Provided that the number of representatives of workers in such Committee shall not be
less than the number of representatives of the employer.
2. The representatives of the workers shall be chosen, in such manner as may be prescribed,
from among the workers engaged in the establishment and in consultation with their
Trade Union, if any, registered in accordance with the provisions of Section 9.
3. It shall be the duty of the Works Committee to promote measures for securing and
preserving amity and good relations between the employer and workers and, to that end,
to comment upon matters of their common interest or concern and endeavour to
compose any material difference of opinion in respect of such matters.

Grievance Redres sal Comm ittee (Sectio n 4)

1. Every industrial establishment employing twenty or more workers shall have one or
more Grievance Redressal Committees for resolution of disputes arising out of
individual grievances.
2. The Grievance Redressal Committee shall consist of equal number of members
representing the employer and the workers to be chosen in such manner as may be
prescribed.
3. The chairperson of the Grievance Redressal Committee shall be selected from among
persons representing the employer and the workers alternatively on rotational basis
every year.
4. The total number of members of the Grievance Redressal Committee shall not exceed
ten:
 18 Labour Law and Industrial Relations - I

Provided that there shall be adequate representation of women workers in the Gri~vance
Redressal Committee and such representation shall not be less than the proportmn of
women workers to the total workers employed in the industrial establishment.
5. An application in respect of any dispute referred to in sub-section (1) may be filed
before the Grievance Redressal Committee by any aggrieved worker in such manner as
may be prescribed within one year from the date on which the cause of action of such
dispute arises.
6. The Grievance Redressal Committee may complete its proceedings within thirty days of
receipt of the application under sub-section (5).
7. The decision of the Grievance Redressal Committee on any application filed under sub-
section (5) shall be made on the basis of majority view of the Committee, provided
more than half of the members representing the workers have agreed to such decision;
otherwise, it shall be deemed that no decision could be arrived at by the Committee.
8. The worker who is aggrieved by the decision of the Grievance Redressal Committee or
. '·.. whose grievance is not resolved in the said Committee within the period specified in
sub-section (6), may, within a period of sixty days from the date of the decision of the
Grievance Redressal Committee or from the date on which the period specified in sub-
section (6) expires, as the case may be, file an application for the conciliation of such
grievance to the conciliation officer through the Trade Union, of which he is a member,
in such manner as may be prescribed.
9. Where any employer discharges, dismisses, retrenches, or otherwise terminates the
services of an individual worker, any dispute or difference between that worker and his
employer connected with, or arising out of, such discharge, dismissal, retrenchment or
termination shall be deemed to be an industrial dispute notwithstanding that no other
worker nor any Trade Union is a party to the dispute.
10. Notwithstanding anything contained in this Section or Section 53, any worker as is
specified in sub-section (5) may, make an application directly to the Tribunal for
adjudication of the dispute referred to therein after the expiry of forty-five days from the
date he has made the application to the conciliation officer of the appropriate
G~vernrnent for conciliation of the dispute, and on receipt of such application, the
Tnbunal shall have powers and jurisdiction to adjudicate upon the dispute, as the
Tribunal has in respect of the application filed under sub-section (6) of Section 53.
11. The application referred to in sub-section (10) shall be made to the Tribunal before the
expiry of two years from the date of discharge, dismissal, retrenchment or otherwise
termination of service as specified in sub-section (9).

Question s
J. Discuss the functioning of the Works Committee.
2. Explain what do you mean by resolution of disputes by the Grievance Redressal
Committee?
Industrial Relations Code 19

TRADE UNIONS
Registrar of Trade Unions (Section 5)
I. The State Government may, by notification, appoint a person to be the Registrar of
Trade Unions, and other persons as Additional Registrar of Trade Unions, Joint
Registrar of Trade Unions and Deputy Registrar of Trade Unions, who shall exercise
such powers and perform such duties of the Registrar as the State Government may, by
notification, specify from time to time.
2. Subject to the provisions of any order made by the State Government, where an
Additional Registrar of Trade Unions or a Joint Registrar of Trade Unions or a Deputy
Registrar of Trade Unions exercises the powers and performs the duties of the Registrar
in an area within which the registered office of a Trade Union is situated, such
Additional Registrar of Trade Unions or a Joint Registrar of Trade Unions or a Deputy
Registrar of Trade Unions, as the case may be, shall be deemed to be the Registrar in
relation to that Trade Union for the purposes of this Code.

Criteria for Registration (Section 6)

1. Any seven or more members of a Trade Union may, by subscribing their names to the
rules of the Trade Union and by otherwise complying with the provisions of this Code
with respect to registration, apply for registration of the Trade Union under this Code.
2. No Trade Union of workers shall be registered unless at least ten per cent of the workers
or one hundred workers, whichever is less, engaged or employed in the industrial
establishment or industry with which it is connected are the members of such Trade
Union on the date of making of application for registration.
3. Where an application has been made under sub-section (1) for registration of a Trade
Union, such application shall not be deemed to have become invalid merely by reason
of the fact that, at any time after the date of the application but before the registration of
the Trade Union, some of the applicants, but not exceeding half of the total number of
persons who made the application, have ceased to be members of the Trade Union or
have given notice in writing to the Registrar dissociating themselves from the
application.
4. A registered Trade Union of workers shall at all times continue to have not less than ten
per cent of the workers or one hundred workers, whichever is less, subject to a
minimum of seven, engaged or employed in an industrial establishment or industry with
which it is connected, as its members.

Provisions to be Contained in Constitution or Rules of Trade Union

(Section 7)
A Trade Union shall not be entitled to registration under this Code, unless the executive
thereof is constituted in accordance with the provisions of this Code, and the rules of the Trade
Union provide for the following matters, namely -
(a) the name of the Trade Union;
(b) the whole of the objects for which the Trade Union has been established;
 Labour Law and Industrial Relations -I
20

(c) the whole of the purposes for which the general funds of the T~a~e yruon
th: be
applicable, all of which purposes shall be purposes to which sue un s are a u11Y
applicable under this Code;
(d) the maintenance of a list of members of the Trade Union and adeq~te facilities for the
inspection there.of by the office-bearers and members of the Trade Umon;
{e) the admission of ordinary members (irrespective of their craft or category) who s~all be
persons actually engaged or employed in the industrial establishment, und ertaking or
industry, or units, branches or offices of an industrial establis~~nt, as the case may be,
with which the Trade Union is connected, and also the adm1ss1on of such number of
honorary or temporary members, who are not such workers, as are ~ot pennitted under
Section 21 to be office-bearers to form the executive of the Trade Uruon;
(t) the payment of a subscription by members of the Trade Union from such members and
others, as may be prescribed;
(g) the conditions under which any member shall be entitled to any benefit assured by the
rules and under which any fine or forfeiture may be imposed on any member;
{h) the annual general body meeting of the members of the Trade Union, the business to be
transacted at such meeting, including the election of office-bearers of the Trade Union;
f
(i) the manner in which the members of the executive and the other office-bearers of the
Trade Union shall be elected once in a period of every three years and removed, and
filling of casual vacancies;
G) the safe custody of the funds of the Trade Union, an annual audit, in such manner as
may be prescribed, of the accounts thereof, and adequate facilities for the inspection of
the account books by the office-bearers and members of the Trade Union;
(k) the manner in which the rules shall be amended, varied or rescinded; and
(1) the manner in which the Trade Union may be dissolved.

Application for Registration, Alteration of Name and Procedure Thereof

(Section 8)
1. Every application for registration of a Trade Union shall be made to the Reoistrar
b
electronically or otherwise and be accompanied by-
(a) a declaration to be made by an affidavit in such form and manner as may be
prescribed;
(b) copy of the rules of the Trade Union together with a copy of the resolution by the
members of the Trade Union adopting such rules;
(c) a copy ~f the resolution adop!ed _by the me~bers of the Trade Union authorising
the applicants to make an application for registration; and
(d) in the case of a Trade Union, being a federation or a central oroanisation of Trade
Unions, a copy of the resolution adopted by the members of e~ch of the member
Trade Unions, meeting s_eparately, agreeing to constitute a federation or a central
organisation of Trade Umons.
Explanation: F~r the purpo~es of this clause, resolution adopted by the members
of the Trade Union means, m the case of a Trade Union, being a federation or a
Industrial Relations Code
21

central organisation of Trade Unions, the resolution adopted by the

memb ers of
each of the memb er Trade Unions, meeting separately.
2. Where a Trade Union has been in existence for more than one year
before the makin g of
an application for its registration, there shall be delivered to
the Registrar, together with
the application, a general statement of the assets and liabilities of
the Trade Union
prepared in such form and containing such particulars, as may be prescr
ibed.
3. The Registrar may call for further information for the purpose of
satisfying himse lf that
the application complies with the provisions of this Code and the
Trade Union is
entitled for registration under this Code, and may refuse to regist
er the Trade Union
until such information is furnished.
4. If the name under which the Trade Union is proposed to be regist
ered is identical with
that of an existing registered Trade Union or in the opinion of the
Registrar so nearly
resembles the name of an existing Trade Union that such name is likely
to deceive the
public or the memb ers of either Trade Union, the Registrar shall
require the persons
applying for altering the name of the Trade Union and shall refuse to
register the Trade
Union until such alteration has been made.

Registration of Trad e Union and Cancellation Ther eof (Sec

tion 9)
1. The Registrar shall, on being satisfied that the Trade Union has comp
lied with all the
requirements of the provisions of this Chapter in regard to regist
ration, register the
Trade Union by entering in a register, to be maintained in such
form as may be
prescribed, the particulars relating to the Trade Union contained
in the statement
accompanying the application for registration.
2. Where the Registrar makes an order for registration of a Trade Union
, he shall issue a
certificate of registration to the applicant Trade Union , in such
form as may be
prescribed, which shall be the conclusive evidence that the Trade
Union has been
registered under this Code.
3. If the Registrar has issued a certificate of registration to a Trade Union
, he shall enter
the name and other particulars of the Trade Union in a register maint
ained in this behal f
in such form as may be prescribed.
4. Every Trade Union registered under the Trade Unions Act,
1926 havin g valid
registration immediately befor e the commencement of this Code
shall be deemed to
have been registered under this Code:
Provided that such Trade Union shall file with the Registrar a
statement that the
constitution of the executive of the Trade Union is in accordance
with this Code along
with the rules of the Trade Union updated in accordance with
Sectio n 7, and the
Registrar shall amen d his records accordingly.
5. The certificate of registration of a Trade Union may be withd rawn
or cancelled by the
Regi strar, -
(i) on the application of the Trade Union verified in such mann er
as may be prescribed;
or
 Labour Law and Industrial RelatiollS ...1
22
. . . the contravention by the Trade Uni~
(ii) on the infonnation received by him regarding d thereunder or its constitution «.
of the provisions of this Code or the rules ma e
rules; or . below ten per cent oft
(iii) if he is satisfied that the members in a Trade Umon falls otal
workers or one hundred workers, whichever is less: .. . .
, · f e in wntmg spec1fymg the
Provided that not less than sixty days previous ~o ic istration of a Tr
grounds on which it is proposed to cancel the certrficate of reg h . act
.
Union shall be given by the Registrar h T d Union before t e certi6cate
to t e ra e d U .
. than on the app1·cation
registration is cancelled otherwise 1
of the Tra e mon.
·
6. A certificate · · of a Trade umon
of registration · sha11 be cancelled by the Registrar
. where a
Tribunal has made an order for cancellation of registration of such Trade Umon.
7. While cancelling the certificate of registration of a Trad~ Un~~n, the RegiStI': s.
record the reasons for doing so and communicate the same m wntmg to the Trad Uruon
concerned.
Cases for Reference
In 1935, in Re-Indian Steam Navigation Workers Union, 1the Calcutta High Court held that a
Registrar just needs to check that all the technical conditions are being met, not whether it co
be deemed illegal.
Whereas in ACC Rajanka Limestone Quarries Workers Union v. Registrar of Trade Unions,2
the Patna High Court held that it was determined that an appeal might be filed to the High Court
under Article 226 of the Indian Constitution if the Registrar fails to register the trade union within
three months of the application.
Registration for two trade unions by workmen - In Keshoram Rayon Workers' Union v.
Registrar of Trade Unions, 1968,3 it was held that workers in an industrial establishment can
create multiple unions. The Act does not prevent rival unions or mandate notice to existing ones.
A union seeking registration must only comply with Act, Rules and Regulations for Trade Union
registration.
In the cas~ of Tata Electric ComP_anies ?fficers' Guild v. Registrar of Trade Unions (1994),4
the ~ombay High Court ~led t_hat willful d1.sregard of the notification is a requirement for the
Registrar to cancel the registration. The Re~1s~ar cannot cancel the registration on the grounds
that the account statement was not filed earher 1f the trade union provides the ac t t tement
· · nott'fi1cat1on
after rece1vmg · 1rom
t:
the Reg1strar.
• coun s a
In Mumbai Fire Fighters ' Service Union v. Registrar 0 1' Trade , , • 1.1. b •s the
. hC
Bombay H1g ourt heId that where a two-month show cause notice 'J
was t
vmons, mum az,
b h R · trar
to the changed address of the union, amounts to non-compliance of th no sdent Yt e . :gis of
.
Section 1Oand quashed the order of cancellation of registration of tradeeunion.
man atory provisions

1 AJR 1936 Cal 57

2 AIR 1958 Pat 470
1 AIR 1967 Cal 507
4 l994 JLLJ 125 Bom.
s 2oo3 lJLU 1100 Born.
Industrial Relatio11s Code 23

It is important to note that the Trade Unions Act primarily regulates the registration and
recognition of trade unions, and provides for the circumstances under which registration can be
cancelled.

Questions
1. Explain the procedure for application for registration and alteration of name.
2. Explain the procedure for cancellation of registration of Trade Union.
3. Explain the powers of the Registrar for Trade Union.
4. What are the criteria for registration of Trade Union?

