Labour and Industrial Law

1) Workmen
he term 'workman' is defined under Section 2(s) of the Industrial Disputes Act, 1G47. A
workman means any person employed in any industry to do manual, unskilled, skilled,
technical, operational, clerical, or supervisory work for hire or reward, whether the
terms of employment are expressed or implied. It also includes persons employed
through a contractor.
However, the definition excludes:
1. Those employed mainly in a managerial or administrative capacity.
2. Those in supervisory positions drawing wages above a prescribed limit (currently
₹10,000 per month) or having powers like hiring and firing.
The real test lies in the nature of duties performed, not just the job title. For example, in
H.R. Adyanthaya v. Sandoz (India) Ltd., the Supreme Court ruled that even if someone has
a high title, if their work is primarily technical or clerical, they may still be considered a
workman.
This classification is important because only a "workman" can seek remedies and
protection under the Industrial Disputes Act.

2) Illegal Strikes
An illegal strike is one that is commenced or continued in violation of the provisions laid
down in the Industrial Disputes Act, 1G47. A strike becomes illegal if it does not follow the
procedures prescribed under the Act, especially Sections 22 and 23.
Under Section 22, in public utility services, a strike is illegal if:
1. Prior notice is not given within six weeks before striking.
2. It is held within 14 days of giving such notice.
3. It occurs during the pendency of conciliation proceedings or within seven days after
their conclusion.
Under Section 23, in all industries, strikes are illegal if:
1. They occur during conciliation, adjudication, or arbitration proceedings.
2. They take place during the operation of a settlement or award.
Also, if a strike is declared against the law of the land, it is deemed
illegal.
However, an illegal strike is not always unjustified. Courts may consider the reason
for the strike when deciding penalties. In Crompton Greaves Ltd. v. Their Workmen, it was
held that even illegal strikes may not always warrant dismissal if the cause was genuine.

3) Lockout
A lockout is defined under Section 2(l) of the Industrial Disputes Act, 1G47. It refers to the
temporary closing of a place of employment, the suspension of work, or the refusal by

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an employer to continue employing any number of workmen. It is the employer’s
counterpart to a strike and is generally used as a tool to pressurize workers during
industrial disputes.
A lockout becomes illegal if it is declared in violation of Sections 22 and 23 of the Act,
which lay down rules regarding the timing and procedure, especially for public utility
services and during ongoing dispute proceedings.
Lockouts are typically used to enforce terms of employment, break a strike, or discipline
workers. However, an employer cannot declare a lockout arbitrarily; it must be justified and
lawful.
In Kairbetta Estate v. Rajamanickam, the Supreme Court held that the legitimacy of a
lockout depends on its genuineness and justification, not merely on procedural legality.
Thus, a lockout is a powerful weapon in the hands of the employer, but its misuse can lead
to legal consequences under labor laws.

4) Industrial Tribunal
An Industrial Tribunal is a quasi-judicial body constituted under Section 7A of the
Industrial Disputes Act, 1G47 by the appropriate government to adjudicate industrial
disputes relating to matters specified in the Second and Third Schedules of the Act.
The Tribunal is usually presided over by a person who is or has been a High Court judge or
has similar qualifications. It hears cases referred to it by the government and can decide on
issues like wages, working conditions, retrenchment, dismissal, closure, and bonus.
The Tribunal functions like a civil court and has the power to summon witnesses, enforce
attendance, and receive evidence. Its awards are binding and enforceable like a decree of a
civil court.
Industrial Tribunals help ensure peaceful resolution of industrial conflicts through
formal legal mechanisms, preventing strikes and lockouts.
In The Bharat Bank Ltd. v. Employees, the Supreme Court upheld the judicial nature of the
Tribunal’s proceedings and emphasized its role in balancing the interests of both
employers and workmen.
Thus, Industrial Tribunals play a key role in maintaining industrial harmony and justice in
labor relations.

5) Powers and Duties of Registrar

The Registrar of Trade Unions is appointed under the Trade Unions Act, 1G26 and plays a
crucial role in the registration and regulation of trade unions.
Powers and Duties:
1. Registration: The Registrar examines applications for registration of trade unions
under Section 4 and ensures compliance with legal requirements.

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 2. Certification: He issues a certificate of registration, which serves as conclusive
evidence that the union is duly registered.
3. Refusal and Cancellation: The Registrar can refuse or cancel registration if the
union fails to comply with the Act or commits fraud.
4. Inspection: He has the authority to inspect the records, accounts, and documents
of registered trade unions.
5. Regulation: The Registrar ensures unions comply with the rules relating to
elections, membership, funds, and audit.
6. Dispute Resolution: He may assist in resolving internal disputes related to union
elections or administration.
In Registrar of Trade Unions v. Union of India, it was held that the Registrar must act fairly
and reasonably, ensuring the union’s compliance while protecting workers’ rights.
Thus, the Registrar acts as a regulator, guide, and enforcer under the Act.

6) Enquiry Report
An Enquiry Report is the formal record of findings prepared after a domestic enquiry
is conducted against a workman for alleged misconduct under disciplinary proceedings. It
is an essential part of natural justice in labor law.
When an employee is accused of misconduct, the employer must conduct a fair enquiry,
providing the workman an opportunity to present his case. The Enquiry Officer, who
conducts the hearing, examines evidence and witnesses from both sides.
After the enquiry, the officer submits a written report summarizing the facts, evidence, and
whether the charges are proved or not. The report must be fair, unbiased, and based on
evidence.
The employer then considers the findings before deciding on disciplinary action like
suspension, dismissal, or reinstatement. If the report is not provided to the employee, it
may amount to a violation of natural justice.
In State of U.P. v. Saroj Kumar Sinha, the Supreme Court emphasized the importance of
supplying the enquiry report to the delinquent employee before passing punishment.
Thus, an Enquiry Report is a vital document ensuring transparency and fairness in labor
disciplinary actions.

7) ChargeSheet
A Charge Sheet is a formal written document issued by an employer to a workman,
alleging misconduct and initiating disciplinary proceedings. It is the first step in
a domestic enquiry process under labor law.
The Charge Sheet must clearly state:
1. The specific acts of misconduct,

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 2. The relevant rules or standing orders violated, and
3. A call for the employee to submit an explanation or appear for an enquiry.
It should be precise, unambiguous, and allow the workman a fair opportunity to defend
himself. Vague or unclear charges can be challenged as a denial of natural justice.
Issuing a charge sheet does not mean the employee is guilty; it is only a notice of
accusation. The actual guilt is determined only after a proper enquiry.
In Sur Enamel & Stamping Works Ltd. v. Their Workmen, the Supreme Court held that the
charge sheet is an essential procedural safeguard in disciplinary matters.
Thus, a charge sheet plays a critical role in maintaining fairness and legality in handling
employee misconduct.

8) Domestic Enquiry
A Domestic Enquiry is an internal investigation conducted by an employer to examine
allegations of misconduct against a workman. It ensures that disciplinary action is taken
only after following the principles of natural justice.
The process begins with the issuance of a charge sheet to the employee, detailing the
alleged misconduct. The employee is given an opportunity to present a defense, including
calling witnesses and submitting evidence. An impartial Enquiry Officer conducts the
proceedings.
Key features of a fair domestic enquiry include:
1. Notice of charges,
2. Opportunity to be heard,
3. Right to cross-examine witnesses, and
4. Impartiality of the Enquiry Officer.
After the enquiry, the officer prepares a detailed Enquiry Report, stating whether the
charges are proved or not. The employer then decides the appropriate punishment based
on the report.
In Workmen of Firestone Tyre & Rubber Co. v. Management, the Supreme Court held that a
proper domestic enquiry is a prerequisite before dismissing an employee.
Thus, a domestic enquiry is crucial to ensure fairness, protect employee rights, and
maintain discipline in industrial establishments.

G) Recognition of a Trade Union

Recognition of a Trade Union means officially acknowledging a trade union by the
employer as a representative body of the workers for collective bargaining purposes. While
registration under the Trade Unions Act, 1G26 gives a union legal status, recognition gives
it the right to negotiate with the employer.

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There is no central law in India mandating recognition, but some states like Maharashtra
have specific laws such as the Maharashtra Recognition of Trade Unions and Prevention
of Unfair Labour Practices Act, 1G71 (MRTU G PULP Act), which lay down clear
procedures for recognition.
Under the MRTU C PULP Act:
 A union with at least 30% of the total employees in an undertaking for six
months may apply for recognition.
 Once recognized, no other union can claim representation until it meets
the prescribed conditions.
Recognition is essential for promoting collective bargaining, ensuring industrial peace,
and protecting workers' interests.
In Balmer Lawrie Workers’ Union v. Balmer Lawrie & Co., the court stressed that recognition
should not be arbitrary and must follow fair procedures.
Thus, recognition empowers trade unions to effectively represent and negotiate on behalf
of workers.
10) Court of Inquiry
A Court of Inquiry is constituted under Section 6 of the Industrial Disputes Act, 1G47 by
the appropriate government to inquire into matters connected with or relevant to an
industrial dispute.
It consists of one or more independent persons, with one person appointed as the
Chairman. The court's main function is to investigate the causes and circumstances of
the dispute and submit a report to the government.
Unlike a tribunal, a Court of Inquiry does not adjudicate or pass binding decisions. It only
collects facts, examines evidence, and provides a report that helps the government take
further action, such as referring the dispute to a Labour Court or Tribunal.
The court has powers similar to a civil court in summoning witnesses, taking evidence, and
inspecting documents.
In Newspaper Ltd. v. State Industrial Tribunal, it was observed that a Court of Inquiry
plays a significant role in promoting industrial harmony by providing impartial findings.
Thus, a Court of Inquiry is a fact-finding body that assists in resolving industrial disputes
through fair investigation and reporting.
11) Modification of Standing Orders
Standing Orders are rules governing the conditions of employment in industrial
establishments, certified under the Industrial Employment (Standing Orders) Act, 1G46.
They cover matters like work hours, discipline, leave, and termination.
Modification of Standing Orders is provided under Section 10 of the Act. Either the
employer or the workmen (through their trade union) may apply for modification. The

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application must be submitted to the Certifying Officer, along with the proposed changes
and reasons.
The process includes:
1. Submission of draft modifications,
2. Notice to affected parties,
3. Hearing of objections, and
4. Decision by the Certifying Officer.
If any party is aggrieved by the officer’s decision, they may appeal to the Appellate
Authority.
Modifications can only be made after six months from the date the existing standing orders
came into operation, unless both parties agree to change them earlier.
In Guest Keen Williams Ltd. v. P.J. Sterling, the Supreme Court held that fair opportunity
must be given to both parties before modifying standing orders.
Thus, modification ensures that standing orders remain relevant and adaptable to
changing industrial conditions.

12) Industry
The term 'Industry' is defined under Section 2(j) of the Industrial Disputes Act, 1G47. It
means any systematic activity carried on by cooperation between an employer and
workmen for the production, supply, or distribution of goods or services with the aim of
satisfying human wants or wishes.
The definition includes activities irrespective of whether they are for profit or not.
However, it excludes agricultural operations, sovereign functions of the government (like
defense and law enforcement), and institutions purely charitable or religious in nature.
The landmark case Bangalore Water Supply v. A. Rajappa (1G78) laid down the Triple Test
for determining an industry:
1. Systematic activity,
2. Cooperation between employer and employee, and
3. Production or distribution of goods/services.
The judgment broadened the scope of "industry" to include hospitals, educational
institutions, and clubs, unless their work is purely spiritual or charitable without systematic
employment.
Thus, "industry" under the Act is a comprehensive term that plays a crucial role in
identifying the applicability of labor laws and resolving industrial disputes.

13) Amalgamation of Unions

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 Amalgamation of Unions refers to the process by which two or more registered trade
unions combine to form a single union, as provided under Section 24 of the Trade Unions
Act, 1G26.
To amalgamate, the following conditions must be fulfilled:
1. At least 50% of the members of each union must vote.
2. At least 60% of those voting must support the amalgamation.
A notice of the amalgamation must be sent to the Registrar, along with copies of the
resolutions passed by each union approving the merger. Once the Registrar is satisfied, he
registers the new union, which then inherits the rights, liabilities, and property of the
original unions.
Amalgamation helps in creating stronger unions, improving bargaining power, and reducing
internal conflicts among small or fragmented unions.
In All India Bank Employees’ Association v. National Industrial Tribunal, it was recognized
that a united front strengthens worker representation.
Thus, amalgamation promotes organizational unity, efficiency, and effectiveness in trade
union functioning.

14) Work Committee

A Work Committee is a joint committee of employers and workers, formed under
Section 3 of the Industrial Disputes Act, 1G47 to promote harmonious relations in an
industrial establishment.
It is mandatory for establishments employing 100 or more workmen. The committee must
include representatives of both employers and workmen, with the number of workmen’s
representatives not less than that of employers.
The main duties of the Work Committee are:
1. To foster good relations between employers and employees,
2. To discuss matters of common interest,
3. To resolve day-to-day issues and prevent disputes, and
4. To promote industrial peace and cooperation.
However, the committee cannot adjudicate disputes or take decisions on policy matters.
It acts as a consultative body to improve workplace communication and address
grievances informally.
In North Brook Jute Co. Ltd. v. Workmen, the Supreme Court observed that the
effectiveness of Work Committees depends on mutual trust and willingness to cooperate.
Thus, Work Committees serve as a platform for dialogue and collaboration, helping to
maintain industrial harmony.

15) Trade Union

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 A Trade Union is an organized group of workers or employees formed to protect and
promote their common interests, especially in matters related to wages, working
conditions, and employment rights.
Under Section 2(h) of the Trade Unions Act, 1G26, a trade union means any combination,
whether temporary or permanent, formed primarily to regulate relations between
workmen and employers, workmen and workmen, or employers and employers. It
includes a federation of two or more trade unions.
Trade unions are formed to:
1. Ensure collective bargaining,
2. Represent workers in disputes,
3. Improve workplace safety and welfare, and
4. Protect workers from unfair labor practices.
For registration, at least 7 members must apply, and the union must comply with conditions
under the Act. Once registered, the union becomes a legal entity with certain rights and
obligations.
In All India Bank Employees’ Association v. National Industrial Tribunal, the Supreme Court
recognized the importance of trade unions in democratizing industrial relations.
Thus, trade unions are vital institutions in promoting industrial peace, ensuring fair
treatment, and giving workers a collective voice in employment matters.

16) Dissolution of Trade Union

Dissolution of a Trade Union refers to the formal process of ending the existence of a
registered trade union. It is governed by Section 27 of the Trade Unions Act, 1G26.
A trade union may be dissolved in accordance with the rules specified in its constitution.
Once the union is dissolved, a notice of dissolution signed by seven members and the
secretary must be sent to the Registrar of Trade Unions.
The Registrar will verify whether the dissolution complies with the rules and, if satisfied,
will record the dissolution in the register and issue a certificate. The certificate serves as
conclusive evidence of the union’s legal dissolution.
Upon dissolution, the union’s funds and assets are distributed according to the rules of the
union. If no rules exist regarding asset distribution, the Registrar may decide how to
dispose of the funds.
Dissolution may occur due to lack of membership, internal conflicts, merger with
another union, or failure to function effectively.
Thus, dissolution legally ends the union’s activities and removes it from the register of trade
unions, ensuring proper closure in compliance with the law.

17) Industrial Dispute

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 An Industrial Dispute refers to any disagreement or conflict between employers
and employers, employers and workmen, or workmen and workmen, which is
connected with employment, non-employment, terms of employment, or
conditions of labor. Under Section 2(k) of the Industrial Disputes Act, 1G47, an
industrial dispute involves issues such as wages, working hours, retrenchment,
dismissal, promotion, or disciplinary action. It can be raised by a group of workmen
or a recognized union. In certain cases, even individual disputes (e.g., dismissal) can
be treated as industrial disputes under Section 2A.
Industrial disputes may be:
1. Interest-based – relating to new employment terms.
2. Rights-based – involving enforcement of existing rights.
The purpose of recognizing industrial disputes is to provide legal mechanisms for
settlement through conciliation, adjudication, or arbitration.
In Workmen of Dimakuchi Tea Estate v. Management, the Supreme Court clarified that the
dispute must affect a substantial number of workmen to qualify as an industrial dispute.
Thus, industrial disputes are central to labor law, aiming to maintain industrial peace,
protect workers’ rights, and ensure fair treatment in employment matters.

18) Lay-off
A lay-off is a temporary suspension of employment by the employer due to reasons
beyond their control, such as shortage of raw materials, breakdown of machinery, or
natural calamities.
Under Section 2(kkk) of the Industrial Disputes Act, 1G47, lay-off means the failure, refusal,
or inability of an employer to provide employment to a workman whose name is on the
muster roll and who has not been retrenched.
Key features of a lay-off:
1. It is temporary.
2. The workman remains on the roll of the establishment.
3. The employer is required to pay compensation as per Section 25C – 50% of basic
wages and dearness allowance.
However, compensation is not payable if the lay-off is due to a strike or slowdown in another
part of the establishment.
In Workmen of Firestone Tyre & Rubber Co. v. Management, the Supreme Court held
that lay-off is a legitimate right of the employer but must be used reasonably.
Thus, lay-off is a protective measure for both employers and workers during temporary
business disruptions, ensuring workers are not permanently removed without just cause.

1G) Voluntary Arbitration

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Voluntary Arbitration is a method of settling industrial disputes where both the
employer and the workmen agree to refer their conflict to a neutral third party
(arbitrator), whose decision is binding.
Under Section 10A of the Industrial Disputes Act, 1G47, parties may, at any time before or
after a dispute has arisen, agree in writing to refer the matter to arbitration. A copy of the
arbitration agreement must be sent to the appropriate government and published in the
Official Gazette.
Key features:
1. It is mutual and consensual.
2. The arbitrator may be any person chosen by the parties.
3. The process is faster, flexible, and less formal than a court trial.
4. The arbitrator’s award is final and enforceable like a decree of a civil court.
In Engineering Mazdoor Sabha v. Hind Cycles Ltd., the Supreme Court upheld the legality
and effectiveness of voluntary arbitration in resolving labor disputes.
Voluntary arbitration promotes industrial harmony and reduces litigation by encouraging
peaceful resolution through cooperation and trust.

20) Unfair Labor Practice

Unfair Labour Practices are acts by employers, trade unions, or workers that violate the
principles of fairness, justice, and equality in labor relations. These practices are defined
under the Fifth Schedule of the Industrial Disputes Act, 1G47, and in state laws like
the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour
Practices Act, 1G71 (MRTU G PULP Act).
Examples by employers include:
 Victimizing workers for union activities,
 Discharging or punishing workers without proper enquiry,
 Refusing to bargain in good faith.
Examples by trade unions or workers include:
 Coercing workers to join a union,
 Intimidating non-striking workers,
 Indulging in go-slow or gherao tactics.
Unfair labour practices disrupt industrial peace and violate workers' rights. Authorities
like Labour Courts or Industrial Tribunals can take action, including ordering
reinstatement or compensation.
In Bharat Iron Works v. Bhagubhai Balubhai Patel, the Supreme Court emphasized that
such practices harm both employees and employers and must be prevented.
Thus, preventing unfair labour practices is essential to ensure healthy industrial relations,
mutual respect, and legal compliance in workplaces.

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 21) Principles of Natural Justice
Principles of Natural Justice are fundamental rules that ensure fairness and impartiality
in legal and administrative proceedings. Though not codified, they are universally followed
to prevent arbitrariness.
The two main principles are:
1. Nemo judex in causa sua – No one should be a judge in their own case. This
ensures impartiality in decision-making.
2. Audi alteram partem – Hear the other side. This ensures that no person is
condemned unheard, and everyone gets a fair chance to present their case.
An additional principle is the speaking order, which means that reasons must be
recorded for decisions.
In disciplinary actions, such as dismissing a workman, these principles require:
 Issuing a charge sheet,
 Holding a fair enquiry,
 Giving the employee an opportunity to defend, and
 Making a reasoned decision by an impartial authority.
In Maneka Gandhi v. Union of India, the Supreme Court held that fair procedure is part of
Article 21 of the Constitution.
Thus, natural justice is essential to ensure fair play, transparency, and justice, especially
in labor and administrative matters.

22) Collective Bargaining

Collective Bargaining is the process of negotiation between employers and a group of
employees, usually represented by a trade union, to determine the terms and conditions
of employment.
It involves discussions on issues such as wages, working hours, benefits, job security,
grievance redressal, and workplace safety. The goal is to reach a collective
agreement that is acceptable to both parties.
Key features of collective bargaining include:
1. Representation through trade unions,
2. Mutual negotiations and not individual talks,
3. Aim to reach a binding agreement, and
4. Promotion of industrial peace and cooperation.
Though not defined under the Industrial Disputes Act, collective bargaining is recognized
and encouraged in labor law as a tool for resolving disputes without strikes or lockouts.
In Tata Engineering and Locomotive Co. Ltd. v. Workmen, the Supreme Court
emphasized the importance of collective bargaining for maintaining industrial harmony.

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Thus, collective bargaining is a cornerstone of industrial democracy, ensuring that
workers have a voice and employers can maintain productivity through mutual
understanding.

23) Award
An Award refers to the final decision given by a Labour Court, Industrial Tribunal, or
National Tribunal in an industrial dispute under the Industrial Disputes Act, 1G47.
As per Section 2(b) of the Act, an award includes an interim or final determination of any
industrial dispute or matter referred to such a court or tribunal for adjudication.
Key features of an award:
1. It is binding on the parties involved,
2. It is enforceable like a civil court decree, and
3. It becomes operative after 30 days of being published by the
appropriate government under Section 17.
Awards may cover issues like wages, bonus, termination, reinstatement, or service
conditions. They are intended to resolve disputes fairly and lawfully.
In The Hindustan Times Ltd. v. Their Workmen, the Supreme Court held that an award
must be clear, reasoned, and based on evidence.
Thus, an award is a crucial instrument for settling industrial disputes, maintaining
industrial peace, and protecting the rights and duties of both employers and workers.

