ALANGE’S LAW CLASSES, MAH 1 LABOUR LAW (MUMBAI)

ALANGE’S LAW CLASSES

MAHARASHTRA
MUMBAI UNIVERSITY

LABOUR LAW AND INDUSTRIAL RELATIONS - I

SYLLABUS
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THE TRADE UNIONS ACT, 1926
1.1 Evolution and growth of Trade Union in India.
1.2 International Labor Organization (ILO) – its influence in bringing changes in
the Constitution and national legislation.
1.3 Definition, Registration and Recognition.
1.4 Immunities in trade disputes: Criminal and Civil.
1.5 Collective Bargaining – Purpose and its types.
1.6 Collective Bargaining Process, Advantages and Disadvantages.
INDUSTRIAL DISPUTES ACT, 1947.
1. Industry – Conceptual Analysis.
2. Concept – Industrial Dispute, Workman etc.
3. Authorities under the Act.
4. Strike and Lockout.
5. Lay off, Retrenchment and Closure.
6. Award and Settlement.
MRTU & PULP, 1971
1. Concept – Industry, Labour Courts, Unfair Labour Practices etc.
2. Authorities within the Act.
3. Recognition of Union and its rights with obligations.
4. Illegal Strikes and Lockouts.
5. Unfair Labour Practices.
6. Power of Courts and Penalties.
FACTORIES ACT, 1948 AND APPRENTICES ACT, 1961
1. Concept: Factory, Occupier, Hazardous Process, Apprentices etc.
2. Provision relating to health, safety, and welfare of workers.
3. Provision relating to Hazardous Process and working conditions.
4. Penalties and Procedures.
5. Apprentices and their training with object and scope.
Authorities constituted and Penalties
ALANGE’S LAW CLASSES, MAH 2 LABOUR LAW (MUMBAI)
Chapter I
TRADE UNION’S ACT, 1926:-
1.1 Evolution and Growth of Trade Union in India:-
Meaning:-
According to Webs, trade Union is ‘a continuous association of wage earners
for the purpose of maintaining or improving the conditions of their working lives’
The Trade Union Act 1926 defines trade union as ‘ any combination whether
temporary or permanent, formed primarily refer the purpose of regulating the
relation between workmen and employers or between workmen and workmen, or
between employers and employers, of for imposing restrictive condition on the
conduct of any trade or business and includes any federation of two or more trade
unions “ Thus trade unions are voluntary organization of workers formed to promote
and protect the interest of workers through collective bargaining.
Development of Trade Union Movement:-
In 1920’ The All India Trade Union Congress (AITUC) was set up to represent
the interest of workers and also to co-ordinate the activities of all labor organization
in the country and of help the extension. Of movement.
The setting of AITUC gave great feel to the rapid formation of unions
throughout the country and in big and small industries.
After Independence, the Indian National Trade Union Congress (INTUC) was
started in 1947 and was controlled by the congress party.
The Hind Mazdoor Shabha (HMS) was started in 1948 by the Praja Socialist
Party.
The United trade union Congress (UTUC) was formed in 1949 by some
radicalists.
The Bhartiya Mazdoor Sangha (BMS) which is affiliated of Bhartiya Janata
Party has secured top position. In term of membership this followed by (INTUC)
followed by center of Indian Trade Union (CITU) affiliated to CPI (M) and next
HMS, AIT JC, UTUC and National federation of Independent Trade Union
(NFITU)
ALANGE’S LAW CLASSES, MAH 3 LABOUR LAW (MUMBAI)
The Rapid expansion Trade Union is due to following factors: -
1) Greater Consciousness among worker to organize themselves with a view to
improve their standard of living.
2) Efforts made by the control labor organization to expand the field organized
labor
3) Legislative measures passed by the central and state government to facilitate the
collective bargaining.

Trade Union Legislation: -

In 1926, the government passed the Indian Trade Union Act, All those trade
union which registered themselves under the act were given no of privileges and
legal recognition the registered Trade Union could not be prosecuted for declaring
strikes or nay damages which might occur in the course strike.
Trade Union would now be legally formed, condition were led down for their
registration. The registered union were to function under certain restrictions Eg.
Half the no of executive committee must be employed in factories covered by union,
the funds of union must not be used for political purpose, Audited statement of
accounts must be submitted annually.
Suggestion for strengthening the Trade Union Movement: -
1) The working classes must be educated and trained.
2) There must be working class leadership
3) There must be democratic spirit the trade union movement.
4) Sober and constrictive leadership in necessary.
5) One union for every industry is necessary.
6) Greater emphasis should be on beneficent activities.
7) The employers should co-operate in collective bargaining
8) There should be no exploitation by political parties.
9) Recognition of trade union by law is necessary.
10) Inter union rivalries should be removed.
11) There should be responsible working class towards their duties and rights
12) Training of trade union workers should be arranged.
ALANGE’S LAW CLASSES, MAH 4 LABOUR LAW (MUMBAI)
13) Improvement of financial condition of trade union is necessary.
14) Development of united format of labor is necessary etc.

1.2 INTERNATIONAL LABOUR ORGANIZATION (I.L.O.) and its

influence in bringing in the Constitution and National Legislation: -
ESTABLISHMENT –
The I.L.O. was established in 1919 as autonomous partner of the
League of Nations. It’s head office is established at Geneva. It has become
a specialized agency of united nations with effect from 14 th December 1946
through a special agreement. Its membership is open for all the states.
The necessity for collaborative action on the part of states to improve the
conditions of the Industrial Labour was per-received in 19 th century. The
Industrial revolution caused the emergence of feature of employers
exploiting the labour to utmost extent with a view to lower the cost of
production of goods and maximizing profits. So it was necessary to improve
the conditions of labour in all states and international co-operation was
necessary in this regard. Therefore I.L.O. was established.

AIM AND OBJECTIVES –

The main objectives of I.L.O. are –
1. Full employment to employees.
2. Rise in living standards of workers.
3. Right to organize into trade unions.
4. Right to collective bargaining.
5. Minimum wages.
6. Regulation of working hours and work during nights.
7. Abolition of child labour.
8. Securing equal wages for equal work.
9. Equal wages for women.
10. Social insurance like sickness benefit, disablement benefit and
unemployment insurance.
11. Social security to workers.
12. Proper arrangements of housing accommodations to workers.
13. Facilities of entertainment, amusement etc. to workers.
14. Safety of working conditions in factories.
15. Labour hygiene, sanitation in factories etc.
COMPOSITION –
There are three main organs of I.L.O. –
1. General Conference –
Each member state has to send four representatives. Out of these four
representative two belong to state government and one representative of
workers and one representative of employers. It is a tripartite body including
the representatives of government, workers and employers. Therefore the
ALANGE’S LAW CLASSES, MAH 5 LABOUR LAW (MUMBAI)
representative of same state express different opinions in the discussion and
voting.
The general conference takes the decision in the form of convention
and recommendation, which require the majority of 2/3 rd members present
and voting. A convention which is adopted is sent to all member countries
for ratification.
2. Governing Body –
It consist of 54 members. It is also a tripartite body and includes the
representatives of government, workers and employers. They are elected by
general conference out of 54 members, there are 10 permanent seats which
are reserved for 10 industrial developed states like U.S.A., Great Britain,
France, Russia, China etc. The governing body supervises the functions of
the I.L.O..
3. Secretariat –
The I.L.O. has its head office at Geneva and its branches all over the
world. The head of the I.L.O. is called secretariat. The Director General is
the chief executive officer of I.L.O. who is appointed by governing body.

WORKING OF I.L.O. –
The decisions of I.L.O. are in the form of conventions and
recommendations, combined together are called ‘International Labour Code’.
Each member state has obligation to implement the recommendations and
convention through its state legislature. However there is no obligation to
implement the recommendations of I.L.O. as they are recommendatory in
nature and not compulsory. The state may implement them with its own will
and pleasure.
The I.L.O. has contributed a great deal since its establishment to bring
about an improvement in the condition of labour, industrial and agriculture.
The right to organize into trade unions, right to collective bargaining etc have
received due attention of the I.L.O.
The following are chief functions of I.L.O. –
a) To raise the standards of workers through a code of international labour
standards.
b) To prevent unemployment with adequate employment inspection
arrangements.
c) To look after the benefit of social security of workers.
d) To encourage education and research in the field of labour and social
policies.
In short, I.L.O. strives to improve the living and working condition of
the workers through out the world. For this purpose, it tries to secure equal
opportunities for all human beings and provide condition for development of
workers in the world.
ALANGE’S LAW CLASSES, MAH 6 LABOUR LAW (MUMBAI)
INFLUENCE OF ILO IN INDIA
I.L.O. is very successful organization of united nations,
Intergovernmental institutions and specialized agencies. It has done a
commandable work to achieve ‘social justice’ to agricultural and industrial
worker of entire world. The tripartite representative system of I.L.O. has
made it more democratic and representative in the real sense of the term. All
the countries more or less implementing the conventions and
recommendations of ‘International Lobour Code’. Each member state is
under the obligation to submit conventions adopted by International Lobour
Conference. India adopted the conventions and recommendations of I.L.O.
and accordingly made several labour legislation and amended old legislation.
India introduced the aims and objectives of I.L.O. in the constitution of India
in Part IV i.e. directive principles of the state policy.
Influence of ILO In India A dedicated UN agency, the International Labour
Organisation (ILO), aims to enhance social justice and respectable labour conditions
around the world. It has significantly influenced India’s labour and employment
regulations since its formation. The following areas in India are significantly
impacted by the ILO:
India’s labour laws and regulations have been influenced by the ILO. India
has contributed to the development of the country’s labour laws as an ILO member
and ratifier of numerous ILO accords. These contracts deal with the freedom to
organise, collective bargaining, child labour, forced labour, non-discrimination,
workplace health and safety, and others. The ILO’s recommendations and technical
assistance have helped improve the labour laws and practises in India.
The ILO’s Decent Work Agenda, which prioritises the promotion of
opportunities for employment that is productive, provides fair compensation, offers
social assistance, and ensures rights at work, has had an impact on India’s labour
policy. India embraced the Decent Work Agenda as a guiding principle in its
National Employment Policy and implemented its principles into a number of
labour and social welfare projects in order to enhance working conditions, promote
job creation, and offer social protection for workers.
The ILO’s global campaign to end child labour has had a significant positive
impact in India, but it remains a major societal issue. The ILO has provided India
with technical help and guidance as it develops policies and activities aimed at
ending child labour and rehabilitating impacted [Link] has ratified the ILO’s
agreements and guidelines on the topic. The ILO has helped India establish
measures to combat child labour, including via education, social protection, and
programmes to eliminate poverty.
India has benefited from the ILO’s capacity-building initiatives and technical
assistance in a number of labour and employment-related fields, including
information systems for the labour market, labour inspection, social security,
occupational safety and health, and skill development. As a result, India’s
institutional capacity to effectively enforce labour laws and policies, improve
ALANGE’S LAW CLASSES, MAH 7 LABOUR LAW (MUMBAI)
working conditions, and promote opportunities for decent employment for its
workforce has been strengthened.
ILO’s advice, assistance, and advocacy in areas including labour standards
and laws, decent work, social dialogue, the abolition of child labour, and capacity
building have overall had a significant impact on India’s labour and employment
policies. India’s labour laws and practises have included its ideas and suggestions,
which has enhanced the working environment and social security for workers there.

1.3Registration, Recognition, Cancellation or Withdrawal of Registration,

Change of name, Office bearers, Amalgamations, Dissolution of Union,
Outside leadership, to trade Union
• Registration (Sec. 3 to 9):-
The growth of permanent and stable unions is encouraged by relying on the
device of registration. A registered union alone will be entitled to the various
benefits, protections and immunities under this Act. Hence, the sponsors of T.U.
even though not compelled, are tempted to register the same under the law.
registration entitles the union to represent the workers who are its members.
This Act does not make registration mandatory that every union or association must
be registered. The National Commission on labour recommends for compulsory
registration of T.U.
Provisions of Registration: -
1. Appointment of Registrars (Sec.3): -
The Appropriate Government shall appoint a person to be the registrar of T.U.’s for
each state.
2. Mode of Registration (Sec.4):-
Any 7 or more members of a T.U. may apply for registration of the T.U.
3. Application for registration (Sec.5):-
Every application shall be made to registrar with copy of rules and a statement of
following particulars: -
a) The names/occupations and address of members making application.
b) The names/ occupation addresses of place of work of members of T.U.
c) The name of T.U. and address of head office.
d) The titles, names, ages addresses and occupations of office bearers.
ALANGE’S LAW CLASSES, MAH 8 LABOUR LAW (MUMBAI)
4. Rules of T.U. (Sec. 6):-
The Rules of T.U. shall contain the following matters:-
a) The name of T.U.
b) The objects of T.U.
c) Purposes for which general fund shall be applicable.
d) Maintenance of list of members.
e) Admission of members.
f) Payment of minimum subscription.
g) Manner in which rules shall be amended, etc.
5. Power of call for further particular (Sec.7):-
The Registrar may call for further information for satisfying that application
complies with the provisions of this Act.
6. Registration (Sec.8):-
The Registrar on being satisfied that the T.U. has complied with all the
requirements of registration, shall register the T.U.
7. Certificate of Registration (Sec.9):-
The Registrar shall issue a certificate of registration in the prescribed form which
shall be conclusive evidence that T.U. has been duly registered.
• Recognition: -
T.U. Act, 1926 does not provide for compulsory recognition of T.U.’s Thus,
Recognition remains a matter of discretion of the employer.
The T.U. (Amendment) Act, 1947 even though declares for compulsory
recognition of T.U. was not carried into effect. The 1950 T.U. Bill designed to the
same purpose also lapsed.
The Recognition of T.U. is different from its registration, A. T.U. registered
under the Act is entitled to all the protection and rights specified by the Act even if
it is not recognized by the employer.
The Bombay Industrial Relations (BIR) Act, 1946. The M.P. and Rajasthan State
Acts provide for compulsory recognition.
Considering the advantages of compulsory statutory recognition, the National
Commission on Labour Feels it desirable to make union recognition compulsory
ALANGE’S LAW CLASSES, MAH 9 LABOUR LAW (MUMBAI)
under a Central Law, in all undertakings employing 100 or more workers or where
the capital invested is more than a stipulated size. The Recognition once granted
can’t be withdrawn illegally or without complying with rules of Natural Justice.
• Cancellation/Withdrawal of Registration (Sec.10):-
A Certificate of Registration of a T.U. may be withdrawn on cancelled by the
Registrar-
i) On the application of T.U. to be verified in such a manner as may be
prescribed or
ii) If, the Registrar is satisfied that the certificate has been obtained by fraud or
mistake or that the T.U. has ceased to exist or has willfully and after notice
from the Registrar contravened any provisions of this Act or allowed any rule
to continue in force which is inconsistent with any such provisions, or has
rescinded any rule providing for any matter provision for which is required
by Sec.6.
iii) If, the registrar is satisfied that a registered T.U. of Workmen ceases to have
the requisite no. of members.
But, not less than 2 months previous notice in writing specifying the ground
on which it is proposed to withdraw or cancel the certificate shall be given by
the Registrar to the T.U. Before, the certificate is withdrawn or cancelled
otherwise than on the application of the T.U.
• Change of Name: (Sec.23)
Any registered T.U., may with the consent of not less than 2/3 of the total no.
of its members and subject to the provisions of Sec. 25, change its name.
• Amalgamation of T.U. :- (Sec.24):-
Any 2 or more registered T.U.’s may become amalgamated together as one
T.U. with or without dissolution or division of the funds of such T.U. or either or
any of them, provided that the votes of at least ½ of members of each or every
such T.U. entitled to vote are recorded and that atleast 60% of the votes recorded
are in favour of proposal.
ALANGE’S LAW CLASSES, MAH 10 LABOUR LAW (MUMBAI)
• Notice of change of Name/Amalgamation (Sec.25):-
1) Notice in writing of every change of name and of every amalgamation, signed
in the case of change of a name, by the Secretary and by 7 members of the
T.U. changing its name and in case of an amalgamation by the secretary and
by 7 members of each and every T.U. which is a party, shall be sent to the
Registrar.
2) If, the proposed name is identical with other existing T.U. has been registered
or so nearly resembles such a name as to be likely to deceive the public or
members of T.U. the Registrar shall refuse to register the change of name.
3) The Registrar shall, if he is satisfied that the provisions of this act in respect
of change of name have been complied with, register the change of name.
4) The Registrar of the state in which the head office of the amalgamated T.U.
is situated shall, if he satisfied that the provisions of this Act in respect of
amalgamation have been complied with and that the T.U. formed is entitled
to registration u/s. 6, register the T.U. in the manner provided in Sec. 8 and
the amalgamation shall have effect from the date of such registration.
Effects of change of Name and of amalgamation: (Sec. 26)
1) The Change in the name of registered T.U. shall not affect any rights or
obligations of T.U. or render defective any legal proceeding by or against the
T.U. and any legal proceeding which might have been continued or commenced
by or against it by its former name may be continued or commenced by or against
by its new name.
2) An amalgation of 2 or more registered T.U.’s shall not prejudice any right of any
of such a T.U.’s or any right of a creditor of any of them.
Rights and Liabilities of T.U.:-
General fund, Political Fund, Immunities, Verification, Reference, Penalties,
Role of T.U. Labour participation in Management:-
Art. 19 (1) (C) of the Constitution guarantees the right to T.U.’s It is not
available to all categenes of jobs. eg. Government Servant’s can’t form T.U.’s. under
this Act.
ALANGE’S LAW CLASSES, MAH 11 LABOUR LAW (MUMBAI)
A. General Fund (Sec.15):-
The General Fund of a registered T.U. shall not be spent on any other objects
than the following:-
1) The payment of salaries, allowances and expenses to office bearers of the
T.U. .
2) The payment of expenses for the administration of T.U. including audit of
the accounts.
3) The prosecution or defense of any legal proceeding to which T.U. or
member is a party.
4) For the conduct of Trade disputes on behalf of T.U./member.
5) The compensation of members for loss arising out of Trade disputes.
6) Allowances to members or their dependants on account of death, Old-age,
sickness, accidents or unemployment.
7) The issue of policies of assurance on the lives of members or against
sickness accident/unemployment.
8) The provisions of educational, social, religious benefits to members or the
dependants.
9) The unkeep of a periodical published mainly for the purpose of discussing
questions affecting employers/ workmen.
10) The payment in furtherance of any of the objects on which the general
funds of the T.U. may be spent, etc. &
11) To other object notified by the appropriate government.
B. Political Fund:- (Sec.16):-
A registered T.U. may constitute a separate fund, from contributions
separately levied for or made to that fund, from which payments may be made for
promotion of the civic and political interests of its members in furtherance of any
of the following objects-
a) The payment of any expenses incurred by a candidate for election as member
of any legislative body or local authority at election.
b) The holding of any meeting or distribution of any literature/documents in
support of any such candidate.
ALANGE’S LAW CLASSES, MAH 12 LABOUR LAW (MUMBAI)
c) The maintenance of any person who is member of any legislative body or
local authority.
d) The registration of electors or the selection of a candidate for any legislative
body/local authority.
e) The holding of political meetings of any kind/distribution of political
literature or political documents of any kind.
No member shall be compelled to contribute to the political fund and
a member who does not contribute shall not be excluded from any benefits of
the T.U.
1.4 Immunities: -
Immunities of the T.U. from Civil and Criminal liability constitutes the most
important and basic right without which no T.U. activity in the proper sense is
possible. The main object of T.U. is to better the working conditions of its members.
To realize this object, T.U. Office bearers are authorized to represent workers in any
dispute with their employers.
There are two kinds of Immunities: -
1) Immunity from criminal liability (Sec.17): - No officer bearer or member of
a registered T.U. shall be liable to punishment under Sec. 120(B) of IPC i.e.
regarding criminal conspiracy in Trade disputes, in respect of any agreement
made between the members for purpose of furthering any such object of the
T.U. as is specified in Sec. 15, unless the agreement is an agreement to
commit an offence.
Thus, Sec. 17 gives immunity to registered T.U.’s officer
bearer/member from consequence of criminal conspiracy.
2) Immunity from Civil Liability :- No suit or other legal proceeding shall be
maintained in any civil court against any registered T.U. or any office bearer
or member of T.U. in respect of any act done in contemplation or furtherance
of a trade dispute to which a member of the T.U. is a party on the ground only
that such act induces some other person to break a contract of employment or
that it is in interference with the trade, business or employment of some other
person/with the right of some other person to dispute as he wills.
ALANGE’S LAW CLASSES, MAH 13 LABOUR LAW (MUMBAI)
A registered T.U. shall not be liable in any suit/other legal proceeding
in any civil court in respect of any tort in contemplation/furtherance of a trade
dispute by an agent of the T.U. if it is proved that such person acted without
the knowledge of or contrary to express instructions given by the executive
of T.U.
Verification and Reference: -
The new Sec. 28(A) added by the 1982 Amendment Act empowers the
Registrar to verify the membership of T.U’s
Sec. 28(B) provides for Voluntary reference of T.U. disputes to arbitration.
Sec. 28(C) contains provisions for the reference of T.U. disputes to the
Registrar.
T.U. dispute is defined under a new clause i.e. Sec.2(i) to means any dispute
between one T.U. and another, or between one/more members or office bearer of a
T.U. and the T.U. relating to its registration, administration/management of its
affairs, appointment of members of the executive/other office bearer of the T.U.,
verification of membership and any matter arising out of the rules of T.U.
But, matters involving determination of issues as to the title to, or
membership, or ownership of any building, fund or other property are excluded.
The between of Trade dispute is almost identical with the between of
Industrial dispute in the Industrial Dispute Act.
For a trade dispute, it is necessary that there must be some difference between
the parties as aforesaid i.e. a demand from one party and refusal to accept those
demands.
Such Trade disputes may be referred to arbitration or to the registrar for
settlement.
Role of Trade Union: - (T.U)
The primary function of a T.U. is to promote and protect the interest of its
members. The T.U. has to strive to better the terms and conditions of employment
and generally to advance their economic and social interests so as to achieve for
them a rise in standard of living.
ALANGE’S LAW CLASSES, MAH 14 LABOUR LAW (MUMBAI)
Welfare activities like organizing mutual benefit societies, Co. operatives,
employment assistance, libraries, games and cultural programmes also form part of
the functions of the T.U.
Education of its members in all aspects of their working life, including
improvement of their civic environments forms another role of T.U.
These have been recognized as the normal activities of a T.U. in the T.U. Act, 1926,
which stipulates the objects on which the General Funds of a union can be spent
The discharge of above functions, demands the T.U. to operate on the social,
economic, civic and political fronts of the nation to a certain extent, they have to
influence policy decisions in interests of the workers the limits within which their
interests can be served by the union. Further, unions have to diligently watch in the
implementation of policy. In many countries, T.U.’s play vital role in the political
process of government’s.
The National Commission on Labour has stressed that the T.U.’s are to give
greater attention to the following basic needs of their members-
1) To secure for workers fair-wages
2) To safeguard security of tenure
3) To enlarge opportunities for promotion and training
4) To improve working and living conditions
5) To provide for educational, cultural and re creational facilities.
6) To co-operate in and facilitate technological advance by broadening the
understanding of workers on its underlying issues.
7) To promote identity of interests of the workers with their industry.
8) To offer responsive Co-operation in improving levels of production and
productivity, discipline and high standard of equality.
9) To promote individual and collective welfare.
T.U.’s have certain important social responsibilities in the field of –
i) promotion of National integration
ii) Generally influencing socio-economic policies of the community through
active participation in their formulation at various levels and
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iii) Instilling in their members a sense of responsibility towards industry and the
community.

