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Labour Laws

The document outlines key definitions and provisions related to industrial disputes, including lay-offs, retrenchments, strikes, and lock-outs, as governed by the Industrial Disputes Act, 1947. It details the roles of Labour Courts and Tribunals in resolving disputes, the rights and responsibilities of trade unions, and the Maternity Benefit Act's provisions for working women. The document emphasizes the legal framework for maintaining industrial harmony and protecting worker rights.

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0% found this document useful (0 votes)
12 views14 pages

Labour Laws

The document outlines key definitions and provisions related to industrial disputes, including lay-offs, retrenchments, strikes, and lock-outs, as governed by the Industrial Disputes Act, 1947. It details the roles of Labour Courts and Tribunals in resolving disputes, the rights and responsibilities of trade unions, and the Maternity Benefit Act's provisions for working women. The document emphasizes the legal framework for maintaining industrial harmony and protecting worker rights.

Uploaded by

rohilla.rohilla1
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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 Appropriate Government:

Refers to the Central Government for industries run by or under its authority,
railways, or specified controlled industries; otherwise, it is the relevant State
Government.
 Award:
The decision (interim or final) on an industrial dispute by a Labour Court, Industrial
Tribunal, or National Industrial Tribunal, including arbitration awards under Section
10A.
 Industry:
Any organized activity between employers and workmen for producing or distributing
goods or services (excluding purely religious or spiritual services).
Excludes:
o Pure agriculture (unless integrated with other industries)
o Hospitals, educational and research institutions
o Charitable organizations
o Khadi or village industries
o Government sovereign functions (e.g., defence, atomic energy)
o Domestic services
o Small professional setups or small co-operative societies/clubs (with fewer
than 10 employees)
 Industrial Dispute:
Any conflict between employers and employees, or among employees, regarding
employment, non-employment, or terms of employment.
 Workman:
Any person (including apprentices) employed for manual, technical, clerical, or
supervisory work for wages, and includes those dismissed in disputes.
Excludes:
o Members of the armed forces
o Police and prison staff
o Employees in managerial or administrative roles
o Supervisory employees earning over ₹1,600/month with primarily managerial
duties

Here’s a much shorter version of your entire text, keeping the key points:

LAY-OFF

 Definition:
Lay-off means the employer’s failure, refusal, or inability to employ workers (whose
names are on the muster rolls) due to reasons like shortage of raw materials, power,
coal, stock accumulation, machinery breakdown, or natural calamity, without
retrenching them.
 Essentials:
o Employer fails, refuses, or is unable to provide work.
o Workers must be on muster rolls.
o Due to shortages, breakdowns, natural calamities, etc.
o Worker must not be retrenched.
 Types of Lay-off:

1. Lay-off for a day (denied work within 2 hours of reporting).


2.Half-day lay-off (denied in the first half, called in second half).
3.Lay-off beyond a day but not retrenchment.
 Compensation:
Workers (not casual or badli) with one year of service are entitled to 50% of basic
wages + dearness allowance during lay-off days (up to 45 days in 12 months).
 Employer's Duties:

oMaintain muster rolls.


oBona fide lay-offs, notified properly.
oLimited detention during stoppage (max 2 hours).
oCommunicate clearly about rejoining work.
oPay compensation per Section 25-C.
 When No Compensation:
o Worker refuses suitable alternative work.
o Worker doesn’t present daily.
o Strike or production slowdown elsewhere in establishment.

RETRENCHMENT

 Definition:
Retrenchment means termination of a workman’s service for any reason except
disciplinary action, voluntary retirement, superannuation, contract expiry, or
continued ill-health.
 Essentials:
o Termination by employer.
o Due to surplus labour, not misconduct.
o For valid business reasons (economy, rationalization, new machinery, etc.).
 Conditions Precedent:
o One month's notice or pay in lieu.
o Retrenchment compensation: 15 days’ average pay for every completed year
of service (over 6 months counts as a full year).
o Notice to the appropriate government.
 Procedure:
o Last-in, first-out principle unless otherwise justified.

