ID typed part

• Settlements & Awards

 Settlement is defined in Sec. 2(p) of the Industrial Disputes act envisages 2

categories:
(a) a settlement which is arrived at in the course of conciliation proceedings.
(b) a agreement between the employer & the workmen arrived at otherwise
than the course of conciliation proceedings.

 Awards is defined as in Sec. 2 (b) as an interim or a final determination of any

industrial dispute or of any question relating thereto, by any Labour Court,
Industrial Tribunal or National Industrial Tribunal.

• On whom it is binding:

i. All the parties to the industrial dispute;

ii. All other parties summoned to appear in the proceedings as parties to the
dispute unless they were so summoned without proper cause;

iii. Where a party referred to in clause (a) or clause (b) is an employer, his heirs,
successors or assignees in respect of the establishments to which the dispute
relates.

iv. Where a party referred to in clause (a) or clause (b) is composed of workmen,
all persons who were employed in the establishment or part of the
establishment , as the case may be, to which the dispute relates on the date
of the dispute & all persons who subsequently become employed in that
establishment or part.

• Period of Binding

Settlements:

• A settlement arrived at in the course of conciliation proceedings is binding for

a period agreed upon by the parties.

• If no such period is agreed upon, the settlement will remain in force for a
period of 6 mths. From the date on which the memorandum of settlement is
signed by the parties to the dispute.

• It will continue to be binding until the expiry of 2 mths from the date on
which one of the parties gives notice in writing to the other of its intention to
terminate the settlement.

Awards:
 i. An award is binding & will come into operation on the expiry of 30 days from
the date of its publication.

ii. It will remain in operation for a period of 1 year from the date on which the
award becomes enforceable.

iii. Government may reduce the said period & fix such periods as it thinks fit.
The government may also extend the period of operation by any period not
exceeding 1 yr. at a time but the total period of operation of any award
cannot exceed 3 yrs. From the date on which it comes into operation.

iv. Even if period of operation of an award expires, it shall be binding on the

parties until 2 mths have elapsed from the date on which notice is given by
one party bound by the award to the other party intimating its intention to
terminate the award.

v. If for any reason the award does not become enforceable, it can never come
into operation. The date on which an award comes into operation may or may
not be the date on which it becomes enforceable.

• Penalties & Case studies of settlement & awards

 Penalty for breach of settlement or award:

i. Shall be punishable with imprisonment for a term which may extend to 6

mths. Or with fine.

ii. Or with both (and where the breach is continuing one, with a further fine
which may extend to Rs. 200 for every day during which the breaches
continues after the conviction for the first.

iii. The court trying the offence, if it fines the offender, may direct that the whole
or any part of the fine realised from him shall be paid, by way of
compensation, to any person who, in its opinion, has been injured by such
breach.

 Case Studies:

i. Management of Northern India Theatres vs. Presiding Officer Labour Court,

Delhi. (1975-I LLJ. 235)

ii. Volkart brothers vs. T.V. Chellapa & Others (1954-7 FJR. 513)

• Strikes

■ Sec. 2(q) defines a strike as follows:

 i. The cessation of work by a body of persons employed in any industry
acting in combination ; or

ii. A concerted refusal, or a refusal, under a common understanding, of

any number of persons who are, or have been, so employed to
continue to work or accept employment.

■ Following ingredients can be postulated from the definition of

‘strike’:

i. Plurality of workmen.

ii. Cessation of work or refusal to continue to work.

iii. Acting in combination or concerted action under a common

understanding.

 General prohibition of strikes:

No group of workman may strike in the following 5 situations:

1. Conciliation going on before a Board of Conciliation & 7 days thereafter.

2. Adjudication before a Labour Court or Tribunal & 2 mths. thereafter.

3. Appropriate government prohibits the continuance of any strike.

4. Arbitration before an Arbitrator & 2 mths. thereafter.

5. A settlement or an award is in operation.

(Note: prohibition restricted to those matters only which are covered by the
settlement or award.)

• Additional restrictions on strikes in Public Utility Services (Sec. 22).

• Strike notice must be given to the employer & Conciliation Officer.

• Strike must not take place for 14 days after the notice has been given.

• Strike must not take place after 6 weeks from the notice.

• Strike must not take place before the day, if any, specified in the strike
notice.

• Strike must not take place during conciliation before a Conciliation Officer & 7
days after the conclusion of such proceedings.