1.5 & 1.6 Collective Bargaining- (C.B.) Purpose and its Types Meaning,
Advantages, Disadvantages, Bargaining Power, Process, Structure,
Enforcement
A. Meaning: -
Collective Bargaining is a method by which problems of wages and
conditions of employment are resolved amicably, peacefully and voluntarily
between labour and management.
It is recognized as a right of social importance and greater emphasis is place
on it by India’s 5 years plans.
Uptill now, it is not elevated to the position to the fundamental right to form
association/union under Art. 19(1) (C) of the constitution of India.
The term “Collective Bargaining” is applied to those arrangements under
which wages and condition of employment are settled by a bargain, in the form of
an agreement between employers or association of employers and workers
organizations.
Following 2 important purposes are achieved by Collective Bargaining agreements-
1) The parties undertake towards one another certain obligations and create a
code for the trade.
2) Collective Bargaining has the effect of imposing a limit on the freedom of
employers to run their business as they think fit.
C.B. is highlighted as “Self- protection” to workers from 2 angels -
1) In the presence of a reserve army of unemployed it eliminated the competition
which would otherwise exist among them to offer their services at a lower
price than their fellow- workers for getting employment.
2) It enables workers in favorable conditions to compel their employers to
consider wage improvements and other ameliorates and finally C.B. protects
labour against victimization and favoritism of employers. Hence, it is
something like a ‘Rule of Law’ in industrial relations.
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B. Advantages and Disadvantages: -
C.B. has merits in that it avoids unnecessary litigation, that parties themselves
resolve their dispute and so it is more democratic. Hence, it results harmonious
relationship between employer and workers, benefiting both.
C.B. is quick and it is efficient. It does not involve bitterness between parties,
unnecessary expenditure, unlike in case of adjudication.
But, the consumers who are invariably affected by the C.B. agreement are
kept out of the B. table.
Wage increase or other better amenities will add to the cost production which
will reflect upon the price of the commodity, ultimately the consumers are victims
of many of collective bargaining agreements. In such a cases, it would be advisable
to seek the opinion of the consumer organization also before increasing the price of
the commodity. In many countries, such consumer organizations, do exercise an
effective role. At the moment, in India similar consumer organization like the
Railway users associations are very few. It is high time to organize such
associations and start the practice of consulting them along with B. process.
Another drawback is that by large the settlements are reached, by the
influence of power politics than by the application of any rational principle. The
political party in power patronizing the particular T.U. very often takes undue
advantage over the others side. This evil will survive so long as outside
participation in T.U. continues.
Workers education in socio-economic matters and leadership can gradually
effect the shift in T.U. leadership from outside persons to workers themselves. This
will eliminate the mischief of power politics for exploiting the C.B. process to
political ends rather than to better the lot of the workers.
Another disadvantage is that if C.B. fails, strikes or lock-out will be the
immediate consequence.
C. Bargaining Power:-
A successful B. requires that neither party shall control or dominate the other
and that their must be rough equivalence of B. power between them. Employers B
ALANGE’S LAW CLASSES, MAH 17 LABOUR LAW (MUMBAI)
power depends upon the availability of substitute labour, market demand for goods
and effect of the closure of the business upon the company and it’s customers.
The labour U.s. strength depends upon their capacity to undergo hardship
during strike, availability of alternate employment and financial position of Unioins.
C.B. can derive reality only from the organized strength of workers and a
genuine desire on the part of employer to co-operate with their representatives.
The success of C.B. lies in a mutual eagerness to maintain peace and create
written C. agreements which will add in preserving harmony. It can work only
through the acceptance by management and labour of their new responsibilities, it
can flourish only in an atmosphere free from animosity and reprisal. This requires
the management to develop sound personal policies, procedures and practices. The
organization structure of the labour Unions should be clear cut that it is possible to
allocate responsibility for breaches of C.B. agreements.
D. Collective Bargaining Process: -
C.B. process is a complicated like business deal yielding less and gaining
more. It is a diplomatic Endeavour continuously probing into the strength and
weakness of the opposite party and thus, skillfully and tactfully handling the issues.
It demands the parties to deal with problem with open heart and fair mind and
thus stabilize employment relations and prevent obstructions to free exchange of
terms. It demands certain standards of good faith.
Long before the, C.B. conference the parties hold separate meetings and
discuss elaborately the stand to be taken before the conference table. This meetings
are very important because the representatives get the necessary mandate to their
commitment and demands at the C.B. time. The problems are to be discussed
horizontally and vertically and the maximum and minimum demands are to be
evolved in such meetings after mature deliberations. The union leaders are expected
to play a constructive role. They should adopt a rational approach to the problem
bearing considerations of the capacity of the employer and the socio-economic
effects and the consequences of their extreme demands.
ALANGE’S LAW CLASSES, MAH 18 LABOUR LAW (MUMBAI)
They are to feel the modes and feelings of the rank and file. The emotions
are to be standardized into proper channel and that they have to look at the problem
with rational approach.
Similarly, the employers are also expected to adopt a flexible stand with a
give and take spirit. After such, private meetings the representative come before the
conference table.
Conference table involves face to face conference in the B sessions, the issues
and problems are discussed and debated. The representatives express their stand.
Proposals and counter proposals are made. Sometimes adjournments take place to
enable the representatives to have further discussions with the workers or employers
as the case may be. By this complicated process the parties may come to some
settlement in which case provisional contract will be drafted which is known as the
“C.B. Contract.”
E. Structure: -
The C.B. may take place in plant level, industry wise/national level each is
appropriate depending upon certain factors. In U.S., It takes place at all levels in
the various industries. The National Labour Relations Board (NLRB) has power
and duty to decide in contesting cases as to which should be the proper level.
Since, the C.B. is in its initial stage in India, it is not yet time to say which is
appropriate. It depends upon many factors like pace of industrialization, means of
communication, scope of the industry, means of the industry, development of the
T.U. movement, etc.
If, the scope of industry is limited to small unit for local consumption, plant
level B would be appropriate and the most fruitful method. If there are many
enterprises in the same industry and all are situated in one area then industry wide
B would be useful and economical eg:- C.B. contracts in the textile industry in
Bombay, Ahmadabad, etc.
If, the industries are spread over a region and the U. is strong then C.B. may
be conducted for the whole of region.
Eg:- United Planters Association of South India, Tea workers Unions, etc. when
activities of the Industry are spread through-out country, a nation-wide B. is good.
ALANGE’S LAW CLASSES, MAH 19 LABOUR LAW (MUMBAI)
E.g.:- Railways, Post and Telegraph, petroleum Companies, Banking etc.
F. Enforcement: -
In England, C.B. agreement is treated as gentleman’s agreement. It is the
duty of both parties to an agreement i.e. employers and workers, to enforce it as per
the terms of agreement.
The Industrial Relations Act 1971 provides for enforcement of the agreement
through Labour Tribunals. But, this provision is repealed by a 1974 Amendment
Act. Hence, in England, C.B. Contract remains as Gentlemen’s Agreement. This
means the enforcement of agreement depends on the good will of the parties.
In some other countries, such contracts are enforced by special legislation.
The Unions or Industrial worker can enforce such contracts through court of Law.
E.g.:- such Courts are set-up for enforcement of this agreement.
In India, C.B. contracts are enforceable u/s. 18 of the Industrial Dispute Act
as a settlement arrived as between workers and employers.
Act to Sec. 18-
1) Such agreement is binding on parties
2) An arbitration award shall be binding on the parties to agreement
3) A settlement arrived in the course of conciliation proceedings shall be
biding on the parties.
Government may refer the dispute over the breach of contract to a Labour Court
or to an Industrial Tribunal for enforcement of such an agreement.
Types of Collective Bargaining:

Conjunctive bargaining: This type of bargaining happens when both the

employer and the union want to gain from the other party's loss. It usually refers
to negotiating salaries and other employee benefits.

Co-operative bargaining: In this type of bargaining, both parties want to reach a

solution that can benefit both parties simultaneously. Co-operative bargaining is
common in disputes over technology, equipment or work terms.

Productivity bargaining: Productivity bargaining is when an employer agrees to

offer employees additional bonuses or improve their work conditions in hopes
that this can increase employee productivity. Essentially, the employer's main
concern is the organisation's success.
ALANGE’S LAW CLASSES, MAH 20 LABOUR LAW (MUMBAI)
Composite bargaining: Composite bargaining refers to a situation in which
employees decide to bargain because they're concerned about their working
conditions or policies. Their main goal is to create a safer and healthier
workplace for themselves and others.

CHAPTER- 2
The Industrial Dispute Act 1947
Scope & Object:
The object of the industrial relations legislation in general is industrial peace
& economic justice. The prosperity of any industry very much depends upon its
growing production. The production is only possible when industry functions
smoothly without any interruptions. There are some other factors that influence the
production namely absence of disputes i.e. harmonious relation between the labour
& management.
The object of the Act in the preamble is, to make provision for the
investigation & settlement of industrial disputes. The object of all labour legislation
is to ensure fair wages & prevent dispute so that production might not be adversely
affected.
The principle objects of the Act as analyzed by the S.C. in the case of
workmen of Dimakuchi Tea Estate Vs. Management of Dimakuchi Tea Estate, are
as follows :
1) The promotion of measures for securing amity & good relations
between the employer & workmen.
2) An investigation & settlement of industrial dispute between employers
& employers, employers & workmen, workmen & workmen, with a
right of representation by a registered trade union.
3) The prevention of illegal strikes & lock outs.
4) Relief to workmen in matter of layoff, retrenchment & closure of an
undertaking.
5) Collective bargaining -
The Industrial Dispute Act is a progressive measure of legislation aiming at
amelioration of condition of workers in industry.
ALANGE’S LAW CLASSES, MAH 21 LABOUR LAW (MUMBAI)
Some of the distinguishing features of industrial Dispute Act may be
Summarized as under:-
1) Any industrial dispute may be referred to an Industrial Tribunal by an
agreement of parties to the Dispute or by state Govt.
2) An award shall be binding on both the parties to the dispute for
specified period.
3) Generally strikes & lock outs are prohibited.
4) In public interest or emergency the appropriate Govt. has power to
declare the transport, cotton textiles, etc. to be public utility service.
5) In case of lay off or retrenchment of workmen, the employer is required
to pay compensation to them.
6) Provision for payment of compensation in case of transfer or closure
of undertaking.
7) Authorities like works committee, conciliation officer, Board of
conciliation, courts of inquiry, Labour Courts, Industrial & National
Tribunal are provided for settlement of industrial dispute.
2.1 Industry: Conceptual Analysis: -
Industry, Amended Definition of Industry :
Before the Bangalore water supply Co. V/s. A Rajappa, (1978), there was
confusion over various traders, clubs, hospitals activity, etc, which fall within the
definition and scope of industry. In this case the scope of industry was considered
by S.C. and laid down following tests :-
1) Triple Test :- Wherever there is
a) Systematic activity, b) Organized by Co-operation between employer and
employee, c) For production/distribution of goods or services, calculated to satisfy
human wants and wishes, prima facie, there is an industry in that enterprise. This
is known as triple test.
The following points were also emphasized in this case:
1. Industry does not include religious services.
2. Absence of profit motive or gainful objective is irrelevant.
ALANGE’S LAW CLASSES, MAH 22 LABOUR LAW (MUMBAI)
3. The true focus is functional and decisive test is the nature of activity with
special emphasis on the employer, employee relationship.
4. If the Organization is a trade or business it does not cease to be an industry
because of philanthropy animating the undertaking.
Therefore the consequences of decision in this case are that professions,
clubs, educational institution, co-operatives, research institutes, charitable projects
and other kindred adventures, if they fulfill the triple test stated above cannot be
exempted from the definition of industry.
As per the suggestions of S.C. in Bangalore water supply case the parliament
has amended definition of industry in Sec. 2(j) as follows :
Industry Means:
1) Any business, trade, undertaking, manufacture or calling of employers &
2) Includes any calling, service, employment, handicraft or industrial avocation
of workman.
Thus in short industry means any business, trade, undertaking, manufacture
or calling of employers & includes any calling, service, employment, handicraft or
industrial occupation or avocation of workmen.
Amended Definition of Industry:
Industry means any systematic activity carried on by co-operation between
an employer & his workman for the production supply or distribution of goods or
services with a view to satisfy human wants or wishes, whether or not -
1) Any capital has been invested for the purpose of carrying on such activity.
2) Such activity is carried on with a motive to make any gain or profit.
Industry Includes:
1) Any activity of the Dock-labour Board established under Sec. 5A of the Dock
workers (Regulation of Employment) Act. 1948.
2) Any activity relating to the promotion of sales or business or both carried on
by an establishment.
Industry does not include:
1) Any agricultural operation.
2) Hospitals or dispensaries.
ALANGE’S LAW CLASSES, MAH 23 LABOUR LAW (MUMBAI)
3) Educational, Scientific, research or training institutions.
4) Institutions owned or managed by organisation wholly or substantially
engaged in any charitable or social service.
5) Khadi or village industries.
6) Any activity of Govt. including all the activities carried on by the departments
of research, atomic energy & space.
7) Any domestic service.
8) Any activity, being a profession practised by an individual or body of
individuals if the no. of persons employed is less than 10.
9) Any activity being an activity carried by a cooperative society or a club or
any other like body of individuals if no. of persons employed is less than 10.