Lay-Off Retrenchment
Defined under Section 2(kkk). Defined under Section 2(oo).
Temporary refusal of employment. Permanent termination of employment.
Due to shortage of raw materials,
Due to surplus staff, government policies, losses, etc.
power, finance, etc.
Industry stops functioning during
Industry continues functioning during retrenchment.
lay-off.
A group or all employees may be
Follows "last-in, first-out" principle.
laid-off.
Conditions precedent (notice, compensation, govt.
No conditions precedent needed.
notice) must be followed (Sec. 25-F).
Laid-off workers get lay-off Retrenched workers get retrenchment compensation +
compensation (no gratuity). gratuity.
All laid-off workers are reinstated Re-employment is possible but not mandatory (Sec.
Lay-Off Retrenchment
once lay-off ends. 25-H).

Lock-Out (Sec. 2(l))

 Temporary closure, suspension of work, or refusal to employ, by the employer.


 Used as a coercive tool during trade disputes (opposite of a strike).
 Key elements: temporary action, coercion, industrial setting, dispute-related.

Strike (Sec. 2(q))

 Collective cessation or refusal to work by employees in an industry.

Types of Strikes:

1. General Strike: Mass work stoppage to protest and force negotiations.


2. Stay-in/Sit-down Strike: Workers stay at the workplace but don’t work.
3. Go-Slow Strike: Workers work deliberately slowly to harm production (misconduct,
not legally a strike).
4. Sympathetic Strike: Workers strike to support others’ causes, even without their own
demands (often unlawful).

When Strikes and Lock-Outs Become Illegal (Sec. 22)

 Strikes in Public Utility Services: Illegal if without notice, during notice periods, or
during conciliation.
 Lock-Outs by Employers: Illegal without notice or during conciliation.
 Notice not needed if strike/lock-out already exists, but authorities must be informed
immediately.
 Notices must follow prescribed rules; reports to government required within 5 days.

Penalties for Illegal Strikes and Lock-Outs (Sec. 26)

 Workman: Up to 1 month imprisonment or ₹50 fine, or both.


 Employer: Up to 1 month imprisonment or ₹1000 fine, or both.

Here’s a shortened version of your text:

Labour Courts under Industrial Disputes Act, 1947

To settle industrial disputes, the Act provides for:

 (a) Labour Court


 (b) Industrial Tribunal
 (c) National Industrial Tribunal

The Act also appoints Conciliation Officers, Boards, Courts of Inquiry, and allows arbitration
to resolve disputes. It aims to prevent disputes, penalize unfair labour practices, illegal
strikes, lockouts, and regulate layoffs and retrenchments.

Labour Court

Labour is a concurrent subject under the Constitution, allowing both Central and State
legislation.

Qualifications for Presiding Officer:

 High Court judge, or


 District/additional judge (3 years), or
 Held a judicial office (7 years), or
 Presiding officer of Labour Court (5 years).

Disqualifications (Sec. 7-C):

 Not independent, or
 Over 65 years of age.

Duties:

 Conduct proceedings and submit a written, signed award to the Government.

Functions:

 Handle disputes from the Second Schedule (e.g., dismissal, standing orders,
strikes/lockouts).
 Other duties like arbitration (Sec. 10A), discharge approvals (Sec. 33), grievances
(Sec. 33A), money claims (Sec. 33C(2)), and interpreting settlements (Sec. 36AA).

Powers and Procedures

(a) While trying offences:

 Follows summary procedure like a First-Class Magistrate under CrPC.

(b) While adjudicating disputes:

 Functions as a Civil Court under CPC with powers to:


o Grant full/interim relief
o Adjourn hearings
o Enforce attendance, examine witnesses
o Compel document production
o Issue commissions
o Conduct ex-parte proceedings
o Determine workmen grievances
(c) Under special acts:

 Where procedures aren't prescribed, Labour Courts apply their own methods.

Meaning of Industrial Dispute

An industrial dispute refers to any conflict between employers and employees, or between
workers themselves, relating to employment, non-employment, terms, or conditions of work
(Section 2K, Industrial Disputes Act, 1947).
Disputes can be:

 Individual (e.g., wrongful termination, reinstatement)


 Collective (e.g., wages, bonus, work hours)

Causes of Industrial Disputes

1. Psychological Causes: Authoritarian leadership, personality clashes, strict discipline,


demand for respect.
2. Institutional Causes: Non-recognition of unions, unfair practices, pressure against
union participation.
3. Economic Causes:
o Terms of employment (long hours, night shifts)
o Working conditions (unsafe, uncomfortable environments)
o Wages and benefits (low pay, lack of bonuses)
4. Denial of Legal Rights: Violation of labour laws and agreements.

