18059386 Indian Industrial Law 4 Major Laws Industrial Dispute Act Payment Of Wages Act Minimum Wages Act Gratuity Act[1]

Presented By: SundarGanesh Kumar, S.Y.B.M.S. Sem-III, Roll No.: 44 Vivek College Of Commerce Industrial Law

The Industrial Dispute Act, 1947 The Payment Of Wages Act, 1936 The Minimum Wages Act, 1948 The Payment Of Gratuity Act, 1972 Major Industrial Laws

Important Definitions Authorities under the Industrial Disputes Act Award & Settlement Strikes Lock-outs Lay Offs Retrenchments Closure Case Law Studies The Industrial Disputes Act, 1947

Employer [S.2(g)]: means-In relation to an industry carried on by or under the authority of any department of the Central Government or a State Government – the authority prescribed in this behalf; In relation to an industry carried on by or on behalf of a local authority – the Chief Executive Officer of that authority. Important Definitions

Industrial Dispute [S.2(k)]: means any dispute or difference between- Employers and Employers, or Employers and Workmen, or Workmen and Workmen, which is connected with- The employment or non-employment, or The terms of employment, or The conditions of labour. of any person related directly or indirectly to the industry. Important Definitions

[object Object],Manual Skilled Unskilled Technical Operational Clerical Supervisory work for hire or reward, whether the terms of employment be expressed or implied, and in relation to an Industrial Dispute, includes any such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute or whose dismissal, discharge or retrenchment has led Important Definitions

[object Object],Subject to the Air Force Act, 1950, the Army Act, 1950, or the Navy Act, 1957, or Employed in the police service or as an officer or other employee of a prison, or Employed mainly in a managerial or administrative capacity, or Employed in a supervisory capacity, and draws wages exceeding Rs.1600 per mensem, or Exercises functions mainly of managerial nature, by the duties attached to the office or by the reason of power vested in him. Important Definitions

[object Object],Any railway service or any transport service for the carriage of passengers or goods by air; Any service in, or in connection with the working of, any major port or dock; Any section of an industrial establishment, on the working of which the safety of the establishment or the workmen employed therein depends; Any postal, telegraph or telephone service; Any industry which supplies power, light or water to the public; Any system of public conservancy or sanitation; Any industry specified in the first schedule. Important Definitions

The Act has set up machinery to deal with the Industrial Disputes. These authorities are meant for dealing with the Industrial Disputes. Even though the name authority is used, it does not mean each and every authority has power to make a binding decision. The Authorities are: Works Committee (Section 3) Conciliation Officer (Section 4,11 & 12) Board Of Conciliation (Section 11 & 13) Court Of Inquiry (Section 6,10,11 &14) Labour Court (Section 7,11 &15) Industrial Tribunal (Section 7A,11 & 15) National Tribunal (Section 7b,11 & 15) Authorities under the Act

Settlement (Section 18-21): means a settlement arrived at in the course of conciliation proceedings and includes a written agreement between the employer and workman arrived at, otherwise than in the course of conciliation proceedings where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof has been sent to an officer authorized in this behalf by the Appropriate Government and the Conciliation Officer.Award & Settlement

[object Object],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 accept employment. Strike is a weapon in the hands of the workmen, in the process of collective bargaining. Strike tests the economic bargaining power of each side and forces each of them to face the need it has for others contribution. The economic pressure of the strike is the catalyst which makes the agreement possible. Collectively bargaining is a process of reaching agreement and strikes are an integral and frequently necessary part of that process. Strikes

Section 22 says “In case an industry is a public utility service, no person employed in it shall g o on strike in breach of contract- Without giving to the employer notice of a strike, provided within 6 weeks before striking, Within 14 days of giving such notice, or Before the expiry of the date of strike specified in any such notice; or During the pendency of any conciliation proceedings before a conciliation offices and 7 days after the completion of these proceedings” Strikes: in Public Utility Services

The copy of this notice is to be submitted to the conciliation officer, or such authority as may be prescribed by the Appropriate Government.

