• Industrial Jurisprudence and Labour

• Subject – Labour and Industrial Law I

• Semester VII
• Unit 1
• Curated by – Prof. Shreya Madali
Topic Contents (As per course
outline)
• Labour Policy in India
• Industrial Revolution in India
• Advantages and Evils of Industrialization - Economic Evils, Social Evils; Labour Problems
• Principles of Labour Legislations
• The role of ILO

- Under the Constitution of India, Labour is a subject in the Concurrent List where both the
Central & State Governments are competent to enact legislations subject to certain matters
being reserved for the Centre.

- There are 40 labour acts which come under the Ministry of Labour and Employment
- For ensuring workers’ right to minimum wages, the Central Government has
amalgamated 4 laws in the Wage Code, 9 laws in the Social Security Code, 13 laws in the
Occupational Safety, Health and Working Conditions Code, 2020 and 3 laws in the
Industrial Relations
Code.

Organisations under the Ministry –

1. Chief Labour Commissioner

- The Organization of the Chief Labour Commissioner known as Central Industrial

Relations Machinery was set up in April, 1945 in pursuance of the recommendation of the
Royal Commission on Labour in India and was then charged mainly with duties of
prevention and settlement of industrial disputes, enforcement of labour laws and to promote
welfare of workers in the undertakings falling within the sphere of the Central Government.
2. Directorate General of Employment

- The Directorate General of Employment (DGE) in Ministry of Labour is the apex

organization for development and coordination at National level for the programmes
relating to National Employment Services.

- It is located at New Delhi. Employment service is operated through a countrywide network

of Employment Exchanges. Development of these programmes at national level, particularly
in the area concerning uniform policies, standards and procedures are the responsibility of
the
DGE.
- But, day-to-day administration and overall control of Employment Exchanges / Career
Centres rest with the respective State Governments/ Union Territories Administrations. DGE
is headed by Additional Secretary (Labour & Employment) and Director General of
Employment.

3. Directorate General Factory Advice Service and Labour Institutes (DGFASLI)

- The office of the Chief Adviser of factories, which is now called Directorate General,
Factory Advice Service and Labour Institutes, was setup in 1945 with the objective of
advising Central And State Governments on administration of the Factories Act and
coordinating the factory inspection services in the States.

- Headquarters situated in Mumbai

- It serves as a technical arm to assist the Ministry in formulating national policies on
occupational safety and health in factories and docks. It also advises factories on various
problems concerning safety, health, efficiency and well - being of the persons at workplaces.

4. Labour Bureau

- Labour Bureau is responsible for the collation, collection and publication of statistics and
related information on wages, earnings, productivity, absenteeism, labour turn-over,
industrial relations, working and living conditions and evaluation of working of various
labour enactments etc.

- It is a storehouse of important economic indicators like Consumer Price Index Numbers

for Industrial, Agricultural and Rural Labourers; wage rate indices and data on industrial
relations, socio-economic conditions in the organized and unorganised sector of industry etc.

- The functions/activities of Labour Bureau can be classified under three major heads:
• Labour Intelligence
• Labour Research
• Monitoring and evaluation studies under the Minimum Wages Act 1948.
5. Directorate General of Mines Safety (DGMS)

- isIndiathe inRegulatory Agency under the Ministry of labour and employment, Government of
matters pertaining to occupational safety, health and welfare of persons
employed in
mines (Coal, Metalliferous and oil-mines). The organization has its headquarters at
Dhanbad (Jharkhand) and is headed by Director-General of Mines Safety.

- Under the Constitution of India, safety, welfare and health of workers employed in
mines are the concern of the Central Government (Entry 55-Union List-Article 246).
The objective is regulated by the Mines Act, 1952 and the Rules and Regulations framed
there
 under. These are administered by the Directorate-General of Mines Safety (DGMS), under
the Union Ministry of Labour & Employment.

6. Employees State Insurance Scheme of India - ESIC

- isprotection
a multidimensional social security system tailored to provide socio-economic
to worker population and their dependants covered under the scheme.

- Besides full medical care for self and dependants, that is admissible from day one of
insurable employment, the insured persons are also entitled to a variety of cash benefits in
times of
physical distress due to sickness, temporary or permanent disablement etc. resulting in loss of
earning capacity, the confinement in respect of insured women, dependants of insured
persons who die in industrial accidents or because of employment injury or occupational
hazard are entitled to a monthly pension called the dependants benefit.

7. Employees Provident Fund Organisation

- The Constitution of India under "Directive Principles of State Policy" provides that the
State shall within the limits of its economic capacity make effective provision for
securing the right to work, to education and to public assistance in cases of
unemployment, old-
age, sickness & disablement and undeserved want.

8. Dattopant Thengadi National Board for Workers Education and

Development(DTNBWED)

- is an autonomous body under the Ministry of Labour & Employment, Government of

India. It is registered under the Societies Registration Act, 1860. Started in 1958, the
Workers Education Scheme in India has been playing a very significant role in our
national
development; creating an enlightened and disciplined work force and bringing about
desirable behavioral changes in our workforce in the organized, unorganized and rural
sectors.

- It gets grants-in-aid from the Ministry of Labour & Employment to operate its activities. The
Scheme of Workers Education aims at achieving the objectives of creating and increasing
awareness and educating the workforce for their effective participation in the socio-economic
development of the country.

- The Board has its Headquarters at New Delhi. It operates through a network of 50 Regional
Directorates located at various parts of the country.

9. V.V. Giri National Labour Institute

- isanda premier national institution involved with research, training, education, publication
consultancy on labour related issues.
- The Institute, established in 1974, is an autonomous body of the Ministry of Labour and
Employment, Government of India.
Indian Labour Archives
• The Archives of Indian Labour was set up in July, 1998 as a collaborative project of V.V.
Giri National Labour Institute and the Association of Indian Labour Historians. The Archives
of Indian Labour is dedicated to the cause of preserving and making accessible the fast
depleting documents on the working class with the belief that, "Archive is to society what
memory is to human beings"

10. Central Government Industrial Tribunal - cum- Labour Court/ National Industrial
Tribunal

- are set up under the provisions of Industrial Disputes Act, 1947 for adjudication of industrial
disputes arising in Central Sphere.

- After the enactment of Finance Act, 2017, the powers to settle the Appeals arising out of
EPF&MP Act, 1952 have also been entrusted upon these Tribunals.

- There are 22 CGIT-cum-LCs set up in various States. These Tribunals are located at
Dhanbad, Mumbai, New Delhi and Chandigarh (two courts each) and one each at Kolkata,
Jabalpur, Kanpur, Nagpur, Lucknow, Bangalore, Jaipur, Chennai, Hyderabad,
Bhubaneswar,
Ahmedabad, Ernakulam, Asansol and Guwahati.

- The CGIT-cum-LC No.1 Mumbai and CGIT-cum-LC, Kolkata also function as National
Tribunals.

- These CGIT-cum-LCs are headed by Presiding Officers who are selected from amongst High
Court judges(serving/retired) or Disttt./Addl. Distt. Judges(serving/retired).

- NITs are headed by Presiding Officers who are selected from among High Court Judges
(Retd./Serving).

The CGIT-cum-LCs have been set up with the objective of maintaining peace and harmony
in the industrial sector by quick and timely disposal of industrial disputes through
adjudication so that industrial growth does not suffer on account of any widespread
industrial unrest. Moreover, due to increasing awareness about their rights and Labour
laws among the workers, there is a gradual increase in the number of cases being filed
under the
I.D. Act before the CGIT-cum-LCs. Restructuring of workforce on account of application
latest technology in the industries has also resulted in retrenchment, declaration of surplus
etc. which has further lead to an increase in workers’ grievances.

- Labour law also known as employment law is the body of laws, administrative rulings, and
precedents which address the legal rights of and restrictions on, working people and their
organizations.
- Asemployees.
such, it mediates many aspects of the relationship between trade unions, employers and

- Inmembers
other words, Labour law defines the rights and obligations as workers, union
and employers in the workplace.

- Generally, labour law covers:

• Industrial relations – certification of unions, labour-management relations, collective
bargaining and unfair labour practices
• Workplace health and safety
• Employment standards, including general holidays, annual leave, working hours, unfair
dismissals, minimum wage, layoff procedures and severance pay.
- There are two broad categories of labour law.
• collective labour law relates to the tripartite relationship between employee, employer
and union.
• individual labour law concerns employees' rights at work and through the contract for
work.

Note - The labour movement has been instrumental in the enacting of laws protecting labour
rights in the 19th and 20th centuries. Labour rights have been integral to the social and
economic development since the industrial revolution.
History

- Labour law arose due to the demands of workers for better conditions, the right to organize,
and the simultaneous demands of employers to restrict the powers of workers in many
organizations and to keep labour costs low. Employers' costs can increase due to workers
organizing to win higher wages, or by laws imposing costly requirements, such as health and
safety or equal opportunities conditions.

- Workers' organizations, such as trade unions, can also transcend purely industrial disputes
and gain political power - which some employers may oppose.

- The state of labour law at any one time is therefore both the product of, and a component of,
struggles between different interests in society.

- International
labour issues.
Labour Organisation (ILO) was one of the first organisations to deal with

- The ILO was established as an agency of the League of Nations following the Treaty of
Versailles, which ended World War I.

- In Great Britain, the Whitley Commission, a subcommittee of the Reconstruction

Commission, recommended in its July 1918 Final Report that "industrial councils" be
established throughout the world.
Purpose of labour legislation
Labour legislation that is adapted to the economic and social challenges of the modern world of
work fulfils three crucial roles:
• it establishes a legal system that facilitates productive individual and collective
employment relationships and therefore a productive economy;
• by providing a framework within which employers, workers and their representatives
can interact with regard to work-related issues, it serves as an important vehicle for
achieving harmonious industrial relations based on workplace democracy;
• it provides a clear and constant reminder and guarantee of fundamental principles and
rights at work which have received broad social acceptance and establishes the
processes through which these principles and rights can be implemented and enforced.
Labour legislation can only fulfills these functions effectively if it is responsive to the conditions
on the labour market and the needs of the parties involved. The most efficient way of ensuring
that these conditions and needs are taken fully into account is if those concerned are closely
involved in the formulation of the legislation through processes of social dialogue. The
involvement of stakeholders in this way is of great importance in developing a broad basis of
support for labour legislation and in facilitating its application within and beyond the formal
structured sectors of the economy
Evolution of Labour law in India

- The law relating to labour and employment is also known as Industrial law in India.
- The history of labour legislation in India is interwoven with the history of British
colonialism. The industrial/labour legislations enacted by the British were primarily intended
to protect the interests of the British employers. Considerations of British political economy
were naturally
paramount in shaping some of these early laws.

- Thus came the Factories Act. It is well known that Indian textile goods offered stiff
competition to British textiles in the export market and hence in order to make Indian
labour costlier the Factories Act was first introduced in 1883 because of the pressure
brought on the British parliament by the textile magnates of Manchester and
Lancashire. Thus India received the first stipulation of eight hours of work, the abolition
of child labour, and the restriction of women in night employment, and the introduction of
overtime wages for work beyond eight hours.

- The earliest Indian statute to regulate the relationship between employer and his
workmen was the Trade Dispute Act, 1929. Provisions were made in this Act for
restraining the rights of strike and lock out but no machinery was provided to take care of
disputes. The
original colonial legislation underwent substantial modifications in the post-colonial era
because independent India called for a clear partnership between labour and capital.