Results of Industrial Disputes

 Strike: Workers cease work collectively (Section 2(a)).


 Boycott: Workers and public refuse to use company's products.
 Picketing: Workers persuade others not to work, peacefully.
 Gherao: Workers confine employers to press demands.
 Lockout: Employers close workplaces to pressure workers.
 Termination: Employers may dismiss striking workers.

Settlement of Industrial Disputes

Peaceful industrial relations can be maintained through:

1. Works Committees:
Promote harmony and discuss workplace conditions in establishments with 100+
workers.
2. Conciliation Officers:
Appointed by government to mediate and report settlement outcomes or reasons for
failure.
3. Boards of Conciliation:
Investigate disputes, encourage settlement, and report within 2 months.
4. Court of Enquiry:
Investigates disputes and reports to government within 6 months.
5. Labour Courts:
Handle issues like dismissals, standing orders, strikes legality (Second Schedule).
6. Industrial Tribunals:
Adjudicate broader industrial disputes.
7. National Tribunals:
Handle disputes of national importance.
8. Arbitration:
Disputes may be voluntarily settled by an independent arbitrator.

Section 11 – Procedure and Powers of Authorities

1. Procedure: Arbitrators, Boards, Courts, Labour Courts, Tribunals, and National


Tribunals can follow any procedure they find suitable, subject to rules.
2. Inspection Power: These authorities can enter relevant premises after giving notice
to inquire about industrial disputes.
3. Civil Court Powers: They have powers like a civil court, including:
o Summoning and examining witnesses,
o Compelling production of documents,
o Issuing commissions,
o Their proceedings are considered judicial under the Indian Penal Code.
4. Conciliation Officers' Powers: They can summon persons, inspect documents, and
enforce attendance with civil court-like powers.
5. Assessors: Courts and Tribunals may appoint experts to advise on matters under
consideration.
6. Public Servants: All officers mentioned are deemed public servants under the IPC.
7. Costs: Labour Courts and Tribunals can decide on cost distribution of proceedings.
8. Status as Civil Courts: These authorities are treated as civil courts under the CrPC
for certain sections.

Section 11A – Relief in Case of Dismissal

If a dismissal/discharge dispute is referred:

 Labour Courts/Tribunals can cancel unjust dismissals.


 They can order reinstatement or grant other suitable relief, including lesser
punishment.
 Decisions must be based only on existing evidence—no new evidence is allowed.

Definition of Trade Union (Sec. 2(h))


A Trade Union is a combination (temporary or permanent) formed to regulate relations
between workers and employers, workers themselves, or employers, and may impose
conditions on trade conduct. It includes federations of unions.

Registration of Trade Union

Registration is optional but grants legal status and certain immunities.

Procedure (Sec. 3–6):

 Registrar appointed by the government.


 Application by 7+ members in the trade.
 At least 10% or 100 workers (whichever is less) must be members.
 Must include name, address, details of office bearers, rules, and (if over 1 year old)
financial statement.
 Rules must cover objectives, fund use, membership criteria, executive, fees (min.
25p/month), benefits, audits, dissolution, etc.

Registrar Powers (Sec. 7–9):

 Can request more info or name change.


 Must register union if all requirements are met.
 Issues a Certificate of Registration, serving as conclusive proof.

Cancellation (Sec. 10, 27):

Registration can be canceled:

 On union’s request.
 If obtained fraudulently, ceased to exist, or no longer meets criteria.
 On dissolution (must notify registrar within 14 days; registrar oversees fund
distribution if unclear).

Appeals (Sec. 11)

Appeals lie with:

 High Court (Presidency towns),


 Labour Court/Tribunal (jurisdiction),
 Civil court (as appointed).

Rights of Registered Unions

1. Legal Entity (Sec. 13): Can own property, contract, sue/be sued.
2. Political Fund (Sec. 16): Optional, separate fund for political activities.
3. Restraint of Trade Agreements (Sec. 19): Valid if within objectives.
4. Change Name, Amalgamate, Dissolve (Sec. 23–27).
5. General Fund (Sec. 15): For union-related expenses.
6. Right to Bargain (Sec. 28-F): Executive may negotiate with employers.
Duties of a Trade Union

 Spend funds per Sec. 15.


 Maintain inspection-ready books (Sec. 20).
 Notify registrar of changes (Sec. 25).
 Submit annual returns (Sec. 28).

Liabilities

Covers salaries, admin, worker welfare, disputes, education, legal, medical, and insurance
costs.

