Legislation Concerning Settlement Of Industrial Disputes

Presented By : Ankita Sharma Pranay Bhowmick

Some Important Definitions

Industrial Disputes Any Dispute or difference between employers and employers or between employers and workmen, or between workmen and workmen, which is connected with the employment or nonemployment or the terms of employment or with the conditions of labour of any person.
Strike A cessation of work by a body of persons employed in any industry acting in combination, or a concerted refusal, or a refusal under a common understanding, of any number of persons who are or have been so employed to continue to work or to accept employment. Lock-out The closing of a place of employment, or the suspension of work, or the refusal by an employer to continue to employ any number of persons employed by him.

Workman
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, and for the purposes of any proceeding under the Act in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute, or whose dismissal, discharge,or retrenchment has led to that dispute,but does not include any such person:-

i.

ii.

iii.

iv.

Who is subject to the Army Act,1950, or the Air Force Act,1950 or the Navy Act,1957; or Who is employed in police service as an officer or other employee of a prison; or Who is employed mainly in a managerial or administrative capacity; or Who, being employed in a supervisory capacity, draws wages exceeding one thousand and six hundred rupees or exercises either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature.

Lay-off The failure,refusal, or inability of an employer on account of shortage of coal,power or raw materials or the accumulation of stocks or the breakdown of machinery or natural calamity or any other connected reason to give employment to a workman whose name is borne on the muster rolls of his establishment and who has not been retrenched.

Retrenchment
The termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include:

a)

Voluntary retirement of the workman; or

b)

Retirement of the workman on reaching the age of superannuation if the contract of employment between the employer and the workman concerned contains a stipulation in that behalf;

c)

Termination of the service of the workman as a result of the non-renewal of the contract of employment between the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein; or

d)

Termination of the service of a workman on the ground of continued ill health.

Settlement
A settlement, arrived at in the course of a 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 in the prescribed manner and a copy of the same has been sent to an officer authorized in this behalf by the appropriate government and the Conciliation Officer.


a)

Appropriate government
Central Governmentin relation to any industrial dispute concerning any industry carried on by or under the authority of the central government or in relation to an industrial dispute concerning a Dock Labour Board or Industrial Finance Corporation of India,etc. or any other industry under the authority of the central government. State Governmentin relation to any other industrial dispute which is under the authority of other than central government i.e state government or any local governing body.

b)

Public Utility Service

Any railway/transport service carrying passengers or goods Working of any major port or dock Industrial establishment Postal, telegraph or telephone Power,light or water supply to public Public conservancy or sanitation Other 27 industries only if specifically declared by government as a public utility service(usually for 6 months but may be extended)

Industry
Any systematic activity carried on by cooperation between an employer and his workmen for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes, whether or not (a) any capital has been invested for the purpose of carrying on such activity; or (b) Such activity is carried on with a motive to make any gain or profit and includes

(i)

1.
2.

any activity of the Dock Labour Board established under the Dock Workers Act,1948 and (ii) any activity relating to the promotion of sales or business or both carried on by an establishment; but does not include the following: Hospitals or dispensaries Any agricultural operation except where such agricultural operation is carried on in an integrated manner with any other activity and such other activity is the predominant one.

3.
4.

5.
6.

Educational, scientific, research or training institutions; Institutions owned or managed by organizations wholly or substantially engaged in any charitable, social or philanthropic service; Khadi or village industries; Any activity of the government relatable to the sovereign functions of the government including all the activities carried on by the departments of the central government dealing with defence research, atomic energy and space;

7.

8.

9.

Any domestic service; Any activity, being a profession practised by an individual or body of individuals, if the number of persons employed by the individual or body of individuals in relation to such profession is less than ten; Any activity, being an activity carried on by a coopeartive society or a club or any other like body of individuals, if the number of persons employed in relation to such activity is less than ten

Authorities And Reference Of Disputes

1.
2. 3. 4. 5. 6. 7.

8.
9.

The authorities for prevention or settlement of disputes under the Act include:Grievance Settlement Authority Works Committee Conciliation Officer Board of Conciliation Court of Inquiry Labour Court Tribunal National tribunal Arbitrator

Grievance Settlement Authority

intended to deal mainly with individual disputes connected with an individual workman. In industrial establishment in which fifty or more workmen are employed or have been employed on any day in the preceeding twelve months,the employer is required to constitute, in accordance with the rules framed in this regard Workman or the trade union of which he is a member,may refer the dispute in the prescribed manner to the Grievance Settlement Authority for settlement. Follow prescribed procedure and to complete the proceedings within specified time.

