Labour law or employment law is the body of laws, regulations,

administrative rulings, and precedents which address the legal

rights of, and restrictions on, labourers and their organizations.

t deals with many aspects of relationship between trade unions,

employers and their employees.
The final goal of Labour laws is to reduce the differences between
the Employer and Employee which leads in Industrial Growth and
Growth of a Nation.

Under the Constitution of India, Labour is a subject in the

Concurrent List where both the Central and State Governments
are competent to enact legislation.

As per the Constitution of India, matters in labour law contained

in Concurrent List are:

Entry No. 22: Trade Unions, industrialists and labour disputes.

Entry No. 23: Social Security and insurance, employment and

unemployment

Entry No. 24: Welfare of labour

Subjects restricted to Union List are:

Entry No. 55: Regulation of labour and safety in mines and oil
fields.

Entry No. 61: Industrial disputes concerning Union employees.

Entry No. 65: Union agencies and institutions for Vocational

training.

Laws related to Industrial Relations:

3.

The Trade Unions Act, 1926

The Industrial Employment (Standing Orders) Act, 1946
The Industrial Disputes Act, 1947.

Laws related to Equality and Empowerment of Women:

1.

The Maternity Benefit Act, 1961

The Equal Remuneration Act, 1976.

1.
2.

2.

Laws related to Wages:

1.

4.

Workmens Compensation Act, 1923

The Payment of Wages Act, 1948
The Working Journalist (Fixation of Rates of Wages) Act, 1958
The Payment of Bonus Act, 1965.

Laws related to Working Conditions:

1.

The Factories Act, 1945

The Contract Labour (Regulation & Abolition) Act, 1970
Shops and Establishment Act
Indian Boilers Act, 1923
The Dangerous Machines (Regulations) Act, 1983.

2.
3.

2.
3.
4.
5.

Laws related to Social Security:

1.

The Employees State Insurance Act, 1948

The Employees Provident Fund & Miscellaneous Provisions
Act, 1952
The Payment of Gratuity Act, 1972
The Unorganized Workers Social Security Act, 2008
Employers Liability Act, 1938
The Children (Pledging of Labour) Act, 1938
The Child Labour (Prohibition and Regulation) Act, 1986
The Bonded Labour System (Abolition) Act, 1976
The Employment of Manual Scavengers and Construction of Dry
Latrines Prohibition Act, 1993.

2.
3.
4.
5.
6.
7.
8.
9.

Amendment made in Payment of Wages Act, 1936 enhancing

ceiling of workers from Rs.1,600/- to Rs.6,500/- per month and
subsequently to Rs.10,000/- per month

Amendment made Payment of Bonus Act, 1965, wherein

the calculation ceiling and eligibility limit under the Act has been
enhanced from Rs.2,500/- to Rs.3,500/- and from Rs.3,500/- to
Rs.10,000/- per month respectively.

He Apprentices Act, 1961 has been amended to provide

reservation for other backward classes. The Maternity Benefit Act,
1961 has been amended to enhance the medical bonus from
Rs.250/-to Rs.1000/- and also empowering the Central
Government to further increase it to maximum of Rs.20,000/through Gazette Notification.

The Workmens Compensation Act has been amended to make it

gender neutral and it is now called the Employees Compensation
Act, 1923. Besides this, the Compensation in case of death,
disablement and funeral expense paid under the Act have also been
enhanced. The Plantation Labour Act, 1951 has been amended to
provide safety and occupational health care to plantation workers.

Employees State Insurance Act, 1948 has been amended to

improve the quality of delivery of benefits under the scheme and
also to enable ESI infrastructure to be used to provide health care to
workers of the unorganized sector.

Industrial Disputes Act, 1947 has been amended to amplify the

term appropriate Government defined under section 2(a) of the
Act. The wage ceiling for coverage under the Act has been
enhanced from Rs.1600/- to Rs.10,000/- per month to cover
workmen working in supervising capacity. The amended
provisions also provide direct access for the workman to the
Labour Court or Tribunal.