• Penalties
 • Penalty for illegal strikes (Sec 26):

Any workman who commences, continues or other wise acts in

furtherance of a strike which is illegal under this Act, shall be punishable,
with imprisonment for a term which may extend to 1 mth., or with fine
which may extend to Rs. 50, or with both.

• Penalty for instigation of illegal strikes (sec. 27):

Any person who instigates or incites others to take part on an illegal

strike in punishable with imprisonment for a term upto 6 mths., or a fine
upto Rs. 1000, or with both.

• Penalty for giving financial aid to illegal strikes (sec. 28):

Any person who knowingly expends or applies any money in direct

support of an illegal strike is punishable with imprisonment for a term
upto 6 mths., or a fine upto Rs. 1000, or with both.

• Case Studies:

1. Lakshmi Devi Sugar Mills vs. Ram Sarup (1957-I LLJ. 17 S.C.)
– sudden concerted stoppage of work.
– strikers cannot be exempted from the consequences.
– employers has the right to suspend the striking workmen.

• LOCK-OUTS

 A lock-out means :-

 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.

 It means the closure of the place of business and not closure of

business itself.

 Lock-out is usually used by the employer as a weapon of collective

bargaining.

• ILLEGAL LOCK-OUTS

Penalty for illegal lock-outs

 An illegal lock-out is punishable for a term extending to 1 month or with fine

up to Rs. 1000 or with both.
Penalty for instigation of illegal lock-outs

 An illegal lock-out is punishable with imprisonment for a term which may

extend to 6 months or a fine up to Rs. 1000 or with both.

Case Studies :-

 Northbook Jute Co. Ltd. Vs. Their Workmen

 Indian Cork Mills (P) vs. Their Workmen

• Lay – off (Chpt. VA & VB)

 Section 2 (KK) of the Act defines lay – off as “ the failure, refusal or
inability of an employer on account of shortage of coal & power or
raw material or the accumulation of stocks or the breakdown of
machinery or for any other reason to give employment to a workmen
whose name is borne on the muster roll of his industrial
establishment & who has not been retrenched.”

 Lay – off provisions of the Act:

i. Sec, 2 (m) of the Factories Act, 1948.

ii. Sec. 2 (i) of Mines Act, 1952. &

iii. Sec. 2 (f) of Plantation Labour Act, 1951.

 In Industrial undertaking where lay – off provisions apply, only those

workmen will be entitled to lay – off compensation.

 A workmen is entitled for compensation for all days of lay – off

unless there is an agreement to the contrary between him & the
employer to the limit of 45 days in a year.

 No compensation shall be paid to the workmen:

i. If he refuses to accept any alternative employment in the same

establishment.

ii. If he does not present himself for work at the establishment at

appointed time during working hours atleast once a day.

iii. If such laying – off is due to strike or slowing down of production on

the part of workmen.
  If a workmen has been laid – off by his employer due to shortage of
power or natural calamity, the appropriate government makes an
enquiry if he thinks fit. If the authority does not communicate the
permission within 2 mths. With the employer then lay – off is
deemed to be granted. If the appropriate government refuses the
permission for lay – off, then lay – off is deemed illegal, then the
workmen is entitled for all the benefits from the time he has been
laid – off.

• Lay – Off (Chpt. VA & VB)

• Cases regarding Lay-off :-3

1. Sur Enamel & Stamping Works Ltd. V/s Their Workman(1963-II LLJ 367):

• Supreme Court said that for 1 year of continuous service it must be shown
that a person must be employed for period not less than 12 months and
during those 12 months he must have worked not less than 240 days.

2. Surendra Kumar Verma V/s Central Government industrial Tribunal (1981-I

LLJ.386):

• Here the Supreme Court said that it is not necessary for an employee to have
worked for the period of 12 months and just having worked for not less than
240 days will qualify within the terms.

3. Madras High Court in P. Joseph and others V/s Loyal Textile Mills (1975-I LLJ
499):

• Badli workman who has completed 240 days of service is entitled to lay-off
compensation but here the badli workman had been excluded from lay-off
compensation.

• Penalty for Lay-off:-

Any employer who contravenes the provisions of lay - off is

punishable with imprisonment for a term which may extend to Rs.1000/- or
both.

