B.A.LL.

B, Vth Semester
LABOUR LAWS-I
UNIT -1
Q.1) Discuss the Industrial relations, labour problem and labour policy in India. (2022)
Ans- Industrial relations refer to how workers behave in the organizations where they work. Scholars studying
industrial relations aim to understand differences in work conditions, how much say workers have in decision-
making, the role of unions and other ways workers are represented, and how conflicts between workers and
employers are resolved. They look at how these interactions affect the outcomes of organizations, including
things like worker satisfaction, job security, organizational efficiency, and the impact on the community and
society. The key roles of industrial relations include:
 Facilitating communication between workers and management for a positive relationship.
 Fostering collaboration between managers and employees.
 Harnessing the positive influence of trade unions to prevent conflicts.
 Protecting the interests of both workers and management.
 Preventing an unhealthy and unethical environment in the industry.
 Developing measures that promote understanding, creativity, and cooperation to boost industrial
productivity.
 Ensuring increased participation by workers.

Importance of Positive Industrial Relations

1. Promoting Democracy
Industrial relations involve using collective bargaining to address workers’ issues. This process relies on
cooperation and mutual agreement among all parties involved—democracy in action. This includes management
and employee unions working together to establish industrial democracy, encouraging workers to contribute
their best to the organization’s growth and prosperity.
2. Boosting Morale
Positive industrial relations elevate employee morale, inspiring them to work more efficiently.
3. Preventing Conflicts between Management And Union
Industrial relations help prevent conflicts between unions and management by setting up mechanisms to resolve
issues through mutual agreement. Both parties are bound to this agreement, reducing the likelihood of unfair
practices and major conflicts between employers and trade unions.
4. Reducing Wastage
Maintaining satisfactory industrial relations is based on cooperation and mutual recognition within the
department. This approach helps minimize wastage of material, manpower, and costs.
5. Fostering Economic Growth And Development
Healthy and harmonious industrial relations lead to increased efficiency, prosperity, and reduced turnover,
providing tangible benefits to the organization. This, in turn, contributes to economic growth and development.
As an HR Expert in any company, one must be aware of labour laws and industrial relations. If you are a fresh
graduate and seeking a career in HR management, you must check the Executive Programme in Human
Resource Management by IIT Delhi. By blending theoretical concepts with practical applications, the program
seamlessly integrates HR principles and analytics to enhance organizational effectiveness. Its goals encompass
establishing a strong groundwork in HR basics, fostering talent management proficiency, honing skills in HR
data analysis, cultivating leadership capabilities, and offering insights into HR law and ethics. This initiative
empowers professionals to thrive in the field of HR management.
Industrial Relations and Labour Laws in India
The current state of industrial relations and labour laws in India is shaped by the ongoing developments and
expansion in the industrial sector. The growth in this sector has brought about a significant impact on the
employment landscape, influencing the economic conditions of workers and their relationship with

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organizations. Understanding the intricacies of these laws is not a one-size-fits-all approach; rather, it requires a
thorough examination of empirical and statistical data to comprehend the nuances of labour policies.
Each industry operates under specific rules and regulations that necessitate compliance with both national and
regional laws and policies. On 28th September 2020, the Industrial Relations Code 2020 received the president’s
assent. This legislative move aimed to consolidate the Industrial Disputes Act of 1947, the Industrial
Employment (Standing Orders) Act of 1946, and the Trade Unions Act of 1926. The overarching goal of this
code was to bring about benefits for both employers and employees. Here are some advantages of the Industrial
Relations Code 2020:
 Enhancing the efficiency of dispute resolution processes to facilitate amicable solutions and preserve the
employer-employee relationship.
 Safeguarding employees with fixed-term contracts, ensuring protection for those engaged in specific-
duration employment.
 Enforcing compliance with established standing orders within industrial establishments.
 Imposing stringent penalties on authorities failing to adhere to regulations, addressing non-compliance
issues effectively.
 Fostering a business-friendly environment and providing employers with increased flexibility in decision-
making for smoother operations.
 The maintenance of the nation's output and administration heavily depends on labour. Increasing the
nation's contribution to development, which is directly dependent on its workforce, is the primary
responsibility of our government. The lifestyles of labourers and capitalists, however, are very different.
As a result, our government has introduced a number of labour regulations that give workers
employment, security, and good working conditions. To provide workers with the necessities of life and
to preserve industrial peace is the primary goal of labour law.
Labour Policy in India