24) Charge Sheet

A Charge Sheet is a formal document issued by an employer to an employee, alleging
specific instances of misconduct or unprofessional behavior. It serves as the initial step in
the disciplinary process, clearly outlining the charges against the employee and providing
them an opportunity to respond.
Key components of a charge sheet include:
1. Employee Details: Name, employee number, and position.
2. Description of Misconduct: Specific allegations with details such as date,
time, and place of occurrence.iPleaders
3. Reference to Violated Policies: Citations of relevant company policies or standing
orders breached.
4. Call for Explanation: A directive for the employee to provide a written
explanation or defense regarding the allegations.
The charge sheet must be drafted with clarity and precision to ensure the employee fully
understands the accusations. This clarity is essential for upholding the principles of natural
justice, allowing the employee a fair chance to defend themselves. In Powari Tea Estate v.

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Barkataki (1SC4), the Supreme Court emphasized that charges must be framed in a
manner that does not create wrongful apprehension in the mind of the accused.iPleaders
Serving a charge sheet is a critical procedural step before initiating any disciplinary action,
ensuring that the process is transparent, fair, and legally compliant.

25) Retrenchment
Retrenchment refers to the termination of a workman's employment by an employer for
any reason other than as a punishment inflicted by way of disciplinary action. This is
defined under Section 2(oo) of the Industrial Disputes Act, 1G47. However, the following
situations are explicitly excluded from this definition:
1. Voluntary retirement of the workman.
2. Retirement upon reaching the age of superannuation, as stipulated in the
employment contract.
3. Termination due to non-renewal of a fixed-term employment contract upon its
expiry.
4. Termination on the grounds of continued ill-health of the workman.
For retrenchment to be considered legally valid, certain conditions must be met as per
Section 25F of the Act:
1. The workman should be provided with one month's prior notice in writing,
indicating the reasons for retrenchment, or paid wages in lieu of such
notice.
2. At the time of retrenchment, the workman must receive compensation equivalent
to 15 days' average pay for each completed year of continuous service.
3. A notice must be served to the appropriate government authority in the
prescribed manner.
These provisions aim to ensure that retrenchment is conducted fairly and that the rights of
workmen are protected during such processes.

26) Model Standing Order

Model Standing Orders are standardized rules prescribed by the government under the
Industrial Employment (Standing Orders) Act, 1G46. They serve as a framework for
employers in industrial establishments to define the terms and conditions of employment,
ensuring uniformity and clarity in workplace regulations.
These orders typically cover aspects such as:
 Classification of workers (e.g., permanent, temporary, apprentices)LinkedIn
 Work hours and shiftsiPleaders+15Lawrbit+15Labour Ministry+15
 Attendance and leave policies
 Procedures for termination or suspension
 Disciplinary actions and grievance redressal mechanisms
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Employers are required to draft their own standing orders in alignment with these model
orders. Until an establishment's specific standing orders are certified, the model standing
orders apply by default. This ensures that, in the absence of customized regulations, there
is a consistent set of rules governing employment conditions.
The primary objective is to promote harmonious employer-employee relations by clearly
outlining mutual obligations and rights, thereby minimizing industrial disputes and
fostering a transparent work environment.

27) Rights of Registered Trade union

Upon registration under the Trade Unions Act, 1G26, a trade union acquires several rights:
1. Legal Entity: The union gains a distinct legal identity, allowing it to own
property, enter contracts, and initiate or face legal proceedings in its own
name.
2. Immunity from Criminal Conspiracy: Members are protected from prosecution for
criminal conspiracy when engaging in legitimate union activities aimed at lawful
objectives.
3. Immunity from Civil Suits: The union is shielded from civil suits related to acts
done in contemplation or furtherance of a trade dispute, provided these acts
are lawful.
4. Right to Establish Funds: The union can create a general fund for administrative
expenses and a separate political fund for promoting civil and political interests of
its members. Contributions to the political fund are voluntary.
5. Right to Amalgamate: The union may merge with other registered trade unions
to form a larger union, following prescribed procedures.
6. Right to Inspect Books: Members have the right to inspect the union's account
books and the list of members, ensuring transparency and accountability.
These rights empower registered trade unions to effectively represent and safeguard the
interests of their members.

28) liabilities of Trade union

A registered trade union in India, while enjoying certain rights, is subject to specific liabilities
to ensure lawful and transparent operations:
1. Compliance with Legal Provisions: The union must adhere to the Trade Unions
Act, 1G26, incorporating mandatory provisions in its constitution, such as
objectives, membership criteria, fund utilization, and dissolution procedures.
2. Formation of an Executive Committee: Establishing an executive body is required
to ensure proper governance and representation.

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 3. Utilization of General Funds: The union is obligated to use its general funds strictly
for specified purposes like administrative expenses, legal proceedings, and member
welfare activities.
4. Maintenance of Separate Political Fund: If engaging in political activities, the
union must create a distinct political fund, with contributions being voluntary
and separately accounted for.
5. Transparency and Accountability: The union must keep its account books and
membership lists accessible for inspection by its members, promoting
transparency.
6. Annual Financial Reporting: Submission of an audited financial statement to the
Registrar annually is mandatory, detailing receipts, expenditures, assets, and
liabilities.
These liabilities ensure that registered trade unions operate responsibly, transparently, and in
accordance with the law, safeguarding the interests of their members.

2G) Functions of the certifying officer

The Certifying Officer under the Industrial Employment (Standing Orders) Act, 1G46 is
responsible for certifying and regulating standing orders in industrial establishments.
These standing orders define the terms and conditions of employment for workers.
Key functions include:
1. Receiving Draft Standing Orders: The employer submits draft standing orders
covering matters like classification of workers, work hours, leave, conduct, and
disciplinary rules.
2. Sending Copies to Workmen: The Certifying Officer forwards copies of the draft to
trade unions or representatives of the workmen for objections or suggestions.
3. Hearing Objections: If any objections are raised, the Certifying Officer conducts a
hearing, allowing both employer and employee representatives to be heard.
4. Ensuring Fairness: The officer ensures that the standing orders are fair, reasonable,
and consistent with the Model Standing Orders prescribed by the government.
5. Certification: After modifications, if necessary, the officer certifies the standing
orders and sends copies to both parties.
6. Record Maintenance: Certified copies are filed and maintained for reference.
Through these functions, the Certifying Officer ensures that employment conditions are
clearly defined, legally compliant, and acceptable to both employers and employees.

30) Closure
Closure refers to the permanent shutting down of a place of employment or part of it by
the employer. It is defined under Section 2(cc) of the Industrial Disputes Act, 1G47.

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Closure is different from lay-off or retrenchment as it involves the complete termination
of business operations, not just temporary suspension or reduction of staff. It may be due
to financial losses, lack of raw materials, market conditions, or any other genuine reason.
If an undertaking employs 50 or more workmen, the employer must give 60 days’ prior
notice to the appropriate government before closing the unit, as per Section 25FFA.
For undertakings with 100 or more workmen, prior government permission is required
under Section 25-O. Failure to obtain permission can make the closure illegal.
Upon valid closure, affected workmen are entitled to compensation equivalent to 15
days’ average pay for every completed year of continuous service.
Closure must be done in good faith and not as a means to remove workers unjustly. It plays
a critical role in balancing the right of employers to discontinue business with the rights of
workers to fair compensation and due process.
Long Essay Ǫuestions
1) Discuss in brief the objects, features and provisions related to
Trade union act 1G26, write a note on origin and its history
Introduction
The Trade Unions Act, 1G26 is a landmark legislation in the field of labor law in India,
providing legal recognition and protection to trade unions. Before the enactment of this
law, trade unions were often considered unlawful associations. This Act marked the
beginning of a formal structure to regulate trade unions and secure their rights and
responsibilities within the industrial framework.

Origin and History

The origin of the Trade Unions Act can be traced back to the early 20th century, influenced
by the growth of the industrial sector and organized labor movements in British India.
Initially, trade unions were formed to protect workers from exploitation and to demand
better working conditions.
The first trade union in India was the Madras Labour Union, formed in 1G18. Following
this, several others emerged, like the All India Trade Union Congress (AITUC) in 1G20.
These unions faced legal hurdles as they were not recognized entities and could be
prosecuted under the Indian Penal Code, 1860, for criminal conspiracy when organizing
strikes.
To address these issues and provide legal protection, a bill was introduced in the Indian
Legislative Assembly, resulting in the passing of the Trade Unions Act, 1G26, which came
into force on 1st June 1G27.

Objectives of the Act

The main objectives of the Trade Unions Act, 1926 are:

16
 1. To provide for the registration of trade unions and grant them legal status.
2. To regulate the functioning of trade unions, including their structure,
management, and accountability.
3. To define the rights and liabilities of registered trade unions.
4. To promote and protect the interests of workers through collective efforts.
5. To ensure fair labor practices and prevent arbitrary action against union members.
6. To provide immunities to trade unions from certain civil and criminal liabilities.

Key Features of the Act

The Trade Unions Act, 1926 has several defining features that aim to safeguard and
regulate the activities of trade unions:
1. Legal Recognition: Upon registration, a trade union becomes a body corporate
with legal standing.
2. Minimum Membership Requirement: At least 7 members are required to form a
trade union. For registration, there must be either 10% of the total workforce or
100 workers, whichever is less.
3. Protection from Prosecution: Registered trade unions enjoy immunity from
criminal conspiracy charges for actions taken during lawful trade union activities.
4. Separate Political Fund: Unions can maintain a separate fund for political
purposes, but contributions are voluntary.
5. Annual Filing of Returns: Trade unions must submit annual audited accounts and
a report of activities to the Registrar.
6. Right to Amalgamate and Dissolve: Registered trade unions can merge with other
unions or dissolve following the process prescribed in the Act.

Important Provisions of the Act

1. Definition (Section 2)
 Trade Union: Any combination formed primarily to regulate relations
between workmen and employers or between workmen and workmen.
 Executive: The body responsible for the management of the union’s affairs.
 Office-bearer: Includes union leaders and other officials involved in managing the
union.
2. Registration of Trade Unions (Sections 3 to G)
 Application must be signed by at least 7 members.
 The union’s constitution must include name, objectives, list of members, rules of
fund utilization, and mode of dissolution.
 The Registrar of Trade Unions reviews and certifies the union.

17
  Upon registration, the union is issued a certificate of registration, which is
conclusive evidence of its legal status.
3. Rights and Liabilities of Registered Trade Unions (Sections 15 to
17) Rights:
 Can acquire and hold property.
 Can enter contracts and sue or be sued in its name.
 Can create a general fund for specified purposes.
 Can set up a political fund to promote civic and political interests.
Liabilities:
 Must maintain records and financial statements.
 Must operate within the framework of its constitution.
 Must hold annual elections and maintain transparency.
4. Immunities (Sections 17 and 18)
 Section 17: Provides immunity from criminal conspiracy for legitimate trade union
activities.
 Section 18: Provides immunity from civil suits for acts done in furtherance of a
trade dispute, like inducing breach of contract or interference with business.
5. Amalgamation of Trade Unions (Section 24)
Two or more registered trade unions may amalgamate into one union with the approval of
at least 50% of the members, and 60% of those voting must support the merger.
6. Dissolution of Trade Unions (Section 27)
A union may be dissolved according to its internal rules. Notice of dissolution must be
submitted to the Registrar and certified to make it legally valid.
7. Annual Returns (Section 28)
Every registered trade union must submit an annual return containing financial details,
membership numbers, and changes in leadership. This ensures transparency and
regulatory oversight.

Significance of the Act

The Trade Unions Act, 1926, played a vital role in formalizing labor rights in India. Its key
contributions include:
 Legal status to trade unions, making them legitimate representatives of workers.
 Empowerment of collective bargaining, strengthening the voice of labor.
 Reduction of exploitation, ensuring fair treatment and better working conditions.
 Promoting industrial peace, by legally regulating labor-employer relations.

Criticism and Limitations

Despite its contributions, the Act has some limitations:

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 1. Multiplicity of Unions: The law permits multiple unions in one establishment,
leading to internal rivalry and weakened bargaining power.
2. Lack of Compulsory Recognition: The Act does not compel employers to
recognize registered unions for negotiation.
3. Political Influence: Unions often become aligned with political parties, affecting
their independence and focus on workers’ welfare.
4. Outdated Provisions: Many sections are now outdated and require reforms to
meet modern industrial challenges.

Reforms and Modern Developments

To address the shortcomings of the Trade Unions Act, 1926, and to align with contemporary
needs, the government introduced the Industrial Relations Code, 2020, which seeks to:
 Simplify labor laws by combining the Trade Unions Act with other laws like
the Industrial Disputes Act.
 Introduce recognition of negotiating unions, enhancing the role of majority unions
in collective bargaining.
 Improve dispute resolution mechanisms.
 Promote a more efficient and flexible labor environment.
Once fully enforced, this Code will replace the Trade Unions Act, 1926, and is expected to
bring uniformity and clarity to industrial relations.

Conclusion
The Trade Unions Act, 1G26 was a significant step toward the protection and
empowerment of workers in India. By granting legal recognition and defining the structure
and functioning of trade unions, it laid the foundation for organized labor movements and
collective bargaining in the country. Although the Act has served its purpose for decades,
changing industrial dynamics call for reform and modernization. The upcoming Industrial
Relations Code aims to address these challenges while preserving the essence of the
original Act. Nonetheless, the Trade Unions Act remains a historical cornerstone in the
evolution of labor law in India.

2) Discuss the rights and liabilities of a registered trade

union Introduction
A trade union is a vital institution in labor law that enables workers to collectively
represent their interests. The Trade Unions Act, 1G26 provides for the registration of
trade unions and grants them specific rights and liabilities. These legal provisions aim to
regulate their functioning, ensure accountability, and empower them to protect workers’
welfare effectively.

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Legal Recognition of Trade Unions
Under the Trade Unions Act, 1G26, a trade union attains legal status upon registration.
This means it becomes a body corporate with a distinct legal identity, capable of holding
property, entering into contracts, and suing or being sued in its own name. The Act
ensures that a registered trade union enjoys certain privileges and immunities that are
essential for it to function effectively in the industrial sector.

Rights of a Registered Trade Union

The following are the key rights conferred upon a registered trade union:

1. Right to Legal Entity and Perpetual Succession

Once registered, a trade union becomes a legal entity with:
 Perpetual succession
 Common seal
 Power to acquire and hold property
 Power to contract
 Right to sue or be sued
This gives the union the ability to operate independently of its members and maintain
continuity regardless of changes in its leadership or membership.

2. Right to Maintain Funds

A registered trade union can maintain two types of funds:
a) General Fund (Section 15)
Used for:
 Payment of salaries and allowances
 Legal proceedings involving the union
 Compensation to members during disputes
 Conducting trade disputes and negotiations
 Welfare activities like education and medical aid
b) Political Fund (Section 16)
 Used for promoting the political interests of workers.
 Contributions are voluntary, and non-contributors cannot be discriminated against.
 Funds may be used for supporting candidates, distributing political literature, and
organizing political meetings.

3. Right to Immunity from Civil and Criminal Liability

a) Criminal Immunity (Section 17)

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  Trade union members are immune from prosecution for criminal conspiracy under
Section 120B of the Indian Penal Code, provided the act is done in furtherance of a
lawful trade dispute.
b) Civil Immunity (Section 18)
 The union is protected from civil suits arising out of:
o Inducing others to break employment contracts
o Interfering with trade, business, or employment
o Peaceful picketing during strikes
These immunities allow unions to operate without fear of legal backlash for lawful union
activities.

4. Right to Amalgamate and Dissolve

A registered trade union has the right to:
 Amalgamate with other unions (Section 24)
 Dissolve as per its own rules (Section 27)
This provides flexibility to unions to grow, adapt, or cease operations based on the needs of
their members.

5. Right to Inspection and Participation

 Members have the right to inspect account books, minutes of meetings, and
membership records.
 This ensures transparency and accountability in union functioning.

6. Right to Represent Members

 A registered trade union can represent workers in disputes, negotiate
settlements, and participate in collective bargaining.
 It can appear before Labour Courts, Tribunals, and conciliation officers
to advocate for the rights of its members.

7. Right to Recognition (Indirect)

While the Trade Unions Act, 1926, does not guarantee statutory recognition, many state
laws and company policies grant this right to the majority union, giving it the exclusive
right to negotiate with the employer.

Liabilities of a Registered Trade Union

To ensure responsible functioning, the Act imposes several liabilities on registered trade
unions:

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1. Compliance with the Act and Rules
The union must comply with all provisions of the Trade Unions Act, 1G26, including:
 Minimum membership requirement
 Proper registration process
 Following prescribed objectives
Failure to comply can lead to cancellation of registration by the Registrar.

2. Proper Constitution and Governance

 The union must adopt a constitution or rules that govern:
o Name and objective
o Membership eligibility
o Duties of office-bearers
o Manner of fund utilization
o Disciplinary actions
o Procedure for dissolution
 These rules must be submitted with the application for registration.

3. Restrictions on Office-Bearers
 At least 50% of office-bearers must be actually engaged in the industry
connected with the union.
 Individuals convicted of certain offences are barred from holding office for a
specified period.

4. Maintenance of Accounts and Records

 The union must maintain proper books of accounts, showing all financial
transactions.
 Records should include:
o Receipts and expenditures
o Assets and liabilities
o Membership registers
o Minutes of meetings

5. Annual Returns and Audits

 Under Section 28, the union must submit an annual return to the Registrar of
Trade Unions containing:
o Financial statements
o Changes in office-bearers
o Number of members

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  The accounts must be audited by a certified auditor before submission.

6. Use of Funds for Permitted Purposes

Funds must be used strictly for the purposes mentioned under Section 15. Misuse of
funds may lead to legal consequences and loss of registration.

7. Non-Discrimination in Political Fund Contributions

 Members must not be compelled to contribute to the political fund.
 Non-contributors must not be denied any rights or benefits.

8. Liability to Legal Action

 Despite some immunity, unions can be held liable if:
o They commit illegal acts (e.g., violence, destruction of property)
o They breach contractual obligations
o They operate beyond their stated objectives

Judicial Interpretations
Indian courts have elaborated on the rights and liabilities of trade unions in several cases:
1. All India Bank Employees’ Association Case
 The court recognized the union’s right to represent employees but held that there is
no fundamental right to collective bargaining unless provided by law.
2. Rohtas Industries v. Brijnandan
 The Supreme Court held that misuse of union funds or powers can lead to loss of
protection under the Act.
3. B.R. Singh v. Union of India
 The court emphasized that trade unions must function within legal boundaries
to retain their privileges.

Importance of Balancing Rights and Liabilities

The balance between rights and liabilities is crucial for the smooth functioning of trade
unions:
 Rights empower unions to protect and promote the interests of workers.
 Liabilities ensure that unions operate ethically, transparently, and lawfully.
This balance helps maintain industrial peace, reduces conflict, and ensures that unions
remain accountable to their members and the law.

Conclusion

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The Trade Unions Act, 1G26 provides a comprehensive legal framework that not only
empowers registered trade unions with significant rights but also imposes vital liabilities.
These provisions ensure that trade unions act as responsible representatives of labor,
protecting workers’ interests while maintaining discipline and legality in their operations.
As industrial relations evolve, trade unions must adapt while adhering to the legal
responsibilities imposed by the Act. The balance of rights and liabilities is essential to
preserve industrial harmony, workers’ welfare, and economic stability in the country.

3) Trace the historical development of Industrial Legislation in

India Introduction
Industrial legislation plays a key role in regulating the relationship between employers and
workers, promoting labor welfare, and ensuring industrial peace. In India, the
development of industrial legislation has been a gradual process influenced by colonial
policies, labor movements, international labor standards, and socio-economic reforms.
This essay traces the historical evolution of industrial laws in India from the colonial
period to the present day.

1. Pre-Independence Period
The foundation of industrial legislation in India was laid during British rule, primarily to
serve the interests of colonial industries and to maintain a disciplined labor force.
a) Early Laws for Factory Workers (1881 – 1G11)
 Factories Act, 1881: The first labor law in India, aimed at regulating the working
hours of children and improving factory conditions. It applied only to factories
using power and employing 100 or more workers.
 Factories Act, 18G1: Extended protections to women workers and reduced
working hours.
 Workmen's Breach of Contract Act, 185G: Criminalized the breach of employment
contracts by workers, favoring employers and reflecting colonial priorities.
b) Growing Reforms (1G11 – 1G30)
 Indian Factories Act, 1G11: Introduced safety and health measures and reduced
working hours for women and children.
 Trade Disputes Act, 1G2G: First attempt to control industrial disputes. It
restricted strikes and lockouts but did not provide for their fair resolution.
 Workmen’s Compensation Act, 1G23: Marked a shift toward labor welfare
by providing compensation for work-related injuries.
c) Emergence of Trade Unions
 Rise of Organized Labor: Post-World War I, the labor movement gained
momentum. The All India Trade Union Congress (AITUC) was founded in 1920.

24
  Trade Unions Act, 1G26: Recognized trade unions and granted them legal status,
protecting members from certain civil and criminal liabilities.

2. Post-Government of India Act, 1G35

The Government of India Act, 1G35 brought labor under the concurrent list, allowing both
central and provincial governments to enact labor laws. This period saw increased
legislative activity in the labor sector.
 Payment of Wages Act, 1G36: Ensured timely payment of wages and
protected workers from arbitrary deductions.
 Bombay Industrial Disputes Act, 1G38: Provided for conciliation and arbitration in
industrial disputes and influenced future central legislation.

