Industrial Relations

(IR)
HR- Elective
Term-V

Dr. N.Y. Phadnis

Prof. HRM & Law
Course Facilitator
 Andragogy
(Learning Methodology)
• Interactive & Participative
• Minimal Lecturing for basics & conceptual learning.
• Emphasis on self study & learning through peer group.
• Case Study/Case-lets/Practical Problems/Business Situations
Group Presentations-Through Representative(s)
• Case Preparation & Group Discussions- Off Class Room. (within
or outside group)
• Class Participation- Open house discussions in the class linked
to class participation evaluation component and class
attendance.
Course Evaluation
(IR)
• Case Presentations -20% Through Group
Representatives (Team Work-Group Assignment
& Group Evaluation)
• Class Participation-20% (Individual Evaluation)
• Mid Term-20% (Closed Book-Moodle Based-
Objective Type)- Individual Evaluation.
• End Term Exam- 40% (2 hours-Descriptive
Type-Theory + Application based- Closed Book-
Paper/Pen mode)-Individual Evaluation.
Syllabus/Curriculum For
Evaluation Components.
• 1. Topics expressly mentioned in the course
outline/contents (session plan) on ERP
• 2. Topics/Legal-Issues, concepts, Rules,
Principles/Case-lets/Business Situations
discussed during the class sessions.
• 3.Power Point Presentations (PPTs) of the
Faculty (Dr. NYP)
• 4 Study Material /Handouts/Case-lets etc.
• Relevant Chapters/Topics from Text Book,
course docket & other Reference Books.
Industry
Sec.2(j) of ID Act1947
• It means any business, trade, undertaking
Manufacture or calling of employers and
includes any calling, service, employment
industrial occupation or avocation of
workmen.
Industry
(Triple Test Formula)
• Any Continuous, Systematic & well organized
Activity.
• Carried on by Co-operation between Employer &
Employees
• For Production and/or distribution of goods or
services with a view to satisfy human wants or
wishes which are primarily material in nature &
not purely spiritual or religious.
(Profit motive & investment of capital are
irrelevant i.e. may be absent)
Industry
• Employer- Employee (Boss-Subordinate)
relationship & working together
• Well Organized, Systematic, Continuous Activity.
• Offers Goods and/or Services to customers,
Consumers/Society for its use or consumption.
• Profit Making & Capital investments are not
essential.
• Except Family life & Sovereign functions of the
State under the constitution, all activities under
the Sun satisfying above criteria are Industries.
Human Resource Management
(HRM)
• Concerned with ‘People’ dimension of
management.
• It deals with managing people at work place.
• Refers to philosophy, policies, systems,
procedures & practices relating to management of
people within an organization.
• It facilitates effective use of people (employees) to
achieve organizational and individual goals.
• The old nomenclatures are Labour-Management,
Personnel Management & future nomenclature
will be Human Capital Management (HCM)
HRM-Objectives
• Procurement, Retention & Effective utilization
of Human Resources (employees)
• Developing & Maintaining desirable working
relationships , work culture & quality of work
life.
• To provide for maximum individual
development & satisfaction to employees.
• To create, utilize and retain competent,
committed & motivated work force for
achieving organizational goals.
Scope & Coverage of HRM
HRM= PM + HRD/OSD/OCD
PM=Personnel Management
HRD= Human Resource Development
OSD=organizational Structure & Design.
OCD= organizational Change & Development.
The focus in HRM is more on HRD & Organizational
Development (OD)
‘HR’ is as such meaningless and could mean human
resource or human relations or human rights. It is
appropriate to use the terms as HRM and HRD.
Scope & Coverage of HRM