Disqualification of Office Bearers (Sec. 21A)

 Under 18 years old.


 Convicted of crimes involving moral turpitude with 6+ months jail (within past 5
years).

Immunities of Registered Trade Unions

1. Criminal Conspiracy (Sec. 17): Partial immunity for actions aligned with valid
objectives (no protection for violence).
2. Civil Liability (Sec. 18): Protected when lawfully inducing trade disputes.
3. Restraint of Trade (Sec. 19): Valid if registered; unregistered unions follow general
contract law.
4. Union Leaders: Cannot override employer authority or give direct work instructions.

Maternity Benefit Act - Summary

Objective:
To protect the dignity of motherhood by ensuring full and healthy care for a woman and her
child during maternity.

Key Provisions:

Section 4: Employment Restrictions

 No employer can employ a woman for six weeks after delivery, miscarriage, or
medical termination.
 Pregnant women can request lighter work one month before expected delivery.

Section 5: Right to Maternity Benefit


 Women are entitled to maternity benefits at the average daily wage for the period
before, during, and after delivery.
 Must have worked at least 80 days in the past 12 months (not applicable to immigrant
women in Assam).
 Maximum maternity leave: 26 weeks (8 weeks before delivery).
 Adoptive or commissioning mothers get 12 weeks’ leave.
 Work-from-home options may be available post-maternity leave.

Section 5A & 5B: Applicability with ESIC

 Women continue to receive maternity benefits under this Act until they qualify under
the Employees’ State Insurance Act.

Section 6: Notice for Maternity Benefit

 Written notice to the employer is required; benefits paid before and after delivery on
proof of pregnancy and childbirth.

Section 7: Benefit in Case of Death

 If a woman dies before receiving benefits, payment goes to her nominee or legal heir.

Section 9 & 9A: Special Leaves

 Miscarriage/Medical Termination: 6 weeks’ leave with wages.


 Tubectomy Operation: 2 weeks’ leave with wages.

Section 10: Illness Leave

 One month’s additional paid leave for illnesses due to pregnancy, delivery,
miscarriage, or related operations.

Section 11: Nursing Breaks

 Two nursing breaks daily allowed until the child is 15 months old.

Section 11A: Creche Facility

 Establishments with 50+ employees must provide a crèche.


 Employers must inform women about maternity benefits at the time of appointment.

Section 12: Protection from Dismissal

 Dismissal during maternity leave is prohibited.


 If dismissed, women can appeal within 60 days.

Section 13: No Wage Deductions

No deduction in wages for light work assignments or nursing breaks.


The text you've provided summarizes key sections of the Payment of Wages Act, including
employer responsibilities, wage periods, lawful wage deductions, and modes of payment.
Here's a structured summary for easier understanding and reference:

PAYMENT OF WAGES ACT

1. Responsibility for Payment of Wages [Section 3]

 Primary Responsibility: Every employer is responsible for paying wages to


employees.
 Designated Persons for Payment:
o Factory: Named manager under Factories Act, 1948.
o Industrial/Other Establishments: Person responsible for supervision/control.
o Railways: Nominated person by railway administration.
o Contractor: Person directly under contractor’s charge.
o Others: Person designated by employer.
 Ultimate Responsibility: Employer is liable if designated person or contractor fails to
pay.

2. Fixation of Wage Periods [Section 4]

 Wage periods must be fixed by responsible person.


 Maximum wage period: 1 month.

3. Time of Payment [Section 5]

 < 1000 employees: Pay by 7th day after wage period.


 > 1000 employees: Pay by 10th day after wage period.
 On Termination: Pay within 2 working days.
 Payments must be made on working days.
 Special provision for dock/mining workers: Pay within 7 days of final account
completion.

4. Mode of Payment [Section 6]

 Wages must be paid in:


o Current coins or currency notes, or
o Cheque/Bank transfer (with written consent).

5. Lawful Deductions [Section 7 & Following Sections]

✅ Authorized Deductions Include:

1. Fines (Section 8) – For specified acts/omissions approved by government.


2. Absence from Duty (Section 9).
3. Damage/Loss of Goods due to employee's negligence.
4. House Accommodation – Supplied by employer/govt/authorized housing board.
5. Amenities & Services – If approved by government.
6. Recovery of Advances – Including TA/conveyance.
7. Loans from Welfare Funds – With government-approved rules.
8. House-Building Loans – With interest & under rules.
9. Income Tax – As per Income Tax Act.
10. Court Orders – As mandated by competent authority.
11. Provident Fund – As per applicable PF laws.
12. Co-operative Society Deductions – As approved by government.
13. LIC Premiums, Govt Securities, Savings Schemes – With written consent.
14. Welfare Fund Contributions – By employer or trade union (with approval &
consent).
15. Trade Union Membership Fees – For registered trade unions (with consent).