Appeal against Non-registration or Cancellation of Registration (Section 10)

1. Any person aggrieved by the refusal of the Registrar to grant registration to a Trade
Union under Section 9 or by cancellation of a certificate of registration under sub-
section (5) of the said section, may within such period as may be prescribed, prefer an
appeal to the Tribunal:
Provided that the Tribunal may entertain the appeal after the limitation prescribed for
preferring the appeal under this sub-section, if the appellant satisfies the Tribunal that
such delay has been caused due to sufficient reason or unavoidable circumstances.
2. The Tribunal may, after giving the parties concerned an opportunity of being heard,
dismiss the appeal or pass an order directing the Registrar to register the Trade Union
and to issue a certificate of registration or set aside the order of cancellation of
certificate of registration, as the case may be and forward a copy of such order to the
Registrar.
Cases for Reference
The Bombay High Court, in Mukand Iron and Steel Works Ltd. v. VG. Deshpande,
Registrar of Trade Unions, Mumbai and another,6 observed that a trade union has the choice to
file an appeal or apply for new registration if the Registrar of Trade Unions cancels or withdraws
its registration. If the appeal is successful, the trade union would continue to be included on the
register as if the decision of cancellation or withdrawal of recognition had never been made. If a
new registration is allowed, it will take effect as of that date. The Registrar loses all authority over
that order once he cancels or withdraws a trade union's registration. The said Act further restrains
the Registrar to evaluate it or rescind it.
Appeals related to trade unions typically arise from disputes, recognition issues, or decisions
made by the Registrar of Trade Unions, and these appeals are often heard in labour courts,
industrial tribunals, or other relevant forums. Here are a few Supreme Court cases that may be
relevant to appeals related to trade unions:
Management of Safdarjung Hospital, New Delhi v. Ku/dip Singh Sethi and Ors. 1- This case
discusses the legality of the recognition of a trade union and the appeal process against such

6
1986 IlLU 290 Born.
7
AIR 1973 SC 2651
24 Labour Law and J11dustr/al Relations -I

recogm·tton
· ·
. The Sup rem e Cou rt clarifie · · 1
d the prmc1p es gov em·mg the rec ogn itio n of trad e unions
in this context. f
· aI
Panm Chan dra Raha v. L1.J
;r,
e Insurance C01poration
· 01,l'Jndi·a8- Wh ile this cas e primarily
dea lt with issues of promotions and seniority, .
it highlights the importance 0 ~ trad e um
con cer nin g employment-related matters on appeals
. It discusses the rights of trad e uru
interests of their mem ber s. ons to rep rese nt the
Dena Nath and Ors. v. State of Haryana
and Ors. 9- Thi s cas e pertains to the rec ogn
trad e uni ons in the con tex t of public emp itio n of
loyment. It emp hasises the importance of app eals rela
to recognition decisions. ted

Communication to Trade Union an

d Change in its Registration Partic
(Section 11 ) ulars

1. All communications and notices

to a registered Tra de Union shall be
ma nne r as ma y be prescribed, to the sen t, in such
address of the head office of the Tra de
ent ere d in the register maintained by the Un ion as
Registrar.
2. The Tra de Un ion shall inform the
Registrar if the members of suc h Tra
bel ow ten per cent of total workers or de Un ion falls
one hundred workers, whichever is less
3. The Tra de Union shall inform the Reg .
istrar of any change in the particulars
in its application for registration and in giv en by it
its constitution or rules, in suc h ma nne
be prescribed. r as may

Incorporation of a Registered Tra

de Union (Section 12)
Eve ry registered Tra de Un ion shall
be a body corporate by the nam e und
registered , and shall hav e perpetual suc er wh ich it is
cession and a common seal wit h power
bot h mo vab le and immovable proper to acquire and hold
ty and to contract, and shall by the said
sued. nam e sue and be

Certain Acts No t to Apply to Regis

tered Trade Unions (Section 13)
The provisions of the following Acts,
nam ely -
(a) The Societies Registration Act, 1860;
(b) The Cooperative Societies Act, 1912;
(c) The Multi-State Cooperative Societies Act, 200
2;
(d) The Com pan ies Act, 2013; and
(e) any oth er corresponding law relating to cooperative C
societies for the time b . . I:'.
in any Sta te, shall not apply to any reg .
istered Trade Uni. on and the registrem
t'
g m 1orce f
suc h Tra de Un ion under any of the afo
rementioned Acts shall be void. a ton of any

s Al R J 995 SC 2256
9 AIR J 980 SC 2049
Industrial Relations Code 25

Recognition of Negotiating Union or Negotiating Council (Section 14)

1. There shall be a negotiating union or a negotiating council, as the case may be, in an
industrial establishment having registered Trade Union for negotiating with the
employer of the industrial establishment, on such matters as may be prescribed.
2. Where only one Trade Union of workers registered under the provisions of this Chapter
is functioning in an industrial establishment, then the employer of such industrial
establishment shall, subject to such criteria as may be prescribed, recognise such Trade
Union as sole negotiating union of the workers.
3. If more than one Trade Union of workers registered under this Code are functioning in
an industrial establishment, then the Trade Union having fifty-one per cent or more
workers on the muster roll of that industrial establishment, verified in such manner as
may be prescribed, supporting that Trade Union shall be recognised by the employer of
the industrial establishment, as the sole negotiating union of the workers.
4. If more than one Trade Union of workers registered under this Code are functioning in
an industrial establishment, and no such Trade Union has fifty-one per cent or more of
workers on the muster roll of that industrial establishment, verified in such manner as
may be prescribed, supporting that Trade union, then, there shall be constituted by the
employer of the industrial establishment, a negotiating council for negotiation on the
matters referred to in sub-section ( 1), consisting of the representatives of such registered
Trade Unions which have the support of not less than twenty per cent of the total
workers on the muster roll of that industrial establishment so verified and such
representation shall be of one representative for each twenty per cent and for the
remainder after calculating the membership on each twenty per cent.
5. Where any negotiation on the matters referred to in sub-section (1) is held between an
employer and a negotiating council constituted under sub-section (4), consequent upon
such negotiation, any agreement is said to be reached, if it is agreed by the majority of
the representatives of the Trade Unions in such negotiating council.
6. Any recognition made under sub-section (2) or sub-section (3) or the negotiating
council constituted under sub-section (4) shall be valid for three years from the date of
recognition or constitution or such further period not exceeding five years, in total, as
may be mutually decided by the employer and the Trade Union, as the case may be.
7. The facilities to be provided by industrial establishment to a negotiating union or
negotiating council shall be such as may be prescribed.

Objects of General Fund, Composition of Separate Fund and Membership

Fee of Trade Union (Section 15)
1. The general funds of a registered Trade Union shall not be spent on any objects other
than such objects as may be prescribed.
2. A registered Trade Union may constitute a separate fund, from contributions separately
levied for or made to that fund, from which payment s may be made, for the promotion
of the civic and political interests of its members, in furtherance of such objects as may
be prescribed.
 26 Labour Law and Industrial Relations - I

.
3 • N o member shall be compelled to contnbute • ted under sub-section (2)
to the fund constttu fr
and a member who does not contribute to the said fund shall not be excluded om any
benefits of the Trade Union, or placed in any respect either directly or ind irectly under
any disability or at any disadvantage as compared with other members of the Trade
Union ( except in relation to the control or management of the said fund) by reason of
his not contributing to the said fund; and contribution to the said fund shall not be made
a condition for admission to the Trade Union.
4. The subscriptions payable by the members of the Trade Union shall be such as may be
prescribed.
In MT. Chandrasenan v. Sukumaran, 10 the Supreme Court held that a member ca~o~ be
regarded as a trade union member if the subscription fee is not paid However, subscnptions
cannot be rejected on the basis of a reason that prevents membership.
In Bokajan Cement Corporation Employees Union v. Cement Corporation of India, 11 the
Supreme Court held that membership in the union did not end immediately upon loss of
employment.

Questions
I. Explain the procedure for appeal against non-registration or cancellation of Registration
-- of Trade Union.
2. Discuss the recognition of negotiating union.
3. What are the objects of General Fund under the Trade Union Act?

Immunity from Civil Suit in Certain Cases (Section 16)

I. No suit or other legal proceeding shall be maintainable in any civil court against any
registered Trade Union or any office-bearer or member thereof in respect of any act
done in contemplation or furtherance of an industrial dispute to which a member of the
Trade Union is a party on the ground only that such act induces some other person to
break a contract of employment or that it is an interference with the trade, business, or
employment of some other person or with the right of some other person to dispose of
his capital or of his labour as he wills.
2. A registered Trade Union shall not be liable in any suit or other legal proceeding in any
civil court in respect of any tortuous act done in contemplation or furtherance of an
industrial dispute by an agent of the Trade Union if it is proved that such person acted
without the knowledge of, or contrary to express instructions given by, the executive of
the Trade Union.

10 AIR 1974 SC I 789

11 Appeal (Civil) 2419 of 200 I

j
 l11dustr/a/ Relations Code 27

Cases for Reference

In K. Prabhakaran and Ors. v. P. Jayarajan and Ors.,12 the Supreme
Court emphasised the
immunity granted to trade unions and their office-bearers under Sectio
n 23 of the ~rade Unions
Act, which states that no suit or other legal proceedings shall be mainta
ined in any civil court
against any registered trade union or its office-bearers in respect of any
act done in contemplation
or furtherance of a trade dispute.
In Municipal Corporation ofDelhi v. Kanhaya Lal Sethi, 13 the Suprem
e Court discussed the
immunity provided to trade unions in civil proceedings under Section 23
of the Trade Unions Act.
The Supreme Court reaffirmed that trade unions and their office-beare
rs are protected from legal
actions for acts done in contemplation or furtherance of a trade dispute.
In Hindustan Times Ltd. v. Ramanandan Prasad, 14 the Supreme
Court reiterated the
protection granted to trade unions and their office-bearers from civil liabilit
y for acts undertaken
in furtherance of a trade dispute, as per the provisions of Section 23 of
the Trade Unions Act.
In S. Anba/agan v. B. Devarajan and Ors., 15 the Supreme Court discus
sed the immunity of
trade unions and office-bearers from civil actions. The Supreme Court
emphasised the importance
of protecting trade unions and their members from legal proceedings
for acts committed during
the course of trade disputes.
In these cases, the Supreme Court of India has upheld and clarified the
immunities provided
to registered trade unions and their office-bearers under the Trade Union
s Act, particularly in civil
proceedings. These immunities are essential to ensure that trade unions
can carry out their
activities in pursuit of the welfare and rights of workers without fear
of legal repercussions, as
Jong as their actions are in the context of trade disputes and done in good
faith.
Criminal Conspiracy in Furtherance of Objects of Trade Unio
n (Section 17)
No office-bearer or member of a registered Trade Union shall be liable
to punishment under
sub-section (2) of Section 120B of the Indian Penal Code in respec
t of any agreement made
between the members for the purpose of furthering any such object
of the Trade Union as is
specified in Section 15, unless such agreement is an agreement to comm
it an offence.
Criminal conspiracy is defined in Section 120A of the Indian Penal Code
of 1860 as follows:
When two or more people agree to do something or make it happen:
1. A prohibited act;
2. An Act that is not committed via unlawful methods; such as a contra
ct is referred to as a
criminal conspiracy.
The Code grants registered trade unions immunity. Nevertheless,
this immunity is only
applicable with regard to the legal agreements made by trade union memb
ers for the promotion of
legitimate trade union purposes.

12
AIR 2018 SC 1665
13
AIR 1981 SC 278
14
AIR 2002 SC 167
IS AIR 1986 SC 244
 28 Ii dustrial Relations - I
Labour Law and n
Cases for Reference
I
n Bhanudas Shivnath Patil v. State of Maharashtra, 16 the Supreme Court held that office..
. furtherance of
bearers of a trade union are protected from criminal prosecution for acts
trad d' • done m . Th c a
e ispute, proVId ed they act in good faith and within the scope ofthetr • 1 gal duties. e oun
e. f the Trad
reaffirmed the immunity granted to trade union office-bearers under
Section 17 0 e
Unions Act.
•• ,
I n B lJU .1anata Dal v. Di/lip Kumar Sahu, 17 the Supreme Court d'iscussed the. immunity of
regiStered trade unions and their office-bearers from criminal liability for
furth
acts done m erance
Of. a trade di spute. The Supreme .
Court emphasised that as long as the act'ions are
. related to a trade
dispute and are done in good faith, immunity under the Trade Unions Act
applies.
In Rajasthan State Road Transport Corporation v. Krishna Kant, 18
th: ~upreme ~ourt
examined the issue of whether a trade union leader could be prosecuted
for cnmm_al cons~iracy
for his actions in organising a strike. The Court ruled that if the actions
were earned out m the
.. pursuit of a trade dispute and in good faith, immunity from criminal prosec
ution would apply•
These cases illustrate that trade unions and their office-bearers are grante
d immunities in
criminal proceedings under the Trade Unions Act, as long as their actions
are related to ~ade
disputes and are conducted in good faith. This protection is essential to
ensure that trade umons
can effectively represent the interests of their members without the threat
of criminal liability for
legitimate trade union activities.

Ques tions
1. Explain the Civil and Criminal Immunities of registered Trade Union
under the
Industrial Relations Code 2020.
2. Under what circumstances can the Members/Trade Union claim immun
ity from Civil
and Criminal Proceedings?
3. Discuss the Landmark Judgments which uphold the Civil and
Criminal Immunity
attributed to the registered Trade Union.

Othe r Provisions of the Code in Continuation

Enforceability of Agreements (Section 18)
Notwithstanding anything containe~ in any other _law for the time
being in force, an
agreement between the members of a ~eg1stered Trade Umon sh~ll not be
void or voidable merely
by reason of the fact that any of the obJects of the agreement are m restrai
nt of trade:
Provided that nothing in this section shall enable any civil court to
. . entert .
roceedings mstituted for the purpose of en1orcc •
mg or recove
.
rmg damag
am any 1ega1
P · • • h' es for th b h f
h b
agreem ent concerrung the c~nd1tions on w 1c any mem ers of a Trade e reac o any
Union shall or shall not
sell their goods, transact business, work, employ or be employed.

16 2010 9SCC 635

11 2009 1sec 681

18 1995 5SCC 75
J,idustrial Relations Code 29

Right to Inspect Books of Trade Union (Section 19)

The books of account of a registered Trade Union and the list of members thereof shall
be
open to inspection by an office-bearer or member of the Trade Union at such times as may
be
provided for in the rules of the Trade Union.

Rights of Minor to Membership of Trade Union (Section 20)

Any person who has attained the age of fourteen years and is employed in a nonhazardous
industry may be a member of a registered Trade Union subject to any rules of the Trade
Union,
and may, subject to as aforesaid enjoy all the rights of a member and execute all instruments
and
given all acquaintances necessary to be executed or given under the rules.

Disqualification of Office-bearers of Trade Unions (Section 21)

1. A person shall be disqualified for being chosen as, and for being, a member of the
executive or any other office-bearer of a registered Trade Union, if-
(i) he has not attained the age of eighteen years;
(ii) he has been convicted by a court in India for any offence involving moral turpitude
and sentenced to imprisonment unless a period of five years has elapsed since his
release;
(iii) the Tribunal has directed that he shall be disqualified for being chosen or for being
office-bearer of a Trade Union for a period specified therein.
2. No member of the Council of Ministers or a person holding an office of profit (not
being an engagement or employment in an establishment or industry with which the
Trade Union is connected) in the Union or a State shall be a member of the executive or
other office-bearer of a Trade Union.
Adjudication of Disputes of Trade Unions (Section 22)
l . Where a dispute arises betwee n-
(a) one Trade Union and another; or
(b) one or more workers who are members of the Trade Union and the Trade Union
regarding registration, administration or management or election of office-bearers
of the Trade Union; or
(c) one or more workers who are refused admission as members and the Trade Union;
or
(d) where a dispute is in respect of a Trade Union which is a federation of Trade
Unions and office-bearer authorised in this behalf by the Trade Union, an
application may be made in such manner as may be prescribed to the Tribunal
having jurisdiction over the area where the registered office of the Trade Union or
Trade Unions is located for adjudication of such disputes.
2. No civil court other than the Tribunal shall have power to entertain any suit or other
proceedings in relation to any dispute referred to in sub-section (1).
30
"
Labour Law and J11dustrial Relations_ 1
I

Proportion of Office-bearers to be Connected with Ind ustry (Section 23)