3. Post-Independence Period (After 1G47)

After independence, the focus shifted toward protecting workers’ rights, promoting welfare,
and achieving industrial harmony. The Indian Constitution also played a vital role in
shaping labor laws.
a) Constitutional Provisions
 Fundamental Rights (Part III): Right to form associations or unions (Article 19),
protection from exploitation (Article 23), and equality before the law (Article
14).
 Directive Principles of State Policy (Part IV): Emphasize securing just and humane
conditions of work, living wages, equal pay for equal work, and participation of
workers in management.
b) Key Legislations Enacted Post-Independence
 Industrial Disputes Act, 1G47: Replaced the Trade Disputes Act, 1929. Provided a
detailed framework for the investigation and settlement of industrial disputes
through conciliation, adjudication, and arbitration.
 Factories Act, 1G48: Comprehensive legislation regulating health, safety, welfare,
working hours, and leave of factory workers.
 Minimum Wages Act, 1G48: Ensured that workers receive minimum rates of
wages fixed by the government for scheduled employments.
 Employees' State Insurance Act, 1G48: Provided medical and cash benefits to
employees in case of sickness, maternity, or injury.
 Employees' Provident Funds Act, 1G52: Established a retirement benefits scheme
for employees in factories and other establishments.
 Maternity Benefit Act, 1G61: Granted paid leave and job security to women
workers during maternity.
 Payment of Bonus Act, 1G65: Made it compulsory for employers to share
profits with employees through annual bonuses.
25
  Contract Labour (Regulation and Abolition) Act, 1G70: Regulated employment of
contract labor and provided conditions for their welfare.
 Equal Remuneration Act, 1G76: Ensured equal pay for equal work for men
and women.

4. Impact of International Labor Standards

India became a founding member of the International Labour Organization (ILO) in 1919.
Many labor laws have been shaped by ILO conventions and recommendations, including:
 Freedom of association
 Right to collective bargaining
 Elimination of child labor
 Non-discrimination in employment
India has ratified several ILO conventions, and its labor policies have aligned with international
standards over the years.

5. Economic Liberalization and Labor Reforms (1GG1 Onwards)

With economic reforms in the early 1990s, India shifted toward liberalization, privatization,
and globalization. This raised concerns about labor flexibility and employment security.
Key Developments:
 Increased demand for simplification and modernization of labor laws.
 Growth in contractual and informal employment.
 Encouragement of public-private partnerships and foreign investment.
However, the existing labor laws were seen as complex and overlapping, making
compliance difficult, especially for small and medium enterprises.

6. Consolidation of Labor Laws: The Labor Codes (201G–2020)

To address the complexity and outdated nature of labor laws, the Government of India
introduced four labor codes, aiming to consolidate 29 central labor laws:
1. Code on Wages, 201G
o Combines laws like the Minimum Wages Act, Payment of Wages Act,
and others.
o Ensures a universal minimum wage and simplifies wage definitions.
2. Industrial Relations Code, 2020
o Combines the Industrial Disputes Act, Trade Unions Act, and Industrial
Employment Standing Orders Act.
o Introduces provisions for recognition of negotiating unions and rules
for strikes, layoffs, and retrenchment.
3. Code on Social Security, 2020

26
 o Integrates laws like EPF Act, ESI Act, Maternity Benefit Act, and others.
o Aims to extend social security to unorganized and gig workers.
4. Occupational Safety, Health and Working Conditions Code, 2020
o Merges laws related to factory safety, working conditions, and welfare.
o Introduces common provisions for various establishments and industries.
These codes aim to enhance ease of doing business, ensure worker protection,
and create a uniform compliance framework.

7. Present Scenario and Challenges

While the new labor codes promise modernization, several challenges remain:
 Implementation delays: As of now, full implementation is pending due to the need
for state-level rules.
 Lack of awareness among workers and employers.
 Concerns from trade unions regarding dilution of workers’ rights.
 Protection of informal sector workers, who form a large part of India’s labor force.
Despite these challenges, the trend indicates a move towards a more balanced and
growth-oriented labor law regime.

Conclusion
The historical development of industrial legislation in India reflects the country’s
journey from colonial exploitation to social justice and economic development. The
focus has shifted from employer-centric laws to worker welfare, industrial harmony, and
economic growth.
From the early Factory Acts to the comprehensive labor codes, Indian labor law has
evolved in response to changing political, social, and economic conditions. The recent
labor reforms represent a major shift toward simplification, transparency, and
compliance ease, aiming to balance the needs of workers and industry alike.
To make these laws truly effective, the government must ensure timely implementation,
build awareness, and address the concerns of all stakeholders, including those in the
informal sector. Only then can industrial legislation fulfill its role as a tool for inclusive
growth and social justice.
4) Discuss and distinguish between Industrial dispute and
individual dispute with the help of decided case laws
Introduction
The concept of dispute resolution is central to industrial relations. In labor law, disputes
are broadly classified into industrial disputes and individual disputes. Both types of
disputes differ in scope, parties involved, and the legal procedures governing them. This

27
essay explains the meaning, nature, and key differences between the two, along with
relevant case laws under the Industrial Disputes Act, 1G47.

Meaning of Industrial Dispute

An industrial dispute is defined under Section 2(k) of the Industrial Disputes Act, 1G47
as:
"Any dispute or difference between employers and employers, or between employers and
workmen, or between workmen and workmen, which is connected with the employment
or non-employment or the terms of employment or with the conditions of labor of any
person."
This definition implies that for a dispute to qualify as an industrial dispute:
 There must be a collective element, and
 The dispute must relate to employment, non-employment, or labor conditions.

Essential Features of Industrial Dispute

1. Presence of Two Opposing Parties: Employers vs. workmen, employers vs.
employers, or workmen vs. workmen.
2. Connection to Employment: The subject matter must relate to conditions of
service or employment.
3. Collective Dispute: The dispute must generally involve a group of workers or be
espoused by a union or a representative body.
4. Not Necessarily Current Employees: It may concern past, present, or
prospective employees.

Meaning of Individual Dispute

An individual dispute refers to a conflict between a single workman and the employer,
typically relating to dismissal, retrenchment, or termination.
Initially, the Industrial Disputes Act did not recognize individual disputes unless they were
supported by a trade union or a group of workmen. However, this was changed with the
introduction of Section 2A by amendment in 1G65.

Section 2A – Individual Disputes Deemed Industrial Disputes

Section 2A states that:
"Where any employer discharges, dismisses, retrenches or otherwise terminates the
services of an individual workman, any dispute or difference between that workman and
his employer shall be deemed to be an industrial dispute."
Thus, individual disputes relating to termination of service are now treated as industrial
disputes, even without union support.

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Key Distinctions Between Industrial and Individual Disputes
Point of
Difference Industrial Dispute Individual Dispute
Definition Section 2(k) Section 2A
Collective (workmen or unions
Parties Involved vs. employer) Single workman vs. employer
Nature Collective grievance Personal grievance
Need for Required by union or body
Sponsorship Not required under Section 2A
of workers
Wages, conditions of service,
Dispute Type bonus, etc. Termination-related issues

Narrow—mostly about dismissal or

Scope Broader in terms of coverage retrenchment
Usually requires conciliation, Direct access through Section 2A in
Procedure reference by govt.
specific cases

Relevant Case Laws

1. Workmen of Dimakuchi Tea Estate v. Management (1G58)
Facts: A dispute arose over the dismissal of a single employee.
Held: The Supreme Court ruled that an individual dispute is not an industrial dispute
unless espoused by a union or a group of workmen.
Significance: This case established that collective interest is essential under Section
2(k), unless covered by Section 2A.

2. Bombay Union of Journalists v. The Hindu (1G61)

Facts: An individual journalist was dismissed, and the union raised a dispute.
Held: The court recognized the dispute as an industrial dispute since it was supported by a
recognized union.
Significance: Espousal by a union transforms an individual grievance into an industrial
dispute under Section 2(k).

3. S.N. Datt v. Labour Court, Patna (1G68)

Facts: An employee sought redress for wrongful termination without union support.
Held: The court ruled that without union backing, the dispute cannot be termed industrial
under Section 2(k).

29
Significance: Reaffirmed the need for collective support for disputes under Section 2(k)
before Section 2A was introduced.

4. Punjab National Bank Ltd. v. All India PNB Employees' Federation (1G60)
Held: The Supreme Court stated that disputes concerning a class of employees or
service conditions clearly fall under industrial disputes.
Significance: Differentiated between general issues (industrial) and individual grievances.

5. Shambhu Nath Goyal v. Bank of Baroda (1G83)

Held: The Supreme Court interpreted Section 2A liberally, stating that dismissed
employees could directly seek remedy as their dispute is deemed industrial.
Significance: Strengthened the rights of individual workmen under Section 2A.

6. Central Inland Water Transport Corporation v. Their Workmen (1G74)

Held: The court emphasized that termination without proper justification is unfair, and
such disputes are maintainable individually under Section 2A.
Significance: Reinforced that termination-related disputes are protected even without
collective support.

Legal Remedies Available

For Industrial Disputes:
 Conciliation by a government officer
 Adjudication by Labor Court or Industrial Tribunal
 Voluntary arbitration
 Strikes and lockouts under regulated conditions
For Individual Disputes under Section 2A:
 Direct approach to Labor Courts
 No need to seek union help
 Protection from illegal termination

Importance of Section 2A
Section 2A acts as a remedial provision to ensure justice for workers who face termination
without union support. It closes the gap in earlier law where individual grievances had no
legal remedy unless supported collectively.
It:
 Protects vulnerable employees
 Simplifies the dispute resolution process
 Avoids dependence on union politics

30
  Promotes individual access to justice

Conclusion
The distinction between industrial dispute and individual dispute lies in the collective
nature of the former and the personal grievance of the latter. While industrial disputes
cover broader issues involving groups of workers or unions, individual disputes are limited
to personal employment issues like dismissal, retrenchment, or discharge.
The introduction of Section 2A was a significant step in Indian labor law, as it ensured that
individual workmen are not left without remedy. With the help of judicial
interpretations, this distinction has been clarified and evolved over time to strengthen the
rights of workers, promote industrial harmony, and ensure fair labor practices.
5) Define and discuss the legal provisions related to Volutary
Arbitration Introduction
Voluntary arbitration is a method of resolving industrial disputes where the employer
and the workmen mutually agree to submit their conflict to an independent third party
(arbitrator), whose decision is final and binding. This system encourages peaceful and
efficient settlement of disputes without resorting to strikes, lockouts, or lengthy litigation.
The concept is legally recognized under Section 10A of the Industrial Disputes Act, 1G47.

Definition of Voluntary Arbitration

Voluntary arbitration refers to the dispute resolution process where both parties in an
industrial dispute voluntarily agree to refer the matter to arbitration and accept the
arbitrator’s award as binding. It is different from compulsory adjudication, as it depends
on the free will and cooperation of both employer and employees.

Objective of Voluntary Arbitration

The primary aim of voluntary arbitration is to:
 Provide a speedy, impartial, and economical method of resolving disputes.
 Reduce the burden on Labor Courts and Tribunals.
 Avoid prolonged industrial unrest such as strikes or lockouts.
 Encourage cooperation and industrial harmony through dialogue.

Legal Provisions under the Industrial Disputes Act, 1G47 Section

10A – Voluntary Reference of Disputes to Arbitration
Section 10A of the Industrial Disputes Act, 1947 provides the statutory framework for
voluntary arbitration. It was inserted through an amendment in 1G56 to promote out-of-
court settlement of disputes.

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Key Provisions of Section 10A
1. Mutual Agreement:
o Both the employer and the workmen must mutually agree in writing to
refer the dispute to arbitration.
o This agreement can be made at any time, whether before or after
the dispute has been referred to conciliation.
2. Form of Arbitration Agreement:
o The agreement must be in writing and should mention:
 The names of the parties,
 The dispute to be resolved,
 The name(s) of the arbitrator(s), and
 The procedure to be followed.
o It must be signed by the parties to the dispute.
3. Notification to Government:
o A copy of the arbitration agreement must be forwarded to the appropriate
government, which will publish it in the Official Gazette.
4. No Strikes or Lockouts:
o After the dispute is referred to arbitration and published, no strike or lockout
is permitted in connection with the dispute.
5. Award by Arbitrator:
o The arbitrator must conduct proceedings as per principles of natural justice.
o The arbitration award must be submitted to the government, which then
publishes it.
o The award becomes binding and enforceable after 30 days of its
publication.
6. Applicability to Workmen:
o If a union or representative body refers a dispute to arbitration, the award
binds all the workers concerned, even if they were not individually parties to
the arbitration.

Advantages of Voluntary Arbitration

1. Faster Resolution:
o Arbitration is usually quicker than formal court or tribunal proceedings.
2. Cost-Effective:
o It reduces legal costs and avoids long delays.
3. Flexibility:
o The parties can choose their own arbitrator and procedure.
4. Confidentiality:

32
 Proceedings are private, reducing public tension during industrial disputes.
o
5. Less Formal:
o Arbitration does not require strict procedural compliance like in a court.
6. Industrial Harmony:
o Encourages cooperation and mutual respect between employers and
workmen.

Limitations of Voluntary Arbitration

1. Lack of Enforcement:
o If one party refuses to abide by the agreement or award,
enforcement becomes difficult.
2. Bias in Arbitrator Selection:
o Choosing a neutral and unbiased arbitrator can sometimes be contentious.
3. Non-Participation by All Workers:
o If the arbitration is not supported by all sections of workers, its
effectiveness may be questioned.
4. Delayed Publication:
o Delays in publication of the award can affect timely enforcement.

Important Case Laws

1. Engineering Mazdoor Sabha v. Hind Cycles Ltd. (1G63)
Facts: The dispute was referred to voluntary arbitration but later challenged.
Held: The Supreme Court upheld the validity of voluntary arbitration, stating that the
procedure under Section 10A is legally binding if followed properly.
2. Gujarat Steel Tubes Ltd. v. Gujarat Steel Tubes Mazdoor Sabha (1G80)
Held: The Supreme Court reiterated the importance of natural justice in arbitration and
emphasized that the award must be fair, reasoned, and just.
3. Tata Chemicals Ltd. v. Workmen (2004)
Held: The Court stated that an arbitrator under Section 10A has quasi-judicial functions
and their decision carries legal weight equivalent to a tribunal award.

Comparison with Adjudication

Aspect Voluntary Arbitration Compulsory Adjudication
Nature Voluntary Government-referred
Agreement Based on mutual consent Based on statutory reference
Time Taken Faster May involve long
litigation Flexibility More flexible (choice of
arbitrator, process) Less flexible
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Aspect Voluntary Arbitration Compulsory Adjudication
Confidentiality High Public hearings
Finality Generally binding Binding and enforceable

Government’s Role in Promoting Arbitration

 Industrial Policy encourages use of arbitration to reduce court burden.
 Labor departments often maintain a panel of recognized arbitrators.
 Governments are expected to publish awards promptly and monitor enforcement.

Recent Developments and Relevance

With the introduction of the Industrial Relations Code, 2020, the provision for voluntary
arbitration continues to exist, promoting the modernization of dispute resolution
mechanisms. It aligns with global trends where alternative dispute resolution methods are
increasingly preferred over litigation.
The simplicity, speed, and mutual trust fostered by voluntary arbitration make it a
valuable tool in India's labor law framework, especially in a time where industrial disputes
are becoming more complex.

Conclusion
Voluntary arbitration under Section 10A of the Industrial Disputes Act, 1947 is a
progressive step toward peaceful and cooperative resolution of industrial conflicts. It
reflects the principles of collective bargaining, mutual agreement, and participative
justice.
By enabling both employers and workers to resolve their issues outside the formal judicial
system, it reduces tension, delays, and costs. However, its success depends on the good
faith, impartiality, and timely enforcement of awards. As labor relations evolve in India,
voluntary arbitration remains an essential and relevant method for industrial peace and
efficiency.

6) Discuss the concept of management rights of action during

proceedings Introduction
In industrial law, the balance between the rights of employers and the protection of
workers is a key concern. While employees are given protections under the law, especially
during the pendency of industrial dispute proceedings, employers or management also
retain certain rights of action. The Industrial Disputes Act, 1G47 seeks to maintain this
balance by defining and regulating what an employer can or cannot do during the
pendency of proceedings such as conciliation, adjudication, or arbitration.

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Concept of Management Rights
The term “Management Rights” refers to the legal authority and discretion of the
employer to manage, control, and direct business operations. These include:
 The right to hire or fire employees
 The right to assign duties
 The right to discipline
 The right to determine work conditions, production targets, and schedules
However, during the pendency of industrial disputes before a legal forum, these rights
are subject to legal limitations to prevent unfair labor practices or retaliation.

Legal Framework: Sections 33 and 33A of the Industrial Disputes Act, 1G47
The rights of management during proceedings are primarily governed by Section 33 and
Section 33A of the Industrial Disputes Act.

Section 33 – Conditions of Service to Remain Unchanged During Proceedings

Section 33 of the Act restricts the employer’s rights to make changes during the pendency
of any proceeding under the Act. The objective is to ensure status quo and prevent
victimization or coercion of workers involved in disputes.

Types of Proceedings Covered

Section 33 applies during the pendency of:
 Conciliation proceedings
 Adjudication by Labor Court, Industrial Tribunal or National Tribunal
 Arbitration under Section 10A

Structure of Section 33
Section 33 is divided into three parts:
1. Section 33(1) – Protection for Workmen Connected with Dispute
No employer shall:
 Alter the conditions of service of any workman concerned in the dispute,
 Or take any disciplinary action (including dismissal or discharge) against such
workman, without express permission from the adjudicating authority.
Objective:
To prevent victimization of the workman directly involved in the dispute.

2. Section 33(2) – Protection for Workmen Not Connected with Dispute

In the case of workmen not connected with the dispute, the employer may:

35
  Alter conditions of service, or
 Dismiss or discharge them for misconduct,
provided that such action is not in relation to the dispute and does not involve
victimization.

3. Section 33(2)(b) – Special Procedure for Dismissal of Workmen

If the employer wants to dismiss or discharge a workman during the pendency of
proceedings, the following conditions must be met:
 The dismissal must be for misconduct.
 The employer must pay wages for one month.
 The employer must seek approval of the disciplinary action from the concerned
authority.
Note: The action becomes effective only upon approval by the adjudicating authority.

Section 33A – Redressal for Contravention

If the employer violates Section 33, the affected workman may file a complaint under
Section 33A.
 This is independent of any reference.
 The authority will inquire into the complaint and grant appropriate relief.
 Section 33A provides a remedy for victimization or illegal actions by employers
during proceedings.

Case Laws on Management Rights During Proceedings

1. Jaipur Zila Sahakari Bhoomi Vikas Bank Ltd. v. Ram Gopal Sharma (2002)
Facts: The workman was dismissed during the pendency of proceedings without seeking
approval.
Held: The Supreme Court ruled that approval under Section 33(2)(b) is mandatory, and
any action taken without it is void ab initio.
Significance: Reinforced that management cannot unilaterally dismiss a worker involved
in dispute proceedings.

2. Punjab Beverages Pvt. Ltd. v. Suresh Chand (1G78)

Held: The Court ruled that mere application for approval does not justify dismissal.
Approval must be obtained before the dismissal becomes valid.

3. Lalla Ram v. DCM Chemical Works Ltd. (1G78)

Held: While considering approval under Section 33(2)(b), the authority must check:
 Whether a proper domestic enquiry was held

36
  Whether there was evidence to support the charge
 Whether the employer acted bonafide

4. Straw Board Manufacturing Co. v. Gobind (1G62)

Held: Any change in conditions of service without permission during ongoing proceedings
is illegal. Management must maintain status quo unless permitted otherwise.

Management Rights Permitted Under Law

Despite the restrictions, the employer retains certain rights:
1. Routine Management Functions
 Assigning daily tasks
 Changing shifts or duties that do not affect terms of employment
 Enforcing discipline through lawful procedures
2. Action Against Workmen Not Involved in Dispute
 The employer may take action under Section 33(2) provided it is not linked to
the ongoing dispute.
3. Initiating Disciplinary Proceedings
 Disciplinary action can be initiated during proceedings if it follows proper
procedures and is not punitive or retaliatory.
4. Application for Approval
 Employers can seek approval under Section 33(2)(b) for termination or dismissal
during proceedings.

Rationale Behind Restrictions

 To protect workers from being targeted for participating in legal proceedings.
 To ensure fairness and impartiality during dispute resolution.
 To prevent disruption of conciliation or adjudication caused by management
actions.
 To encourage a balanced and peaceful resolution of disputes.

Consequences of Violating Section 33

 The action taken (e.g., dismissal) is rendered illegal and void.
 The workman can file a complaint under Section 33A.
 The employer may be directed to reinstate the workman with back wages.
 Such action may also lead to industrial unrest or further disputes.

Recent Trends and Reform Provisions

37
The Industrial Relations Code, 2020, which seeks to consolidate and simplify labor laws,
continues to include provisions similar to Section 33 and 33A, ensuring that:
 Workers are not penalized during legal proceedings.
 Employers retain basic management rights with safeguards.
 Disciplinary actions are regulated and subject to approval.
This modern legal approach aims to uphold the spirit of natural justice while promoting
ease of doing business.

Conclusion
The concept of management rights of action during proceedings is a balanced legal
framework that protects industrial peace and ensures justice for workers while
permitting limited and lawful action by employers. Through Sections 33 and 33A, the
Industrial Disputes Act, 1947 ensures that employers do not misuse their powers during
critical phases of dispute resolution.
While employers retain certain rights, such as routine management functions and
disciplinary action with due process, they are restricted from altering service conditions or
dismissing workers involved in disputes without prior approval. The law thus fosters
industrial democracy, prevents victimization, and promotes fair treatment of all
stakeholders.
7) Critically examine the process involved in duration, modification
and temporary application of certificed standing orders
Introduction
Standing Orders are written rules of conduct for employees in industrial
establishments. They define the terms and conditions of employment, including
classification of workers, working hours, discipline, leave, misconduct, and grievance
procedures. These rules bring clarity, uniformity, and discipline in industrial operations.
The Industrial Employment (Standing Orders) Act, 1G46 provides the legal framework
for the certification, enforcement, duration, modification, and temporary application
of these standing orders.

Meaning of Certified Standing Orders

Once an employer submits draft standing orders and they are approved by the Certifying
Officer, they become certified standing orders. These have statutory force and are
binding on both employers and workers. They override any inconsistent terms in
employment contracts.

1. Duration of Certified Standing Orders

38
The Act does not fix a specific expiry period for standing orders. Once certified, they
remain in force indefinitely until:
 They are modified under the provisions of the Act, or
 The industrial establishment is closed down or otherwise ceases to function.
Thus, the duration of certified standing orders is perpetual, unless lawfully modified.
Key Point: The standing orders remain in force until amended or replaced in accordance
with law. There is no automatic expiry.