Definitions:
Appropriate Government:
The Central Govt. as well as the State Govt. are vested with various powers
& the duties in relation to matters dealt with in this Act. In relation to some industrial
disputes, the Central Govt. & in relation to some others, the State Govt. concerned
are the appropriate Govts. to deal with such disputes.
The appropriate Govt. is central Govt. in relation to following:
1) Any industry carried on by or under authority of central Govt. or by a railway
co. or concerning any such controlled industry as may be specified in this
behalf by central Govt.
2) i) A dock labour Board established under Sec. 5(a) of the
Dock-workers (Regulation of employment) Act. 1948. or
ii) The Industrial Finance Corporation of India Ltd. formed &
registered under the company's Act. 1956 or.
iii) The Employees State Insurance Corporation Established under
Employees State Insurance Act. 1948.
iv) Board of trusted constituted under Coal mines provident fund
Act. 1948.
ALANGE’S LAW CLASSES, MAH 24 LABOUR LAW (MUMBAI)
v) Central Board of Trustees & State Boards of Trustees constituted
under. The Employees Provident Fund Act. 1952.
vi) The Life Insurance Corporation of India established under L.I.C.
Act. 1956.
vii) The Oil & Natural Gas Corporation Ltd., registered under the
company's Act. 1956.
viii) The Deposit Insurance & Credit Guarantee Corporation
established under the Deposit Insurance & Credit Guarantee
Corporations Act. 1962.
ix) The Central Ware-Housing Corporation established under ware-
housing corporations Act. 1962.
x) The Unit Trust of India established under UTI Act. 1963.
xi) The Food Corporation of India established under Food
Corporation Act. 1964.
xii) The Air Ports Authority of India under Air Ports authority of
India Act. 1994.
xiii) A Regional Rural Bank under R.R.B. Act. 1976.
xiv) The Export Credit & Guarantee Corporation Ltd. established
under or Industrial Reconstruction Bank of India or National
Housing Bank under National Housing Bank Act. 1987.
xv) The Banking Service Commission under the Banking Service
Commission Act.
xvi) An Air Transport Service or Banking or an insurance Co. or
mine or oil field, a cantonment Board or a major parts.
In all other cases, the appropriate Govt. is the State Govt. within whose
territory the Industrial dispute arises.
Award, Settlement, Workman, Wages:
1) Award: (2.6)
Award means an interim or final determination of any industrial dispute or of
any question relating thereto. The determination must be by any labour court,
industrial or National Tribunal, it includes an arbitration award.
ALANGE’S LAW CLASSES, MAH 25 LABOUR LAW (MUMBAI)
The definition of award falls in 2 parts:

1. The 1st part covers, the determination, final or interim of any

industrial dispute.

2. The 2nd part takes in any question relation to industrial dispute.

But basic principle common to both parts of definition is existence of
industrial dispute, actual or apprehended. In order to be an award a determination
must be an adjudication of a question or point relating to an industrial dispute which
has been specified in order or reference & such adjudication must be on merits.
Award includes final as well as interim determination. The tribunal can grant only
such interim awards which they are competent to grant at the time of final award
because the relief which tribunal has no right to grant at the time of final
determination shall be outside its authority at any stage of proceeding.
2. “settlement”: (2.6)
means a settlement arrived at in the course of conciliation proceeding and
includes a written agreement between the employer and workmen arrived at
otherwise than in the course of conciliation proceeding 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 5 [an officer authorised in this behalf by] the appropriate
Government and the conciliation officer;
3. Wages: (2.2)
Wages means all remuneration, capable of being expressed in terms of money,
which would if the terms of employment, expressed or implied were fulfilled be
payable to a workman in respect of his employment or of work done in such
employment.
Wages includes:
1) Such allowance including dearness allowance.
2) The value of any house accommodation or supply of light, water,
medical attendance or other amenity or of any service or of any
concessional supply of food grains or other articles.
3) Any travelling concession.
ALANGE’S LAW CLASSES, MAH 26 LABOUR LAW (MUMBAI)
4) Any commission payable on promotion of sales of business.
Wages does not include:
1) Any bonus.
2) Any contribution paid or payable by employer to any pension or
provident fund or for benefit of worker under any law under time being
in force.
3) Any gratuity payable on termination of service of workman.
4. Workman: (2.2)
Workman means any person employed in any industry to do any manual,
unskilled, skilled, technical, operational, clerical or supervisory work for hire or
reward, whether the terms of employment be express or implied & for purposes of
any proceeding under this Act in relation to an industrial dispute.
Workman 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 to that dispute.
Workman does not include, any such person :
1) Who is subject to the -
a) The Air Force Act 1950 or
b) The Army Act 1950
c) The Navy Act 1957.
2) Who is employed in the police service or as an officer or other
employee of a prison.
3) Who is employed mainly in a managerial or administrative capacity or.
4) Who, being employed in a supervisory capacity draws wages
exceeding Rs. 1600/- per month or exercises functions mainly of a
managerial nature.
5. Industrial Dispute: -(2.2)
The main objective of the Act in Preamble is to make provision for the
investigation & settlement of industrial dispute. Therefore, definition of industrial
dispute has special significance.
ALANGE’S LAW CLASSES, MAH 27 LABOUR LAW (MUMBAI)
According to sec. 2 (t) an industrial dispute means, any dispute or difference
between-
1) Employers & employers,
2) Employers & workmen.
3) Workmen & workmen,
Which is connected with:-
i) Employment or non-employment,
ii) The terms of employment,
iii) The condition of labour of any person,
Essentials of Industrial Dispute: -
1) A dispute or difference must exist,
2) That dispute or difference should be between any of the classes
mentioned in Definition.
3) The dispute must be related to or be connected with employment
or non- employment or terms of employment or condition of
labour of any person.
There must be an industry for an industrial dispute, in absence of industry,
there cannot be any industrial dispute.

Dismissal, etc. of An Individual workman to be Deemed To Be An Industrial

Dispute (Sec.2 ( A)) :-
The circumstances under which an individual dispute converts into an
industrial dispute are laid down in Sec.2 (A), where any employer discharges,
dismisses, retrenches or otherwise terminates the services of an individual
workman, any dispute or difference between that workman & his employer,
connected with or arising out of such discharge, dismissal, retrenchment or
termination shall be deemed to be an industrial dispute not withstanding that no
other workman or any union of workman is a party to dispute.
The Sec. 2(A) was inserted in the Industrial Dispute Amendment Act. 1965,
Sec. 2(A) is of limited application. It does not declare all individual disputes to be
ALANGE’S LAW CLASSES, MAH 28 LABOUR LAW (MUMBAI)
an industrial dispute. A dispute connected with a discharged, dismissed, retrenched
or terminated workman shall be an industrial dispute.
Public Utility Service:
The following are public utility services under the Industrial Dispute Act -
1) Any railway service.
2) Any transport service, for the carriage of passenger or goods by air.
3) Any service in or in connection with the working of any major ports or dock.
4) Any section of an industrial establishment, on the working of which safety of
establishment or workman employed therein depends.
5) Any postal, telegraph or telephone service.
6) Any industry which provide power, light , water to public.
7) Any public conservation & sanitation services.
8) Any industry specified in I schedule which the appropriate Govt. may declare
to be public utility service.
The industries enumerated in I schedule are:
1) Transport (other than rail way) for the carriage of passenger or good, by land
or water.
2) Banking 3) Cement 4) Coal, 5) Cotton Textile
6) Food stuffs, 7) Torn & Steal
8) Defense establishments
9) Service in hospitals & Dispensaries.
10) Fire brigade service.
11) India Govt. mints. 12) India security press.
13) Copper mining. 14) Lead mining 15) Zinc mining
16) Iron are mining & 17) Service in any oil field.

2.3 Authorities under the Act or Redressal Machinery:

The main object of the Industrial Dispute Act is investigation & settlement of
industrial disputes. There are two types of authorities or machineries provided for
investigation & settlement of industrial disputes.
ALANGE’S LAW CLASSES, MAH 29 LABOUR LAW (MUMBAI)
A) Conciliation Machineries:
1) Works Committee
2) Conciliation Officer
3) Board of Conciliation,
4) Court of Inquiry
B) Adjudication Machinery:
1) Labour Court,
2) Industrial Tribunal
3) National Tribunal
A) Conciliation Machinery :
1) Works Committee: (Sec. 3)
The appropriate Govt. may by general or special order, require the industries
to form works committee in the case of any industrial establishment in which 100
or more workmen are or had been employed in any day in the preceding 12 months.
Such works committee consists of representative of employer workmen
employed in the establishment. The representative of workers should not be more
than no. of representative of employer. In the prescribed manner, representatives of
workman are to be chosen from workmen engaged in industry, it should be done in
consultation with registered trade union of workers.
Duties:
The following are duties of the works committee:
1) To promote measures for securing & preserving amity & good relations
between the employers & workmen.
2) To comment upon issues of common interest or concern.
3) To attempt to settle any material differences of opinion in such matters.
In Kemp & co. V/s. Its workmen, it was held by the S.C. that decisions of
works committee are not conclusive & binding, yet they have greater weight.
2) Conciliation Officer (Sec. 4):
The appropriate Govt. may by notification in the official Gazette appoint
conciliation Officer. C.O. is an officer provided under this Act, he may be appointed
ALANGE’S LAW CLASSES, MAH 30 LABOUR LAW (MUMBAI)
for any specific industry in specified area or specified industries either temporarily
or permanently.
Duties:
Duties of C.O. are:
i) To mediate in settlement of industrial dispute.
ii) To promote settlement of industrial dispute.
iii) Under Sec. 11 a C.O. may conduct inquiry into any existing or apprehended
industrial dispute, enter any establishment premises, after giving reasonable
notice.
iv) He may call for any document relevant to industrial dispute or for verifying
the implementation of any award.
v) Submit report to appropriate Govt. regarding steps taken by him regarding
investigation & settlement of any dispute.
3) Board of Conciliation (Sec. 5):
Appropriate Govt. may as occasion arises, by notification in gazette constitute a
Board of conciliation for promoting the settlement of an industrial dispute.
Such Board consists of an independent chairman & two or four other members who
equally represent parties to dispute.
Duties:
The duties of Board are:
i) To promote the settlement of industrial dispute, the appropriate Govt. may at
any time by written order refer a dispute to Board.
ii) If dispute has been referred the Board must investigate dispute without delay.
iii) The Board should sent a report of settlement if arrived, to appropriate Govt.
along with settlement memorandum duly signed by parties to dispute.
iv) If no settlement is reached, the Board must send a full report to the
appropriate Govt. stating and steps taken for settlement along with
recommendation for solving dispute.
v) Submission of report should be done within 2 months from date on which
dispute was referred to it.
4) Court of Inquiry (Sec. 6):
ALANGE’S LAW CLASSES, MAH 31 LABOUR LAW (MUMBAI)
The appropriate Govt. may as occasion arises, by notification in gazette constitute
a court of inquiry for inquiry into matters appearing to be connected with any
industrial dispute. It consists of one or more independent person or persons. When
there are two or more members there must be a chairman.
Duties:
Duties of Court of inquiry are:
1) To inquire into matters referred to them & to report thereon to appropriate
Govt. within 6 months from commencement of inquiry.
2) The duty is not only to inquire into matters referred but also into such matters
as appear to be connected with or relevant to an industrial dispute.
B) Adjudication Machinery :
1) Labour Court : (Sec. 7) L.C. :
The appropriate Govt. may by notification in official gazette, constitute one

or more L.C. for adjudication of I.D.'s relating to any matter specified in the II nd
schedule. These courts shall also perform such other functions as may be assigned
to them under this Act.

Matters within the jurisdiction of L.C. (IInd Schedule) L.C. have power to
adjudicate I.D.'s relating to following matters :
i) The propriety or legality of an order passed by an employer under the
standing orders.
ii) The application & interpretation of standing orders.
iii) Discharge or dismissal of workman including reinstatement, of or grant of
relief to, workmen wrongfully dismissed.
iv) Withdrawal of any customary concession or privilege.
v) Illegality or otherwise of a strike or lockout.

vi) All matters other than those specified in IInd schedule.

A L.C. shall consist of one person only, to be appointed by the appropriate
Govt.
ALANGE’S LAW CLASSES, MAH 32 LABOUR LAW (MUMBAI)
2. Industrial Tribunal (Sec. 7(A)) : I.T.
The appropriate Govt. may by notification in the official gazette constitute
one or more I.T.'s for the adjudication of I.D's relating to any matter whether
specified in II schedule or the IIIrd schedule & for performing such other functions
as may be assigned to them under this Act.

Matters within the jurisdiction of IT ( II and III schedule). The IIIrd schedule
contains the matters as specified above.
The II schedule contains following matters:
i. Wages including the period or mode of payment.
ii. Compensatory & other allowances
iii. Hours of work & rest intervals
iv. Leave with wages & holidays.
v. Bonus, profit sharing, provident fund & gratuity.
vi. Shift working, otherwise than in accordance with standing orders.
vii. Classification by grades.
viii. Rules of discipline
ix. Rationalization
x. Retrenchment of workman & closure of establishment
xi. Any other matter that may be prescribed.
The Tribunal shall consist of one person only to be appointed by appropriate
Govt. The presiding officer of a tribunal shall be deemed to be a public servant
within the meaning of Sec. 21 of I.P.C.
The appropriate Govt. may appoint two persons as assessors to advice the
tribunal in the proceeding before it.
3. National Tribunal (Sec. 7 (B)) J: NT :
The central Govt. may by notification in the official gazette constitute one or
more N.T. N.T. are constituted for the adjudication of ID, which in the opinion of
Central Govt :
i. Involve questions of national importance or.
ALANGE’S LAW CLASSES, MAH 33 LABOUR LAW (MUMBAI)
ii. Are of such nature that the industrial establishment situated in one or
more state are likely to be interested in or affected by such a dispute.
It is a sole discretion of the central Govt. to decide that the I.D. involves a
question of national importance or industrial establishment situated in more than
one state are interested in or affected by dispute.
A N.T. shall consist of one person to be appointed by central Govt. The central Govt.
may appoint two persons as assessors to advice the N.T. in the proceeding before it.

Qualifications & Disqualifications for the Presiding Officers of Labour Courts,

Tribunals & National Tribunal :-
A. Qualification:
1. Qualification of Labour Court:
The qualification of a person who can be appointed as presiding officer of LC
are as follows:
a. He is or has been a judge of H.C.
b. He has or has been a D. J. or Additional DJ for a period of not less than 3
years.
c. He has held any judicial office in India for not less than 7 years.
d. He has been the presiding officer of a LC constituted under any provincial
Act or State Act for not less than 5 years.
2. Qualification of Industrial Tribunal (I.T.):
Any person holding one of the following qualification may be appointed as
the presiding officer of the IT.
a. If he is or has been a judge of H.C. or.
b. If has for a period of not less than 3 yrs. been a District Judge or
Additional District Judge.
3. Qualification of National Tribunal: NT.
A person shall not be qualified in appointment as presiding officer of NT unless the
is or has been a judge of H.C.
B. Disqualification:
ALANGE’S LAW CLASSES, MAH 34 LABOUR LAW (MUMBAI)
No person shall be appointed to or continue in the office of the presiding
officer of a Labour Court, Industrial Tribunal and National Tribunal if :
a. He is not an independent person or
b. He has attained age of 65 yrs.
The moment any person suffers from any disqualification, he shall cease to
have authority to act in the office concerned.
6. Procedure, Power & Duties of Authorities:
Procedure in Conciliation Proceeding, Labour Court & Tribunal (Sec. 11) :
Procedure:
Subject to any rules that may be made in this behalf, an arbitrator appointed
under sec. 10 (A), Board of conciliation, a court of enquiry, a labour court, an
industrial Tribunal shall follow such procedure as the arbitrator or other authority
concerned may think fit.
General Powers of Authorities:
1. A conciliation officer or members of Board of conciliation or court of enquiry
or the presiding officer of a labour court, I. T. or N. T. may for the purpose
of enquiry into any existing or apprehended industrial dispute, after giving
reasonable notice, enter the premises occupied by any establishment to which
the dispute relates.
2. Every Board of conciliation, court of enquiry, labour court, I. T., N.T. shall
have the same powers as are vested in civil court under C.P.C. like :
i) Enforcing the attendance of any person & examining him on oath.
ii) Compelling the production of documents & material objects.
iii) Issuing a commission for the examination of witnesses.
iv) In respect of such other matters as may be prescribed.
Every enquiry or investigation by a Board of conciliation shall be deemed to
be judicial proceedings.
3. A conciliation officer may enforce attendance of any person for the purpose
of examination or call for or inspect any document which he has considered
relevant for these purposes, he has the same powers of civil court under
C.P.C.
ALANGE’S LAW CLASSES, MAH 35 LABOUR LAW (MUMBAI)
4. A court of enquiry, labour court, IT, NT may appoint one or more persons
having special knowledge of the matter under consideration as assessor to
advice it in the proceeding before it.
5. All conciliation officers, members of board of conciliation or court of enquiry
or the presiding officer or labour court, IT or NT shall be deemed to be public
servant within the meaning of Sec. 21 of I.P.C.
6. The costs of any proceeding before a labour court IT or NT shall be in the
discretion of the court.
7. Every labour court, IT, NT shall be deemed to be a civil court.

Powers of labour court, Industrial OR National Tribunal to Give Appropriate

Relief: (Sec. 11 (A)) or Award and Settlement (2.6)
Where on ID relating to discharge or dismissal of workmen has been referred
to a labour court, IT, NT for adjudication & in the course of an adjudication
proceeding, such court is satisfied that order of discharge, dismissal was not
justified, it may by its award set aside the order of discharge or dismissal & direct
reinstatement of the workman on such terms & conditions or give such other relief
to the workman including the award of the lesser punishment, in lieu of discharge
or dismissal as the circumstances of the case may require.
But in any proceeding under this section, the labour court, IT or NT shall rely
on the material on record & shall not take any fresh evidence in relation to the
matter.
Award & Its Publication:
Sec. 10 deals with the form of award. The court may declare the award. The
report of the board or the award must be signed by all the members. The award of
labour court, IT or NT should be signed by presiding officer. Any member of the
Board or court may record any minute of descent from a report or from any
recommendation made therein. Even a descanting member must put his signature
over the report. Unless every member signs over the report it is not to be valid. The
report of a Board of conciliation or court of enquiry or the award of any labour court,
IT or NT shall be in writing.
ALANGE’S LAW CLASSES, MAH 36 LABOUR LAW (MUMBAI)
Publication of Report & Award: (Sec. 17)
Every report of a Board or court together with any minute of dissent, recorded
therewith, shall be published within a period of 30 days from the date of its receipt
by the appropriate Govt.
Every arbitration award & every award of a labour court, IT or NT shall also
be published within 30 days from the date of receipt by the appropriate Govt.
The publication of report or the award shall be in such manner as the
appropriate Govt. thinks fit. An award published in prescribed manner shall be final
& shall not be called in question by any court in any manner.
It is open to Govt. in special circumstances not to publish an award as above
where settlement between parties has been arrived at after the award has been sent
by the tribunal to the Govt. but before its publication, the situation is of exceptional
nature & may lead to a conflict between a settlement under Sec. 18(1) & (3). In such
a situation the only way to reconcile, the two provisions is to withhold the
publication of the award as a binding settlement has already came into force, in
order to avoid public conflict.
An award under this section may be set aside if the management is denied the
opportunity to adduce evidence before the tribunal.
Validity of Settlement:
1. Persons on whom Settlement & Award are binding:
a. A settlement arrived at by agreement between the employer & workman
otherwise than in the course of conciliation proceeding is binding on the
parties to the agreement.
b. An arbitration award which has become enforceable is binding on the parties
to the agreement who referred the dispute to arbitrator.
c. A settlement arrived at in the course of conciliation proceeding or an
arbitration award of a labour court, IT or NT which has became enforceable
shall be binding on all parties to a dispute & all other parties summoned to
appear in the proceedings.
ALANGE’S LAW CLASSES, MAH 37 LABOUR LAW (MUMBAI)
2. Period of operation of Settlement:
A settlement arrived in the course of conciliation proceeding, before a board
of conciliation shall come into operation: -
a. On such date is agreed upon by the parties to the dispute &
b. If no date is agreed on the date on which the memorandum of
settlement is signed by the parties.
Such a settlement shall be binding for such a period as is agreed by the parties
& if no such period is agreed for a period of 6 months.
3. Fairness of Settlement:
The question of justness & fairness of settlement should be examined with
reference to situation as it stood on the date on which it was arrived at.
In New Standard Engineering Co. v/s. L.L. Abhyankar, out of 1928 workman

who were in the service of Co. on 31st July 1973 only 995 workers signed the
settlement also accepted their dues thereafter 242 workman accepted their dues
under the settlement by actually signing the receipt though they had not signed the

settlement. Further 910 workman who left the Co. between 1st January 1968 to 31st
July 1973 had also accepted their dues under the settlement. The settlement was
made with the union which represented a very large majority of the workmen of the
Co. The tribunal found the settlement is just, fair & valid. The Supreme Court held
the findings of tribunal as correct.