No reference of any dispute is to be made to conciliation and adjudication authorities or arbitrator unless the dispute has been referred to the Grievance Settlement Authority and its decision is not acceptable to any of the parties to the dispute.

Works Committee

Its a machinery for the prevention of industrial disputes. Works Committee is formed in any industrial establishment in which one hundred or more workmen are employed or have been employed on any day in the preceeding twelve months. It consists representatives of employers and workmen engaged in the establishment, so number of workers representatives is not less than employers representatives.

The representatives of the workmen are to be chosen from amongst the workmen engaged in the establishment in consultation with their registered trade union, if any. The Functions of Works committee are: to promote measures for securing and preserving amity and good relations between the employers and workmen To achieve the end, to comment upon matters of their common interest or concern and Endeavour to compose any material difference of opinion in respect of such matters.

Conciliation Officer

The appropriate government is empowered to appoint Conciliation Officers by notification in the official gazette for mediating in and promoting the settlement of industrial disputes. The number of Conciliation Officers to be appointed is to be determined by the appropriate government. A conciliation officer may be appointed for a specified area or for specified industries in a specified area or for one or more specified industries either premanently or for a limited period.

The Duties of conciliation officers are: Where any industrial dispute exists or is apprehended, or where the dispute is related to public utility service and a notice of strike or lockout must hold proceedings in the prescribed manner. He is required to investigate the dispute and all matters and Take appropriate steps for inducing the parties to a fair and amicable settlement of the dispute.

If Settlement is arrived: then he must send a copy of the report and the memorandum of settlement signed by the parties to the appropriate government or an officer authorized by it. If no Settlement is arrived: he has to send a full report to the appropriate government stating the steps taken by him and facts and circumstances relating to the dispute and the reasons of which settlement could not be arrived at.

The officer is required to submit his report within fourteen days of the commencement of the conciliation proceedings, but the time for the submission may be extended further on written request of the parties to the dispute. When a settlement is not reached, the appropriate government, after considering the report may refer the dispute to a Board of Conciliation,Labour Court,Tribunal or National Tribunal.

1.

2.

Powers of Conciliation Officers: Is empowered, after giving a reasonable notice,to enter the premises occupied by any establishment for the purpose of inquiry into any existing dispute related to the establishment. He may also enforce the attendance of any person for the purpose of examining him and call for inspection any document relevant to the dispute or for verifying the implementation of any award.

He enjoys the same powers as are vested in a Civil Court under the Code of Civil Procedure,1908 in respect of enforcing the attendance of any person and examining him and compelling the production of documents, and is deemed to be a public servant under the Indian Penal Code.

Board of Conciliation

Independent chairman 2 or 4 members appointed in equal number representing the parties Government will appoint representatives if the parties fail to do so. May function in the absence of chairman or members unless govt makes appropriate notification Reference of disputes to the board:

Govt may Order in writing to refer the dispute to the board Parties can make application, jointly or separately and if the govt is satisfied reference is made

Board of Conciliation

Duties and powers Investigate all matters and endeavor settlement Take steps for a fair settlement Send report and memorandum to the govt. if settlement is arrived at. (within 2 months, or as determined) If not, then send report to the govt. with reasons and recommendations. (within 2 months, or as determined)
Commencement of proceedings On the date of notice of strike/lock-out (Sec 22) Conclusion of proceedings Memorandum of settlement signed by parties Report received by government Reference made to Court of inquiry,Labour court,Tribunal or national tribunal

Board of Conciliation

Period of operation of settlement

Date agreed upon by parties or 6 months from date of memorandum Binding till expiry of 2months from a written notice by one of parties stating intention to terminate the settlement.

Persons on whom settlements are binding

All parties to the dispute Other parties summoned to appear in the proceedings In case of employers,his heirs or successors , or in respect of the establishment In case of workmen, all persons employed in the establishment or a part of it.

Court of Inquiry

Purpose Inquiring into any matter appearing to be connected with or relevant to an industrial dispute Composition 1 independent person In case of 2 or more persons, 1 is to be appointed as the chairman. All members are deemed to be public servants. COI may appoint person(s) with special knowledge of the matter Can function even if chairman/members are absent but not if service of the chairman has ceased to be available

Court of Inquiry

Inquiry and reporting to the govt must be done within 6months from commencement Report is to be in writing and signed by all its members Any member can state his dissent from the recommendations Report to be published by govt within 30days of receipt of the report Powers of COI = powers of Civil Court under Code of Civil Procedure,1908 Inquiries and investigations deemed as a judicial proceeding within meaning of Indian Penal Code,1860

Labour Court

Appropriate govt may constitute one or more Labour Courts for the adjudicaiton of industrial disputes relating to matter provided in 2nd schedule of the act. It includes:

Propriety or legality of an order passed by employer under standing orders Application and interpretation of standing orders Discharge or dismissal of workmen Withdrawal of customary concession Illegality, strike, lock-out All matters except those mentioned in 3rd schedule

Labour Court

Consists of 1 person only.