1· Not less than one-half of the total number of the office-bearers of every regisltered :rade
• ·
Umon m an unorganised sector shall be persons actually engaged or emp oyed in an
establishment or industry with which the Trade Union is connected:
Provided that the appropriate Government may, by special or gen7ral order, declare that
the provisions of this section shall not apply to any Trnde Umon or class of Trade
Unions specified in the order.
Explanation: For the purposes of this sub-section,. ''un~rganised. sector" means any f
sector which the appropriate Government may, by notification, specify.
2. Save as otherwise provided in sub-section (1), all office-bearers of a registered Trade
Union, except not more than one-third of the total number of the. office-bear~rs or five,
whichever is less, shall be persons actually engaged or employed m the estabhshment or
industry with which the Trade Union is connected. . I
Explanation: For the purposes of this sub-section, an employee who has retrred or has
been retrenched shall not be construed as outsider for the purpose of holding an office in
a Trade Union.
Change of Name, Amalgamation, Notice of Change and its Effect
(Section 24)
1. Any registered Trade Union may, with the consent of not less than two-third of the total
number of its members and subject to the provisions of sub-section (3), change its name.
2. Any two or more registered Trade Unions may be amalgamated in such manner as may
be prescribed.
3. Notice in writing of every change of name and of every amalgamation signed in the case
of a change of name, by the Secretary and by seven members of the Trade Union
changing its name, and in the case of an amalgamation, by the Secretary and by seven
members of each and every Trade Union which is a party thereto, shall be sent to the
Registrar and where the head office of the amalgamated Trade Union is situated in a
different State, to the Registrar of such State in such manner as may be prescribed.
4. If the proposed name is identical with that by which any other existing Trade Union has
been registered or, in the opinion of the Registrar, so nearly resembles such name as to
be likely to deceive the public or the members of either Trade Union the Registrar shall
refuse to register the change of name. '
5. Save as provid~d in s~b-section (4), the Registrar shall, if he is satisfied that the
provisions of this CO?e m resp~ct of change of name have been complied with, register
the change of name m the register referred to in sub-section (3) of Section , and the
9
change of name shall have effect from the date of such registration.
6. The Registrar o~ the S~te in .which the head office of the amalgamated Trade Union is
Sl·tuated shall, 1f he 1s satisfied . that. the provisions of th'1s Code m . respect of
ama lgamation have been co.mp 11ed with and that the Trade U • fi d th by is
· · d s · . mon orme ere
ti
~
entitled to reg1strat1on un er ectton 9, r~1ste~ the Trade Union and the amalgamation
shall have effect from the date of such registration.
Industrial Relations
Code 31
7. The change in . d Union
the name o~ a regi
ste~ed :: :e c: iv e an shall not affect any n o ts. or
•oh
obligations of the
Trade Union or re y legal proceeding
the Trade Union, n by or agadmst
and any legal pr er h. h
commenced by or oceeding w ic b m • ht have be en continue or
against it by its fo i!ntinued or comm
rmer name may enced b y or
against it by its new ec
A n amalgamatio na m e. . d
8. of any such Tra n o f two or more registered T~a e U . hall not prejudice
any right
de Unions or any ri m
ght of a creditor of ons s
any o f them.
Dissolution (Se
ction 2 5)
When a registered
Trade Union is di . . •
l. ~ember_s and ssolved, not~ce o f ev en
th
by the S~cr~aT?' if th
dissolution, be sent
the dissolution has to t e egis
e
~ • an d
J:~!; e
~ :~ :i :~ e: ~ d
di ~ s~
~~t~~
lu
f~
ti o: ;; :: :: e!b ; :f th
he is sa t~ fi ed th
e

the dissolution shal been effected m accor ance wi·t h the rules o f the T ra de Union at
l have effect from , an d
Where the dissolut the date o f such re . .
2 ion of a registered g1 strat1on.
• the Trade Uni
on do not provide Trade Union has
been registered an
dissolution, the Reg for the distributio d th ~ r~les o f
istrar shall divide th n o f funds o f the_
e funds amongst th T ra de m on on
may be prescribed. e members m su ch
manner as
Annual Returns
(Section 2 6 )
1. Every registered
Trade
(a) forward annual Union sh a\ 1 -
ly to the Registrar
such manner and , on or before such : .
by such person, date, in such form
containing particul as may be prescr , audited m
ars of all receipts ibed, a general
Union during the and expenditure st at em en t
year ending on th o f su ch registered
e 31st day o f Dec
prescribed date, an
d of the assets and ember next pr ec ed T ra de
31st day of Decem liabilities o f the T in g su ch
ber; ra de U ni on existi
(b) along with the ng o n su ch
general statement
statement showing referred to in clau
changes of office-b se (a), forward to
year to which such earers made by th th e Registrar a
general statement e T ra de U ni on du
of the Trade Union refers, together al ri ng th e
corrected up to the so with a copy o
2. A copy of ever date o f dispatch th f th e ru le s
y alteration made er eo f to th e Regis
the Registrar within in the rules o f a re tr ar.
fifteen days o f the gistered T ra de U ni
making o f the alte on shall b e se nt to
3. For the purpos ration.
e o f examining th
section (1 ), and su e documents refe
b-section (2), the rred to in clauses
general or specia Registrar or any (a ) an d (b ) o f su
l order, may at officer authorised b-
registration, accoun all reasonable ti b y hi m , by
t books, registers mes inspect the
its_ registered office and other documen certificate o f
or may require th ts, relating to a T
this behalf, but no eir production at ra de U ni on , at
such place shall be su ch pl ac e as he
the registered office at a distance o f m m ay specify in
o f such Trade Uni or e th an fifteen ki
on. lo metres fr om
Recognition of T
rade Unions a t
Central and Sta
l. Where the Cen te Level (Sectio
tral Government is n 27)
Trade Union or fe o f the opinion that
deration o f Trade it is necessary or
Unions is to be re expedient th at a
cognised as Centr
al T ra de U ni on
 32 Labour Law and Industrial Relations - I

at the Central level, it may recognise such Trade Union or federation of Trad~ Unions as
Central Trade Union in such manner and for such purpose, as may be prescnbed, and if
any dispute arises in relation to such recognition, it shall be decided by such authority in
such manner as may be prescribed by the Central Government.
2. Where the State Government is of the opinion that it is necessary or expedient that a
Trade Union or federation of Trade Unions is to be recognised as State Trade Union at
the State level, it may recognise such Trade Union or federation of Trade Unions as
State Trade Union in such manner and for such purpose, as may be prescribed, and if
any dispute arises in relation to such recognition, it shall be decided by such authority in
such manner as may be prescribed by the State Government.

Questions
1. What is enforceability of Agreements under the Trade Union Act?
.. 2. What are the grounds for disqualification of office bearers under the Trade Union Act?
3. When can a Tribunal Adjudicate disputes under the Trade Union Act?
4. Explain the following as per Trade Union Act:
. (i) Change in Name
~ (ii) Amalgamation of Trade Union
(iii) Notice of Change and its effect
5. What is the procedure for dissolution of Trade Union?
6. Explain the Annual Returns procedure under the Trade Union Act.
7. When can Trade Unions be recognized at State and Central level?
♦♦♦
 I Module
INDUSTRIAL
RELATIONS: THE
INDUSTRIAL DISPUTES

Structure
2.1 'Industr y' - Conceptual Analysis
2.2 Standin g Orders
2.3 Mechanism for Resolution of Industrial Disputes
2.4 Concept of 'Workm an' /Worke r

Introduction
Historical Background of Industrial Disputes Act, 1947
The first enactment dealing with the settlement of industrial disputes was the Employers' and
Workmen's Disputes Act, 1860. This Act lacked provisions beneficial to the workers and was
therefore replaced by the Trade Disputes Act, 1929. The Act of 1929 contained special provisions
regarding strikes in public utility services and general strikes affecting the community as a whole.
The main purpose of the Act, however, was to provide a settlement mechanism to bring about
peaceful and amicable settlement of industrial disputes.
The advent of the emergency declared due the Second World War resulted in the
development of the industrial laws in India. Certain Rules of Defence of India during the said
emergency phase gave draconic powers to compulsorily refer industrial disputes to conciliation or
adjudication. The said Rules also were not favourable for workmen and the employer. Therefore,
in need of bringing about the changes in laws to safeguard the rights of workmen, the Industrial
Disputes Act, 1947 was enacted as a full proof law covering various aspects. The provisions of
this Act, as amended from time to time, have furnished the basis on which industrial
jurisprudence in India is premised.
Industrial Disputes Act, 1947 provided for machinery for peaceful resolution of disputes
between the workmen, employees and employer and to promote harmonious relation between
employers and workmen. The Act now has become a part of the Industrial Relations Code 2020
and aims to provide process of dispute resolutions in amicable manner maintaining harmony and
peace for cordial relations between workmen and employer. The Code specifies important
provisions relating to strike, lockout, layoff, retrenchment, closure, etc.
 34 Labour Law and Industrial Relations - I

5t
Object and Significance of Provisions of Industry under the lndu rial
Relations Code
The objective of the Industrial Disputes provision is to secure industrial p~ace a~d h~nnony
by providing machinery and procedure for the investigation and settlement of mdustr1al dispu~es
nd ~0rd1al
by negotiations. It ensures progress of industry by bringing about harmony _a
relationship between the employers and employees. In a nutshell, the In~ustnal ~1sputes
Provisions Act as a benevolent measure, which seeks to pre-empt industrial conflicts, provides the
mechanism of dispute resolution and promotes congenial environment between the employer,
employees and workmen.
The Hon'ble Apex Court, in Workmen, Hindustan Lever Limited v. Hindustan Lever
Limited, 1 held that by interpretative process, Courts must strive to_ reduce the field of ~onflict,
expand the area of agreement and show its preference for upholding agreements sanctified by
mutuality and consensus in larger public interest, namely, to eschew industrial strife,
confrontation and consequent wastage.

(p) "industry" means any systematic activity carried on by cooperation between an

employer and worker (whether such worker is employed by such employer directly or
by or through any agency, including a contractor) for the production, supply or
distribution of goods or services with a view to satisfy human wants or wishes (not
being wants or wishes which are merely spiritual or religious in nature), whether or
not,-
(i) any capital has been invested for the purpose of carrying on such activity; or
(ii) such activity is carried on with a motive to make any gain or profit, but does not
include - institutions owned or managed by organisations wholly or substantially
engaged in any charitable, social or philanthropic service; or
(iii) any activity of the appropriate Government relatable to the sovereign functions of
the appropriate Government including all the activities carried on by the
departments of the Central Government dealing with defence research atomic
energy and space; or '
(iv) any domestic service; or
(v) any other activity as may be notified by the Central Government.
Explanation: Prior to the enactment of the Industrial Relations Code, 2020, the definition of
• d th
industry was explained by the . Supreme . upon
. Court .d examination of the said defin·t·
1 ton m ep
1
and put forth a com~rehens1ve ana ys1s settmg as1 e the ambiguity arisen in the past by laying
down the triple test m the case of Bangalore Water Supply and Sewerage Board v. A Rajiappa2
(h ereinafter •referred to as Bangalore Water Supply case). The Supreme Court ft .d .
· · · d •• hi h I d . a er cons1 enng
various previous 3ud1c1al ec_1S1ons w c ea to uncertam1!' of declaring a workplace as industry
or not an industry evolved with a new concept of the tenn "mdustry".

, l984 1 sec 728

2 AIR 1978 SC 548
 Industrial Relations: The Industrial Disputes 35

1. Sovereign Functions
Sovereign Functions - strictly understood, i.e., maintenance of law and order,
legislative
functions and judicial function. Even in departments discharging sovereign functio
ns, if there are
units which are industries and they are substantially severable, then they can
be considered to
come within Section 2G) (Bangalore Water Supply case). If a department
of a municipality
discharged many functions, some pertaining to "industry" and other non-industria
l activities, the
predominant function of the department shall be the criterion for the purposes of
the Act. 3
2. Municipalities
Following departments of the municipality were held to be "industry": (i) Tax,
(ii) Public
Conveyance, (iii) Fire Brigade, (iv) Lighting, (v) Water Works, (vi) City
Engineers, (vii)
Enforcement (Encroachment), (viii) Sewerage, (ix) Health, (x) Market, (xi)
Public Gardens,
(xii) Education, (xiii) Printing Press, (xiv) Building and (xv) General Admin
istration. If a
department of a municipality discharges many functions some pertaining
to industry and
others non-industrial, the predominant function of the department shall be the
criterion for the
purpose of the Code.
I 3. Charitable Institutions
I These fall into three categories:
(a) Those that yield profit, but the profits are not siphoned off for altruistic purpos
es;
(b) Those that make no profit but hire the service of employees as in any other
business, but
the goods/services which are the output, are made available at a low or no cost
to the
indigent poor; and
(c) Those that are oriented on a humane mission fulfilled by men who work,
not because
they are paid wages, but because they share the passion for the cause and derive
job
satisfaction.
The first two categories are industries, but not the third, on the assumption
that they all
involve cooperation between employers and employees.
4. Hospitals
In State of Mumbai v. Hospital Mazdoor Sabha,4 the Supreme Court held
the State is
carrying on an 'undertaking' within Section 20) when it runs a group of hospita
ls for the purpose
of giving medical relief to the citizens and for helping to impart medical educat
ion. The Court
observed as follows:
• An activity systematically or habitually undertaken for the production or distrib
ution of
goods or for the rendering of material services to the community at large or
a part of
such community with the help of employees is an 'under taking '.
• It is the character of the activity in question which attracts the provisions of
Section 2(j),
who conducts the activity and whether it is conducted for profit or not, do not
make a
material difference.

3
Corporation ofCity ofNagpur v. Employees, AIR 1960 SC 675
4
AIR 1960 SC 610
 36
Labour Law and Industrial Relations - I

Thus, activities that have no commercial implicatio

ns, such as hospitals carried on with
philanthropic motives, would be covered by the expr
ession 'undert~king' • T~e me_re fact that
Government runs such activity is immaterial. In case
an activity is industry tf carried on by a
private person, it would be so, even if carried on by the
Government.
In Management of Safdarjung Hospital v. Ku/dip Sing 5
h, it was held that a place ?ftreatment
of patients which run as a department of the governme
nt was not an industry because 1t was a_ part
of the functions of the government. Charitable hosp
itals run by Government or even pnvate
associations cannot be included in the definition of
industry because they have not embarked
upon economic activities analogous to trade or business.
If hospital, nursing home or a dispensary
is run as a business in a commercial way, there may be
elements of industry.
In Dhanrajgiri Hospital v. Workmen, 6 the main activ
ity of the hospital was imparting of
training in nursing and the beds in the hospital were mean
t for their practical training. It was held
not to be an industry, as it was not carrying on any
economic activity in the nature of trade or
business.
In Bangalore Water Supply v. A. Rajappa,1 the
Supreme Court overruled Safdarjung
I
Hospital and Dhanrajgiri Hospital cases, and approved
the law laid down in Hospital Mazdoor
Sabha case. It was held that hospital facilities are
surely services and hence industries. The
government departments while undertaking welfare
activities cannot be said to be engaged in
discharging sovereign functions and hence outside the
ambit of Section 2G) of the Act.
Therefore, a charitable hospital run by a private trust,
offering free services and employing a
permanent staff is an industry as there is a systemati
c activity, a cooperation between employer
and employees and rendering of services which satis
fies human wants and wishes. Further, the
services of employees are hired as in any other business.
5. Legal Firm
In National Union of Commerciai Employees v. MR.
Meher, 8 it was held that a solicitor's
firm is not an industry, although specifically considere
d, it is organised as an industrial concern.
The <?~urt held that ~ person fo~lowing a lib~ral prof~
ssion does not carry on his profession in any
intelhg1ble s:ns e ~1th t~e active ~oo~erat~on of ~s
employees, and the principal/sole capital\
whic h he bnng s mto his profess10n ts his special
and peculiar intellectual and educational
equipment.
Subsidiary work whic~ is purely_ incidental type and
which is intended to assist the solicitor
in doin g his job has no direct relation to the profe
. ssion al service ultimate} d d
solicitor. Ther e ts, no doud.bt, a kin_d of cd~operatl1•0~ b y ren ere by the
etween the solicitor and his employees, but
that co-operation has no rrect or imme iate re at1on
to the advice or service whic h the solicitor
rend ers to his client.