• Retrenchment (Chpt. VA & VB)

 Sec. 2 (oo) defines Retrenchment as the termination by the employer of the

service of the workman for any reason whatsoever, otherwise than a
punishment inflicted by way of disciplinary action.
  Retrenchment does not include voluntary retirement superannuation,
termination of employment on grounds of ill health; do not amount to
retrenchment.

 No workmen who has been employed for 1 year can be retrenched until:

i. 1 month notice in written & reason for retrenchment.

ii. 15 days average pay for every completed year of service.

iii. Notice served to the appropriate government.

I. No workmen employed in any industrial establishment who has been to

continuous service for not less than 1 yr. under an employer shall be
retrenched by that employer until:

II. Has been given 3 mths notice in written, indicating the reasons for
retrenchment. – no such notice shall be necessary if the retrenchment is
under an agreement which specify a date for termination of service.

III. Compensation shall be equivalent to 15 days average pay for every

completed years of continuous service or any part thereof in excess of 6
months

IV. Notice shall be given to appropriate government or such authority & the
permission of such government or authority is obtained.

V. Government or authority after making inquiry may grant or refuse the

permission to the employer within 3 mths. Of the date of service of the
notice.
– if it does not communicate within 3 mths. Of such notice then the
retrenchment is legal.
– if it does refuse the permission then the retrenchment is illegal.

VI. Sec. 25 – N is constitutionally valid.

VII. Authority under Sec. 25 - N exercises powers which are quasi-judicial & not
purely administrative.

• Retrenchment :- Case Study

 Indian Hume Pipe Co. Ltd. Vs. Their Workmen

( 1959-II LLJ. 830 )

 State Bank of India vs. R. Sundaramony

( 1976-I LLJ. 478 )

 • Closure

 Closure has been defined as the permanent closing down of a place

of employment or part there of.

• Under Sec. 25 FFA:

60days prior notice to the appropriate government. But this section

shall not apply to:

a) An undertaking in which less than 50 workmen are employed or were

employed on an average per working day in the preceding 12
months.

b) An undertaking setup for the construction of buildings, bridges,

roads, canals, dams, or for other construction, work or project.

• Under Sec. 25 FFF:

a) An employer / workmen who is in continuous service for a period on

1 yr. is entitled for notice of compensation.

b) Compensation under unavoidable circumstances –

not exceed the average pay for 3 mths.

 The act was amended in march 1976.

 Imposing some restrictions on the employers right to layoff,

retrenchment & closure.

 This special provisions shall apply to all industrial establishments

(except seasonal) in which not less than 300 workmen were
employed on an average per working day for the preceeding 12
months.

• Under Sec. 25 – 0

► An employer who intends to close down an undertaking or an

industrial establishment shall serve,

a) Approval at least 90 days before the date.

b) It shall not apply to an undertaking setup for the construction of

buildings, bridges, roads, dams, canals, or for other construction
work.

► If the appropriate government does not communicate the permission

within period of 2 months from the application date –
 The permission applied for shall be deemed to have been
granted on the expiration of the said period of 2 months.

► If the permission for closure is refused –

The closure of the undertaking shall be deemed to be ill –

legal.

Full part

 The Industrial Disputes Act, 1947

 Industrial Conflict

 Conflict is inherent in industrial relations today.

 Interest of labor and management usually opposes

 The prevailing unrest , work stoppages resulting from strikes or lock-outs ,

slowing down of production etc.

When issues of conflict are submitted to the management for negotiation, they take
the form of industrial disputes.

Special causes of industrial conflict may be treated as causes of industrial

disputes.;

 Objectives

 To prevent & resolve industrial disputes

 Securing amity & good relations between workers & management, for
common good

 Imp. Definitions

 Industrial Dispute :

 Any dispute between :

 Employers & employers

 Employers & workmen

 Workmen & workmen

 Connected with
  The terms of employment or

 Conditions of labour of any person.