❌ Not Considered Deductions:

 Loss of wages due to:


o Suspension,
o Withholding of increment/promotion,
o Reduction in rank or pay scale.

📘 Objective of the Amendment

 To remove ambiguities and strengthen grievance redressal mechanisms.

Here is the English translation of the shortened and simplified version of the Workmen
Compensation Act, 1923 (now Employees’ Compensation Act, 1923):

COMPENSATION

🎯 Objective:

 To provide compensation to employees in case of injury or accident during


employment.
 To ensure financial security for the employee after a work-related injury.
 It is the employer’s responsibility to support the injured worker during employment.

📌 Scope and Applicability:

 This Act applies across India.


 It includes employees working in factories, mines, docks, drivers, mechanics, and
aircraft crew (as mentioned in Schedule II).
 It does not apply to armed forces or employees covered under the ESI Act.

⚖️Section 3: Employer’s Liability


The employer is liable to pay compensation if:

 The injury occurred during employment.


 The disease is occupational (e.g., lung disease due to dust, illness from pesticides).

❌ Employer is not liable if:

 The injury causes disablement for less than 3 days.


 The employee was:
o Under the influence of alcohol/drugs.
o Disobeying safety instructions.
o Willingly removed safety devices.

🤕 Personal Injury:

 Only physical injuries are compensated.


 Mental or psychological injuries are not covered.

⚙️Accident and Course of Employment:

 The accident must occur while performing official duties, not during personal tasks.
 The injury must result from job-related risks or conditions.

💰 Compensation Amount (Section 4):

Situation Compensation
50% of monthly wage × relevant factor or ₹1,20,000
Death
(whichever is more)
Permanent Total 60% of monthly wage × factor or ₹1,40,000 (whichever is
Disablement more)
Permanent Partial
Based on percentage loss of earning capacity
Disablement
Temporary Disablement Half-monthly payment equal to 25% of monthly wages

 An additional ₹2,500 is provided for funeral expenses in case of death.

📝 Procedure to Claim Compensation:

1. Notice: Inform the employer or write in the notice book.


2. Application: Submit claim to the Commissioner within 2 years.
3. Occupational Disease: Date of illness onset is considered as the date of accident.
Here's a shortened and simplified version of your text on the Employees' Provident Fund
(EPF):

🔹 Employees’ Provident Fund (EPF) – Summary

EPF is a welfare scheme under the Employees’ Provident Fund and Miscellaneous
Provisions Act, 1952, designed to provide financial security to employees after retirement,
during unemployment, or in case of death (benefits go to dependents).

📌 Key Features:

 Both employer and employee contribute monthly to the PF account.


 Interest earned is added to the account and is tax-free (EEE benefit).
 Amount is available upon retirement, resignation, or death (subject to conditions).

🏛️Main Schemes Under the Act:

1. Employees’ Provident Fund Scheme, 1952 – Provides retirement savings.


2. Employees’ Pension Scheme, 1995 – Offers pension benefits (retirement, disability,
or to family on death).
3. Employees’ Deposit-Linked Insurance Scheme, 1976 (EDLI) – Provides lump-sum
insurance in case of death during service

⚙️Applicability:

 Mandatory for establishments with 20 or more employees.


 Can also apply to smaller firms if notified by the government.
 Applies to most workers earning up to ₹15,000/month, excluding exempt employees.

✅ Eligibility:

 All wage-earning employees, including those through contractors or not under the
Apprentices Act.
 Mandatory if monthly salary ≤ ₹15,000.

💳 Withdrawals:

 Full withdrawal: On retirement (58+ years), after 2+ months of unemployment, or


death (by nominee).
 Partial withdrawal: For education, marriage, medical needs, home loan, housing,
natural calamity, or one year before retirement.

🎁 Benefits
 Safe savings with employer contribution.
 Pension and insurance cover.
 Tax-free interest and maturity amount.
 Fund can be transferred when changing jobs.

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