• Personnel Management:- which includes

A. Employee Health, Safety, Welfare & Social
Security (Statutory & Voluntary)
B. Personnel Administration- Recruitment to
Retirement (R to R) Employee Compensation
(Wage & Salary) Management & Record Keeping.
C. Industrial Relations (IR) or Employee Relations
(ER) & Dealing with Trade Unions.
• Human Resource Development (HRD), OSD &
OCD.
 HRD/OSD/OCD Coverage
(Non-IR Areas)
• Training & Development (T&D)
• Performance & Competency Appraisals & Management.
• Job Design.
• Career & Succession Planning.
• Executive Compensation Strategies & Management.
• Organizational Structure & Design (OSD)
• Organizational Change & Development (OCD)
• Quality of work life (QWL) & work-life balance.
• Employee Counseling.
• Developing HRIS.
• HR Analytics
 Industrial Relations (IR)
• Group/Collective Relationship between
Management & Trade Unions in Industry
concerned with Employee grievances & demands
with a view to resolve industrial disputes and
conflicts arising out of such grievances &
demands.
• The purpose of relationship is to restore &
maintain Industrial Peace, Harmony & Cordial
Relations between Labour & Management which
is prerequisite for industrial productivity &
prosperity.
 Industrial Relations (IR)
• Nowadays also referred to as Employee Relations &
Employment Relations (ER) or Labour-Management
Relations.
• Part of HRM function not concerned with HRD,OSD &
OCD.
• IR relates to handling & dealing with trade unions &
relationship issues concerning employees’ interest areas
vis-à-vis their employment.
• It is group relationship between Union & Management in
an industry concerning industrial matters/issues of
Common/Mutual interest to both mgt & unions.
• It covers all work & employment related issues arising
out of or connected with employer-employee relationship
• Primarily & Basically it’s a Bi-partite process.
 IR (Cont.)
• IR in India is Multi-partite as Govt. & Consumers
are also concerned with it. (although basically a
bi-prtitate process)
• Govt. is involved as Policy Maker, Law Maker &
law enforcer for smooth functioning of Industry
& as a Public Sector Employer.
• Consumer & Society is concerned with
uninterrupted supply of products & services for
consumption & for Job opportunities.
 Employee Relations (ER)

• A broader & wider term as compared to IR

• Covers the scope of Industrial Relations.
• Now a days mostly referred to as ER.
• Apart from IR it includes all relationships
and communications with individual
employee or group to enhance employee
performance through Motivation, Morale,
Leadership & Training (OB Areas)
 IR-Objectives
• To Restore & Maintain Smooth, Cordial,
Harmonious & Peaceful Relations between
Employees & Management which is a pre-
requisite for Productivity & Prosperity of Industry
& Nation.
• To amicably resolve employee grievances &
disputes.
• To Restore & Maintain Discipline in an
organization.
• To avoid unfair Labour Practices.
 Significance of IR
• Establishing cordial relationship in Industry.
• Contributing to higher efficiency & higher
productivity.
• Building effective organizational culture.
• Creating group dynamics & synergy.
• Discouraging unfair labour practices.
• Promoting measures for labour welfare & safety.
• Being Instrumental to Change.
 IR- Scope/Coverage
“A Fire Fighting Job”
• Trade Unions- Dealing & Negotiating with trade
unions or employee representatives.
• Handling Strikes, Lockouts, other coercive
tactics & dealing with unfair practices resorted
by the unions & employees.
• Discipline Management.(Disciplinary Actions)
• Participative Management.
• Grievance Handling.
• Resolving Industrial Disputes.
• Liaison with Govt. Labour Administration & law
enforcing agencies.
 IR- Premise
• Industrial Peace, Harmony & Cordial relations
between Labour & Management leads to success
& growth of Industry & Economy hence restore
& maintain it.
• Employee grievances leads to conflicts &
Industrial Disputes heading towards industrial
war (Strikes, Lockouts, Go-slow, Violence etc)
adversely affecting all stakeholders hence
redress it promptly & amicably.
 Trade Unions

Voluntary Association of Indian Citizens to

1. Stop the Exploitation of its Members.
2. Protect & Promote their Interests.
3. Undertake Welfare Activities for
members & their families.
4. Render Community Services.
5. Be involved in State Politics.
 Formation of Unions

• Constitution of India-Fundamental Right Articles 19(1)(c)

& 19(4)
• Sections 2(h), 4,5,8 & 9 of TU Act 1926.
• All Citizens- Employees,Employers,Traders
Professionals have a right to form a union.
• Armed Forces & Police Cops prohibited.
• Formation & Registration is Voluntary.
• Membership is Voluntary.
• No Compulsion to join Any Union.
• Open Shop system
• No Check-Off or Closed Shop or Union shop System.
Registration under TU Act 1926

• Not Compulsory but Desirable.

• Registration formalities-sec.4 to 9
• Confers Legal & Corporate Status - Sec.13
• Grants Immunities –sec 17 to 19
• No Provision for Recognition of Unions
under any central law (TU Act, ID Act,
IESO Act)
Registration of Union under TU
Act 1926 (Sec.4)
• Min 7 or more members to apply for
registration.
• Union will be registered subject to at least
10% or 100 workmen (whichever is less
subject to Min 7) of that Industry are
members of such union applying for
registration.
Recognized Trade Union
• Single Largest Majority Membership.
• Must be Registered under TU act 1926.
• Recognition accorded by Govt./Courts &
binding on Employer. (Under the Labour
Statute/Law)
• Employer may grant it under a contract or
under code of Discipline. (Voluntary)
• Only One Recognized Union at a time.
Legal Status of A Recognized Union