s AIR 1970 SC 1406

6 AIR 1975 SC 203 2

1 AIR J 978 SC 548

s AIR 1962 SC l0 80
 Industrial Relations: The Industrial Disputes 37

However, this was overruled by Bangalore Water Supply case,9 wherein it was held that in
view of the infrastructure of the offices of professional persons, the contribution to the success of
the institution comes not merely from the professional or specialist but from all those whose
excellence in their respective spheres makes for total proficiency.
6. Clubs
A restricted category of professions, clubs, cooperatives and even Gurukulas may qualify for
exemption if, in simple ventures, substantially and going by the dominant nature criterion
substantively, no employees are entertained, but in minimal matters, marginal employees are
hired without destroying the non-employee character of the unit. But larger clubs are "industry"
(as per Bangalore Water Supply case).
7. Universities, Research Institutions, etc.
As regards institutions, if the triple tests of systematic activity, cooperation between
employer and employee and production of goods and services were to be applied, a university, a
college, a research institute or teaching institution will be "industry". The following institutions
were held to be "industry": Ahmedabad Textile Industries Research Association, Tocklai
Experimental Station, Indian Standard Institute, and Universities. However, Physical Research
Laboratory, Ahmedabad was held not to be an industry by the Supreme Court10 since it is carrying
on research not for the benefit of others, and moreover, it is not engaged in commercial or
, industrial activity.
8. Voluntary Services
If in a pious or altruistic mission, many employ themselves free or for small honoraria or like
return, mainly drawn by sharing in the purpose or cause such as lawyers volunteering to run a free
legal services clinic or doctors serving in their spare hours in a free medical centre or ashramites
working at the bidding of the Holiness, divinity or Central personality and the services are
supplied free or at a nominal cost and those who serve are not engaged for remuneration or on the
basis of master and servant relationship, then the institution is not an industry even if stray
servants manual or technical are hired. Such eleemosynary or like undertakings alone are
exempted (Bangalore Water Supply case).
Following are held to be "industry": Cooperative Societies, Federation of Indian Chamber of
Commerce, Company Carrying on Agricultural Operations, Bihar Khadi Gramodyog Sangh,
Indian Navy Sailors' Home, Panchayat Samiti, Public Health Department of the State
Government, Forest Department of Government, Zoo; Primary Health Centres, and Indian
Institute of Petroleum.
Some other instances of 'Industry' are: Rajasthan Cooperative Credit Institutions Cadre
Authority [1985 Lab IC 1023 (Raj.)], a trust for promoting religious, social and educational life
but also undertaking commercial activities, MP Khadi and Village Industries Board, Housing
Board, Dock Labour Board, Management of a private educational institution. 11

9
Supra note 7
JO Physical Research Laborator y V. K.G. Sharma (1997) 4 sec 257
11
R.C.K. Union v. Rajkumar College (1987) 2 LLN 573
38
Labour Law and Industrial Relations - I

But the following are held to be not '"Industry":

Posts and Telegra~hs Department, 12. Telecom
Dep artm ent, 13 Central Institute of Fisheries 14
Construction and Maintenance of National a nd
Stat e Hig hwa ys, 15 and Trade Unions. 16 ,
Hen ce, the Supreme Court observed that prof
essions, clubs, educational. institutions,
coope~atives, research institutes, charitable proj
the tnpl e tests listed in ( 1), ects and other kindred adv :ntu r~, if they ~Ifill
cannot be exempted from the scope of Section 2
cate gory of professions, clubs, cooperatives and G). A re~tricted
gurukulas and research labs, may qual.ify. for
exem ptio n if, in simple ventures, substantially
and going by the dominant nature cnter~on,
substantively, no employees are entertained but
in minimal matters, marginal employees are hired
with out destroying the non-employee character of
the unit.
(q) ''industrial dispute" means any dispute
or difference between employers and
employers or between employers and workers or
between workers and workers which is
connected with the employment or non-employm
ent or the terms of employment or with
the conditions of labour, of any person and inclu
des any dispute or difference between
an individual worker and an employer connecte
d with, or arising out of discharge,
dismissal, retrenchment or termination of such work
er;
(r) "industrial establishment or undertaking
" means an establishment or undertaking in
whi ch any industry is carried on:
Provided that where several activities are carried
on in an establishment or undertaking
and only one or some of such activities is or are an
industry or industries, the n-
(i) if any unit of such establishment or undertaki
ng carrying on any activity, being an
industry, is severable from the other unit or
units of such establishment or
undertaking which is not carrying on or aiding the
carrying on of any such activity,
such unit shall be deemed to be a separate industria
l establishment or undertaking;
(ii) if the predominant activity or each of the pred
ominant activities carried on in such \
establishment or undertaking or any unit thereof
is an industry and the other
activity or each of the other activities carried
on in such establishment or 1
undertaking or unit thereof is not severable from
and is, for the purpose of carrying
on, or aiding the carrying on of, such predominant
activity or activities, the entire
establishment or undertaking or, as the case may
be, unit thereof shall be deemed to
be an industrial establishment or undertaking.

Dis put e
A dispute means a disagreement between the emp
loyer and the employee or between the
emp loye r and the workmen about some issue.
The existence of a dispute or difference between
the parties is central to the definition of indu
strial ~isp~te. Ordinarily, a dispute or differenc
exis ts whe n workmen mak~ demand and th~ e
s~me 1s ~e~ected by the employer. However, the
dem and should be such which the employer 1s
m a position to fulfill. The dispute or difference

12 U. . n ofIndia v. Labo ur Court (1984) 2 LLN 577

mo Tele hone s Canteen Employees Association v. Unio
13
Bom bay 'P n ofIndia
14 p Bose v. Dire ctor, C.I.F ., 198 6 L b IC 1564
a
• . b K !dip Singh and Anr, 1983 Lab IC 83
is State ofPun1a v. u
16 RMS v. K.B. Wagh, 1993 (2) CLR
l 059
 Industrial Relations: The Industrial Disputes 39

should be fairly defined and of real substance and not a mere personal quarrel or a grumbl
ing or
an agitation. The term "industrial dispute" connotes a real and substantial difference having
some
element of persistency, and likely, and if not adjusted, to endanger the industrial peace
of the
community. An industrial dispute exists only when the same has been raised by the workme
n with
the employer. A mere demand to the appropriate Government without a dispute being raised
by
the workmen, with their employer regarding such demand, cannot become an industrial dispute 17
.
However, in Mumbai Union ofJournalists v. The Hindu, 18 the Supreme Court observed
that for
making reference under Section 10, it is enough if industrial dispute exists or is apprehended
on
the date of reference. Therefore, even when no formal demands have been made by the employ
er,
industrial dispute exists if the demands were raised during the conciliation proceedings. When
an
industrial dispute is referred for adjudication, the presumption is that, there is an industri
al
dispute. 19
Unless there is a demand by the workmen and that demand is not complied with by
the
management, there cannot be any industrial dispute within the meaning of Section 2(k).
Mere
participation by the employer in the conciliation proceedings will not be sufficient to be termed
as
an industrial dispute. 20

Parties to the Dispute

Most of the industrial disputes exist between the employer and the workmen, and the
remaining combination of persons who can raise the dispute has been added to widen the scope
of
the term "industrial dispute". The term "industrial dispute" conveys the meaning that the
dispute
must be such as would affect large groups of workmen and employers ranged on opposit
e sides.
The disputes can be raised by workmen themselves or their union or federation on their
behalf.
This is based on the fact that workmen have right of collective bargaining. Thus, there should
be
community of interest in the dispute.
It is not mandatory that the dispute should be raised by a registered Trade Union. Once it
is
shown that a body of workmen either acting through their union or otherwise had sponsor
ed a
workmen's case, it becomes an industrial dispute. 21 The dispute can be raised by minorit
y union
also. Even a sectional union or a substantial number of members of the union can
raise an
industrial dispute. However, the members of a union, who are not workmen of the employ
er
against whom the dispute is sought to be raised, cannot by their support convert an individ
ual
dispute into an industrial dispute. In other words, persons who seek to support the cause
must
themselves be directly and substantially interested in the dispute and persons who are
not the
employees of the same employer cannot be regarded as so interested. But industrial dispute
can be
raised in respect of non-workmen. 22 Industrial dispute can be initiated and continued
by legal
heirs even after the death of a workman. 23

17
Sindhu Resettlement Corporation Ltd. v. Industrial Tribunal ( 1968) 1 LLJ 834 SC.
18
AIR (1964) SC 1617
19
Workmen v. Hindustan Lever Ltd. (1984) 4 SCC 392
20
WS. Insulators ofIndia Ltd. v. Industrial Tribunal, Madras ( 1977) II Labour Law Journal
21 225
Newspaper Ltd., Allahaba d v. Industrial Tribunal, AIR 1960 SC 1328
22
Workmen v. Cotton Greaves and Co. Ltd. (1971) 2 SCC 658
23
Smt. Dhanalakshmi v. The Reserve Bank ofIndia, LAB 1C 1999 Kar. 286
40 • Labour Law and Industrial Relations - I

• .
_ . : •~e. Supreme Court observed that an individual dispute can dev~I into an industrial dispute
°ibe same was upheld later
when 1t 1s taken up by the union or substantial number of worlanen. 4
• th km f D · k h'
on m e case of Newspaner Ltd v Industrial Tribunal. 2s In the case of Wor en o ,ma uc ,
h d. •
Tea Estate v. Dimakuchi rTea Estate • •
26 the Supreme Court h "'t • not t at 1sputere1atmg
1 ts
, held t at . f .
'
to any person' can become an industr ial dispute. There shouId be community h d' t
o mterest. A
h.
d1·spute may 1mt1a
• • · 11y b . . . . but the
e an md1v1dual dispute worJanen may make t at 1spu ekm as t e1r
own, they may espouse it on the ground that they ' • Of • t est A11 wor en are
have a community m er • . . d .
not required to join the dispute. Any dispute which affects worlanen
as a class is an m ustnal I
dispute, even though, it might have been raised by a minority group. It
may be that _at the date of
dismissal of the workman, there was no union. But that does not mean
that the dispute ca~~t
become an industrial dispute because there was no such union in existen
ce on that ~at:. 1~ it 1s
insisted that the concerned workman must be a member of the union on
the date of his dismissal,
or there was no union in that particular industry, then the dismissal of such
a wor~ an can never
be an industrial dispute although the other workmen have a community
of interest m the matter of
his dismissal and the cause for which on the manner in which his dismis
sal was brought about
directly and substantially affects the other workmen." The key condit
ion, according to the
Dimakuchi Tea Estate case,21 for an individual dispute to become industrial,
it is the need for a
shared community of interest. The worker's union membership status
at dismissal or when the
issue emerged is not crucial. The community of interest does not
rely on the worker's
membership at the time of cause; if the issue holds common import
ance, other workers can
rightfully adopt and support the dispute. Whether the dispute becomes
industrial depends on the
specifics of each case. If after supporting the individual dispute by a trade
union or substantial
number of workmen, the support is withdrawn subsequently, the jurisdi
ction of the adjudicating
authority is not affected. However, at the time of making reference for
adjudication, individual
dispute must have been espoused. Otherwise, it will not become an
industrial dispute and
reference of such dispute will be invalid.
The dispute should relate to employment or non-employment or terms
of employment or
conditions of labour of any person. The meaning of the term "employment
or non-employment"
was explained by Federal Court in the case of Western India Automobile
Associ ation v. Industrial
Tribunal. 28 If an employer refuses to emplo~ a w_or~an dismissed by him, the
dispute relates to
non-employment of workman. But the uruon ms1sts that a particular
person should not be
employed by the employer, the dispute relates to employment of
workmen Thus the
"employment or non-employment" is concerned with the employer's failure
or refus.al t m'ploy
• "terms f
a workman. The expression o ~mployment" re tiers to all terms and conditions stated oe in the
contract of employment. The expression terms of employment would
also incl d th
which are understood and appl.ied by parties • •
m
.
practic e u e ose terms
. . • or habitu ally or b t
without ever bemg mcorp orated m the contract.29 ' , Y common consen

24AJR J957SC 104

2s J957A1R532
26 J958 AlR 353
27 Ibid.

8
2 J949FC R
321
L Ltd(19 84)1SC C392
29 Workmen v. Hindustan ever •
 ...
' • ~,
,,,.,---,(,,.

Industrial Relations: The Industrial Disputes t~;'t!kA~~-~

"":s.
~
•
\,, ~

In Workmen of Indian Express Newspapers Ltd v. Management Indian Ex ~-"::>·

Newspapers, 30 a dispute between two workmen of Indian Express Newspapers Ltd. was espouse
by the Delhi Union of Journalists which was an outside union. About 25 per cent of the working
journalists of the Indian Express were members of that union. But there was no union of the
journalists of the Indian Express. It was held that the Delhi Union of Journalists could be said to
have a representative character as the working journalists employed at Indian Express and the
dispute was thus transformed into an industrial dispute. Thus, an individual dispute to fall within
the definition of industrial dispute, it must be sponsored by the Trade Union of the workmen or if
there is no trade union, it must be sponsored by the majority of the workmen or it must comply
with the requirements of Section 2A of the Industrial Disputes Act, 1947. (Presently, all the
provisions are merged under the Industrial Relations Code 2020.)
The expression "condition of labour" is much wider in its scope and usually it was reference
to the amenities to be provided to the workmen and the conditions under which they will be
required to work. The matters like safety, health and welfare of workers are also included within
this expression.
It was held that the definition of industrial dispute is wide enough to embrace within its
sweep any dispute or difference between an employer and his workmen connected with the terms
of their employment. A settlement between the employer and his workmen affects the terms of
their employment. Therefore, prima facie, the definition of Industrial dispute will embrace within
its sweep any fraudulent and involuntary character of settlement.
Claims regarding employer's unfulfilled verbal assurances, compensation for business loss,
or disputes involving non-employee workers of a purchasing entity were not recognised as
industrial dispute. In JC/ India Ltd. v. Presiding Officer LC,31 it was held that the payment of
pension can be a subject-matter of an industrial dispute.

Questions
1. Define Industry and explain the concept of Industry.
2. Explain the term Industry with landmark judgements.
3. Write a short note on Industry.
4. Define Industry and explain if hospital is an industry.
5. Discuss the definition oflndustry in the light of Bangalore Water Supply case.
6. Define Industrial Dispute.
7. Explain the concept of Industrial Dispute with landmark cases.

