REVISION

COURSE: LABOUR AND INDUSTRIAL LAW II

Dr. S. Kulkarni, Assistant Professor, SLS
Pune
Contact: [email protected]
 MODULE 1

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 1.1. Labour Laws and
Constitution

• Preamble - The Preamble to the Indian Constitution serves as

the guiding light for labor laws, providing the foundational
principles of justice, equality, liberty, and fraternity. It sets the
objectives and authority of the Constitution, influencing the
framing and interpretation of labor legislation, ensuring
protection, social security, and welfare for the working class.

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 1.1. Labour Laws and
Constitution

Fundamental Rights – The Fundamental Rights, delineated from Article 14 to 35 in Part III of the Indian Constitution,
encompass a spectrum of liberties and protections crucial for ensuring justice and equality in society:
• Right to Equality (Article 14 to 18): Ensures equal protection of the law and prohibits discrimination. Judicial
interpretations, such as in Charanjit Lal Choudhary vs. Union of India (1951), emphasize reasonable
classification rather than absolute equality.
• Right to Freedom (Article 19 to 22): Encompasses freedoms of speech, association, and trade or business, all
relevant to labor legislation.
• Right against Exploitation (Article 23 to 24): Prohibits human trafficking and forced labor, with judicial
interpretations, such as in People's Union for Democratic Rights vs. Union of India (1983), broadening the
definition of forced labor.
• Right to Freedom of Religion (Article 25 to 30): Guarantees freedom of religion and related rights.
• Cultural and Educational Rights (Articles 29-30): Ensures minority rights in educational institutions.
• Right to Constitutional Remedies (Articles 32 to 35): Provides the right to move the Supreme Court for
enforcement of Fundamental Rights, vital for addressing violations. This includes innovative strategies like Public
Interest Litigation (PIL), as seen in cases like People's Union for Democratic Rights and Bandhua Mukti
Morcha, where the Supreme Court departed from traditional principles of locus standi to provide relief to
4 marginalized groups, including laborers.
 1.2. ILO and Labour
Legislations

INTRODUCTION TO ILO:

• The International Labour Organization (ILO) was established in 1919 after

World War I.
• Its mission is to protect workers’ rights, promote equity, and ensure dignity in
working conditions globally.
• The ILO emphasizes tripartism, involving employers, workers, and states in
labor-related dialogues.

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 1.2. ILO and Labour
Legislations

KEY BODIES OF ILO:

• International Labour Conference: Annual gathering of governments, workers, and

employers from ILO member countries. Discusses policies, adopts international labor
standards, and elects the governing body.

• Governing Body: ILO’s executive body. Sets policy, adopts budgets, and elects the
Director-General. Includes India as a permanent member.

• International Labour Office: Permanent secretariat responsible for administration and

technical cooperation activities.

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 1.2. ILO and Labour
Legislations

CORE CONVENTIONS:

1998 Declaration on Fundamental Principles and Rights at Work: Categorizes fundamental

principles and rights into four categories:

• Freedom of association and collective bargaining.

• Abolition of forced or compulsory labor.
• Abolition of child labor.
• Abolition of employment and occupation discrimination.

Eight Fundamental Conventions: Address universal rights applicable to all individuals in all
countries.
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 1.2. ILO and Labour
Legislations

• Ratification of ILO Conventions: India has ratified many ILO

conventions, including those on forced labor, child labor, and
discrimination.
• Alignment with ILO Recommendations: Indian labor
legislation, such as the Minimum Wages Act, Factories Act,
and Employees’ Provident Fund Act, aligns with ILO
recommendations.

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 MODULE 2

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 2.1. DOCTRINE OF HIRE
AND FIRE

Historical Evolution:
• Pre-Independence: Colonial Legacy: Indian Contract Act of 1872 emphasized
freedom of contract, leaving workers vulnerable.
• Post-Independence: Constitutional Recognition: Indian Constitution (1950)
guaranteed fundamental rights impacting labor relations.
• Industrial Disputes Act, 1947: Introduced protections against wrongful termination.
• Landmark Judicial Decisions: e.g., "Bangalore Woollen & Cotton Mills Ltd. vs.
Ramanujam" (1972).
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 2.2. DISCIPLINE IN
INDUSTRY