2. Modification of Standing Orders

Legal Provision – Section 10 of the
Act
Section 10 of the Industrial Employment (Standing Orders) Act, 1946 governs the
procedure for modification of certified standing orders. The need for modification may
arise due to changes in:
 Organizational policies,
 Technology,
 Legal standards,
 Collective demands from employees or unions.

Procedure for Modification:

1. Who Can
Apply?
 Employer, or
 Workmen (represented by a trade union or body of workmen)
2. When Can Modification Be Sought?
 After six months from the date when standing orders came into operation.
 However, this condition does not apply if both parties agree to an earlier
modification.
3. Application for Modification
 The party seeking modification must submit a written application to the Certifying
Officer.
 The application must be accompanied by the proposed draft modifications and a
statement of reasons.
4. Notice to the Other Party
 The Certifying Officer must send a notice to the other party (employer or
workers), inviting objections or suggestions.
5. Hearing
 The Certifying Officer conducts a hearing, examining the need and validity of the
proposed changes.
39
 Both parties are given an opportunity to be heard and present evidence.

40
 6. Certification of Modification
 If satisfied, the officer certifies the modification, which then becomes part of the
certified standing orders.
7. Appeal
 An aggrieved party may appeal the decision to the Appellate Authority within
the prescribed time.
 The decision of the Appellate Authority is final.

Grounds for Modification

Modification may be justified on the following grounds:
 Change in industrial policies or practices.
 Need for technological adaptation.
 Introduction of new roles, equipment, or processes.
 Resolution of ambiguities or practical issues in the existing orders.
 To meet statutory requirements or court rulings.

Judicial Interpretation on Modification

1. Guest Keen Williams Ltd. v. PJ Sterling
Held: Modification must be justified and follow due process. Even mutually agreed changes
must be certified under the Act.
2. Bangalore Woollen Cotton and Silk Mills Co. v. State of Mysore
Held: Even minor changes in conditions of service must be made through proper modification
procedures as prescribed under Section 10.
Conclusion from case laws: Certified standing orders cannot be unilaterally altered, even with
mutual consent, unless they are formally modified under Section 10.

3. Temporary Application of Standing Orders

Before certification, an establishment may not have its own standing orders. In such cases,
Model Standing Orders apply temporarily. Legal
Provision – Section 12A
Section 12A of the Act (inserted later) provides for temporary application of model
standing orders.

When Does Section 12A Apply?

 It applies to industrial establishments that do not have certified standing orders.
 The Model Standing Orders prescribed by the government automatically apply
until the establishment gets its own certified standing orders.

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Features of Temporary Application
1. Automatic Operation:
o No need for application or formal adoption; the model standing orders apply
by default.
2. Provisional Nature:
o They apply only temporarily until proper certification is completed.
3. Binding Effect:
o These model orders are binding on both employers and workers during
the interim period.
4. Objective:
o To avoid a legal vacuum and ensure workers’ rights are protected from
the start.

Model Standing Orders

Model Standing Orders are pre-defined templates notified by the appropriate government
under the Act. They act as standardized terms covering:
 Classification of workers,
 Shift timings,
 Attendance rules,
 Leave procedures,
 Acts of misconduct,
 Disciplinary action.
These models ensure uniformity and minimum standards across industries.

Importance of Section 12A

 Provides legal clarity and protection until certification is done.
 Ensures continuity and fairness in employment conditions from day one.
 Encourages employers to get standing orders certified promptly.

Criticism and Challenges

1. Delay in Certification:
o Employers sometimes delay the certification process, continuing under
model standing orders indefinitely.
2. Rigid Modification Process:
o The procedure under Section 10 is lengthy and technical, making it hard to
quickly adapt to industry changes.
3. Limited Awareness:

42
 o Workers often lack knowledge of their rights under model or
certified standing orders.
4. Overlap with Other Labor Laws:
o With new labor codes being introduced, there is confusion and duplication
of provisions.

Reform under Industrial Relations Code, 2020

The Industrial Relations Code, 2020, which consolidates the Standing Orders Act and
other labor laws, introduces the following changes:
 Applies standing orders to establishments with 300 or more workers (earlier
100).
 Empowers the government to prescribe model standing orders that act as default
rules.
 Seeks to simplify and expedite the certification and modification processes.
These reforms aim to ensure flexibility for employers while retaining protection for
workers.

Conclusion
The duration, modification, and temporary application of certified standing orders form
an essential part of industrial discipline and legal compliance in India. Once certified,
standing orders remain in force indefinitely unless lawfully modified. Section 10 provides a
structured and just process for modification, while Section 12A ensures there is no gap in
employment regulation by applying model orders temporarily.
Despite some procedural complexities, these provisions ensure transparency,
fairness, and uniformity in employer-employee relationships. As labor law evolves through
the Industrial Relations Code, it is essential that the principles of clarity, consultation,
and consistency continue to guide the process of standing orders in industrial
establishments.

8) Discuss the functions and powers of various authorities unders

the industrial exmployment(Standing Orders) Act 1G46
Introduction
The Industrial Employment (Standing Orders) Act, 1G46 was enacted to ensure that
employers clearly define the terms and conditions of employment through written rules,
known as Standing Orders. These are meant to standardize employment conditions and
reduce disputes between employers and employees.
To ensure effective enforcement of the Act, several authorities are empowered with
specific functions and powers, including the Certifying Officer, Appellate Authority, and

43
other government authorities. These bodies ensure transparency, legality, and fairness in
the certification and application of standing orders.

Main Authorities Under the Act

1. Certifying Officer
2. Appellate Authority
3. Appropriate Government
4. Industrial Tribunals (in specific cases)

1. Certifying Officer
Appointment
Under Section 3, the appropriate government appoints Certifying Officers, who are
usually Labour Commissioners, Deputy Commissioners of Labour, or other designated
officers.

Functions and Powers of Certifying Officer

1. Receiving Draft Standing Orders (Section 3)
 Employers are required to submit five copies of draft standing orders to
the Certifying Officer.
 The drafts must relate to the matters specified in the Schedule to the Act, like
classification of workers, hours of work, misconduct, etc.
2. Ensuring Compliance with the Model Standing Orders (Section 3 G 4)
 The Certifying Officer checks whether the draft conforms to the Model Standing
Orders prescribed by the government.
 If it does not, the employer may be directed to revise it before certification.
3. Notifying and Seeking Objections (Section 5)
 After receiving the draft, the Certifying Officer forwards a copy to the workmen
or trade union.
 The union or representatives may file objections within 15 days.
4. Conducting Hearings (Section 5)
 The officer holds a hearing where both parties are heard.
 He examines:
o Whether the proposed orders are fair and reasonable.
o Whether the objections are valid and substantial.
5. Certifying the Standing Orders (Section 5 G 6)
 After the hearing, the Certifying Officer may:
o Approve the draft with or without modifications.
o Reject it if it violates the law or is unreasonable.

44
  The certified standing orders are then authenticated and communicated to both
employer and workmen.
6. Sending Certified Copies
 A copy of the certified standing orders is:
o Sent to the employer.
o Sent to the trade union or representatives of the workmen.
o Stored in the official records.
7. Adjudicating Applications for Modification (Section 10)
 The Certifying Officer also handles applications for modification of standing
orders.
 He examines whether the proposed changes are fair, reasonable, and justified.
8. Record Keeping
 Maintains records of all certified standing orders and modifications for
future reference and enforcement.

2. Appellate Authority
Appointment
Under Section 6, the Appellate Authority is appointed by the appropriate government
and is generally a senior official like a Labour Court judge or similar officer.

Functions and Powers of the Appellate Authority

1. Hearing Appeals Against Certification
 Either the employer or the workmen may appeal the decision of the Certifying
Officer within 30 days.
 Grounds for appeal include:
o Unfair or unreasonable orders,
o Improper rejection or approval of draft clauses,
o Procedural lapses.
2. Re-examining Evidence
 The authority can review:
o The certified draft,
o Objections raised,
o Hearing records,
o Any additional evidence if required.
3. Final Decision (Section 6)
 The Appellate Authority may:
o Confirm the certification,
o Modify any part of it,

45
 o Reject the certification.
 Its decision is final and binding.
4. Ensuring Legal Validity
 The appellate authority ensures that the certified standing orders are in
conformity with legal principles, fairness, and public interest.

3. Appropriate Government
The State or Central Government (depending on the industry) plays a supervisory and
administrative role under the Act.

Functions and Powers of the Appropriate Government

1. Appointment of Authorities
 Appoints Certifying Officers and Appellate Authorities.
 Can make rules to carry out the purposes of the Act.
2. Framing Model Standing Orders (Section 15)
 Prescribes Model Standing Orders for various categories of industries.
 These apply automatically under Section 12A if an establishment does not have
certified standing orders.
3. Rulemaking Power (Section 15)
 The government can make rules regarding:
o Procedure for certification and appeal,
o Fees,
o Forms to be used,
o Ǫualifications of officers.
4. Publication and Notification
 Issues notifications related to:
o Amendments in the Schedule,
o Application of the Act to specific industries or regions.

4. Industrial Tribunal or Labour Court

While the Industrial Employment (Standing Orders) Act, 1G46 primarily deals with
administrative procedures, Labour Courts or Industrial Tribunals come into play when
disputes arise related to interpretation or application of standing orders.

Functions and Powers

1. Dispute Resolution (Section 13A)
 If there is a dispute regarding interpretation or application of certified standing
orders, either party may approach the Labour Court.

46
2. Binding Decision
 The court decides on:
o Meaning of particular clauses,
o Application of rules to specific circumstances,
o Validity of actions under the standing orders.
 The decision is final and binding on both parties.
3. Enforcement of Rights
 Employees can approach the court if employers violate standing orders, such as
wrongful suspension or dismissal.

Summary of Powers and Functions

Authority Key Powers and Functions
Certifies draft standing orders, hears objections, modifies, and
Certifying Officer authenticates them.
Appellate Authority Hears appeals, modifies or confirms certification decisions.
Appropriate Frames model standing orders, appoints officers, makes rules,
Government supervises enforcement.
Labour Resolves disputes on interpretation or implementation of
Court/Tribunal certified standing orders.

Importance of These Authorities

 Ensure that employment conditions are fair and standardized.
 Prevent arbitrary decisions by employers.
 Provide legal remedies for workers.
 Enhance transparency and industrial harmony.
 Act as guardians of statutory compliance.

Criticism and Need for

Reform
1. Delays in Certification:
o The process can be time-consuming due to bureaucratic procedures.
2. Limited Awareness:
o Many workers are unaware of their rights under standing orders.
3. Overlap with Other Laws:
o The standing orders may conflict with or duplicate provisions of labor codes
or employment contracts.
4. Low Enforcement:
o Lack of strict mechanisms to enforce compliance by employers.
47
Reform Through Industrial Relations Code, 2020
The Industrial Relations Code, 2020 consolidates and simplifies the Standing Orders Act.
Key changes include:
 Raising the threshold for mandatory standing orders from 100 to 300 workers.
 Greater uniformity in drafting and approval procedures.
 Empowering the Central Government to frame model standing orders.
The goal is to ensure ease of compliance, while still protecting workers’ rights.

Conclusion
The Industrial Employment (Standing Orders) Act, 1G46 empowers various authorities
with defined roles and responsibilities to ensure that employers and workers operate
within a framework of transparency, legality, and fairness. The Certifying Officer ensures
that standing orders are properly examined and certified; the Appellate Authority acts as a
safeguard against arbitrary decisions; the Appropriate Government ensures regulatory
support; and the Labour Courts act as final adjudicators in case of disputes.
Together, these authorities create a structured mechanism that plays a crucial role in
maintaining industrial peace, discipline, and compliance with employment standards
in India.
G) Discuss the guidelines involved in conducting domestic enquiry and
examine its essentials and enquiry report
Introduction
A domestic enquiry is a formal process initiated by an employer to investigate charges of
misconduct committed by an employee. It is an internal disciplinary mechanism designed
to ensure fairness, natural justice, and transparency before taking any punitive action
such as suspension, dismissal, or termination. A proper domestic enquiry protects both
employer and employee from arbitrary action and ensures that discipline is maintained
legally and ethically in the workplace.

Legal Basis and Importance

Though the Industrial Disputes Act, 1G47 does not specifically prescribe the procedure for
a domestic enquiry, its necessity and principles have been evolved through judicial
decisions. A well-conducted enquiry is critical for:
 Proving charges against an employee.
 Avoiding legal complications in case of dismissal.
 Demonstrating adherence to the principles of natural justice.

Guidelines for Conducting a Domestic Enquiry

48
The following are key steps and procedural guidelines involved in conducting a lawful
domestic enquiry:

1. Issuance of Charge Sheet

 The process begins with the issuance of a charge sheet to the employee
(delinquent).
 The charge sheet must:
o Clearly state the alleged misconduct,
o Refer to relevant clauses of standing orders or service rules, and
o Provide the employee a reasonable time to respond (typically 48–72
hours). A vague or ill-defined charge sheet can invalidate the entire enquiry.

2. Appointment of Enquiry Officer

 The employer appoints a neutral and unbiased Enquiry Officer (EO) to conduct the
enquiry.
 The EO must not have any personal interest or prior involvement in the case.
 An external person or a senior officer from another department may be chosen.

3. Notice of Enquiry
 The employee must be given a formal notice of enquiry, mentioning:
o Date, time, and venue of the enquiry,
o Right to be assisted by a co-worker or trade union representative,
o Details of the Enquiry Officer and presenting officer.
The notice ensures that the employee has a fair opportunity to prepare a defense.

4. Conduct of Enquiry
The enquiry must be conducted in a fair, impartial, and transparent manner, adhering to
the following:
a) Adherence to Natural Justice
 Rule against bias: The EO must be impartial.
 Right to be heard: The employee must be allowed to present their case, call
witnesses, and cross-examine the employer’s witnesses.
b) Examination of Witnesses and Evidence
 The presenting officer presents the employer’s case and witnesses.
 The employee is allowed to cross-examine.
 The employee may also present their own witnesses and evidence.
c) Proper Recording of Proceedings
 Every step of the enquiry must be recorded in writing.

49
  All evidence, witness testimonies, and submissions are documented.
d) Enquiry in Employee’s Absence
 If the employee refuses to participate without valid reason, the enquiry can proceed
ex parte, but due process must still be followed.

5. Completion of Enquiry
 After examining all evidence and hearing both sides, the Enquiry Officer closes the
enquiry and prepares the Enquiry Report.

Essentials of a Fair Domestic Enquiry

A domestic enquiry must satisfy the following essential conditions to be legally valid:

1. Valid Charge Sheet

 The charges must be clear, specific, and not vague.
2. Proper Service of Notice
 All notices must be properly served and acknowledged.
3. Opportunity to Defend
 The delinquent must be allowed:
o Sufficient time to prepare,
o To examine and cross-examine witnesses,
o To present documentary evidence.
4. Impartial Enquiry Officer
 No bias, prejudice, or conflict of interest should exist.
5. Compliance with Natural Justice
 Fundamental to any disciplinary action.
 Violation of natural justice may render the enquiry invalid even if the charges
are proven.
6. Timely Completion
 The enquiry should be concluded promptly, avoiding unnecessary delay.

Judicial Principles and Case Laws

1. Workmen of Firestone Tyre G Rubber Co. v. Management (1G73)
 The Supreme Court laid down guidelines for domestic enquiries:
o A fair enquiry must precede dismissal.
o The findings of the enquiry officer must be based on evidence.
o The enquiry must comply with principles of natural justice.
2. State of Uttar Pradesh v. Saroj Kumar Sinha (2010)

50
  Held: Failure to supply enquiry report to the employee before dismissal violates
natural justice.
3. Union of India v. Tulsiram Patel (1G85)
 The Court held that in exceptional cases (e.g., where presence of the
employee would be prejudicial to security), enquiry may be dispensed with.

Enquiry Report – Nature, Content, and Importance

The Enquiry Report is the final outcome of the domestic enquiry, submitted by the Enquiry
Officer. It does not impose punishment; it only records findings based on evidence.

Contents of a Valid Enquiry Report

1. Introduction
o Details of the charge sheet, dates of hearings, and parties involved.
2. Charges Framed
o Restate the charges as mentioned in the charge sheet.
3. Evidence Recorded
o Summary of witness statements, documents examined, and any admissions.
4. Findings
o Specific findings on each charge.
o Whether charges are proved, partly proved, or not proved.
5. Reasoning
o Clear explanation of how the evidence supports the findings.
o Reference to rules or standing orders violated.
6. Conclusion
o Summary of findings without suggesting punishment (punishment is decided
by the disciplinary authority).

Principles for a Proper Enquiry Report

 Must be written in clear, logical language.
 Should avoid assumptions not backed by evidence.
 Should not recommend punishment.
 Must be submitted to the disciplinary authority.

Role of Disciplinary Authority

 The employer or disciplinary authority reviews the enquiry report.
 If the findings are against the employee, the employer must:
o Give a copy of the report to the employee.
o Give an opportunity to make representation before imposing punishment.

51
  After hearing the employee, the employer may:
o Drop the charges, or
o Impose suitable punishment like warning, suspension, or dismissal.

Effect of Invalid Enquiry

If the enquiry is:
 Not conducted, or
 Invalid due to procedural defects,
Then the Labour Court or Industrial Tribunal may:
 Allow the employer to justify the action with fresh evidence, or
 Direct reinstatement of the employee.

Conclusion
A domestic enquiry is a critical element in workplace discipline and industrial
jurisprudence. It is a mechanism to ensure that the employer takes action fairly, lawfully,
and transparently. The enquiry must adhere to principles of natural justice, and the
Enquiry Report must be an impartial and reasoned document based on evidence.
When properly conducted, a domestic enquiry protects the rights of the workman while
also enabling the employer to maintain discipline in the workplace. It serves as a
foundation for further legal proceedings and ensures that employment decisions are not
arbitrary or discriminatory.

10) Discuss the various penalties imposed on the worker as

disciplinary action
Introduction
In any industrial establishment, maintaining discipline and order is essential for smooth
functioning, productivity, and industrial harmony. To enforce discipline, employers are
empowered to take disciplinary action against employees who commit acts of
misconduct. Disciplinary actions are based on principles of fairness, reasonableness,
and natural justice. The penalties imposed should be proportionate to the gravity of the
misconduct and must follow due process.
Under the Industrial Employment (Standing Orders) Act, 1G46, employers are required to
lay down clear procedures for disciplinary actions, including a list of possible penalties.
These are usually detailed in the certified standing orders of the establishment.

Legal Basis for Disciplinary Action

 Industrial Employment (Standing Orders) Act, 1G46: Requires employers to define
misconducts and penalties in their standing orders.

52
  Principles of Natural Justice: Must be followed before imposing penalties.
 Labour Laws and Judicial Decisions: Govern the validity and limits of disciplinary
actions.

Classification of Penalties
Penalties imposed on workmen may be classified as:
1. Minor Penalties
2. Major Penalties
The severity of the penalty depends on the nature of the misconduct, the employee’s
past record, and the circumstances of the case.

I. Minor Penalties
These are less severe and generally do not affect the employee’s career significantly. They
are imposed for less serious offences or as corrective measures.

1. Warning or Censure
 A formal written or verbal reprimand issued to the employee.
 Serves as a caution against repeating the misconduct.
 Does not affect salary, status, or service continuity.
Example: Warning for habitual late attendance.

2. Fine
 A monetary penalty may be imposed for certain types of misconduct like absence
without leave.
 Limits:
o Cannot exceed 3% of wages payable in a month.
o Must be for acts defined as punishable by fines in standing orders.
o The employee must be given an opportunity to explain before the fine
is imposed.
Note: Fines are regulated under the Payment of Wages Act, 1G36.

3. Suspension (Pending Enquiry)

 A temporary prohibition from attending work during a domestic enquiry.
 The employee is entitled to a subsistence allowance during this period (usually
50% of wages).
 Suspension is not a punishment itself but a precautionary measure.

4. Stoppage of Increments

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  Withholding one or more future increments due to misconduct.
 May be temporary or permanent.
 Can have long-term financial consequences.
Example: Stopping one annual increment for unauthorized absence.

5. Recovery from Wages

 Used when the employee causes financial loss or damage to company property.
 After holding an enquiry, recovery may be made from wages, subject to
statutory deductions limits.

II. Major Penalties

These are serious punitive measures that can affect the employee’s status, earnings, and
future employment.

1. Demotion or Downgrading
 The employee is placed in a lower rank or grade as a penalty.
 Usually applied in cases of poor performance or misconduct involving negligence.
 Considered a major punishment, as it affects dignity and earnings.

2. Discharge
 Termination of employment on grounds other than misconduct, e.g., unsatisfactory
work, physical unfitness, or loss of confidence.
 The employee is usually paid all dues and gratuity.
Note: Discharge must not be arbitrary or vindictive.

3. Dismissal
 The most severe form of penalty.
 Involves termination of employment due to proven misconduct.
 Usually without notice or benefits, such as gratuity or leave encashment.
 Must follow a domestic enquiry in line with natural justice.
Examples of misconduct warranting dismissal:
 Theft or fraud
 Violence or insubordination
 Habitual neglect of duty
 Drunkenness at workplace

Procedure for Imposing Penalty

54
Any disciplinary action, especially major penalties like dismissal, must follow a legally
sound procedure, including:
1. Issuance of Charge Sheet
o Clear mention of misconduct with supporting facts.
2. Domestic Enquiry
o Conducted by an impartial Enquiry Officer.
o Follows principles of natural justice: right to defend, right to be heard.
3. Enquiry Report
o Contains findings of the enquiry, without suggesting punishment.
4. Show Cause Notice (in major penalties)
o Asking the employee why punishment should not be imposed.
5. Final Order of Punishment
o Based on enquiry findings and employee’s explanation.