Labour Policy

 Due to the workers' poor economic standing and inability to barter or negotiate with employers, labour
legislation is absolutely important. As a result, time to time, Indian government keep updating and
implementing the labour friendly policy, which intended to provide negotiating power, health services,
safety, security, and welfare.
 India's labour strategy has evolved in response to the country's unique circumstances in order to meet the
demands of social justice and planned economic development. Its dual goals are to maintain industrial
peace and advance worker welfare. The recognition and implementation of the strategy for worker
engagement were stressed in the second, third, and fifth five-year plans.

Second Five-Year Plan's Employment Policy

 Since the middle of 1958, a code of discipline in the industry has been in place and has been voluntarily
adopted by all employer and worker organisations. In order to foster positive cooperation between their
representatives at all levels, the code set forth particular requirements for the management and
employees. The area of industrial relations has significantly improved as a result of this new idea of such

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 expansive goals. Man-day losses dramatically decreased from 47 during January through June 1958 to 19
during July through December 19608.
 Every employee is given the freedom and awards to join the union of his or her choosing, according to
the code. A sort of worker involvement in management has also developed. Councils for joint
administration were set up as an experiment. The Council was tasked with facilitating consultation
between employers and employees on a wide range of crucial topics affecting industrial relations.
Additionally, a programme for employee education was put into place. The programme included training
for both working teachers and teacher administrators. The workers' ability to benefit from protective
labour regulations has improved thanks to this initiative, which has also served to boost their self-
confidence.

The Third Five-Year Plan's Labour Policies

 The immediate and long-term needs of a planned economy were taken into consideration when designing
labour policy. The goal of India's current labour policy is to achieve full employment and raise the
average income of the population. It was kept in mind what a socialist society would be like. Therefore,
as stated in the Third Five Year Plan, the benefits of progress should be distributed fairly. The Fifth
Plan's labour supply projections7 indicate an increase in the labour force of around 18.26 million. As a
result, the plan is focused on creating significant employment possibilities.

India's Constitutional Provisions for Labour Policy (Article 43a)

 Furthermore, the 42nd Amendment Act of 1976, which added Article 43A-9 to the Indian Constitution,
offered a new window into industrial relations in contemporary India. The "participation of workers in
the management of industries" is listed. It declares that the state has a responsibility to take action to
ensure that employees participate in the administration of businesses, establishments, or other
organisations engaged in any industry by passing appropriate legislation or in another manner. One of
India's most significant social institutions has grown to be labour law. When a nation wants to advance
economically, industrial harmony is a necessity. No country can hope to thrive in the present
technological age, much less grow strong, great, and affluent unless it is committed to industrial
development and technological advancement, which may sound trite but is nonetheless true.

Labour problem in India

The Indian labor market is grappling with various challenges that hinder its growth and development. It is crucial
for future managers and policymakers to understand these problems in order to devise effective strategies for
addressing them.
This article sheds light on eight major problems in the Indian labor market and highlights the need for reforms to
foster a more inclusive and productive workforce:
1. Surplus Labour Force
India faces a significant challenge of a surplus labor force, primarily due to its rapidly growing population. The
continuous addition of laborers to an already saturated market leads to high levels of unemployment and
underemployment.
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Future managers need to explore innovative solutions to generate sufficient demand and create employment
opportunities for this surplus labor force.
2. Unskilled Labor