• Sole Bargaining & negotiating Agent for all

Employees. (Members, Non-members &
other Unions)
• Employer is under legal obligation to
negotiate in exclusion of other unions.
• Contract with Employer binding on all
employees (Members, Non-members &
other unions)
Rights of Recognized Union
• Exclusive Right to represent all employees in Courts &
before Govt. Labour Officials.
• Right to represent its members (only) in Disciplinary
matters & Grievances before Employer.
• To collect union subscription on premises of employer or
enter into a check-off system arrangement with
employer for collection of union subscription through
pay-roll.
• To hold meetings on premises of employer without
disturbing work & only with a view to resolve disputes
with the employer. (With Intimation to employer)
• To put up its Notice board on the Premises & display
notices.
• To inspect any place in company where any employees
are working with a view to resolve their grievances.
Laws on Recognized Union

• No Provision under any Central Labour

Acts for grant of such Status.
• Provisions Exists in Maharashtra, Gujrat &
M.P i.e. BIR Act 1946, MRTUPULP Act
1971 & MIRA Act.
• Provision exists under Code of Discipline
which is not binding on Employer.
Trade Unions Vis-à-vis
Management
• No Trade union has any right to hold demonstrations/agitations
near the entrance & inside the premises of company & close to
manager’s residence.
• No Trade Union has any right to interfere with managerial functions
& authority.
• Unions can only make a grievance, raise a dispute for consideration
& resolution but cannot dictate or compel management.
• No Union can engage in any unfair labour practice (Refer handout
on unfair labour practices)
• Recognized Union has legal right to negotiate with the
management on behalf of all employees with a view to settle issues
& demands. Management is under legal obligation to negotiate.
• Registered Union has neither legal right to negotiate nor
management has legal obligation to negotiate. Negotiating with
registered trade union is at the option of management.
TU Vs Mgt.
• Registered TU may hold meetings & carry out Union
activities inside premises only with prior permission of
mgt. ( mgt has right to refuse such permission)
• Trade union leaders & activist do not have any privileges
& concessions about work norms, attendance, transfers,
work behaviour etc.
• They are employees first & Union leaders afterwards.
• Union leaders have no immunity from indiscipline &
misconducts.
• Registered TU’s have immunity from civil & criminal
action only for genuine, legitimate & peaceful TU
Activities.
Management Vis-à-vis Trade
Unions
• Management has No Role to play in Union formation &
registration.
• Management has no legal right to interfere with the
formation & functioning of Trade Unions.
• Management cannot resort to Unfair Labour Practices
(refer page 2 & 3 of LAE-CD)
• Management has legal obligation to negotiate with
recognized TU but not with registered TU.
• Management can with the help of Govt. Labour Dept.
verify TU’s membership with a view to recognize
majority membership union as bargaining agent.
Problems & Issues of Indian
Trade Unions
• Uneven growth- Region & Sector wise.
• No Legal Compulsion to be a member of a Union.
• Small Size- low membership.
• Dual Membership.
• Multiplicity of Unions
• Financial Weakness.
• Inter-union & Intra-union Rivalries.
• Union Leaders-Politicians & Social Activists-Outdoor
Leadership.
• Politicization of Unions.
• Recognition of union as bargaining agent.
Employees who are ‘Workman’
Sec. 2 (s) of ID Act
• Unskilled or Manual Work.
• Semi-skilled or Skilled Work.
• Technical or Operational Work.
• Clerical Jobs.
• Supervisory Job(Salary limit < Rs.10,000/-PM)
• Apprentice/Trainee under employers own scheme.
Salary, Designation, Qualifications & Social Status are
irrelevant factors.
Job Profile & Nature of Authority/Power attached to the job
profile of an employee is the real test.
Employees who are not
‘Workman’
• Company Directors, Managers/Executives.
• Administrative Officers.
• Supervisors (Salary above Rs.10000/- PM)
• Teachers.
• Members of Armed & Para Military Forces.
• Police & Prison Staff (Cops)
• Medical Representatives (MRs)
• Apprentice (Trainee) under Apprentice Act and
Standing Orders.
Manager in the eyes of Law
(Managerial Powers & Authority)
• He is an Employee + An Agent. (Both)
• Binds & Creates contractual relations between
organization & outside world (Third Parties).
• Authority to Appoint or Terminate or take
disciplinary action against subordinates.
• Authority to sanction leave & grant facilities to
staff. (which incurs cost to the organization)
• Drawing & Disbursing Authority or operating
organization’s financial accounts.
• Authorized Signatory for & on behalf of
organization.
Supervisor
• Watches ‘Man’ on ‘Machine’ & not merely
‘Machine’.
• Authority to instruct & allocate work.
• Authority to follow-up & Take feed-back.
• Authority to complain & report to Manager with
a view to take disciplinary action.
• Authority to issue warning to employees.
• Authority to recommend leave, facilities &
payment to employees.
• Merely Technical Supervision is No Supervision.
 Employee Grievance
• M.J. Jucius defines it as “Any discontent or
dissatisfaction, whether expressed or not,
whether valid or not, arising out of anything
connected with the company which an employee
thinks, believes or even feels to be unfair, unjust
or inequitable”.
• Grievance is perceived non-fulfillment of one’s
expectations from the organization.
 Employee Grievance
• Any Discontent or Dissatisfaction
• Work or Organizational Related
• Expressed in any form or style.
• Unattended Grouse or Complaint
• Sense/Feeling of injustice or unfairness.
• Real or Imaginary.
• Legitimate or Ridiculous
• Written or Oral or manifested in some form i.e
through body language or work behaviour.
 Causes of Grievances
• Economic-Pay Package, Bonus, Incentives,
Overtime, Sales Commissions, Fringe Benefits.
• Work Environment & Working Conditions.
• Service Conditions- Terms of Employment.
• Disciplinary Actions & Punishments.
• Job specific or Job related. (Technical)
• Defective Policies, Procedures, Practices & Rules.
• Supervision & Treatment.
• Arbitrary & Discriminatory use of Power &
Authority by Managers/Supervisors.
• Not Keeping Promises & Non-Execution of
Settlements.
 Effects of Grievances.
• Loss of Interest, Motivation, Morale &
Commitment to Work.
• Low Productivity & Poor Quality.
• More Wastages & Increased Costs.
• High Employee Absenteeism & Turnover.
• Employee Indiscipline & Unrest.
• Indifference & Apathy
 Noticing Grievances.

