Dr Sunil Arora JR, Dept. of Chest &TB Govt. Medical College Patiala.

Dr Sunil Arora

JR,

Dept. of Chest &TB

Govt. Medical College Patiala

Labour Laws

• Labour Law or employment law is the body of laws, administrative rulings,and precedents which address the legal rights of ,and restrictions on, working people and their organisations. As such , it mediates many aspects of the relationship between trade union,employers and employees.

Purpose Of Labour Laws

Generally Labour Law covers :1. Industrial Relations-certification of unions, labour

management relations, collective bargaining and unfair labour practices.

2. Workplace health and safety.3. Employment standards,including general

holidays,annual leave,working hours,unfair dismissals,minimum wage,lay off procedures and severance pay.

History of labour laws Labour laws arose due to :-• demands of workers for better conditions.• demands of employers to restrict the powers of workers

in many organisations and to keep labour costs low. International labour organisation(ILO) was the first

organisation to deal with labour issues. In India ,the law ,relating to labour and employment is

also known as Industrial Law. The earliest Indian statute to regulate the relationship between employer and his workmen was Trade Dispute Act,1929(Act 7 of 1929). Ultimately,Industrial Dispute Act(IDA) brought into force on 01.04.1947.

What Is Industrial Dispute Act?

• Industrial dispute means any dispute or difference between employers and employers,or between employers and workmen,or workmen and workmen,which is connected with the employment or non-employment or the terms and conditions of employment or with the conditions of labour of any person[section 2(k)].Section 2A provides that dismissal ,discharge , retrenchment of even a single workman will be industrial dispute even if no other workman or any union is a party to the dispute.

What is Industry? • Industry means any business,trade, undertaking,

manufacture or calling of employers and includes any calling, service, employment, handicraft or industrial occupation or avocation of workmen.[This definition Is very wide]

In Bangalore Water Supply and Sewrage Board, Vs R.Rajappa(1978)[A 7 judge bench of supreme court laid down triple test],a wide interpretation to the term Industry was given as:-

• systematic activity.• organised by cooperation between employer and employee.• for the production and or distribution of goods and services

with a view to satisfy human wants and wishes.

Who is a Workman ? ‘Workman’ means any person (including apprentice) employed in

any industry to do any manual, clerical or supervisory work for hire or reward.It includes dismissed, discharged or retrenched person also.However,it does not include:-

• Armed forces i.e. those subject to Air Force Act,Army Act or Navy Act.

• Police or employees of prison.• Employed in mainly managerial or administrative capacity or• Person in supervisory capacity drawing wages exceeding Rs.

10000 per month or functions are is mainly of managerial nature[section 2(X)][now salary is not a criterion, SC has given judgement in which pilot of Indian Airlines was given status of workman, who draws salary in lakhs]

Are Labour Laws applicable to hospitals or whether hospital comes under the

purview of Industrial Dispute Act….???• In state of Bombay v. Hospital Mazdoor Sabha case-court held that

the activities which have no commercial implications such as hospitals carried on with philathropic motives would be covered by expression ‘undertaking’ and considered hospital as an industry.

• In Management of Safdarjung Hospital v. Kuldip Singh,it was held that a place of treatment of patients run as a department of govt. was not an industry because they have not embarked upon economic activities analogous to trade or business.

If hospitals,nursing home or a dispensary is run as a business in a commercial way,then there may be the elements of industry.

• In Bangalore Water Supply and Sewrage Board V. R.Rajappa case,SC overruled the judgement of Management of Safdarjung Hospital v. Kuldip Singh and gave new definition of industry as discussed before.

What is Lay off ?

When an employee is not given work due to some reasons beyond the powers of the employer.It means failure/refusal/inability of the emloyer to give employment due to following reasons:-

• shortage of raw material/power.• accumulation of stocks.• breakdown of machinery.• natural calamity.• other connected reasons(sec(2(kkk))).

Nature of Lay Off

• It is temporary.• It is due to situation beyond the control of the employer.• Lay off compensation is given to the employee(50%)• Employee has to come to the factory,but is laid off in 2

hours(not given work).• No workman (other than a badli workman or a casual

workman) whose name is borne on the muster-rolls of an industrial establishment wherein 50 or more workers are employed shall be laid-off by his employer except with the prior permission of the appropriate Government.

Meaning of Retrenchment

Retrenchment means termination by the employer of service,of a workman for any reason, other than as a punishment inflicted by a disciplinary action. However,retrenchment does not include voluntary retirement or retirement on reaching age of superannuation or termination on account of non-renewal of contract or termination on account of continued ill-health of a workman or in other words it is the discharge of surplus labour or staff by employer.