A pressing issue in the Indian labor market is the prevalence of a large number of unskilled workers. Limited
access to vocational training institutes hampers skill development, making it difficult for these individuals to
secure meaningful employment.
Future managers can contribute by supporting skill development initiatives, promoting vocational education, and
collaborating with industry stakeholders to bridge the skill gap.
3. Lack of Absorption of Skilled Labor
Despite the availability of skilled labor in India, the absorption rate remains low. Many technically educated
individuals, including engineering and vocational course graduates, struggle to find suitable employment
opportunities.
Future managers should focus on enhancing industry-academia linkages, fostering internships and apprenticeship
programs, and encouraging entrepreneurship to enhance the absorption of skilled labor.
4. Imperfections
The Indian labor market suffers from imperfections such as information asymmetry, inadequate manpower
planning, child labor practices, and a lack of suitable agencies for labor force utilization.
Future managers can contribute by promoting transparency, encouraging responsible business practices, and
supporting policies that ensure fair labor market operations.
5. Work Culture

The work culture among the Indian labor force needs improvement. Unhealthy work practices, low productivity,
and lack of discipline hinder economic growth and reduce absorption capacity.
Future managers should prioritize fostering a positive work culture through effective leadership, employee
engagement initiatives, and fostering a sense of ownership and professionalism among the workforce.
6. Militant Unionism
Militant unionism poses a significant challenge in certain sectors and states of India. Unhealthy practices and
militancy within trade unions hinder harmonious employer-employee relations and can adversely impact
productivity and industrial growth.
Future managers should strive for constructive dialogue, promote collaborative decision-making, and foster a
cooperative environment to address this issue.
7. Unemployment
Unemployment remains a critical problem in the Indian labor market. Disguised unemployment, seasonal
unemployment, general unemployment, and educated unemployment are prevalent.
Future managers need to advocate for policies that promote job creation, support entrepreneurship, and invest in
sectors with high employment potential. They should also explore innovative solutions to address specific types
of unemployment.
8. Lack of Labor Reforms
The Indian labor market lacks comprehensive labor reforms that are essential for its growth and adaptability.
Despite economic reforms in the 1990s, labor reforms have been relatively slow.
Future managers should actively participate in shaping policy discussions, advocating for rational and
progressive labor reforms, and promoting a balanced approach that considers the interests of both workers and
employers.
Q.2- Explain the mode of registration of Trade Union as laid down under Trade Union Act, 1926. Is
registration of a trade Union compulsory? Whether an un-registered trade union is an illegal
association? What are the rights and liabilities of a registered trade union under the Trade Union
Act, 1926? (2022, 23)

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Ans.- Sec. 3 Appointment of Registrars:- The appropriate government shall appoint a person to be the
Registrar of Trade Unions for each state. The appropriate government is also authorized to appoint additional
and deputy registrars of Trade Unions. They shall work under the superintendence and direction of the Registrar.
Sec. 4- Mode of Registration:- A Trade Union may be registered, unregistered or a recognized trade union.
Registration of Trade Union is not compulsory ad an un-registered trade Union is a valid association. But
there is basic distinction between these different unions. The members of a recognized and registered Trade
Union enjoy such benefits as the members of an unregistered trade union do not any seven or more members of a
Trade Union may apply for registration of the trade union all the members applying for registration must
subscribe their names to the rules of the trade union and also comply with provisions of the Act relating to
registration of union.
Provided that no Trade Union of workmen shall be registered unless at least ten percent or one hundred
of the workmen, whichever is less engaged or employed in the establishment or industry with which it connected
are the members of such trade union on the date of making of application for registration.
No trade union of workmen shall be registered unless it has on the date of making application not less
than 7 person as its members who are workmen engaged or employed in the establishment or industry with
which it is connected.
If more than half of the numbers who applied for registration of Trade Union cease to be members of the
Trade Union or dissociate themselves from the application by giving a notice in writing to Registrar before
registration is granted to the trade union the application shall be deemed to have become invalid.
Sec. 5- Application of Registration - According to the provisions of the Act a Trade Union may become a
registered Trade Union in the following manner.
1- An application should be rent to the Registrar in which seven or more members of such union must subscribe
their names.
2- The application in form ‘A’ should be accompanied with a copy of rules of the Trade Union and a statement
of the following particulars:-
(a) The names occupation and addresses of the members making the application.
(b) The name of the Trade Union and the address of its head office.
(c) The title, name, age, address and occupations of the office bearers of the Trade Union.
(d) A general statement of the assets and liabilities of the Trade Union prepared in the prescribed form and
containing such particulars as may be required should be rent with the application to the Registrar.
Sec. 6- Provisions to be contained in the rules of a trade union :- Every registered trade union is required to
have written rules dealing with certain matters specified in schedule II of the central trade union regulations;
1938. These rules generally determine and govern the relationship between the trade union and it members.
A Trade Union shall be entitled to registration under this Act if:-
1- The executive of the Trade Union is constituted in accordance with the provision of this Act.
2- The rule of Trade Union provide for the following matters:-
(a) The name of the Trade Unions.
(b) The whole of the object for which the Trade Union has been established.
(c) The whole of the objects for which the general funds of the Trade Union shall be applicable
(d) The maintenance of a list of the members of the Trade Union and adequate facilities for the inspection
thereof.
(e) The admission of ordinary members who shall be person actually engaged or employed in an industry
with which the Trade Union is connected and also the admission of the number of honorary or temporary
members as office bearers.
(f) The payment of a minimum subscription by members of the Trade Union which shall not be less than
(i) One rupee per annum for rural workers.