• Through Gossips & Grapevine.

• Observing Work & Behavior.
• Gripe-Boxes.
• Open-Door policy.
• Exit Interview.
• Committee & Union Meetings.
• Formal Grievance Procedure.
 Model Grievance Procedure
Stages/Stapes.
1. Employee +Co-Employee approach Supervisor/Officer
Designate- 48 Hours.
2. Employee + Co-Employee + Union Office Bearer
approach Dept. Head – 72 hours.
3. Grievance Committee Comprising Dept. Head, HR
Manager & Union Office Bearer reports/recommends
CEO/GM - 7 Days. OR
4. Employee+ Union President/Secretary approach
CEO/GM -3 Days.
5. Conciliation/Arbitration/ Adjudication.
 Grievance Procedure
Modus Operandi
• Acknowledge Dissatisfaction.
• Define the Problem.
• Get the Facts.
• Analyze & Decide.
• Follow-Up.
 Pitfalls in Grievance Handling.

• Stopping the Search of Facts too soon.

• Jumping to Conclusions & Expressing
opinions before getting full facts.
• Failing to Maintain Proper Records.
• Arbitrary Exercise of Executive Discretion.
• Settling wrong Grievances.
 Principles of Grievance Settlement

• Settlement at the lowest possible level.

• Settlement as expeditiously as possible.
• Settlement to the Max. Satisfaction of the
Aggrieved Employee.
• Organization’s interest is not jeopardized.
• General & Common issues are outside its
realm & should be a part of Collective
Bargaining Negotiations with Unions.
 Do’s & Don’ts in Grievance
Handling
• Talk to the Employee- Give him patient & full hearing.
• Enforce time limits (deadlines) as per established
grievance procedure.
• Don’t hold back the remedy if the company is wrong.
• Visit the work area of the aggrieved party.
• Examine prior grievance record.
• Don’t surrender/delegate your authority to the union.
• Don’t argue Grievance issues off work premises.
• Hold your discussions privately.
• Control your temperament. Keep Cool.
• Don’t make any extra commitments.
 Participative Management
• Also referred to as Workers’ Participation in Management of
Industry.
• It is a facet of employee empowerment & quality of work life (QWL)
• Originated from Article 43 A of the Constitution (Part-IV- Directive
Principles)
• It Implies Association & Involvement of Employees in the Decision
Making Process of Management.
• It is sharing of the decision making power & authority of the mgt by
employees.
• It is a forum & a platform for information sharing & joint
consultation between Employees & management.
• Also referred to as Joint Consultation, Co-determination, Labour-
Management Cooperation & information Sharing.
• It’s a Tool & a Process to achieve the goal of Industrial Democracy.
 Objects of Participative
Management
• Communication Channel between L-M.
• Promote Mutual Understanding & Harmony
between L-M
• Realistic Decisions & Better Discipline.
• To satisfy Employees needs for Expression,
Identity & Importance leading to Employee
Motivation & Development.
• Creates amongst employees a sense of
Commitment, belongingness & loyalty to the
organization.
 Forms/Styles of Participation

