Laborlawsindustrialrelationsindustrialdisputes

1. INDUSTRIAL RELATIONS, LABOR
LAWS & INDUSTRIAL
DISPUTES
ACT,
1947
PREPARED BY:

2. MS. PARAS R.
DHINGRA
EMAIL ID: DHINGRAPARAS21@GMAIL.COM

3. WHAT’S LABOUR LAWS?
 Labour law or employment law is the body of laws, regulations,
administrative rulings, and precedents which address the legal rights of, and
restrictions on, labourers and their organizations.
I t deals with many aspects of relationship between trade unions, employers and
their employees.
 The final goal of Labour laws is to reduce the differences between the
Employer and Employee which leads in Industrial Growth and Growth of a
Nation.

4. OVERVIEW OF LABOUR LAWS IN
INDIA
 Under the Constitution of India, Labour is a subject in the Concurrent
List where both the Central and State Governments are competent to
enact legislation.
 As per the Constitution of India, matters in labour law contained in
Concurrent List are:
• Entry No. 22: Trade Unions, industrialists and labour disputes.
• Entry No. 23: Social Security and insurance, employment and unemployment
• Entry No. 24: Welfare of labour

5.  Subjects restricted to Union List are:
• Entry No. 55: Regulation of labour and safety in mines and oil fields.
• Entry No. 61: Industrial disputes concerning Union employees.
• Entry No. 65: Union agencies and institutions for Vocational training.

6. ACTS WHICH GOVERN THE LABOUR LAWS
 Laws related to Industrial Relations:
1. The Trade Unions Act, 1926
2. The Industrial Employment (Standing Orders) Act, 1946
3. The Industrial Disputes Act, 1947.
 Laws related to Equality and Empowerment of Women:
1. The Maternity Benefit Act, 1961
2. The Equal Remuneration Act, 1976.

7.  Laws related to Wages:
1. Workmen’s Compensation Act, 1923
2. The Payment of Wages Act, 1948
3. The Working Journalist (Fixation of Rates of Wages) Act,
1958
4. The Payment of Bonus Act, 1965.
 Laws related to Working Conditions:
1. The Factories Act, 1945
2. The Contract Labour (Regulation & Abolition) Act, 1970
3. Shops and Establishment Act
4. Indian Boilers Act, 1923
5. The Dangerous Machines (Regulations) Act, 1983.

8.  Laws related to Social Security:
1. The Employees’ State Insurance Act, 1948
2. The Employees’ Provident Fund & Miscellaneous Provisions Act,
1952
3. The Payment of Gratuity Act, 1972
4. The Unorganized Workers’ Social Security Act, 2008
5. Employers’ Liability Act, 1938
6. The Children (Pledging of Labour) Act, 1938
7. The Child Labour (Prohibition and Regulation) Act, 1986
8. The Bonded Labour System (Abolition) Act, 1976
9. The Employment of Manual Scavengers and Construction of Dry Latrines
Prohibition Act, 1993.

9. AMENDMENTS TO LABOUR LAWS:
 Amendment made in Payment of Wages Act, 1936 enhancing ceiling of workers
from Rs.1,600/- to Rs.6,500/- per month and subsequently to Rs.10,000/- per
month
 Amendment made Payment of Bonus Act, 1965, wherein the calculation
ceiling and eligibility limit under the Act has been enhanced from Rs.2,500/-
to Rs.3,500/- and from Rs.3,500/- to Rs.10,000/- per month respectively.
 He Apprentices Act, 1961 has been amended to provide reservation
for other backward classes. The Maternity Benefit Act, 1961 has
been amended to enhance the medical bonus from Rs.250/-to
Rs.1000/- and also empowering the Central Government to further
increase it to maximum of Rs.20,000/-through Gazette Notification.

10.  The Workmen’s Compensation Act has been amended to make it
gender neutral and it is now called “the Employees’ Compensation
Act, 1923. Besides this, the Compensation in case of death,
disablement and funeral expense paid under the Act have also been
enhanced. The Plantation Labour Act, 1951 has been amended to
provide safety and occupational health care to plantation workers.
 Employees’ State Insurance Act, 1948 has been amended to improve
the quality of delivery of benefits under the scheme and also to enable
ESI infrastructure to be used to provide health care to workers of the
unorganized sector.

11.  Industrial Disputes Act, 1947 has been amended to amplify the term
“appropriate Government” defined under section 2(a) of the Act.
The wage ceiling for coverage under the Act has been enhanced
from Rs.1600/- to Rs.10,000/- per month to cover workmen working
in supervising capacity. The amended provisions also provide direct
access for the workman to the Labour Court or Tribunal.