Judicial Principles and Case Laws

1. Workmen of Firestone Tyre G Rubber Co. v. Management (1G73)
 The court laid down that:
o A proper enquiry must precede dismissal.
o The enquiry must be fair, unbiased, and based on evidence.
o Employer must supply a copy of the enquiry report before dismissal.
2. State Bank of India v. T.J. Paul (1GGG)
 Held that punishment must be proportionate to the gravity of the misconduct.
3. Delhi Cloth and General Mills Co. v. Kushal Bhan (1G60)
 Suspension must not be punitive unless followed by proper disciplinary
proceedings.
4. Bharat Iron Works v. Bhagubhai Balubhai Patel (1G76)
 The employer must prove that the punishment was imposed bona fide,
without victimization or unfair labor practices.

Principles Governing Disciplinary Penalties

1. Proportionality
o The punishment must match the severity of the offence.
2. Consistency
o Similar offences should attract similar penalties.
3. Natural Justice
o The employee must be given a fair hearing and chance to defend.
4. Non-Arbitrariness
o The employer must act fairly and without malice or bias.

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 5. Documented Procedure
o All steps must be properly recorded and communicated.

Role of Standing Orders

Under the Industrial Employment (Standing Orders) Act, 1G46, every industrial
establishment must have certified standing orders that clearly list:
 Acts of misconduct
 Procedures for enquiry
 List of penalties
 Appeal mechanisms
These standing orders ensure that employees are aware of their rights and liabilities and
employers are legally bound to follow proper procedures.

Appeal and Redressal

 The punished employee may:
o File an appeal with the management (if internal mechanism exists),
o Approach the Labour Court or Industrial Tribunal under the Industrial
Disputes Act,
o File a complaint under Section 33A if punishment was imposed during the
pendency of proceedings without approval.

Conclusion
Penalties as disciplinary action play a vital role in ensuring order, discipline, and
productivity in industrial establishments. However, the power to punish must be
exercised judiciously, following the principles of fairness, reasonableness, and
legality. Minor and major penalties must be proportionate to the misconduct and must be
imposed only after a proper domestic enquiry.
The legal framework provided by the Industrial Employment (Standing Orders) Act, 1G46,
and supported by judicial interpretations, ensures that workers' rights are protected, and
employers can maintain discipline without overreach. A balance between the two is
essential for maintaining industrial peace and harmony.
11) Comment upon trade union movement in India before and after the
independence, Historical growth and evolution
Introduction
The Trade Union Movement in India represents the collective efforts of workers to
safeguard their rights and improve their working conditions through organized
representation. Trade unions have played a significant role in the development of labor
welfare, industrial relations, and legislative reforms in India. The movement has evolved

56
through various historical phases, shaped by political, economic, and social changes,
both before and after independence.

Origin and Growth of Trade Union Movement in India

The roots of the trade union movement in India can be traced back to the late 1Gth and
early 20th centuries, during British colonial rule. The exploitative conditions of workers in
industries such as textiles, jute, and railways, coupled with growing political
consciousness, gave rise to the demand for workers’ rights and unionization.

Trade Union Movement Before Independence (Up to 1G47)

1. Early Phase (1875–1G18): The Foundation
 The early labor organizations were welfare-oriented, focusing more on improving
working conditions than collective bargaining.
 The first organized labor association was the Bombay Millhands Association
in 1890, founded by N.M. Lokhande, often considered the father of the Indian
labor movement.
 Other early associations included:
o Madras Labour Union (1G18) – the first trade union in India.
o Textile Labour Association (TLA), Ahmedabad – formed under the guidance
of Mahatma Gandhi.
These unions mostly lacked legal recognition and often disbanded after achieving short-
term goals.

2. Period of Emergence (1G18–1G24): Beginning of Political Influence

 Post-World War I, inflation and exploitation led to labor unrest.
 A series of strikes broke out in major cities like Bombay, Calcutta, and Madras.
 In 1G20, the All India Trade Union Congress (AITUC) was formed in Bombay under
the leadership of Lala Lajpat Rai, marking the birth of the national trade union
movement.
AITUC aimed to secure legislative reforms, better wages, and international solidarity
through affiliation with international labor bodies like the ILO.

3. Period of Split and Ideological Conflict (1G24–1G35)

 Differences emerged within the trade union movement over political ideologies:
o Moderates wanted to keep the movement apolitical and reform-oriented.
o Radicals and communists sought to use the unions for political revolution.
Result: The AITUC split into several groups:
 AITUC (communist influence)

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  National Trade Union Federation (NTUF) (Congress-oriented)
 Red Trade Union Congress (RTUC) (radical faction)
 This period weakened the unity of the movement and diverted focus from
labor issues to ideological disputes.

4. Period of Reunification and Legislative Gains (1G35–1G47)

 The Government of India Act, 1G35 brought labor into the concurrent list,
empowering provinces to enact labor laws.
 Several pro-worker legislations were introduced:
o Trade Unions Act, 1G26: Gave legal recognition to trade unions.
o Workmen’s Compensation Act, 1G23
o Payment of Wages Act, 1G36
 The trade union movement began to regain strength, particularly with the
workers’ role in the freedom movement.
By the time of independence, the movement had developed an institutional structure,
although fragmented.

Trade Union Movement After Independence (Post-1G47)

The post-independence era marked a new phase in the evolution of trade unions, driven by
state involvement, legal reforms, and the need for economic development.

1. Golden Era of Trade Unions (1G47–1G70)

 The Indian Constitution gave legal recognition to labor rights under:
o Article 1G(1)(c) – Right to form associations or unions.
o Directive Principles of State Policy – Provided for just and humane work
conditions.
 The Industrial Disputes Act, 1G47 was enacted to promote peaceful dispute
resolution.
 Multiple central trade unions emerged:
o Indian National Trade Union Congress (INTUC) – Congress-linked
o AITUC – Communist Party of India
o Hind Mazdoor Sabha (HMS) – Socialist group
o Bharatiya Mazdoor Sangh (BMS) – RSS-affiliated
Trade unions became influential stakeholders in public policy, industrial relations, and
even political decision-making.

2. Phase of Politicization and Fragmentation (1G70–1GG0)

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  Trade unions became heavily politicized, aligning themselves with various political
parties.
 The result was fragmentation and rivalries among unions within the same
workplace.
 Emergence of industry-specific and region-specific unions led to
jurisdictional disputes.
Frequent strikes, lockouts, and inter-union conflicts reduced the credibility of unions
among employers and the public.

3. Economic Liberalization and Decline (1GG1–2010)

 The 1991 economic reforms led to liberalization, privatization, and globalization
(LPG).
 Decline in the organized sector and rise of the informal economy reduced trade
union influence.
 Contract labor, casualization of jobs, and downsizing became common.
 Trade unions struggled to protect jobs and resist new economic policies.
Union membership declined, and their bargaining power weakened significantly.

4. Recent Developments and Revival Efforts (2010–Present)

 Trade unions have begun adapting to changing labor markets:
o Focus on social security, minimum wages, and rights of informal workers.
o Organizing gig economy workers, e.g., delivery agents, platform workers.
o Participation in policy debates on labor codes and reforms.
 The Industrial Relations Code, 2020 consolidates labor laws and addresses the
recognition of trade unions, promoting majority-based representation.
There is a renewed push for union modernization, digital platforms, and inclusive
organizing strategies.

Achievements of the Trade Union Movement

 Legal Recognition: Secured numerous legislations protecting worker rights.
 Collective Bargaining: Enabled workers to negotiate better wages and conditions.
 Social Security: Contributed to laws on provident fund, insurance, maternity
benefits.
 Awareness: Educated workers about their rights and legal remedies.
 Policy Influence: Played a role in shaping labor policy and welfare programs.

Challenges Faced by Trade Unions

1. Multiplication and Rivalry: Multiple unions in one unit weaken unity.

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 2. Political Influence: Excessive political alignment dilutes focus on labor issues.
3. Declining Membership: Especially in the private and informal sectors.
4. Lack of Internal Democracy: Dominance by specific leaders affects credibility.
5. Changing Nature of Work: Difficulty in organizing gig, platform, and contract
workers.

Suggestions for Strengthening the Movement

 Encourage unification or federation-based models to reduce rivalry.
 Promote apolitical and independent unions focused solely on worker welfare.
 Adopt modern organizing techniques, including digital engagement.
 Expand coverage to unorganized sector and emerging industries.
 Ensure internal transparency, elections, and accountability within unions.

Conclusion
The trade union movement in India has traversed a long path—from early welfare groups to
politically active organizations, and from powerful collective entities to adapting modern
worker associations. While the pre-independence era was marked by struggle and
formation, the post-independence period saw expansion, politicization, and recent
attempts at revival.
Despite challenges, trade unions remain critical institutions in defending labor rights,
promoting equitable labor policies, and ensuring industrial peace. To remain relevant in
the evolving economic landscape, the movement must reform, unite, and innovate in its
methods of representation and action.

12) State the procedure for registration of a Trade Union under the trade
unions act 1G26
Introduction
The Trade Unions Act, 1G26 is a central legislation enacted to provide for the registration,
rights, and liabilities of trade unions in India. It gives legal status to trade unions and
empowers them to function as recognized bodies for representing the interests of
workers. Registration is a critical step that transforms a trade union from a mere
association into a legal entity, enabling it to enjoy statutory rights and immunities.

Meaning of Trade Union

As per Section 2(h) of the Trade Unions Act, 1926:
“A trade union means 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.”

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It includes any federation of two or more trade unions.

Procedure for Registration of a Trade Union

The procedure for registration is provided under Sections 4 to G of the Act. The process
involves several eligibility conditions, documentation, and steps to be followed for
obtaining a certificate of registration from the Registrar of Trade Unions.

1. Requirements Before Application (Section 4)

Before a trade union can apply for registration, the following conditions must be met:
Minimum Membership Requirement:
 At least 7 members must be engaged or employed in the establishment or industry.
 For registration, at least 10% or 100 workers, whichever is less, engaged in
the industry must be members of the trade union on the date of application.
Eligibility of Members:
 Members must be workers employed in the same or similar industry.
 Members should not be minors; they must be at least 15 years old, and office-
bearers must be at least 18.

2. Application for Registration (Section 5)

Who Can Apply:
 The application must be signed by at least 7 members of the trade union.
To Whom:
 The application is submitted to the Registrar of Trade Unions of the state where
the union’s office is located.
Documents to be Submitted:
The application must be accompanied by the following documents:
1. Constitution or Rules of the Union containing:
o Name and objectives of the union.
o Names, occupations, and addresses of the members applying.
o Conditions for admission of members.
o Subscription rates.
o List of general and political fund usages.
o Provisions for maintenance of accounts and audits.
o Manner of amendments or dissolution.
o Election and removal of office-bearers.
o Safe custody of funds.
o Meetings and decision-making procedures.
2. Name of the Union:

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 o Should not resemble the name of an existing registered union.
o Should not cause confusion or mislead.
3. Details of Office-Bearers:
o Names, ages, occupations, and addresses of the elected office-bearers.
4. Registered Office Address:
o Official address of the trade union's headquarters.

3. Scrutiny by Registrar (Section 6 G 7)

Upon receiving the application, the Registrar examines whether:
 The application complies with legal provisions.
 The rules satisfy the conditions of Section 6.
 The union name does not conflict with existing ones.
 The application is genuine and supported by required membership.
The Registrar may request additional information or clarification if necessary.

4. Registration and Certificate (Section 8)

If the Registrar is satisfied that:
 The application is in proper form,
 The union’s constitution complies with the Act,
 The members are genuine, and
 The union is not formed for unlawful purposes,
Then the Registrar registers the trade union and enters its name in the Register of Trade
Unions.
The Registrar then issues a Certificate of Registration, which serves as conclusive proof
that the trade union is registered under the Act.

5. Legal Status After Registration (Section 13)

After registration:
 The union becomes a body corporate with a distinct legal identity.
 It gets perpetual succession, can acquire property, and sue or be sued in its
own name.
 It can hold general and political funds, and enjoys statutory rights
and immunities under the Act.

Important Points Related to Registration

1. Refusal of Registration (Section 7)
 The Registrar may refuse registration if:
o The union's name is identical to an existing one.

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 o The application does not comply with statutory requirements.
o The union is formed for illegal or criminal purposes.
2. Appeal Against Refusal (Section 11)
 If registration is refused, the applicants may appeal to:
o High Court (in presidency towns), or
o Court of District Judge (elsewhere).

Benefits of Registration
 Legal Recognition as a corporate entity.
 Right to represent members in disputes and collective bargaining.
 Immunity from criminal conspiracy charges in trade disputes (Section 17).
 Protection from civil suits for certain acts done in good faith (Section 18).
 Access to legal remedies, ability to own property and enter contracts.

Judicial Interpretations
1. All India Bank Employees’ Association v. National Industrial Tribunal
 Held that a registered trade union has the right to represent workers, but
collective bargaining is not a fundamental right.
2. Rohtas Industries Ltd. v. Brijnandan Pandey
 Stressed the importance of following proper procedure for valid registration and
conducting union activities within legal boundaries.

Challenges in Registration Process

 Multiplicity of unions: Several unions in the same establishment reduce
effectiveness.
 Political influence: Registration may sometimes be driven by political motivations.
 Delays in processing by Registrars in some states.
 Lack of awareness among workers about the registration process.

Reforms under Industrial Relations Code, 2020

The Industrial Relations Code, 2020 seeks to replace the Trade Unions Act, 1926, and
introduces:
 Provision for recognition of negotiating union/council.
 Simplified and centralized registration process.
 Promotion of majority representation, reducing union fragmentation.
 Ensures transparency and accountability in trade union activities.

Conclusion

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The registration of a trade union under the Trade Unions Act, 1G26 is a well-defined
process designed to ensure that unions function legally, democratically, and in the
interest of workers. The procedure includes minimum membership requirements,
submission of comprehensive documentation, and scrutiny by the Registrar to ensure
legitimacy.
Registration grants the union a legal identity, enables it to exercise collective rights, and
provides it statutory protection. While the process is straightforward, the real challenge
lies in ensuring transparency, unity, and effectiveness of the registered union in
safeguarding workers’ rights. The proposed reforms under the Industrial Relations Code
are expected to modernize and simplify the process, making it more aligned with current
industrial needs.

13) Define Industrial Dispute and distinguish it from individual

dispute Introduction
Industrial peace and harmony are crucial for the smooth functioning of any industrial
establishment. However, differences and conflicts often arise between employers and
employees. The Industrial Disputes Act, 1G47 is the central legislation in India that
provides a legal framework for investigating, preventing, and resolving such disputes.
Two important concepts under this Act are Industrial Dispute and Individual Dispute.
Understanding their meaning and distinction is essential for effective application of
industrial law.

Definition of Industrial Dispute

The term Industrial Dispute is defined under Section 2(k) of the Industrial Disputes Act,
1G47 as:
"Any dispute or difference between employers and employers, or between employers and
workmen, or between workmen and workmen, which is connected with the employment
or non-employment or the terms of employment or with the conditions of labour of any
person."

Key Elements of Industrial Dispute

1. Parties Involved:
o Employers and employers
o Employers and workmen
o Workmen and workmen
2. Subject Matter:
o Employment or non-employment
o Terms of employment

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 o Conditions of labor
3. Scope:
o Dispute may relate to a specific individual or a group, but must involve
collective interest unless covered under Section 2A.

Types of Industrial Disputes

 Interest Disputes: Relate to wages, bonus, allowances, etc.
 Rights Disputes: Relate to violation of legal or contractual rights.
 Unfair Labor Practices: Including victimization or discrimination.
 Recognition Disputes: Relating to recognition of trade unions.
 Retrenchment and Layoff Disputes

Definition of Individual Dispute

Initially, the Act did not recognize an individual workman's grievance as an industrial
dispute unless it was espoused by a union or a body of workers.
To address this limitation, Section 2A was inserted through an amendment in 1G65.

Section 2A – Individual Dispute Deemed Industrial Dispute

"Where any employer discharges, dismisses, retrenches or otherwise terminates the
services of an individual workman, any dispute or difference between that workman and
his employer shall be deemed to be an industrial dispute."

Essentials of Section 2A
 Applies only to termination-related issues:
o Dismissal
o Discharge
o Retrenchment
o Termination of service
 No need for union support or collective espousal
 The individual can approach Labour Courts directly

Distinction Between Industrial Dispute and Individual Dispute

Industrial Dispute (Section
Point of Difference 2(k)) Individual Dispute (Section 2A)

Collective dispute involving a

Nature group or espousal by union Dispute by an individual workman

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 Industrial Dispute (Section
Point of Difference 2(k)) Individual Dispute (Section 2A)

Between employers and group Between employer and an

Parties Involved of workmen or unions
individual workman
Yes, unless the dispute affects
Espousal Required
a Not required
group
Can relate to wages, working Limited to discharge, dismissal,
Subject Matter conditions, employment
retrenchment, or termination
policies, etc.
Section 2(k) of the Industrial Section 2A of the Industrial
Legal Provision Disputes Act Disputes Act
Broad; includes all types of
Narrow; focuses only on individual
Scope disputes affecting workmen
termination-related grievances
collectively
Automatically treated as an
Recognition as Requires union or group
industrial dispute without need
Industrial Dispute support or involvement
for espousal

Judicial Interpretations
1. Workmen of Dimakuchi Tea Estate v. Management (1G58)
Facts: A dispute regarding the dismissal of a single workman was raised without union
support.
Held: The Supreme Court held that a dispute involving an individual is not an industrial
dispute unless espoused by a union or substantial group of workmen.
Importance: Led to the introduction of Section 2A in 1965.

2. Shambhu Nath Goyal v. Bank of Baroda (1G83)

Held: An individual workman can directly approach the Labour Court under Section 2A
without union support if the dispute concerns dismissal, retrenchment, or termination.

3. S.N. Datt v. Labour Court (1G68)

Held: Reinforced that Section 2(k) disputes must be collective unless supported by other
workmen or a trade union.

Importance of Section 2A
 It bridges the gap in protection for individual workers.
 It allows quick redressal of wrongful termination.

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  It promotes access to justice without dependence on unions.
 Encourages employers to follow due process before termination.

Remedies Available
Under Section 2(k) – Industrial Dispute
 Conciliation by labor authorities
 Reference to Labour Court or Tribunal
 Strike or Lockout (as per legal provisions)
 Voluntary Arbitration
Under Section 2A – Individual Dispute
 Direct reference to Labour Court
 Remedies include:
o Reinstatement
o Back wages
o Compensation for wrongful termination

Limitations and Criticism

For Industrial Dispute (Section 2(k)):
 Delays due to need for union involvement
 Fragmentation of unions can affect espousal
For Individual Dispute (Section 2A):
 Limited Scope – applies only to termination-related issues
 Other grievances (e.g., wage denial) still require union support
 Enforcement issues – even valid claims may face delays in implementation

Conclusion
The distinction between Industrial Dispute and Individual Dispute is critical to
understanding how the law protects workers in India. While Section 2(k) governs
collective disputes requiring union support, Section 2A ensures that even an individual
workman has legal protection in cases of dismissal or termination.
Together, these provisions promote industrial justice, balance employer-employee relations,
and provide avenues for grievance redressal. However, further reforms are needed to
expand the scope of individual protection to other forms of unfair labor practices beyond
termination, thereby strengthening worker rights in a changing economic landscape.

14) Explain the ambit of Closure under the Industrial Disputes Act
1G47 Introduction

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The concept of closure in industrial law refers to the permanent shutting down of a
business or part of it by the employer. Unlike lay-off or retrenchment, which may be
temporary or partial, closure is a complete cessation of operations with no intention to
resume. The Industrial Disputes Act, 1G47 regulates closure to protect the interests of
workmen while giving employers the right to discontinue business under genuine
circumstances.

Definition of Closure (Section 2(cc))

As per Section 2(cc) of the Industrial Disputes Act, 1G47:
"Closure" means the permanent closing down of a place of employment or part
thereof.
Key features:
 It is permanent.
 It can be total or partial (i.e., affecting the entire business or a department).
 It reflects the employer's intention not to continue operations.

Scope and Ambit of Closure

The ambit of closure under the Act covers:
 Voluntary discontinuance of business due to economic non-viability, losses, or
change in business strategy.
 Partial closure where only a section or unit of the establishment is shut.
 Closure not as a tool for union-busting or avoiding legal obligations.
Closure must be genuine and bona fide, and not aimed at victimizing workers or avoiding
industrial obligations.

Legal Provisions Related to Closure

The relevant provisions of the Industrial Disputes Act that govern closure are:

1. Section 25FFA – Notice of Closure

This section mandates prior notice of closure in establishments to which Chapter V-A
applies (i.e., industrial establishments employing 50 or more but less than 100 workmen).
Key Requirements:
 Employer must serve 60 days’ prior notice in writing to the appropriate
government before closure.
 The notice must state reasons for the closure.
 Failure to give notice can render the closure illegal.
Exemption:

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  The government may waive the requirement of notice in exceptional cases like
accidents, death of employer, or natural calamities.

2. Section 25-O – Procedure for Closure of Undertakings

Applies to establishments covered under Chapter V-B, i.e., those employing 100 or more
workmen.
Key Features:
 The employer must apply for prior permission from the appropriate government
at least G0 days before the intended date of closure.
 The application must state clearly the reasons for the intended closure.
 A copy must be served on the workmen’s
representatives. Government Inquiry and Decision:
 The government conducts an inquiry, hears objections from workmen and
employer, and evaluates the genuineness of the closure.
 The government may:
o Grant permission, or
o Refuse permission, in writing, giving reasons.
Outcome:
 If permission is not granted within 60 days, it is deemed to be granted.
 The decision is binding for one year.
 A review or appeal to an Industrial Tribunal may be filed within 30 days.

3. Section 25F – Compensation for Closure

In case of legal closure, workers are entitled to retrenchment compensation as per
Section 25F, which includes:
 Notice pay (one month’s notice or wages in lieu),
 Compensation equivalent to 15 days' average pay for every completed year of
continuous service.

Judicial Interpretation and Case Laws

1. Workmen of Sur Iron G Steel Co. v. Sur Iron G Steel Co. (1G71)
Held: Closure must be actual, permanent, and genuine. Mere intention to reduce the
workforce without real shutdown does not constitute closure.