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 (ii) Three rupee per annum for workers in other unorganized sectors.
(iii) Twelve rupees per annum for workers is any other case.
(iv) The conditions under which any member shall be entitled to any benefit and under which any fine
or forfeiture may be imposed on the members
(g) The manner in which the rules shall be amended varied or rescinded
(h) The manner in which the members of the executive and other office bearers of the Trade Union shall be
elected or removed.
(hh) The duration of period being not more than three years for which the members of the executive and
other office bearers of the Trade Union shall be elected
(i) The safe custody of the funds of Trade Union
(j) The manner in which the trade union may be dissolved.
Sec. 7- Power to call for further particulars and to require alteration of name. The registrar may require the
person applying for such registration to change the name of the Trade Union if its name deceive the public likely
to or the members of either trade union. The registrar may also ask for further information which he thinks
necessary for the purpose of satisfying himself.
Sec. 8 – Registration:- The Registrar will register the Trade Union if he is satisfied that the Trade Union has
complied with all the requirements of this Act in regard to registration the registrar shall register the Trade Union
by making necessary entries in the register to be maintained in such form as may be prescribed where the
Registrar takes no action on an application for more than three months, a writ under Art. 226 can be issued
commanding the Registrar to deal with the application.
Sec. 9- Certificate of Registration:- The registrar on registering a Trade Union shall issue a certificate of
registration in the fore scribed form which shall be conclusive evidence that the Trade Union has been duels
registered under this Act.

Sections Related To Rights and Liabilities of Registered Trade Union

After registration, trade unions receive certain rights and privileges. The rights guaranteed to the registered trade
unions and their liabilities are provided in chapter 3 from section 15 to 28 of the Trade Union act, 1926.
Provisions are- Sec.15. Objects on which general funds may be spent, Sec. 16. Constitution of a separate fund for
political purposes, Sec.17. Criminal conspiracy in trade disputes, Sec.18. Immunity from civil suit in certain
cases, Sec.19. Enforceability of agreements, Sec. 20. Right to inspect books of trade unions, Sec. 21. Rights of
minors to membership of trade unions. Sec. 21.A. Disqualifications of office-bearers of trade unions, Sec.22.
Proportion of office bearers to be connected with the industry. Sec. 23. Change of names. Sec.24. Amalgamation
of trade unions. Sec. 25. Notice of change of name or amalgamation. Sec. 26. Effects of change of name and of
amalgamation. Sec. 27. Dissolution. Sec.28. Returns.

Section 15: Objects on which general funds may be spent. -The general funds of a Registered Trade Union shall
not be spent on any other objects than the following namely:
a. The payment of salaries, allowances and expenses to [office-bearers) of the Trade Union;
b. The payment of expenses for the administration of the Trade Union including audit of the accounts of the
general funds of the Trade Union;
c. The prosecution or defence of any legal proceeding to which the Trade Union or any member thereof is a
party, when such prosecution of defence is undertaken for the purpose of securing or protecting any rights of
the Trade Union as such or any rights arising out of the relations of any member with his employer or with a
person whom the member employs;
d. The conduct of trade disputes on behalf of the Trade Union of member thereof;