2.4 Strikes & Lock Outs

Meaning: Strikes: Strike Means:
1. Cessation of work by a body of persons employed in any industry acting in
combination or.
2. A concerted refusal of any number of persons who are or have been employed
in any industry to continue to work or to accept employment or
3. A refusal under a common understanding of any no. of persons who are or
have been employed in industry to continue to work or to accept employment.
ALANGE’S LAW CLASSES, MAH 38 LABOUR LAW (MUMBAI)
Thus strike means the stoppage of work by a body of workman acting in
concert with a view to bring pressure upon the employer to concede to their
demands, during an industrial dispute.
Lockout means the closing down of a place of employment or the suspension
of work or the refusal by an employer to continue to employ any no. of persons
employed by him.
Strike is a weapon in the hands of labour to force the management to accept
their demands, similarly lockout is a weapon in the hands of management to coerce
the labour to comedown in their demand relating to the conditions of employment.
Essentials of Lockouts :
1) a) Temporary closing a place of employment by the employer.
b) Suspension of work by the employer.
c) Refusal by employer to continue to employ any no. of persons
employed by him.
2) The above mentioned acts of employer should be motivated by coercion.
3) An industry as defined in the Act.
4) A dispute in such industry.
Prohibition of Strikes & Lock outs in Public Utility Services (Sec. 22) :
Strikes & lock outs in this Sec. is not absolutely prohibited but certain
requirements are to be fulfilled by workman before going on strike or by employer
before locking out place of business.
Sec. 22 (1) provides that no person employed in PUS shall go on strike in
breach of contract -
a) Without giving to employer notice of strike within 6 weeks before
striking this means a strike notice is valid only for 6 weeks or
b) Within 14 days of giving such notice. This has the effect of prior
warning of 14 days before the workmen actually goes on strike.
c) Before the expiry of date of strike specified in any such notice.
d) During the pendency of any conciliation proceeding before a
conciliation officer & 7 days after conclusion of such proceeding.
ALANGE’S LAW CLASSES, MAH 39 LABOUR LAW (MUMBAI)
Sec. 22 (2) lays down that no employer carrying on any public utility service
shall lock out any of his workman -
a) Without giving them notice of lock out within 6 weeks before locking
out,
b) Within 14 days of giving such notice or
c) Before the expiry of date of lock out specified in any such notice or
d) During the pendency of any conciliation proceeding before a
conciliation officer & 7 days after conclusion of such proceedings.
According to Sec. 22(3) :
1) No notice of strike shall be necessary when there is already in existence
a lock out in public utility service concerned.
2) No notice of lock out is necessary where there is already in existence a
strike in the P.U.S. concerned.
Sec. 22(4) says that - The notice of strike shall be given by such no. of persons
to such person or persons in such manner as may be prescribed.
Sec. 22(5) provides that notice of lock out shall be given in such a manner as
may be prescribed.
According to Sec. 22(6), if on any day an employer receives from any person
employed by him a strike notice, he shall within 5 days report to the appropriate
Govt. or prescribed authority. Similarly if an employer gives lock out notice to any
person employed by him, he shall within 5 days report this fact to appropriate Govt.
or prescribed authority.
General Prohibitions of Strikes & Lock outs. (Sec.23)
Prohibitions against strikes & lock outs contained in Sec. 23 is general in
nature. It applies to both public utility as well as non public utility establishment.
A strike in breach of contract by workmen & lock out by employer is
prohibited in following cases.
1) During pendency of conciliation proceeding before a Board & 7 days after
conclusion of such proceedings.
2) During the pendency of a proceeding before labour court, industrial tribunal
or national tribunal & 2 months after conclusion of such proceedings.
ALANGE’S LAW CLASSES, MAH 40 LABOUR LAW (MUMBAI)
3) During pendency of arbitration proceeding before an arbitrator & 2 months
after conclusion of such proceedings.
4) During any period in which a settlement or award is in operation in respect
of matters covered by such settlement or award.
The object of these provisions seems to ensure a peaceful atmosphere to
enable a conciliation or adjudication or arbitration to go on smoothly.
Illegal Strikes & lockouts:
According to Sec. 24(1), a strike or lockout shall be illegal if it is:
1) Commenced or declared in contravention of Sec. 22 in a public utility service.
2) Commenced in contravention of Sec. 23 in any industrial establishment.
3) Continued in contravention of an order made by the appropriate Govt. under
Sec. 10 or an order made by arbitrator under Sec. 10 (A).
According to Sec. 24(2), where a strike or lockout in pursuance of an
industrial dispute has already commenced & is in existence at the time of reference
of a dispute to a board, Labour Court, Industrial or National tribunal, the
continuance of such strike or lockout shall not be deemed illegal provided that such
strike or lock out was not at its commencement in contravention of provisions of
this Act or continuance thereof was not prohibited under Sec. 10 or 10 (A).
According to Sec. 24(3) a lockout declared in consequence of illegal strike or
strike declared in consequence of illegal lock out shall not be deemed illegal.

2.5 Lay Off, Retrenchment & Closure:

Lay Off: It means the failure, refusal, or inability of an employer to give
employment to workman whose name is born on the muster roll of his industrial
establishment & who has not been retrenched.
The failure, refusal, or inability to give employment may be due to:
1) Shortage of coal, power, or raw materials.
2) Accumulation of stocks.
3) Breakdown of machinery.
4) Natural calamity.
5) Any other connected reason.
ALANGE’S LAW CLASSES, MAH 41 LABOUR LAW (MUMBAI)
A workman shall be deemed to have been laid off for any day if he presents
himself for work at establishment at appointed time for purpose & during normal
working hours of that day & he is not given employment by employer of his so
presenting himself.
Retrenchment: It means, "to end, conclude or cease.' The term retrenchment may
be analyzed as follows:
1) Retrenchment means the termination by employer of service of workman.
2) The termination may be for any reason.
3) But the termination should not be as measure of punishment by way of
disciplinary actions.
Following are not retrenchment:
1) Voluntary retirement of workman.
2) Retirement of workman on reaching the age of superannuation.
3) Termination of service of workman as result of non-renewal of contract of
employment.
4) Termination of service of workman on ground of continued ill-health.

Closure : It means the permanent closing down of place of employment or part

or a place of employment.
Application of Sec. 25 (C) to (E): (Section 25 A)
Sec. 25 (C) to 25 (E) shall not apply to industrial establishments to which
Chapter VB applies or
a) To industrial establishment in which less than 50 workman on an average per
working day have been employed in the preceding calendar month.
b) To industrial establishments which are of a seasonal character or in which
work is performed only intermittently.
If a question arises whether an industrial establishment is of a seasonal
character or whether work in performed therein intermittently the decision of
appropriate Govt. thereon shall be final.
Explanation:
ALANGE’S LAW CLASSES, MAH 42 LABOUR LAW (MUMBAI)
For purpose of Sec. 25(A) & Sec. 25(B) to (E) the industrial establishment
means:
1) A Factory as defined in the Factories Act 1946.
2) A Mine as defined in Mines Act 1952.
3) A Plantation defined in the Plantations Labour Act 1951.
Definition of continuous service Sec. 25(B):
A workman is said to be in continuous service for a period, if he is, for that
period, an uninterrupted service, including service which may be interrupted on
account of:
a) Sickness
b) Authorized leave
c) A strike which is not illegal.
d) Accident
e) Lock out or cessation of work which is not due to fault on the part of
workman.
Where a workman is not in continuous service for a period of 1 year, he shall
be deemed to be in continuous service under an employer for a period of 1 year, if
he has during period of 12 calendar moths preceding date with reference to which
calculation is to be made, actually worked under the employment for not less than:
1) 190 days in case of workman employed below ground in a mine.
2) 240 days, in any other case.
Likewise, a workman shall be deemed in continuous service for a period of 6
months, if he has during a period of 6 calendar months preceding the date with
reference to which calculation is to be made actually worked under the employment
not less than,
1) 95 days, in case of workman employed below ground in a mine &
2) 120 days in any other case.

Calculation of working days:

In computing the no. of days in which a workman has actually worked in an
industry, the employer shall include the days on which the workman has been.
ALANGE’S LAW CLASSES, MAH 43 LABOUR LAW (MUMBAI)
1) Laid off under an agreement or as permitted by standing orders or
under this Act or under any other law applicable to the industrial
establishment.
2) On leave with full wages, earned in the previous year.
3) Absent due to temporary disablement caused by accident arising out of
& in the course of his employment.
4) Maternity leave in case of a female worker, the total period of such
maternity leave does not exceed 26 weeks.
Right of Workmen Laid Off for Compensation: (Sec. 25 (c))
The right of workman to lay off compensation is designed to relieve the
hardship caused by unemployment due to no fault of his. It is based on ground of
human public policy. The rules regarding payment of compensation to a workman
who is laid off are as follows:
1) The workman must not be a Badli workman or a casual workman if he is to
be entitled to compensation.
2) His name must be born on the muster rolls of the industrial establishment.
3) He must have completed not less than 1 yr. of the continuous service.
4) If above conditions are fulfilled, the workman shall be paid compensation by
employer for all days during which he is laid off.
5) Rate of compensation shall be equal to 50% of total of basic wages &
dearness allowance that would have been payable to him if he had not been
laid off.
6) If during any period of 12 months if a workman is laid off for 45 days no such
compensation shall be payable to workman during period of 12 months after
expiry of first 45 days if there is agreement to that effect between employer
& worker.
7) Where a workman is laid off for a period of more than 45 days during a period
of 12 months, employer can lawfully retrench him. When employer does so
any compensation payable to workman for having been laid off during
preceding 12 months could be set off with compensation payable for
ALANGE’S LAW CLASSES, MAH 44 LABOUR LAW (MUMBAI)
retrenchment. Where employer decides to retrench a workman, he must
comply with conditions precedent to retrenchment in Sec. 25(F).
Workman not entitled to compensation in certain cases:
No compensation is payable to a workman who has been laid off in following
cases:
1) If he refuses to accept any alternative employment in same
establishment.
i) In any other establishment belonging to same employer situated
within same town or village or situated within radius of 5 miles
(8 km) from establishment to which he belongs.
ii) If in the opinion of employer, the alternative employment does
not call for any special skill or previous experience & can be
done by laid off workman.
iii) If the wages which would normally have been paid to workman
in his previous employment are offered for alternative
employment also.
2) If he does not present himself for work at establishment at appointed
time during normal working hours at least once a day.
3) If such laying off is due to a strike or slowing down of production on
the part of workman in another part of the establishment.
The management will be justified in refusing to give work to workman in one
part of establishment if there is strike by workman in another part of establishment.
Procedure for Retrenchment: (Sec. 25 (G))
The well recognized principle of retrenchment in industrial law is 'first come
last go' & 'last come first go'. This principle has been incorporated in Sec. 25(G).
The procedural protection provided under this section can be claimed by a workman
on the fulfillment of following conditions.
1) The workman must be a workman within the definition of workman under
Sec. 2 of this Act.
2) The workman should be an Indian Citizen.
ALANGE’S LAW CLASSES, MAH 45 LABOUR LAW (MUMBAI)
3) The workman should be employed in an industrial establishment which is an
industry as defined in this Act.
4) The workman should belong to particular category of workman in industrial
establishment.
5) There should be no agreement contrary to the 'last come first go' between
employer & workman. Any provision in the standing orders to above effect
shall be deemed to be agreement for purposes of this section.
The employer may not apply the principle 'last come first go' in following
two cases:
1) If by an agreement there is any contrary provision between the
workman & employer.
2) For any other reasons to be recorded by employer.
Conditions Precedent for Retrenchment: Sec. 25 (F)
No workman employed in any industry who has been in continuous service
for not less than 1 yr. under an employment shall be retrenched by that employer
until -
1) The workman has been given one months notice in writing. The notice
must indicate, the reason for retrenchment. Further the workman
cannot be retrenched untill period of notice is expired or workman has
been paid in lieu of such notice wages for the period of the notice.
2) the workman has been paid at the time of retrenchment compensation
which is equivalent to 15 days average pay for every completed year
of continuous service.
3) Notice in the prescribed manner is served on appropriate Govt. or such
authority as may be specified by appropriate Govt.
Re-employment of Retrenched Workmen Sec. 25(H):
This Sec. is based on known principle that when a workman has been
retrenched by employer on the ground of surplus staff, such workman should be
given an opportunity to join service whenever an occasion to employer another hand
arises.
ALANGE’S LAW CLASSES, MAH 46 LABOUR LAW (MUMBAI)
This Sec. imposes a statutory obligation on employer to give opportunity to
retrenched employee to offer themselves for reemployment.
In order to claim preference of employment under this Sec. a workman must
satiety following conditions.
1) He has been retrenched prior to re-employment
2) He should be a citizen of India.
3) He should offer himself of or re-employment in response to notice by
employer.
4) He should have been retrenched from same category of service in
industrial establishment in which re-employment is proposed.
Only a retrenched workman can claim benefit under Sec. 25(H) a dismissed,
discharged or a superannuated workman cannot claim benefit of re-employment.
When notice is given to a workman, he fails to offer himself for re-
employment, he will be disentitled from claiming the benefit of this section.
Special Provisions Relating to Lay-Off, Retrenchment & closure:
The Industrial Dispute Amendment Act 1976, added this Chapter V-B (Sec.
25 (K) to (S))
Application of Chapter V - B (Sec. 25(K))
The provisions of Chapter V - B (Sec. 25 (K) to (S)) shall apply to an
industrial establishment in which not less than 100 workers were employed on an
average per working day for preceding 12 months.
These provisions shall not apply to an establishment.
a. of a seasonal character or
b. In which work is performed only intermittently.
If a question arises whether an industrial establishment is of a seasonable
character or whether work is performed there in only intermittently, the decision of
the appropriate Govt. is final.
Definition (Sec. 25 (L)):
Industrial establishment means:
1. A Factory as defined under Factory's Act. 1948.
2. A Mine as defined under Mines Act. 1952.
ALANGE’S LAW CLASSES, MAH 47 LABOUR LAW (MUMBAI)
3. A Plantation defined under Plantations Labour Act. 1951.
The central Govt. shall be appropriate Govt. for the purpose of chapter V- B.
1. In relation to any co. in which not less than 51% of paid up share capital
is held by the central Govt. or.
2. In relation to any corporation established by any law made by
parliament.
Prohibition of Lay - Off (Sec. 25 (M)):
1. Lay off to be with permission from appropriate Govt. or special authority :
No workman whose name is born on the master roll shall be laid off by his
employer except with the prior permission of the appropriate Govt. or specified
authority.
2. Application to be made for Permission:
An application for permission shall be made by employer in the prescribed
manner stating the reasons of intended lay off & a copy be served on the workmen.
3. Application for permission to continue lay off in a mine:
Where the workman in a mine have been laid off for reasons of fire, flood,
explosion, etc. the employer shall apply in the prescribed manner to appropriate
Govt. for permission to continue the lay off.
4. Order granting or refusing permission:
Where an application for permission has been made the appropriate Govt.
may by order & for reasons to be recorded in writing grant or refuse to grant such
permission.
5. Presumption of Permission:
Where an application for permission has been made & the appropriate Govt.
does not communicate the order granting or refusing permission within 60 days, the
permission applied for shall, be deemed to have been granted.
6. Order binding on all parties:
The order of appropriate Govt. granting or refusing to grant permission shall
be final binding on all parties for 1 year.
7. Review of order:
ALANGE’S LAW CLASSES, MAH 48 LABOUR LAW (MUMBAI)
The appropriate Govt. may review its order granting or refusing to grant
permission.
8. Lay off illegal:
a. A lay off shall be deemed to be illegal.
b. Where no application for permission is made.
9. Exemption:
If the appropriate Govt. is satisfied that due to such exceptional circumstances
as accident or death of employer or the like, it is necessary to exempt, it may by
order that the above provisions shall not apply to such establishments.
10. Sec. 25 (C) to apply:
Where a workman is laid off lawful as above, the provisions of Sec. 25 (C)
shall apply.