2. Indian Hume Pipe Co. v. Their Workmen (1G6G)

Held: Closure must be the result of a conscious and bona fide decision to permanently
stop business, not a disguise for retrenchment.

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3. Express Newspapers Ltd. v. Union of India (1G58)
Held: The right to close down business is a part of freedom of trade under Article 1G(1)(g),
but it is subject to reasonable restrictions imposed in public interest under Article
19(6).

4. Orissa Textiles v. State of Orissa (2002)

Held: If the closure is not approved under Section 25-O, any such closure is illegal, and the
workers are entitled to full back wages.

Difference Between Closure and Related Concepts

Concept Meaning Nature
Closure Permanent shutdown of the business or part thereof Permanent
Temporary failure to give employment due to
Lay-off shortage, breakdown Temporary
Termination of surplus workers not due to misconduct or Termination of
Retrenchment closure job

Right to Closure and Limitations

Employer’s Right:
 An employer has a fundamental right to close a business under Article 19(1)(g) of
the Constitution.
Limitations:
 Subject to Section 25FFA and 25-O.
 Permission is required in case of large establishments.
 Reasons must be genuine, not mala fide or anti-union.
 Compensation and legal obligations must be fulfilled.

Consequences of Illegal Closure

 If an employer closes without proper notice or approval, the closure is deemed
illegal.
 Workers are entitled to reinstatement and full wages for the period of illegal
closure.
 The employer may also face penal consequences under the Act.

Protection of Workmen
The Act aims to balance the interests of both employers and workmen. While allowing
closure in genuine cases, it ensures that:
 Workers are given advance notice,

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  Their livelihood is not terminated without justification,
 They receive fair compensation and benefits.

Recent Developments and Reforms

Under the Industrial Relations Code, 2020, closure procedures have been retained with
some modifications:
 The threshold for applying Chapter V-B provisions (Section 25-O) has been raised
from 100 to 300 workers.
 Seeks to simplify compliance while ensuring worker protection.
 Introduces web-based applications for permission and digitized notifications.
Note: The Code aims to ensure ease of doing business while safeguarding employee rights.

Conclusion
Closure under the Industrial Disputes Act, 1947, represents the legal mechanism for an
employer to permanently shut down operations. The law ensures that closure is not
misused as a tool for unfair labor practices and that workers are protected through notice,
compensation, and legal remedies. The procedural safeguards under Sections 25FFA
and 25-O uphold the principles of natural justice and industrial democracy.
While employers retain the freedom to manage their business, including the right to
close, this freedom is not absolute and must be exercised in a fair and lawful manner,
keeping in view the larger public interest and the rights of workers.

15) Define the Lay off and explain the distinction between the layoff and
retrenchment.
Introduction
In industrial relations, termination or interruption of employment can occur due to
various reasons. Two important terms used in this context are lay-off and retrenchment.
While both involve interruption in the employment of a workman, they differ significantly
in purpose, duration, and legal consequences.
These concepts are governed by the Industrial Disputes Act, 1G47, which provides definitions,
conditions, and rights related to both lay-off and retrenchment.

Definition of Lay-off
The term "lay-off" is defined under Section 2(kkk) of the Industrial Disputes Act, 1947: "Lay-
off means the failure, refusal or inability of an employer on account of shortage of coal,
power or raw materials, accumulation of stocks, breakdown of machinery, natural
calamity or any other connected reason, to give employment to a workman whose name
is

71
borne on the muster rolls of his industrial establishment and who has not been
retrenched."

Essential Elements of Lay-off

1. Inability to Give Work: The employer is unable to provide work to workmen
for reasons beyond control.
2. Temporariness: Lay-off is not a permanent separation but a temporary inability
to offer employment.
3. Valid Reasons:
o Shortage of raw materials
o Power failure
o Breakdown of machinery
o Natural calamities
o Accumulation of finished goods
4. Employee Must Be on Muster Rolls:
o Only those workers who are permanently employed and whose names are
on the muster roll are eligible.
5. Worker Must Not Be Retrenched:
o Lay-off applies only to those who are not terminated permanently.

Compensation During Lay-off

Under Section 25C, a workman who has completed one year of continuous service is
entitled to:
 50% of the total basic wages and dearness allowance for the days laid off (except
for weekly holidays).
 Compensation is limited to 45 days in a year.

Exemptions from Compensation

No lay-off compensation is payable if:
 The worker refuses alternate employment offered within 5 miles.
 The worker does not present himself for work at the proper time.
 The lay-off is due to a strike or slowdown by workers.

Definition of Retrenchment
The term "retrenchment" is defined under Section 2(oo) of the Industrial Disputes Act,
1947:

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"Retrenchment means the termination by the employer of the service of a workman for
any reason whatsoever, otherwise than as a punishment by way of disciplinary action, but
does not include:
1. Voluntary retirement,
2. Retirement on reaching the age of superannuation,
3. Termination due to continued ill-health,
4. Termination as a result of closure."

Key Features of Retrenchment

1. Termination of Employment: Retrenchment results in permanent separation of a
worker from employment.
2. Not Punishment: It is not due to misconduct or disciplinary action.
3. Involuntary and Employer-Initiated: It is carried out at the initiative of the
employer and often due to surplus staff or cost-cutting.
4. Requirement of One-Year Service: To claim benefits, the workman must have
completed at least one year of continuous service.
5. Legal Procedure (Section 25F):
o Notice of one month or wages in lieu.
o Retrenchment compensation of 15 days’ average pay for every
completed year of service.
o Notice to the appropriate government.

Distinction Between Lay-off and Retrenchment

Point of
Difference Lay-off Retrenchment

Temporary inability of Permanent termination of

Meaning employer to give employment employment
Nature Temporary interruption Permanent severance
Due to shortage of resources, Due to surplus staff, financial
Reason machinery breakdown, etc.
issues, restructuring, etc.
Remains on muster roll, Removed from muster
Employee Status employment continues
roll, employment ends
Right to Re- Worker has right to rejoin when No right to re-employment unless
employment lay-off ends employer chooses to rehire

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Point of
Difference Lay-off Retrenchment

15 days’ pay for every completed

Compensation 50% wages for laid-off days
year of service plus notice or pay in
(maximum 45 days per
lieu
year)
Legal Provision Section 2(kkk), 25C, 25M Section 2(oo), 25F, 25N

Service One year of continuous service One year of continuous service for
Requirement for claiming lay-off claiming retrenchment
compensation compensation
Permanent
Nature No Yes

Intends to resume work once Intends to reduce

Employer’s Intent conditions improve
workforce permanently

Case Laws on Lay-off and Retrenchment

1. Workmen of Dewan Tea Estate v. Management (1G64)
Held: Lay-off must be temporary. If it results in permanent severance, it becomes
retrenchment.

2. Pipraich Sugar Mills Ltd. v. Pipraich Sugar Mills Workers Union (1G57)
Held: Closure of business followed by termination of workers is not retrenchment; it's
closure, which is treated separately under Section 25FFF.

3. Hindustan Steel Ltd. v. State of Orissa (1G77)

Held: Retrenchment must satisfy procedural requirements. Failure to pay retrenchment
compensation makes the action invalid.

4. Management of Karnataka State Road Transport Corporation v. M. Boraiah (1G83)

Held: The reason for retrenchment may vary, but procedural compliance under Section
25F is mandatory for legality.

Conclusion
Lay-off and retrenchment are two distinct legal concepts under industrial law. While both
deal with the interruption or termination of employment, they differ in their nature,
duration, legal implications, and employee rights. Lay-off is temporary and due to
external or technical reasons, while retrenchment is a permanent removal due to

74
organizational needs.

75
Understanding these differences is crucial for employers to follow lawful procedures and
for employees to claim their legal rights. The Industrial Disputes Act, 1G47, through its
structured provisions, ensures a balance between the rights of employers and the
protection of workers, promoting industrial peace and legal compliance.

16) Discuss the immunities available to the registered trade union under
the trade union act 1G26
Introduction
The Trade Unions Act, 1G26 was enacted to provide legal recognition to trade unions and
regulate their functions, rights, and liabilities. One of the most significant features of this
Act is the grant of certain immunities to registered trade unions, which protect them
from civil and criminal liabilities in specific circumstances. These immunities are essential
for empowering trade unions to carry out their activities freely, especially in the context
of collective bargaining, strikes, and protests.

Objective of Granting Immunities

 To protect trade union activities from legal consequences when carried out in
good faith.
 To enable trade unions to function without fear of prosecution for actions
done during legitimate trade disputes.
 To ensure freedom of association and collective bargaining, which are
fundamental to labor rights.

Immunities Granted to Registered Trade Unions

The Trade Unions Act, 1G26 provides two major types of immunities to registered trade
unions:

1. Immunity from Criminal Conspiracy in Trade Disputes – Section

17 Text of Section 17:
“No office-bearer or member of a registered trade union shall be liable to punishment
under sub-section (2) of section 120B of the Indian Penal Code, 1860, in respect of any
agreement made between the members for the purpose of furthering any object of the
trade union.”

Meaning and Scope:

Section 17 provides immunity from criminal conspiracy charges under Section 120B(2)
of the IPC, which deals with criminal conspiracy not amounting to an offence punishable
with death or life imprisonment.

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Key points:
 The immunity is only available for registered trade unions.
 The agreement or act must be made in the course of a trade dispute and must
relate to the legitimate objectives of the union.
 It does not protect unlawful acts such as violence, destruction of property, or
intimidation.

Limitations:
 Immunity does not apply to acts that are criminal offences under other laws (e.g.,
assault, arson).
 It only applies to lawful union activities aimed at collective bargaining or improving
work conditions.

Illustration:
If union members agree to strike peacefully for higher wages, they cannot be prosecuted
for criminal conspiracy. However, if they conspire to damage the employer’s property, this
immunity would not protect them.

2. Immunity from Civil Suits in Certain Cases – Section 18

Text of Section 18(1):
“No suit or other legal proceeding shall be maintainable in any civil court against any
registered trade union or any office-bearer or member thereof in respect of any act done
in contemplation or furtherance of a trade dispute…”

Key Aspects of Section 18(1):

This section protects registered trade unions from civil suits or legal proceedings for acts
done:
 In contemplation or furtherance of a trade dispute,
 Against the employer or third party,
 By peaceful and lawful means.

Types of Protected Acts:

 Inducing someone to break a contract of employment, if done peacefully and
lawfully during a trade dispute.
 Interfering with trade or business, provided it is in furtherance of union objectives.

Section 18(2) – Additional Protection:

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No suit or other legal proceeding shall be maintainable against a registered trade union or
any office-bearer or member thereof in respect of any tortious act done in furtherance of
a trade dispute, unless the act was done without justification.
This clause provides protection even for tortious acts (civil wrongs), as long as the act was
justified and lawful.

Exceptions to Immunity under Section 18:

 Acts of violence, intimidation, or illegal confinement.
 Acts not connected to trade union purposes.
 If the act is done maliciously or with personal motives, immunity may not apply.

Relevant Case Laws on Immunities

1. Rohtas Industries Ltd. v. Brijnandan Pandey (AIR 1G66 SC 1440)

Facts: A registered trade union's general secretary gave a defamatory statement against
the employer.
Held: The court held that immunity under Section 18 does not extend to defamation or
acts of malice, as these are not protected trade union activities.
Principle: Immunities are available only for lawful actions done in good faith for legitimate
trade union purposes.

2. All India Bank Employees’ Association v. National Industrial Tribunal (AIR 1G62
SC 171)
Held: The court held that trade unions have no fundamental right to collective
bargaining, but their activities are protected by statutory provisions like Section 17 and
18. Principle: Legal immunity supports union functioning, but must remain within lawful
boundaries.

3. Patel G Co. v. Workmen (1G67 AIR 617)

Held: The union cannot claim immunity if the act committed is beyond the scope of union
objectives or involves wrongful conduct.

Conditions for Availing Immunity

To claim immunity under Sections 17 and 18, the following conditions must be fulfilled:
1. The trade union must be registered under the Act.
2. The act must be done in the course of a trade dispute.
3. The act must be in furtherance of the objectives of the union.
4. The act must not involve violence, coercion, or criminal activity.

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 5. The act must not be motivated by personal vendetta or malice.

Significance of Immunities for Trade Unions

 Encourages freedom of expression and action in trade disputes.
 Enables unions to bargain collectively without fear of legal reprisals.
 Promotes industrial democracy by protecting lawful protest and negotiation.
 Ensures that peaceful union activities are not hindered by litigation threats.

Limitations of Immunity
1. No protection for illegal acts: Like assault, intimidation, or destruction of property.
2. No protection for unregistered unions: Only registered unions are entitled to these
immunities.
3. No immunity from criminal liability for offences punishable under other statutes.
4. Does not extend to personal acts of members unrelated to union activities.

Relevance Under Industrial Relations Code, 2020

 The Industrial Relations Code, 2020, which subsumes the Trade Unions Act, 1926,
continues to recognize registered trade unions and their rights.
 The Code strengthens the position of recognized negotiating unions but retains the
requirement of lawful conduct.
 Immunities under previous laws are expected to continue in spirit, subject
to procedural compliance.

Conclusion
The immunities granted to registered trade unions under Sections 17 and 18 of the Trade
Unions Act, 1926 are crucial for protecting the legitimate functioning of unions. These
provisions shield unions from criminal conspiracy charges and civil liability when acting
lawfully and in furtherance of trade disputes.
However, these immunities are not absolute and must be exercised with responsibility
and within legal limits. The balance between workers’ rights to organize and employer’s
right to protect business interests is maintained by restricting immunity to peaceful,
justified, and bona fide union activities.

17) Discuss the law relating to strikes under Industrial Disputes

act. Introduction
A strike is one of the fundamental tools used by workers to express collective dissatisfaction,
demand better working conditions, or negotiate employment terms. While strikes are a
form of protest, the Industrial Disputes Act, 1G47 imposes legal regulations

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to balance the interests of both workers and employers. The Act provides definitions,
procedures, restrictions, and penalties related to strikes to ensure that such actions do
not disrupt industrial peace or public interest.

Definition of Strike – Section 2(q)

According to Section 2(q) of the Industrial Disputes Act, 1947:
"Strike means a cessation of work by a body of persons employed in any industry acting in
combination, or a concerted refusal or a refusal under a common understanding of any
number of persons who are or have been so employed to continue to work or to accept
employment."

Key Features of a Strike

1. Cessation of Work: Complete stoppage of work by a group of employees.
2. Collective Action: Must be undertaken by a group, not by individuals acting alone.
3. Common Understanding: The refusal to work must be concerted or pre-planned.

Types of Strikes
1. General Strike: Involves all or most workers across industries.
2. Token Strike: Short-duration strike to register protest.
3. Sympathy Strike: In support of workers from another establishment.
4. Sit-down Strike: Workers stop working but stay at the workplace.
5. Go-slow Strike: Deliberate slowing down of work by employees.
6. Hunger Strike: Workers fast to show protest.
7. Illegal Strike: A strike conducted in violation of the Act’s provisions.

Legal Provisions Related to Strikes

The law relating to strikes under the Industrial Disputes Act can be understood under the
following sections:

1. Section 22 – Prohibition of Strikes in Public Utility Services

This section applies to public utility services (such as railways, transport, water,
electricity, etc.).
Key Provisions:
 No person employed in a public utility service shall go on strike unless:
o A notice of strike is given at least six weeks before striking.
o The strike does not commence within 14 days of giving notice.
o The strike does not occur before the expiry of the date specified in the
notice.

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 o No strike is held during conciliation proceedings and seven days
after their conclusion.
Purpose:
To prevent disruption of essential services and protect public welfare.

2. Section 23 – General Prohibition of Strikes

This section applies to all industrial establishments, not just public utilities.
No strike is allowed:
 During the pendency of conciliation proceedings before a board and 7 days after.
 During the pendency of adjudication before a Labour Court, Tribunal, or National
Tribunal and 2 months after.
 During the pendency of arbitration proceedings (if a notification has been issued).
 In violation of a settlement or award in force.

3. Section 24 – Illegal Strikes

A strike is illegal if:
 It is commenced or declared in contravention of Sections 22 or 23.
 It violates an existing award or settlement.
However, a strike is not illegal merely because:
 It continues after the proceedings have begun (if it started legally).
 No direct act of violence is involved.

4. Section 25 – Penalty for Illegal Strikes

Any workman who:
 Commits or continues an illegal strike, or
 Instigates, incites, or supports such a strike,
is liable for:
 Imprisonment up to one month, or
 Fine up to ₹50, or
 Both.
Note: These penalties are relatively mild, but disciplinary action by the employer may also
follow.

5. Section 26 – Penalty for Instigation and Financial Aid

 Instigating an illegal strike: Punishable with imprisonment up to six months or fine
up to ₹1,000 or both.
 Giving financial aid to an illegal strike is also punishable under this section.

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6. Section 27 – Penalty for Holding Illegal Strikes
Any person who knowingly takes part in, promotes, or finances an illegal strike can be
punished.

Case Laws Related to Strikes

1. All India Bank Employees’ Association v. National Industrial Tribunal (1G62)

Held: The right to form associations is a fundamental right, but the right to strike is not. It
is a statutory right and is subject to reasonable restrictions.

2. Kameshwar Prasad v. State of Bihar (1G62)

Held: Peaceful demonstration is a part of the right to freedom of expression, but there is
no fundamental right to strike.

3. Gujarat Steel Tubes Ltd. v. Gujarat Steel Tubes Mazdoor Sabha (1G80)
Held: If a strike is legal and justified, dismissal of workers merely for participation is
unjustified.

4. Syndicate Bank v. K. Umesh Nayak (1GG4)

Held: Even a legal strike may be declared unjustified based on the circumstances,
especially if it affects public interest.

5. Management of Express Newspapers v. Workers (1G62)

Held: A strike may be legal but not justified, depending on the manner, timing, and
demands.

Legal vs. Justified Strike

Legal Strike Justified Strike
Follows procedures of the Act Based on reasonable and legitimate demands
Not in violation of Sections 22/23 Not arbitrary or disruptive to public order
Does not mean it’s always justified May still be morally or socially unacceptable

Role of Strike in Industrial Relations

 Acts as a pressure tool for collective bargaining.
 Brings attention to workers' grievances.
 Facilitates negotiation and compromise with employers.
 Must be used responsibly and legally to maintain industrial peace.

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Limitations on the Right to Strike
 No constitutional right to strike under Article 19.
 Subject to industrial laws, public order, and state interest.
 Government may prohibit or refer the dispute to arbitration or tribunal.
 Essential services may be exempted from the right to strike.

Impact of Illegal Strikes

 Loss of wages and employment benefits.
 Disciplinary action by employer.
 Penal consequences under the Act.
 Disruption of industrial productivity and public services.

Provisions Under Industrial Relations Code, 2020

The Industrial Relations Code, 2020, which consolidates the Industrial Disputes Act,
continues to regulate strikes. Key features include:
 Mandatory 14 days’ notice before a strike or lockout.
 Applies to all industrial establishments, not just public utilities.
 Strikes during conciliation, adjudication, or arbitration proceedings are prohibited.
 Imposes stricter procedural compliance for legal strikes.
Objective: To reduce disruptive strikes and promote structured dispute resolution.

Conclusion
The Industrial Disputes Act, 1G47 provides a balanced legal framework for regulating
strikes in India. While recognizing the right of workers to protest against unfair practices,
the law ensures that such protests do not harm public interest, industrial peace, or
essential services.
Strikes must be peaceful, legal, and conducted in good faith, following the procedures
laid down in Sections 22, 23, and 24. Misuse of the right to strike or conducting illegal
strikes can invite legal and disciplinary action. In a modern industrial society, strikes
should be the last resort, with priority given to conciliation, negotiation, and arbitration.
18) What is meant by on Industry and eloborate it with case
laws? Introduction
The term “Industry” is central to labor law in India, especially under the Industrial
Disputes Act, 1G47, which governs dispute resolution, retrenchment, layoffs, strikes, and
other aspects of industrial relations. Understanding what constitutes an “industry” is
crucial because many protections and remedies under the Act apply only to those
working in or operating an industry.

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Over time, courts in India have elaborated and interpreted the definition of "industry"
through various landmark judgments, leading to a broader and inclusive understanding of
the term.

Statutory Definition – Section 2(j) of the Industrial Disputes Act, 1G47

“Industry” means any business, trade, undertaking, manufacture or calling
of
employers and includes any calling, service, employment, handicraft, or industrial
occupation or avocation of workmen.”
Key Elements of the Definition:
1. Activities of Employers: Business, trade, undertaking, manufacture, or calling.
2. Activities of Workmen: Calling, service, employment, handicraft, or industrial
occupation.
This definition is inclusive and wide, covering both employer-oriented and worker-
oriented activities.

Essential Ingredients of an Industry

From judicial interpretation and the statutory definition, an enterprise is considered an
“industry” if it satisfies the following conditions:
1. Systematic Activity: The enterprise must involve organized and continuous work.
2. Cooperation Between Employer and Employee: There must be a relationship
where employees perform services under the direction of an employer.
3. Production or Distribution of Goods or Services: The activity must contribute to
production or service to satisfy human wants.
4. Human Involvement: Labor (physical or mental) must be involved.
5. Profit Motive Not Essential: Even organizations that operate without profit,
like educational or charitable institutions, may fall under “industry”.

Judicial Interpretation and Landmark Case Laws

1. Bangalore Water Supply and Sewerage Board v. A. Rajappa (1G78 AIR 548)
Facts: The Bangalore Water Supply Board was a statutory body providing water supply and
sewerage services. A dispute arose whether it could be classified as an industry under
Section 2(j).
Held: The Supreme Court gave a wider interpretation of "industry" and held that:
“Any systematic activity organized by cooperation between employer and employee
(whether for profit or not) to produce and distribute goods and services for
satisfying human wants” is an industry.
Laid down the “Triple Test”:
1. Systematic activity.
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 2. Cooperation between employer and employee.
3. Production or distribution of goods or services (not necessarily for profit).
Excluded:
 Sovereign functions (like police, army, judiciary).
 Purely domestic or casual work.
 Small-scale religious or charitable activities.
Significance: This case expanded the scope of the definition of "industry", including
hospitals, educational institutions, clubs, etc.