The employer, on receipt of notice of strike from employees, shall report within 5 days to-Appropriate Government Authority prescribed by the Appropriate Government- which states the number of notices received on that day. ,[object Object]

A fresh notice is necessary when the date of strike specified in the original notice expires.Strikes: in Public Utility Services

A new notice is necessary, when the conciliation proceedings fail, which have started after the notice. The object of giving the notice is to allow the other party to come to terms, or to approach the authorities to intervene and stop the strike, if possible. During the period of notice, the parties can respond to each other. Illegality attaches only to that period which remains to expire before the commencement of action. Strikes: in Public Utility Services

No workman who is employed in any Industrial Establishment shall go on strike in the following circumstances:During the pendency of conciliation proceedings before a Board and 7 days after the completion of these proceedings; During the pendency of proceedings before a Labour Court, Industrial Tribunal or National Tribunal, and 2 months after the completion of these proceedings; During the pendency of arbitration proceedings before an arbitrator and 2 months after the completion of these proceedings; where notification has been issued under S 10A(3A) During any period in which a settlement or award is in operation in respect of any of the matters covered by the settlement or award. Strikes: General Prohibition

[object Object],The temporary closing down of a place of employment, The suspension of work, or The refusal by an employer to continue to employ any number of persons employed by him. ,[object Object]

The notice of lock-0ut shall be given in prescribed manner.

On event of employer giving notice of lock-out on any day to any person employed by him, he shall report the number of notices given to the Appropriate Government, within 5 days of giving such a notice.Lock-outs

The provisions for general prohibition of lock-outs are dictated under Section 23, same as the provisions of Strikes.

The notice of lock-out is not necessary when a lock-out is already existent in case of a public utility service.

However, the employer shall send intimation of lock-out to the authority specified by the Appropriate Government, on the day of declaration of lockout itself.Prohibition of Lock-outs

However, the factor of justification of reasons leading to the Act of going on strike, also decide the payment or non-payment of wages to the workmen.

If a strike is not justified, but legal; or if a strike is illegal, but duly justified, the workmen are entitled to receive wages for the period of the strike.

A lock-out in violation of the statutory requirements is illegal and unjustified and workers are entitled to wages for the lock-out period.

For a legal lock-out, no wages are payable to the workmen.Strikes & Lockouts: Wages & Justification

Penalty for illegal strike (S.26): Any workman who commences, continues or acts in furtherance of an illegal strike shall be punishable with imprisonment up to 1 month, or fine up to Rs.50 or both.

Penalty for instigation (S.27): Any person who instigates or incites other to take part in a strike or lock-out which is illegal shall be punishable with imprisonment up to 6 months or with fine up to Rs.1000 or both.

Penalty for giving financial aid to illegal strikes and lock-outs (S.28): Punishable with imprisonment up to 6 months or fine up to Rs.1000 or both.Strikes & Lock-outs: Penalties

[object Object],The failure Refusal, or Inability of an employer on account of shortage of: Coal, Power or raw materials, or The accumulation of stocks, or The break-down of machinery, or Natural calamity, or For any other connected reason to give employment; to a workman whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched. Lay-Offs

The duration of a Lay-Off should not be longer than that of the current emergency.

The employer – workman relationship does not come to an end, but is suspended during the period of emergency.

The workman’s name should be essentially present on the muster rolls of the industry for claiming relief.

The workman should not have been retrenched.

If work is given by the employer on a different shift, it would be considered as a half-day lay-off.

If employment is not given within two hours, it would be considered as having laid-off that whole day.Lay-Offs

[object Object],Status of a workman, i.e., badli, casual, or permanent Type of service, i.e., continuous or seasonal Number of workmen in the Industrial Establishment ,[object Object],Where the number of workmen is less than 50 Where the number of workmen is 50 – 100 Where the number of workmen is more than 100. Lay-Offs: Rules and Provisions

[object Object],Nil compensation for IEs with less than 50 workmen. Compensation at the rate of 50% of the total basic pay and dearness allowance to a time limit of 45 days for IEs with 50 – 100 workmen. Compensation at the rate of 50% of the total basic pay and dearness allowance to a time limit of 45 days for IEs with more than 100 workmen. ,[object Object],Lay-Offs: Compensation

Section 25M states that an employer of an Industrial Establishment employing 100 or more workmen on average per day in the preceding 12 months is required to obtain previous permission of specified authority appointed for the purpose by the Appropriate Government, by a notification by the official Gazette.