Disciplinary action encompasses both positive and negative conditioning of future behavior through rewards or
punishments. Positive motivational initiatives include praise, participation, and incentives, while negative techniques
involve warnings, suspensions, and dismissals. The term has evolved to primarily denote penalties that inhibit
undesirable behavior, often associated with negative motivation.
Aims and Objectives of Discipline:
• Obtain willing acceptance of organizational rules for achieving objectives.
• Foster tolerance and willingness to adjust among employees.
• Provide direction and responsibility.
• Cultivate respect for human relations and personality.
• Enhance working efficiency and morale.
• Ensure certainty despite organizational changes.
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 2.2. DISCIPLINE IN
INDUSTRY

Prevention of Indiscipline: Emphasize preventive measures over reactive disciplinary action. Preventive
measures complement curative actions and should be strictly enforced. Preventive approaches aim to curb
large-scale violations before they occur, promoting a harmonious workplace.

The "Red-Hot-Stove" Rule: Ideal disciplinary enforcement resembles a red-hot stove:

• Advance warning: Conveys consequences beforehand.
• Immediate effect: Instant repercussions for disobedience.
• Consistency: Uniform consequences for violations. Impersonal approach: Fair treatment regardless of
status or position.

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 2.2. DISCIPLINE IN
INDUSTRY

Nature and Causes of Indiscipline:

Indiscipline stems from a complex interplay of individual and environmental factors. Childhood
experiences, personal life, and organizational culture influence behavior. Individual and collective
indiscipline pose challenges, with collective indiscipline often being more complex and elusive
Individual vs. Collective Indiscipline:
Individual indiscipline: Acts of deviant behavior by employees acting alone, such as absenteeism or
negligence.
Collective indiscipline: Complex and often irrational behaviors, like illegal strikes or inter-group
altercations, posing significant threats to industrial harmony and productivity.

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 2.3. MISCONDUCT

Definition of Misconduct:
• Not defined in the Industrial Disputes Act, 1947, or the Industrial Employment
(Standing Orders) Act, 1946.
• Dictionary definition: "improper behavior; intentional wrongdoing or deliberate
violation of a rule or standard of behavior."
• In the context of industrial employment, misconduct refers to actions
inconsistent with employee obligations towards the employer.
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 2.3. MISCONDUCT

Categories of Misconduct:
• Misconduct Relating to Duty – Negligence of duty, Engaging in work similar to that of
the employer, Absence without leave, Late attendance, Strike, go-slow, gherao.
• Misconduct Relating to Discipline: Rowdy conduct during working hours, Misbehavior
directed towards colleagues, Insulting behavior towards superiors, Damage to company
property or reputation.
• Misconduct Relating to Morality: Theft, Disloyalty and fraud; Corruption Acts involving
moral turpitude.
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 2.3. MISCONDUCT

Disciplinary Procedure:
• Charge Sheet: Document outlining alleged acts of misconduct - specifies the nature, time, and consequences of
the alleged misconduct, provides reference to corresponding acts in the standing orders, allows the employee to
explain the charges.
• Enquiry Proceeding: Conducted by an impartial officer – workman given notice and opportunity to defend.
Conducted in private, ensuring fairness.
• Findings: Enquiry officer submits a report to the disciplinary authority. Disciplinary authority considers
evidence and decides on punishment. Punishment proportional to the misconduct.
• Decision: Range of punishments includes warning, suspension, stoppage of increment, reversion, or dismissal.
Unconditional admission may lead to lesser punishment. Grave misconduct warrants a formal enquiry.
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 MODULE 3

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 3.1. CONCEPT OF WAGES

Wages in India are broadly classified into six categories, each with unique characteristics:
• Statutory Minimum Wage - Determined according to the provisions of the Minimum Wages Act, 1948.
Provides for some measure of education, medical requirements, and amenities.
• Bare Subsistence or Minimum Wage - Sufficient to cover the bare physical needs of the worker and their
family; paid regardless of the industry's capacity to pay; concept introduced by Indian Judiciary.
• Living Wage – Influential in economically advanced countries; defined as appropriate for the normal needs of
the average employee living in a civilized community; embraced as a Directive Principle of State Policy in the
Indian Constitution; defined by Justice Higgins in the Harvester case.
• Fair Wage – Midpoint between the minimum wage and the living wage; determined by factors like labor
productivity, prevailing wage rates, and industry's capacity to pay; emphasized in the Report of the Committee