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e. The compensation of members for loss arising out of trade disputes;
f. Allowances to members of their dependents on account of death, old age sickness, accidents or
unemployment of such members;
g. The issue of, or the undertaking of liability under, policies of assurance on the lives of members, or under
policies insuring members against sickness, accident or unemployment.
h. The provision of educational, social or religious benefits for members (including the payment of the
expenses of funeral or religious ceremonies for deceased members) or for the dependants of members;
i. The upkeep of a periodical published mainly for the purpose of discussing questions affecting employers or
workmen as such;
j. The payment, in furtherance of any of the objects on which the general funds of the Trade Union may be
spent, of contributions to any cause intended to benefit workmen in general, provided that the expenditure in
respect of such contributions in any financial year shall not at any time during that year be in excess of one-
fourth of the combined total of the gross income which has up to that time accrued to the general funds of the
Trade Union during that year and of the balance at the credit of those funds at the commencement of that
year; and
k. Subject to any conditions contained in the notification, any other object notified by the [appropriate
Government] in the (Official Gazette).]

Section 16: Constitution of a separate fund for political purposes:

1. A Trade Union may constitute a separate fund, from contributions separately levied for or made to that fund,
from which payments may be made, for the promotion of the civic and political interests of its members, in
furtherance of any of the objects specified in sub-section (2).

2. The objects referred to in sub-section (1) are:

a. The payment of any expenses incurred, either directly or indirectly, by a candidate or prospective candidate
for election as a member of any legislative body constituted under [the Constitution] or of any local
authority, before, during, or after the election in connection with his candidature or election; or

b. The holding of any meeting or the distribution of any literature or documents in support of any such
candidate or prospective candidate; or

c. the maintenance of any person who is a member of any legislative body constituted under the constitution or
for any local authority; or

d. the registration of electors or the selection of a candidate for any legislative body constituted under [xxx] [the
Constitution] or for any local authority; or

e. the holding of political meetings of any kind, or the distribution of political Literature or political documents
of any kind.
[(2A) In its application to the State of Jammu and Kashmir, references in Sub-section (2) to any legislative body
constituted under the Constitution shall be Construed as including references to the Legislature of that State.]

3. No member shall be compelled to contribute to the fund constituted under sub-section (1); and a member
who does not contribute to the said fund shall not be excluded from any benefits of the trade union, or placed
in any respect either directly or indirectly under any disability or at any disadvantage as compared with other

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 members of the trade union (except in relation to the control or management of the said fund) by reason of
his not contributing to the said fund; and contribution to the said fund shall not be made a condition for
admission to the trade union.]