He should be or have been a judge of High Court Or should have been a District Judge or Add. District Judge for atleast 3 years Or should have held any judicial office in India for atleast 7 years Or should have been the presiding officer of a labour court constituted under any province/state act for atleast 5 years

Tribunal

For adjudication of disputes mentioned in 2nd schedule or in the 3rd schedule. 3rd schedule includes: Wages, including period and mode of payment Compensatory and other allowances Hours of work and intervals Leave with wages and holidays Bonus, profit-sharing, PF and gratuity Shift working otherwise than in standing order Classification by grades Rules of discipline Retrenchment of workmen Closure of establishment

Tribunal

Consists of one person only Appointed by appropriate govt. Qualified only when:

He is or has been a High Court Judge or He has been District or Add. District judge for atleast 3 years

Two assessors to advise the Tribunal may also be appointed

National Tribunal

Adjudication of Disputes involving national importance or for industrial establishments in more than 1 state. Consists of 1 person only Appointed by Central govt. He should be/have been a High Court Judge Two assessors to advice him maybe appointed

Prohibition of Strikes in Public Utility Services

A person employed in public utility service must not go on strike in breach of contract

Without giving notice to employer before 6 weeks of striking Within 14 days of giving such notice Before the expiry of date specified in notice During pendency of concilliation and 7 days after conclusion of such proceedings

Notice should in the prescribed manner

If employer receives many notices on any day,he should report to the govt. or an authority within 5 days.

Illegal strikes and lock-outs

Commenced in contraventions of the provisions relating to general prohibition of strikes/lock-outs or public services

Continued in contravention of an order under Sub-section (3) of Sec 10 Continued in contravention of an order in sub-section 4A of Sec 10

Lay-off

Do not apply to to an industrial establishment: With <50 workmen employed on avg/ working day in the preceding month Having seasonal character or work performed intermittently (this is to be decided by govt.) Right of workmen laid-off for compensation When a workmen (other than a badli or casual workmen) having his name on the muster roll and has completed 1 year of continuous service , is laid off , he is entitled to compensation = 50% of total basic wages + allowance that would have been payable to him had he not been laid off. (no allowance for weekly holidays that may intervene)

Lay off : Cases in which workmen are not entitled to lay-off compensation:

If he refuses to accept alternative employment in the same establishment or other in the same town/village within a radius of 5 miles. If he does not present himself for work at the appointed time during normal hours atleast once a day If such lay-off is due to strike or slowing down of production on the part of workmen in another part of establishment

Retrenchment
Conditions: Act prohibits from retrenching a workman who has been in continuous service for one year EXCEPT if:

He has been given 1 months notice in writing indicating reasons and the period of notice expired He has been paid compensation (= 15days average pay for every completed year of service or any part of it in excess of 6 months) Notice has been served on govt/authority specified by it by notification in the official gazette

Closure

Notice of intention to close down: Employer required to serve a notice atleast 60 days before closure Not necessary for:

Undertaking with <50 workem employed Undertaking setup for construction works like buildings, bridges, canals, dams

Compensation to workmen Workmen employed for a year or more is entitled compensation as if he is retrenched For unavoidable circumstances, compensation is not to exceed his avg pay for 3 months In construction work spanning more than 2 year,compensation is applicable.

Bombay Industrial Relations Act , 1946

Objective: To regulate industrial relations Speedier settlement of industrial disputes

Objective to be achieved through provisions of : 1.Joint Committees :

Employers required to form JC to serve as a direct link between employers and employees

2.Labour officers :

They are required to promote harmonious relations between employers and employees, to report to govt about disputes and appear in proceedings

3. Conciliators :

They are required to make an endeavor for speedy settlement. Agreement reached is binding. If no agreement takes place,he is required to send a complete report to the Chief Conciliator.

4.Adjudication authorities

Labour Court : Disputes relating to standing orders , changes in specified matters and disputes being referred to by the govt. Wage Board : Functions under the supervision of Industrial court Industrial Court It is the appellate authority

The act further provides classification of trade unions into 4 categories : representative , qualified , primary and approved.