- The content of this partnership was unanimously approved in a tripartite conference in

December 1947 in which it was agreed that labour would be given a fair wage and fair
working conditions and in return capital would receive the fullest co-operation of
labour for
uninterrupted production and higher productivity as part of the strategy for national economic
development and that all concerned would observe a truce period of three years free from
 strikes and lockouts. Ultimately the Industrial Disputes Act (the Act) brought into force
on 01.04.1947 repealing the Trade Disputes Act 1929 has since remained on statute
book.

- The Industrial revolution opened its door in India when the first steam-powered cotton
mill in Asia was established at Bombay in 1854.

- As the result this was followed up by the establishment of various industries and work mills
which caused huge increase in the labourers at all these places. The handicraft system was
almost at stake as every other person was attracted towards the industries due to expectation
of good lively hood and healthy wages.

- However, the things didn't go as planed for the working class as it was the time of
Crown Rule on India hence the superiors of the industries focused on filling up the
pockets of the British/Queen and rather the people of work class were neglected
completely.

- There were various trade unions formed after the beginning of industrial period; like
the Trade Unions came-up in the Calcutta in 1854, with the establishment of Jute Mills.
However, the first factory Commission was set-up in 1879-80 which focused on the
problems of the industrial workers.

- First trade union namely "Bombay Millhands Association" under leadership of

Narayan Meghji Lokhande was formed in 1884.

- Later on in 1881, The first Indian Factory Act was passed with the key points as follows
:

• The children with the age less than 7 could not work in the industries.
• Children between the age 7-12 would not work more than 9 hours a day.
• Children would also be provided 4 holidays in a period of one month.
• The act also provides the safety against the dangerous machinery.
• Later the second Indian Factory Act was passed in the year 1891 which provided weekly
holiday for all the workers. It also fixed working hours for women to 11 hours per day.
- After the implementation of Act Other trade unions were also formed and some of them are as
Ahmedabad Weavers (1895), Jute Mills, Calcutta (1896), Bombay Mill workers (1897) Union.

- Ahead of this the first organized Trade Union in India the Madras Labour Union was
established in the year 1918.

- In 1923 The Workmen Compensation Act was passed .

- Later many acts were passed namely The Trade Union Act,1926; The Industrial dispute
Act,1926; which cherished the growth of Industries and trade unions.
Advantages of industrialization:

i) Industry development has resulted in large-scale manufacturing of products that are available to
consumers at significantly lower prices.
ii) There is a time and labour saving.
iii) People's living standards have risen significantly as a result of industrialization.
iv) There are a variety of consumer goods alternatives available. Customers have a wide range of
options.
v) There are ways to manage and track the enormous waste of human resources that could be put
to better use.

Disadvantages of industrialization:
i) The immediate consequence is the loss of many natural resources, as well as contamination of
soil, water, and air.
ii) Noise emissions, dust, and smoke have been added as a result of increased vehicular traffic,
the launch of spaceships and rockets by competing nations, and the constant running of machines
in factories.
iii) Human wellbeing and enjoyment have been harmed as a result of the generally filthy and
unsafe conditions in and around industrial sites. Diseases that have never been seen before are
sweeping the
globe.
iv) In factories, there have been cases of child Labour.
v) The rich's exploitation of the poor has increased violence, alienation, and a sense of loneliness
among the poor.
International Labour Organization

- isuniversal
the United Nations agency for the world of work. It was founded on the conviction that
and lasting peace can be established only if it is based on social justice.

- The ILO brings together governments, employers and workers from its 187 member states in
a human-centred approach to the future of work based on decent employment creation, rights
at work, social protection and social dialogue.

- The ILO’s tripartite membership drafts, adopts and monitors the implementation of
international labour standards on key world of work issues – ILO Conventions and
Recommendations.

- The ILO undertakes research and data collection across the range of world of work topics. It
publishes flagship reports and a wide range of publications and working papers.

- Itssourced
globally renowned set of statistical databases are maintained and updated with nationally
labour market data.

- The ILO manages a wide range of development cooperation projects in all regions of the
world. Realized in partnership with donor countries and organizations, these projects aim to
create the conditions for delivery of the ILO decent work agenda.

- The ILO has its headquarters in Geneva, Switzerland, and field offices in more than 40
countries.
- The International Labour Conference meets once a year to discuss pressing world of work
issues, adopt new international labour standards and approve the ILO’s work plan and
budget.

- The Governing Body, the Organization’s executive council, meets three times a year in Geneva.
International Labour Organization (ILO) – Structure
• The basis of the ILO is the tripartite principle. The ILO comprises the International Labour
Conference, the Governing Body, and the International Labour Office.
• International Labour Conference:
• The progressive policies of the ILO are set by the International Labour Conference.
•The Conference is an annual event, which happens in Geneva, Switzerland. The
conference brings together all the representatives of the ILO.
• Function: It is a panel for the review of the important issues regarding labor.
• Governing Body:
• The Governing Body is the executive body of the International Labour Organization.
• The governing body meets in Geneva. It meets three times annually.
• The Office is the secretariat of the Organization.
• It is composed of 56 titular members and 66 deputy members.
• Functions:
• Makes decisions regarding the agenda and the policies of the International
Labour Conference.
• It adopts the draft Programme and Budget of the Organization for submission
to the Conference.
•Election of the Director-General.
• International Labour Office:
• It is the permanent secretariat of the International Labour Organization.
• Functions: It decides the activities of ILO and is supervised by the Governing Body
and the Director-General.
• The ILO member States hold periodic regional meetings to discuss the relevant
issues of the concerned regions.
• Each of the ILO’s 183 Member States has the right to send four delegates to the
Conference: two from the government and one each representing workers and
employers, each of whom may speak and vote independently

Functions
• It adopts international labour standards. They are adopted in the form of conventions. It also
controls the implementation of its conventions.
• It aids the member states in resolving their social and labour problems.
• It advocates and works for the protection of Human rights.
• It is responsible for the research and publication of information regarding social and labour
issues.
• The Trade Unions play a pivotal role in developing policies at the ILO, thus the Bureau for
Workers’ Activities at the secretariat is dedicated to strengthening independent and
democratic trade unions so they can better defend workers’ rights and interests.
• The ILO also assumes a supervisory role: it monitors the implementation of ILO
conventions ratified by member states.
• The implementation is done through the Committee of Experts, the International
Labour Conference’s Tripartite Committee and the member-states.
• Member states are obligated to send reports on the development of the
implementation of the conventions they have approved.
• Registration of complaints: The ILO registers complaints against entities that are violating
international rules.
• The ILO, however, does not impose any sanctions on the governments.
• Complaints can also be filed against member states for not complying with ILO
conventions that have been ratified.
• International Labour Standards: The ILO is also responsible for setting International
Labour Standards. The international labour conventions which are set by the ILO are ratified
by the member states. These are mostly non-binding in nature.
• But once a member state accepts conventions, it becomes legally binding. The
conventions are often used to bring national laws in alignment with international
standards.
• ILO Global Commission on the Future of Work: The formation of an ILO Global
Commission on the Future of Work marks the second stage in the ILO Future of Work
Initiative.
• The Commission outlines a vision for a human-centered agenda that is based on
investing in people’s capabilities, institutions of work and decent and sustainable
work.
• It also describes the challenges caused by new technology, climate change, and
demography and appeals for a collective global response to the disturbances being
caused in the world of work.

• India is a founder member of the International Labour Organization, which came into
existence in 1919. At present the ILO has 187 Members.
• A unique feature of the ILO is its tripartite character. The membership of the ILO ensures the
growth of the tripartite system in the Member countries.
• At every level in the Organization, Governments are associated with the two other social
partners, namely the workers and employers.
• All the three groups are represented on almost all the deliberative organs of the ILO and
share responsibility in conducting its work. The three organs of the ILO are:
• International Labour Conferences: - General Assembly of the ILO – Meets every year in the
month of June.
• Governing Body: - Executive Council of the ILO. Meets three times in a year in the months
of March, June and November.
• International Labour Office: - A permanent secretariat.
• The work of the Conference and the Governing Body is supplemented by Regional
Conferences, Regional Advisory Committees, Industrial and Analogous Committees,
Committee of Experts, Panels of Consultants, Special Conference and meetings, etc.

INTERNATIONAL LABOUR CONFERENCE

- Except for the interruption caused by the Second World War, the International Labour
Conference (ILC) has continued, since its first session in 1919 to meet at least once a year.

- The Conference, assisted by the Governing Body, adopts biennial programme and budget,
adopts International Labour Standards in the form of Conventions and Recommendations and
provides a forum for discussing social, economic and labour related issues.

- India has regularly and actively participated in the Conference through its tripartite
delegations.

- The Conference has so far had 4 Indian Presidents viz., Sir. AtulChatterjee (1927), Shri
Jagjivan Ram, Minister for Labour (1950), Dr.Nagendra Singh, President, International Court
of Justice (1970) and Shri RavindraVerma, Minister of Labour and Parliamentary Affairs
(1979).

- There have also been 8 Indian Vice Presidents of the International Labour Conference, 2
from the Government group, 3 from the Employers and 3 from the Workers’ Group. Indians
have chaired the important Committees of the Conferences like Committee on
Application of
Standards, Selection Committee and Resolutions Committee.

2. GOVERNING BODY

- The Governing Body of the ILO is the executive wing of the Organization. It is also tripartite
in character. Since 1922 India has been holding a non-elective seat on the Governing Body as
one of the 10 countries of chief industrial importance. Indian employers and workers’
representatives have been elected as Members of the Governing Body from time to time.

- Four Indians have so far been elected Chairmen of the Governing Body. They are Sir Atul
Chatterjee (1932-33), Shri Shamal Dharee Lall, Secretary, Ministry of Labour (1948-49),
Shri
S.T. Merani, Joint Secretary, Ministry of Labour (1961-62) and Shri B.G. Deshmukh,
Secretary, Ministry of Labour (1984-85).

- Earlier, the Governing Body of ILO functioned through its various Committees. India was a
member of all six committees of the Governing Body viz. (i) Programme, Planning &
Administrative; (ii) Freedom of Association; (iii) Legal Issues and International Labour
Standards; (iv) Employment & Social Policy; (v) Technical Cooperation and (vi) Sectoral
and Technical Meetings and Related issues.
- Now the Governing Body of ILO functions through its various Sections and India takes part
in all the proceedings of the Sections during the sessions of the Governing Body viz.
Institutional Section (INS); Policy Development Section(POL);Legal Issues and
International Labour
Standards Section (LILS); Programme, Financial and Administrative Section(PFA);High-
level Section(HL); and Working Party on the Functioning of the Governing Body and the
International Labour Conference (WP/GBC)

3. THE INTERNATIONAL LABOUR OFFICE

- The International Labour Office, Geneva provides the Secretariat for all Conferences and
other meetings and is responsible for the day-to-day implementation of decisions taken by
the Conference, Governing Body etc.

- Indians have held positions of importance in the International Labour Office.