12. WHAT IS INDUSTRIAL RELATIONS?
 IR is a relationship between management and
employees or among employees and their organizations,
that characteristics and grow out of employment.
 IR may be defined as the complex of inter-relations among
workers, managers and government.

13. CHARACTERISTICS OF IR:
 An outcome of relationship in industry.
 It create rules and regulations to maintain piece and harmony.
 Important parts of IR are employees and their organization,
employer and their association and government.
 It has a role of management, union and government.

14. OBJECTIVE OF IR:
 To promote and develop labor management relation.
 To regulate the production by minimizing industrial conflicts
 To provide opportunity to workers to involve in decision making
process with management.
 To encourage and develop trade unions in order to improve the
workers' strength.

15. ROLE OF TRADE UNIONS IN IR:
 Achieving higher wages
 To offer responsive co-operation in improving level of production,
discipline etc.
 To promote individual and collective welfare
 To improve working and living conditions
 To enlarge the opportunities of promotion and training.

16. ROLE OF EMPLOYER’S ORGANISATION:
 Promote and protect of the interest of employers engaged in
Industry, Trade and Commerce.
 Advice offering
 Bridge between Union Government
 Train and develop staff members of concern members of
Associations

17. INDUSTRIAL RELATIONS MACHINERY IN INDIA:
Preventive
Machinery
 Trade Union
 Joint Consultation
 Work Committee
 Joint Management
Council
 Standing Orders
 Grievance Procedure
 Code of Discipline
Settlement Machinery
a) Conciliation
1. Conciliation Officer
2. Board of Conciliation
3. Court of Inquiry
b) Voluntary arbitration
c) Compulsory Arbitration
1. Labor Court
2. Industrial Tribunal
3. National Tribunal

18. AMENDMENTS IN INDUSTRIAL RELATIONS:
 The Industrial Relations (Amendment) Act, 2012 sets stricter conditions for
the establishment and variation of
Employment Regulation Orders (EROs) and Registered
Employment Agreements (REAs).
 Both EROs and REAs set out legally binding minimum pay and
conditions for workers in different sectors of the economy and encompass
all workers in these sectors. An ERO is set by a Joint Labour Council
(JLC) made up of representatives of workers and employers, while an REA
is an agreement by workers and employers which is registered at the Labour
Court. Both ERO’s and REA’s are vetted by the Labour Court and
ultimately the
Minister, before being legally enforceable.

19. What are the main changes in the new
legislation on EROs?
 Basically, it sets out the principles and policies to be set by
the JLC when constructing an ERO; it gives guidance as to
what can be laid down with regard to pay and other conditions
in the ERO and sets out a mechanism for the Labour Court to
sort out disagreements at the JLC.
 It also sets out a mechanism whereby an employer may seek a
temporary derogation or exemption from the obligation to abide
by the terms of an ERO.

20.  The Labour Court will be allowed conduct a five year review
of all ERO’s/JLCs and may amend, merge or abolish them
according to criteria laid down. Employees or trade unions can
now go to a Rights Commissioner with a complaint within six
months with an appeal to the Labour Court within six weeks.
 Previous contraventions were processed by Labour
Inspectors. Any compensation awarded will be given priority
in the distribution of assets in the case of insolvent companies.

21. What does a JLC have to take into account now before
proposing an ERO?
 The JLC for a sector must now take cognizance of the
following;
 Legitimate financial and commercial interests of the employers
 Efficient, economical and sustainable work practices
 Agreeing and maintaining fair and sustainable minimum rates of
remuneration

22.  Maintaining harmonious industrial relations
 The levels of employment and unemployment in the
sector
 The general level of wages in comparable sectors
 The current National Minimum Wage
 Any National Wage Agreement in force

23. What powers does the JLC have now for setting rates and
conditions?
 The JLC can:
 Fix minimum hourly rates of remuneration but not more than 2
hourly rates based on length of service in the sector or
enterprise concerned
 Set statutory minimum conditions of employment
 Provide regulations for under 18’s but the National
Minimum Wage must apply

24.  The JLC cannot address:
 Time off in lieu of public holidays
 Compensation under the Organization of Working Act for
working on a Sunday
 Payments in lieu of notice
 Payments referable to redundancy

25. THE INDUSTRIAL DISPUTE ACT, 1947.
 DEFINITION:
The industrial dispute means any dispute or difference between:-
(i) Employers and employers
(ii) Employers and Workmen or
(iii) Workmen and workmen, which is connected with
Industrial disputes may be said to be disagreement or controversy
between management and labor with respect to wages, working
conditions, other employment matters or union recognition.