• Suggestion Scheme (Box)

• Committees & Councils –Works, Sports,
Shop, Joint Mgt, Canteen, Quality Circles,
Grievances & Events committees etc.
• Board of Directors
• Self/Auto Management- Employee
Managers.
Prerequisites of Effective WPM
• Union & Management should have
genuine faith & interest in the ideology of
participation.
• Mutual Trust, Maturity & Understanding.
• Responsive & Responsible approach on
the part of both Union & Management.
• Effective Communication
• Professional outlook of the Management.
 Conduct
• Conduct in the context of organizational working
is Duty, Performance, Efficiency, Diligence,
Honesty, Integrity, Sincerity & Behavior in
general.
• Such conduct is necessary for the smooth
functioning & progress of the organization &
achievement of company objectives.
• Conduct should not adversely affect efficiency,
productivity, quality, work culture & public
interest & image of the company
Discipline
• Observance of Rules/Norms of Performance of Duty &
Related Behavior.
• Maintenance of Discipline- a prerequisite for Success &
Progress of Department/Industry.
• Positive Discipline & Self Discipline is preventive in
nature & is achieved through Rewards, Human Relations
approach, Education, Counseling, Motivation & sound HR
Practices.
• Negative Discipline is curative & punitive in nature & is
enforced through Disciplinary Action & Punishment for
Misconduct committed by an employee.
• The Session focuses on Negative aspects of Conduct &
Discipline.
Principles of Natural Justice
(Un-codified & Flexible)
• Nemo judex in causa sua (No one can be Judge
in his own cause)
• Audi Alteram partem (Hear the other Side) i.e.
No one to be condemned unheard.
• Fair, Transparent, Orderly & Impartial Procedure
without any bias. (justice should not only be
done but should manifestly & undoubtedly be
seen to be done)
• Acid test for violation of PNJ is prejudice caused
to delinquent or denial of justice.
Principles of Natural Justice
(Un-codified & Flexible)
• Charges have been informed to
delinquent.
• Reasonable & Adequate opportunity
hearing to defend the charges (of
misconduct) is given to delinquent at
every stage of Enquiry.
• Due consideration of material on record by
Enquiry Officer & Disciplinary Authority.
• Orders passed must be speaking orders
(i.e. reasoned orders)
Principles of Natural Justice in
relation to Inquiry.
• Alleged Facts constituting the charge should be
sufficiently & elaborately stated in the charge-sheet.
• Charges should be clear, precise & accurate.
• Charge sheet is served on the delinquent.
• Opportunity to reply to charge sheet is given.
• Notices of Inquiry served on the delinquent.
• List of witnesses & Documents in support of Charge
sheet is given to the delinquent.
• Copies of preliminary Inquiry Report , Statement of
witnesses & other documents are given.
• Inspection of records/documents allowed to delinquent.
Disciplinary Action
to be held as per
• Certified or Model Standing Orders (In case of
Industrial Workmen)
OR
• Service Rules in case of Govt. Employees i.e.
CCS(CCA) & CCS (Conduct) Rules.
And
• Principles of Natural Justice
And
• Procedure/Guidelines evolved by SC & HC.
Disciplinary Action
is not regulated by
• Indian Evidence Act.
• Civil Procedure Code (CPC)
• Criminal Procedure Code (Cr. P. C)
• The Technical Rules of above 3 laws not
applicable to disciplinary action.
• The principles of natural justice contained
in these laws does apply.
Nature of Disciplinary Enquiry.
• It is an Internal Fact Finding enquiry by
the Dept. into the allegations/charges of
misconduct committed by an employee.
• Not a Judicial Enquiry. (Absence of Judicial
Powers/Authority & Procedure)
• Treated as Quasi- Judicial i.e. to be held
with judicious mind & approach & by
observing Principles of Natural Justice &
applicable Standing Orders.
Misconduct
• Mis- Bad/Wrong/Improper
• Conduct- Behaviour/Deed/Action.
• Misconduct is not necessarily a crime or an offence
under the penal laws.
• Crime/Offence in relation to employment is a
misconduct.
• Acts of commission & omission expressly stated in the
standing orders or service/discipline rules as
misconducts.
• It is desirable to provide a exhaustive list of misconducts
in certified Standing orders or service/discipline i.e.
conduct Rules.
Sexual Harassment at Work Place