INTERNATIONAL LABOUR STANDARDS - ILO CONVENTIONS

The principal means of action in the ILO is the setting up the International Labour Standards in
the form of Conventions and Recommendations. Conventions are international treaties and are
instruments, which create legally binding obligations on the countries that ratify them.
Recommendations are non-binding and set out guidelines orienting national policies and
actions. The approach of India with regard to International Labour Standards has always been
positive. The ILO instruments have provided guidelines and a useful framework for the evolution
of legislative and administrative measures for the protection and advancement of the interest of
labour. To that extent the influence of ILO Conventions as a standard of reference for labour
legislation and practices in India, rather than as a legally binding norm, has been significant.
Ratification of a Convention imposes legally binding obligations on the country concerned and,
therefore, India has been careful in ratifying Conventions. It has always been the practice in India
that we ratify a Convention when we are fully satisfied that our laws and practices are in
conformity with the relevant ILO Convention. It is now considered that a better course of action
is to proceed with progressive implementation of the standards, leave the formal ratification for
consideration at a later stage when it becomes practicable. We have so far ratified 41 Conventions
of the ILO, which is much better than the position existing in many other countries. Even where
for special reasons, India may not be in a position to ratify a Convention, India has generally
voted in favour of the Conventions reserving its position as far as its future ratification is
concerned.
• Introduction to Industrial Relations Code
• Subject – Labour and Industrial Law I
• Semester VII
• Unit 2

Course Outline Contents –

- Historical Aspect of Industrial Relations Code

- Scope of Industrial Code,2020
- Objective of Industrial Code,2020
Definitions

- Industry
- Industrial Dispute
- Employer
- Employee
- Worker
- Strike and Lock-out
- Lay-off and Retrenchment
- Trade Union
- Standing Orders
- The Industrial Relations Code, 2020 (“IRC 20”) has been introduced as a part of the labour
legislations consolidations, in terms of the recommendation of the Second National
Commission on Labour (2002).

- Accepting their recommendations, the Ministry of Labour and Employment has consolidated
labour code in to 4 labour codes of
(i) Industrial Relations
(ii) Wages
(iii) Social Security
(iv) Welfare and Safety.
- The IRC 20 consolidates and amends the laws relating to Trade Unions, conditions of
employment in industrial establishment or undertaking, investigation and settlement of
industrial disputes and for matters connected therewith or incidental thereto.

- Itconditions,
governs important aspects of the employer-employee relationship such as working
collective bargaining, re-skilling etc.

- While the Wages Code, 2019 was passed by the parliament in 2019, the Industrial Relations
Code, along with the two other codes on social security and safety, were referred to the
Standing Committee.

- Upon incorporating changes suggested by the Standing Committee, the Industrial Relations
Code, 2020 was introduced and passed by the Parliament

Salient features of Industrial Relations Code, 2020

• The definition of worker has been broadened and now includes working journalists as
defined in Section 2(f) of the Working Journalists and Other Newspaper Employees
(Conditions of Service) and Miscellaneous Provisions Act of 1955 and employees of
Sales promotion as defined in Section 2(d) of the Sales Promotion Employees (Terms of
Service) Act 1976. Persons employed in a supervisory capacity earning less than Rs.
18,000 per month (or any amount notified by the Central Government) is included in the
definition of “worker”.
• Fixed-term employment has a legal basis, unlike the current scheme in which video
notifications from various state governments were introduced. It allows employers
greater flexibility to hire in line with supply and demand. Fixed-term employees are
eligible to receive tips on a pro-rata basis if they serve for one year under their
respective employment contracts. They are given equality with permanent employees
concerning working conditions, wages, allowances, and other benefits.
• The applicability threshold of the Labour Disputes (Regulation) Act 1947 under the
Labour Relations Bill 2019 had been established in establishments employing 100 or
more employees. However, the 2020 Industrial Relations Code has raised this
threshold to 300 and has given the “appropriate government” the power to exempt
any industrial establishment or class thereof from all or some of the provisions of
the Code.

4. Regarding trade union law, the Code establishes that when there is more than one union in an
establishment, the status of the only bargaining union will be granted to the one with 51% of
the employees as members. This threshold is a marked decrease from the 75% threshold that
was established in the 2019 bill.
5. There is also a provision for the establishment of the constitution of a bargaining council
where there is not a single union that meets the 51% threshold as mentioned above. In such
cases, the council is made up of representatives of the various unions as long as they have at least
20% of employees as members.
6. Concerning layoffs and reductions in personnel, Section 65 applies to industrial
establishments that are not included in Chapter X of the Code, which is essentially Chapter VB
of
the Industrial Dispute Act of 1947. It applies to industrial establishments in which more than
fifty workers are working on average per working day during the previous calendar year.
7. Section 77 of Chapter X applies to industrial establishments in which no less than 300 workers
or a greater number of workers than may be specified by the corresponding government, were
employed on average per working day in the previous 12 months. Therefore, the establishments
included in this provision must obtain prior permission from the Government for layoffs,
staff reductions and closure.
8. The Code forbids strikes and immediate lockouts in all companies and therefore no
company can strike contrary to the contract 60 days before the strike or the expiry of a
date specified in the strike notification. Strikes are also prohibited while mediation is in
progress and within 7 days of the conclusion of such a process. Strikes are also prohibited while
proceedings are pending before a labour court or 60 days after they are concluded. The Industrial
Disputes Act of 1947 contained similar provisions, but only applied to public utilities.

SCOPE & APPLICABILITY

The Code is designed to consolidate & amend the laws regarding Trade Unions, conditions of
employment in Industrial establishment or undertaking, and sleek settlement of industrial
disputes. The code regulates the subsequent areas:

- Registration of Trade Union

- Cancellation of Trade Union
- Alteration of Name of Trade Union
- Formation of Work Committee
- Incorporation of a Registered Trade Union
- Recognition of Negotiating Union
- Preparation of Standing Order
- Register of Standing Order
- Constitution of Industrial Tribunal
- Illegal Strikes and Lock-outs
- Procedure for Retrenchment and Re-employment of Retrenched Worker
- Compensation to Workers in case of Transfer of Establishment
- Prohibition of Lay-off
- Closure of an Industrial Establishment
Definition of industries
It excludes the following categories of workplaces:
• Organisations offering charity, social, or philanthropic service.
• Organisations that are under the control of the Government specifically dealing with
defence research, atomic energy and space exploration.
• Organisations specifically excluded by the central government, if any.

Regardless of whether an activity is pursued with a profit motive or involves capital investment,
the Code defines "industry" as any systemic activity between an employer and employees
for the production, supply, or distribution of goods or services with the goal of satisfying
human wants or wishes that are not merely spiritual or religious.

Definition of industrial dispute

• Any differences of opinion between employees and employers because of employee
retrenchment, dismissal, or termination.
• The worker can appeal this with the governing body (also called the industrial tribunal)
within 45 days from the date of retrenchment or termination.

Standing orders

- Standing orders mean orders relating to matters set out in the First Schedule, wherein the
standing orders are set to facilitate the standards at the plant level, to regulate industrial
relations.

- This regulates the conditions of employment, grievances, misconduct etc. of the workers
employed in the Industry.

- Section 2(zj) of the Industrial Relations Code, 2020 defines standing orders as “orders
relating to matters set out in the First Schedule”

- As regards the First Schedule, it states 11 matters which are as follows:

• Classification of workers;
• Mechanism of intimidating attendance, wage rates, etc;
• Shift working;
• Attendance and late coming;
• Conditions and procedure for leave application;
• Requirement to enter premises by certain gates, and liability to search;
• Non-functioning of certain areas and related rights and liabilities;
• Conditions relating to termination;
• Misconduct related provisions;
• Mechanism for redressal; and
• Any matter notified by the appropriate government.

• As regards Certified Standing Orders, a draft standing order is prepared by the employer
based on First Schedule which is then sent to the Certifying Officer for certification. If the
draft standing order is successfully certified, such standing order is enforced in the industrial
establishment.

- the Code provides that any industrial establishment can even adopt the model standing orders
and can inform the same to the Certifying Officer following Section 30(3) of the Code. These
model standing orders are prepared by the Central Government as provided in Section 29(1)
of the Code

- The 2019 bill fixed the employee threshold for issuing standing orders at 100, but the 2020
revised bill increased this threshold from 100 to 300.

For all organizations employing a minimum of 300 employees, standing orders should be
passed during the following topics:

• How the workers are classified according to employment type (permanent, fixed
term, contractors, temporary workers, and apprentices).

• The process that the organization is going to follow to communicate changes to the
employees including work period, hours of work, paydays and wage rates, shifts,
attendance, and rules for late coming.
• Conditions, rules, and approving authorities for leaves and holidays.
• Rules for termination of employment, and communication of the news to
employees, extending to suspensions of work because of misconduct.

• Remedy measures for employees against unfair treatment and exactions by the
employer.

- Under the 2019 bill, employers had to follow the rules set down by the standing orders even
if their employee strength went below 100.

- To ease the compliance process, the 2020 bill has removed this rule.

- An employer shall be required to prepare the draft standing orders, basis the model standing
order of the Central Government, within 6 months from the date of commencement of the
code
in consultation with the recognised negotiating unions or members of the negotiation council
with respect to the same. The same shall be certified by the certifying officer
- IRC 20 provides that the provisions with respect to standing orders shall apply to
establishments having had three hundred or more employees on any day of the preceding
twelve months.

Employee layoffs and retrenchment

- The code defines layoffs as the inability of an employer to continue giving employment—
due to shortage of resources, materials or power, breakdown of machinery or natural
calamities—for employees in their payroll.

- The code defines retrenchment as the employer deciding to terminate the services of the
employee for any reason excluding disciplinary action.

- Both layoff rules and retrenchment rules do not apply to organisations with fewer than 50
employees.

- The code has also taken a stricter stand on the severance wages for employees laid off or
retrenched. If an employee has completed one year of continuous service with the
organisation, 50% of basic wages and dearness allowance has to be paid if the employee is
laid off. For
retrenchment, the employee should be given a one-month notice period, or paid an equivalent
pay for the same period along with 15 days of wages for every year of continuous service.

- For the benefit of the employers, the regulations around layoffs and retrenchment have been
simplified. Earlier, employers with more than 100 employees had to seek permission from
the appropriate government to lay off or retrench employees, and now the threshold has
been
increased to 300 employees.

Employee reskilling

- To support the retrenched employees, the industrial relations code has allocated funds for
employees to upskill themselves. Employees can get wages equivalent to 15 days of their last
drawn salary. Employers should transfer the funds to the employees within 45 days from
employee retrenchment.

Trade Unions:

- negotiating union or negotiating council

- The IRC 20 provides for a new concept of negotiating union or negotiating council in an
industrial establishment.

- As per the said provision:

 • In the case of a single trade union in an industrial establishment, the employer
shall recognize the said union as the sole negotiating union of the workers.

• In the case of multiple trade unions, the trade union with 51% membership of
workers on the muster roll of the industrial establishment shall be recognized as
the negotiating union by the employer.

• In case of multiple trade unions, with none meeting the above 51% membership
criteria, the employer shall constitute a negotiating council, consisting of
representatives of such registered trade unions, which have the support of not
less
than 20% of total workers of the industrial establishment (1 representative for
each 20%).

The IRC 20 also provides that in case the Central/State Government is of the opinion that it is
necessary for a Trade Union or a federation of Trade Union to be recognized as a Central/State
Trade Union, the respective government may recognize said trade unions as the same.

Strikes & Lockouts:

- The IRC 20 defines “Strike” to include the concerted casual leaves on a given day by fifty
percent or more workers employed in an industry.

- No person employed can go on a strike without giving a 14 days notice to an employer

before a strike. This notice shall be valid for a maximum of 60 days.
- Similarly, no employer can lock out any of its workers without giving a 14 days notice of a
lock-out. This notice shall be valid for a maximum of 60 days.

- Further, IRC 20 prohibits strikes and lock-outs:

• during and up to seven days after a conciliation proceeding, and
• during and up to sixty days after proceedings before a tribunal or an arbitrator
• during any period in which a settlement or an award is in operation.
- Employers are required to report to the appropriate government and conciliation officer, within
five days from receiving/giving notice of a strike/lock-out.

Lay-off and retrenchment

- IRC 20 defines lay-off as the inability of an employer, due to shortage of coal, or power,
material or breakdown of machinery, accumulation of material or natural calamity from
giving employment to a worker whose name is on the muster roll and has not been
retrenched.