 Define Workman u/s 2(s)

 Any person (including an apprentice)

 employed in an 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

purpose of this Act includes

 any such person who has been dismissed discharged or retrenched in

connection with or as a consequence of an industrial dispute or whose
dismissal or retrenchment has led to the dispute

 But, does NOT include a person :

 who is subject to Army Act, 1950 , Air Force Act 1950 or Navy Act
1957

 Who is employed in police service as an officer or other employee of a

prison

 Who is employed mainly in managerial or admn. Capacity

 A supervisor drawing wages exceeding a specified amount (mentioned

in the Rules)

 Define Industry [u/s 2(j)]

 Any systematic activity carried on by cooperation between employer & his

workmen (whether workmen are employed directly or through an agency) for
the production, supply or distribution of goods or services.

 or services with a view to satisfy human wants or wishes (not being wants or
wishes which are merely spiritual or religious in nature), whether or not,-

 Whether or not any capital has been invested or such activity is being carried
out for the purpose of making profits

 But it DOES NOT include:

 Any agricultural operation (except when the agri operation is integrated with
another activity & that is the predominant one)

 Hospitals or dispensaries

 Educational, scientific, research or training institutions

 Khadi or village industry

 Any sovereign function of the govt

 Any domestic service

 Any profession practiced by an individual if the number of persons employed

by the individual is less than ten

 Cooperative society employing less than 10 persons

 Machinery for the Prevention & Settlement of Industrial Disputes

 Authorities appointed under ID Act :

 Works Committee

 Conciliation Officer

 Board of Conciliation

 Court of Inquiry

 Labour Court

 Industrial Tribunal

 National Tribunal

 Works Committee (u/s 3)

 What is the statutory requirement for constituting WC?

 Every Industrial establishment in which: 100 or more workmen are

employed or

 have been employed on any day in the preceding 12 months.

 Whom does it consist of ?

 Bipartite – representatives of both

  Representatives of workmen equal to that of employer ,

 Term of representatives shall be 2 years

 Which type of issues handled ?

 Matters arising out of the day to day working of the organisation (e.g
health, safety , welfare of employees , productivity , quality, cost
consciousness)

 Consultative body

 Conciliation officer

 Appropriate govt. may appoint CO

 CO may be Labor officer(less than 20 workmen),Labor Commisioner or

Deputy Com for more than 20.

 CO work is to induce both the parties to the dispute to come to fair and
amicable settlement.

 Mediation (negotiate on proposal made by mediatorv/s

Conciliation( own proposal)

 Send a report (proceedings- successful or failed) to govt. within 14 days of

start of proceedings

 After considering the govt may refer the dispute to BOC , Labour court,
Tribunal or national tribunal.

 Board of concilliation

Composition :Chairman and 2 or 4 members ,

Duties & power same as conciliatory officer

: if dispute is settled – then report to be sent to app. Govt.If not then also. Submit
within 2 months

 Courts of Inquiry

 The app govt may constitute COI connected with dispute

 A COI may consist of one or more persons as members.Chairman

 Inquire into the report and submit to govt within 6 months from
commencement of inquiry.
  Inquire and reveal the case

 Labour court

 The app govt may appoint LC – any matter specifies in II Schedule

 Composition – consist of 1 person – should be or have been a judge of HC, or

for 3 yrs been a district judge or an add district judge, have held any judicial
office in india for 7 yrs,

 Matters in II schedule: under standing order,

 Application or interpretation of SO, discharge or dismissal of workers, workers

wrongly dismissed, withdrawal of concession or privilege, illegality of strike or
lockout, all matters other than III schedule

 Tribunals

 Whether in II schedule or III

 consist of 1 person – should be or have been a judge of HC, or for 3 yrs been
a district judge or an add district judge

 Matters; wages , including period, mode of payment, compensatory

allowances, hrs of work, intervals, leave with wages, bonus , profit, pf
gratuity, shift work, classification fo grades, rules of discipline, retrenchment,
closure,

 National tribunal

 Central govt may refer the dispute to NT : if the matter is of national

importance

 The parties to an industrial dispute are required not to resort to work

stoppage if dispute is pending before the Board of Concilation or adjudication
authority.

 Methods for settlement and prevention of Industrial dispute

Collective Bargaining: Steps

 Presentation in collective manner(demands and grievances)

 Discussions, bargaining and negotiations on mutual grounds

 Signing of formal agreement or informal understanding

 In even of failure,likely resort to strikes or lock outs

  Bargaining with the help of third party is called Conciliation or mediation

Voluntary Arbitration

 When the parties feel that mutual negotiations will not succeed ,it may
decide to submit the dispute to a neutral person or group of persons for
arbitration.

 Award given may or may not be binding on parties

 Conciliation and Mediation

The aim of conciliator is to break the deadlock ,explain the view point of one party
to the other, convey messages and keep the negotiation going.

Parties may or may not accept the sugestions.