Notice for Retrenchment

A worker who has completed one year of service can be retrenched by giving one month notice(or paying one month’s salary) plus retrenchment compensation at the time of retirement @ 15 days average wages for every completed year of service(sec 25 F)

Strike

‘Strike’ means 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 employement.

Lock Out

Lock Out is temporary closing or 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.

Difference between Strike and Lock Out

In Strike,employees refuse to work.But Lock Out is used by the employer to convince the union to back down. Or in other words, workers go on strike, while lock out is declared by employer.

Prohibition of Strikes in P.U.S.

No person employed in public utility service shall go on strike in breach of contract.

• Without giving notice of strike to employer within six weeks before striking.

• Within 14 days of giving such notice;or• Before the expiry of the date of strike specified in

any such notice or aforesaid.• During the pendency of any conciliation

proceedings before a conciliation officer and seven days after the conclusion of such proceedings.

GENERAL PROHIBITION OF STRIKES ( Sec - 23 of I.D. Act -1947)

No person employed in any Industrial establishment shall go on Strike in breach of contract –

1) During the pendency of Conciliation proceedings before a Board and seven days after its conclusion.

2) During the pendency of proceedings before the adjudication Authorities and two months after its conclusion.

3) During the pendency of Arbitration Proceedings before an Arbitrator and two months after its conclusion or where the Notification has been issued under section – 10 A ( 3-A).

4) During any period in which a settlement or Award is in operation.

Justified and Unjustified Strikes

• A strike may be unjustified –when raised in contravention of the provision of Act and both the demand and behavior of strike are unjust.

• A strike is justified if it has been raised for a good cause and carried in a peaceful manner.

Offences and Penalties• Any workman who commences, continues in furtherance of

illegal strike, shall be punishable with imprisonment upto one month, or fine upto Rs. 50/- or with both.

• Any person who incites others to take part in an illegal strike or who knowingly extends money in support of any illegal strike is punishable with imprisonment of six months or fine upto Rs. 1000/- or with both.

• If a person committing an offence under this act is a company, or corporate body, an association;every manager, director , secretary, agent, officer is deemed to be guilty of such offence.

What is wages? • Wages means all remuneration capable of being expressed

in terms of money. It includes house rent allowance but does not include

• value of house accommodation, supply of light,water, medical attendance

• Value of any other amenity provided, if excluded by Government order

• Contribution to pension fund or provident fund or insurance• Traveling allowance\• special expenses incurred by the nature of employment• Gratuity payable on discharge

Wages During Strike/Lock Out

• Wages during strike period are payable only if strike is both legal and justified.

• If Lock Out by employer is legal and justified, workmen are not entitled to payment of wages.

• During legal strikes, employers don’t have to pay workers unless workers demand that payment in kind(accomodation, food, basic amenities).

No Work-No Pay

This principle has been accepted by Supreme Court. This principle is also applicable when a man was eligible for promotion but was not promoted and infact didn’t work in higher post. In such case, he is not eligible to get pay for higher scale.

Minimum Wages Act ,1948

Objective• To provide minimum wages to the workers in the

scheduled employments.• To stop exploitation of the workers.• To empower the government to take steps for fixing

minimum wages and to revise these wages within a period of 5 years.

Minimum Wage Fixation

By Appropriate government after following prescribed procedures.

• The rate fixed can be revised periodically [section 3(1)].

The rate can be fixed on- -time work basis, -piece work basis, -a guaranteed rate,when rate is fixed on piece work

basis and -overtime rate [section 3(2)].

Minimum Wage Fixation

• Different minimum wage rates can be fixed for different scheduled employements,diferent class of work in the same scheduled employement, adults, adolescents children and apprentices,different localities[section 3(3)(a)].

• Rates can be fixed on the basis of hour, day or month or even larger period [section 3(3)(b)].

• Penalty under this act is imprisonment of 6 months and/or fine of Rs 500

What will happen If a worker works less than normal hours ?

• He will receive minimum wages.• However, he will not receive minimum wages if he

is not willing to work or circumstances as may be prescribed.

Will there be Overtime ?

sec.14: If minimum wages is fixed by hours, then the workers will be paid overtime if he works more than the ‘hours’ prescribed. The overtime rate will be as fixed in this law or other law as applicable.

Workmen’s Compensation Act 1923

• This act is amended and renamed as Employees Compensation Act.

• The objective of this Act is that in the case of an employment injury, compensation be provided to the injured workman and in case of his death to his dependants.

• Establishments which are covered by the ESI act are outside the purview of this act.

THE EMPLOYEES’ STATE INSURANCE ACT, 1948

• It is the first major legislation on social security for industrial workers in India.