11. Penalty for illegal lay off:

He penalty for illegal lay off is imprisonment up to 1 month or fine up to Rs.
1000/- or both.
Conditions Precedent to retrenchment of workman (Sec. 25 (n)) :
1. 3 months notice & Prior permission:
No workman who has been in continuous service for not less than one year
shall be retrenched until.
a. The workman has been given 3 months notice in writing indicating the
reasons for retrenchment & the period of notice has expired or the
workman has been paid wages for the period of notice.
b. The prior permission of the appropriate Govt. has been obtained on an
application made in this behalf.
2. Application for permission:
An application for permission shall be made by the employer in the prescribed
manner stating the reasons for intended retrenchment & a copy shall be served on
the workman concerned.
3. Order granting or refusing permission:
ALANGE’S LAW CLASSES, MAH 49 LABOUR LAW (MUMBAI)
Where an application for permission has been made, the appropriate Govt.
may grant or refuse such permission.
4. Presumption of permission:
If the appropriate Govt. does not communicate the order granting or refusing
permission within 60 days, the permission shall be deemed to have been granted.
5. Order binding an all parties:
An order of appropriate Govt. granting or refusing to grant permission shall
be final & binding on all parties concerned for 1 yr.
6. Review of Order:
The appropriate Govt. may review its order granting or refusing to grant
permission.
7. Consequences of illegal retrenchment:
Where no application for permission is made or the permission has been
refused, the retrenchment is illegal from the date on which the notice of
retrenchment was given to the workman. The workman shall be entitled to all the
benefits as if no notice has been given to him.
8. Exemption:
If the appropriate Govt. is satisfied that due to such exceptional circumstances
as accident or death of employer or like it is necessary to exempt, it may by order
direct that the above provision shall not apply to such establishment.
9. Compensation in respect of permission for retrenchment :
Worker is entitled to compensation as 15 days wages for every completed
year of service.
Procedure for closing an undertaking (Sec. 25(O)):
1. Application for permission:
An employer who intends to close down an undertaking shall apply to
appropriate Govt. at least 90 days before intended date of closure for permission.
2. Order granting or refusing permission :
The appropriate Govt. may after enquiry grant or refuse to grant such
permission.
ALANGE’S LAW CLASSES, MAH 50 LABOUR LAW (MUMBAI)
3. Presumption of permission :
Where the appropriate Govt. does not communicate the order granting or
refusing to grant permission within 60 days, the permission shall be deemed to have
been granted.
4. Order binding on all parties :
The order of appropriate Govt. granting or refusing to grant permission shall
be final & binding on all the parties for 1 year.
5. Review of order :
The appropriate Govt. may review its order granting or refusing permission.
6. Consequences of illegal closure :
Where no application for closure is made or permission refused the closure
shall be deemed to be illegal from the date of closure. In such case the workman
shall be entitled to all the benefits under any law for the time being in force as if the
undertaking had not been closed down.
7. Exemption :
Where the appropriate Govt. is satisfied that due to such exceptional
circumstances as accident or death of employer or like, it may by order direct that
the above provision shall not apply to such undertaking.
Penalties for Lay off, Retrenchment & Closure without Permission:
1. Penalty for illegal lay off :
The penalty for illegal lay off is imprisonment up to 1 month or fine up to Rs.
1000/- or both. (Sec. 25 (Q))
2. Penalty for illegal Retrenchment :
The penalty for illegal retrenchment is imprisonment up to 1 month & fine
up to Rs. 1000/- or both. (Sec. 25 (Q))
3. Penalty for illegal closure (Sec. 25 (R)) :
Any employer who close down an undertaking without complying with
provisions of Sec. 25 (O) (1) shall be punishable with imprisonment up to 6 months
or fine up to Rs.500/- or both.
Any employer who contravenes an order refusing to grant permission to close
down an undertaking or a direction given, shall be punishable with imprisonment
ALANGE’S LAW CLASSES, MAH 51 LABOUR LAW (MUMBAI)
upto 1 year or fine upto Rs. 5000/- or both, where the contravention is a continuing
one, the employer shall be punishable with a further fine upto Rs. 2000/- for every
day during which the contravention continues.

• PENALTIES
Penalty for Illegal strike & lock-out: (Sec. 26) :
1. To penalize a workman who commences, continues or otherwise acts in
furtherance of strikes, two conditions must be satisfied:
a. A workman who commences, continues or in some other manner act
in furtherance of strike &.
b. Such a strike must be illegal under the act.
Any workman found guilty of participating in an illegal strike shall be
punishable with imprisonment up to 1 month or fine up to Rs. 50/- or both.
An employer shall be punishable with imprisonment up to 1 month or fine up
to Rs. 1000/- or both if :
a. Such employer commences, continues or otherwise acts in furtherance
of a lock out.
b. Such a lock out is illegal under the Act.
Adjudicatory authorities under the Act have no jurisdiction to take
cognizance of an offence & impose the penalty, but a criminal court of competent
jurisdiction shall take cognizance of the offence on a complaint made by the
appropriate Govt.
Penalties for Breach of Settlement OR Award (Sec. 29) :
In order that a person may be penalized under this section, the following facts
must be proved:
1. An award or settlement in operation at the time of breach.
2. Such award or settlement must be valid.
3. Such award or settlement must be binding on the accused.
4. The accused must be responsible for committing breach of such
settlement or award &
ALANGE’S LAW CLASSES, MAH 52 LABOUR LAW (MUMBAI)
5. The appropriate Govt. must have made complaint regarding the breach
(to criminal court).
If the above requirement are fulfilled the accused shall be punishable with
imprisonment up to 6 months or fine or both.
If the breach is continuing the further fine up to Rs. 200/- for every day during
which the breach continues may be imposed.

CHAPTER III
The Maharashtra Recognition Of Trade Unions & Prevention of Unfair
Labour Practices Act 1971 -
Object:
The main object of this Act is to provide for -
1) The recognition of trade unions for facilitating collective bargaining for
certain undertakings.
2) To state their rights & obligations.
3) To confer certain powers on unrecognized unions.
4) To provide for declaring certain strike & lock outs as illegal strikes & lock
outs.
5) To define & provide for the prevention of certain unfair labour practices.
6) To constitute courts as independent machinery for carrying out the purposes
of according recognition to trade unions &
7) For enforcing the provisions relating to unfair practices.
8) To provide for matters connected with the purposes above said.
3.1 Concept Industry Labour Courts ULP
3.2 Authorities Under this Act (Sec. 4 to 9):
Following are the authorities established under the provisions of this Act.
A) Industrial Court:
1) The state Govt. shall by notification in official gazette constitute an industrial
court.
ALANGE’S LAW CLASSES, MAH 53 LABOUR LAW (MUMBAI)
2) The industrial court shall consist of not less than 3 members one of whom
shall be president.
3) Every member of industrial court shall be person who is not connected with
complaint referred to that court or with any industry directly affected by such
complaint.
But every member shall be deemed to be connected with a complaint or with
an industry by reason of his having shares in co. which is connected with or likely
to be affected by such complaint unless he discloses to state Govt. the nature &
extent of shares held by him in such Co. & in the opinion of state Govt. recorded in
writing, such member is not connected with complaint or industry.
4) Every member of industrial court shall be a person who is or has been a judge
of H.C. or is eligible for being appointed a judge of such court.
But that one member may be a person who is not so eligible, if he possesses
in the opinion of state Govt. expert knowledge of labour or industrial matters.
Duties of Industrial Court:
It shall be the duty of Industrial court -
1) To decide an application filed by a union for grant of recognition to it.
2) To decide an application by a union for grant of recognition to it, in place of
a union which has already been recognized under this Act.
3) To decide an application from another union or employer with withdrawal or
cancellation of recognition of a union.
4) To decide complaints relating to unfair labour practices except unfair labour
practices falling it item 1 of schedule IV i.e to discharge or dismiss employees
by way of victimization, without following principles of natural justice etc.
5) To assign work & to give directions to the Investigating Officers in matters
of verification of membership of unions & investigation of complaints
relating to unfair labour practices.
6) To decide references made to it on any point of law either by any Civil or
Criminal court &
7) To decide appeals under sec 42 of this Act.
ALANGE’S LAW CLASSES, MAH 54 LABOUR LAW (MUMBAI)
B) Labour Court (L.C).
The state Govt. shall by notification in official gazatle, constitute one or more
L.C's having jurisdiction in such local areas, as may be specified in such notification
& shall appoint persons having the prescribed qualifications to preside over such
courts.
But no person shall be so appointed unless he possesses qualifications other
than the qualification of age prescribed under Art. 134 of Constitution for being
eligible to enter the judicial service of State of Maharashtra & is not more than 60
yrs. of age.
Duties of L.C. :
It shall be the duty of L.C. to decide complaints relating to unfair labour
practices described in item 1 of Schedule IV & to try offences punishable under this
Act.
C) Investigating Officers:
The state Govt. may by notification in the official gazette appoint such no. of
IO’s for any area as it may consider necessary to assist the industrial court & L.C's.
in the discharge of their duties.
Duties of I.O. :
1) The I. O. shall be under the control of the I.C. & shall exercise powers &
perform duties imposed on him by the I.C.
2) It shall be the duty of an I.O. to assist the I.C. in matters of verification of
membership of unions & assist the I.C. & L.C. for investigating into
complaints relating to unfair labour practices.
3) It shall also be duty of an I.O. to report to the I.C. or as the case may be the
L.C. the existence of any unfair labour practices in any industry or
undertaking & the name & address of persons said to be engaged in unfair
labour practices & any other information which I.O. may deem fit to report
to I.C. or as the case may be, the L.C.
3.3 Recognition of Unions (Sec. 10 to 18) :
1) Application for recognition of Union :
ALANGE’S LAW CLASSES, MAH 55 LABOUR LAW (MUMBAI)
Any union which has for 6 months a membership of not less than 30% of
employees in any undertaking may apply in the prescribed form to the I.C. for being
registered as a recognised union for such undertaking.
2) Procedure of recognition of union:
a) On receipt of application & fees prescribed, not exceeding Rs. 5/- the I.C. if
it finds the application on preliminary scrutiny to be in order, cause notice to
be displayed on notice board of undertaking & calling other unions & the
employers & employees affected within a prescribed time, as to why
recognition should not be granted to applicant union.
b) If after considering the objections & after holding such enquiry, the I.C.
concludes that the conditions required for registration are satisfied, the I.C.
shall grant recognition to the applicant union & issue a certificate of such
recognition in prescribed form.
c) If I.C. comes to conclusion that any of the other unions has the largest
membership of employees in undertaking & the said other union has notified
to I.C. its claim to be registered as recognized union for such undertaking &
satisfies the conditions required for recognition, the I.C. shall grant
recognition to other union & issue a certificate of recognition in prescribed
form.
d) There shall not be more than one recognized union in respect of same
undertaking.
e) The I.C. shall not recognize any union, if the application is not bonafide in
the interest of employees but is made in interest of employer.
f) The I.C. shall not recognize any union if within 6 months before application,
the union has instigated, aided or assisted the commencement or continuation
of illegal strike.
3) Cancellation of recognition:
The I.C. shall cancel the recognition of union after giving show cause notice
& after holding an enquiry, if it is satisfied -
a) It was recognised under mistake, misrepresentation or fraud.
ALANGE’S LAW CLASSES, MAH 56 LABOUR LAW (MUMBAI)
b) Membership of union has for a continuous period of 6 months fallen below
the minimum required i.e. 30% of total employee.
c) The recognised union has failed to observe any of the conditions in Sec. 19.
d) The recognised union is not being conducted bonafide in the interest of
employee but in the interest of employer.
e) It has instigated, aided or assisted the commencement or continuation of a
illegal strike.
f) That its registration under Trade unions Act. 1926 is cancelled.
g) That another union has been recognised in place of a union recognised.
4) Recognition of other union :
a) If any union makes an application to the I.C. for being registered as a
recognised union in the place of a old recognised union for an undertaking on
the ground that it has the largest membership of employees in undertaking,
the I.C. shall if 2 yrs. has elapsed from the date of recognition direct old union
by a notice of show cause within 30 days as to why union now applying
should not be recognised in its place.
b) If the I.C. finds on preliminary scrutiny, that the application is in order, it
shall cause notice to be displayed on notice board & calling upon other unions
& employer & employees affected to show cause within a prescribed time as
to why recognition should not be granted.
c) If after considering the objections, & holding enquiry, the I.C. comes to the
conclusion that the union applying complies with conditions necessary for
recognition & larger membership that the recognised union, the I.C. shall
recognise the union applying in place of the recognised union & issue a
certificate of recognition in prescribed form.
d) If the I.C. comes to the conclusion that any other union has the largest
membership of employees & has notified its claim to be registered as
recognised union & satisfies conditions required for recognition, the I.C. shall
grant recognition to other union & issue a certificate of recognition in
prescribed form.
e) Every application shall be disposed off within 3 months.
ALANGE’S LAW CLASSES, MAH 57 LABOUR LAW (MUMBAI)
5) Application for re-recognition :
Any union the recognition of which has been cancelled may at any time after
3 months & on payment of fees apply again to the I.C. for recognition.
6) Liability of union or members :
The cancellation of recgnition of a union shall not relieve the union or any
member from any penalty or liability incurred under this Act prior to such
cancellation.
7) Publication of Order :
Every order of I.C. passed as above regarding recognition of union shall be
final & shall be published in the prescribed manner.
8) Recognition of union for more than one undertaking :
A union may be recognised for more than one undertaking.

Obligations & Rights of Recognised unions (Sec. 19 to 21) :

The rules of a union seeking recognition shall provide for following matters
& provision thereof shall be duly observed by the union.
A) Obligations of recognised unions (Sec. 19) :
1) The membership subscription shall not be less than 50 paisa per
months.
2) The executive committee shall meet at intervals of not more than 3
months.
3) All resolutions passed by excutive committee or general body of union
shall be reported in a minute book.
4) An auditor appointed by the state Govt. may audit its account at least
once in each financial year.
B) Rights of Recognised union : (Section. 20)
Such officers, members of the office staff & members of a recognized union
as may be authorised by the rules made by state Govt. shall have a right:
1) To collect sums payable by members to the union on the premises where
wages are paid to them.
ALANGE’S LAW CLASSES, MAH 58 LABOUR LAW (MUMBAI)
2) To put up a notice board on the premises of the undertaking & affix notice
thereon.
3) For the purpose of the prevention or settlement of an industrial dispute.
a) To hold discussions on the premises of the undertaking with employees
concerned.
b) To meet & discuss with employer the grievances of employees employed in
his undertaking.
c) To inspect in an undertaking any place where any employee of the
undertaking is employed.
4) To appear on behalf of any employee in any domestic or departmental enquiry
held by the employer.
C) Right to appear in proceedings : (Section 21)
No employee in an undertaking shall be allowed to appear or act in a
proceeding relating to unfair labour practices specified in items 2 & 6 of schedule
IV except through the recognised union.

Rights of unrecognized unions (Sec. 22):

Such officers, members of the office staff & members of any union (other
than a recognised union) as may be authorised or under the rules made in this behalf
by the state govt. shall have a right -
1) To meet & discuss with an employer or any person appointed by him in that
behalf, the grievances of any individual member relating to his discharge,
retrenchment, termination of service, suspension.
2) To appear on behalf of any of its members employed in the undertaking in
any domestic or departmental enquiry held by employer.

3.4 Illegal Strikes and Lock Out: - (Section. 24)

A) Illegal Strike:
It means a strike which is commenced or continued:
1) Without giving to the employer notice of strike in the prescribed form or
within 14 days of giving of such notice.
ALANGE’S LAW CLASSES, MAH 59 LABOUR LAW (MUMBAI)
2) Where there is a recognised union, without obtaining the vote of majority of
members of union in favour of strike before the notice of strike is given.
3) During the pendency of conciliation proceeding & 7 days after conclusion of
such proceeding in respect of matters covered by notice of strike.
4) Where submission in respect of matter covered by notice of strike is covered
by the Bombay Act, before such submission is lawfully revoked.
5) Where an industrial dispute in respect of matter covered by notice of strike
has been referred to arbitration, L.C. or I.C., during the arbitration
proceedings or before the date on which the arbitration proceeding are
completed or date on which award of arbitration comes into operation
whichever is later.
6) During the pendency of arbitration proceedings before an arbitrator under the
central Act, & before the date on which arbitration proceeding are concluded.
7) In cases where industrial dispute is referred to Arbitration of L.C. or I.C.
under Bombay Act, during such arbitral proceeding on before the date on
which proceeding is completed & on the date on which the award of
arbitration comes into force whichever is later.
8) In cases where an industrial dispute has been referred to the adjudication of
IT, LC under central Act, during the pendency of such proceeding & before
the conclusion of such proceeding, if such proceeding in respect of any matter
covered by notice of strike.
B) Illegal Lock-out:
Illegal Lock out means which is commenced or continued -
1) Without giving to employees, a notice of lock out in the prescribed form or
within 14 days of the giving of such notice.
2) During the pendency of conciliation proceeding & 7 days after the conclusion
of such proceeding, in respect of matters covered by the notice of lock out.
3) During the period in a submission in respect of any of the matters covered by
the notice of lock out is registered under the Bombay Act before such
submission is lawfully revoked.
ALANGE’S LAW CLASSES, MAH 60 LABOUR LAW (MUMBAI)
4) Where an industrial Dispute in respect of matter covered by the notice of lock
out has been referred to the arbitration of a Labour Court or the Induatrial
Court under the Bombay Act.
5) During the pendency of arbitration proceedings under cnetral Act. & before
the date on which the arbitration proceedings are concluded, if such
proceedings are in respect of any of the matters covered by the notice of lock
out.
6) In cases where an industrial dispute has been referred to the arbitration of
Labour Court or Industrial Court compulsorily under the Bombay Act, during
such arbitration proceedings.
7) In cases where an Industrial Dispute has been referred to the adjudication of
Industrial Tribunal or Labour Court under central Act during the pendency of
such proceedings.