 Adjudication

 Under the condition when dispute is not settled and parties adhere to strikes
and lockouts, Govt may decide to refer the dispute to adjudication and force
the parties to abide by the award of the adjudicator

 Prohibit the party from work stoppages.

 Compulsory method in which parties are forced to go by the power of the

state.

 Decision imposed by third party

 Basis of decision is law and justice

 Referred to Court of Arbitration of Tribunal

 Voluntary reference of disputes to arbitration

 Sec. 10 (A) (1): Before the Govt. refers a dispute to adjudication, the
employer & workmen, can voluntarily refer it to an arbitrator(s) through a
written agreement.

 If there are an even number of arbitrators are there an umpire shall be

appointed whose decision shall prevail if the others are equally divided in
their opinion.

 A copy of the arbitration agreement shall be sent to the appropriate Govt.

and the conciliation officer and the same shall be published in the official
gazette within one month.
 When the Govt. is satisfied that the persons who have signed the arbitration
agreement represent the majority of each party , the dispute is referred to
arbitration and the Govt. issues a notification (The dispute shall be settled
through arbitration ….) and …….

 When a dispute has been referred to arbitration and a notification has been
issued, the Govt. may prohibit the continuance of a strike or lock out

 The arbitrator (s) shall investigate the dispute and submit the award to the
appropriate Govt.

 Case : Liberty Footwear Co.

 Karnal Leather Karamcjari Sanghathan Vs. Liberty Footwear Co. , AIR 1990 ,
SC

 Question : If an arbitration agreement is not published, will the arbitrator’s

award still be valid ?

 Facts :

 Workers’ Union claimed that the management had illegally terminated more
than 200 workmen .

 Workers went on strike ….. Violence ….. Police….. Deputy Commissioner…..

Labour Commissioner

 Both parties agreed to get the dispute settled through an arbitration

committee consisting of 5 persons (2 from the management, two from the
Union with the D.C as the President)

 The committee gave its award to reinstate 159 workers

 The management did not reinstate the workers ….… another dispute arose!

 The management challenged the validity of the arbitrartion award ….. Writ
petition in the High Court

 The ground ….. the arbitrartion agreement was not published in the official
gazzette as per requirement of subsec. 3 of Sec. 10 (A) .

 The High Court accepted the writ petition i.e requirement of publishing the
agreement is mandatory.

 Workmen appealed to the Supreme Court

  SC : upheld the HC decision , i.e the arbitration agreement must be published
without which the validity of arbitral award is questionable.

 Strike & Lock out

 2(q) : Cessation of work by a body of persons employed in an industry acting

in combination , or a concerted refusal , or a refusal under common
understanding of any number of persons who are or have been so employed
to continue to work or accept employment.

 Relevant provisions : Sec. 10(3) ; 10A (4A); 22-28

 STRIKE : A concerted and temporary cession of work by workers with a view

to furthering or protecting their interests and rights an securing a fufillment
of their specific demands

 LOCKOUT : temporary closing of place of employment or the suspension of

work or refusal by an employer to continue to employ any number of persons
employed by him or her

 10 (3) : App. Govt. can prohibit the continuance of a strike in connection with
a dispute referred to BOC, LC, IT or NT

 10 A (4A) : App. Govt. can prohibit the continuance of a strike in connection

with a dispute referred to arbitration and a notification is issued u/s 10(3A)

 Forms of strike

 Authorized strikes

Only when union has given consent

Unauthorized strike or Wild Cat strike

Without the approval of the union

Strike by a section of workmen on the spur of moment without any formal

preparation,any formal notice to the employer or consent of relevant unions

General Strikes

 Wide coverage.

 Depending on strike confined to city,or industries

Particular Strikes
  Limited in scope , confined to single plant or or few plants and to a single
trade or occupation in a particular town or city.

 Work-to-rule strike:

Employees declare that they will perform their tasks strictly in accordance with the
rules prescribed . may result in slow down.

 Ordinary strike

Workers quit their places of work and prevent others,occassionaly by violence but
mostly by persuasion or picketing, from replacing them

 Sympathetic Strike :

Conducted out of sympathy for the cause of another group whether on strike or not.

Gherao:

Involves confinement of authorities in their offices by workers to exert pressure on

management to accept their demands

 Types based on Techniques

 Slow –down strike: workers do not stop working ,rather they slow down the
pace of work

 Quickie strike : Workers remain in their place of work,but they stop work for
a brief period for few minutes or hours.