26. TYPES OF INDUSTRIAL DISPUTES
 Interest disputes: arising out of deadlocks in negotiation for collective
bargaining.
 Grievance disputes: may pertain to discipline, wages, working time,
promotion, rights of supervisors etc. also some times called
interpretation disputes.
 Unfair labor practices: those arising out of right to organize, acts of
violence, failure to implement an award, discriminatory treatment,
illegal strikes and lockouts.
 Recognition disputes: over the rights of a TU to represent class or
category of workers.

27. PROHIBITION OF STRIKES AND LOCK OUTS
 According to SEC 22 (1) No person employed with a
public utility service shall go on strike in breach of
contract – Without giving the employer notice of strike,
within six weeks before the strike. Before the expiry of
date of strike specified in such notice. According to SEC
23; No employee of any industrial establishment shall go
on strike during the period when proceedings in any
disputes case is going on or when final judgment is
awaited .

28. INDUSTRIAL DISPUTE RESOLUTION
MECHANISM:
Industrial
Undertaking Works Committee
Conciliation officer
CG/State Govt.
Board Tribunal
Labour court 27
Arbitral Tribunal AWARD

29. SETTLEMENT WITHOUT STATE
INTERVENTION:
 There are two ways in which the basic parties to an industrial
dispute- the employer and the employees- can settle their
disputes.
 Collective bargaining
 Voluntary arbitration

30. SETTLEMENT UNDER THE INFLUENCE
OF
THE STATE:
Compulsory establishment of bipartite committees.
Establishment of compulsory collective bargaining.
Conciliation and mediation (voluntary and compulsory).
Compulsory investigation.
Compulsory arbitration or adjudication.

31. VOLUNTARY ARBRITATION
 It is commonly viewed as less expensive and faster than resolving a dispute in
court.
 An arbitrator may be a single person or a panel.
 Sometimes, however, the parties may agree to submit the dispute to an
arbitrator but at the same time, reserve their right to accept or reject the
award when it comes.

32. AMENDMENTS TO INDUSTRIAL
DISPUTES ACT, 1947:
1. In case of individual dispute of workman related
to discharge, dismissal, retrenchment or termination by any
means, now the workman has the right to approach labour court directly
without waiting for conciliation proceedings and Govt. reference.
But he has to wait for three months for this direct action from the date of
filling his application before conciliation officer if the Govt. is not able to
complete the reference process within three months.
Earlier there was no such direct option available to workman to approach labour
court.
(Except in some states like Karnataka where State govt. has provided
for direct approach to Labour court within 6 months of termination)

33. 2. Such workman in case of individual dispute has to file claim
within time limit period of three years. Earlier there was no such
limitation period prescribed under the ID Act.
3. Wage ceiling of supervisor has been enhanced from Rs.1600/- per
month to Rs. 10,000/- per month, which means now any person
working in any industry doing any manual, unskilled, skilled,
technical, operational, clerical or supervisory work drawing wages up
to Rs. 10000/- will be a workman. Earlier this limit was up to
Rs.1600/-By this amendment the coverage of workman has been
increased and more people are covered now under the Act.

34. 4. Definition of appropriate Govt. has been amplified. Now for the industry,
corporation, PSEs owned or controlled by the Central Govt., the
appropriate Govt. would be Central Govt.
5. In case of industry under the control of State Govt., appropriate Govt. would
be State Govt.
6. Earlier to amendment only judicial officers were eligible to become the Judges
(Presiding Officers) of labour court/ tribunal.
Now with this recent
amendment the Dy. Labour Commissioners/ Joint Labour
Commissioners with degree of Law & having 7 years of experience can also
become labour court/ tribunal judges.

35. 7. Every industry employing 20 or more workmen is now under legal
obligation to constitute and have a grievance redressal machinery in
place in the organization to resolve the workers dispute at the first
level. Earlier it was not legally essential. The related provisions
which were brought in the ID Act in 1984 were never enforced.
8. Now a provision has been made to execute the labour court/ tribunal
decision. Earlier there was no such provision in the Act and even
after decision of the labour court/ tribunal there was no machinery to
enforce its execution on the employer. Now the labour court/ tribunal
shall transmit its award to concerned civil court which shall execute
the award as if it is a decree passed by the court.