- Retrenchment refers to the termination of service of a workman for any reason other
than disciplinary action. It does not include retirement, non-renewal of contract, or
completion of tenure of fixed term employment or termination on the ground of
continued ill- health.

- The provisions on lay-off and retrenchment under IRC 20 do not apply to industrial
establishments with less than 50 workers on an average per working day or to seasonal
industrial establishments.

- Employers are required to give to every worker who has completed at least one year of
continuous service, :
• 50% of basic wages and dearness allowance if he is laid off, and
• one month’s notice (or equivalent wages) and 15 days’ wages for every year of
continuous service for such period to a worker who has been retrenched.
- Further, factories, mines and plantation, which have three hundred or more workers must take
prior permission of the appropriate Government before lay-off, retrenchment and closure.

Strikes and lockouts

- With the existing laws, only employees who work for public utilities can go on strike after
the 14th day of their 42-day notice.

- The Code, on the other hand, says that workers at all industrial establishments must give 60
days' notice before going on strike, and they can't go on strike until 14 days after giving
notice.
- When it comes to lockouts, the same rules have been put in place for employers. Also, the
Code expands the definition of "strike" to include a day when 50% or more of the workers
take off without notice.

- Inlockouts
this way, the Code tries to stop workers and employers from going on arbitrary strikes and
by expanding the scope of strikes and requiring advance notice.

- This is done to make sure that the interests of everyone affected by strikes and lockouts are
taken into account.

- “Strike” has been defined as a concerted casual vacation of more than or equal to 50%
of the workers in an industry.
Industrial Relations Code 2020 prohibits strikes and lockouts:
• During and up to seven days after arbitration
• During and up to 60 days after or before trial in a court or arbitrator
• During any period in which a settlement or arbitration award is in effect.
• Employers must report to the relevant government and arbitration officer within five days of
receiving/announcing a strike/lockout.

Grievance Addressal Committee

- amaximum
Grievance Redressal Committee (GRC) can have up to 10 members instead of the
of 6 members required by the law that is already in place.

- The GRC also needs to have a good number of women working for it. The time limit for
bringing complaints to the GRC has been set at one year.

- Also, if a grievance isn't resolved by the GRC or a worker is unhappy with the GRC's
decision, the process no longer stays within the industrial establishment because the worker
can redirect to conciliation procedures. Since a fine of up to INR 100,000 can be given for
not following a
GRC, employers will need to pay close attention to this.

- IRC 20 provides that every industrial establishment employing more than 20 employees must
have one or more grievance redressal committees for resolution of disputes arising out of
individual grievances.

- The committee should consist of equal number of members representing the employers and
workers and the chairperson shall be chosen, alternatively from the employees and workers
on rotational basis every year.

- The number of Grievance Redressal committees cannot exceed 10 and there must be
adequate representation of women workers in the said committee and should not be less than
the proportion of women employed in the industrial establishment.
Employer -

- 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 department 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 authority, the chief executive of that authority, and
includes:
• in relation to an establishment which is a factory, the occupier of the factory,
• where a person has been named as a manager of the factory
• in relation to any other establishment, the person who, or the authority which has
ultimate control over the affairs or the establishment and where the said affairs are
entrusted to a manager or managing director, such manager or managing director;
contractor and legal representative of a deceased employer.

Employee –

- Employee means any person other than an apprentice engaged under 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 express 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

Worker -

- Worker means any person except an apprentice 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,
and 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-
• who is subject to the Air Force Act, 1950, or the Army Act, 1950, or the Navy Act, 1957
• who is employed in the police service or as an officer or other employee of a prison; or
• who is employed mainly in a managerial or administrative capacity
• who is employed in a supervisory capacity drawing wage of exceeding eighteen
thousand rupees (INR 18,000) per month or an amount as may be notified by the
Central Government from time to time.
Trade Union –
- 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.
REGISTRATION OF TRADE UNION

- Any seven or more members of a trade union by subscribing to their names, apply for
registration to the Authority according to the Rules of the Trade Union.

- Attheleast ten percent of the workers or 100 workers, whichever is less, must be members of
Trade Union on the date of making an application for registration.

- Registered Trade Union shall continue to have at least ten percent of the workers or one
hundred workers, whichever is less.

- IfTrade
the name of the Trade Union proposed to be registered is identical to an existing registered
Union, alteration of the name is required as asked by the Registrar of Trade Union.

- Registered Trade Union shall be a body incorporated by the registered name, having a
common seal and perpetual succession with the power to hold property.
• Bi-Partite Forums
• Subject – Labour and Industrial Law I
• Semester VII
• Unit 3
• Curated by – Prof. Shreya Madali
Course Outline Contents –

• Works Committee
• Grievance Redressal Committees
• Comparative Analysis with Industrial Dispute Act
- The works committee promotes amicable relations and dispute resolution
between the employer and workmen.

- The code reduces the headcount for the constitution of the grievance redressal
committee from 50 to 20.

- The grievance committee’s composition now stands enhanced to 10, with

proportionate representation of women workers as opposed to the
earlier
Works Committee [Section 3]

- A works committee will be constituted in an industrial establishment in

which 100 or more workers were employed on any day in the past 12
months

- The committee will promote measures for securing and preserving amity
between the employer and workers
CONSTITUTION OF WORK COMMITTEE
- An Industrial Establishment having or employed 100 or more workers during 12
months, may be required to constitute a Work Committee to promote protective
measures for securing and preserving sensible relations between the employer
and workers.

Grievance Redressal Committee [Section 4]

- There must be one or more grievance redressal s to resolve the
committee
disputes arising from individual complaints if the industrial establishment has
20 or more employees

- The committee must consist of equal number of members representing

an employers and workers

- The number of grievance redress committees cannot exceed 10

and with adequate representation of female workers
GRIEVANCE REDRESSAL COMMITTEE
An Industrial Establishment having 20 or more workers shall constitute one or
more Grievance Redressal Committees with a maximum of 10 members for
resolution of disputes arising out of individual grievances.

• The Grievance Redressal Committee will consist of an equal number of

members representing the employer and the workers, which will not exceed 10

• The representatives of the employer will be nominated by the employer

and will be officials in direct touch with or associated with the working of
the industrial establishment
Subject Matter Industrial Relations Code 2020 Earlier Law
RETRENCHMENT Besides other exclusions, the revised Did not exist
definition also excludes termination of
service of a worker as a result of
completion of tenure of fixed term
employment will be eligible to all
statutory benefit including gratuity for
serving for one year.
EMPLOYEE Introduced in the Industrial Relations Never existed except ‘workman’ which
Code, 2020. Covers any skilled, semi- has not been incorporated in the Code
skilled or unskilled, manual, operational,
supervisory, managerial, administrative,
technical or clerical work for hire or
reward.
EMPLOYER Employing employees directly or Trade Union Act did not define.
through any person i.e. Occupier of a Industrial Employment (SO) Act and
factory and any person having ultimate Industrial Disputes Act defined but did
control over the affairs of establishment. not include occupier of a factory
WORKER Includes working journalists as defined Only workman was defined under
in clause (f) of section 2 of the Industrial Disputes Act whereas in
Working Journalists and other other relevant Acts reference was
Newspaper Employees (Conditions of made to an ‘employee’
Service) and Miscellaneous Provisions
Act, 1955 and
• Trade Unions
• Subject – Labour and Industrial Law I
• Semester VII
• Unit 4
• Curated by – Prof. Shreya Madali
- A trade union is a group of people who have a common goal to work together for
the betterment of their working conditions.

- The International Labour Organisation (ILO) has long recognized that trade
unions are an essential part of a country’s modern industrial system.

- As of 1918, the first organised trade union in India, known as the Madras Labour
Union, had been established. In India, many trade unions are unregistered and spread
over a wide range of sectors.

- With rise in employment trade union-represented employees have much scope

for growth. Now let us talk about the origin and history of trade unions in India.

- Trade Unions Act, 1926 defines the term ‘Trade Union’ as any
combination, whether temporary or permanent, formed primarily for the
purpose of
regulating the relations between workmen and employers or between workmen
and workmen or between employers and employers, or for imposing restrictive
conditions on the conduct of any trade or business, and includes any federation
of two or more trade unions.

- In traditional sense trade unions are continuous association of wage-earners for the
purpose of maintaining of improving the conditions of their working lives

- Trade unions form a crucial component of the modern industrial system of a

country, operating under respective constitutional mechanisms, adhering to the
globally
accepted principles laid down by organizations such as ILO.

History of Trade Unions in India

- India’s trade union movement and the history of trade union in India has grown in
lockstep with the country’s large-scale manufacturing sector, as has been the case
in many other nations.
- The growth of huge industrial units has changed the working and living conditions of
employees dramatically, resulting in a slew of new and complicated issues. Industrial
societies were split between capitalists and labourers due to the introduction of
machinery, new production lines, and the concentration of enterprises in large cities.

- They were brutally exploited and forced to labour in appalling circumstances without
any recourse and with no organization. Individual objections had little impact on
employers, so they banded together and formed a union to defend themselves from the
inhumane treatment of their employers.

- They created labour unions and organized protests on a large scale, marking the origin
of trade unions in India.

- The trade unions genesis stemmed from the necessity of the time, protecting and
securing the interest, presenting the collective demands, grievances of the industrial
worker, from the second half of the nineteenth century, with establishment of
industries.

- poor working conditions, undue long working hours were the concerns for
the workers.

- Although the Unions formed in the second half of the 19th century, they had
limitations in effectively functioning as trade unions, they nevertheless were
effective social unions, presenting the demands collectively, with an orientation to
reform the ills.

- Development of such trade unions was closely in sync with the development of the
Industry in India.

- In India, the first trade union came up in Bombay, after the establishment of textile
mills in the 1850s.

- Trade unions came up in Calcutta in 1854, with the establishment of Jute Mills.
- Sohrabji Shapuri Bengali and C.P. Mazumdar were the leaders and early pioneers of
the labour unions uprising.

- The first factory Commission set up in 1879 studied the problems of

industrial workers.

- First trade union under the leadership of Narayan Meghji Lokhande -‘Bombay
Millhands Association’, founded in 1884, without any funds, office bearers.
- In 1891, The Indian factory Act was passed
- Some other Trade unions are Ahmedabad Weavers (1895), Jute Mills, Calcutta
(1896), Bombay Mill workers (1897) Union.

Development of Trade Unions in India - India’s labour movement and the history of
trade unions in India may be broken down into the following phases of development.

• N.M. Lokhande, a manufacturing worker, organized a labour convention in Bombay

in 1884, one of the most significant events of the eighties

• The Second Factory Commission received a Memorandum highlighting the bad

working conditions of the employees, but no action was taken

• The outcome of this was that on April 21, 1890, 10,000 workers gathered in Bombay
for a mass gathering
• Twenty-four strikes occurred between 1882 and 1890 in Bombay and Madras
• The proprietors of the textile mills decided to give their staff a weekly day off. Shri N.
M. Lokhande set up the Bombay Mill Hands Association in 1890 as a consequence of
their success. In India, this was the country’s first trade union. This was the most
significant achievement in the labour movement and the history of trade unions in
India in the 19th century.

• The ILO emphasised in a 1921 decision that workers should have the ability to
organise unions

• As a result, the labour union movement started in the 1920s. Regulation of trade
unionism began in 1926 with the passage of the development of trade unions in India
and the Trade Unions Act

• It was a basic statute that gave registered trade unions legal standing and allowed
them and their members with certain insulation from civil actions and criminal
prosecutions
• The public’s perception of trade unions was enhanced due to this
• The Act proved to be beneficial to the Indian trade union movement
• To obtain recognition, existing trade unions registered under the Act
• Other than that, a slew of new unions sprung up
Comparative Analysis on The Trade Unions Act, 1926

- The labour movement was the principal force that transformed misery and despair
into hope and progress. Out of its bold struggles, economic and social reform gave
birth to unemployment insurance, old-age pensions, government relief for the
destitute and, above all, new wage levels that meant not mere survival but a tolerable
life.