3.5 Unfair Labour Practices (Sec. 26-29) ULP.

Meaning :
ULP means ULP as defined in Sec. 26. According to Sec. 26 ULP means any
of the practices listed in Schedule II, III & IV.
Schedule - II:
ULP on the part of employer - like -
1) Discharging or punishing an employee.
2) Changing seniority of employees.
3) To refuse to bargain collectively.
4) Continuing illegal lock out, etc.
Schedule - III :
ULP on the part of Trade Union- like -
1) To instigate an illegal strike.
2) To coerce employees to join in trade union.
3) Refuse to bargain collectively in good faith with the employer.
4) To instigate coercive actions, like 'Gherao' of any member of management,
go slow movement of workers etc.
ALANGE’S LAW CLASSES, MAH 61 LABOUR LAW (MUMBAI)
Schedule - IV:
General ULP on the part of employer:-
1) To discharge or dismiss employees by way of victimization.
2) To discharge or dismiss against principles of natural Justice.
3) To abolish the work of regular nature.
4) To transfer an employee malafide from one place to another.
5) To indulge in act of force or violence.
Provisions:
1. Prohibition on engaging in ULP's (Sec. 27):
No employer or union or no employee shall engage in any ULP.
2. Procedure for dealing with complaints relating to ULP's (Sec. 28) :
a. Where any person is engaged in or engaging in any ULP then any
union, the employee or employer or Investigating officer, may within
90 days of the occurrence of such ULP file a complaint before the court
competent to deal with such complaint. The court may entertain a
complaint after 90 days if good & sufficient reasons are shown for
delay.
b. The court shall take decision on every such complaint within 6 months.
c. On receipt of complaint, the court may, first cause an investigation into
the said complaint to be made by the I.O. direct that a report in this
matter may be submitted by him to the court within specified period.
d. While investigating any complaint, the I.O. may visit the undertaking,
where the practice alleged is said to have occurred make such
enquiries as he considers necessary. He may also make efforts to
promote settlement of the complaint.
e. The I.O. shall after investigating the complaint submit report to court
within time specified, setting out the full facts, circumstances of the
case & the efforts made by him in settling the complaint. The court
shall on demand supply copy of report to both parties.
f. If, on receipt of report of the I.O., the Court find that the complaint has
not been settled satisfactorily & that facts & circumstances to the case
ALANGE’S LAW CLASSES, MAH 62 LABOUR LAW (MUMBAI)
required that the matter should be further considered by it, the court
shall proceed to consider it & give its decision.
g. The decision of court shall be in writing, shall be in the form of order.
The order of the court shall be final & shall not be called in question in
any civil or criminal court.
h. The court shall cause its order to be published in such manner as may
be prescribed. The order of court shall become enforceable from the
date specified in the order.
i. The court shall forward a copy of its order to the [Link]. such officers
of the C. Govt. as may be prescribed.
3. Parties on whom order of the court shall be binding (Sec. 29):
An order of the court shall be binding on -
a) All parties to the complaint
b) All parties who were summoned to appear as parties to the complaint,
whether they appear or not, unless the court is of openion that they were
improperly made parties.
c) In the case of employer who is a party to the complaint before such court in
respect of the undertaking to which the complaints relates, his heirs,
successors or assign in respect of the undertaking to which the complaint
relates.
d) Where the parties referred in clause (a) or (b) is composed of employees, all
persons, who on the date of the complaint are employed in the undertaking to
which the complaint relates & all persons who may be subsequently
employed in the undertaking.

3.6 Powers of Courts (Sec. 30-37) :

A) Power of Industrial Court (IC) & Labour Courts (LC) :
1. Where a court decides that any person named in the complaint has engaged
in any ULP, it may in its order :
a. Declare that an ULP has been engaged or engaging in by that person &
specify any other person who has engaged or engaging in ULP.
ALANGE’S LAW CLASSES, MAH 63 LABOUR LAW (MUMBAI)
b. Direct all such persons to cease from such ULP & take any affirmative action
as may in the opinion of the court be necessary to effectuate the policy of the
Act. e.g. Payment of reasonable compensation to the employee affected by
ULP or reinstatement of the employee with back wages, etc.
c. Where recognised union has engaged in or is engaging in any ULP, direct
that its recognition shall be cancelled or that all or any of its rights under this
Act shall be suspended.
2. In any proceeding under this Act, the court may pass such interim orders as
it deems just & proper, pending final decision. e.g. directions to the person to
withdraw temporarily the practice complained of as an ULP.
The court may on an application review any interim orders passed by it.
3. For the purpose of holding on enquiry or proceeding under this Act, the Court,
shall have the same powers as are vested in court in respect of -
a. Proof of facts by affidavit.
b. Summoning & enforcing attendance of any person & examining him on oath.
c. Compelling the production of document.
d. Issuing commissions for the examination of witnesses.
e. The court shall also have powers to call upon any of the parties to proceeding
before it to furnish in writing & in such forms any information which is
considered relevant for the purpose so called upon shall furnish the
information to the best of his knowledge & belief & if so required in such
manner as may be prescribed.
B. Consequences of Non-appearance of parties:
Where in any proceeding before the court, if either party does not appear,
inspite of notice of hearing have been duly served on it, when the matter is called
on for hearing the court may either adjourn the hearing of the matter or proceed ex-
party & make such order as it thinks fit.
Where any order is made ex-party the aggrieved party may within 30 days
make an application to the Court, to set aside such order. If the court is satisfied
that, there was sufficient cause for non-appearance of the aggrieved party, it may
set aside the order so made & shall appoint a date for proceeding with the matter.
ALANGE’S LAW CLASSES, MAH 64 LABOUR LAW (MUMBAI)
But no order shall be set aside on any such application unless notice has been served
on the opposite party.
C. Power of Court to decide all connected matter: -
The court shall have the power to decide all matters arising out of any
application or complaint referred to it for the decision under any of the provisions
of the Act.
D. Regulation to be made by Industrial (IC) Court:
1. The IC may make regulations consistent with the provisions of this Act &
rules made there under regulating its procedure.
2. Particularly such regulations may provide for the formation of branches
consisting of one or more of its members & the exercise by such bench of
jurisdiction & powers vested in them, including provisions of formation of a
full bench consisting of 3 members. But no bench shall consist only of a
member who has been & at the time of his appointment, not eligible for
appointment as a judge of H.C.
3. Every regulation made under this section shall be published in official
gazette.
4. Every proceeding before the Court shall be deemed to be a judicial
proceeding.
5. The Court shall have power to direct by whom the cost of any proceeding
shall be made.
E. Execution of Orders as to Costs:
An order made by the court regarding the costs of a proceeding may be
produced before the court of the civil judge & such a civil court shall execute such
a order as if it were a decree for the payment of money made by itself in a suit.
F. Law declared by IC to be binding:
The determination of any question of law in any order, decision or declaration
passed or made by the full bench of the IC shall be binding & shall be followed in
all proceedings under this Act.
ALANGE’S LAW CLASSES, MAH 65 LABOUR LAW (MUMBAI)
G. Authorized officer to appear in any proceeding before the Court:
They may authorize & direct any officer of Govt. to appear in any proceeding
before the court by giving notice to such court, & on such notice being given, such
officer shall be entitled to appear in such proceeding & to be heard by the Court.
H. Power of Investigation Officer (IO) :
1. An IO shall exercise the power conferred on him by this Act & shall perform
such duties as may be assigned by the court.
2. For exercising powers & duties an IO may at any time during working hours
enter & inspect :
a. Any place used for any undertaking.
b. Any place used as officer of any union.
c. Any premises provided by an employer for the residence of his
employees.
3. All particulars contained in information obtained from any document
inspected or called by him shall be treated as confidential.
4. An I.O. may after notice call a meeting of employees & require the employer
to affix a written notice of meeting in such premises.
5. An I.O. shall be entitled to appear in any proceedings under this Act.
6. An I.O. may call for or inspect any document which he considers relevant to
the complaint & the I.O. shall have the same powers of civil court under
C.P.C. in respect of compelling production of documents.

Penalties:
1. Penalty for disclosure of confidential information (Sec.47)
If an Investigating Officer or any person present at, or concerned in, any
proceeding under this Act wilfully discloses any information or the contents of any
document in contravention of the provisions of this Act, he shall, on conviction, on
a complaint made by the party who gave the information or produced the document
in such proceeding, be punished with fine which may extend to one thousand
rupees.

2. Contempt’s of Industrial or Labour Courts: - (Sec.48)

(1) Any person who fails to comply with any order of the Court under clause (b) of
sub-section (1) or sub-section (2) of section 30 of this Act shall, on conviction, be
ALANGE’S LAW CLASSES, MAH 66 LABOUR LAW (MUMBAI)
punished with imprisonment which may extend to three months or with fine which
may extend to five thousand rupees.
(2) If any person, —
(a) when ordered by the Industrial Court or a Labour Court to produceor deliver
up any document or to furnish information being legally bound so to do,
intentionally omits to do so ; or
(b)when required by the Industrial Court or a Labour Court to bind himselfby an
oath or affirmation to state the truth refuses to do so ;
(c) beinglegally bound to state the truth on any subject to the IndustrialCourt or
a Labour Court refuses to answer any question demanded of him touching such
subject by such Court ; or
(d)intentionallyoffers any insult or causes any interruption to theIndustrial
Court or a Labour Court at any stage of its judicial proceeding, he shall, on
conviction, be punished with imprisonment for a term which may extend to six
months or with fine which may extend to one thousand rupees or with both.
(3) If any person refuses to sign any statement made by him, when required to
do so by the Industrial Court or a Labour Court, he shall, on conviction, be punished
with imprisonment for a term which may extend to three months or with fine which
may extend to five hundred rupees or with both.
(4) If any offence under sub-section (2) or (3) is committed in the view or
presence of the Industrial Court or as the case may be, a Labour Court, such Court
may, after recording the facts constituting the offence and the statement of the
accused as provided in the *Code of Criminal Procedure, 1898, forward the case to
a Magistrate having jurisdiction to try the same, and may require security to be given
for the appearance of the accused person before such Magistrate or, if sufficient
security is not given, shall forward such person in custody to such Magistrate. The
Magistrate to whom any case is so forwarded shall proceed to hear the complaint
against the accused person in the manner provided in the said Code of Criminal
Procedure.
(5) If any person commits any act or publishes any writing which is calculated to
improperly influence the Industrial Court, or a Labour Court or to bring such Court
or a member or a Judge thereof into disrepute or contempt or to lower its or his
authority, or to interfere with the lawful process of any such Court, such person shall
be deemed to be guilty of contempt of such Court.
(6) In the case of contempt of itself, the Industrial Court shall record the facts
constituting such contempt, and make a report in that behalf to the High Court.
ALANGE’S LAW CLASSES, MAH 67 LABOUR LAW (MUMBAI)
(7) In the case of contempt of a Labour Court, such Court shall record the facts
constituting such contempt, and make a report in that behalf to the Industrial Court
; and thereupon, the Industrial Court may, if it considers it expedient to do so,
forward the report to the High Court.
(8) When any intimation or report in respect of any contempt is receivedby the
High Court under sub-section (6) or (7), the High Court shall deal with such
contempt as if it were contempt of itself, and shall have and exercise in respect of it
the same jurisdiction, powers and authority in accordance with the same procedure
and practice as it has and exercises in respect of contempt of itself.
(3) Penalty for obstructing officers from carrying out their duties and for
failure to produce documents or to comply with requisition or order. (Sec.49)
Any person who wilfully,— prevents or obstructs officers, members of
the office staff, or members of any union from exercising any of their rights
conferred by this Act ;
(i) refuses entry to an Investigating Officer to any place which he and
forfailure to is entitled to enter ;
(ii) fails to produce any document which he is required to produce ; OR
(iii) fails to comply with any requisition or order issued to him by or under
the provisions of this Act or the rules made thereunder ; shall, on conviction, be
punished with fine which may extend to five hundred rupees.
4. Recovery of money due from employer:- (Sec.50)
Where any money is due to an employee from an employer under money due
from an order passed by the Court under Chapter VI, the employee himself or any
employer. other person authorised by him in writing in this behalf, or in the case of
death of the employee, his assignee or heirs may, without prejudice to any other
mode of recovery, make an application to the Court for the recovery of money due
to him, and if the Court is satisfied that any money is so due, it shall issue a
certificate for that amount to the Collector, who shall, proceed to recover the same
in the manner as an arrear of land revenue :
Provided that, every such application shall be made within one year from the
date on which the money became due to the employee from the employer :
Provided further that, any such application may be entertained after the expiry
of the said period of one year, if the court is satisfied that the applicant had sufficient
cause for not making the application within the said period.
5. Recovery of fines (Sec.51)

The amount of any fine imposed under this Chapter shall be fines. recoverable
as arrear of land revenue.
ALANGE’S LAW CLASSES, MAH 68 LABOUR LAW (MUMBAI)
CHAPTER – IV
The Factories Act 1948

4.1 Concepts (Sec. 2):-

1) Hazardous Process:-

It means any process or activity in relation to an industry specified in

the Ist Schedule where unless special care is taken, raw materials used,
therein or the intermediate or finished products, by products wastes, effluent
thereof would :-

a) cause material impairment to the health of persons engaged in or

connected therewith or

b) result in the pollution of the general environment.

Provided that the State Govt. may by notification in official gazette

amend the I Schedule by way of addition, omission or variation of any
industry specified in said Schedule.

2) Manufacturing Process [Mfg. Process ] :-

Means any process for –

a) making, altering, repairing, ornamenting, finishing, packing,

oiling, washing, cleaning, breaking up, demolishing or otherwise
treating or adopting any article or substance with view to use,
sale, transport, delivery or disposal or

b) pumping oil, water, sewage or any other substance,

c) generating, transforming or transmitting power,

d) Composing types for printing, printing by letter press,

lithography, photography or other similar process or book
binding.

e) Constructing, reconstructing, repairing, refitting, finishing or

breaking up ships or vessels.
ALANGE’S LAW CLASSES, MAH 69 LABOUR LAW (MUMBAI)
It was held in State of Bombay V/s. Alisaheb Kasim Tamboli, that Bidi
making is a manufacturing process.

In Nagpur Electric Lights & Power Co. Ltd. V/s. Regional

Director, the S.C. held that the process of transforming and transmitting
electric energy are mfg. processes.

In Aldeshwar V/s. Bomaby State, salt was manufactured from sea

water by applying different processes which shows that it is due to human
agency aided by natural sources that salt is extracted from sea water. The
process carried in salt works comes within defintion of manufacturing
process.

3) Worker :-

Means a person employed directly or by or through any agency

(including a contractor) with or without knowledge of principal employer
whether for remuneration or not in any mfg. process or premises used for
mfg. process or in any other kind of work incidental to or connected with
mfg. process or subject of mfg. process but worker does not include any
member of armed forces of union.

Kinds of worker:-

1) Adult worker: - i.e. who has completed his age of 18 yrs.

2) Child worker i.e. who is not completed his age of 15 years.

3) Adolescent i.e. who has completed his age of 15 yrs. but not
completed 18 yrs. of age.

4) Young person i.e. either child or adolescent i.e. who has not
completed his age of 18 yrs.

In State of Bombay V/s. Alisaheb Kashim Tamboli, it was held by

Bombay H.C. that a person, in order to be a worker need not necessarily
receive wages. Therefore a person working on any manufacturing process in
a factory is a worker even though he does not receive wages.
ALANGE’S LAW CLASSES, MAH 70 LABOUR LAW (MUMBAI)
In Re K.M.P. Kodar Maideen V/s. State, it was held that a
watchman will be a worker only if the duties actually discharged by him
sufficiently show that he is employed in any kind of work incidental to or
connected with manufacturing process otherwise he is not worker. Only
doing work of watchman is not workman.

4 ) Factory :-

Means any premises including the precincts thereof –

a) whereon ten or more workers are working or were working on any day
of preceding 12 months and in any part of which a mfg. process is being
carried on with the aid of power or is ordinarily so carried on or

b) Whereon 20 or more workers are working or were working on any of

the preceding 12 months and in any part of which a mfg. process is
being carried on without the aid of power or is ordinarily so carried on.

In short factory means premises, where 10 or more workers are working

if power is used or 20 or more workers are working, if power is not used, in
a mfg. process.

Factory does not include a Mine subject to operation of the Mines Act
1952 or a Mobile Unit belonging to Armed forces of the Union, a Railway
running shed or Hotel, Restaurant or eating place.

➢ Explanation: -

For computing the no. of workers, all the workers in different

groups and relays in a day shall be taken into account.

II) The mere fact that an Electronic Data Processing Unit or a Computer
unit is installed in any premises, shall not be construed to make it a factory
if no mfg. process is being carried on in such premises.

The Phrase ‘Premises’ including precincts’ means both premises with

and premises without precincts. Where premises is a building it would
ALANGE’S LAW CLASSES, MAH 71 LABOUR LAW (MUMBAI)
include precincts also but where premises are land they would not have
precincts. Thus both building and lands are covered by above expression.

It was held in State of Bombay V/s. Bhiwandiwala that lands in which

process of mfg. salt is carried on is a factory.

5) Occupier :-

Occupier of a factory means, the person who has ultimate control over
the affairs of factory.

Provided that:

1) In the case of a firm or other association of individuals, any one of the

individual partners or members thereof shall be deemed to be the
occupier.

2) In case of co. any of director shall be deemed to be occupier.

3) In case of factory owned or controlled by Central or State Govt. or any

local authority, the person or persons appointed to manage the affairs
of the factory by the Central Govt., the State Govt. or local authority
as the case may shall be deemed to be the occupier.

In Sohanlal V/s. State of Rajasthan, it was held that a partner in a firm

who has ultimate control over the affairs of a factory is an occupier.

It was held in Kirloskar Co. Ltd. V/s. V. A. More, that an occupier

need not be a director of the co. Any person who had ultimate control over
the affairs of factory can be nominated as occupier.

4.2 Provisions relating to health, safety, and welfare of workers:

A. Health:

Sec. 11 to 20 of Factory’s Act provides health and cleanliness measures

which an occupier has to take to provide facilities in his factory for workers.
They are as given below:-
 ALANGE’S LAW CLASSES, MAH 72 LABOUR LAW (MUMBAI)
1. Cleanliness (Sec. 11) :-

1. Every factory shall be kept clean, free from effluvia arising out of any
drain, privy or other nuisance.

2. The accumulation of dirt and refuse shall be removed daily by sweeping

or other effective method.

3. The floor of every work room shall be cleaned at least once in a week
by washing with disinfectant or other effective method.

4. The walls and stair cases shall be repainted once in every 5 years. The
walls white washed in every 12 months.

5. If the occupier finds it is not possible to comply with the above

requirements due to any justifiable reason, he must seek exemption
from the State Govt. specifying alternative methods for keeping the
factory in a clean state.

2. Disposal of Waste and effluents (Sec. 12)

Every factory must make effective arrangements for treatment of waste

and effluent resulting from the manufacturing process so as to render them
innocuous and for their disposal.

The State Govt. may make rules prescribing arrangements to be made

for the above purpose.

3. Ventilation & Temperature:-

Effective and suitable provisions shall be made in every factory for

securing and maintaining in every week room:-

a) adequate ventilation by the circulation of fresh air &

b) such a temperature as will secure to workers, reasonable

conditions of comfort and prevent injury to health.

The walls and roofs must be made of such material as to maintain the
temperature as low as possible.
ALANGE’S LAW CLASSES, MAH 73 LABOUR LAW (MUMBAI)
The State Govt. may make rules prescribing a standard of adequate
ventilation and reasonable temperature.

The Chief Inspector may direct the occupier to take certain measures
for keeping adequate ventilation and reasonable temperature.

4. Dust and Fume (Sec. 14) :- Effective measures should be adopted to keep
the workrooms free from dust and fume.

Every factory in which by reason of manufacturing process, there is

given off any dust or fume or other impurity likely to be injurious to the
workers, effective measures shall be taken to prevent its accumulation in
work room.

Exhaust appliances or other safeguards must be used for this purpose.

5. Artificial Humidification (Sec. 15) :-

In respect of all factories in which the humidity of air is artificially

increased, the State Govt. may make rules :-

a) prescribing standards of humidification,

b) regulating the methods used for artificially increasing the

humidity of air.

c) directing prescribed tests for determining the humidity of the air

to be correctly carried out and recorded.

d) Prescribing methods to be adopted for securing adequate

ventilation and cooling of the air in work room.