Section 25Q says any employer who contravenes the provision of Section 25M shall be punishable with imprisonment up to one month, or fine up to Rs.1000 or both.Lay Offs: Penalties

[object Object],Voluntary retirement of workman, or Retirement of the workman on reaching the age of superannuation, if his contract contains a stipulation in this behalf, or Termination of the service of a workman as a result of non-renewal of the contract of employment, or Termination of employment of a workman on the ground of continued ill health. ,[object Object],Retrenchment

It is not necessary that removal must be only when the establishment is in loss.

The Supreme Court has interpreted the term retrenchment in stricter sense of it, that is to say, it means termination of service for any reason whatsoever.

Retrenchment connotes in its ordinary acceptation that the business itself is being continued but that a portion of the staff of labour force is discharged a surplusage.

Where a worker suffers an accident during the course of employment making him unfit for the job, termination on this ground is illegal.

Where seasonal worker ceases to do work due to closure of season, it is not retrenchment.Retrenchment

[object Object],Where number of workmen employed is less than 100, Where number of workmen employed is more than 100. ,[object Object],The workman is given one month’s notice in writing indicating the reasons for retrenchment and the period of notice has expired, or In case one month’s notice is not given, the workman is paid wages for the period of the notice, in lieu of the notice period. Retrenchment: Provisions & Rules

The workman is paid at the time of retrenchment, compensation which shall be equal to 15 days average pay for every completed year of continuous service or any part thereof in excess of six months, and Notice in the prescribed manner is served on the Appropriate Government. ,[object Object]

The LIFO (Last In First Out) Principle is mentioned in the Section 25G, which states that the workman who is employed last will be retrenched first.Retrenchment: Provisions & Rules

Section 25H gives a statutory right of reemployment to the retrenched workmen. If the employer wants to take the workmen in future, the retrenched workman has a right of preference over the others. This provides for preferential reemployment of the retrenched workmen. The employer should take precaution that he pays the retrenchment compensation at the time of retrenchment. In case the workman denies to accept compensation for the same, the employer should have sufficient proof that retrenchment compensation was offered to the workman, and clearly denied by him. Retrenchment: Provisions & Rules

This establishment should not be of a seasonal character or in which work is performed only intermittently.

Section 25N specifies that no workman who is in continuous service for not less that one year under an employer shall be retrenched until-The workman has been given three months notice in writing indicating the reasons for retrenchment and the notice period has expired or the workman has been paid in lieu of such notice, wages for the period of notice. Notice in the prescribed manner has been given to the Appropriate Government and permission is granted. Retrenchment: Provisions & Rules

Workman has been paid compensation at the time of retrenchment which shall be equal to 15 days average pay for every completed year of continuous service or any part thereof in excess of six months. Inquiry is made by the Appropriate Government or specified authority and granting or refusing permission for the reasons to be recorded in writing. In case retrenchment is effected without making an application or where the permission for retrenchment is refused retrenchment shall be deemed to be illegal from the date on which it is effected and the workman shall be entitled to all the benefits that are available to him under the law. ,[object Object],Retrenchment: Provisions, Penalties

The provisions about closure are to be understood with reference to-Type of service:- i.e., continuous service or not (same as layoff) Number of workmen employed;- No. of workmen less than 50 No. of workmen 50 – 100 No. of workmen 100 or more. ,[object Object],Closure: Definition & Provisions

If the undertaking is closed down on account of unavoidable circumstances beyond the control of the employer, the compensation payable to the workman shall not exceed his average pay for three months.

If an undertaking is set up for the construction off buildings, bridges, roads, canals, dams, or other construction work and it is closed down on account of completion of the work within 2 years from the date on which the undertaking is set up, then no workman employed by the undertaking shall be entitled to any compensation.

In case the construction work takes more that 2 years for completion after it is set up, then the workman will be entitled to both notice and compensation as per the rules of retrenchment.Closure: Rules & Provisions

[object Object],The employer who intends to close down his undertaking shall have to serve at least sixty days notice in the prescribed manner on the Appropriate Government before the date on which the intended closure is to become effective. The reasons for the same have to be clearly stated. No notice is required when:- The number of workmen employed is less than 50, or An undertaking is set up for the construction of buildings, bridges, canals, roads, dams or for other such projects. The Appropriate Government is satisfied than; owing to exceptional circumstances like accident in the undertaking, death of employer or similar reason, no notice is required. Closure: Rules & Provisions

The compensation payable is the same as if applicable to an undertaking employing less than 50 workmen. The notice to be given is only information to the Appropriate Government. The notice does not mean that any previous sanction of the Appropriate Government is required for the closure of an undertaking. ,[object Object]

Copy of this application should also be served on the representatives of the workmen in the prescribed manner.