30
AJR 1970, SC 737
31
1993 LLJ JI 568
 42
Labour Law and Industrial Relatio
.... ns_ 1

•· · · · · · · •·❖·• •.•· '.;~·.· · · · ·❖·•· ❖.. ... •. . : : : : ·:·:·:•: :-:·:·:·:· · · · · · · · · •.· · · · ·.· · ·.· · · · · ·•·❖-
·:::::· :·:·::: :.::••
:::::::: ::::::.• :.:'.
••
•••
•• ::.:.• :-·.-. • :•••••• •.•.• .• •··••·•
•·•···•••·• •••••••
..
Application of this Chapter
(Section 28)
l. The provisions of this Chapt
er shall apply to every industria t
three hundred or more than three l eS ablishment wherein
hundred workers, are employed,
any day of the preceding twelve or were employed on
months.
2. Notwithstanding anything con
tained in sub-section (1), the pro
shall not apply to an industrial visions of this Chapter\
establishment insofar as the worke
are persons to whom the Funda rs emp~o~ed therein
mental and Supplementary Rules
(Classification, Control and Appea , Civtl Services
l) Rules, Civil Services (Tempora
Revised Leave Rules, Civil ry Service) Rules,
Service Regulations, Civilians
(Classification, Control and Appea in Defence Service
l) Rules or the Indian Railway Est
any other rules or regulations tha ablishment Code or
t may be notified in this behalf
Government, apply. by the appropriate

Making of Model Standing

Orders by Central Governme
Application (Section 29) nt and Temporary
..
•. l. The Central Government sha
ll make
service and other matters incidenta model standing orders relating to conditions of I
l thereto or connected therewith.
2. Notwithstanding anything con
tained in Sections 30 to 36, for the
the date on which this section period commencing on
becomes applicable to an industria

I
ending with the date on which the l establishment and
standing orders as finally certified
come into operation under Section under this Code
33 in that establishment, the model
referred to in sub-section (1) sha standing order
ll be deemed to be adopted in that
provisions of sub-section (2) of establishment and the
Sec
standing orders as they apply to the tion 33 and Section 35 shall apply to such model
standing orders so certified.
Preparation of Draft Standin
Certification (Section 30)
g Orders by Employer and Pr

1. The employer shall prepare dra

ocedure for

ft standing orders, within a period

I
I
date of co ~e nc em en t of this Co of six months from the
de, base~ on ~e model standing
Section 29 m respect of the ma orders referred to in
tters specified m the First Schedu
matter considered n~ce_ssary ~y le and on any other
him f~r incorporation of necessary
standing_ord:rs.for his. mldustrbi~_l provisions in such
activity m his mdustria esta 1is hm estabhshment or u~dertaking, con sideri
ent or undertaking, provided suc ng the nature of
inconsistent wit. h any of the pro . • f h. h • • 1·s not
vision o t is Code and covers eve provision
the First Schedule. ry matters set out in
2. The employer shall con.sult the Trade Unions or
members of the negotiatm . . . recognised n t· t·
g cou~ci1 re1atmg to the ind ego 1a mg um•on or
undertaking, as the case may ustria l establishment or
be, m res~ect of the draft of the
thereafter forward the ~a ft ?f standing order and

I
the standing order electronically
certifying officer for certificat,on or otherwise to the
.

~
Industrial Relations: The Industrial Disputes 43

3. Where an employer adopts a model standing order of the Central Government referred
to in Section 29 with respect to matters relevant to his industrial establishment or
undertaking, then such model standing order shall be deemed to have been certified
under the provisions of this section and the employer shall forward the information in
this regard to the concerned certifying officer in such manner as may be prescribed:
Provided that if the certifying officer has any observation, he may direct such employer
to amend the standing order so adopted within such period as may be prescribed.
4. The employer shall prepare the draft of the modifications required in the standing order,
if any, in accordance with the provisions of this Code and forward electronically or
otherwise to the certifying officer for certification of those modifications only within a
period of six months from the date, the provisions of this Chapter becomes applicable to
his industrial establishment.
5. On receipt of the drafts referred to in sub-section (1) and sub-section (4), the certifying
officer shall issue notice to-
(i) the Trade Union or negotiating union of the industrial establishment or undertaking,
or members of the negotiating council; or
(ii) where there is no Trade Union operating, to such representatives of the workers of
the industrial establishment or undertaking chosen in such manner as may be
prescribed, for seeking their comments in the matter and after receipt of their
comments give an opportunity of being heard to the negotiating union or
negotiating council, or as the case may be, to the Trade Unions or the
representatives of the workers and decide as to whether or not any modification or
addition to such draft standing order is necessary to render the draft standing order
certifiable, and shall make an order in writing in this regard:
Provided that the certifying officer shall complete such procedure for certification
referred to in sub-sections (4) and (5) in respect of-
(a) the draft standing order so received within a period of sixty days from the date
of the receipt of it; and
(b) the draft modifications in the standing order so received within a period of sixty
days from the date of the receipt of such modifications, failing which such draft
standing orders or, as the case may be, the modifications in the standing order
shall be deemed to have been certified on the expiry of the said period.
6. The standing orders shall be certifiable under this Code, if-
( a) provision is made therein for every matter set out in the First Schedule which is
applicable to the industrial establishment; and
(b) such orders are otherwise in conformity with the provisions of this Code.
7. It shall be the function of the certifying officer or the appellate authority referred to in
Section 32 to adjudicate upon the fairness or reasonableness of the provisions of any
standing orders keeping in view the provisions of the model standing orders referred to
in Section 29.
8. The certifying officer shall certify the draft standing orders or the modifications in the
standing orders referred to in sub-section (5), and shall within seven days thereafter
44
Labour Lawand Industrial Relations - I
. . • in the standing orders,
send copies of the certified standing orders or the modifi cations yer and to the
authenttcat
• ed m • such manne 'bed, .to the emp10
r as may be prescn h esentatives of
negott•atmg
• uruon
. or negotia
ting council or the Trade Umon or ot er repr
the workers referred to in clause (ii) of sub-section (5). .
. .
9• The draft standmg orders under sub-section (1) or draft Of the mo dificat1ons t
proposed 1n
t ••
the standing orders under sub-section (5) shall be accompanied by a ~ta ~e~
dgt:~1
such particulars, as may be prescribed of the workers employed ~ t_ e m
~s ta
establishment, the Trade Union to whi~h they belong, and the negotiatmg
umon or
negotiating council, if any.
. ..
lo• Sub~ect to such conditi ons as may be prescn.bed, a group of emplo .
yers in similar
.
establishments may submit a joint draft of standing orders under this section : d fi h
or t e
purposes of proceedings specified in sub-sections (1), (?), (6), (8)_ ~ 9
( ), t~~
expressions "employer", "Trade Union" and "negotiating umon or neg~ti~tmg
c?uncil
shall respectively include all the employers, Trade Unions and negottatmg uruons
or
negotiating council of such similar establishments, as the case may be.
11. Without prejudice to the foregoing provisions of this section, the standing
orders
relating to an industrial establishment or undertaking existing . on the
commencement of the relevant provisions of this Code, shall, msofar_ as
~te of I
ts not
inconsistent with the provisions of this Code or rules made thereunder, contmue
and be
deemed to be the standing orders certified under sub-section (8), and accordingly,
the
provisions of this Chapter shall apply thereon.

Certifying Officer and Appellate Authority to Have Powers of Civil

Court
(Section 31)
1. Every certifying officer and the appellate authority referred to in Section
32 shall have
all the powers of a civil court for the purposes of receiving evidence, administerin
g oath,
enforcing the attendance of witnesses, and compelling the discovery and produc
tion of
documents, and shall be deemed to be a civil court within the meaning of Sectio
ns 345
and 346 of the Code of Criminal Procedure, 1973.
2. Clerical or arithmetical mistakes in any order passed by a certifying
officer, or errors
arising therein from any accidental slip or omission may, at any time, be correc
ted by
that officer or successor in office of such officer.

Appeals (Section 32)

An employer or Trade Union or the negotiating union or negotiating council, or
where there
is no negotiating union o! negotiating council in an in~ustrial _establishment or
undertaking, any
union ~r such r~presentat1ve body of th~ w~rkers of the_ mdustnal establishment
or undertaking, if
not satisfied with the order of the cert1fymg officer given under sub-section
. . . d f . (5) of S t' 30
may file an appeal w1t?m sixty ays o r~ce1pt of the order of the certifying officer ec 10n ,
to the
appellate authority appomted by the appropnate Government, by notification
. and such th ·cy
shall dispose of the appea1m sueh manner as may be prescn'bed. , au on

J
 45

IIJl!J/ff• ld_.s: n, ,,.,IISlri•l Dlsprm

,. ti f Standing Orders and its Avallablllty (Section 33)
Date of Opera on o . - -. . s the case may be, shall, ~nles~ an
I. The standing orders or modified standing o~ders, a tion on the expiry of thirty days
appeal is preferred ~der Sectio~ 32, com~ mto o::;aare sent under sub-section (8) of
from the date on which authenticated cop1_es _therrefi ed, the expiry of seven days
Section 30. or where an ap~eal as aforesaid ifs 1 err II : authority are sent in such
from d1e date on ,vhicb copies of the order o t e appe a
manner as m_ay be prescribed . • db
. finall - certified under this Code shall be mamtame •y
2. The text of a standin~ order as .Y t1 th information of the concerned
d1e employer in such language and m such manner or e
workers as may be prescribed.

Register of Standing Orders (Section 34)

A copy of all standing orders as finally certified under this C~e shall ~ filed by the
<:ertifying officec in a register maintained for the purpose or uploaded ~ electromc form or such
other fonn as may be presaibe,d, and the certifying officer sha!I furnish a copy thereof to any
person applying therefor on payment of such fee as may be prescnbed.

Duration and Modification of Standing Orders (Section 35)

1. The standing orders certified under sub-section (8) of Section 30 shall not, except on an
agreement between the employer and the work~ or a negotiating union or a Trade
Union or other representative body of the workers. be liable to modification until the
expiry of six months from the date on which the standing orders or the last
modifications thereof came into operation.
2. Subject to the provisions of sub-section (I), an employer or worker or a Trade Union or
other representative body of the workers may apply to the certifying officer to have the
standing orders modified in such application as may be prescri ~ which shall be
accompanied by such copies of the modifications proposed to be made, and where the
modifications are proposed to be made by agreement between the employer and the
workers or a Trade Union or other representative body of the workers, a certified copy
of that agreement shall be filed along with the application.
3. The_foregoing provisions of this Code shall apply in respect of an application under sub-
sechon (2) as they apply to the certification of the first-time standing orders.

Oral Evidence in Contradiction of Standing Orders Not Admissible

(Section 36)
No oral evidence having the effiect 0 f dding . .
standin 00der . . a . to or otherwise varymg or contradicting
g as finally cemfied under this Chapter shall be admitted in any Court.

Interpretation, etc. of Standing Orders (Section 37)

If any • •
under sub- ~on anses ~ to the application, or interpretation, of the standing orders certified
under sub-~ (8) of Section 30 or the modification made therein by an agreement entered into
sectlon (5) of that section, the employer or any worker or workers concerned or the
46· Labour Law and Industrial Relations -1

T rade Uruo. . . . d
n m relation to the workers employed m • stablisbment or undertaking,
the m ustna1 e - •t f h
wherein the question has arisen may apply to the
Tribunal, within the lofca1h 1uni ; ~ ~ o~e
territorial jurisdiction such establishment or the offic
•tua ed, • e, section or branch O t e_ un e a g 18
s1 t to decide the question and such Tribunal shall, after giv~
• • g all the parties concerned a
reasonable opportunity of being heard, decide the ques . . h be final
tion and its decision s a11 aDtl
binding on the concerned employer and the workers.

Tim e-li mit for Com plet ing Disciplinary Pro

ceedings and Liab ility to Pay
Sub sist enc e Allo wan ce (Section 38) •
• 1. Where any worker is suspended by the employer
pending ~vest~gat~on or ~qu i~ into
complaints or charges of misconduct against him, such
mvestigati~n or .mq~iry, or
where there is an· investigation followed by an inqu
iry, both the investigation and
inquiry shall be completed ordinarily within a period
of ninety days from the date of
suspension.
2. The standing orders certified under sub-section (8)
of Section 30 or modified under
Section 35 shall provide that where a worker is suspende
d as referred to in sub-section
(1), the employer in relation to an industrial establishm
ent or undertaking shall pay to
such worker employed in such industrial establishm
ent or undertaking subsistence
allowance at the rates specified in sub-section (3) for
the period during which such
worker is placed under suspension pending investigation
or inquiry into complaints or
charges of misconduct against such worker.
3. 1?e amount of subsistence allowance payable unde
r sub-section (2) shall be- -
(a) at the rate of fifty per cent of the wages whic
h the worker was entitled to
immedi~tely preceding the date of such suspension, for
suspension; and the first ninety days of
(b) at the r~te ~ff thsevednty-fi_ve
thper cent o!
such wages
suspension, i e e1ay m e completion of disciplinafor the remaining period of
· d" ry proc e d" ·
worker, 1s not 1rect1y attrib
·
utable to the conduct of such wor1, e mgs agamst sue
h
~er.
Pow er to Exe mpt (Section 39) •
The appropriate Government may, by notif
any industrial establishment or class of industrialication, exempt, conditionall
establishments from
..
of this Chapter. Y or uncondttto~~lly,
a11 or any of the provisions

Que stio ns
t. Explain what are ~od el Standing Orders?
2 _ Discuss the procedure for making of Model Standing Orders by Central G
3 . Expl.ain the preparati•on of Draft standing Orders by e
. . overnment•
mp1oyer and
Certification. d .c, r
proce ure 10
4. Explain the powers of the C~f ying Offi;er and Appellate
Authority.
What is modification of Standing Orders. •
5. Discuss the liability to pay Subsistence Allowance.
6.
 Industrial Relations: The Industrial Disp 47
utes

Notice of Change (Section 40)

No employer, who proposes to effect any
change •mthe conct·1t1o• ns of service applicable to
any worker in respect of any matter specifi
ed in the Third Schedule, shall effect suc
h cha nge ,-
(i) without giving to the workers likely
to be affected by such change a notice
manner as may be prescribed of the nature in such
of the change proposed to be effected; or
(ii) within twenty-one days of giving suc
h notice:
Provided that no notice shall be required
for effecting any such cha nge -
(a) where the change is effected in pursua
nce of any settlement or award;
(b) where the workers likely to be affe
cted by the change are persons to who
Fundamental and Supplementary Rules, m the
Civil Services (Classification, Control and
Appeal) Rules, Civil Services (Temporary
Service) Rules, Revised Leave Rules,
Civil Services Regulations, Civilians in
Defence Services (Classification, Control
and Appeal) Rules or the Indian Railway
Establishment Code or any other rules or
regulations that may be notified in this beh
alf by the appropriate Government in the
Official Gazette, apply; •
(c) in case of emergent situation whi
ch requires change of shift or shift wor
otherwise than in accordance with standing king,
orders, in consultation with Grievance
Redressal Committee;
(d) if such change is effected in acc
ordance with the orders of the approp
Government or in pursuance of any settlem riate
ent or award.
Power of Appropriate Government
to Exempt (Section 41)
Where the appropriate Government is of
the opinion that the application of the pro
Section 40 to any class of industrial esta visions of
blishments or to any class of worker emp
industrial establishment affect the emp loyed in any
loyers in relation thereto so prejudicia
application may cause serious repercussion lly that such
on the industry concerned and that pub
requires, the appropriate Government may lic interest so
, by notification, direct that the provisi
section shall not apply or shall apply, ons of the said
subject to such conditions as may be
notification, to that class of industrial esta spe cified in the
blishments or to that class of workers emp
industrial establishment. loyed in any

Voluntary Reference of Disputes

to Arbitration (Section 42)
1. Where any industrial dispute exists or
is apprehended and the employer and the
agree to refer the dispute to arbitration, workers
they may, by a written agreement, refe
dispute to arbitration, and the referenc r the
e shall be to such person or persons
arbitrator or arbitrators as may be specifi as an
ed in the arbitration agreement.
2. Where an arbitration agreement pro
vides for a reference of the dispute to
number of arbitrators, the agreement sha an even
ll provide for the appointment of another
as umpire who shall enter upon the refe person
rence, if the arbitrators are equally div
their opinion, and the award of the umpire ided in
shall prevail and shall be deemed to be
arbitration award for the purposes of this the
Code.
48 Labour Law and Industrial Relations - I

3. An arbitration agreement referred to in sub-section (1) shall be in such fonn a nd shall be

signed by the parties thereto in such manner as may be prescribed.
4. A copy of the arbitration agreement shall be forwarded to the appropriate Government
and the conciliation officer.
5• Where an industrial dispute has been referred to arbitration and the ap~ro~riate
Government is satisfied that the persons making the reference represent the maJonty of
each party, the appropriate Government may issue a notification in such manner as may
be prescribed; and when any such notification is issued, the employers and workers who
are not parties to the arbitration agreement but are concerned in the dispute, shall be
given an opportunity of presenting their case before the arbitrator or arbitrators:
Provided that- (i) where such industrial dispute is the industrial dispute other than the
termination of individual worker by way of discharge, dismissal, retrenchment or
I
otherwise, the workers shall be represented before the arbitrator,- (a) where there is
negotiating union or negotiating council, by the negotiating union or negotiating council,
as the case may be; or (b) where there is no negotiating union or negotiating council, by
the Trade Union; or (c) where there is no Trade Union, by such representatives of the
workers chosen in such manner as may be prescribed; (ii) where such industrial dispute
relates to termination of individual worker by way of discharge, dismissal, retrenchment
or otherwise, the concerned workers shall be represented in person or through a
representative authorised by him.
6. The arbitrator or arbitrators shall investigate the dispute and submit to the appropriate
Government the arbitration award signed by the arbitrator or all the arbitrators as the
case may be. '
7. Where an industrial dispute has been referred to arbitration and a notification has been
issu~d under sub-secti?n (5), the app_ropriate G_overnment may, by order, prohibit the
contmuance of any strike or lockout m connection with such dispute which may be in
existence on the date of the reference.
8. Nh?thing_ in the Arbitration and Conciliation Act, 1996 shall apply to arbitrations under
t 1s section.