6. Over Crowding (Sec. 16) :-

a) No room in factory shall be over crowded to an extent injurious

to health of workers.

b) There shall be in every work room at least 9.9 cubic meters for
old factory and 14.2 cubic meters for new factories, of space for
every worker employed therein.
ALANGE’S LAW CLASSES, MAH 74 LABOUR LAW (MUMBAI)
c) The Chief Inspector requires that there shall be hosted an each
workroom a notice specifying the maximum nos. of workers who
may be employed in the room.

7. Lighting (Sec. 17) :-

Every part of Factory where workers are working or passing there shall
be provided and maintained sufficient and suitable lighting, natural, artificial
or both.

All glazed windows & skylight used for the lighting shall be kept clean
on both the inner and outer surfaces.

The State Govt. may prescribe standards of sufficient and suitable

lighting for factories.

8. Drinking Water (Sec. 18) :-

Effective arrangements shall be made to provide and maintain at

suitable points conveniently, situated for all workers, a sufficient supply of
drinking water.

Such points shall be marked, ‘Drinking Water’ in a language

understood by majority of workers.

No such point shall be situated, within 6 meters of any washing place,

urinal, latrine, spitton, etc.

In every factory where more than 250 workers are employed,

provisions should be made for cooling drinking water during hot season.

9. Latrine and Urinals ( Sec. 19) :-

a) Sufficient latrine and urinal accommodation of prescribed type

shall be provided conveniently situated.

b) Separate enclosed accommodation shall provided for male and

female workers.

c) Such accommodation shall be adequately lighted and ventilated.

ALANGE’S LAW CLASSES, MAH 75 LABOUR LAW (MUMBAI)
d) Such accommodation shall be maintained in a clean and sanitary
conditions.

e) Sweepers shall be employed to clean latrines, urinals and work

places.

10. Spittoons (Sec. 20)

Every factory shall provide spittoons to convenient places in clean and

hygienic conditions.

The management may prohibit spitting in other places except in

spittoons by displaying notice at suitable places.

Any worker who contravenes this, shall be punished with fine upto
Rs.5/-.

B. Safety (Sec. 21-41) :-

Sec. 21 to 41 of Factory’s Act relates to the provisions for safety of

workers. Some of the important provisions are as follows:-

Fencing of Machinery (Sec. 21) :-

1. Every dangerous machinery in a factory must be properly fenced so as

there may not offer any accident resulting injury to workers in factory.

2. Every moving part of the prime mover and every flywheel connected
to prime mover shall be fenced.

3. The head race and trail race of every water wheel and water turbine
shall be fenced.

4. Every part of an electric generator, motor or rotatory convertor shall be

fenced.

5. Every part of a stock bar which projects beyond a head stock of a

turbine shall be fenced.

6. Every dangerous part of any other machinery which is likely to cause

accident shall be fenced.
ALANGE’S LAW CLASSES, MAH 76 LABOUR LAW (MUMBAI)
Employment of young persons on dangerous machines (Sec. 23) :-

No young person shall be required or allowed to work at any machine

which is dangerous unless:-

1. He has been fully instructed as to the dangers arising in connection

with the machines and precautions to be observed and

2. a) Has received sufficient training in work at the machine or

b) Is under adequate supervision by a person who had thorough

knowledge and experience of the machine.

Prohibition of employment of women and children near cotton

openers(Sec. 27) :-

No woman or children shall be employed to any part of a factory for

pressing cotton in which a cotton opener is at work.

But if the end of a cotton opener is in a room separated from, by a

partition, women and children may be employed on the side of the partition
where there is no danger.

Excessive Weights (Sec. 34) :-

No person shall be employed in any factory to lift, carry or move any

load so heavy as to be likely to cause him injury.

The State Govt. is empowered to make rules prescribing the minimum

weights which may be lifted, carried or moved by adult men, women,
adolescents and children employed.

Protection to Eyes (Sec. 35) :-

Effective screens or suitable goggles shall be provided for the

protection of persons employed on or in the immediate vicinity of the
process, if such process involves :-

1) Risk of injury to the eyes or

2) Risk to the eyes by reason of exposure to exclusive sunlight.

ALANGE’S LAW CLASSES, MAH 77 LABOUR LAW (MUMBAI)
Precaution against dangerous fumes, gases, in case of fire [Sec. 36 to 38]: -

1. Precaution against dangerous fumes, gases etc.: -

No person shall be required or allowed to enter any chamber, tank, pit

or other confined space in any factory in which any gas fume, vapour or dust
is likely to be present involving serious risk.

2. Precaution in case of fire (Sec. 38) :-

In every factory, all practicable measures shall be taken to prevent

outbreak of fire and its spread and to provide and to maintain: -

a) safe means of escape for all persons in the event of fire &

b) the necessary equipment and facilities for extinguishing fire.

Safety of building and machinery (Sec. 40):-

If it appears to Inspector that any building or part of building or any

part of the ways, machinery or plant is in such a dangerous condition, he may
serve on the occupier an order specifying the measures which shall be
adopted.

Safety Officers (Sec. 40 B) :-

In every factory :-

1) where 1000 or more workers are ordinarily employed or where in the

opinion of State Govt. any manufacturing process involves risk of
bodily injury, poisoning, disease or any other hazard, the occupier shall
employ such number of safety officers as may be specified.

2) The duties, qualifications and conditions of service of safety officers

shall be such as may be prescribed by the State Govt.

C. Welfare :-

Sec. 42 to 50 relates to facilities of Welfare of workers as follows: -

Facilities for washing, storing and drying clothing, sitting: -

1) Washing facilities :-
ALANGE’S LAW CLASSES, MAH 78 LABOUR LAW (MUMBAI)
In every factory:-

a) adequate and suitable facilities for washing shall be provided and

maintained for use of workers.

b) separate and adequately screened facilities shall be provided for use of

male and female workers.

c) such facilities shall be conveniently accessible and shall be kept clean.

The State Govt. is empowered to prescribe standards of adequate and

suitable facilities for washing.

2) Facilities for storing, drying clothing: - State Govt. is empowered to

make rules in respect of factory, class, description of factories,
requiring the provisions therein suitable places for storing of clothing
not warn during working hours and for drying of wet clothing.

3) Facilities for sitting (Sec. 44) :-

a) In every factory suitable arrangements for sitting shall be provided and

maintained for all workers obliged to work in standing position, in
order that they may take advantage of any opportunities for rest which
may occur in course of their work.

b) if in opinion of Chief Inspector, the workers engaged are above to do

their work efficiently in a sitting position, he may by order in writing
require the occupier to provide sitting arrangements to workers.

c) The State Govt. is empowered to declare that, facilities for sitting shall
not apply to any specified class of factories.

4) First aid appliances (Sec. 45) :-

In every factory there shall be provided first aid boxes with the
prescribed contents for every 150 workers employed in the factory.

First aid box shall be kept in the charge of a responsible person who
holds a certificate in first aid treatment.

Canteens:-
ALANGE’S LAW CLASSES, MAH 79 LABOUR LAW (MUMBAI)
The State Govt. may make rules requiring that in any factory where
more than 250 workers are ordinarily employed, a canteen or canteens shall
be provided and maintained by the occupier for the use of the workers.

The State Govt. may also make rules providing rules for : -

a) date by which canteen shall be provided

b) standards of construction, accommodation, furniture and other

equipment of canteen.

c) the food stuffs to be served and their charges.

d) the constitution of a managing committee for canteen with

workers representation.

e) the items of expenditure in the running of canteen which are not

to be taken into account in fixing the cost of food stuffs and
which shall be borne by the employer.

f) delegation to Chief Inspector, subject to such conditions as may

be prescribed, of powers to make rules regarding food stuffs and
their charges.

Rest rooms, shelters and lunch rooms :-

1) In every factory where more than 150 workers are ordinarily employed,
adequate and suitable shelters or rest rooms and suitable lunch room
with provision for drinking water where workers can eat meals brought
by them shall be provided and maintained for use of workers.

But any canteen maintained shall be regarded as part of the

requirements of this Section and where as lunch room exist no worker
shall eat any food in the work room.

2) The shelters or restrooms or lunch rooms shall be sufficiently lighted

and ventilated and shall be maintained in cool and clean condition.

3) The State Govt. may :-

ALANGE’S LAW CLASSES, MAH 80 LABOUR LAW (MUMBAI)
a) Prescribe the standards in respect of construction,
accommodation, furniture and other equipment’s of shelters, rest
rooms and lunch rooms to be provided under this Section.

b) exempt any factory from the requirements of this section.

Crèches (Sec. 48) :-

1) In every factory where more than 30 women workers are ordinarily

employed, there shall be provided and maintained a suitable room or
rooms for the use of children under the age of 6 years of such women.

2) Such rooms shall provide adequate accommodation, shall be

adequately lighted and ventilated shall be maintained in clean and
sanitary condition and shall be under the charge of women trained in
care of children and infants.

3) The State Govt. may make rules :-

a) prescribing the location and standards in respect of construction,

accommodation, furniture and other equipment of rooms to be
provided.

b) requiring the provision in factory’s of additional facilities for

care of children belonging to women workers including suitable
provision of facilities for washing and changing their clothing.

c) requiring the provision in any factory of free milk or refreshment

or both for such children.

d) requiring that facilities shall be given in any factory for mother

of such children to feed them at necessary intervals.

Sec. 49 provides that in every factory where 500 or more workers are
employed, the occupier shall employ such no. of qualified welfare officers as
may be prescribed.
ALANGE’S LAW CLASSES, MAH 81 LABOUR LAW (MUMBAI)
4.3 Provisions Relating to Hazardous Process :-

This Chapter containing Sec. 41A to H was added by the Amendment

Act 1987.

• Definition of Hazardous Process :- [See (Sec.2) ]

• Provisions :-

1) Constitution of site appraisal committee [41A]

The State Govt. may for purposes of advising it to consider applications

for grant of permission for initial location of factory involving hazardous
process or for expansion of any such factory, appoint a ‘site appraisal
committee’ consisting of a Chief Inspector and other member specified.

2) Compulsory disclosure of information by occupier [Sec. 41B] : -

The occupier of every factory involving a dangerous process shall

disclose in manner specified all information regarding danger, health hazards
and measures in the manufacture, transportation, storage and other processes
to the workers employed in the factory, the Chief Inspector, the local
authority and the general public in the vicinity.

Specific responsibility of occupier in relation to hazardous process (Sec.

41C) :-

Every occupier of a factory involving any hazardous process

shall:

a) maintain accurate and up to date health record or as the case may be,
medical records of the workers in factory who are exposed to any
chemical, toxic, or any other harmful substances which are
manufacture, stored, handled or transported and such record sh all be
accessible to the workers subject to such conditions a may be
prescribed.

b) appoint persons who possess qualification and experience in handling

hazardous substances and are competent to supervise such handling
ALANGE’S LAW CLASSES, MAH 82 LABOUR LAW (MUMBAI)
within factory and provide at working place all necessary facilities for
protecting the worker in manner prescribed.

But where any question arises as to qualification and experience

of person so appointed, the decision of Chief Inspector shall be final.

c) Provide for medical examination of every worker :-

i) before such worker is assigned a job involving handling of or

working with a hazardous substance.

ii) while continuing such job and after he has ceased to work in such
job, at intervals not exceeding 12 months, in such manner as may
be prescribed.

a) Power of Central Govt. to appoint enquiry committee (Sec. 41D) :-

The Central Govt. may in the event of the occurrence of an extra

ordinary situation involving a factory engaged in a hazardous process appoint
an enquiry committee to enquiry into standards of health and safety observed
in factory.

b) Emergency Standards (Sec. 41E) :-

Where the Central Govt. is satisfied that no standards of safety have

been prescribed, it may direct the Director General of Factory advice service
to lay down emergency standards for enforcement of suitable standards in
respect of such hazardous process.

c) Permissible limits of exposure of chemical and toxic substances

(Sec. 41F) :-

The maximum permissible limits of exposure of chemical and toxic

substances in manufacturing process shall be of value indicated in II
Schedule.

Workers participation in safety management (Sec. 41G) :-

a) The occupier shall, in every factory, where a hazardous process takes

place or where hazardous, substances are used, handled, set up a ‘safety
ALANGE’S LAW CLASSES, MAH 83 LABOUR LAW (MUMBAI)
committee’ consisting equal no. of representative of worker and
management to promote co-operation between worker and management
in maintaining proper safety and health at work and review periodically
measures taken in that behalf.

But State Govt. may by order in writing and for reasons to be

recorded exempt the occupier of any factory from setting up such
committee.

b) The composition of safety committee, the tenure or office of its

members and their rights and duties shall be such as may be prescribed.

c) Right of workers to warn about imminent danger (Sec. 41 H) : -

Where the workers have reasonable apprehension that there is

likelihood of eminent danger to their lives to health due to any accident, they
may bring the same to the notice of occupier, manager or in charge of a
factory.

Working Conditions

Hours of Adults (Sec. 51 to 66) :-

Sec. 51 to 66 provide provisions for working hour of an adult workman

in a factory which are as follows:-

Weekly hours, daily hours :-

1. Weekly hours: - Sec. 51 lays down that no adult worker shall be

required or allowed to work in a factory for more than 48 hrs. in a week.

Sec. 51 does not prohibit requiring an employee working 42 hrs. a week

to work 48 hrs after a departmental transfer and he can not claim over
time wages for those additional 6 hours. [Imperial Tobacco Co. V/s.
State]

2. Daily Hours :- According to Sec. 54, no adult worker shall be required

or allowed to work in a factory for more than 9 hrs. in any day.
ALANGE’S LAW CLASSES, MAH 84 LABOUR LAW (MUMBAI)
This rule is subject to the provisions of Sec. 51 of the Act. The daily
maximum hours specified in this Section may with the previous approval of
Chief Inspector be exceeded in order to facilitate the change of shifts.

Weekly holidays:-

Sec. 52(1) provides that no adult worker shall be required or allowed

to work in a factory on 1 st day of week unless:-

a) he has or will have a holiday for whole day on one of 3 days

immediately before or after the said day and

b) the manager of factory has, before the said day or substituted day,
whichever is earlier :-

i) delivered a notice at office of Inspector of his intention to require

the worker to work on said day and of the day which is to be substituted.

ii) displayed a notice to that effect in factory.

But no substitutions shall be made which will result in any worker

working more than 10 days consecutively without a holiday for a whole day.

Sec. 52(2) provides that notice given as above may be cancelled by a

notice delivered at the office of Inspector and a notice displayed in the factory
not later that the day before the said day or holiday to be cancelled whichever
is earlier.

Under Sec. 52(3) where any worker works on the said day [specified in
sub sec. (1)] and had a holiday on one of the 3 days immediately before it,
that said day shall for the purpose of calculating his weekly hrs. of work be
included in preceding week.

Compensatory holidays:-

Sec. 53(1) lays down that where as a result of passing of an order or

making of rule under provisions of this Act exempting a factory or workers
therein from the provisions of Sec. 52, a worker is deprived of any of weekly
holidays, he shall be allowed within the month in which the holidays were
ALANGE’S LAW CLASSES, MAH 85 LABOUR LAW (MUMBAI)
due to him or within 2 months compensatory holidays of equal no. to the
holidays so lost.

Sec. 53 (2) empowers the State Govt. to prescribe the manner in which
compensatory holidays shall be allowed.

Intervals for rest:-

According to Sec. 55 (1) the periods of work each day shall be so fixed
that no period shall exceed 5 hrs. and that no worker shall work for more than
5 hrs. before he had an interval for rest of at least ½ hours.

Sec. 52(2) lays down that the State Govt. or Chief Inspector may
exempt any factory from provisions of this Sec. if no. of hours of work in a
day does not exceed 6 hrs.

Night Shifts: -

According to Sec. 57 where a worker in a factory works on a shift which

exceeds beyond midnight:-

a) for the purpose of Sec. 52, 53, a holiday for whole day shall mean a
period of 24 consecutive hours beginning when his shift ends.

b) the following day for him shall be deemed to be the period of 24 hrs
beginning when such shift ends and the hours he has worked after
midnight be counted in the previous day.

Extra wages for over time and restriction on double employment : -

Under Sec. 59, where a worker works in factory for more than 9 hrs. in
any day or for more than 48 hrs. in week he shall in respect of over time work
be entitled to wages at the rate of twice his ordinary rate of wages.

According to Sec. 60 no adult worker shall be required or allowed to

work in any factory on any day on which he has already been working in any
other factory.

Notice of period of work for adults :-

ALANGE’S LAW CLASSES, MAH 86 LABOUR LAW (MUMBAI)
Sec. 61 demands the display of notice of period of work for adults
clearly showing for every day the periods during which adult workers are
required to work.

Register of adult workers:-

Sec. 62 lays down that the manager shall maintain Register of adult
workers showing:-

a) the name of worker,

b) the nature of work,

c) the group in which he is included

d) where his group works in shifts, relay to which he is allotted.

e) such other particular as may be prescribed.

Employment of Young Persons (Sec. 67 to 77) :-

Prohibition of employment of young children (Sec. 67) :-

No child who has not completed his 14 th year shall be required or

allowed to work in any factory.

Non adult workers to carry tokens (Sec. 68) :-

A child who has completed his 14 th year or an adolescent shall not be

required or allowed to work in any factory unless:-

a) A certificate of fitness granted with reference to him under sec.69 is in

the custody of Manager of factory.

b) Such child or adolescent carries while he is at work a token giving a

reference to certificate of fitness.

Certificate of fitness (Sec. 69 ) :-

1) A certifying surgeon shall on the application of any young person or

his parent or guardian with document signed by manager that such
person will be employed if certified to be fit, or on the application of
ALANGE’S LAW CLASSES, MAH 87 LABOUR LAW (MUMBAI)
Manager of Factory, examine such person and ascertain his fitness for
work in a factory.

2) The certifying surgeon after examination may grant certificate of

fitness to such young person in prescribed form or may renew : -

a) A certificate of fitness to work as a child if he is satisfied that

young person has completed his 14 th year that he has attained the
prescribed physical standards and that he is fit for such work.

b) A certificate of fitness to work as an adult if he is satisfied that

young person has completed his 15 th year and is fit for a full days
work.

3) A Certificate of fitness granted or renewed :-

a) shall be valid only for a period of 12 months.

b) may be made subject to certain conditions considering the nature

of work or requiring re-examination before 12 months.

4) A certifying surgeon shall revoke any certificate if the holder is not fit
to work.

5) Where a certifying surgeon refuses to grant or renew a certificate or

revokes a certificate, he shall state his reasons in writing.

6) Where certificate is granted or renewed subject to such conditions, the

young person shall not be required or allowed to work in any factory
except in accordance with those conditions.