• It is a misconduct whether provided under SO or

not. (Provided in the conduct rules)
• Deemed to be incorporated as misconduct under
standing orders/service rules as per Apex court
judgment in Vishakha Vs State of Rajasthan-AIR
1997 SC 3011. (Detail guidelines laid down)
• Also a crime/offence u/s 209,354 & 509 of IPC.
• Case Law- Apparel Export promotion council-
1999 LLR 169 SC. & Saudi Arabian Airlines- 1999
LLR 329 (Bom)
• Sexual Harassment of Women at Workplace
(Prevention, Prohibition & Redressal) Act 2013.
Disciplinary Action & Domestic
Enquiry (Steps)
• Report/Complaint or Notice of Misconduct.
• Suspension of employee (pending enquiry)
(if desirable)
• Preliminary Investigations and/or show-cause
notice (if necessary)
• Charge-sheet calling for explanation.
• Consideration of delinquent’s reply.
• Decision to hold enquiry & appointment of EO.&
PO (MR)
• Notice of Enquiry to Delinquent.
DA & DE (steps) –contd.

• Enquiry Proceedings- Recording of Evidence. (As per the

Procedure of CCS/SO & PNJ)
• Preparation & Submission of Enquiry Findings Report by
EO to DA.
• Furnishing copy of ER to delinquent inviting comments.
• Due Consideration of Enquiry Record, comments & Past
service record (of delinquent) by the disciplinary
authority.
• Second Show cause notice (if expressly stated in SO
otherwise not necessary)
• Communication of Punishment Order to delinquent & its
implementation.
Report/Complaint of Misconduct

• Must be in writing & signed by the

complainant (s)
• Witnesses (if any) need not sign the
complaint.
• Should contain full particulars of the
incident- names of persons involved, date,
time & place of incident, facts with specific
allegations against delinquent.
Suspension Pending Enquiry
(Optional)
• If warranted.
• Should be done in case of serious acts of misconduct.
• Entry & Working of employee is prohibited in the interest of an
organization.
• It is not a punishment.
• Insisting on daily reporting & marking attendance serve two
purposes & employer’s convenience is served.
• Employer-Employee Relationship continues.
• Suspension/Subsistence Allowance to be paid as per Sec.10-A of
IESO Act. (which overrides SO) (% of contractual salary & not Basic
+DA alone)
• Less payment or No Payment of SA vitiates Enquiry.
• SA-Should not be linked with Attendance of suspended employee.
Suspension as Punishment

• Not during the enquiry but at the end of

enquiry on finding guilty.
• With full loss of pay for limited period not
exceeding maximum days mentioned in
SO or rules applicable.
• Technically & Legally amounts to break in
service & re-appointment but generally
not enforced due to feasibility.
Preliminary Enquiry
(Optional)
• If necessary/required.
• Collection of Information & Evidence to fix
responsibility (to book an employee).
• It’s not a regular DE & Participation of
Delinquent is not necessary & required.
• Delinquent’s Statement should not be insisted
upon.
• Out come of PE is a decision whether to issue
Show-Cause Notice/Charge-sheet or not.
Charge-sheet or Show-Cause
Notice
• Is mandatory.
• Is starting of Regular Domestic Enquiry.
• Opportunity to reply must be given (within minimum 72
hours time to reply)
• Charges must Specific/Precise with full particulars of
date, time, place, persons involved, incident alleged &
allegations made.
• Relevant clauses of SO must be mentioned.
• Must be in writing & signed by competent authority.
• Insufficient particulars or vague charges vitiates enquiry.
• Translation of charge-sheet in local language necessary
if employee does not understand English.
• Proof of Service of Charge-sheet is must.
Notice of Enquiry
• It can be a part of charge-sheet if Show-cause
notice calling for reply was given earlier.
• Should be issued generally after considering
delinquent’s reply to charges & after decision to
hold enquiry.
• Should communicate decision to hold enquiry &
must give name of Enquiry officer & date, time
& place of Enquiry.
• Should ask & assure employee to be defended
by an assistant as per rules & to attend enquiry.
• Copies of documents & list of management
witnesses should be attached.
 Enquiry Officer
• EO can be either an Internal officer or an
Outsider including an Advocate.
• Charge-sheeting authority or Disciplinary
authority can also be an EO however it is
desirable not to appoint them as EO
• EO should be an unbiased & impartial person &
should be above in rank than that of delinquent
employee.
• Appointment of PO i.e MR is optional but
desirable.
 Enquiry Officer

• Evidence of the Management in support of

the charges should be recorded first.
• Defense Evidence should be recorded
after Management’s Evidence.
• Should not recommend punishment in ER.
• ER should be a “Speaking Report”
• EO does not have judicial powers but
should act judiciously.
Disciplinary Authority (DA)
• Should give a copy of ER to delinquent &
invite his comments.
• Can differ with the findings of EO however
should record reasons.
• Should consider material on record before
awarding punishment.
• An Authority who inflict punishment (CAO,
CEO, Charge-sheeting authority or
Appointing Authority)
Appearance of Advocate in DE

• Can hold Enquiry as Enquiry Officer.