Q.3- Define Trade dispute and discuss provisions relating to criminal conspiracy in trade dispute and
immunity from civil suit in certain cases under the Trade Union Act 1926. Refer to decided cases. (2023)
Ans. Sec. 17. Criminal conspiracy in Trade Disputes—
Section 17 of the Act confers immunity from liability in case of criminal conspiracy under section120-B
of the Indian Penal Code committed by an office bearer or member of a registered Trade Union. The protection
provided to members or officer bearers of a registered Trade Union is partial in the sense that the immunity is
available only in respect of agreements made between the members for the purpose of furthering any legitimate
object of the Trade Union as provided in section 15 of the Act. If the agreement is an agreement to do an act
which is an offence, no immunity can be claimed. The effect of section 17 of the Act is that an agreement or
combination of two or more members of the registered Trade Union to do or cause to be done any act in
furtherance of a Trade dispute shall not be punishable as a conspiracy unless such act, if committed by an
individual, constitutes an office. Registered Trade Unions have certain rights to do in furtherance of their trade
disputes, such as to declare strike and for that purpose to persuade their members to abstain from their work.
In West India Steel Company Ltd. v. Azeez, a Trade Union leader obstructed work in the factory for five
hours protesting against deputation of workman to work in another section. It was held that a worker inside the
factory is bound to obey the reasonable instructions given by his superiors and carryout the duties assigned to
him. The mere fact that such worker is a Trade Union leader does not confer on him any immunity in that regard.
A trade union leader has no right in law to share managerial powers and he cannot dictate any worker
individually or to the workmen generally about the manner in which they have to do their work or discharge their
duties. A Trade Union can espouse the cause of the workers and can resort to lawful agitations for conducting
their rights but officials of Trade Union are not entitled to order a workman to stop his work or otherwise
obstruct the work of the establishment. Where officials of a Trade Union obstruct the work the management is
justified. Where officials of a Trade Union obstruct the work the management is justified in proceeding against
such worker and deal with him effectively.
Sec. 18. Immunity from civil suits in certain cases.—Section 18 of the Trade Unions Act deals with the
immunity from civil proceedings afforded to a registered Trade Union, and to its members or officer bearers. A
person is liable in Torts for deliberately bringing about a breach of contract of employment between the
employer and the employee. But a registered Trade Union, its members or officer bearers are protected from
being sued for inducing a person to break his contract of employment or for interfering with the trade, business
or employment of some other person, provided such inducement is in contemporary or furtherance or a trade
dispute.
Section 18(1) of the Act provides that no suit or other legal proceeding shall be maintainable in any Civil
Court against any registered Trade Union or any office bearer or member thereof in respect of any act done in
contemplation or furtherance of a trade dispute to which a member of the Trade Union is a party on the ground
only that such act induces some other person to break a contract of employment, or that it is an interference with
the trade, business or employment of some other person or with the right of some other person to dispose of his
capital or of his labour as he wills. In this sub-section emphasis is on the word “only” which means the
protection is limited only to the grounds of action ability provided in this sub-section, and a registered union, its

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members or office bearers shall be liable for any act not covered by this clause. There shall be no immunity if
threats, violence or other illegal means are employed.
Section 18(2) of the Act provides that a registered Trade Union shall not be liable in any suit or other
legal proceeding in any Civil Court in respect of any tortuous act done in contemplation or furtherance of a trade
dispute by an agent of the Trade Union if it is proved that such person acted without the knowledge of, or
contrary to, express instructions given by the executive of the Trade Union.
It was held in Ram Singh and others v. M/s Ashoka Iron Foundry and others, that a suit for perpetual
injunction restraining the workmen from indulging in unfair labour practice is deemed as one of civil nature and
hence cognizable under Section 9 of the Civil Procedure Code. Therefore, where the court has barred the
workmen from holding meeting, dharna and interfering in the rights of a company such a restrain does not curtail
the just trade union activities of the workers. It cannot be construed as unjust and the workmen are at liberty of
carry on legitimate trade union activities peacefully.

Q.4. Explain the history and development of Trade Union movement in India. Name any two important
Trade Unions of national level. (2022)
Ans. A trade union, as defined by the Trade Unions Act of 1926 (previously known as the Indian Trade Unions
Act), is a collective body formed with the primary purpose of regulating relations between workers and
employers, or between workers themselves, or between employers. This definition also covers any federation of
two or more trade unions. These associations of wage-earners are established with the main aim of improving
and maintaining the conditions of their work lives. Trade unions have become an essential part of the modern
industrial system in many countries, including India. They operate within the framework of the constitution and
adhere to globally accepted principles established by organizations like the International Labour Organization
(ILO).Trade unions represent collective stands and power of collective bargaining, which are crucial for the
growth of a stable working population across numerous economies.The right to form a trade union is guaranteed
as a fundamental right under Article 19 (1) (c) of the Indian Constitution.

Tracing the History of Labour Unions in India-

The emergence of trade unions was a response to the need of the time. They were formed to protect and secure
the interests of the industrial worker and to present their collective demands and grievances. This became
particularly necessary from the second half of the nineteenth century, with the establishment of industries.
The first trade union in India was formed in Bombay after the establishment of textile mills in the 1850s,
followed by the formation of trade unions in Calcutta in 1854 with the establishment of Jute Mills.
The first factory commission set up in 1879 studied the problems of industrial workers. The first trade union
under the leadership of Narayan Meghji Lokhande, the ‘Bombay Millhands Association’, was founded in 1884.
In 1891, The Indian factory Act was passed. Some other notable Trade unions include the Ahmedabad Weavers
(1895), Jute Mills, Calcutta (1896), and Bombay Mill workers (1897) Union.
Characteristics of Early Trade Unions and Their Leadership
Early trade union leaders were Social Reformers and Nationalists with political inclinations.
Their approaches were welfare-centric, focusing more on the rights of the workers.
These unions had a limited presence, mainly in the regions of industrial hubs, and were absent across the
country.
Since the movement was in its nascent stage, it was difficult to identify concerted goals or long-term targets.
The First Organised Trade Union Era-1918 and Beyond