- The captains of industry did not lead this transformation; they resisted it until they
were overcome.

- When in the thirties the wave of union organization crested over the nation, it
carried to secure shores not only itself but the whole society.

- Trade Unions, in general, emerged as a result of the Industrial Revolution which

can be traced back to the 18th century when the Industrial Revolution began in
Britain.

- The Industrial Revolution is characterized by the setting up of large-scale factories,

new lines of mass production, mechanization and rapid economic development. It is
natural that when a large number of factories are set, there is a need for labour.

- Hence, the demand for unskilled and skilled labour grew. At the time the industries
were not properly organized and the employers concentrated on maximizing
profits which led to exploitation of the labour class who were uneducated and
poor.

- In other words, it led to the formation of two classes in the industrial sector:
• Employer Class – Who were profit-oriented and did not really bother about
the working conditions of the labour.

• Labour Class – Who were uneducated and had no knowledge of their rights
and were also in need of money.

- Initially, the labourers felt that their need for money is greater and that their
employers can easily replace them if they protested to the exploitative terms and
wages imposed by their employers.

- But slowly the labour class realized that if one individual labour protests against
the exploitative terms of his employee, it will not have any impact on the industrial
organization but if laborers form themselves into a group or “Union” then more
impact will be exerted on their employer lords.

- Forming labourers into Unions also gave them the power to collectively bargain
for themselves. Therefore, this thought led to the formation of Trade Unions.
Trade Unionism in India

- The British started colonizing the Indian sub-continent in the 1600s and started to set
up factories and mills in India just like the Industrial Revolution in Britain.

- The main reason whythe British found it apt to start industrialization in India was that
India had an abundance of cheap and poor labour along with natural resources and
land for setting up the industries.

- The cotton mill was established in 1851 in Bombay and first jute mill was established
in 1855 in Bengal.

- Just like in Britain, the conditions of labour in India was worse. The exploitative and
pitiable working terms such as working hours, wages and expelling policies made
the labours join hands and unite and protest. One of the first unrest among labourers
can be dated back to the year 1877 when due to sudden reduction in wages the
labourers
of Empress Mill, Nagpur organized a strike.

- Since such unionism was a new phenomenon there existed no law to legalize and
regulate these new labour unions. With growing discontent and unrest among the
labour class and constant tiff with the employer class, few steps were taken to inquire
and resolve the situation.

- Factories Commission, 1875 – Factories Commission, 1875 was the first

commission set up which properly inquired into the conditions of the factories and
came to the
conclusion that some kind of legal limit was necessary and the Factories Act, 1881
was passed.

- Factories Commission, 1885 – The Second Commission was set up in 1885 and
on the basis of the inquiry and second Factories Act in 1891 was passed.

- Royal Commission on Labor, 1892 – The Commission led to imposing of

limitations on working hours in factories.

- Factories Commissions and Factories legislations caused no improvement in

the working conditions of the labour class in India.

- When World War I broke out there was the sudden diversion of all resources to
cater to war needs and the employers were dependent on the labourers. It then the
labourers realized that the employers need them as much as they need their
employers. This gave them a “bargaining position”.
- Trade unions started to get formed in India but the process was slow due to
the leadership of socialist reformers.

- Yet many Trade unions started to get formulated. The first major trade union formed
was the Madras Labour Union in 1918 under the presidentship of Mr B.P. Wadia.
This was followed by the formation of the All India Trade Union Congress in 1920.

- With the formation of Trade Unions, the labourers started to organize strikes and
protests to assert their demands such as lowering of working hours, minimum basic
wages,
The Buckingham Mill Case

- The formation of Trade Unions and the organization of strikes and protests by
the labourers were not welcomed by the employers.

- To put an end to the activities of the newly formed trade unions and further to
bar formation of Trade Unions the employers sought legal recourse.

- One of the most important cases filed was against Mr B.P. Wadia who was the
President of the Madras Labour Union that he conspired with workers and went on
strike and was restraining trade.

- The Employers prayed for an injunction to stay the protests and activities done by the
Trade Union

- It is to be noted here that until this time there was no legislation which gave legal
force/backing to trade unions. The Order of the Madras High Court was further blown
to the truth that there was no law that legalized trade unionism in India.

- The growing need to have pro-labour legislation led to the passing of the Indian
Trade Union Act 1926.

- The word “India” was later dropped and the legislation named Trade Union Act,
1926 came into force.

- The Preamble of the “An Act to provide for the registration of Trade Unions and in
certain respects to define the law relating to registered Trade Unions”. Post World War
I the cost of living increased and there was growing agitation against colonial rule.

- With the passing of the Trade Union Act emergence of “military trade unionism”
was witnessed with a lot of strikes and protests by the Trade Unions. India also
joined the International Labour Organization as a founding member
- The strike constituted criminal conspiracy under section 120A of the Indian
Penal Code 1860.

- The strike also constituted civil conspiracy under civil law.

- The Hon’ble Madras High Court granted the injunction to stay the strike on three
grounds:
1. There was a valid cause of action in favour of employers.
2. There was a breach of law by the labourers.
3. There were losses suffered by the employers due to the actions of the trade union.

- It is to be noted here that until this time there was no legislation which gave legal
force/backing to trade unions. The Order of the Madras High Court was further blown
to the truth that there was no law that legalized trade unionism in India.

- The growing need to have pro-labour legislation led to the passing of the Indian Trade
Union Act 1926. The word “India” was later dropped and the legislation named
Trade Union Act, 1926 came into force. The Preamble of the “An Act to provide for
the
registration of Trade Unions and in certain respects to define the law relating to
registered Trade Unions”.

- Post World War I the cost of living increased and there was growing agitation
against colonial rule. With the passing of the Trade Union Act emergence of
“military trade unionism” was witnessed with a lot of strikes and protests by the
Trade Unions. India also joined the International Labour Organization as a founding
member.
Period Post 1947

- One major lacuna with the 1926 Act was that though it provided for voluntary
registration of Trade Unions it did not provide for compulsory recognition of the
Trade Unions by the employers and because it was not compulsory for the employers
to recognize the Trade Unions, obviously did not recognize them. This again put a
halt to the development of Trade unions.

- For example, whenever the members of Trade Unions or their lawyers went to
negotiate with the employers, the employers simply refused to talk to them on the
ground that they do not recognize such Trade union, though it is registered. The Act
was amended in 1947 which provided for compulsory recognition by the employers of
the representative Unions.
Trade Unionism in India from 1950 to 1970
- Independence of India was beneficial to Trade Unions in India in a huge way as the
forefathers adopted the principles of equality for all, justice and freedom including the
freedom of expression. The Constitution of India also recognized Freedom of
Association as a Fundamental Right.

- Planning was also adopted by India by the way of Five- year plans. The focus of
the first two five-year plans was on industry and agriculture which led to setting up
of large public sector industries.

- With the setting up of industries, the need for labour grew and trade unionism
became active. However, the trade unions saw their own troubles. Due to a lack in
organization and proper leadership there was inter-union tensions and conflicts which
was coupled with political interventions. The State took a paternalistic approach
whereby it stated dictating the unions. Hence, during this period strikes and protests
were low as compared to the coming years.
Trade Unionism in India from 1970 to 1990

- From the mid of 1960, the economic situation of India had started to deteriorate
mainly because of famines and wars witnessed by India in its preceding years.

- The rate of inflation rose and prices of food and grains soared. Industries were also
affected by the structural changes in the economy. There were more protests,
strikes
and lockouts organized by the trade unions during this period. Nationwide Emergency
imposed during PM Indira Gandhi’s regime from 1975 to 1977 suspended all the
Fundamental Rights including the right to form associations and right to strike.

- Post-Emergency the government had attempted to bring into force an industrial

relations bill which aimed at banning strikes and lockouts in essential industries and
services. However, the bill was met with strong opposition from different participants,
specifically the trade unions. As a result, the bill was not passed. The trade unions had
achieved a domineering stance by this time. They had aced in their bargaining powers
and had become more organized and were able to meet their requirements by
negotiations and strikes

Trade Unionism in India from 1990 to 1999

- In 1991 the Government decided to open the economy by introducing the

“New Economic Policy” (NEP). With pressures of liberalization, privatization
and
globalization cracks and splits were also seen in Trade Unions in India because the
Government’s labour-friendly approach changed to be more investor-friendly.
- Due to globalization, there was massive cutting in the workforce and trade unions
were trying hard to save labourers jobs. With the advent of liberalization in 1991, the
industrial relations policy began to change.

- Now, the policy was tilted towards employers. Employers opted for workforce
reduction, introduced policies of voluntary retirement schemes and flexibility in the
workplace also increased.

- The age-old policy of protectionism proved inadequate for the Indian industry to
remain competitive as the lack of flexibility posed a serious threat to manufacturers
because they had to compete in the international market. Thus, globalization brought
major changes in industrial relations policy in India. The main characteristics of trade
unionism after globalization became the small size of membership, lack of adequate
finance, non-fulfilment of welfare schemes, control of political parties and other
outside interference in the activities of trade unions

Trade Unionism in the 21st Century

- With difficulties faced, the trade unions had to face a barrage of problems but
the silver lining is the growth in the number of trade unions, better organization
and functioning.

- As per data of Labour Bureau, there are around 11,556 registered labour unions
in India with average membership at 1283 members per union.

COMPARITIVE ANALYSIS OF TRADE UNION ACT OF 1926

- Trade Unions Act (1926) India’s Trade Union Act (1926) stipulates that any seven or
more members can form a trade union and apply for registration as trade union. This
clause has been partially amended to avoid cropping up of multiple trade unions in an
establishment.

- With the amendment, no trade union shall be registered in India unless at least ten
percent or one hundred of the workmen, whichever is less, in an establishment are
registered as members of such trade union. Further, the amendment states that no
trade union shall be registered unless it has a minimum membership of seven persons.

- These provisions allow formation of at least ten unions in an establishment with a size
of 70 workers, and upwards of ten unions if the size exceeds 1100 workers.

- Existence of multiple trade unions in an establishment result in union rivalry,

thereby affecting industrial harmony. In comparison, in Bangladesh, which has
reformed its
 labour laws in 2006, a minimum membership of 30 percent of workers is required to
form a trade union.

- In Sri Lanka, the Ordinance to provide for the Registration and Control of Trade
Unions (1935) permit formation of trade unions with a minimum membership of 7
workers.

- However, the Industrial Disputes Act, which was amended in 1999, stipulates that at
least 40 percent of the workers on whose behalf the trade union seeks to bargain
with the employer should be members of such trade union.

Trade Union under Industrial Relations Code-

- The trade union is defined under section 2 (zl) of the Industrial Relations Code
2020 as, “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 —
• any agreement between partners as to their own business
• any agreement between an employer and those employed by him as to such
employment

• agreement in consideration of the sale of the goodwill of a business or of instruction

in any profession, trade or handicraft”

Appointment of Registrar (Section 5 of Industrial Relations Code, 2020 and

Section 3 of the Trade Union Act, 1926) - Section 3 of the Act empowers the
appropriate
government to appoint a person as the registrar of a trade union. The appropriate
government can also appoint as many additional and deputy registrars in a trade union
as it deems fit for carrying on the purposes of the Act.

- The aforementioned actions must be taken in order to exercise and carry out the
Registrar’s legal obligations under this Act, including any specific powers and
functions that the Registrar may, by order, specify, as well as to specify the local
boundaries within which any additional or deputy Registrar may exercise and carry
out those obligations.