• No right to delinquent employee even if EO is an
Advocate.
• If MR/PO is an Advocate or legally trained officer then
delinquent gets right. OR
• If charges are serious or complicated & legal expertise is
necessary to defend then Advocate should be allowed.
• To follow the express provisions of SO or State law as
applicable.
• Appearance of Advocate in DE is not a matter of Legal
Right & Rule. It is an exception which is situation based.
Criminal Trial Vis-à-vis DE
• Can proceed simultaneously (No bar)
• Level/degree of Proof required are
different.
• Punishments have no bearing on each
other.
• Desirable/Advisable to stay DE or reinstate
employee only if 1) employee is acquitted
with honour & 2) The Charges & Proof in
both proceedings were identical.
Fair Hearing Ingredients
• Disclosure of Materials.
• Opportunity to adduce all relevant evidence.
• No Evidence behind back.
• Opportunity to cross examine.
• Opportunity to explain material.
• Undisclosed Material.
• Oral Hearing or Written Notes of Arguments.
• Right to appear through Advocate
• Speaking Order.
 Bargaining

• Negotiation, debate, confrontation

between Individuals.
• For Individual’s interest.
• To dispute the Cost/Price/Value
• As to exact nature of Transaction.
• With a view to reach compromise.
 Collective Bargaining
• Group Bargaining as against individual
bargaining
• For common interest of group.
• Generally used in Industry & Business
• To Bargain & Negotiate with trade unions.
• Civilized-Peaceful bipartite Confrontations.
• To enter into Collective Agreement
• About terms of respective Group interests.
 Collective Bargaining
• Structured & Institutional Mechanism & a Process in
Industrial Relations & HRM
• Negotiations is the Core of the whole mechanism
• For Conflicts Resolutions or Disputes settlements.
• Process of Rule Making & Joint Regulation in Industry.
• By & Through Bargaining between Management &
Employee unions.
• Based on Give & Take, Trial of Strengths, Tug of War.
• A Power-Game Backed by the Pressures of Direct Actions
like Strike, Lockouts etc.
 Collective Bargaining
• Bipartite Negotiations
• Trade Union & Management (As groups)
• Working & Service Conditions of employees (Viz
Wages, Bonus, Amenities)
• Productivity, Quality, Discipline, Work-Culture.
• To reach an Agreement/Settlement for a fixed
period.
 Features of CB
• Collective- Bargaining By, For & Of the
Group-labour & management. (Bipartite)
• On-going & dynamic Process
• Strength & Power Relationships.
• Pressure Game backed by threats of direct
actions viz Strikes, Lock-outs etc.
• Best & Effective Method of Dispute
Resolution Vis-à-vis other Methods
 Objectives of CB
• To Settle Disputes- To Resolve Conflicts.
• To lay down Mutually Binding Rules by way of
Agreement/Settlement
• To achieve Industrial Peace, Harmony & Cordial
Relations between Union & Mgt.
• To help to improve Living Standards of employees.
• To help to achieve & maintain Profitability & discipline in
the organization.
• Contribution to National-Economic progress & prosperity.
Bargain-able Issues & Demands
• Wages, Allowances, Bonus
• Fringe Benefits & Leave Facilities
• Health, Safety & Welfare Measures.
• Job Security- Tenure of Employment.
• Union Recognition.
• Restructuring (Reduction) of Manpower as a result of Automation,
Modernization, Technology, Financial Crunch etc.
• Grievance Handling Procedure.
• Methods, Tools & Techniques of Work.
• Seniority, Promotions, Transfers etc.
• Production & Quality Norms, Production Schedules etc.
• No Extra Financial Burden during the subsistence of Settlement.
Day to day Routine Administrative Matters, Disciplinary Actions &
punishments are generally out of the scope of CB.
Issues outside CB Scope
• Routine Administrative matters under the scope
of Works Committee.
• Managerial & Business Polices & Strategies not
concerned with Employees & Unions
• Termination of services of employees in any
manner whatsoever (by employer or employee)
• Disciplinary Actions-Misconduct, Enquiry &
Punishments.
• Issues within the scope of Grievance Handling
Mechanism/Procedure.
 Pre-requisites for Effective CB
• Strong & Independent Union.
• Recognized-Representative Union.
• Professional & Enlightened Management.
• Mutual Trust & Respect.
• Understanding & Maturity.
• Strong Conviction to Solve Problems.
• Commitment to the ideology & spirit of CB
 Negotiations