2. State of Bombay v. Hospital Mazdoor Sabha (AIR 1G60 SC 610)

Facts: The case dealt with whether a government-run hospital was an industry.
Held: The Supreme Court ruled that a hospital is an industry, as it performs a systematic
activity with employer-employee relations and renders services.
Significance: Confirmed that profit motive is not essential to constitute an industry.

3. University of Delhi v. Ram Nath (AIR 1G63 SC 1873)

Facts: Dispute regarding whether a university is an industry.
Held: The Court held that educational institutions are not industries. However, this was
later overruled by the Bangalore Water Supply case, which included educational
institutions as industries if they meet the triple test.

4. Management of Safdarjung Hospital v. Kuldip Singh (AIR 1G70 SC 1407)

Facts: The issue was whether a hospital managed by the government fell within
the definition of an industry.
Held: The Court held that hospitals are not industries as they provide free services and
are not engaged in trade or business.
Note: This decision was later overruled by the Bangalore Water Supply case.

5. Coir Board Ernakulam v. Indira Devi (1GG8 SC)

Held: A cooperative society engaged in production through its members is an industry, as long
as it satisfies the triple test.

Post-Bangalore Water Case Developments

The Bangalore Water Supply judgment faced criticism for being too broad. This led to various
attempts to revisit the definition.
Recommendations by the Second National Commission on Labour (2002):
 Suggested a narrower definition of industry.
 Recommended excluding charitable, social, and educational institutions.

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 Industrial Relations Code, 2020:
 The code retains the broad definition of industry, similar to the Industrial Disputes
Act.
 However, it provides flexibility to the government to exclude certain activities.

Activities Not Considered as Industry

As per judicial rulings and accepted legal principles, the following are excluded from the scope
of “industry”:
1. Sovereign functions of the State (police, army, legislative activities, judiciary).
2. Purely religious and spiritual activities.
3. Agricultural operations (with some exceptions).
4. Small charitable institutions without systematic commercial activity.
5. Domestic services or services performed by individuals for personal use.

Why the Definition of Industry Is Important

1. Applicability of the Industrial Disputes Act: Only workers in an “industry” can
raise disputes under the Act.
2. Access to Legal Remedies: Workmen can claim protections like retrenchment
compensation, lay-off benefits, and conciliation proceedings.
3. Policy and Regulation: Helps government frame rules and settle disputes through
Tribunals.

Conclusion
The term "industry" under the Industrial Disputes Act, 1947, has been interpreted broadly
by the judiciary, especially in the landmark Bangalore Water Supply case, to include any
organized, systematic activity involving employer-employee cooperation and rendering
goods or services.
The profit motive is not essential, and many non-commercial institutions like
hospitals and educational bodies may be considered industries if they meet the
necessary conditions. However, sovereign functions and purely charitable or
domestic activities remain excluded.
Understanding the ambit of “industry” is crucial, as it determines the legal rights and
remedies available to employees and employers under the industrial laws in India.

1G) Write and differentiate between Strike and lockout

Introduction
In the realm of industrial relations, disputes between employers and employees are not
uncommon. Two powerful tools used during such conflicts are strike and lockout. Both

86
are economic weapons — a strike is used by workers to pressurize the employer, while a
lockout is used by the employer to put pressure on workers. The Industrial Disputes Act,
1G47, governs both these concepts and lays down the procedures, legality, and
consequences of each.
Understanding the distinction between strike and lockout is vital for balancing industrial
peace with the rights of both employers and employees.

Meaning of Strike – Section 2(q) of the Industrial Disputes Act, 1G47

"Strike" means a cessation of work by a body of persons employed in any industry
acting in combination, or a concerted refusal or a refusal under a common
understanding of any number of persons who are or have been so employed to
continue to work or to accept employment."
Essentials of Strike:
1. Cessation of work: There must be a stoppage of work.
2. Group action: Undertaken by multiple workers acting together.
3. Common intention: A shared goal or understanding, usually to compel the
employer to meet demands.
4. Employment relationship: Involves those currently or formerly employed.

Types of Strikes:
 General Strike: Conducted across various industries.
 Token Strike: Short-term protest.
 Go-slow: Employees deliberately reduce productivity.
 Sit-down Strike: Workers occupy the premises but stop working.
 Sympathy Strike: In support of another group of striking workers.
 Illegal Strike: Violates provisions of the Industrial Disputes Act.

Meaning of Lockout – Section 2(l) of the Industrial Disputes Act, 1G47

"Lockout" means the temporary closing of a place of employment or the
suspension of work, or the refusal by an employer to continue to employ any
number of persons employed by him."
Essentials of Lockout:
1. Initiated by employer: It is an employer’s response to a labor dispute.
2. Refusal of employment: Workers are not allowed to work or enter the premises.
3. Temporary: Lockouts are not permanent closures.
4. Purpose: To compel workers to accept certain conditions.

Difference Between Strike and Lockout

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Aspect Strike Lockout
A collective stoppage of work Temporary suspension of work
Definition
by
employees by the employer
Initiated by Employees or trade union Employer
To pressurize the employer for To compel workers to accept
Purpose demands
employer’s terms
Section 2(q), Sections 22–24 of the Section 2(l), Sections 22–24 of the
Legal Provision Industrial Disputes Act
Industrial Disputes Act
Defensive or offensive weapon used Generally used as a counter-action
Nature by workers
to strike or labor unrest
Employment Employees voluntarily withdraw
status Employer refuses to offer work
services
Halt in production due to
Result Halt in production due to
employer’s refusal to employ
worker non-cooperation
workers
Must follow notice and other legal Same procedural requirements in
Procedure requirements in public utilities public utilities
Strike for wage hike, against Lockout during a wage
Examples
unfair
dismissal negotiation deadlock

Legal Provisions Governing Strikes and Lockouts

1. Section 22 – Applies to public utility services
 Prior notice of six weeks is required before a strike or lockout.
 Strike or lockout cannot begin:
o Within 14 days of giving notice,
o Before the date mentioned in the notice,
o During conciliation proceedings and seven days after their conclusion.
2. Section 23 – General prohibition (for all industries)
No strike or lockout is allowed:
 During conciliation or adjudication proceedings,
 During arbitration if notified,
 During the pendency of settlements or awards.
3. Section 24 – Declares a strike or lockout illegal if it violates Sections 22 or 23.
4. Section 25 – Penalizes illegal strikes or lockouts with:
 Imprisonment up to one month or fine up to ₹50, or both.

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Judicial Interpretations
1. All India Bank Employees’ Association v. National Industrial Tribunal (1G62)
 Held: Right to strike is not a fundamental right; it is only a statutory right and
subject to reasonable restrictions.

2. Kameshwar Prasad v. State of Bihar (1G62)

 Demonstrations are allowed under Article 19(1)(a), but there is no
fundamental right to strike.

3. Gujarat Steel Tubes Ltd. v. Gujarat Steel Tubes Mazdoor Sabha (1G80)
 A legal and justified strike does not warrant dismissal unless there is misconduct.

4. Lakshmi Devi Sugar Mills Ltd. v. Pt. Ram Sarup (1G57)

 A lockout is justified only if used in good faith and proportionate to the cause.

Effect of Illegal Strike or Lockout

Illegal Strike:
 Workers may lose protection under labor laws.
 No wages for the strike period.
 Disciplinary action may be taken.
Illegal Lockout:
 Employers may be penalized.
 May be ordered to pay back wages to workers.
 Government may intervene and force reopening.

Strikes and Lockouts under Industrial Relations Code, 2020

 Code retains earlier principles but:
o Makes 14-day notice mandatory for all establishments before strikes or
lockouts.
o Requires advance intimation of strikes and lockouts to labor authorities.
o Emphasizes conciliation and dispute resolution before such actions.

Conclusion
Both strike and lockout are tools used during industrial disputes — one by employees and
the other by employers. While strikes are intended to exert pressure for better
employment terms, lockouts are often used as a countermeasure or to enforce
discipline.

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The Industrial Disputes Act, 1G47, ensures that such actions are regulated through
proper legal procedures, balancing the rights of workers with the interests of employers
and the public at large. Although both are legal rights under certain conditions, misuse or
failure to follow procedure can render them illegal, attracting penalties and legal
consequences.
20) Describe briefly about Board of
Conciliation Introduction
Industrial peace is a cornerstone of economic development and harmonious labor
relations. When disputes arise between employers and employees, peaceful settlement
becomes essential to prevent strikes, lockouts, and production losses. One of the key
mechanisms for this is conciliation, and an important body constituted for this purpose
under the Industrial Disputes Act, 1G47, is the Board of Conciliation.
The Board of Conciliation plays a critical role in resolving industrial disputes through
dialogue, compromise, and mutual understanding before they escalate into prolonged
conflicts.

Legal Basis – Section 4 and Section 5 of the Industrial Disputes Act, 1G47
Under the Industrial Disputes Act, Section 5 provides for the constitution, composition,
powers, and duties of the Board of Conciliation.

Meaning of Board of Conciliation

The Board of Conciliation is an ad hoc body constituted by the appropriate government
for the investigation and settlement of industrial disputes. Its purpose is to mediate
between employers and workmen and promote a settlement without resorting to
adjudication or strikes/lockouts.

Composition of the Board

As per Section 5(3) of the Act:
 The Board shall consist of:
o A Chairman, and
o Two or four other members, as the appropriate government thinks fit.
 The Chairman is an independent person, not connected with the dispute.
 The other members represent parties to the dispute, i.e., employers and workmen,
in equal numbers.
The composition ensures neutrality and balanced representation during conciliation
efforts.

Constitution of the Board

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  The appropriate government (Central or State) constitutes the Board of
Conciliation through official notification.
 It is temporary and set up for specific disputes.
 The Board continues to function until the dispute is resolved or referred to
adjudication.

Powers and Duties of the Board of Conciliation

The Board has both investigative and facilitative functions:

1. Duty to Mediate (Section 13(1))

The primary duty of the Board is to:
 Bring the parties together for negotiation,
 Mediate and promote a fair and amicable settlement of the industrial dispute.

2. Duty to Investigate
 The Board has the power to investigate the causes and nature of the dispute.
 It can summon documents, examine witnesses, and gather facts to understand the
dispute thoroughly.

3. Duty to Submit Report (Section 13(2))

 If a settlement is reached, the Board submits a report with a memorandum of the
settlement signed by the parties.
 If no settlement is reached, the Board submits a full report stating:
o The facts of the dispute,
o Steps taken for settlement,
o Reasons for failure of conciliation,
o Recommendations for future action.

4. Ǫuasi-Judicial Powers
The Board has certain powers of a Civil Court, such as:
 Summoning witnesses,
 Requiring production of documents,
 Administering oaths,
 Conducting inquiries.
However, the Board is not a court of law and does not deliver binding judgments.

5. Advisory Role

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  The Board may recommend whether the dispute should be referred to a
Labor Court, Tribunal, or National Tribunal for adjudication.
 Its findings may influence further legal or administrative action by the government.

6. Duty to Maintain Industrial Peace

 The Board’s objective is to prevent strikes and lockouts.
 During the conciliation process, under Section 22 and 23, parties are prohibited
from engaging in strikes or lockouts.

Importance of the Conciliation Board

 Encourages settlement at an early stage without formal litigation.
 Saves time and reduces the burden on Labor Courts and Tribunals.
 Maintains industrial harmony and productivity.
 Protects the interests of both employers and employees.

Relevant Case Law

1. Tata Chemicals Ltd. v. Workmen (1G78)
Held: The Court recognized the Board’s role in ensuring a fair settlement and emphasized
that good faith participation by both parties is essential.

2. Bhopal Sugar Industries v. Bhopal Sugar Industries Mazdoor Sabha (1G57)

Held: A failure of conciliation must be properly reported by the Board before a dispute is
referred to a Tribunal under Section 12(5). The Board's report is vital to determine the
course of action.

3. Bombay Union of Journalists v. The Hindu (1G61)

Held: The Supreme Court stated that even if conciliation fails, the government has
discretion to refer the matter to adjudication based on the Board’s report.

Limitations of the Board of Conciliation

1. No Binding Powers: The Board cannot enforce a settlement; it can only recommend
or record agreements.
2. Dependent on Parties’ Cooperation: If either party is uncooperative, conciliation
may fail.
3. Temporary Nature: Being ad hoc, the Board dissolves after submission of the
report, which may hinder continuity.
4. Delays in Appointment: Often delays in constitution and functioning reduce its
effectiveness.

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 Recent Developments
Under the Industrial Relations Code, 2020, conciliation remains an important method of
dispute resolution:
 The Code simplifies the structure by creating Conciliation Officers instead of
Boards for routine cases.
 However, Boards of Conciliation may still be constituted for complex or large-scale
disputes involving multiple parties or sectors.
 The emphasis is on digital conciliation, faster settlement, and reduction of
litigation.

Conclusion
The Board of Conciliation plays a vital role in promoting peaceful and prompt settlement
of industrial disputes. Though it does not have binding powers, its presence ensures that
both employers and employees have an opportunity to resolve their issues through
dialogue and compromise. It acts as a buffer between the conflict and litigation and helps
avoid strikes and lockouts.
In the evolving industrial framework, the Board continues to serve as a key mechanism for
dispute prevention and resolution, especially in complex industrial scenarios.

21) Discuss the origin and recommendations of various committees

of Industrial Employment (Standing Orders) act 1G46.
Introduction
The Industrial Employment (Standing Orders) Act, 1G46 was enacted to bring uniformity,
transparency, and discipline in the employment conditions of industrial workers. Before its
enactment, employment terms were governed largely by unwritten customs and
employer discretion, leading to arbitrary dismissals, confusion, and frequent industrial
disputes.
To address these concerns and bring about codified service conditions, various
committees and commissions were set up by the Government of India over time. These
committees not only influenced the formulation of the Act but also made important
recommendations for its effective implementation and reform.

Origin of the Industrial Employment (Standing Orders) Act, 1G46 Historical

Background
In pre-independence India, industrial workers often suffered due to:
 Lack of clearly defined service conditions,
 Arbitrary actions by employers,

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  No uniform code of conduct,
 Absence of grievance redressal mechanisms.
To ensure fair treatment and industrial harmony, the idea of Standing Orders—written
rules governing the terms of employment—was proposed.

Main Objective of the Act

 To require employers in industrial establishments to clearly define conditions of
employment.
 To ensure that workers are informed of these conditions through certified
standing orders.
 To prevent unilateral changes in terms of service.

Key Committees and Their Recommendations

Over the years, various committees and commissions examined the functioning and scope
of the Act and suggested reforms. Some of the most notable ones include:

1. Royal Commission on Labour (1G31)

Background:
 Set up by the British Government to study labor conditions in India.
Key Observations:
 Found that employment conditions were not defined in many establishments.
 Workers were hired and dismissed without any written agreement or procedure.
 Disciplinary actions were often arbitrary and unjust.
Recommendations:
 Suggested compulsory codification of service conditions in industrial
establishments.
 Recommended the introduction of Standing Orders to bring clarity and reduce
disputes.
 Emphasized that these rules should be approved by a neutral authority to ensure
fairness.
Impact: The recommendations of the Royal Commission laid the foundation for the
Industrial Employment (Standing Orders) Act, 1G46.

2. Labour Investigation Committee (1G44–46)

Background:
 Formed during World War II to study the status of labor laws and
employment practices.
Key Observations:

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  Found low awareness of workers regarding their rights and service conditions.
 Noted wide variations in employment practices between different regions and
industries.
Recommendations:
 Urged early implementation of uniform standing orders in all industrial units.
 Suggested that model standing orders should be prepared by the government to
ensure minimum standards.
 Recommended the training of certifying officers to speed up certification.
Impact: Encouraged the immediate enforcement of the 1G46 Act, and influenced the
creation of Model Standing Orders.

3. First National Commission on Labour (1G6G)

Background:
 Constituted by the Government of India to study existing labor laws and
recommend changes.
Key Observations:
 Found delays and inconsistencies in certification of standing orders.
 Expressed concern over overlapping provisions with other labor laws like the
Industrial Disputes Act.
Recommendations:
 Suggested harmonization of the Standing Orders Act with the Industrial Disputes
Act.
 Advocated for model standing orders to be made applicable universally until
employer-specific orders are certified.
 Proposed simplification of certification procedures.
 Recommended that standing orders should cover wider issues, including grievance
handling and sexual harassment policies.
Impact: Led to amendments in the Act and influenced future reforms in labor law
simplification.

4. Second National Commission on Labour

(2002) Background:
 Set up to review and suggest improvements in the existing labor laws in light
of globalization and economic reforms.
Key Observations:
 Existing labor laws, including the Standing Orders Act, were fragmented and
outdated.
 The certification process was bureaucratic and caused delays.

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 Recommendations:
 Suggested merging the Standing Orders Act with other related laws to form a
comprehensive labor code.
 Recommended self-certification for establishments following model standing
orders.
 Proposed that certified standing orders should automatically become part of the
employment contract.
 Called for greater use of digital systems in filing, certifying, and modifying standing
orders.
Impact: Directly influenced the Industrial Relations Code, 2020, which seeks to
consolidate and modernize labor laws.

Reform Through Industrial Relations Code, 2020

As part of labor reforms, the Government of India passed the Industrial Relations Code, 2020,
which replaces the Standing Orders Act, 1946, and includes its key provisions.
Key Changes:
 Applicability raised to establishments with 300 or more workers (previously 100).
 Introduces a system for model standing orders applicable across sectors.
 Simplifies certification and modification procedures.
 Allows electronic submission and communication.
 Promotes self-regulation by employers.
These reforms reflect the evolution of labor relations in India and are largely based on
committee recommendations.

Conclusion
The Industrial Employment (Standing Orders) Act, 1G46 emerged from a historical need
to define and regulate service conditions in industrial establishments. The Royal
Commission on Labour, Labour Investigation Committee, and the National
Commissions on Labour have played a vital role in shaping its development.
Their recommendations aimed at promoting transparency, fairness, and discipline in
employment relations. With the advent of the Industrial Relations Code, 2020, many of
these suggestions have been implemented, indicating the continued relevance and
importance of these committees in shaping Indian labor law.

22) Give a note on the process of domestic

Enquiry Introduction
A domestic enquiry is a formal investigation conducted by an employer to determine whether
a workman is guilty of misconduct under the rules or standing orders of an

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industrial establishment. It is a disciplinary procedure initiated when an employee is
alleged to have committed a breach of conduct, with the objective of ensuring fairness,
natural justice, and due process before imposing any punishment like suspension or
dismissal.
The process is quasi-judicial in nature and must adhere strictly to the principles of
natural justice to ensure that the worker receives a fair and impartial hearing.

Importance of Domestic Enquiry

 Prevents arbitrary dismissal or punishment.
 Protects the rights of the employee.
 Provides the employer with a legal basis for disciplinary action.
 Ensures that industrial relations remain fair and transparent.
 Courts rely on properly conducted domestic enquiries to uphold disciplinary
actions.

Legal Basis
While the Industrial Employment (Standing Orders) Act, 1G46 does not lay out the
detailed process, judicial interpretations and employment rules have established the
standard procedure, supported by the principles of natural justice and fair hearing.

Principles of Natural Justice

1. Nemo judex in causa sua – No person shall be a judge in his own case (rule against
bias).
2. Audi alteram partem – The person must be given a fair opportunity to be heard.
3. Speaking Order – The decision must be based on evidence and properly reasoned.

Process of Domestic Enquiry

The standard steps involved in conducting a domestic enquiry are as follows:

1. Preliminary Investigation
 Conducted internally to assess whether there is prima facie evidence of
misconduct.
 If found, it leads to the initiation of formal disciplinary proceedings.

2. Issuance of Charge Sheet

 A charge sheet is issued to the employee, specifying:
o The allegations or misconduct committed,
o Reference to the relevant rule or standing order violated,

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 o A time limit to submit a reply or explanation (usually 48 to 72 hours).
The charge sheet must be clear, specific, and not vague or ambiguous.

3. Consideration of Reply
 The explanation submitted by the employee is evaluated.
 If it is found unsatisfactory, or if the employee fails to respond, the employer
proceeds with a domestic enquiry.

4. Appointment of Enquiry Officer

 An impartial person is appointed as the Enquiry Officer (EO).
 The EO must not be connected to the allegations or have any personal bias.
 An Employer’s Representative may also be appointed to present the case.

5. Notice of Enquiry Hearing

 A formal notice of enquiry is issued to the employee, mentioning:
o Date, time, and venue of the enquiry,
o The right to be assisted by a co-worker or union representative,
o Consequences of non-appearance.

6. Conduct of the Enquiry

The enquiry must be conducted in accordance with fair procedures:
a. Recording of Proceedings
 All statements and events must be properly recorded.
 Minutes must be signed by the Enquiry Officer and parties.
b. Presentation of Employer’s Case
 The Employer’s Representative presents the evidence and witnesses.
 The employee has the right to cross-examine.
c. Presentation of Employee’s Defence
 The employee may:
o Cross-examine witnesses,
o Present his own witnesses and documents,
o Make oral or written submissions.
d. Ex-parte Enquiry
 If the employee fails to attend without valid reason, the EO may proceed in his
absence, provided natural justice is not violated.

7. Submission of Enquiry Report

 After examining all evidence, the EO prepares a written report.

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  The report must include:
o Summary of proceedings,
o Evidence considered,
o Findings on each charge (proved, not proved),
o Reasoning behind conclusions.
The Enquiry Officer does not recommend punishment – only states whether charges are
proved.

8. Disciplinary Authority’s Decision

 The employer (disciplinary authority) reviews the enquiry report.
 If charges are proved, a show cause notice may be issued to the employee before
final action.
 The employee’s reply is considered, and a final punishment order is passed.
Possible punishments:
 Warning or censure
 Suspension
 Stoppage of increment
 Demotion
 Dismissal

Legal Validity of Domestic Enquiry

The enquiry is legally valid if it:
 Follows principles of natural justice,
 Provides proper notice and hearing,
 Is based on reliable evidence,
 Is free from bias,
 Is prompt and not unduly delayed.