- Section 5 of the Industrial Relations Code, 2020 provides for the appointment of
a trade union registrar. The section empowers the competent government to
designate a qualified individual as Registrar of Trade Unions to register trade
unions and monitor their operations. The competent government may
 additionally designate Additional Registrars of Trade Unions, Joint Registrars of
Trade Unions, and Deputy Registrars of Trade Unions to carry out the
Registrar's tasks under the Registrar's supervision and control. The Registrar's
duties and functions are outlined in the Act.

Mode of Registration (Section 6 of Industrial Relations Code, 2020 and Section 4 of

the Trade Union Act, 1926)

- Any seven or more members of a Trade Union may apply for registration of the
Trade Union by submitting their names to the Trade Union's regulations and
otherwise
complying with the provisions of this Act for registration. No worker's trade union
shall be registered unless at least 10% of the workers employed or engaged in the
industrial establishment or industry with which it is linked, or one hundred workers,
whichever is less, are members of such Trade Union on the date of application for
registration.

- At all times, a registered trade union of workers must have as members not less than
10% of the workers or one hundred workers, whichever is fewer, subject to a
minimum of seven, employed or engaged in such an industrial establishment or
industry with which it is associated.

- An application for registration of a Trade Union made under section 6 (1) of the
Industrial Relations Code, 2020, must not be declared invalid merely because some of
the applicants, but not more than half of the total number of persons who applied,
have ceased to be members of the Trade Union or have given notice, at any time after
time of application but before the registration of the Trade Union.

Application for Registration (Section 8 of Industrial Relations Code, 2020)

An application for Trade Union registration must be made under section 8(1) to the
Registrar electronically or otherwise which must be supported by –
• A declaration to be made by affidavit in the form and manner prescribed.
• A copy of the Trade Union's rules, as well as a copy of the Trade Union's
resolution adopting such rules.

• A copy of the Trade Union's resolution authorizing the applicants to make

an application for registration.

• In the case of a Trade Union that is a federation or a central organization of

Trade Unions, a copy of the resolution adopted by the members of each of the
member Trade Unions who met separately and agreed to form a federation or a
central organization of Trade Unions.
• Comparing it to section 5(1) of the Trade Union Act, 1926 every application for
Trade Union registration must be submitted to the Registrar, along with a copy of the
Trade Union's rules and a statement of the following particulars: (a) the names,
occupations, and addresses of the delegates making the application; (b) the name of
the Trade
Union and the address of the head office of the trade union; and (c) the titles, names,
ages, addresses, and occupations of the Trade Union's [office-bearers].

Registration (Section 9(1)(2)(4) of Industrial Relations Code, 2020 and Section 8 of

the Trade Union Act, 1926)

• According to section 9(1) of the Industrial Relations Code, 2020 when the Registrar
is satisfied that the Trade Union has complied with all of the conditions of this
Chapter about registration, he or she shall register the Trade Union by entering the
particulars relating to the Trade Union included in the statement accompanying the
application
for registration in a register to be maintained in such form as may be required. When
the Registrar issues an order for the registration of a Trade Union, he shall issue to the
applicant Trade Union a certificate of registration in such form as may be required, as
per section 9(2) of Industrial Relations Code, 2020 which shall be conclusive
evidence that the Trade Union has been registered under this Code.

• Section 9(4) of the Industrial Relations Code, 2020 states that every Trade
Union which is registered under the Trade Unions Act, 1926 that had valid
registration immediately before the beginning of this Code shall be regarded to
have been
registered under this Code only if, that Trade Union shall submit with the Registrar a
statement stating the constitution of the executive of the Trade Union is in line with
this Code, along with the rules of the Trade Union revised by section 7, and the
Registrar shall change his record.
Certificate Of Registration (Section 9(3) of Industrial Relations Code, 2020 and
Section 9 of the Trade Union Act, 1926)

• If a Trade Union has been granted a certificate of registration, the Registrar

must record the Trade Union's name and other information in a register kept for
that
purpose in the form provided.

CANCELLATION OF REGISTRATION OF TRADE UNION

The Registrar may withdraw or cancel a Trade Union's certificate of registration as per
section 9(5) of the Industrial Relations Code, 2020 (Section 10 of the Trade Union
Act, 1926) —
• on the Trade Union's application verified in the manner prescribed;
• on information received by him regarding the Trade Union's violation of the
provisions of this Code or the rules made thereunder, or its constitution or
rules;
• if he is satisfied that the members in a Trade Union fall below ten percent of total
workers or one hundred workers, whichever is less, only when the Registrar gives the
Trade Union not less than sixty days prior written notice outlining the grounds on
which it is planned to revoke the Trade Union's certificate of registration before the
certificate of registration is cancelled otherwise than on the Trade Union's application.

• The Registrar shall cancel a Trade Union's registration certificate where a Tribunal
has ordered the cancellation of such Trade Union's registration. When cancelling a
Trade Union's certificate of registration, the Registrar must record the reasons for
doing so
and notify the Trade Union in writing.

Negotiating union/council

- The 2019 draft Bill of the Industrial Relations Code set out that, if there were more
than one registered trade union of workers functioning in an establishment, the trade
union having more than 75% of the workers as members would be recognised as the
sole negotiating union.

- The 2020 Bill, which was finally passed as the Code, lowered this threshold to 51% of
the workers, that is, a simple majority. When there is only one trade union, it
automatically becomes the negotiating trade union.
Whereas, if no trade union can pass the requirement of 51%, a “negotiating
council” is to be formed by the employer. The members of such “negotiating
council” must be from those trade unions that have more than 20% of the workers.
The purpose of choosing a singular trade union as the “negotiating union” is to streamline
and ensure clarity in the process of collective bargaining. A negotiating trade union
solves the problem of conflict between various trade unions and makes clear who an
employer should build a relationship with, regarding prescribed worker issues. It is a
well-
established principle of collective bargaining that the power of employees is in the
numbers.

Section 15 : objects on which general funds may be spent

Section 15 of the Act lays down the activities on which a registered trade union can spend
its funds. These activities include:
• Salaries are to be given to the office-bearers.
• The cost incurred for the administration of the trade union.
• Compensation to the workers due to any loss arising out of any trade dispute.
• Expenses incurred in the welfare activities of the workers.
• Benefits are conferred to the workers in case of unemployment, disability, or death.
• The cost incurred in bringing or defending any legal suit.
• Publishing materials with the aim of spreading awareness amongst the workers.
• Education of the workers or their dependents.
• Making provisions for medical treatment of the workers.
• Taking insurance policies for the welfare of the workers.
• This Section also provides the reason for non-contribution to the said fund and also
that a contribution to the fund can not be made as a criterion for admission into the
union.

Section 16 : constitution of a separate fund for political purposes

• Section 16 provides that a trade union, in order to promote the civic and political
interests of its members, can constitute a separate fund from the contributions
made separately for the said purposes. No member of the union can be compelled
to
contribute to the fund.
• A legally recognised labour union may establish a separate fund with the goal of
advancing the civic and political objectives of its members. A recognised trade union
is not allowed to use its general finances for its members’ political campaigns. The
trade union must establish a separate political fund for political causes. Contributions
to such a fund must be separately collected. Some of them are as follows:

• The recovery of all costs incurred, directly or indirectly, by a candidate or

prospective candidate for election as a member of any governmental body or local
authority. The costs cover all outlays in connection with his candidacy before, during,
or after the
election.
• Maintenance of any individual who serves on a local or legislative authority.
• The election of a candidate for any legislative body or municipal authority, or
the registration of voters.

• The staging of political gatherings of any type or the dissemination to trade union
members of any political material or papers.

Section 18 : immunity from civil suits in certain cases

• Section 18 of the Act immunises the members of trade unions from civil or
tortious liabilities arising out of any act done in furtherance or contemplation of
any trade dispute.

• For example, in general, a person is subject to tortious liability for inducing any
person to breach a contract. But, the trade unions and its members are immune from
such liabilities provided such inducement is in contemplation or furtherance of any
trade disputes. Further, the inducement should be awful and should not involve any
aspect of violence, threat, or any other illegal activity.

• Any authorised officer or member of a registered trade union is eligible for this
immunity. No civil action may be brought against them for conduct related to a
trade dispute on the grounds that it encourages another person to breach an
employment
agreement; or interferes with another person’s trade, business, or employment.

• Furthermore, the incentive should be made via legal techniques that are not against
the legislation of the state. There is no protection from physical harm, verbal abuse,
or other illegal tactics.

Section 17 : criminal conspiracy in trade disputes

• Section 17 of the Act states that no member of a trade union can be held
liable for criminal conspiracy mentioned under sub-section 2 of Section 120B
of
the Indian Penal Code regarding any agreement made between the members of
the union in order to promote the lawful interests of the trade union.

• The office bearers of the registered trade unions are exempt from penal
punishment for criminal conspiracy, per Section 17 of the Trade Unions Act of
1926. An
agreement between two or more people to carry out an illegal act or a legitimate act
through an illegal method is referred to as a conspiracy in English law.

• Criminal conspiracy is defined in Section 120-A of the Indian Penal Code of 1860 as
follows:

• When two or more people agree to do something or make it happen

• A prohibited act,
• An Act that is not committed via unlawful methods; such as a contract is referred to
as a criminal conspiracy;

• The Trade Union Act of 1926 grants registered trade unions immunity. Nevertheless,
this immunity is only applicable with regard to the legal agreements made by trade
union members for the promotion of legitimate trade union purposes. The right to
call
 for a strike and persuade members is one of the rights granted to registered trade
unions in the stimulation of their industrial conflicts. All acts that give rise to civil
litigation are considered illegal acts. For instance, two men who conspire to get
workers to violate their employment contracts are guilty of a crime. However, Section
17 safeguards a trade unionist from a crime if the arrangement they have entered into
is not an agreement to conduct an offence.

Section 21-A : disqualifications of office-bearers of trade union

• Section 21A of the Act lays down the conditions, the fulfilment of which disqualifies
a person from being a member of the trade union. The conditions laid down in the
Act are as follows:
• If the member has not attained the age of majority
• If he has been convicted by any of the courts in India for moral turpitude and has been
sentenced to imprisonment unless a period of five years has elapsed since his release.

Adjudication of disputes of Trade Unions under IR 2020

- The IR Code, 2020 introduces a more structured approach to the adjudication of

industrial disputes. It provides for the establishment of Industrial Tribunals and
Labor Courts that are tasked with resolving disputes between employers and
employees, including those involving trade unions.

- The Code prescribes a detailed procedure for the settlement of industrial disputes,
including the role of conciliators and adjudicators. It aims to streamline the dispute
resolution process and reduce the backlog of cases.

Industrial disputes
• Any dispute related to the termination of a worker's services, such as dismissal,
retrenchment, or discharge, is considered an industrial dispute. A worker can apply to
the Industrial Tribunal for adjudication of the dispute 45 days after applying for
conciliation.
Committee proceedings
• A committee can complete its proceedings within 30 days of receiving an
application. If the worker is dissatisfied with the committee's decision or their
grievance is not resolved within 30 days, they can file an application for conciliation
with the conciliation officer through their trade union within 60 days.
Arbitration
• If an employer and their workers agree, they can refer a dispute to arbitration through
a written agreement.

Enforceability of agreements under IR 2020

Types of Agreements under the IR Code, 2020
a. Settlement Agreements:

• Nature: These are agreements reached between employers and employees or

their representatives (such as trade unions) to resolve specific disputes or issues.