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The first organized Trade Union in India, the Madras Labour Union, was established in 1918.
The First World War, increased communication, and better awareness of global players contributed to the
development of the trade union movement. Some important Unions were the Ahmedabad Textile Labour
Association (1917), All India Postal and RMS Association. The All India Trade Union Congress, the oldest trade
union federation, was founded in 1920, under the leadership of Lala Lajpat Rai, Joseph Baptista, N.M Joshi, and
Diwan Chaman Lall.
Factors That Fuelled the Growth of the Trade Union Movement
The high cost of basic commodities and difficult living conditions, especially as a result of the war, affected
workers and fueled the growth of the movement.
The emergence of the Home Rule League, Gandhian ideals, and leadership, and prevailing conditions prompted
leaders of the day to work to address workers’ plight.
Events at the end of the First World War, the establishment of the International Labour Organization (ILO), and
the Russian Revolution also contributed to the growth of the movement.
Post-1925 Era: The Emergence of Divergent Ideologies
This era saw an increase in militancy and revolutionary activities among trade unions.
Leadership emerged to moderate the movement and bring it back to the mainstream.
The All India Trade Union Congress (AITUC) broke away, forming factions – National Trade Union Federation
(NTUF) and All India Red Trade Union Congress (AIRTUC), which later merged again.
Legislative measures such as the Trade Unions Act, 1926, and the Trade Disputes Act, 1929, propelled the
growth of trade union associations, allowing rights in exchange for obligations.
Post-1935 Era: Trade Unions Join the National Narrative
This era witnessed enhanced unity among different trade unions. The political influence of the Indian National
Congress across different states led to the growth and emergence of multiple organizations in the trade union
sphere. Legislative measures were adopted to confer power and recognition to different trade unions.
The government strived to promote industry while protecting the interest of the workers.
This era is also marked by resentment among unions for the suppression of their protests by the state machinery,
instead of reconciliation and workable resolution.
World War II and a New Era in the Labour Movement
The World War II further deteriorated the standard of living, coupled with skyrocketing inflation of common
commodities. The war affected the common populace very adversely, which made the movement come out
stronger. The introduction of the Industrial Employment Act, 1946, and the Bombay Industrial Relations Act,
1946, marked the emergence and further strengthening of the trade union movements. The movements also lent
their voice to the national struggle and identified themselves as a crucial player in the national struggle.
The Post-Independence Era
In the Post-Independence era, trade unions were more influenced by regional or national political affiliations,
thereby blurring their own position with respect to the primary concerns of the workers. The Indian National
Trade Union Congress was formed in 1947. Post-liberalization, the influence of trade unions has somewhat
attenuated, coupled with the privatization of the economy. Labour code and minimum wage are still some
demands remaining as contentious issues to be addressed. The Hind Mazdoor Sabha was formed in 1948, and the
Bharatiya Mazdoor Sangh was founded in 1955. The increase in the unorganised sectors of the Economy due to
various reasons has led to an increase in the membership base of the unions.
Challenges Faced by Trade Unions in the Post-Independence Era
Limited financial resources due to the low membership fee, limiting their ability to mobilize financial resources.