Judicial Pronouncements
1. Workmen of Firestone Tyre G Rubber Co. v. Management (1G73)
Held: A proper domestic enquiry is a precondition for valid dismissal. Courts will not
interfere if the enquiry is fair and the findings are based on evidence.

2. Union of India v. Tulsiram Patel (1G85)

Held: In exceptional circumstances, domestic enquiry can be dispensed with (e.g., threat to
national security), but reasons must be recorded.

3. State Bank of India v. T.J. Paul (1GGG)

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Held: Even if the enquiry is fair, the punishment must be proportionate to the misconduct.

Consequences of a Defective or No Enquiry

 If the enquiry is not held or is found defective, the employer may justify
the dismissal by leading fresh evidence before the Labor Court.
 However, the burden of proof lies on the employer.

Conclusion
A domestic enquiry is an essential and fair mechanism to deal with allegations of
misconduct in industrial establishments. It ensures that no worker is punished arbitrarily
and that the employer’s authority is exercised in a legal and ethical manner. Following
a proper enquiry process not only ensures compliance with legal norms but also
strengthens trust in organizational discipline systems.
By adhering to the principles of natural justice, providing opportunities for defence, and
recording reasoned decisions, employers can maintain both discipline and industrial
harmony.

23) Write a note on Labour

Courts Introduction
The establishment of Labour Courts is a significant feature of the Industrial Disputes Act,
1G47. These courts are quasi-judicial bodies created to adjudicate industrial disputes
and enforce rights of workers and employers under various labor laws. The aim is to
provide speedy, specialized, and impartial adjudication of disputes arising in the course of
industrial employment.
Labour Courts ensure that the principles of fairness, justice, and equity are upheld in
industrial relations, playing a vital role in maintaining industrial peace.

Statutory Provision: Section 7 of the Industrial Disputes Act, 1G47

Under Section 7, the appropriate government (Central or State) may constitute Labour
Courts for the adjudication of industrial disputes relating to matters specified in the
Second Schedule of the Act.

Constitution of Labour Courts

1. Appointing Authority:
 The appropriate government (State or Central) constitutes Labour Courts through
official notification.
2. Presiding Officer:
 A Labour Court consists of a single Presiding Officer.

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  He/she must be independent, with judicial experience or legal qualification.

Ǫualifications of the Presiding Officer (Section 7(3))

A person is qualified to be a Presiding Officer if he/she:
 Is, or has been, a judge of a High Court, or
 Has served as a District Judge or Additional District Judge for at least 3 years, or
 Has held a judicial office in India for at least 7 years, or
 Has been a Presiding Officer of a Labour Court under any State law for not less
than 5 years, or
 Is an advocate with at least 7 years of legal practice in labor law (as per state
amendments).

Jurisdiction of Labour Courts

Labour Courts adjudicate disputes relating to matters in the Second Schedule of the Act, such
as:
1. Propriety or legality of orders passed by an employer under standing orders.
2. Discharge or dismissal of workmen, including reinstatement and compensation.
3. Withdrawal of customary concessions or privileges.
4. Illegality of strikes or lockouts.
5. Interpretation and application of standing orders.
6. Any other matter assigned by the government.

Powers of Labour Courts

Labour Courts have wide powers to:
 Summon and enforce attendance of witnesses.
 Require the production of documents.
 Administer oaths.
 Examine evidence and record findings.
 Pass interim orders or awards.
 Enforce settlements and awards.
They function with civil court powers for the purposes of inquiry and adjudication.

Procedure Before Labour Courts

1. Reference by Government (Section 10):
o Industrial disputes are referred by the appropriate government to the
Labour Court.
2. Notice to Parties:
o Parties to the dispute (employer and workmen) are informed.

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 3. Filing of Written Statements:
o Each party submits their version with documents and witnesses.
4. Hearing and Evidence:
o Witnesses are examined, cross-examined, and arguments are heard.
5. Award:
o After examining facts and law, the court delivers its award (decision),
which must be published by the government.

Award of Labour Court (Section 15)

 The Labour Court shall submit its award within the time specified by the
government (generally within 3 months).
 The award becomes binding and enforceable after it is published in the Official
Gazette.
 The award is final and binding for one year, unless otherwise specified.

Appeal and Review

Labour Court awards cannot be appealed in ordinary courts. However, they may be:
 Challenged in High Court under Article 226 (writ jurisdiction),
 Reviewed by Labour Court itself (if permitted by rules),
 Referred further to Industrial Tribunal (in some cases).

Case Laws on Labour Courts

1. Bharat Bank Ltd. v. Employees (1G50)
Held: Labour Courts are quasi-judicial bodies, and their decisions are subject to judicial
review.

2. Western India Match Company Ltd. v. Workmen (1G70)

Held: Labour Court has the power to re-examine the fairness of dismissal and can direct
reinstatement with back wages if dismissal is found unjustified.

3. Delhi Cloth G General Mills Co. v. Ludh Budh Singh (1G72)

Held: A Labour Court is empowered to decide whether the domestic enquiry was valid
or if fresh evidence is needed.

4. Cooper Engineering Ltd. v. P.P. Mundhe (1G75)

Held: If a domestic enquiry is defective, Labour Court can allow the employer to lead fresh
evidence to justify the action.

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Limitations of Labour Courts
1. Delay in Proceedings: Due to heavy workload and limited infrastructure.
2. Limited Jurisdiction: Cannot adjudicate matters beyond the Second Schedule.
3. Dependence on Government Reference: Courts cannot take up matters suo
motu.
4. Lack of uniformity: Variations in procedure and appointments across states.

Reforms Under Industrial Relations Code, 2020

The Industrial Relations Code, 2020 seeks to consolidate and simplify the functions of
Labour Courts.
Key Changes:
 Labour Courts to handle individual and industrial disputes related to termination,
lay-off, and retrenchment.
 Simplifies procedure and encourages conciliation before adjudication.
 Emphasizes use of digital platforms for filing and managing cases.
The aim is to ensure quicker resolution, standardization of procedures, and reduction
of pendency.

Conclusion
Labour Courts are essential institutions under Indian labor law, tasked with resolving
disputes between employers and employees through legal adjudication. They ensure that
dismissals, suspensions, and other disputes are settled with justice and equity, upholding
the rights of workmen while protecting legitimate employer interests.
Despite certain limitations, Labour Courts have played a vital role in developing industrial
jurisprudence in India. With recent reforms under the Industrial Relations Code, they are
expected to become more efficient, transparent, and accessible, ensuring better
industrial relations and worker protection.

24) Nature the authorities under the ID

Act Introduction
The Industrial Disputes Act, 1G47 (ID Act) was enacted to provide a legal framework for
the investigation and settlement of industrial disputes in India. To ensure effective
implementation of its objectives, the Act provides for the constitution of various
authorities for the prevention and resolution of such disputes.
These authorities are empowered to promote conciliation, adjudication, and voluntary
arbitration, thereby maintaining industrial peace and harmony. Each authority under the
Act has distinct functions, powers, and jurisdiction.

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Authorities Under the Industrial Disputes Act
The authorities created under the ID Act can be broadly classified as:
1. Conciliation Authorities
2. Adjudicatory Bodies
3. Voluntary Arbitration
4. Administrative Authority (Appropriate Government)

1. Conciliation Authorities
These aim to mediate and promote settlement between disputing parties at an early stage
to avoid escalation.
a) Conciliation Officer (Section 4)
Nature:
 Appointed by the appropriate government.
 Can be permanent or temporary.
 May be appointed for a specific industry or area.
Functions:
 Investigate and mediate in industrial disputes.
 Promote settlement through conciliation meetings.
 Submit a report to the government within 14 days (or as specified).
If the dispute is settled, a memorandum of settlement is signed. If not, a failure report is
submitted.

b) Board of Conciliation (Section

5) Nature:
 Constituted by the government when a dispute is complex or large.
 Ad hoc body with:
o A Chairman (independent person).
o Two or four representatives of parties.
Functions:
 Similar to those of a Conciliation Officer.
 Tries to promote settlement.
 Submits a detailed report with findings and outcomes.

2. Adjudicatory Authorities
These bodies decide the disputes through formal adjudication when conciliation fails.
a) Labour Court (Section 7)
Nature:
 A single-member court appointed by the appropriate government.

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Ǫualification of Presiding Officer:
 Must be a District Judge, judicial officer, or qualified legal practitioner
with required experience.
Jurisdiction:
 Deals with matters in the Second Schedule, such as:
o Dismissal or discharge,
o Standing orders,
o Illegality of strikes/lockouts,
o Interpretation of standing orders.
Powers:
 Can summon witnesses, record evidence, and give binding awards.

b) Industrial Tribunal (Section

7A) Nature:
 Appointed by the appropriate government.
 Composed of a Presiding
Officer. Ǫualification:
 Must be a High Court judge or District Judge with specified experience.
Jurisdiction:
 Deals with both Second Schedule and Third Schedule matters, including:
o Wages, working hours,
o Leave and holidays,
o Bonus and provident fund,
o Retrenchment and closure.
Powers:
 Same as civil court for trial of suits.

c) National Tribunal (Section

7B) Nature:
 Constituted by the Central Government for disputes involving:
o National importance, or
o Disputes affecting more than one state.
Presiding Officer:
 Must be a High Court Judge or have equivalent experience.
Jurisdiction:
 Handles inter-state industrial disputes.
 Awards are binding across states.

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3. Voluntary Arbitration (Section 10A)
Nature:
 Encourages employers and workers to mutually refer a dispute to arbitration,
avoiding litigation.
Procedure:
 An arbitration agreement is signed and submitted to the appropriate government.
 The arbitrator's award is binding like a court award.
 The arbitrator must submit the award within the specified
period. Promotes informal, quicker resolution of disputes.

4. Role of the Appropriate Government

The Central or State Government, depending on the industry, acts as the administrative
authority under the ID Act.
Powers and Functions:
 Refer disputes to Labour Courts, Tribunals, or National Tribunals.
 Appoint Conciliation Officers and Boards.
 Decide whether to accept or reject conciliation reports.
 Publish awards in the official gazette.
 Grant or deny permission for closure, lay-off, or retrenchment under Chapter V-B.

Nature of Authorities – Summary Table

Binding
Authority Type Purpose
Decision?
Conciliation Officer Administrative Mediation and settlement No
Board of Conciliation Administrative Mediation in complex disputes No
Labour Disputes on dismissal,
Court Adjudicatory Yes
misconduct, etc.
Broader industrial issues (wages, Yes
Industrial Tribunal Adjudicatory PF, etc.)
Multi-state or nationally important
National Tribunal Adjudicatory Yes
cases
Voluntary Arbitration Arbitral Settlement by mutual consent Yes
Appropriate
Refers disputes, appoints Yes (in referrals)
Government Administrative authorities

Judicial Observations

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1. Workmen of Firestone Tyre G Rubber Co. v. Management (1G73)
Held: Adjudicatory bodies under the ID Act are quasi-judicial and must follow the
principles of natural justice.

2. Ramnagar Cane and Sugar Co. v. Jatin Chakravorty (1G60)

Held: The Labour Court has the authority to examine the fairness of dismissal, even if a
domestic enquiry has been held.

3. National Engineering Industries v. State of Rajasthan (2000)

Held: The appropriate government must apply its mind before refusing to refer a dispute
for adjudication.

Conclusion
The Industrial Disputes Act, 1G47, establishes a structured mechanism of authorities
to prevent, mediate, and resolve industrial disputes. These authorities — including
Conciliation Officers, Labour Courts, Tribunals, and National Tribunals — are designed
to ensure fair and efficient resolution through legal or negotiated means.
Their nature ranges from administrative to quasi-judicial, and their functions are vital for
promoting industrial peace, protecting worker rights, and maintaining economic
stability. With continued legal and policy reforms, these authorities are evolving to better
address the dynamic needs of industrial relations in India.

25) Explain the functions of registered trade

union Introduction
A registered trade union is a legally recognized body of workers formed to protect and
promote the economic, social, and political interests of its members. The Trade Unions
Act, 1G26, governs the registration, rights, duties, and functions of trade unions in India.
Once registered, a trade union becomes a body corporate with a distinct legal identity,
capable of acquiring property, entering contracts, and suing or being sued.
The core function of a trade union is to act as a collective voice for workers, ensure fair
working conditions, and serve as a bridge between the workforce and the employer.

Legal Basis
 Section 15 of the Trade Unions Act, 1G26 lays down the objects for which
the general funds of a registered trade union may be spent.
 In addition to statutory functions, trade unions also perform several social,
economic, and political functions.

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Primary Functions of a Registered Trade Union
1. Collective Bargaining
 One of the most important functions is to negotiate with employers on matters like:
o Wages
o Working hours
o Leave and holidays
o Bonuses and allowances
o Health and safety
 Through collective bargaining, trade unions help achieve fair and just employment
terms.

2. Protection of Workers' Rights

 Trade unions safeguard workers against:
o Unfair dismissal
o Victimization
o Exploitation
o Discrimination
 They ensure compliance with labor laws and employment contracts.

3. Representation in Disputes
 Trade unions represent their members in:
o Disciplinary proceedings
o Grievance redressal
o Labour court and tribunal cases
o Conciliation and arbitration processes
Legal representation by unions is vital for individual workmen, especially in disputes
involving dismissal or retrenchment.

4. Promoting Welfare Activities

 Many trade unions use their funds to provide:
o Educational programs
o Medical aid
o Financial help during unemployment or emergencies
o Housing and recreational facilities
This enhances morale and unity among workers.

5. Legal Assistance

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  Trade unions often arrange legal advice and assistance for members in matters
related to:
o Employment disputes
o Compensation claims
o Workplace accidents
o Pension and provident fund issues

6. Social and Educational Development

 Trade unions promote the overall development of workers by:
o Organizing training programs
o Conducting awareness campaigns
o Encouraging literacy and skill development
They contribute to human resource improvement in industries.

7. Lobbying and Policy Advocacy

 Trade unions play a role in shaping labour legislation by:
o Making representations to the government
o Participating in public consultations
o Collaborating with political parties and labor organizations
For example, many social security laws were introduced due to trade union pressure.

8. Maintenance of Industrial Peace

 By negotiating disputes and avoiding strikes unless necessary, trade unions help
maintain industrial harmony.
 They act as a bridge between the employer and employees.

G. Political Activities (Section 16)

 Trade unions may establish separate political funds to:
o Support labor-friendly candidates
o Conduct political education
o Campaign for legislative reforms
However, contribution to political funds is voluntary, and workers cannot be forced to
participate.

10. Encouraging Worker Solidarity

 Trade unions foster unity among workers through:
o Celebrating labour days
o Conducting meetings and seminars

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 o Promoting mutual cooperation and
support This solidarity is essential for achieving collective
goals.

Objects for Use of General Funds (Section 15)

Trade unions may use their general funds for:
 Salaries and allowances of union officers
 Administration expenses
 Legal proceedings on behalf of members
 Compensation for lockouts or legal disputes
 Educational and cultural activities
 Medical and funeral expenses for members
 Support for trade union conferences and federation

Judicial Recognition of Functions

1. All India Bank Employees' Association v. National Industrial Tribunal (AIR 1G62
SC 171)
Held: The right to form and join trade unions is a fundamental right, but collective
bargaining and strike are statutory rights, not fundamental ones.

2. Rohtas Industries Ltd. v. Brijnandan Pandey (AIR 1G66 SC 1440)

Held: Trade unions have the right to represent their members in legal and industrial
proceedings.

3. Tata Engineering and Locomotive Co. v. State of Bihar (AIR 1G8G SC 1310)
Held: Trade unions are important for maintaining industrial peace and productivity
through their representational functions.

Challenges Faced by Trade Unions in Fulfilling Their Functions

 Political interference
 Multiplicity of unions in the same industry
 Low membership in private sectors
 Lack of internal democracy
 Changing nature of employment (e.g., gig economy, contract workers)

Reforms Under Industrial Relations Code, 2020

 Recognizes the “Negotiating Union” or “Negotiating Council” to represent
workers.
 Aims to strengthen the collective bargaining power of trade unions.

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  Promotes transparency, registration, and democratic functioning.

Conclusion
A registered trade union is a powerful instrument for protecting the rights and interests of
workers. It performs a wide range of functions, from collective bargaining and
dispute resolution to social welfare and legal aid. By organizing and educating
workers, trade unions contribute not only to better working conditions but also to the
overall progress of industrial relations and national development.
While challenges remain, ongoing reforms and proactive participation can further enhance the
effectiveness of trade unions in India.

26) Critically examine the law relating to reference under the ID Act 1G47.
Introduction
The Industrial Disputes Act, 1G47 (ID Act) is the principal legislation that provides
mechanisms for the investigation and settlement of industrial disputes in India. One of
the most crucial provisions under the Act is the reference of industrial disputes to
adjudicatory authorities such as Labour Courts, Industrial Tribunals, and National
Tribunals.
The reference mechanism is governed by Section 10 of the Act. It empowers the
appropriate government to refer disputes to adjudication based on certain conditions.
While the intention is to ensure industrial harmony and prevent unnecessary litigation, the
discretionary nature of the power has often led to criticism and judicial scrutiny.

Legal Provision: Section 10 of the ID Act

Section 10(1): Reference of Disputes
The appropriate government may, at any time, by order in writing:
 Refer any existing or apprehended industrial dispute to:
o A Board of Conciliation,
o A Court of Inquiry,
o A Labour Court,
o An Industrial Tribunal, or
o A National Tribunal, for adjudication or inquiry, as the case may be.
Section 10(2): Joint Application
If both employer and workmen jointly apply for adjudication of a dispute, the government
shall refer the dispute.
Section 10(3): Pending Proceedings
While proceedings are pending before any authority, no strike or lockout shall be
permitted.

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Section 10(4): Specific Points
The authority must confine its adjudication to the points referred and those incidental to
it.

Types of Disputes that Can Be Referred

 Existing disputes: Already arisen between the parties.
 Apprehended disputes: Likely to arise soon, based on circumstances.
The reference can be made:
 Suo motu by the government, or
 On application by employer, union, or individual (in cases under Section 2A).

Authorities to Whom Disputes Can Be

Referred Authority Purpose
Board of Conciliation Promote settlement of dispute
Labour Court Adjudicate matters under Second Schedule
Industrial Tribunal Adjudicate matters under Second and Third Schedules
National Tribunal Adjudicate inter-state or nationally important disputes

Critical Examination of the Law of Reference

While Section 10 provides a clear structure, several issues and criticisms have been
raised regarding the procedure and government discretion.

1. Discretion of the Appropriate Government

One of the most debated aspects of Section 10 is the discretionary power of the
government to refer or not refer a dispute.
Case Law:
State of Bombay v. K.P. Krishnan (AIR 13C0 SC 1223)
Held: The government has the discretion to decide whether a dispute should be referred,
and the courts cannot generally interfere with that discretion.
Criticism: This allows political bias or bureaucratic delay, affecting the workers’ access
to justice.

2. No Time Frame for Reference

 The Act does not prescribe a time limit within which the government must decide
on a reference.
 This leads to delays, which can cause:
o Loss of evidence,

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 o Dissipation of grievances,
o Worker dissatisfaction.
Ramakrishna Iron Foundry v. Labour Court (137C)
The Supreme Court emphasized that speedy adjudication is essential to fulfill the
objectives of the Act.

3. Limited Role of Workman

In the absence of joint application under Section 10(2), even if a dispute affects a workman
seriously, the government can refuse to refer it.
Sunderambal v. Government of Goa (1384)
The Supreme Court held that no workman has a right to demand reference as a matter
of course.
Issue: It limits the access to adjudication, especially when employers dominate the
workplace dynamics.

4. Reference under Section 2A (Individual Dispute)

 Section 2A, added in 1965, treats termination-related individual disputes as
deemed industrial disputes.
 However, even under 2A, the workman still requires the government's approval
for reference.
Problem: The individual cannot directly approach the Labour Court without the government's
nod.

5. No Appeal Mechanism Against Refusal to Refer

 If the government refuses to refer a dispute, there is no statutory appeal process.
 The only remedy is a writ petition under Article 226 to the High
Court. This results in additional litigation burden and delay for the aggrieved
party.

6. Political Influence and Bias

 There have been instances where governments refused references due to political
pressure from powerful employers or unions.
 This undermines the objective and neutral application of Section 10.

7. Fragmented Powers Among Authorities

 Labour Courts can adjudicate only Second Schedule matters.
 Industrial Tribunals deal with both Second and Third Schedule matters.
 National Tribunals handle only special cases.
This often causes confusion, duplication, and jurisdictional challenges.

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Reform Measures and Judicial Remedies
To address these concerns, courts have laid down guidelines:
Telco Convoy Drivers Mazdoor Sangh v. State of Bihar (1383)
Held: The government must apply its mind and give reasons if it refuses to refer a dispute.

Bombay Union of Journalists v. The Hindu (13C1)

Held: The government cannot reject a reference arbitrarily. There must be material
evidence to support such a refusal.
These judgments promote transparency and accountability in the reference process.

Industrial Relations Code, 2020 – A Step Toward Reform

The new Industrial Relations Code, 2020, which aims to consolidate and simplify labor
laws, proposes:
 Direct access to tribunals in certain cases without requiring reference by
government.
 Fixed timelines for dispute resolution.
 Reduction in dependency on government discretion for reference.
This reform is expected to improve access to justice and reduce
delays.

Conclusion
The process of reference under the Industrial Disputes Act, 1G47, plays a crucial role in
the adjudication of industrial disputes. However, the broad discretion of the government,
absence of time limits, and lack of an appeal mechanism have made the process prone
to delays and inefficiencies.
Judicial intervention has improved the fairness of the reference process, but more
systematic and legislative reforms are needed. The Industrial Relations Code, 2020, if
implemented effectively, could modernize and streamline the process, thereby upholding
the objectives of fairness, speed, and accessibility in industrial justice.

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