• Enforceability: Once a settlement is reached through conciliation or mediation, it is

binding on the parties involved. The agreement must be recorded and documented.
If the agreement is not adhered to, the affected party can seek enforcement through
appropriate legal mechanisms.
b. Collective Bargaining Agreements:
• Nature: These agreements are negotiated between employers and trade unions
representing a group of employees. They cover wages, working conditions, and other
employment terms.
• Enforceability: The Code provides that these agreements, once signed, are
enforceable. They are expected to be implemented by the employer and adhered to by
the employees. If disputes arise regarding the implementation, they can be adjudicated
by the Industrial Tribunal or Labor Court.
c. Standing Orders:

• Nature: These are detailed codes of conduct and work rules established by
employers, often after consultation with employees or their representatives.

• Enforceability: Standing Orders must be certified by the appropriate authority.

They are enforceable once certified and form part of the terms and conditions of
employment. Non-compliance with certified standing orders can lead to legal action
by employees or the government.

Mechanisms for Enforcement

a. Conciliation and Mediation:

• Before reaching a formal adjudication, the IR Code emphasizes conciliation and

mediation as primary methods to resolve disputes. The agreements reached
through these processes are enforceable and must be implemented by the parties
involved.

b. Adjudication:
• If disputes arise regarding the implementation of agreements, they can be brought
before Industrial Tribunals or Labor Courts. These bodies have the authority to
enforce agreements and make binding decisions on the matters in dispute.
c. Compliance and Monitoring:

• The Code provides for mechanisms to ensure compliance with agreements. Inspectors
or labor officers may be appointed to oversee the adherence to agreements and
standing orders.
• Strikes and Lock-outs
• Subject – Labour and Industrial Law I
• Semester VII
• Unit 5
• Curated by – Prof. Shreya Madali
Case - The Great Bombay textile strike
Facts

- The Great Bombay Textile Strike of 1982 was a significant labour dispute in
India that had a profound impact on labour laws and industrial relations in
the country.

- The Great Bombay Textile Strike began on January 18, 1982, involving
thousands of workers in the textile mills of Mumbai (formerly Bombay). It was
one of the largest and most impactful strikes in Indian industrial history.

- The strike was organized by the Bombay Textile Workers’ Union (BTWU),
led by prominent labour leader Dattaram Chintaman Apte and other trade
unionists.

- The workers were demanding higher wages and improved working

conditions. The textile industry in Mumbai was facing economic difficulties,
leading to poor working conditions and stagnating wages.

- The workers also sought job security and better provisions for layoffs and
retrenchments.

- The strike saw the participation of approximately 200,000 workers from over
50 textile mills. It lasted for over a year, causing significant disruption to the
textile industry and the local economy.

- The strike led to substantial economic losses for the industry and the city.
The affected workers faced prolonged unemployment and financial hardship
- The Maharashtra government intervened in the strike, trying to mediate
between the workers and the mill owners. However, the mediation
efforts were largely unsuccessful, and the strike continued for more than
a year.

Issues

- The legal framework governing strikes and industrial disputes was a key
issue. The Industrial Disputes Act, 1947, which governed the resolution of
industrial disputes, was tested during this strike. The implementation of the
Act's provisions on dispute resolution and strike regulations were
scrutinized.

- The extent and nature of government intervention in the strike were

The debated.
effectiveness of the government’s mediation efforts and their role in
resolving the dispute were major issues.

- The strike highlighted issues related to workers' rights to fair wages, working
conditions, and job security. The effectiveness of collective bargaining as a
tool for addressing these issues was examined.

- The role of trade unions and their ability to negotiate effectively with
employers were key issues. The recognition and legitimacy of unions in
representing workers’ interests were tested.

- The economic impact of the strike on the textile industry and the broader
economy was significant. The prolonged strike led to financial strain on
both workers and employers.

- The strike had social implications, including prolonged unemployment

for workers and its impact on their families and communities.

Judgment

- The strike officially ended in February 1983, after over a year of intense
industrial action. The resolution involved negotiations between the
workers, mill owners, and the government.

- A settlement was reached that included wage increases and some

improvements in working conditions. However, the outcome was seen as a
compromise rather than a full resolution of the workers’ demands.
- The Great Bombay Textile Strike highlighted the need for reform in labour
laws and industrial relations. It led to increased scrutiny of labour legislation
and the effectiveness of dispute resolution mechanisms.

- The strike underscored the importance of strong trade unions and effective
collective bargaining mechanisms. It led to discussions on improving the
legal framework for labour relations and union recognition.

- In response to the strike and similar disputes, there were calls for changes to
the Industrial Disputes Act and other labour laws to better address the needs
of workers and improve dispute resolution processes.

- The Great Bombay Textile Strike is remembered as a pivotal moment in the

history of labour relations in India. It brought to light the challenges faced by
workers in the textile industry and the limitations of existing labour laws.

- It influenced labour policy and legislation in India, contributing to

ongoing debates about workers' rights, trade union power, and industrial
dispute resolution.

Case - Buckingham & Carnatak Co. Ltd. v/s Workers of Buckingham& Carnatak
Co. Ltd. AIR 1953 SC 47

- The case of Buckingham & Carnatic Co. Ltd. v. Workers of Buckingham &
Carnatic Co. Ltd. is a landmark decision by the Supreme Court of India that
addresses key issues related to industrial disputes, particularly regarding the
rights of workers and the role of management in resolving disputes.

- The case is often cited for its significance in understanding the legal framework
surrounding labour disputes and the principles of fair treatment in the
workplace.

- Buckingham & Carnatic Co. Ltd. was a textile company engaged in the
manufacture of textiles. The workers at the company's factory went on strike
in 1951.

- The strike was related to a dispute over wages, working conditions, and
the dismissal of certain employees.
- During the strike, the company dismissed several workers who were
actively participating in or supporting the strike

- The dismissal of these workers led to further disputes between the company
and its workforce.

- The dispute between the workers and the management was referred to
the Industrial Tribunal for adjudication.

- The Tribunal was tasked with examining the legitimacy of the dismissals
and the overall industrial dispute.

Issues
Was the dismissal of the workers during the strike lawful?
The key issue was whether the dismissals were justified under the law, given the
context of the ongoing strike and the nature of the workers' participation.

Did the dismissal and the handling of the dispute conform to principles of
natural justice and fairness?
The issue was whether the process followed by the management in dismissing the
workers was fair and in accordance with the principles of natural justice.

How did the applicable labour laws, including the Industrial Disputes Act, 1947,
apply to the case?
The issue revolved around the interpretation and application of labour laws
concerning the dispute and the rights of the workers.

Judgment

- The Supreme Court of India, in its judgment delivered in 1953, addressed the
key issues in the case and provided clarity on the legal principles applicable
to industrial disputes.

- The Court held that the dismissal of the workers during the strike was not
justified. The dismissals were considered unfair as they were made in the
context of an industrial dispute that was protected under the law. The Court
emphasized that workers cannot be dismissed for participating in a legal
 strike and that dismissals in such circumstances need to be justified and
follow proper procedures.

- The Court found that the process followed by the management in dismissing
the workers did not conform to the principles of natural justice. The Court
highlighted that the dismissal of workers involved in a strike must be handled
with due consideration of fairness and adherence to proper procedures.

- The Court's decision reinforced the applicability of labour laws, particularly

the Industrial Disputes Act, 1947, in protecting the rights of workers and
ensuring fair treatment in industrial disputes. The judgment underscored the
importance of adhering to legal standards and procedural fairness in
resolving industrial disputes.

Impact and Significance

- The judgment reinforced the rights of workers to participate in and

emphasized that dismissals related
strikesto strike activities must be handled with
caution and fairness. It underscored the protection provided to workers under
the Industrial Disputes Act.

- The case clarified the legal standards for dismissals and the handling
of industrial disputes, contributing to the development of labour law
jurisprudence in India.

- The decision has had a lasting impact on industrial relations and labour law
in India, shaping the way disputes are resolved and the rights of workers are
protected.

Case - Indian Iron & Steel ltd. v/s Its Workmen (1967) I LLJ 381 (Pat).

- The case Indian Iron & Steel Co. Ltd. v. Its Workmen (1967) I LLJ 381 (Pat) is
an important decision by the Patna High Court in the context of labour law
and industrial relations in India. It addresses critical issues related to worker
rights, wage disputes, and the responsibilities of employers.

- Indian Iron & Steel Co. Ltd. (IISCO) was a large industrial enterprise engaged in
the production of iron and steel. The company was involved in an industrial
dispute with its employees regarding wage payments and related
conditions.
- The dispute concerned the payment of wages to workers, specifically
issues related to the calculation and payment of overtime wages, and
other wage- related discrepancies.

- Workers alleged that they were not being paid the correct amounts for
overtime work and other entitlements.

- The dispute was referred to an Industrial Tribunal for adjudication.

- The Tribunal was tasked with resolving the issues related to wage
payments and determining the extent of the company's liability.

Issues
Whether the company was obligated to pay overtime wages as claimed by the
workers?
How should the wages, including overtime, be calculated and paid?
What is the extent of the employer's responsibility in ensuring accurate and fair
wage payments?
Judgment

- The Industrial Tribunal ruled in favour of the workers, finding that Indian Iron
& Steel Co. Ltd. had not properly paid overtime wages and had discrepancies in
wage calculations. The Tribunal ordered the company to rectify the wage
payments and provide compensation to the workers for the amounts owed.

- The Tribunal's decision reinforced the principle that employers are legally
bound to ensure accurate wage payments, including overtime compensation.
The ruling highlighted the importance of compliance with wage laws and the
protection of workers' entitlements.

- The Tribunal addressed the proper calculation methods for wages,

emphasizing that employers must follow legal standards and ensure fair and
accurate
payment to their employees.

- The judgment underscored the responsibility of employers to maintain

proper records and adhere to legal requirements concerning wage payments.
The
Court emphasized that employers cannot evade their obligations regarding
fair compensation and must rectify any discrepancies in wage payments.
Impact and Significance

- The case reinforced protections for workers concerning wage payments,

including the right to fair compensation for overtime work. It highlighted the
importance of adhering to labour laws and ensuring that workers' entitlements
are fully met.

- The judgment clarified the extent of employers' responsibilities in wage-related

matters, emphasizing the need for accurate record-keeping and compliance
with legal standards.

- The case has been cited in subsequent labour disputes to illustrate the
principles of fair wage payments and employer responsibilities, contributing to
the development of labour law jurisprudence in India.

Case - B. R. Singh v/s Union of India (1989) II Lab LJ 591 (SC)

- The case of B. R. Singh v. Union of India (1989) II Lab LJ 591 (SC) is a

significant Supreme Court decision in the context of labour law and the
principles governing service conditions, especially in regard to government
employees.

- B. R. Singh, the appellant, was an employee in a government

organization, specifically in the Indian Railways. His employment was
governed by the service rules applicable to government employees.

- Singh was subjected to disciplinary action by his employer, the Union

of India. This action was related to charges of misconduct, which led to
a departmental inquiry against him.

- Singh challenged the disciplinary action and the subsequent order issued
against him. He contended that the process followed was not in accordance
with the principles of natural justice and that his rights under the applicable
service rules were violated.

- Singh's case was reviewed by the Central Administrative Tribunal (CAT),

which upheld the disciplinary action. Singh then appealed to the Supreme
Court of India, challenging the decision of the CAT.
Issues
Whether the disciplinary action taken against Singh was in violation of the
principles of natural justice?
Did the disciplinary action comply with the relevant service rules and
regulations?
Was the disciplinary decision and the resulting penalty lawful and justifiable?
Judgment

- The Supreme Court of India, in its judgment, upheld the decision of the
Central Administrative Tribunal. The Court found that the disciplinary action
against Singh was in accordance with the principles of natural justice and did
not violate his rights

- The Court observed that Singh was given a fair opportunity to present his
case and defend himself during the disciplinary proceedings. It was found
that the process adhered to the principles of natural justice, and no
procedural irregularities were evident.