7) Any fee payable for certificate of fitness shall be paid by occupier and
shall not be recoverable from young person, his parents or guardian.

Working hours for children (Sec. 71) :-

1) A child shall not be employed :-

a) For more than 4 ½ hrs. in any day,

b) During the night i.e. between 10 p.m. and 6 a.m.

ALANGE’S LAW CLASSES, MAH 88 LABOUR LAW (MUMBAI)
2) The period of work of all children employed in a factory shall be
limited to two shifts which shall not overlap or spread-over more than
5 hrs. each and each child shall be employed in only one of the relay
which shall not be changed more frequently than once in a period of 30
days.

3) The provisions of Sec. 52 (Weekly holidays) shall apply also to child

workers.

4) No child shall be required or allowed to work in any factory on any day

on which he has already been working in another factory.

5) No female child shall be required or allowed to work in any factory

except between 8 a.m. and 7 p.m.

Notice of periods of work for children :-

There shall be displayed and correctly maintained in every factory in

which children are employed a notice of periods of work for children,
showing clearly for every day the periods during which children may be
required or allowed to work.

Register of child workers (Sec. 73):-

The Manager of every factory in which children are employed shall

maintain register of child workers showing

a) The name of each child worker

b) The nature of his work

c) The group in which he is included

d) Where his group works on shift, the relay to which he is allotted.

e) The no. of his certificate of fitness granted under sec. 69.

No child worker shall be required or allowed to work in any factory

unless his name and other particulars have been entered in the Register of
child workers.
ALANGE’S LAW CLASSES, MAH 89 LABOUR LAW (MUMBAI)
The State Govt. may prescribe the form of register of child workers,
the manner in which it shall be maintained and period for which it shall be
preserved.

Annual Leave with wages [Sec. 78 to 84] :-

1) Application of Chapter – This Chapter shall not operate if any award,

agreement or contract of service provides for a longer annual leave with
wages than provided in this chapter.

2) Leave entitlement – Every worker who has worked for more than 240
days in a factory during a calendar year should be allowed during
subsequent calendar year annual leave with wages at the rate : -

a) if an adult- one day for every 20 days of work performed by him

during previous calendar year.

b) if a child- one day for every 15 days of work performed by him

during the previous calendar year.

If a worker whose services commences after 1 st Jan. shall be entitled to

leave with wages, if he has worked for 2/3 of the days in the reminder of the
Calendar year.

If a worker is discharged or dismissed or dies during the calendar year,

he or his heir shall be entitled to wages in lieu of the quantum of leave to
which he was entitled.

In calculating, fraction of leave of ½ a day or more shall be treated as

one full day leave and fraction of less than ½ shall be omitted.

If a worker does not take the whole of the leave allowed to him, any
leave not taken shall be added in the succeeding year but total days of leave
carried forward shall not exceed 30 in case of an adult and 40 in case of child.

A worker may apply for annual leave to the Manager at least 15 days
before the date on which the worker wishes his leave to begin.
ALANGE’S LAW CLASSES, MAH 90 LABOUR LAW (MUMBAI)
If a worker wants to take such leave to cover a period of illness such
advance notice of 15 days is not necessary.

An application for leave shall not be refused unless refusal is in

accordance with scheme for leave.

Wages during leave period: -

For the leave allowed to a worker, he shall be entitled to wages at a rate

equal to the daily average of his total full time earnings for the days on which
he actually worked during the month immediately preceding his leave. The
full time earnings shall be exclusive of any overtime and bonus but inclusive
of D.A. and cash equivalent of the advantage accruing through the
concessional sale to the worker of food grains and other articles.

In the case of a worker who has not worked on any day during
the calendar month immediately preceding his leave, he shall be paid at rate
equal to daily average of his total full time earnings for days on which he
actually worked during last calendar month preceding his leave in which he
actually worked. These full time earnings shall be exclusive of any overtime
wages and bonus but inclusive of dearness allowance and cash equivalent of
advantage accruing through concessional sale to workers of food grain s and
other articles (added by Amendment Act 1987).

The calculation of cash equivalent of the advantage accruing

through the concessional sale to the worker of food grains and other articles
shall be calculated in the same manner as laid down in sec. 59(4) in
connection with extra wages for over time.

The State Govt. may make rules prescribing:-

a) The manner in which the cash equivalent of advantage accruing through

concessional sale to worker of food grains and other articles shall be
computed.

b) The register shall be maintained in a factory for compliance with

provisions of sec. 80.
ALANGE’S LAW CLASSES, MAH 91 LABOUR LAW (MUMBAI)
Payments in advance in certain cases (Sec. 81) :-

A worker who has been allowed leave for not less than 4 days in case
of an adult, and 5 days in case of a child, before the leave begins be paid the
wages due for the period for leave allowed.

Mode of recovery of unpaid wages (Sec. 82)

Any sum required to be paid by an employer under this chapter not paid
by him shall be recoverable as delayed wages under the provisions of
Payment of wages Act.

4.4 Penalties and Procedure:

Section 92: General penalty for offenses
This section states that in case there is any kind of contravention with the laws
of the Act, then the occupier and the manager of the factory will be equally responsible
for the breaking of the law.

They will be punishable for with imprisonment upto 2 years and fine upto Rs.2
lakhs. In case, they continue the breach, they will be punishable with Rs. 10 thousand
each day of the continuing breach.

Section 93: Liability of owner of premises under special circumstances

This section states that in case a factory is on lease to various occupiers, the
owner of the factory is still responsible for providing and maintaining certain services
like drainage, approach roads, water supply, electricity, lighting, sanitation, etc.

Section 94: Enhanced penalty after a previous conviction

This section states:

(a) Firstly, if there is any person in a factory who does any general offense and repeats
it, then he will be punishable with imprisonment upto 3 years or fine of atleast Rs. 10
thousand (upto Rs. 2 lakhs) or both.
(b) Secondly, in order to find the applicability of this provision, the managers should
only count the offenses within the last 2 years of the latest offense.

Section 95: Penalty for obstructing an inspector

This section states that whoever obstructs an Inspector in the exercise of any power
conferred on him by or under this Act, or fails to produce on demand by an Inspector,
ALANGE’S LAW CLASSES, MAH 92 LABOUR LAW (MUMBAI)
then that person will be punishable with imprisonment upto 6 months or fine upto Rs.
10 thousand or both.

This also applies to the cases where a person prevents any worker in a factory from
appearing before or being examined by an Inspector.

Section 96: Penalty for wrongfully disclosing results of analysis under section
91
This section states that any person who publishes or discloses to any other person the
results of an analysis made by taking samples shall be punishable with imprisonment
for a term which may extend to six months. Moreover, he will be punishable with a
fine of atleast Rs. 10 thousand.

Section 97: Worker’s offenses

This section states that if any worker working in the factory contravenes with the rules
or provisions of the Act, creating liabilities for other workers, will be punishable with
a fine of atleast Rs.500.

Section 98: False Certificate of Fitness

Fitness Certificate states the level of fitness of an individual for a particular job or
work. In factories, this certificate plays an important role. This section punishes those
workers who try to present a false ‘Certificate of Fitness’.

If anyone tries to do so, he will be punishable with imprisonment of 2 months.

Moreover, he may be punishable with a fine of atleast Rs. 10 thousand. In certain
cases, he is punished with fine and imprisonment.

Section 99: Double Employment of Child

This section states:

(a) Firstly, if any child works in a factory and works with another factory on the same
day, then his parents will be punishable. They will be punished with a fine of Rs.1000.
(b) Secondly, this case also applies to the person who gets benefit from such child’s
wages.

Section 101: Exemption of occupier from liability in certain cases

This section provides an opportunity to the managers and the occupiers of the factories
who have done an offense to prove themselves non-guilty. So, in order to prove
themselves right, they have to give notice to the inspector within 3 days stating their
ALANGE’S LAW CLASSES, MAH 93 LABOUR LAW (MUMBAI)
interest of proving themselves non-guilty. Moreover, they have to prove 2 things by
themselves:

(a) Firstly, he has complied with all the provisions of the act.
(b) Secondly, someone else is the real culprit and he didn’t know about the offense
being done by the real offender.

Section 102: Power of court to make orders

This section states that powers of the courts in case any manager does any offense
under the Act. The court along with punishing the offenders can take steps in
remedying the situation.

Section 103: Presumption as to employment

This section states that if any person is near any machinery in the factory during the
working hours, then he will be considered as a worker of the factory. This provision
does not apply in the case when a person is near any machinery during the intervals.

4.5 Apprentices and Their Training with object and scope:-

OBJECTS and Scope OF THE ACT
The Act envisages:
• To promote new manpower skills through theoretical and practical training in
number of trades and occupations
• To put a statutory obligation on the part of every employer covered under the Act
to train a prescribed number of persons
• To regulate and control the training of apprentices in trade and
• To supplement the availability of the technical persons for the industry.
The Act, as amended in 1973 and 1986, defines the technician (vocational)
apprentice who holds or is undergoing training in order that he may hold a certificate
in vocational course involving two years of study after completion of the secondary
stage of school education recognised by the All India Council and undergoes
apprenticeship training in any such subject field in any vocational course as may be
prescribed. The Act provides an important instrument for sharpening the capability,
ingenuity, resourcefulness and skill of the workers and through this eventually helps
to enrich their life style.
ALANGE’S LAW CLASSES, MAH 94 LABOUR LAW (MUMBAI)
In exercise of powers conferred by section 37 of the Act, the Apprenticeship
Rules have been amended and published in Gazette of India (Dated 1.8.1992, Part
II, Section 3(1) at page 1405). *

Apprentices And Their Training: -

PERIOD OF APPRENTICESHIP TRAINING (Section 6)
The period of apprenticeship training, which shall be specified in the contract
of apprenticeship, shall be as follows:
i. In the case of trade apprentices who, having undergone institutional training in a
school or other institution recognized by the National Council, have passed the trade
tests conducted by the Council, the period of apprenticeship training shall be such
as may be determined by the Council or by an institution recognised by that council;
ii. In the case of trade apprentices who, having undergone institutional training in a
or other institution affiliated to or recognised by a Board or State Council of
Technical Education or any other authority which the Central Government may, by
notification in the Official Gazette, specify in this behalf, have passed the trade tests
conducted by that Board or State Council or Authority, the period of apprenticeship
training shall be such as may be prescribed;
iii. In the case of other trade apprentices, the period of apprenticeship training shall
be such as may be prescribed;
iv. In the case of graduate or technician apprentices, the period of apprenticeship
training shall be such as may be prescribed.

TERMINATION OF APPRENTICESHIP CONTRACT (Section 7)

i. The contract of apprenticeship shall terminate on the expiry of the period of
apprenticeship training;
ii. Either party to a contract of apprenticeship may make an application to the
Apprenticeship Adviser for the termination of the contract, and when such
application is made, shall send by post a copy thereof to the other party to the
contract;
ALANGE’S LAW CLASSES, MAH 95 LABOUR LAW (MUMBAI)
iii. After considering the contents of the application and the objections, if any, filed
by the other party, the Apprenticeship Adviser may, by order in writing, terminate
the contract, if he is satisfied that the parties to the contract or any of them have or
has failed to carry out the terms and conditions of the contract and it is desirable in
the interests of the parties or any of them to terminate the same.
iv. Where the contract of apprenticeship is terminated through failure on the part of
any employer in carrying out the terms and conditions thereof, such employer shall
be liable to pay the apprentice compensation of an amount equivalent to his three
month’s last drawn stipend; and when the said termination is due to failure on the
part of an apprentice in the above manner, then a training cost of an amount
equivalent to his three month’s last drawn stipend shall be made recoverable from
such apprentice or from his guardian, in case he is minor.

PRACTICAL AND BASIC TRAINING OF APPRENTICES (Section 9)

1. Every employer shall make suitable arrangement in his workshop for imparting
a course of practical training to every apprentice engaged by him in accordance with
the programme approved by the Apprenticeship Adviser.
2. The Central Apprenticeship Adviser or any other person not below the rank of an
Assistant Apprenticeship Adviser authorised by the Central Apprenticeship Adviser
in writing in this behalf shall be given all reasonable facilities for access to each
such apprentice with a view to test his 8 work and to ensure that the practical training
is being imparted in accordance with the approved programme: Provided that the
State Apprenticeship Adviser or any other person not below the rank of an Assistant
Apprenticeship Adviser authorised by the State Apprenticeship Adviser in writing
in this behalf shall also be given such facility in respect of apprentices undergoing
training in establishments in relation to which the appropriate Government is the
State Government.
3. Such of the trade apprentices as have not undergone institutional training in
school or other institution recognised by the National Council or any other
institution affiliated to or recognised by the Board or State Council of Technical
Education or any other authority which the Central Government may by notification
in the Official Gazette, specify in this behalf, shall, before admission in the
workshop for practical training, undergo a course of basic training.

4. Where an employer employs in his establishment five hundred or more workers,

the basic training shall be imparted to the trade apprentices either in separate parts
of the workshop building or in a separate building which shall be set up by the
employer himself, by the appropriate Government may grant loans to the employer
ALANGE’S LAW CLASSES, MAH 96 LABOUR LAW (MUMBAI)
on easy terms and repayable by easy instalments to meet the cost of the land,
construction and equipment for such separate building.

4A. Notwithstanding anything contained in sub-section (4), if the number of

apprentices to be trained at any time in any establishment in which five hundred or
more workers are employed, is less than twelve the employer in relation to such
establishment may depute all or any of such apprentices to any Basic Training
Centre or Industrial Training Institute for basic training in any designated trade, in
either case, run by the Government. 4B. Where an employer deputes any apprentice
under sub-section (4A), such employer shall pay to the Government the expenses
incurred by the Government on such training, at such rate as may be specified by
the Central Government.

5. Where an employer employs in his establishment less than five hundred workers,
the basic training shall be imparted to the trade apprentices in training institutes set
up by the Government.

6. In any such training institute, which shall be located within the premises of the
most suitable establishment in the locality or at any other convenient place the trade
apprentices engaged by two or more employers may be imparted basic training.

7. In the case of an apprentice other than graduate or technician (vocational)

apprentice the syllabus of, and the equipment to be utilised for, practical training
including basic training shall be such as may be approved by the Central
Government in consultation with the Central Apprenticeship Council.

7A. In the case of graduate or technician apprentices technician (vocational)

apprentices the programme of apprenticeship training and the facilities required for
such training in any subject field in engineering or technology or vocational course
shall be such as may be approved by the Central Government in consultation with
the Central Apprenticeship Council.

8. It is stipulated that
a. Recurring costs (including the cost of stipends) incurred by an employer in
connection with basic training, imparted to trade apprentices other than those
referred to in clauses (a) and (aa) of section 6 shall be borne
i. if such employer employs two hundred and fifty workers or more, by the
employer;
ii. if such employer employs less than two hundred and fifty workers, by the
employer and the Government in equal shares up to such limit as may be laid down
by the Central Government and beyond that limit, by the employer alone; and

b. recurring costs (including the costs of stipends), if any, incurred by an employer

in connection with practical training, including basic training, imparted to trade
ALANGE’S LAW CLASSES, MAH 97 LABOUR LAW (MUMBAI)
apprentices 9 referred to in clauses (a) and (aa) of section 6 shall, in every case, be
borne by the employer;

c. recurring costs (excluding the cost of stipends) incurred by an employer in

connection with the practical training imparted to graduate or technician apprentices
technician (vocational) apprentices shall be borne by the employer and the cost of
stipends shall be borne by the Central Government and the employer in equal shares
up to such limit as may be laid down by the Central Government and beyond that
limit, by the employer

4.6 (A) Authorities constituted under this Act :-

AUTHORITIES (Section 23)
1. In addition to the Government, there shall be the following authorities under this
Act, namely—
a. The National Council,
b. The Central Apprenticeship Council,
c. The State Council,
d. The State Apprenticeship Council,
e. The All India Council,
f. The Regional Boards,
g. The Boards or State Councils of Technical Education,
h. The Central Apprenticeship Adviser, and
i. The State Apprenticeship Adviser.

2. Every State Council shall be affiliated to the National Council and every State
Apprenticeship Council shall be affiliated to the Central Apprenticeship Council.

2A. Every Board or State Council of Technical Education and every Regional Board
shall be affiliated to the Central Apprenticeship Council.

3. Each of the authorities specified in sub-section (1) shall, in relation to

apprenticeship training under this Act, perform such functions as are assigned to it
by or under this Act or by the Government:

Provided that the State Council also perform such functions as are assigned to it by
the National Council and the State Apprenticeship Council and the Board or State
Council of Technical Education shall also perform such functions as are assigned to
it by the Central Apprenticeship Council.

(B) Penalties:-
1. The Apprentices Act provides that if any employer
a. engages as an apprentice a person who is not qualified for being so engaged, or
b. fails to carry out the terms and conditions of a contract of apprenticeship, or
ALANGE’S LAW CLASSES, MAH 98 LABOUR LAW (MUMBAI)
c. contravenes the provisions of the Act relating to the number of apprentices which
he is required to engage under those provisions,
he shall be punishable with imprisonment for a term which may extend to six
months or with fine or with both.

2. If any employer or any other person

a. required to furnish any information or return, refuses or neglects to furnish such
information or return, or, furnishes or causes to be furnished any information or
return which is false and which he either knows or believes to be false or does not
believe to be true, or refuses to answer, or gives a false answer to any question
necessary for obtaining any information required to be furnished by him, or
b. refuses or willfully neglects to afford the Central or the State Apprenticeship
Adviser or such other person, not below the rank of an Assistance Apprenticeship
Adviser, as may be authorised by the Central or the State Apprenticeship Adviser in
writing in this behalf, any reasonable facility for making any entry, inspection,
examination or inquiry authorised by or under this Act, or
c. requires an apprentice to work over-time without the approval of the
Apprenticeship Adviser, or
d. employs an apprentice on any work which is not connected with his training or,
e. makes payment to an apprentice on the basis of piece-work, or
f. requires an apprentice to take part in any output bonus or incentive scheme,
he shall be punishable with imprisonment for a term which may extend to six
months or with fine or with both.

ALANGE’S LAW CLASSES, MAHARASHTRA

ADV. V. S. ALANGE ADV. AMIT V. ALANGE ADV. AJIT V. ALANGE
[Link].M LL.M, M.S.W LL.M
Mob: 9422067025 Mob: 9423593437 Mob: 9960960944

Mumbai Address:
Office No. 6, Lentin Chamber, Ground Floor, Casablanca Trade Place, Near Bombay Stock
Exchange, Dalal Street, Fort, Mumbai. 400001.

Solapur Address:
1141/1/B, Plot No. 10, Vishwa, Vidya Nagar, Near Janata Bank, Shelagi, Solapur. 413006