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on Fair Wages.
 3.2. PAYMENT OF WAGES
ACT, 1936

The Payment of Wages Act, 1936 is a crucial piece of legislation in India that
regulates the payment of wages to certain classes of employed persons. Its
primary objectives are:
• Timely Payment: Ensure that employees receive their wages promptly and
on time.
• Full Payment: Guarantee that employees are paid their wages in full,
without unauthorized deductions.
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 3.2. PAYMENT OF WAGES
ACT, 1936

• The Act applies to all establishments where employees are employed for wages. It
covers both organized and unorganized sectors.
• Employers are responsible for paying wages to their employees. The Act ensures
that wages are paid directly to the workers
• Employers must define wage periods (e.g., weekly, monthly). Wages should be
paid within seven days after the end of the wage period.
• Wages must be paid during working hours or at the workplace. Exceptions apply
for certain categories of employees.
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 3.2. PAYMENT OF WAGES
ACT, 1936

• Authorized deductions include income tax, provident fund, and other

statutory deductions. Unauthorized deductions are prohibited.
• Employers can impose fines for specific misconduct. Deductions for
absence, damage, or services rendered require prior approval.
• Employers must maintain records related to wages, deductions, and fines.

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 3.3. MINIMUM WAGES
ACT, 1948

• The act seeks to prevent exploitation of workers by ensuring that they

receive a minimum wage that reflects their labor’s value.
• The act applies to both organized and unorganized sectors. It covers
employees engaged in scheduled employments (specified industries or
occupations).

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 3.3. MINIMUM WAGES
ACT, 1948

• Fixing Minimum Wages – Both the Central government and State governments have the authority to
fix minimum wages. The act provides guidelines for determining minimum wages based on factors
like skill level, location, and nature of work.
• Component of Minimum Wages – Minimum wages include basic pay, allowances, and other
components. Employers must ensure that the total wages paid meet or exceed the minimum wage
rate.
• Payment of Wages – Employers must pay wages directly to workers. Payment should be made in
cash or through authorized modes.
• Review and Revision – The act allows for periodic review and revision of minimum wages. The

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interval for revision should not exceed five years.
 3.4. PAYMENT OF BONUS
ACT, 1965

The Payment of Bonus Act, 1965 governs the payment of bonuses to employees in certain establishments.
The act applies to all factories and establishments employing 20 or more persons during any accounting
year. It covers both organized and unorganized sectors.
• The act provides for a minimum bonus of 8.33% of wages. The salary limit fixed for eligibility
purposes is Rs. 3,500 per month. Bonus payable to employees drawing wages or salary not exceeding
Rs. 10,000 per month is calculated as if their salary or wages were Rs. 3,500 per month.
• Employees earning below Rs. 21,000 are eligible for bonus. Calculation of bonus depends on whether
the basic salary is below or above Rs. 7,000.
• If Basic+DA is below Rs. 7,000, the bonus is calculated on the actual amount. If Basic+DA is above

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Rs. 7,000, the bonus is calculated on Rs. 7,000.
 MODULE 4

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 4.1. CONCEPT OF SOCIAL
SECURITY

Definition by the International Labour Organization (ILO):

• Social Security: "The security that society furnishes through appropriate organization against certain
risks to which its members are perennially exposed."
• Aims to counteract the blind injustice of nature and economic activities by rational planned justice
with a touch of benevolence.
Purpose of Social Security:
• Protect individuals and their families from falling into contingent poverty.
• Provide support against risks that individuals of small means cannot effectively handle alone.

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 4.1. CONCEPT OF SOCIAL
SECURITY

Contingencies Covered by Social Security (ILO):

• Sickness
• Medical care for the worker
• Maternity
• Unemployment
• Work injury
• Death of worker
• Invalidity
• Widowhood
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 4.2. SOCIAL SECURITY IN
INDIA

1. Workmen Compensation Act, 1923: Provides compensation for work-related injuries. Amendments
made from 1924 to 1976. Not applicable where Employees State Insurance Scheme operates.
2. Employees State Insurance Act, 1948: Introduced compulsory and contributory health insurance for
industrial workers. Provides cash benefits for sickness, maternity, employment injury, and more.
Evolved from recommendations in various committees and acts.
3. Maternity Benefits Act, 1961: Provides maternity benefits for women workers in factories. Central
and State Acts grant maternity benefits to women workers. Employees State Insurance Act, 1948, and
Plantation Labour Act, 1951, also cover maternity benefits.