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..=.·.=.-.=.-:.•. :..-.=.=.·...••• i=i=~=~=~===i=i=~=~=i=~=~=;n·===·=·===·= =·=::=t .·=·· DU. :}rRIAU==·. .:JS)!@f;§~t:;:::=·=:=:=;=;;:'.;.;_;:;;;=;=;;;;;;;=;~;=;;;;;;;=;;;=;=;=;=;=;=;=;=;;;~=;=;:;~;=;=;=;*;;

Conciliation Officers (Section 43)

l. The appropriate Government may, by notification, appoint su h .
thinks fit to be conciliation officers, charged with the d:;u;;ber 0 ~ P:rso~s, as it
promoting the settlement of industrial disputes. med1atmg m and
2. A conciliation officer may be appointed ~or a specified area or for specified . d tr· s in
cified area or for one or more specified industries a d . m us 1e
a spe . n either permanently or for a
limited penod.
Industrial Relations: The Industrial Disputes 49

Industrial Tribunal (Section 44)

I. The appropriate Government may, by notification, constitute one or more Industrial
Tribunals for the adjudication of industrial disputes and for performing such other
functions as may be assigned to them under this Code and the Tribunal so constituted by
the Central Government shall also exercise the jurisdiction, powers and authority
conferred on the Tribunal, as defined in clause (m) of Section 2 of the Employees'
Provident Funds and Miscellaneous Provisions Act, 1952 by or under that Act.
2. Every Industrial Tribunal shall consist of two members to be appointed by the
appropriate Government out of whom one shall be a Judicial Member and the other, an
Administrative Member.
3. A bench of the Tribunal shall consist of a Judicial Member and an Administrativ
e
Member or single Judicial Member or single Administrative _Member.
4. The qualifications for appointment, method of recruitment, term of office, salaries and
allowances, resignation, removal and the other terms of conditions of service of the
Judicial Member and the Administrative Member of the Tribunal constituted by the
Central Government shall be in accordance with the rules made under Section 184 of
the Finance Act, 2017:
Provided that a person, who has held a post below the rank of Joint Secretary to the
Government of India or an equivalent rank in the Central Government or a State
Government, shall not be eligible to be appointed as an Administrative Member of the
Tribunal. •
5. The term of office of the Judicial Member and the Administrative Member of a Tribuna
l
constituted by the State Government under sub-section (1 ), their salaries and allowances,
resignation, removal and other terms and conditions of service shall be such as may be
prescribed by the State Government.
6. The salary and allowances and the terms and conditions of service of the Judicia
l
Member or Administrative Member referred to in sub-section (2) and appointed by a
State Government shall not be varied to his disadvantage after his appointment.
7. The procedure of the Tribunal (including distribution of cases in the benches of the
Tribunal) shall be such as may be prescribed, provided a bench consisting of a Judicial
Member and an Administrative Member shall entertain and decide the cases only
relating to-
(a) the application and interpretation of standing order;
(b) discharge or dismissal of workmen including reinstatement of, or grant of relief to,
workmen dismissed;
(c) illegality or otherwise of a strike or lockout;
(d) retrenchment of workmen and closure of establishment; and
(e) Trade Union disputes, and the remaining cases shall be entertained and decided by
the bench of the Tribunal consisting either a Judicial Member or an Administrative
Member of the Tribunal.
8. The Judicial Member shall preside over the Tribunal where the bench of the Tribuna
l
consists of one Judicial Member and one Administrative Member.
 so Labou r Law and Indust rial Relati ons_ 1

9. If, for any reason, a vacancy (other than a temporary absence) occurs in a Nationat
h ll be filled up in such manner
Industrial Tribunal or a Tribunal, then such vaca~c~ s a f b-sec
tion (4) or sub-sect' as
may be prescribed, without prejudice to the provisions o s~. ued
before such Natio10~
(5), as the case may be, and the proceeding shall be c~: ~tag
Industrial Tribunal or Tribunal, as the case may be, from e e at which the vaca: a
cy
is filled.
10. The appropriate Governmen . h ber of officers and other staff as it
t may provide_ sue mun
thinks fit in consultation with the Judicial Member 0 ~ the T ·bunal which m b
n ay e
required for the due discharge of the functioning of the Tnbunal.

Fina lity of Constitution of Tribunal (Section 45)

· cation
N o notifi · of the appro . • 1·mg any. person as a Judicial Member
pnate Government appom . .
or an Administrative Member of a Tribunal shall be called in question in any manner, and no act
or proceeding before the Tribunal shall be called in question in any
mann~r on the ground mainly
of the existence of any vacancy in, or defect in, the constitution of
such Tnbunal.
National Industrial Tribunal (Section 46)
... 1. The Central Government may, by notification, constitute
1, • one or more National I
1., •
Industrial Tribunals for the adjudication of industrial disputes which
, in the opinion of
the Central Government, involve questions of national importance
or are of such a
nature that industrial establishments situated in more than one
State are likely to be
interested in, or affected by, such disputes.
2. A National Industrial Tribunal shall consist of two members
to be appointed by the
Central Government out of whom one shall be a Judicial Mem
ber and the other, an
Administrative Member.
3. A person shall not be qualified for appointment as the Judic
ial Member of a National
Industrial Tribunal unless he is, or has been, a Judge of a High Court
.
4. A person shall not be qualified for appointment as Administra
tive Member of a National
Industrial Tribunal unless, he is or has been Secretary to the Gove
rnment of India or
holding an equivalent rank in the Central Government or State
Government having
adequate experience of handling the labour-related matters.
'
5. The Judicial Member shall preside over a National Industrial
Tribunal.
6. The procedure of selection of Judicial Member and Admi
nistrativ M ber of the
Nati~nal Industrial Tribunal, their sal~ries, allowances and other
termse ande:ndi tions of
service shall be such as may be prescnbed.
7. The Cen~al Gov e~en t n:1~ :ro;i~ ~ .such number of office
rs and other staff as it
thinks fit in consu ta~10n wit t e u ici~l Member of the Natio
whic h may be requrred for the due discharge of the fun t· nal Industrial Tribunal
· T 'b I .
Indus tna1 n una • c toning of the Nat'10nal

Decision of Trib unal or _National ln~ustrial Tribunal (Section

47 )
d cision of a Tnbunal or a National Industrial Tribunal
1. The e f the members. , as t
h ll be
e case may be, sha I
by conse nsus o

A
Industrial Relations: Tl,e Industrial Disputes 51

2. If the members of a Tribunal or a National Industrial Tribunal differ

in opinion on any
point, they shall state the point or points on which they differ, and make
a reference to
the appropriate Government.
3. The appropriate Government shall, on receipt of a reference made
under sub-section (2),
appoint a Judicial Member of other Tribunal or a National Industrial Tribun
al who shall
hear the point or points himself and such point or points shall be decide
d according to
the majority of the members of a Tribunal or a National Industrial Tribun
al, as the case
may be, who have first heard the case, including the Judicial Memb
er of the other
Tribunal who heard the case thereafter.

Disqualifications for Members of Tribunal and National Indu

strial Tribunal
(Section 48)
No person shall be appointed to, or continue in, the office of the memb
er of a Tribunal or
National Industrial Tribunal, respectively, if-
(a) he is not an independent person; or
(b) he has attained the age of sixty-five years.
Explanation: For the purposes of this section, "independent person"
means a person who is
unconnected with the industrial dispute referred to a Tribunal or Nation
al Industrial Tribunal or
with any industry directly affected by such dispute.

Procedure and Powers of Arbitrator, Conciliation Officer, Tribu

nal and
National Industrial Tribunal (Section 49)
I. Subject to the provisions of this Code and the rules that may be
made in this behalf, an
arbitrator, conciliation officer, Tribunal or National Industrial Tribunal
shall follow such
procedure as the arbitrator, conciliation officer, Tribunal or National Indust
rial Tribunal
may deem fit.
2. A conciliation officer or an officer authorised in this behal f by the
Tribunal or National
Industrial Tribunal may, for the purpose of inquiry into any existin
g or apprehended
industrial dispute, after giving reasonable notice, enter the premises
occupied by any
establishment to which the dispute relates.
3. The conciliation officer, Tribunal and National Industrial Tribunal
shall have the same
powers as are vested in a civil court under the Code of Civil Proce
dure, 1908, when
trying a suit, in respect of the following matters, namely:
(a) enforcing the attendance of any person and examining him on oath;
(b) compelling the production of documents and material objects;
(c) issuing commissions for the examination of witnesses;
(d) in respect of such other matters as may be prescribed, and
every inquiry or
investigation by Tribunal or National Industrial Tribunal, shall be deeme
d to be a
judicial proceeding within the meaning of Sections 193 and 228 of the
Indian Penal
Code.
S2 d Industri al Relations - I
Labour Law an

4. A conciliation officer may enforce the attendance of any Person h" for the purpose of
h
. . .
exam1nat1on of such person or call for and mspect document w ic he has ground
any ary for the purpose
for considering to be relevant to the industrial dispute or to be neceshs d ty imposed on
o.f veruy·mg the ·unplementation of any award or carrymg • out any ot er u
. . t. officer shall have
him under this Code, and for the aforesaid purposes, the conci1ta~~nil Procedure, 1908
the same powers as are vested in a civil court under the Code of iv . . him or of
in respect of enforcing the attendance of any person and examuung
compelling the production of documents. .
.
5 • The appropriate . more persons havmg
Government may if it so thinks fit, app01nt one or d .
•1 ' . .
spec1a knowledge of the matter under cons1de rat10n as assessors or experts to a vise
f a
Tribunal or National Industrial Tribunal, as the case may be, in respect O any
proceeding before either of the said Tribunals.
6. All conciliation officers and the members of a Tribunal or National InduStrial Trib~a
l
shall be deemed to be public servants within the meaning of Section 21 of the 1nd1an
Penal Code.
7. Subject to any rules made under this Code the costs of, and incidental to, any
proceeding before a Tribunal or National Indus~ial Tribunal shall be in the discretion of
that Tribunal or National Industrial Tribunal and the Tribunal or National Industrial
Tribunal, as the case may be, shall have full powers to determine by and to whom and to
what extent and subject to what conditions, if any, such costs are to be paid, and to give
all necessary directions for the purposes aforesaid and such costs may, on application
made to the appropriate Government by the person entitled, be recovered by that
Government in the same manner as an arrear of land revenue.
8. Every Tribunal or National Industrial Tribunal shall be deemed to be civil court for the
purposes of Sections 345,34 6 and 348 of the Code of Criminal Procedure, 1973.
9. Every award made, order issued or settlement arrived at by or before a Tribunal or
a
National Industrial Tribunal shall be executed in accordance with the procedure laid
down for execution of orders and decree of a civil court under Order XXI of the Code of
Civil Procedure, 1908 and for that purpose, such Tribunal or National Industrial
Tribunal shall be deemed to be a civil court.

Powe rs of Tribunal and National_ lnd_ustrial Tribunal to Give Appro priate

Relief in Case of Disch arge or D1sm1ssal of Worker (Section 50)
1. Where the application under sub-section (6) of Section 53 relatin t .
· 1vmg • d"1scharge or dism1ssa
• 1 or otherw1se .
dispute mvo • termination of g o an _
1ndustr1 a1
· 1 h
made to a Tnbuna or as een re1erreb s:-. d to a 1
• l Ind · a Wor.l\.er has been
Nationa tr· .
adjudication, and, in the course of adjudic~tion ~roceedings, the ~~bia1 Tnbunal_ for
Industrial Tribunal,_ as the. cas_e may be, 1_s s~tisfied that the order unal ?r National
d ismissal or otherwise .termma
. 1
tion was not Justified, it may by .t of discharge or
• 1on • . ' I s award, s t
or
der of discharge or d1sm1ssa or termmat
. ·r . hink
and direct reinstat e as1"de the
fl ement of the
sueh
terms and conditions, 1 any, as 1t t
1 • hm
s 1t, or give such oth . work er on
. . . er rehef t th
inc1u dm·g the award of any .esser purus ent 1n heu of ct·ischarge o e worker
• temu·nation as the circumstances of the case may req . O d" .
otherw ise ' r 1sm1ssal or
u1re.
Industrial Relations: The Industrial Disputes 53

2. A Tribunal or National Industrial Tribunal, as the case may be, may, in the interest of
justice, grant such interim relief to the worker referred to in sub-section (1) during the
pendency of the industrial dispute as the circumstances of the case may require:
Provided that in any proceeding under this sub-section the Tribunal or National
Industrial Tribunal, as the case may be, shall rely only on the materials on record and
shall not take any fresh evidence in relation to the matter.

Questions
I. Explain the Authorities under the Industrial Relations Code, 2020.
2. Discuss the powers of Tribunal and National Industrial Tribunal.
3. Explain the procedure and powers of Arbitrator, Conciliation Officer, Tribunal and
National Industrial Tribunal.
4. Explain the constitution of the National Tribunal.
5. Discus the role of the Conciliation Officer.

Transfer of Pending Cases (Section 51)

1. On and from the date of commencement of this Code, the cases pending immediately
before such commencem ent-
(a) in the Labour Court and the Tribunal constituted under the Industrial Disputes Act,
1947 shall be transferred to the Tribunal having corresponding jurisdiction under
this Code;
(b) in the National Tribunal constituted under the Industrial Disputes Act, 1947 shall
be transferred to the National Industrial Tribunal having corresponding jurisdiction
under this Code.
2. The cases transferred under sub-section (I) to the Tribunal or the National Industrial
Tribunal shall be dealt with de novo or from the stage at which they were pending
before such transfer, as it may deem fit.

Adjustment of Services of Presiding Officers under Repealed Act

(Section 52)
A presiding officer of a Labour Court or Tribunal or, as the case may be, National Tribunal,
constituted under the Industrial Disputes Act, 1947, holding office as such immediately before the
commencement of this Code and is qualified to be appointed under this Code, shall be the Judicial
Member of the Tribunal or, as the case may be, the Judicial Member of the National Industrial
Tribunal, and shall continue as such for the remaining period of his office.

