Professional Documents
Culture Documents
Strike
To bring pressure upon those who depend on the sale or use of the product of
work.
Lockout
Essentials:
Spending or applying money
Knowledge on the part of the person expending or applying money that strike
or lockout is illegal
LAY-OFF AND RETRENCHMENT
Retrenchment means the discharge of surplus labour or staff by the employer
disciplinary action.
It has no application where the services of all workmen have been terminated
services of all workmen have been terminated by the employer on the business
Meaning of Layoff
accumulation of stocks,
Section 2(kkk)
establishment presents himself for work and is not given employment within
two (2) hours of presenting himself, he shall be deemed to have been laid-off
Section 25A:
establishments to which Chapter 5B3 of the Act applies, will not be bound
Continuous Service:
It is important to note that workmen are entitled for compensation only if they
which are not illegal, lock out or cessation of work not due to the fault of the
workman.
In other words, the duration when the workman is out of the office on account
compensation to the workmen if their case falls within the scope of the Section
lay-off on grounds of social justice. This particular section states that any
workman:
whose name is borne on the muster-rolls of an industrial establishment
and,
who has completed at least one (1) year of continuous service under the
employer,
shall be paid compensation for the period during which he was laid-off, which
shall be equal to fifty (50) percent of the total of the basic wages and dearness
allowance that should be payable to him had such workman not been so laid-
off.
rolls of workmen and failure to comply with this provision can attract penalty
If during the one (1) year period of continuous service, the workman is laid-off
for more than fortyfive (45) days, no further compensation will be paid if there
is an agreement in that respect between the workman and the employer. Upon
the expiry of this period, the employer can retrench the workman and the
compensation then paid would exclude the amount already paid during the
Badli Workman
fall outside the ambit of Section 25C. However, if a “badli” workman has
completed one (1) year of continuous service in the industrial establishment, he
Section 25E of the Act highlights situations when a workman is not entitled
to compensation even after being laid-off. This section 25E works like an
should not call for any special skill or experience and the employer
must pay at least the same wages as were previously paid to the
workman.
Burden of proof
The burden of proof is on the employer to show that the workman is disentitled
to claim compensation because his case falls under the purview of Section 25E.
Special Provision relating of Layoff
Section 25M in Chapter 5B of the Act further points out that prior approval
employed on an average per working day for the preceding twelve (12) months.
The appropriate government has the final authority to decide whether the
establishment is in fact seasonal or not and such decision shall be final. It also
along with providing compensation to the workman for any “illegal” lay-off
Trade Union
Definition
Section 2(h) of the Trade Unions Act 1926 defines Trade Union as a
employers, or
protect their copyright in music and songs, was held NOT to be a Trade Union
In the case of Tamil Nadu NGO Union vs Registrar, Trade Unions, AIR
1962, Madras HC held that Tamil Nadu NGO Union, which was an
trade union because these people were engaged in sovereign and regal
a trade union gets several benefits including some immunities that are not
Mad it was held that a Trade Union can raise or sponsor a trade dispute and
dispute.
Section 13 specifies that upon registration, a trade union gets a legal entity
Procedure of Registration
is to be formed.
all the applicants must subscribe their names to the rules of the
Trade Union and comply with the provisions of this act regarding
registration.
there must be at least 10% or 100, whichever is less, members who are
connected.
there must be not be less than seven members who are engaged or
If more that half of the persons who applied for the registration cease to be
It says that the application should be sent to the registrar along with the copy
of the rules of the trade union and a statement of the following particulars:
The titles, names, ages, addresses, and occupations of the office bearers
If the trade union has been in existence for more than 1 yr, a general
It specifies the provisions that should be contained in the rule book of the
trade union. A copy of this rule book must be supplied along with the
application for registration of the trade union. This rule book details the
internal administration of the trade union and also determines and governs the
relationship between the trade union and its members. It must contain the
the whole purposes for which the general funds can be used.
the conditions under which a member can get the benefits or has to pay
fines.
the safe custody of funds and provisions for inspecting or auditing the
Union:
the registrar has the power to ask for further information from the trade
union to satisfy himself that the trade union complies with section 5 and is
eligible to be registered under section 6. The registrar can refuse to register the
trade union until he receives the information. Further, he has the power to
ask to change the name of the trade union if a union with the same name
Upon satisfaction of all the requirements, the Registrar of the Trade Unions will
register the trade union. It is mandatory for the registrar to register a trade
union if the union satisfies all the technical requirements of this act.
Section 9- Certificate of Registration
The registrar will issue the certificate of registration in the prescribed form,
which shall be a conclusive evidence that the trade union is registered under
this act.
Section 24 says that any two or more registered trade unions may become
division of the funds of such trade unions or either or any of them, provided
that votes of at least one half of the members of each trade union are
recorded and at least 60% of the votes of each trade union are in favor of
the proposal.
members of each of the trade unions, should be sent to the registrar of the
state where the head office of the amalgamated trade union is to be located. If
the registrar is satisfied that all the provisions of this act have been complied
with and the trade union formed thereby is entitled to registration under
section 6, he will register the new trade union under section 8 and the
Cancellation of Registration
Under section 10, the Registrar of Trade Unions has the power to cancel the
If the trade union willfully, upon notice of the registrar, has contravened
If the trade union rescinds any rule providing for any matter, provision
members.
the registrar shall register it after verifying that the dissolution has been
done as per the provisions of this act. Further, if the rules of the trade
union do not provide for distribution of the funds upon dissolution, the
town.
The labour court or industrial tribunal, if the head office of the trade union is
If the head office of the trade union in any other location, to such court, not
of original jurisdiction, as the appropriate govt. may appoint in this behalf for
that area.