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 4.2. SOCIAL SECURITY IN
INDIA

4. Employees’ Provident Fund and Miscellaneous Provisions Act, 1952: Establishes compulsory
provident funds for employees in factories and establishments. Ensures financial security for workers
after retirement or in case of early death. Applicable to establishments with 20 or more employees.
5. Employees’ Family Pension Scheme, 1971: Provides long-term protection to the family of
deceased workers. Fund constituted by contributions from employees, employers, and the Central
Government.
6. Employees’ Deposit-Linked Insurance Scheme, 1976: Introduces insurance cover for members of
Provident Fund schemes. Additional payment to beneficiaries in case of the employee's death.

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 4.2. SOCIAL SECURITY IN
INDIA

7. Payment of Gratuity Act, 1972: Mandates payment of gratuity to employees with five years of
continuous service. Payable on termination, retirement, death, or disablement.
8. Coal Mines Bonus Scheme: Applies to coal mines across different states. Various schemes providing
bonuses to workers in different regions.
9. Assam Tea Plantation Provident Fund Act, 1955: Covers all categories of employees in tea
plantations in Assam. Provides for pension fund and covers children, adolescents, and non-resident
workers.
10. Seamen’s Provident Fund Act, 1966: Similar to the Employees Provident Funds Act, 1952. Provides
provident fund benefits for seamen.
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 4.2. SOCIAL SECURITY IN
INDIA

11. Medical, Health, Maternity, and Other Benefits in Plantations: Provided under the Plantation
Labour Act, 1951. Includes sick leave, medical treatment, and maternity benefits.
12. Health, Safety, and Welfare of Workers: Addressed under various Acts including Workmen
Compensation Act, 1923, and Employees’ State Insurance Act, 1948.
13. Safety, Health, and Welfare of Dock Workers: Covered by regulations and schemes under the
Indian Dock Labourers Act, 1934. Operations in major ports of India.
14. Other Measures: Survivorship Pension Scheme, Lay-off and Retrenchment Compensation, Old Age
Pension schemes provide additional support and security to workers.

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 MODULE 5

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 5.1. THE SEXUAL HARASSMENT OF
WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND
REDRESSAL) ACT, 2013

Applicable Jurisdiction: The POSH Act extends to the 'whole of India'. Ensures uniform application of the law
across the country.
Aggrieved Woman: An 'aggrieved woman' is defined as any woman, regardless of employment status, who
alleges sexual harassment. Includes customers/clients who experience harassment at a workplace. Protection
extends to all women, regardless of their employment status.
Incident at the Workplace: Sexual harassment must occur at the 'workplace' for protection under the POSH Act.
Ensures that incidents within the professional environment are addressed effectively.
Gender-Specific Protection: The POSH Act is not gender-neutral and protects only women. Safeguards are not
applicable to male victims under the Act. Employers may choose to extend protection through their policies, but
it is not mandated by the Act.
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 5.1. THE SEXUAL HARASSMENT OF
WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND
REDRESSAL) ACT, 2013

What is Sexual Harassment under the Act?

Defined in line with the Supreme Court's Vishaka Judgment. Includes unwelcome sexually tinted behavior:
• Physical contact and advances.
• Demand or request for sexual favors. Sexually colored remarks.
• Showing pornography.
• Any other unwelcome physical, verbal, or non-verbal conduct of a sexual nature.
Circumstances Amounting to Sexual Harassment:
• Implied or explicit promises/threats related to employment.
• Interference with work or creating an intimidating/offensive/hostile environment.
• Humiliating treatment affecting the employee's health or safety.
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 5.1. THE SEXUAL HARASSMENT OF
WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND
REDRESSAL) ACT, 2013

Quid Pro Quo Harassment: Involves pressuring for sexual favors in exchange for advancement or threats of
adverse employment action.
Hostile Working Environment: Includes unwelcome comments/actions that create discomfort and affect work
performance.
Subjectivity of Experience: Sexual harassment is a subjective experience. Conduct may be perceived differently
by men and women. Men may view some behaviors as harmless social interactions, while women may perceive
them as offensive or threatening. Understanding requires considering different perspectives and social contexts.
Burden on Internal Committee: No fine line test for determining harassment. Internal committee responsible
for evaluating severity based on specific facts and context.