Conciliation and Adjudication of Dispute (Section 53)

1. Where any industrial dispute exists or is apprehended or a notice under Section 62 has
been given, the conciliation officer shall, hold conciliation proceedings in such manner
as may be prescribed:
Provided that the conciliation officer shall not hold any such proceedings relating to the
industrial dispute after two years from the date on which such industrial dispute arose.
 lndustrial Relations -1
54 Labour Law an d
. . bout a settlement of the
2. The conciliation officer shall, for the purpose of bringing a affecting the merits and
dispute, without delay, investigate the dispute ~d all m:tt~s fit for the purpose of
right settlement thereof and may do all such things as h f the dispute.
inducing the parties to come to a fair and amicable settlement O . rrived at in the
3. If a settlement of the dispute or of any of th~ _m~ ers tt in dispute 1s a
h 11 send a report thereof
course of the conciliation proceedings, the conc1hat~on ~ffice~s sb:half by the appropriate
to the appropriate Government or an officer authonsed in thi . d by the parties to the
Government together with a memorandum of the settlement Signe
dispute. · bl
. fi h 11
4. If no such settlement is arrived at, the conciliation of teer s a_ ' as dsoonthe as pract1ca e,
appropriate
after the close of the investigation, send to the concerned parties an to ·bed setting
Government a full report, in the electronic or other form as_ may be prescr; t~g to the
forth the steps taken by him for ascertaining the facts and ctrc~stanc: :e : t ent of
dispute and for bringing about a settlement thereof, together With a 1his a ~ .
L- such facts and circumstances and the reasons on account of which, in s opinion, a
settlement could not be arrived' at.
l--:
l, • 5. Notwithstanding anything cont~ined in sub-section (4), the conciliation o~~er shall
send the report to the concerned parties and the appropriate Gove~e~t within forty-

-
~ five days ·of the commencement of the conciliation proceedings or w1th1n such shorter
period as may be fixed by the appropriate Government:
Provided that where a conciliation officer receives notice under Section 62, he shall
send the report to the concerned parties and to the appropriate Government within
fourteen days of the commencement of the conciliation proceedings:
Provided further that subject to the approval of the conciliation officer, the time may be
extended by such period as may be agreed upon in writing by the concerned parties to
the dispute. •
6. Any concerned party may make application in the prescribed form to the Tribunal in the
matters not settled by the conciliation officer under this section within ninety days from
the da!e on which the _report under ~ub~sec!ion (4) is received to the concerned party and
the Tribunal shall decide such apphcatton 1n the prescribed manner.

Reference to and Functions of National Industrial Tribunal (Section

54)
1. The Central Government may refer an industrial dispute to a Nat·
. I h. h • h 1 d .
of sueh Government involves qu t·iona f1n ustna
Tnbuna w 1c m t e op1n1on •• 1
• · h · • .
unportance or 1s of such a nature t at 1ndustnal establishments situat es ion o nattona1
d•
State are likely to be interested in, or affected by such industrial disp:te~ more than one
2. Where an industrial dispute has been referred under sub-section ( ) or t fl
Section 92 by the Central Government to a National Industrial T .b 1
rans e~e~ ~der
it shall hold its proceedin~s expeclit!ously _and _shall, within th:i = l for a~Judic~t1on, 1
order referring or transferrmg such mdustr1al dispute or furth P . d specified m the
Central Government, submit its award to that Government. er period extended by the
Industrial Relations: Th ss
t Industrial Disputes
Form of Award, its C
ommunication and C
ommencement (Sec
tion 55)
1. Th e award o f-
(i) a Tribunal deliv .. • f a Judicial Membe
ered by a b~nch co r and an
Administrative Membe di n_s1~ttt~ber or a sin
r or a smgle Ju eta gle Administrative
Member; or
( ii) a National Industrial Tr . .. nd shall be signed el
. ibunal, shall be m w nt ectronically
or otherwise, as the m g
b by both at he Ju d" • 1 Member an d th
Administrative Membe case ~a y e, h J d" . 1 Membetc ta
r or the Administra .
e
r or either by t e u tive
Member by whom the 1c1a
award is delivered.
Every arbitration awar
d and every award of . .
2. shall be communica Tribunal or Nat~onal
ted to the parties conc Industnal Tn bu na l
An award made under erned and the approp
nate Government.
3 this Code shall becom
• from the date of its co e en !orceable on the expi
mmunication under su ry of thirty days
b-section (2):
Provided th at -
(a) if the appropriate
Government is of the
been given by a Tribun
al in relation to an in
h:
opinion an~ case,
wher~ th~ ~ward ha
~
dustnal dispute to w
or hich 1t 1s a party,
(b) if the Central Go
vernment is of opinio
given by a National n in any case, where
Industrial Tribunal, the award ha s be~n
grounds affecting natio that it will be inex
nal economy or socia pedient on pu bh c
any part of the awar l justice to give effe
d, the appropriate G ct to the w ho le or
Central Government m overnment, or as th
ay, by notification, de e case m ay be , th e
enforceable on the expi clare that the award
ry of the said period of shall no t be co m e
4. Where any declara thirty days.
tion has been made in
section (3), the approp relation to an award
riate Government or th under the proviso to
may, within ninety da e Central Governmen su b-
ys from the date of co t, as the case m ay be
(2), make an order re mmunication of the aw ,
jecting or modifying ard under sub-sectio
opportunity, lay the aw the award, and shall, n
ard together with a co on th e first availabl
the State, if the order py of the order befo e
has been made by a St re the Legislature of
order has been made by ate Government, or be
the Central Governm fore Parliament, if th
ent. e
S. Where any award
as rejected or modified
before the Legislatu by an order made un
re of a State or be der sub-section (4 ) is
enforceable on the ex fore Parliament, su la id
piry of fifteen days fro ch award shall be co
no order u~der sub-se m the date on which me
ction (4) is made in it is so laid; an d w he
t~ sub-section (3), th pursuance of a declar re
e award shall becom ation under the prov
nmety days referred to e enforceable on the iso
in sub-section (4). expiry of th e period
of
6. Subject t?. the pr
ovisions of sub-sect
enforceability of an aw ion (3) and sub-se
ard, the award shall ction (5) regarding
date a~ may be specifi come into operation th e
ed therein, bu t where with effect from su
operation on the date no date is so specifi ch
when the award beco ed, it shall come in
section (5), as the case mes enforceable unde to
may be. r sub-section (3) or su
b-
 - ---------------

Labour Law and Industrial Relatio,,s 'l

56
edings in Higher Courts
Payment of Full Wages to Worker Pending Proce
(Section 56) . 1 Tribunal by its award -dir
•onal Industna . h ects
Where in any case, a Tnbunal or a Natt roceedings agamst Suc award in
• of any worker and the employer prefers any P • thea
reinstatement b 1-able to pay sueh w or ker, durmg
11
High Court or the Supreme Court, the employer_ sha ; ~r the Supreme Court, full wages last
period of pendency of such proceedings in the High Co clmissible to him under any rule if the
drawn by him, inclusive of any maintenanc~ allowance; such period and an affidavit by such
worker had not been employed in any establishment dur g . •
worker had been filed to that effect in such Court:
. ti • f the Htg o ..
s
. h C urt or the uprem C
e oun
Provided that where it is proved to the satts action o . dequate remuneration during a
that sue~ worker had been employed and bad been receiving :hall be payable under this secti:y
such penod or part thereof, the Court shall order that no wages n
for such period or part, as the case may be. •
Persons on Whom Settlements and Awards are Binding (Secti_on 57)
1. A settlement arrived at by agreement between the employer and ~orker otherwise than
in the course of conciliation proceeding shall be binding on the parties to the agreement.
l
2. Subject to the provisions of sub-section (3), an arbitration award which has. become
enforceable shall be binding on the parties to the agreement who referred the dispute to
arbitration.
3. A settlement arrived at in the course of conciliation proceedings under this Code or an
arbitration or an award of a Tribunal or National Industrial Tribunal which has become
enforceable shall be binding on-
(a) all parties to the industrial dispute;
(b) all other parties summoned to appear in the proceedings as parties to the dispute,
unless the arb~tr~tor, Tribunal or National Industrial Tribunal, as the case may be,
records the op1n1on that they were so summoned without proper cause;
(c) where a party r:ferr~ to in clause (a) or clause (b) is an employer, his heirs,
successors or assigns in respect of the establishment to which the dispute relates;
(d) where a party referred to in clause (a) or clause (b) •
h . is composed o f worl\.ers,
1,
a11
phersons w o where empl~yed 1n t~e establishment or part of the establishment, as
t e case may e, to which the dispute relates on th d . 11
persons who subsequently become e d . e ate of the dispute and a
mp1oye m that establishment or part.
Period of Operation of Settlements and Awards (S t·
. ec ion 58)
I . A settlement shall come mto operation on such dat . .
the dispute, and if no date is agreed upon on th dae as 18 a~eed upon by the parties to
settlement is signed by the parties to the dispute~ te 0 ~ which the memorandum of the
2. Such settlement shall be binding for such per· d . .
no such period is agreed upon, for a period ~~ ~s 18 agreed upon by the parties, and tf
memorandum of settlement is signed by the ;ix months from the date on which the
be binding on the parties after the expiry oft:a •e~ to the dispute, and shall continue to
e period aforesaid, until the expiry of sbct)'

1
 56 Labour Law and Industrial Relali
ons .. 1
dings in Higher Cou •
Payment of Full Wages to Worker Pending Procee rts
(Section 56) .
. dustrial Tribunal by its award d'
. Where in any case, a Tribunal or a National 1n roceedings against such awar~r~ts
rH~nstatement of any worker and the employer prefers ~Y fable to pay such worker, durin lll a
•gh Court or the Supreme Court, the employer shall e 1 th Supreme Court full w g the
period of d
pen ency of such proceed'mgs m
• th H'gh
e 1 Courtdm'or e
'ble to him under' any ru]ages•r last
drawn by him, inclusive of any maintenance allowance _a iss~ eriod and an affidavit~ I the
worker had not been employed in any establishment dunng sue P Ysuch
worker had been filed to that effect in such Court: •
Provided that where it is proved to the satisfaction of the High Court. ~r the t~uprdem~ Coun
that sueh • •ng adequate remunera 10n urmg
worker had been employed and had been recetvt • bl d . any
such period or part thereof, the Court shall order that no wages shall be paya e un er this section
for such period or part, as the case may be.
.
,.r.
,, ..•
Persons on Whom Settlements and Awards are Binding (Sect~on 57)
,,(
t,·.,.
1. A settlement arrived at by agreement betwee~ the employer and ~orker otherwise than
....... . in the course of conciliation proceeding shall be binding on the parties to the agreement.
I l~
....... I 2. Subject to the provisions of sub-section (3), an arbitration award which has. become
enforceable shall be binding on the parties to the agreement who referred the dispute to
arbitration.
3. A settlement arrived at in the course of conciliation proceedings under this Code or an
arbitration or an award of a Tribunal or National Industrial Tribunal which has become
enforceable shall be binding on-
(a) all parties to the industrial dispute;
(b) all other parties summoned to appear in the proceedings as parties to the dispute,
unless the arbitrator, Tribunal or National Industrial Tribunal, as the case may be,
records the opinion that they were so summoned without proper cause;
(c) where a party referred to in clause (a) or clause (b) is an employer, his heirs,
successors or assigns in respect of the establishment to which the dispute relates;
(d) where a party referred to in clause (a) or clause (b) is composed of workers, all
persons who were employed in the establishment or part of the establishment, as
the case may be, to which the dispute relates on the date of the dispute and all
persons who subsequently become employed in that establishment or part.

Period of Operation of Settlements and Awards (Section 58)

1. A settlement sha_ll come i~to operation on such date as is agreed upon by the parties to
the dispute, and 1f no date 1s agreed upon, on the date on which the memorandum of the
settlement is signed by the parties to the dispute.
2. Such settle~ent _shall be binding for such_ period ~sis agreed upon by the parties, and if
no such penod 1s agreed up~n,. for a period of SIX months from the date on which the
memorandum of settl~ment is signed ~y the parties to the dispute, and shall continue to
be binding on the parties after the expiry of the period aforesaid, until the expiry of sixty
Industrial Relations: The Industrial Disputes 57

days from the date on which a notice in writing of an intention to terminate the
settlement is given by one of the parties to the other party or parties to the settlement.
3. An award shall, subject to the provisions of this section, remain in operation f~r a period
of one year from the date on which the award becomes enforceable under Sectmn 55:
Provided that the appropriate Government may reduce the said period and fix such
period as it thinks fit:
Provided further that the appropriate Government may, before expiry of the said period,
extend the period of ·operation by any period not exceeding one year at a time as it
thinks fit so, however, that the total period of operation of any award does not exceed
three years from the date on which it came into operation.
4. Where the appropriate Government, whether of its own motion or on the application of
any party bound by the award, considers that since the award was made, there has b~en
a material change in the circumstances on which it was based, the appropriate
Government may refer the award or part of it to the Tribunal, if the award is made by
the Tribunal for decision whether the period of operation should not, by reason of such
change, be shortened and the decision of the Tribunal on such reference shall be final.
5. Nothing contained in sub-section (3) shall apply to any award which by its nature, terms
or other circumstances does not impose, after it has been given effect to, any continuing
obligation on the parties bound by the award.
6. Notwithstanding the expiry of the period of operation under sub-section (3), the award
shall continue to be binding on the parties until a period of sixty days has elapsed from
the date on which notice is given by any party bound by the award to the other party or
parties intimating its intention to terminate the award.
7. No notice given under sub-section (2) or sub-section (6) shall have effect, unless it is
given by a party representing the majority of persons bound by the settlement or award,
as the case may be.

Recovery of Money Due from Employer (Section 59) .

I. Where any money is due to a worker from an employer under a settlement or an award
or under the provisions of Chapter IX or Chapter X, the worker himself or any other
person authorised by him in writing in this behalf, or, in the case of the death of the
worker, his assignee or heirs may, without prejudice to any other mode of recovery,
make an application to the appropriate Government for the recovery of the money due
to him, and if the appropriate Government is satisfied that any money is so due, it shall
issue a certificate for that amount to the Collector who shall proceed to recover the same
in the same manner as an arrear of land revenue:
Provided that every such application shall be made within one year from the date on
which the money became due to the worker from the employer:
Provided further that any such application may be entertained after the expiry of the said
period of one year, if the appropriate Government is satisfied that the applicant had
sufficient cause for not making the application within the said period.
2. Where any worker is entitled to receive from the employer any money or any benefit
which is capable of being computed in terms of money and if any question arises as to
 58 Labour L a W and Industrial Relations - I

. h benefit should be computed,

the amount of money due or as to the amount at which sue d under this Code be
the~ the • may, • I th t may be ma e by the '
question subject to any rues. a . . behalf appropriate
decided by such Tribunal as may be specified m this
Government within a period not exceeding three months: d .
p . r expedient so to o, 1t may
rovided that where the Tribunal considers it necessa~ 0
h further period as i;
for reasons to be recorded in writing, extend such penod by sue
may think fit. .
3 • b fit referred to in sub-section
• For the purposes of computing the money value of a e~e _i h ft t kin
(2), the Tribunal may if it so thinks fit appoint a Commissioner who s ad11' : ; .: g
such evidence as ma~ be necessary s~bmit a report to the Tribunal_ a~ t e ~ :al
shall determine the amount after co~sidering the report of the Commissioner an °er
circumstances of the case.
4. The decision of the Tribunal shall be forwarded by it to the appropriate Gove1:1111ent a~d I
any amount found due by the Tribunal may be recovered in the manner provided for m
sub-section ( 1). -
5. Where workers employed under th~ same employer are entitled to receive from~ any
money or any benefit capable of being computed in terms of money, then, subject to
such rules as may be made in this behalf, a single application for the recovery of the
amount due may be made on behalf of or in respect of any number of such workers.