 Sit-down strike: Workers remain in their place of work but they do not
work. Duration is long as compared to quickie.

 Public Utility Service

 Any railway service or any transport service

 Any service in major port and dock

 Any postal, telegraph or telephone service

 Any industry which supplies power,light or water to public

 Sanitation

 Any industry specified in the First Schedule

 General prohibition of strikes & lockouts

 Sec. 23 : No person employed in any industrial establishment shall go strike
in breach of contract and no employer shall declare lockout :

 During the pendency of conciliation proceedings before a board and

7 days after the conclusion of such proceedings

 During the pendency of proceedings before a Labor Court , Tribunal or

national Tribunal and two months after the conclusion of such
proceedings.

 During the pendency of arbitration proceedings before an arbitrator

and two months after the conclusion [Sec. 10A (3a)]

 During any period in which a settlement or award is in operation in

respect of any matter covered by the settlement or award.

 Strikes & Lock Outs (Chapter V)

 Sec. 22 : Prohibition of Strikes & Lock Outs

 (1)No person employed in a Public Utility Service shall go strike in breach of

contract-

 Without giving to the employer , notice of strike, within 6 weeks before

striking or

 Within 14 days of giving the notice or

 Before the expiry of the date of strike specified in such notice

 During the pendency of any conciliation proceedings before a CO & 7

days after the conclusion of such proceedings.

 Strikes & Lock Outs (Chapter V)

 Sec, 22 (2) :No employer carrying on a Public Utility Service shall lock out any
of his workmen -

 Without giving them, within 6 weeks before locking out

 Within 14 days of giving the notice

 Before the expiry of the date of Lock out specified in such notice

 During the pendency of any conciliation proceedings before a CO & 7

days after the conclusion of such proceedings.
 Employer’s obligation : to inform the appropriate govt. about any notice of
strike received from the workmen or any notice of lock out given to them
within 5 days of receiving or giving such notices.

 Exceptions

 Notice of lockout is not necessary when strike is already in existence , but

intimation of the same is to be sent to the authority specified by appropriate
govt.

 Notice of strike is not necessary when lockout is already in existence , but

intimation of the same is to be sent to the authority specified by appropriate
govt.

 Illegal Strikes & Lockouts

 A strike or lock out shall be deemed to be illegal if :

 It is commenced in contravention of section 22 or 23

 In case of arbitration – strike prohibit

 A lock out in consequence of an illegal strike is NOT illegal and a strike in

consequence of an illegal lockout is NOT illegal.

 Prohibition of financial aid

 Sec. 25 : No person shall knowingly spend any money to support an illegal

strike or lockout.

 Is strike a fundamental right?

 All India bank Employees Union Vs. National Industrial Tribunal , AIR 1962, SC

 Ar. 19 (1)(c ) : Right to form a Union

 Union : It implies that the right to strike should be guaranteed , which is

necessary to achieve the objectives of the Union (e.g Collective bargaining)

 SC : rejected the contention , right to strike is controlled or restricted by

appropriate legislation.

 Lay Off

 2 (kkk) : Failure , refusal or inability of an employer on account of :

 Shortage of coal, power or raw material

  accummulation of stock

 Breakdown of machinery

 Natural calamity

 Or any other connected reason to give employment to a workman

whose name is borne on the muster rolls of industrial establishment
and who has not been retrenched.

 Lay off results in temporary unemployment

 Application of provisions of Act

 Donot apply in establishments

 A). in which less than fifty workmen on an average per working day have
been employed in preceding calender month

 B). which is of seasonal character or in which work is performed only

intermittently.

 Continuous Service

 Uninterrupted Service

 Including service interrupted on account of :

 sickness /accident

 authorized leave

 Legal strike

 Lock Out

 Any cessation of work without the fault of workmen

 Continuous service of One year :

 In 12 calendar months, actually worked for at least

 190 days – establishment below ground

 240 days – any other case

 The number of days on which workman has actually worked shall include:

 Days laid off

  Leave with full wages

 Absent due to temporary disablement caused by accident arising out

of & in the course of employment

 Maternity leave of max. 12 weeks


Right of workmen laid off for compensation

 A workman other than badli or casual workman whose name is on the muster
rolls and who has completed one year of continuous service ,if laid off ,is
entitled to 50% of the total basis wages and dearness allowance.

 If workman is laid off for more than 45 days ,no compensation is payable in
respect of any period of lay off after expiry of first 45 days.

