PRESENTATION

ON
ETHICAL CODE

By
RIMA TALUKADAR
448/15

ETHICAL CODES

Ethical codesare adopted by organizations to assist members in

understanding the difference between 'right' and 'wrong' and in applying
that understanding to their decisions
The 15th Indian Labour Conference, held in July 1957, laid down certain
general principles related to the discipline in Industry which were later
considered and after certain modifications therein, the ethical code was
evolved.
A Code of Discipline/ethical code in Industry, which applies both to the

public and to the private sector, has been accepted voluntarily by all the
Central organisations of employers and workers and has been in operation
since the middle of 1958
The Code lays down specific obligations for the management and the
workers with the object of promoting constructive cooperation between
their representatives at all levels.

Principles guiding code

The 15th Indian Labour Conference, held in July 1957, laid down
certain general principles related to the discipline in Industry
There should be no lockout or strike without notice
No unilateral action should be taken in connection with any
industrial matter
There should be no option to go-slow tactics
No deliberate damage should be caused to plant and property
Acts of violence, intimidation, coercion or instigation should not be
resorted
The existing machinery for the settlement of disputes should be
resorted to.
Awards and agreements should be speedily implemented

Contents of the Code

The Code has various sections The first section defines the duties and responsibilities of
employers, workers and even of the government
The second section lists the common obligations of
management and unions
The third section deals with the obligations of the management
only
The fourth section deals with the obligations of the unions
There are 2 annexures under the Code of Discipline
Annexure A provides criteria for recognition of unions
Annexure B deals with the rights of the recognised unions

Chief features of the Code

1.

2.
3.

4.
5.

The Code is a government induced self imposed and mutually

agreed voluntary principle of discipline and relations between
management and workers
It aims at preventing disputes through negotiations,
conciliation, voluntary arbitration or adjudication
It restrains both parties from unilateral action but induces
them to make the best use of the existing machineries for
expedite settling of disputes
The Code compels people not to indulge in strikes and
lockouts without notice and encourages mutual settlement.
It encourages constructive cooperation between workers and
management at all levels without recourse to violation,
coercion, discrimination etc or other unfair practices like goslow, sit-down or stay-away strikes.

Sanctions under the code

1.

2.
3.
4.

Some sanctions incorporated in the Code of Discipline are:

The central employers and workers organisations shall take
the following steps against their constituent units if they are
guilty of breaches of the Code
1. Ask the unit to explain the infringement of the Code
2. Give notice to the unit to set right the infringement within
a specified time
3. Warn or censure (if very serious) the unit concerned
4. Impose on the unit penalties open to the organisation
5. In case of persistence violation disaffiliate the unit from
membership
Grave, willful and persistent breaches of the code by any
party should be widely publicised
Failure to observe the code would entail derecognition for a
period of time
A breach will not be referred to adjudication if there is strike
or lockout without notice or in breach of the Code .

Objectives of the code of discipline

To ensure that employers and employees

recognise each others rights and obligations

To promote constructive cooperation between
the parties concerned at all levels
To secure settlement of disputes and grievances
by negotiation, conciliation and voluntary
arbitration
To eliminate all forms of coercion, intimidation
and violation in industrial relation
To avoid work stoppages
To facilitate the free growth of trade unions
To maintain discipline in the industry.

industry
To maintain Discipline in the Industry (both in public and private

sectors) there has to be

(i) a just recognition by employers and workers of the rights
and responsibilities of either party, as defined by the laws
and agreements (including bipartite and tripartite
agreements arrived at all levels from time to time) and
(ii) a proper and willing discharge by either party of its
obligations consequent on such recognition.
The Central and State Governments, on their part, will arrange
to examine and set right any shortcomings in the machinery
they constitute for the administration of labour laws.

THANK YOU