• Conference, Dialogue & Debate

• With a view to gain something of value
• To arrive at an Agreement or Compromise
• It is an advocacy & diplomacy approach
• A process which is core of CB Mechanism
 Home-Work & Preparations for
Negotiations
• To gather facts to study the position & styles of the other party.
• To Collect & Study the current & past Union Agreements of the company &
current Agreements of other similar industries.
• Study & Analyze Charter of Demands of union.
• Ask for written justifications from union for their demands.
• To prepare a Comparative Statement (Excel Sheet) of demands & benefits
at a glance.
• Keep in mind the Law-Labour Acts, Recent & proposed amendments.
• Prepare Counter Proposals/Demands & alternate offers.
• Prepare BATNA- Best alternative to Negotiated agreement.
• Keep in mind- Industry Cum Region Basis, HR policies, financial capacity to
pay, cost to the company over next 5 years, future plans of company,
Market conditions & state of economy over next 5 years.
During Negotiations
• Appoint Senior Executives with Authority to decide as Negotiators.
• Meetings be held at Conference Rooms or Chamber of Senior most Executive.
• Take up single issue/demand at a time for discussions- Initially Non-Financial Issues
be discussed.
• If necessary take adequate breaks or adjourn meetings.
• Major Financial issues like Wage rise be discussed at the end or in adjourned
meetings.
• Justify statements/proposals by facts & figures.
• Prepare Minutes of every meeting & obtain signatures of all present.
• Serve the copy to union leaders & display it on general notice board for information
of all.
• Listen with open mind & Keep Cool
• Maintain friendly & humorous atmosphere in the meeting.
• Do not give threats of Direct Actions but hint so without getting agitated at the
Break-off point after suggesting Conciliation by Labour Commissioner.
After Negotiations

• Reviewing Negotiations
• Drafting of Agreement/Settlement
• Signing of Settlement before Conciliator.
• Administration-Implementation &
interpretation of CB Agreement.
 Negotiator’s Traits
• Cool & Trusting Temperament
• Patience-Tolerance of other’s Viewpoints.
• Open mindedness
• Decent-Pleasing Personality.
• Sense of Humor
• Integrity
• Tact & knack
• Readiness to Compromise.
• Effective Communication & Listening Skills-Assertiveness,
Sending Message effectively & developing Rapport.
Legal Aspects of CB Agreements &
Settlements
• Refer Sections 2(p), 18 & 19 of ID Act.
• CB Agreement with recognized union is binding
on all employees (also Non-members) signed
directly & with or without conciliation.
• CB Settlement with majority (registered)union
signed before conciliator & registered is binding
on all employees. (need not be recognized)
• CB Agreement signed with non-recognized union
outside conciliation & not registered binds only
parties to agreement.
Legal Aspects-Contd.
• Settlement/Agreement is to be effective & operational for minimum
6 months or more as expressly agreed to in it.
• 2 Months Notice is necessary to terminate Agreement/Settlement.
• Terms of settlement will continue to be operational & effective till
replaced by terms of new settlement (Old Agreement to Continue till
New Agreement is made effective i.e. comes into force)
• Employees who availed & enjoyed benefits of legal Agreement
cannot challenge its validity.
• Demands involving additional financial burden cannot be raised
during till its expiry.
• Agreements/Settlements cannot be violate Provisions of Law.
• Agreements/Settlements giving better benefits to employees than
law are valid & enforceable.
• It Lays down law within permissible limits of Statutory Law.
 Format of Collective Bargaining
Agreement/Settlement
• Date & Place of Agreement/Settlement
• Names of the Parties-Mgt & Union
• Applicability & Coverage
• Short Recital- Introduction & Background.
• Duration-Period of Operation
• Termination- Procedure etc
• Body of Agreement- Terms of agreement
• Annexure- Appendices
• Signature of parties, witnesses
• Seal & Signature of Conciliation officer.
• Registration No & Stamp of Labour office.
Terms of Agreement
• Wages, Allowances, Incentives, Bonus
• Fringe benefits, Leave facilities, Festival holidays
• Working conditions & Welfare measures
• Reliever duty, Shift Timings
• Seniority, Transfers, Promotions
• Job Profiles/Descriptions
• Production targets
• Quality standards.
• Grievance procedure.
• No Extra Financial Burden on company during subsistence of
Settlement/Agreement.
 Methods of Industrial
Disputes/Conflicts Settlement
• Collective Bargaining- bipartite dialogue &
Negotiations (without third party)
• Conciliation- Govt. Labour department-
Labour Commissioners. (third party)
• Voluntary Arbitration- Arbitrator of Choice.
• Compulsory Arbitration i.e. Adjudication-
Through Labour Courts & Industrial
Tribunals. (Judicial Settlement)