Comme ncemen t and Conclusion of Proceedings (Section 60)

I. A conciliation proceeding shall be deemed to have commenced on the date on which the
first meeting is held by the conciliation officer in an industrial dispute after the receipt
of the notice of strike or lock-out by the conciliation officer.
2. A conciliation proceeding shall be deemed to have conclude d-
(a) where a settlement is arrived at, when a memorandum of the settlement is signed
by the parties to the dispute;
(b) where no settlement is arrived at, and failure of conciliation is recorded by the
conciliation officer; or
(c) when a reference is made to a National Industrial Tribunal, under this Code during
the pendency of conciliation proceedings. '
3. Proceedings before an arbitrator or a Tribunal or a National Industrial Tribunal under
this Code shall be deemed to have commenced on the date of fil" . .
appeal or on the date of re1erence of the dispute
• ing app11cat1on
c. or
d" for arbitration or d" d. . th
case may be, and such procee ings shall be deemed to have - a ~u 1catton, as e
concluded h on
which the award becomes enforceable. O
n t e date

Certain Matters to be Kept Confidential (Section 61)

There shall not be included in any report or award under this Code a . £ . . d
nciliation officer, arbitrator, Trib~al or National Industrial Tribun~ ~ onnatton obtame
by a c_o . in uiry as to a Trade Uruon or as to any individual b . ' in the course of anY
invest1gat1on or q company) which is not available otherwise th u~ness (whether carried on
by a persohn, ~::tion officer, arbitrator, Tribunal, or National In~:!trioulgTh _the evidence given
before sue conct a nbunal, if the Trade
Industrial Relations: Tht Industrial Disputes 59

Union, person, finn or company, in question has made a request in

writing to the conciliation
officer, arbitrator, Tribunal or National Industrial Tribunal, as the
case may be, that such
infonnation shall be treated as confidential; nor shall such conciliation
officer, or the arbitrator, or
the presiding officer of a Tribunal or a National Industrial Tribunal
or any person present at or
concerned in the proceedings disclose any such infonnation without the
consent in writing of the
Secretary of the Trade Union or the person, firm or company in question,
as the case may be:
Provided that nothing contained in this section shall apply to a disclo
sure of any such
infonnation for the purposes of a prosecution under Section 193 of the
Indian Penal Code.

(zr) "worker" means any person (except an apprentice as define

d under clause (aa) of
Section 2 of the Apprentices Act, 1961) employed in any industry to
do any manual,
unskilled, skilled, technical, operational, clerical or supervisory work
for hire or reward,
whether the tenns of employment be express or implied, and
includes working
journalists as defined in clause (f) of Section 2 of the Working Journ
alists and Other
Newspaper Employees (Conditions of Service) and Miscellaneous Provi
sions Act, 1955
and sales promotion employees as defined in clause (d) of Sectio
n 2 of the Sales
Promotion Employees (Conditions of Service) Act, 1976, and for the
purposes of any
proceeding under this Code in relation to an industrial dispute, includes
any such person
who has been dismissed, discharged or retrenched or otherwise termin
ated in connection
with, or as a consequence of, that dispute, or whose dismissal,
discharge or
retrenchment has led to that dispute, but does not include any such perso
n-
(i) who is subject to the Air Force Act, 1950, or the Army Act, 1950,
or the Navy Act,
1957; or
(ii) who is employed in the police service or as an officer or other
employee of a prison;
or
(iii) who is employed mainly in a managerial or administrative capac
ity; or
(iv) who is employed in a supervisory capacity drawing wages
exceeding eighteen
thousand rupees per month or an amount as may be notified by
the Central
Government from time to time:
•
Provided that for the purposes of Chapter III, "wor ker"- (a) mean
s all persons
employed in trade or industry; and (b) includes the worker as defined
in clause (m)
of Section 2 of the Unorganised Workers' Social Security Act, 2008.
Some of the expressions used in the definition of "workman/worker"
have been the subject
of judicial interpretation and hence they have been discussed below:
(a) Employed in "Any Industry"
To be a workman, a person must have been employed in an activity which
is an "industry" as
per Section 2(p). Even those employed in operation incidental. to such
industry are also covered
under the definition of workman.
 60 Labour Law and Industrial Relations - l
J
• In J.K. Cotton Spinning and Waving Mil
ls Co. Ltd. v. L.A.T.,32 the Supreme C?urt
'ma lis' caring for company provided offi held ~hat i
cer' s bungalow gardens are eng_aged tn
rela ted to the mai n industry. The Court operat~ons
observed that the mo dem induSt nes rely
ope rati ons related to the main industry on _vanous
for efficient functioning. If an employee
incidental operation linked to the main ass ~ts . any C
industry, denying them workman status
rele van ce wou ld be reasonable. due to rndtrect 1
(b) Person Employed
A person cannot be a workman unless he
is employed by the employer in any industr
relationship of employer and workman is y. ~e
usually supported by a contract of emp loy
ma y be expressed or implied. The employe men t which
e agrees to work under the supervision and
his employer. Here, one must distingu co~trol of
ish between contract for emp loy men t. or
contract of employment or service. In the servt~e and
former, the employer can order or requrre
don e but , in the latter, he can not only ord wh at 18 to be w
er what is to be done, but also how it sha
the cas e of contract for employment, the ll be done. In
.-·· person will not be held as a 'wo rkm an'
'ind epe nde nt contractor'. There should be but only an ~
due control and supervision by the emp
mas ter- and servant- relationship. 33 Pay
ment on piece rate by itse lf does not
loy er for a J
relationship of master and servant. 34 Eve disprove the
n a part-time employee is a worker. 35 Sin
an obligation to wor k for fixed hours eve ce he is under
ry day, jural relationship of master and serv
exist. A casual worker is nonetheless con ant would
sidered as a workman, 36 employed to do
unskilled, etc. skilled or
Onl y those persons who are engaged in
the following types of wor k are cov ere
defmition of "workman": (i) Skilled or d by the
unskilled _manual work; (ii) Supervisory
Tec hni cal work; (iv) Clerical work. wor k; (iii)
If individuals perform multiple tasks, they
are deemed employed primarily for the
wor k. 37 M~ ual wor k referred in the definiti main
on includes work which involves phy sica
distinguished from mental or intellectual exe l exertion as
rtion.
If a person mainly does supervisory wor R
k, even if some clerical task s are occ
supervisory duties do not change their stat 38 asional
us. The employment's dominant pur pos
rejecting additional duties, in determining e matters most
job status.39 Labour officer wor kin g in
involving initiative is supervisory, while a • 1 mill
bank teller's wor k lacks suc h character.
a JU e
Wh eth er Teachers are Workmen or
Not?
Aft er amendment of Section 2(zr) of the
. . Act, the issue whether "te h
not " was decided 1n many cases but all the cases were decided ac ers are wo rkmen or
on th b . f . .on f
e as1s o defimt1 o
n AIR 1969 SC 737
33 Dharangadhara Chemical Works Ltd. v. State
ofSaurashtra, AIR 1957 SC
34 Shin ing Tailors v. Tribunal
li, UP, Lucknow and Ors. (1983) 4 sec 464 264
JS P.N. Gul ati v. Lab our Com
missioner, 1977 (35) FLR 35
36 G. Yed di Red di v. Brooke Bon d India Ltd. (1994)
Lab IC 186
31 Bur ma She ll Oil Stor age
and Distributing Co. of India v. Burma Shel
l Management St rffA . .
SC 922 a ssociatzo n , AIR 1971
38 Ano ndBazar P
atrik a (P) Ltd. v. Its Workmen (1969) II LLJ 670
39 A GR Rao v. C z a
.b Geig y AIR 1985 SC 985
'
Industrial Relations: Tire Industrial Disputes 61

workman prior to amendment. In Sunderambal v. Government of Goa,40 the Supreme Court ruled
that the teachers in educational institutions are not workmen under Section 2(zr) of the Act.
Imparting education is not skilled/unskilled manual, supervisory, technical, or clerical work. The
Court highlighted that the manual work involves physical, not mental/intellectual exertion.
Teachers' duties are mental and intellectual, not manual. Thus, a teacher is not a workman.
A person doing technical work is also held as a workman. A work which depends upon the
special training or scientific or technical knowledge of a person is a technical work. Once a
person is employed for his technical qualifications, he will be held to be employed in technical
work irrespective of the fact that he does not devote his entire time for technical work. Thus, the
person doing technical work such as engineers, foreman, technologist, medical officer,
draughtsman, etc. will fall within the definition of "workman". A medical representative whose
substantial work is marketing for promotion of sales is not a workman. However, a salesman,
whose duties included as manual as well as clerical work such as to attend to the customer,
prepare cash memos, to assist manager in daily routine is a workman. 41 In the case of Workmen
of Dimakuchi Tea Estate v. Dimakuchi Tea Estate,42 the Supreme Court laid down following
objectives of the Act:
(i) Promotion of measures of securing and preserving amity and good relations between the
employer and workmen.
(ii) Investigation and settlement of industrial disputes between employers and employers,
employers and workmen, or workmen and workmen with a right of representation by
registered trade union or federation of trade unions or an association of employers or a
federation of associations of employers.
(iii) Prevention of illegal strikes and lockouts.
(iv) Relief to workmen in the matter of layoff and retrenchment.
(v) Promotion of collective bargaining.
Factors to be Considered
• Presence of master-servant relationship.
• If the worker is employed to carry out a number of variant tasks, the main focus while
determining her status in the industry should be the main function that she performs and
for which she was hired.
• Work for which employment is given can be skilled, manual, unskilled, operational,
clerical, manual or supervisory in nature.
• Any of the exceptions to Section 2(s) be applicable to the claimant.
Skilled or Unskilled Work
• When there is some requirement of a specified technique or undergoing an explicit
training for executing that job, it can be termed as skilled labour.

40
AIR 1988 SC 1700
41
Corona Sahu Co. Ltd. v. Labour Court (l 993) I LLN 300
42
AIR 1958 SC 353
 LaboUr Law and Industrial .Relation•
~~1
62

Manual
anual worker if her work ent
• Any worker in th: in_dustry b termed as a m ai
can e .cal strength. .
specifically in apphcat1on of her phy
s~
Supervisory Work
f d'
• Any person who is employed urpose o tr ecting' controlling and supervisin
for tbe P . a supervisor.
the work carried out by the other em
ployees 18
Technical Work
•
• When a worker possesses any hni l knowledge to per£onn a set of defined tasks •
the industry and for the same reason tee ca d then she comes ID .
, she was emp1oye ' the categol)
of technical worker, etc. .
Clerical Work
• The Job. . . ica • .
1s specif lly for execution of rout·me tasks and work in office.
Reward or Hire
• For a claimant to benefit from
the said definition, she requires
employed for some reward or hire. to prove that she was
There can be implied or express ter
In the case of Chintaman Rao v. Sta ms of employment.
te ofMadhya Pradesh,43 the Apex
"Worker is defined to mean a per Court said:
son employed, directly or through
wages or not, in any manufact any agency, whether for
uring process. The concept of
ingredients: (1) employer, (2) em employment involves three
ployee and (3) the contract of em
who employs, i.e., one who eng ployment. The employer is one
ages the services of other person
works for another for hire. The em s. The employee is one who
ployment is the contract of servic
the employee whereunder the em e between the employer and
. . Th ployee agr ees to serve the em ployer sub;ect to hi
superv1s1on. e 1.dentl.fy.1ng mark of the 1att~ . h tr d
• •on of the emp1oye •
superv1s1 ~s t at he should be un J
de r th s co n o1 an
r m respect of the deta1·1s of the wo d
rk. . e contro1 an
The principle which emerges
determination of the relationship from these authorities is that the pri . \
between master and servant is "th
master to supervise and control the e exi·st ma f acze test for the
work done by the servant not onl
what work the servant is to do bu y in enc
th e of the ng • h • th
_t tn e
t also the manner in which he sha
ll do hi e matter of directing
In Dharangadhara Chemical Wo
rks Ltd. v. State of Saurashtra,44 s Work.''
said that: on r
23
"The essential condition of a per d November, 1956
son being a workman within the
that he should be employed to term
do the work in that industry, and
servant relationship between th_e that the 8 of this defmition is
employed, there can be no questio emf~Y : .and pe rs : emp~oh~ed. Un~:s:h:Uld be a mas;er.
n o s emg a wor an wit m
contained in the Act." the defi . . Person is thus
( 11Ition of the term as

-43 l958 AIR 388, 1958 SCR 1340

_.. l957 AIR 264, 1957 SCR 152
 Industrial Relations: The Industrial Disputes 63

The test which is unifonnly applied in order to detennine

the relationship is the existence of a
right of control in respect of the manner in which the
work is to be done. A distinction is also
drawn between a contract for services and a contract of
service and that distinction is put in this way:
"In the one case, the master can order or require what
is to be done while in the other case
she can not only order or require what is to be done but
how itself it shall be done".
In Burma Shell Oil Storage and Distribution Co. India
Limited v. Burma Shell Management
Staff Association,45 the Apex Court observed that "A
person cannot be assumed to be a workman
on the ground that he does not come within the four exce
ptions in Section 2(zr). The specification
of the four types of work in the definition in Secti
on 2(zr) is intended to lay down that an
employee is to become a workman only if she is empl
oyed to do work of one of those types,
while there may be employees who, not doing any such
work, would be out of the scope of the
.word 'workman' without having to resort to the excep
tions. In practice, quite a large number of
employees are employed in industries to do work of more
than one of the kinds mentioned in the
• definition. In such cases, it would be necessary to deter
mine under which classification she will
fall for the purpose of finding out whether he does
or does not go out of the definition of
'workman' under the exceptions. For this purpose, a work
man must be held to be employed to do
that work which is the main work she is required to
do, even though she may be incidentally
doing other type of work ....:'
In MM Wadia Charitable Hospital v. Dr. Umakant Ram
chandra Warerkar, 46 the Court said
that "The Supreme Court has now settled the law
with regard to interpretation of the word
'workman' as defined under Section 2(zr) of the Indu
strial Disputes Act to say that a person can
acquire the status of a workman under Section 2(zr)
only if she falls within the first part of
Section 2(zr) of the Industrial Disputes Act, 1947. She
must be employed to do manual, unskilled,
skilled, technical, operational, clerical or supervisory
work for hire or reward. If she fails in any
of the above categories in the first part of Section 2(zr)
, then the Court has to ascertain as to
whether she stands excluded by the four exceptions carve
d out in the latter half of Section 2(zr).
In Ved Prakash Gupta v. Mis. Delton Cable India
(P) Ltd ,47 it was held that a person
employed in managerial capacity or administrative capa
city is not a workman.
In the famous case of S.K. Verma v. Mahesh Chandra
and Anr,48 the Court deduced that by
keeping under the microscope the nature of duties perfo
rmed and undertaken by the development
officer o( Life Insurance Corporation, can be held
as "worker". The duties executed and the .
powers so vested in such category of employees cann
ot be held equivalent to any administrative
or managerial work.

Questions
1. Define Workman.
2. Write a short note on Workman.
3. Define Workman and explain if a teacher is a work
man.

♦♦♦
4
s (1970) 3 sec 378, AIR 1911 sc 922
46
1997 (75) FLR 814, (1997) IILLJ 549 Born.
47
AIR 1984 SC 914
48
1983 4 sec 214