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 5.1. THE SEXUAL HARASSMENT OF
WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND
REDRESSAL) ACT, 2013

Employee Definition (Section 2(f)):

• Wide-ranging definition covering various employment arrangements.
• Includes regular, temporary, ad hoc employees, contract laborers, co-workers, trainees, apprentices, etc.
• Covers individuals engaged for remuneration or voluntary basis, with or without explicit employment terms

Workplace Definition (Section 2(o)):

• Extensive definition encompassing traditional and non-traditional work settings.
• Includes places visited during employment, such as transportation provided by the employer.
• Recognizes the concept of 'extended workplace' beyond the primary place of employment.

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 5.1. THE SEXUAL HARASSMENT OF
WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND
REDRESSAL) ACT, 2013

A. Establishment of IC:
• Mandatory for organizations with 10 or more employees to constitute an IC.
• Failure to establish an IC can result in fines under the POSH Act. B.
Composition of IC:
• Presiding Officer: Woman employed at a senior level within the organization.
• Members: At least 2 members from among the employees. Preferably committed to women's causes, social
work, or possess legal knowledge.
• External Member: From an NGO or association dedicated to women's causes or knowledgeable about
sexual harassment issues.
• \Gender Representation: At least half of the IC members must be women.
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 5.1. THE SEXUAL HARASSMENT OF
WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND
REDRESSAL) ACT, 2013

C. REGISTRATION OF IC:
• The Department of Women and Child Development of Telangana and Maharashtra has issued a circular (on
01.07.2019 for Telangana) and an office order (on 23.03.2017 for Mumbai) mandating registration of the IC
in Telangana & Mumbai.
• While employers in Mumbai were required to register their ICs with the office of the District Women and
Child Development Officer in the prescribed format, employers in the state of Telangana were required to
register their ICs on the Sexual Harassment Electronic Box (“T-she box”).

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 5.1. THE SEXUAL HARASSMENT OF
WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND
REDRESSAL) ACT, 2013

D. LOCAL COMMITTEE:
• At the district level, the government is mandated to establish a ‘local committee’ (LC) to investigate and
address complaints of sexual harassment. This is particularly crucial for:
• Cases from the unorganized sector.
• Establishments with less than 10 employees where the Internal Committee (IC) is not constituted.
• Complaints against the employer or a third party who is not an employee.
The LC plays a vital role in ensuring justice, especially in instances involving domestic workers or complaints
against the employer directly.

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 5.1. THE SEXUAL HARASSMENT OF
WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND
REDRESSAL) ACT, 2013

FILING A COMPLAINT:
• An aggrieved woman must submit six copies of a written complaint to the Internal Committee (IC) or Local
Committee (LC), along with supporting documents and names/addresses of witnesses.
• This must be done within 3 months from the date of the incident. In case of a series of incidents, the
complaint should be filed within 3 months from the date of the last incident.
• Prompt reporting is crucial for authenticity and swift action. However, if there's a valid reason for delay, the
IC/LC may extend the timeline, with reasons recorded in writing.
• Provisions are made for filing complaints by friends, relatives, co-workers, psychologists, or psychiatrists if
the aggrieved woman is unable to do so due to physical or mental incapacity, or death.
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 5.1. THE SEXUAL HARASSMENT OF
WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND
REDRESSAL) ACT, 2013

CONCILIATION
• Before initiating formal action, the Internal Committee (IC) can attempt to settle the matter through
conciliation at the request of the aggrieved woman.
• Conciliation aims to achieve an amicable resolution informally, preventing escalation to a formal inquiry.
• The aggrieved woman can request conciliation to resolve the matter before inquiry proceedings begin, with
monetary settlement excluded from the conciliation basis.
• After reaching a settlement, the IC or Local Committee (LC) records it and provides copies to both the
aggrieved woman and the respondent. Once a settlement is reached, the IC ceases inquiry proceedings under
the POSH Act.

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 MODULE 6

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 6. STATUTES

INDUSTRIAL DISPUTES ACT, 1947:

• Definition of ‘industry’ under the act – phases of judicial and jurisprudential evolution.
• Definition of ‘industrial disputes’
• Definition of ‘workman’
• Individual v. Industrial Disputes (Section 2A)

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 SEEK YOUR ANSWERS…

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 THANK YOU
DR. PROF. S. KULKARNI
[email protected]

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