No such application to the Appropriate Government is required when the construction is the case of canals, bridges, buildings, etc.

Workmen shall be entitled to compensation in case of a legal closure, at the rate of 15 days wages for every completed year of continuous service.Closure: Rules & Provisions

Penalty for closure [Section 25R]:- Any employer who closes down an undertaking without complying with the provisions of Section 25-) shall be punishable with imprisonment up to six months or fine up to Rs.5000 or both. Penalty for closure without notice [Section 30A]:- An employer who closes down any undertaking without complying with the provisions of Section 25FFA shall be punishable with imprisonment up to six months or fine up to Rs.5000 or both. Any employer who contravenes an order refusing to grant permission to close down an undertaking under Section 25-O(2) shall be punishable with imprisonment up to one year, or fine up to Rs. 5000 or both. Where the contravention is continuing even then, with a further fine up to Rs.2000 for every day during which the contravention after conviction continues can be imposed. Closure: Penalties

Syndicate Bank V/s Umesh Nayak HELD:- The Supreme Court has observed that strike or lock-out is to be resorted to, only in unavoidable circumstances and to compel the other party to see the justness of the demands and is not intended to cause nuisance or physical danger to their employers or others. Hindustan Cables V/s Labour Court HELD:- Resorting to strikes or lock-outs without negotiations or conciliations is unjustified. Case Law Studies

Central India Spinning, Weaving & Manufacturing Co. Ltd., V/s State Industrial Court HELD:- The Bombay High Court said the key words “the failure, refusal, or inability of an employer” in the definition of lay-off make it clear that the unemployment has to be on account of a cause which is independent of any action or inaction on part of the workmen themselves. Morinda Co-op. Sugar Mills V/s Ramakrishnan HELD:- Where seasonal worker ceases to do work due to closure of the season it is not retrenchment. Case Law Studies

Introduction Applicability Important Definitions Rules relating to Payment of Wages Compensation & Penalties Case Law Studies The Payment Of Wages Act, 1936

Preamble – To regulate the proper and timely payment of wages to different classes of workers. Important features of the Act- Remedies & compensations relating to: ,[object Object]

Non-payment of wages Provisions in the Act: ,[object Object]

Reasonable rates of recoveryIntroduction

The Act is applicable to any employee in a factory, employees of the railway industry, including those who are employed through a sub-contractor.

It is also applicable to employees working in any Industrial or Other Establishment, or any other Establishment stated under Sections [2(i)(a) to 2(i)(g)] of the Payment Of Wages Act.

The Act covers all those employees who draw a monthly salary of less than Rs.6500Applicability

[object Object],Railways Air transport services Mines and oil fields The State Government is the Appropriate Government in all other cases. ,[object Object],Tramway service, or motor transport service for passengers or goods or both by hire or for reward; Dock, wharf, or jetty,; Inland vessel, mechanically propelled; Mine, quarry or oil field; Plantation; Important Definitions

Workshop, or other establishment, where articles are Produced, Adapted, or Manufactured, with a view to their use, transport, or sale. ,[object Object],Important Definitions

Any remuneration payable under any award or settlement between the parties or order of court; Any remuneration to which the person is employed is entitled in respect of overtime work, or holidays or leave period; Any additional remuneration payable (bonus); Any sum paid on the event of termination of employment; Any sum to which the a person is entitled under any scheme which is framed under a law currently in force. But, it does not include- Value of house accommodation, medical and other facilities, amenities and travelling, medical and other allowances; Contribution paid by the employer to any pension or provident fund; Any special expenses and gratuity paid at termination of employment. Important Definitions

Every employer is responsible for the payment of wages but this responsibility is also cast on other persons; they are:In case of factories, the manager of the factory In case of an Industrial Establishment, the person in the post having control and supervision in the establishment In case of railways, the person nominated for the payment of wages In case of a contractor, the person designated by the contractor In any other case, the person designated by the employer as a person responsible for complying with the provisions of the Act. Rules relating to Payment of Wages

18059386 Indian Industrial Law 4 Major Laws Industrial Dispute Act Payment Of Wages Act Minimum Wages Act Gratuity Act[1]

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