A registered trade union must follow the provisions of the Trade Unions Act
union:
A Trade Union cannot spend the funds on anything the office bearers want. It
can spend funds only on the activities specified in Section 15. These include:
such activity.
Under section 20 a trade union must make available all its record
Under section 21-A, a trade union cannot appoint a person who has
industry to which the trade union is connected. Also, while a union has a
right to remove any office bearer, this power must be used judiciously
manner, of all income and expenses must be sent to the registrar every
year.
Section 13
Under section 15
contractual proceedings.
members of the trade union and the employer shall receive and send
matters.
the executive is entitled to post notices of the trade union meant for
its members at any premises where they are employed and that the
Criminal Liability
However, this immunity is partial in the sense that it is available only with
respect to the legal agreements created by the members for the furtherance
In the case of West India Steel Company Ltd. vs Azeez 1990 Kerala, a
trade union leader obstructed work inside the factory for 5 hrs while protesting
against the deputation of a workman to work another section. It was held that
while in a factory, the worker must submit to the instructions given by his
superiors. A trade union leader has no immunity against disobeying the orders.
A trade union leader or any worker does not have any right by law to share
through legal ways but officials of a trade union cannot direct other workers
individually or in general about how to do their work. They do not have the
right to ask a worker to stop his work or otherwise obstruct the work of the
establishment. An employer may deal with a person causing obstruction in
work effectively.
Civil Liability
In general, a person is liable in torts for inducing another person to breach his
However, a trade union, its officers, and its members are immune from this
Kerala, it was held that strike per se is not an actionable wrong. Further, it
was held that the trade union, its officers, and its members are immune
AIR 1963, it was held that employers do not have the right to claim
In the case of Simpson & Group Companies Workers & Staff Union vs
Amco Batteries Ltd 1992 Karn., it was held that physical obstruction of
raw materials, is not a trade union right or a fundamental right under art 19.
picket is a very intangible right and it extends only up to the right of free
members is neither void nor voidable. It is important to note that this right
Court has set aside an award of the Labour Court of Gujarat holding that the
Concept of Industry
The term industry as defined by section 2(j) of the Industrial Disputes Act
workmen.''
The first part of the definition gives the statutory meaning and the
includes them in the definition. The first part defines it from the point of
view of the employers and the other from the stand point of the
an industry.
Though the definition has not undergone any amendment, it has undergone
Courts. The Supreme Court sought to put at rest the confusion by declaring
that (a) where (i) systematic activity, (ii) organised by co-operation between
employer and employee (iii) for the production and/or distribution of goods and
religious but inclusive of material things or services geared to celestial bliss e.g.
sector.
The true focus is functional and the decisive test is the nature of the activity
v A Rajappa (supra). But even after this, the question to be asked is not what
is industry but what is not. Despite their efforts to find a working formula for
It is obvious that even after Bangalore Water Supply and Sewerage decision,
the judges themselves are not satisfied with respect to the interpretation of the
definition of industry. The need for legislative reform has been stressed by all
the judges. It may be relevant to point out here that a very sensible and
(Bill No. 137 of 1978), under Section 2(17). But with the dissolution of
Parliament in August, 1979, the Bill had lapsed. This definition with some
section 2(j) had been substituted with the new definition by the Industrial
Disputes (Amendment) Act, 1982 (Act 46 of 1982). Though the Act has been
substantially brought into force effective 21.8.1984, this definition has not
and the Supreme Court stopped entertaining any objection of the employer that
a particular organisation/establishment or institute was not an industry under
However, a breakthrough came in one case wherein the Supreme Court while
rejecting the contention that as sovereignty vested in the people the concept of
sovereign functions would include all welfare activities -- on the ground that
taking of such a view would erode the ratio in Bangalore Water Supply case —
observed that ``the dichotomy of sovereign and non-sovereign functions did not
really exist — it would all depend on the nature of the power and manner of its
power, the administration of laws and the exercise of the judicial power and
also the decision of the Gujarat High Court — wherein famine and drought
industry, the Supreme Court observed that ``what really follows from this
judgment is that apart from the aforesaid three functions, there may be some
other functions also regarding which a view could be taken that the same too is
a sovereign function''.
sovereign functions and the traditional duty to maintain law and order is no
longer the concept of the State. The Directive Principles of State Policy enjoin on
the State diverse duties under Part IV of the Constitution and the performance
of the duties are constitutional functions. One of the duties of the State is to
The Supreme Court in its judgment on April 8, has set aside an award of a
an industry within the meaning of section 2(i) of the Industrial Disputes Act.
In its appeal, the appellant challenged the award of the labour court as the
Gujarat High Court had already taken the view that PRL was an industry and
this issue.
PRL was not engaged in a commercial or industrial activity and it could not be
manner with the help of its employees, as it lacked that element which would
make it an organisation carrying on an activity which could be said to be
The appellant contended before the Court that PRL was a public trust
registered under the Bombay Public Trusts Act, 1950 and it was financed
indirectly carrying on any trade or business and its activities did not result in
wants and wishes. The knowledge acquired as a result of the research carried
on by it was not sold but was utilised for the benefit of the Government and
It is pertinent to mention here that the Madras High Court has also held that
local farms would not attract the definition of `industry' under the Industrial
Disputes Act.
The above ruling has cleared certain cobwebs and will go a long way in the field
Definition of Workman
express or implied ,and for the purposes of any proceeding under this Act in
relation to an industrial dispute ,includes any such person who has been
i) who is subject to the Air Force Act,1950 (45 of 1950),or the Army
of a prison; or
,either by the nature of the duties attached to the office or by reason of the