- The Supreme Court confirmed that the disciplinary action was conducted in
accordance with the service rules applicable to government employees. The
Court found that the rules were followed in the inquiry and the imposition
of penalties.

- The Court upheld the legality and justifiability of the disciplinary decision. It
was concluded that the penalties imposed were within the scope of the
service rules and were not arbitrary or excessive.
Prohibition of strikes and lock-outs
Industrial Relations Code, 2020 - Strikes:

- The IR Code, 2020 restricts strikes under specific conditions. A strike is

prohibited during the pendency of proceedings before a Conciliation Officer,
Industrial Tribunal, or Labour Court. Additionally, strikes are not allowed
during the notice period for a strike, which must be given to the employer
before the strike is initiated.

- For essential services and public utility services, the IR Code places stricter
controls. For instance, strikes in essential services, such as healthcare and
public transport, are subject to more stringent regulations, and workers
are required to follow specific procedures to ensure minimal disruption.
- Strikes are considered legal if they are conducted in accordance with the
provisions laid down in the IR Code. This includes following the procedural
requirements such as giving notice and obtaining approval from the
appropriate authorities.
Lock-outs:

- The IR Code regulates lock-outs by prohibiting them under certain conditions.

A lock-out is deemed illegal if it is conducted in violation of the procedural
requirements specified in the Code.

- Similar to strikes, lock-outs cannot be implemented during the pendency of

disputes before the Conciliation Officer, Industrial Tribunal, or Labour
Court.

- Lock-outs in essential services are also regulated more strictly, requiring

adherence to specific procedures to avoid disrupting critical public
services.

Trade Unions Act, 1926

The Trade Unions Act, 1926 itself does not directly regulate strikes and lock-outs.
Instead, it focuses on the registration and regulation of trade unions, including
their legal status, rights, and obligations. The Act provides trade unions with
certain legal protections and immunities but does not explicitly address the
prohibition or regulation of strikes and lock-outs.
The Act grants trade unions certain immunities and protections related to their
activities, including participation in strikes. Registered trade unions are provided
protection against civil suits for actions taken in the course of lawful union
activities, which include strikes.
The Act facilitates collective bargaining by ensuring that trade unions have a legal
framework to negotiate on behalf of their members, which indirectly influences
the context in which strikes and lock-outs occur.
Comparison
• The Industrial Relations Code, 2020 provides detailed provisions and
regulations on strikes and lock-outs, outlining specific conditions
under which they are prohibited and the procedures that must be
followed. It consolidates and updates various labor laws to offer a
comprehensive framework for industrial disputes.
 • The Trade Unions Act, 1926 focuses on the legal status and functioning
of trade unions rather than directly regulating strikes and lock-outs. Its
relevance is more about the role of trade unions in collective
bargaining and the legal protections afforded to them during strikes.

• Regulation and Enforcement:

• The IR Code, 2020 includes specific regulations for preventing and
addressing industrial actions like strikes and lock-outs, providing
a
clear procedural framework to ensure industrial harmony and minimize
disruptions.
• The Trade Unions Act, 1926 provides a foundation for the functioning of
trade unions but does not contain detailed provisions on how strikes
and lock-outs should be managed or regulated.

Illegal strikes and lock-outs

- The Trade Unions Act, 1926 primarily deals with the registration, regulation,
and legal status of trade unions. It provides a framework for the formation
and functioning of trade unions, including their rights and obligations.

- Legal Immunity: The Act grants legal immunity to registered trade unions for
actions taken in the course of their lawful activities, including strikes. This
means that trade unions are protected from legal action for participating in or
organizing lawful strikes.

- Civil Suits: Registered trade unions cannot be sued for damages or civil
liabilities for lawful activities related to strikes and lock-outs. However, this
immunity does not extend to actions that violate the law.

- The Act itself does not directly regulate the legality of strikes and lock-outs.
Instead, it provides a framework for the legal status of trade unions and
their rights to engage in collective bargaining and industrial action.

Comparison
• IR Code, 2020: Provides a comprehensive framework for managing
and regulating industrial disputes, including detailed provisions on the
 legality of strikes and lock-outs. It sets out specific conditions under
which strikes and lock-outs are deemed illegal and outlines the
procedures that must be followed.
• Trade Unions Act, 1926: Focuses on the regulation and legal status
of trade unions rather than directly addressing the legality of strikes
and
lock-outs. It provides legal protection and immunities to trade unions
for lawful activities but does not detail the conditions under which
strikes or lock-outs become illegal.

• IR Code, 2020: Directly addresses the conditions under which strikes

and lock-outs are illegal and provides mechanisms for enforcement
and resolution of disputes.
• Trade Unions Act, 1926: Supports the role of trade unions in industrial
relations by providing legal immunities but does not regulate the
specific conditions that make strikes or lock-outs illegal.

Prohibition of financial aid to illegal strikes and lock-outs

Section 29:

- The IR Code, 2020 contains specific provisions regarding the prohibition

of financial aid to illegal strikes and lock-outs.

- According to Section 29 of the Code, no person, including trade unions or

other organizations, is allowed to provide financial aid to workers who are
participating in an illegal strike or to employers involved in an illegal lock-out.

- Providing financial aid to such activities is considered an offense under the

Code. This provision is intended to deter support for actions that do not
comply with legal requirements, thereby reducing the likelihood of illegal
strikes and lock-outs.

- The primary objective of this prohibition is to prevent the escalation of illegal

industrial actions by cutting off financial resources that might sustain such
actions. It aims to maintain industrial harmony and ensure that disputes are
resolved through lawful means.

Comparison
 • IR Code, 2020: Directly addresses the issue of financial aid to illegal
strikes and lock-outs by explicitly prohibiting such financial support.
This is a proactive measure designed to discourage illegal industrial
actions by removing one of the potential sources of support for
such activities.
• Trade Unions Act, 1926: Does not specifically regulate financial aid to
illegal strikes or lock-outs. Its primary focus is on the legal status and
protection of trade unions rather than on controlling financial
support for illegal actions.
• IR Code, 2020: Provides a clear legal framework for the prohibition of
financial aid to illegal strikes and lock-outs, with specific provisions
aimed at preventing the sustenance of unlawful industrial actions.
• Trade Unions Act, 1926: Focuses on trade union registration
and immunities related to lawful actions but does not address
the prohibition of financial aid to illegal activities.
• IR Code, 2020: Aims to maintain industrial order and prevent the
prolongation of illegal strikes and lock-outs by cuFng off financial
support. Enforcement of this provision involves legal penalties for
those providing such support.
• Trade Unions Act, 1926: Provides a framework for trade unions'
functioning but lacks specific provisions regarding the financial
support for illegal industrial actions.

Comparative Analysis on Strikes and Lockouts under Industrial Dispute Act

Industrial Disputes Act, 1947
Strikes:
Definition and Legality:
• Definition: The Industrial Disputes Act, 1947 (ID Act) defines a "strike"
as a cessation of work by a body of workers acting in combination or
a concerted refusal to work.
• Legal Conditions: Strikes are deemed illegal if they occur during the
pendency of conciliation or adjudication proceedings or during a period
 when a settlement is in force. Workers must follow specific procedures,
including giving notice before going on strike.
Procedural Requirements:
• Notice Requirement: Workers must give at least 14 days' notice
before initiating a strike. The notice should detail the reasons for the
strike.
• Strike during Proceedings: Strikes are illegal if conducted during the
pendency of proceedings before a Conciliation Officer, Labor Court,
or Industrial Tribunal.
Penalties and Actions:
• Disciplinary Action: Employers can take disciplinary action
against employees participating in illegal strikes, including
suspension or dismissal.
• Legal Remedies: Employers can seek injunctions or other legal
remedies to restrain illegal strikes.

Lock-Outs:
Definition and Legality:
• Definition: A "lock-out" is defined as the closing of a place of
employment, or the suspension of work, by an employer in response
to industrial disputes.
• Legal Conditions: Lock-outs are illegal if they occur during the
pendency of conciliation or adjudication proceedings or during the
validity of a settlement.
Procedural Requirements:
• Notice Requirement: Employers are required to follow specific
procedural steps and provide notice before implementing a lock-out.
• Lock-Out during Proceedings: Similar to strikes, lock-outs are
illegal during the pendency of dispute resolution proceedings.
Penalties and Actions:
• Compensation and Reinstatement: Employees affected by illegal
lock- outs may seek compensation or reinstatement.
 • Legal Remedies: Employees or unions can seek legal action to
address grievances arising from illegal lock-outs.

Industrial Relations Code, 2020

Strikes:
Definition and Legality:
• Definition: The IR Code, 2020 provides a broader definition of "strike,"
covering any form of stoppage of work by workers, including
cessation, refusal, or abstention from work.
• Legal Conditions: The IR Code outlines strict conditions for lawful
strikes. Strikes are prohibited during the pendency of conciliation,
arbitration, or adjudication proceedings and must comply with
the notice requirement.
Procedural Requirements:
• Notice Requirement: Workers must provide a 14-day notice
before initiating a strike, detailing the issues in dispute.
• Strike during Proceedings: Strikes conducted during the resolution
of disputes before authorities or during the validity of settlements
are considered illegal.
Penalties and Actions:
• Disciplinary Action: Employers can take disciplinary actions
against employees participating in illegal strikes.
• Financial Aid Prohibition: The IR Code prohibits financial aid to
workers involved in illegal strikes and mandates that such support is
not
provided.

Lock-Outs:
Definition and Legality:
• Definition: The IR Code defines "lock-out" as the closing of a place
of employment or the suspension of work by an employer during an
industrial dispute.
 • Legal Conditions: Lock-outs are considered illegal if they occur
during the pendency of dispute resolution processes or if procedural
requirements are not followed.
Procedural Requirements:
• Notice Requirement: Employers must provide a notice and
follow specific procedural steps before implementing a lock-out.
• Lock-Out during Proceedings: Lock-outs are illegal during
ongoing conciliation, arbitration, or adjudication proceedings.
Penalties and Actions:
• Compensation and Reinstatement: Workers affected by illegal lock-
outs can seek compensation and reinstatement.
• Legal Remedies: The IR Code provides mechanisms for legal action
against illegal lock-outs, including possible penalties and interventions.

Comparative Analysis
Definition and Scope:
• ID Act: Defines strikes and lock-outs in the context of disputes
and provides a framework for addressing these issues.
• IR Code: Expands the definition to cover a broader range of
industrial actions and introduces more comprehensive provisions for
handling strikes and lock-outs.
Procedural Requirements:
• ID Act: Emphasizes the requirement of notice and the illegality of
strikes and lock-outs during the pendency of dispute resolution.
• IR Code: Reinforces these requirements but also adds provisions
regarding the prohibition of financial aid to illegal strikes and lock-outs.
Penalties and Remedies:
• ID Act: Provides for disciplinary actions against employees and
legal remedies for employers.
• IR Code: Introduces additional measures such as the prohibition of
financial aid to illegal actions and a clearer framework for legal
remedies and penalties.
Regulation of Financial Aid:
• ID Act: Does not explicitly address the issue of financial aid to
illegal strikes and lock-outs.
• IR Code: Specifically prohibits financial aid to illegal strikes and lock-
outs, aiming to prevent the sustenance of unlawful industrial actions.
Focus and Objectives:
• ID Act: Focuses on regulating disputes and providing a framework
for industrial actions.
• IR Code: Aims to modernize and streamline industrial relations,
including detailed provisions on managing and deterring illegal strikes
and lock- outs.