WHAT IS INDUSTRIAL RELATIONS?

IR is a relationship between management and

employees or among employees and their
organizations, that characteristics and grow out of
employment.

IR may be defined as the complex of inter-relations

among workers, managers and government.

CHARACTERISTICS OF IR:

An outcome of relationship in industry.

It create rules and regulations to maintain piece and

harmony.

Important parts of IR are employees and their

organization, employer and their association and
government.

It has a role of management, union and government.

OBJECTIVE OF IR:

To promote and develop labor management relation.

To regulate the production by minimizing industrial

conflicts

To provide opportunity to workers to involve in

decision making process with management.

To encourage and develop trade unions in order to

improve the workers' strength.

ROLE OF TRADE UNIONS IN IR:

Achieving higher wages

To offer responsive co-operation in improving level of

production, discipline etc.

To promote individual and collective welfare

To improve working and living conditions

To enlarge the opportunities of promotion and training.

ROLE OF EMPLOYERS ORGANISATION:

Promote and protect of the interest of employers engaged

in Industry, Trade and Commerce.

Advice offering

Bridge between Union Government

Train and develop staff members of concern members of

Associations

Preventive Machinery
Trade Union
Joint Consultation

Work Committee

Joint Management
Council
Standing Orders
Grievance Procedure
Code of Discipline

Settlement Machinery
a) Conciliation
1. Conciliation Officer
2. Board of Conciliation
3. Court of Inquiry
b) Voluntary arbitration
c) Compulsory Arbitration
1. Labor Court
2. Industrial Tribunal
3. National Tribunal

The Industrial Relations (Amendment) Act, 2012 sets

stricter conditions for the establishment and variation of
Employment Regulation Orders (EROs) and Registered
Employment Agreements (REAs).

Both EROs and REAs set out legally binding minimum

pay and conditions for workers in different sectors of the
economy and encompass all workers in these sectors. An
ERO is set by a Joint Labour Council (JLC) made up of
representatives of workers and employers, while an REA
is an agreement by workers and employers which is
registered at the Labour Court. Both EROs and REAs
are vetted by the Labour Court and ultimately the
Minister, before being legally enforceable.

What are the main changes in the new

legislation on EROs?

Basically, it sets out the principles and policies to be set

by the JLC when constructing an ERO; it gives guidance
as to what can be laid down with regard to pay and other
conditions in the ERO and sets out a mechanism for the
Labour Court to sort out disagreements at the JLC.

It also sets out a mechanism whereby an employer may

seek a temporary derogation or exemption from the
obligation to abide by the terms of an ERO.

The Labour Court will be allowed conduct a five year

review of all EROs/JLCs and may amend, merge or
abolish them according to criteria laid down. Employees
or trade unions can now go to a Rights Commissioner
with a complaint within six months with an appeal to the
Labour Court within six weeks.

Previous contraventions were processed by Labour

Inspectors. Any compensation awarded will be given
priority in the distribution of assets in the case of
insolvent companies.

What does a JLC have to take into account now

before proposing an ERO?

The JLC for a sector must now take cognizance of the

following;

Legitimate financial and commercial interests of the

employers

Efficient, economical and sustainable work practices

Agreeing and maintaining fair and sustainable

minimum rates of remuneration

Maintaining harmonious industrial relations

The levels of employment and unemployment in the

sector

The general level of wages in comparable sectors

The current National Minimum Wage

Any National Wage Agreement in force

What powers does the JLC have now for setting

rates and conditions?
The JLC can:

Fix minimum hourly rates of remuneration but not more

than 2 hourly rates based on length of service in the
sector or enterprise concerned

Set statutory minimum conditions of employment

Provide regulations for under 18s but the National

Minimum Wage must apply

The JLC cannot address:

Time off in lieu of public holidays

Compensation under the Organization of Working Act

for working on a Sunday

Payments in lieu of notice

Payments referable to redundancy

DEFINITION:
The industrial dispute means any dispute or difference
between:(i) Employers and employers
(ii) Employers and Workmen or
(iii) Workmen and workmen, which is connected with
Industrial disputes may be said to be disagreement or
controversy between management and labor with respect to
wages, working conditions, other employment matters or
union recognition.