 It is lawful for the employer to retrench the workmen at any time after expiry
of 45 days and compensated accordingly.

 Workmen not entitled to Lay-OFF compensation

 If workman refuses to accept alternative employment in the same est. or

another est of the same employer situated within a radius of 5 miles, if this
employment does not call for any special skill or experience & the wages are
also the same .

 If he does not present himself for work

 If lay off is due to a strike or slow down

 Retrenchment

 2(ooo) : 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 termination due to :

 Voluntary retirement

 Superannuation

 Non-renewal of service contract

 Continued ill health

 Retrenchment – chapter VA
 Conditions precedent to Retrenchment 25 F : No workman employed in an
industry who has cont. service of at least one year, can be retrenched unless

 served 1 month notice indicating reasons for retrenchment or wages in

lieu of it

 has been paid compensation @ 15 days average pay for every

completed year of continuous service or any part thereof in excess of
6 months.

 Notice to the app. Govt.

 The Procedure

 Employer : application for permission to the app. Govt. and its copy to the
workmen

 Principle for retrenchment – 25 G

 Last Come , first go

 Unless the employer records the reasons for retrenching any other workman.

 Closure :

 Permanent closing of a place of employment or part thereof

 Provisions applicable under chapter VA – (51 to 99 workmen)

 Sec. 25 FF A : Sixty days notice

 Notice of the intention to close down an undertaking is to be given to

the app. Govt. 60 days before the intended date of closure.

 This condition is not applicable to undertakings :

 employing less than 50 workmen on an average / day during

the past 12 mths or

 engaged in construction of roads, bridges, canals or other

construction work.

 Govt. can grant exemption from the requirement of notice period ,

under exceptional circumstances (e.g a major accident in the
undertaking requiring it to close down)

 Special provisions related to Lay off CHAPTER vb

 Prohibition of lay off : Sec. 25 M –

 Employer cannot lay off workmen except with the prior permission of the
appropriate govt. except under the following circumstances :

 Shortage of power

 Natural calamity

 Mine : fire, flood, emission of inflammable gas or explosion

 The Procedure

 Employer : application for permission to the app. Govt. and its copy to the
workmen

 Special Circumstances

 If the employer has already laid off workmen due to the permissible reasons
[25 (M) (1)] , one still has to obtain permission in the prescribed manner in
order to continue the lay off .

 If an application for permission has been made but app. Govt. does not reply
within 60 days, the permission is deemed to have been granted.

 Validity of Govt’s Order

 An Govt’s order (granting or refusing the permission shall be a binding on

both the parties and shall be in force for a period of one year.

 Closure :

 Permanent closing of a place of employment or part thereof

 Provisions applicable under chapter VA – (51 to 99 workmen)

 Sec. 25 FF A : Sixty days notice

 Notice of the intention to close down an undertaking is to be given to

the app. Govt. 60 days before the intended date of closure.

 This condition is not applicable to undertakings :

 employing less than 50 workmen on an average / day during

the past 12 mths or

 engaged in construction of roads, bridges, canals or other

construction work.
  Govt. can grant exemption from the requirement of notice period ,
under exceptional circumstances (e.g a major accident in the
undertaking requiring it to close down)

 Compensation on closure of an undertaking ?

 Every workman who has been in cont. service of not less than one year shall
be paid compensation as per sec. 25 F as if he had been retrenched.

 Further , if an undertaking is closed down due to exceptional circumstances

beyond the control of employer the total amount of compensation shall NOT
exceed 3 months’ avg. pay.

 The following are NOT exceptional circumstances in this regard :

 Financial losses

 Accumulation of undisposed stock

 Expiry of the period of lease or license

 Mine : exhaustion of minerals in an area

 The Procedure for closure:Sec. 25 O

 Employer : application for permission to the app. Govt. and its copy to the
workmen - 90 days before date of intended closure

 Voluntary Measures for prevention and settlement of Industrial Disputes

Settlement without state intervention

 Collective Bargaining

 Voluntary Arbitration

 Statutory Measures for prevention and settlement of Industrial Disputes

With Intervention of Govt.

 Compulsory establishment of Bipartite Committees : e.g. Works

Committee

 Establishment of Compulsory Collective Bargaining

 Conciliation and Mediation : Voluntary or compulsory

 Compulsory Investigation : e.g. Court of Inquiry

 Compulsory Arbitration or Adjudication