• The ESI Scheme is an integrated measure of Social Insurance come to the life through the ESI Act – 1948, and is designed to complete the task of protecting ‘Employees as defined in the ESI Act – 1948, against the hazards of sickness, maternity, disablement or death due to employment injury and to provide full medical care to insured persons and their families.

• Employees State Insurance Corporation (ESIC) has been formed to supervise the scheme under section 3 of the Act.

COVERAGE

The ESI Act 1948 applies to • Non – seasonal Factories using power in and

Employing ten (10) or More persons • Non – seasonal and non- power using factories and

establishments employing twenty(20) or more persons

• Employees of the Factories and Establishments in receipt of wages not exceeding Rs.15000 /- Per month are covered under this Act.

Contribution under ESI Act,1948

The Scheme is primarily funded by contribution raised from Insured Employees and their employers

Payable such as 1. Employees’ Contribution – 1.75% of the Wages 2. Employers’ Contribution – 4.75% of the Wages TOTAL - 6.5 % of the Wages

Employees in receipt of an average daily wage of Rs.75/- or Less, are exempted from Payment of their share of contribution but are entitled to all social security benefits under the Scheme.

Machinery for Prevention and Settlement of Industrial Disputes

Machinery for prevention and settlement of disputes

Volun tary Methods

Collective Bargaining

Trade Unions

Joint consultations

Standing Orders

Grievance Procedure

Code of Discipline

Governmen t M ach inery

L a b ou r A d m in is t ra t ionMachinery

State Level

Central Level

Sta tu to ry M easu res

Works Committees

Conciliation

(A) C .Officer(B ) C. Board

Arbitration

Adjudication

(a ) Labour Courts(b ) Industrial Tribunals(c ) National Tribunals

Industria

lD

ispute

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47

State

Acts


Collective Bargaining: Collective Bargaining is a process in which the representatives of the employer and of the employees meet and attempt to negotiate a contract governing the employer-employee-union relationships.

Joint Management Councils: The JMC normally consists of equal number of representatives of workers and employers looking after three things: information sharing, consultative and administrative matters relating to welfare, safety, training etc and the formulation of standing orders.(without encroaching on the jurisdiction of works committees)


Standing orders: These are the rules and regulations which govern the conditions of employment of workers. The Industrial Employment (standing orders) Act of 1946 provides for the framing of standing orders in all industrial undertakings employing 100 or more workers.

Grievance procedure: A model grievance procedure as suggested by the Indian Labour Conference, 1958 has more or less been widely accepted in India now.

Code of discipline: It consists of a set of self-imposed obligations voluntarily formulated by the central organisation of workers and employers.


Works committees: As per the Industrial Disputes Act, 1947, works committees have to be set up all those industrial units which employ 100 or more persons. It is basically a consultative body.The main purpose of such committees is to promote industrial relations.


Conciliation: The practice by which the services of a neutral third party are used in a dispute as a means of helping the disputing parties to reduce the extent of their differences and to arrive at an amicable settlement or agreed solution. Conciliation officer: an authority appointed by the government to

mediate disputes between parties brought to his notice; enjoying the powers of a civil court. He is supposed to give judgement within 14 days of the commencement of the conciliation proceedings.

Board of conciliation: The Board is an adhoc, tripartite body having the powers of a civil court created for a specific dispute.It is appointed when conciliation officer fails to resolve the dispute within a time frame,

Court of enquiry: In case the conciliation proceedings fail to resolve a dispute, a court of enquiry is constituted by the government to investigate the dispute and submit the report within six months.


• Voluntary arbitration: It is the process in which the disputing parties show willingness to go to an arbitrator (a third party) and submit to his decision voluntarily.

• Adjudication: It is the process of settling disputes compulsorily through the intervention of a third party appointed by the Government. The Industrial Disputes Act provides a three-tier adjudication machinery consisting of:– Labour court– Industrial tribunal– National tribunal

Pre-Placement Examination

• It is the foundation of an efficient occupational health service.

• Done at the time of employement and it includes worker’s medical,family,occupational & social history;a thorough physical examination and a battery of biological and radiological examination, e.g.,CXR,ECG,vision testing,blood and urine examinations,special test for endemic diseases.

Pre-Placement Examination

• A fresh recruit either be totally rejected or given a job suited to his physical and mental abilities.

• The purpose of the pre-placement examination is to place the Right man in the Right job,so that worker can perform his duties efficiently without detriment to his health.

Periodical Examinationtion

Many diseases of occupational origin require month or even years for their development. Their slow development very often leads to non-recognition in the early stages and this is harmful to the workers and thus making the Periodical Examination necessary.

Dr Sunil Arora JR, Dept. of Chest &TB Govt. Medical College Patiala.

Documents

Transcript of Dr Sunil Arora JR, Dept. of Chest &TB Govt. Medical College Patiala.