Interest disputes: arising out of deadlocks in negotiation for

collective bargaining.

Grievance disputes: may pertain to discipline, wages,

working time, promotion, rights of supervisors etc. also some
times called interpretation disputes.

Unfair labor practices: those arising out of right to organize,

acts of violence, failure to implement an award, discriminatory
treatment, illegal strikes and lockouts.

Recognition disputes: over the rights of a TU to represent

class or category of workers.

According to SEC 22 (1) No person employed with a

public utility service shall go on strike in breach of
contract Without giving the employer notice of
strike, within six weeks before the strike. Before the
expiry of date of strike specified in such notice.
According to SEC 23; No employee of any industrial
establishment shall go on strike during the period
when proceedings in any disputes case is going on or
when final judgment is awaited .

Industrial
Undertaking

Works Committee

Conciliation officer
CG/State Govt.
Board

Tribunal
Labour court

Arbitral Tribunal

27

AWARD

There are two ways in which the basic parties to an

industrial dispute- the employer and the employees- can
settle their disputes.

Collective bargaining
Voluntary arbitration

It is commonly viewed as less expensive and faster than

resolving a dispute in court.

An arbitrator may be a single person or a panel.

Sometimes, however, the parties may agree to submit the dispute

to an arbitrator but at the same time, reserve their right to accept
or reject the award when it comes.

1. In case of individual dispute of workman related to discharge,

dismissal, retrenchment or termination by any means, now the
workman has the right to approach labour court directly without
waiting for conciliation proceedings and Govt. reference.
But he has to wait for three months for this direct action from the
date of filling his application before conciliation officer if the Govt.
is not able to complete the reference process within three months.
Earlier there was no such direct option available to workman to
approach labour court.
(Except in some states like Karnataka where State govt. has
provided for direct approach to Labour court within 6 months of
termination)

2. Such workman in case of individual dispute has to file claim

within time limit period of three years. Earlier there was no
such limitation period prescribed under the ID Act.
3. Wage ceiling of supervisor has been enhanced from Rs.1600/- per
month to Rs. 10,000/- per month, which means now any person
working in any industry doing any manual, unskilled, skilled,
technical, operational, clerical or supervisory work drawing
wages up to Rs. 10000/- will be a workman. Earlier this limit was
up to Rs.1600/-By this amendment the coverage of workman has
been increased and more people are covered now under the Act.

4. Definition of appropriate Govt. has been amplified. Now for the

industry, corporation, PSEs owned or controlled by the Central
Govt., the appropriate Govt. would be Central Govt.
5. In case of industry under the control of State Govt., appropriate
Govt. would be State Govt.
6. Earlier to amendment only judicial officers were eligible to
become the Judges (Presiding Officers) of labour court/ tribunal.
Now with this recent amendment the Dy. Labour
Commissioners/ Joint Labour Commissioners with degree of
Law & having 7 years of experience can also become labour
court/ tribunal judges.

7. Every industry employing 20 or more workmen is now under legal

obligation to constitute and have a grievance redressal machinery
in place in the organization to resolve the workers dispute at the
first level. Earlier it was not legally essential. The related
provisions which were brought in the ID Act in 1984 were never
enforced.
8. Now a provision has been made to execute the labour court/
tribunal decision. Earlier there was no such provision in the Act
and even after decision of the labour court/ tribunal there was no
machinery to enforce its execution on the employer. Now the
labour court/ tribunal shall transmit its award to concerned civil
court which shall execute the award as if it is a decree passed by
the court.