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With concentration in large cities and dominated by organized sectors, rural agricultural labour is left out and not
adequately given space. Although the unions have registered growth in membership, large numbers of labourers
are not part of the groups, thereby weakening their collective bargain potential. Dwindling support base among
the public post-liberalization. Weak organizational structure and lack of clarity to deal with different labour
groups. Political ambitions and priorities of the leadership have trumped the concerns and interests of the
labourers, further weakening the bargaining power. Weakening of bargaining power due to similar fractions and
easy influence by groups with a counter-narrative, driving a wedge among labour unions unity.
Lack of unity among labour unions, and resultant competitions for better share, which further puts them in
disadvantage to put forth their demands. The question of recognition of the unions, where a favourable group
may be given priority, sidelining the genuine or major groups.
Importance of Labour Unions in the Post-Liberalization Era
Trade unions play an essential role in safeguarding the collective interest of the labourers, drawing a fine balance
with the investor’s interests. They play a crucial role in ensuring the adoption of ethical business practices. Trade
unions are instrumental in garnering and mobilizing support for the interests of the labour class. They help in
strengthening the collective bargain capacity of the labour class.
Recent Reforms: The Introduction of Labour Codes
Labour is a subject in the Concurrent List of the Constitution of India. The government has recently proposed
new labour codes, which aim to unify various bills and provisions. These codes are broadly categorized into four
different areas, dealing with Occupational Safety, Health and Working Conditions, Social security, Industrial
Relations, and Wages. These four labour codes will rationalize 44 central labour laws.
Conclusion
The history of trade unionism in India has evolved to cater to the needs and challenges faced by the labour force
over time. Trade unions have played a significant role in the development of the nation, especially in the
industrial and social sectors. A strong and robust trade union is essential to counter the rising disparity of
incomes, maintain labour standards, secure the interests of the labourers, and promote the adoption of ethical
business practices. While reforms to various labour laws were long overdue, it is crucial to strike a balance
between labour welfare and the interests of investors for faster growth. These far-reaching labour laws require
greater deliberation among all stakeholders to shape further policy directions. This will propel India towards a
world-class manufacturing-led growth trajectory, making India truly self-reliant and revitalizing the Make in
India program.

UNIT-2
Q.1- Define ‘ Industry’ under the industrial disputes Act 1947 with reference to hospitals the
approach of the Supreme Court from Mazdoor Sabah to Safdarjang hospital cases is contradictory
explain.(2023)
Ans. 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 in two parts. The first says that industry means any business, trade, undertaking, manufacture,
or calling of employers and the second part provides that it include any calling, service, employment, handicraft,
or industrial occupation or avocation of workmen.
Is hospital an industry- The question whether hospital is an industry or not has come for determination by the
Supreme Court on a number of occasions and the uncertainty has been allowed to persist because of conflicting
judicial decisions right from Hospital Mazdoor Sabah case to the Bangalore Water Supply v. A. Rajappa. In

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State of Bombay v. Hospital Mazdoor Sabah case, the Hospital Mazdoor Sabah was a registered Trade Union of
the employees of hospitals in the State of Bombay. The services of two of its members were terminated by way
of retrenchment by the Government and the Union claimed their reinstatement through a writ petition. It was
urged by the State that the writ application was misconceived because hospitals did not constitute an industry.
The groups of hospitals were run by the State for giving medical relief to citizens and imparting medical
education. The Supreme Court held the group of hospitals to be industry and observed as follows:
(1) The State is carrying on an ‘undertaking’ within Section 2(j) when it runs a group of hospitals for
purpose of giving medical relief to the citizens and for helping to impart medical education.
(2) An activity systematically or habitually undertaken for the production or distribution of goods or for the
rendering of material services to the community at large or a part of such community with help of
employees is an undertaking.
(3) It is the character of the activity in question, which attracts the provisions of Section 2(j). Who
conducts the activity and whether it is conducted for profit or not make a material difference.
(4) The conventional meaning attributed to the words, ‘trade and business’ has lost some of its validity for
the purposes of industrial adjudication…it would be erroneous to attach undue importance to attributes
associated with business or trade in the popular mind in days gone by.
Applying the above principles an Ayurdedic College of Pharmacy manufacturing medicines for sale and for
benefit of students of the college besides other activities of college was held to an industry. Hospital Mazdoor
Sabha case was over ruled by Safdarjung Hospital case. But Safdarjung Hospital and Dhanraj Giri Hospital cases
have now been overruled in Bangalore Water Supply v. A. Rajappa and Hospital Mazdoor Sabha case has been
rehabilitated. In Management of Safdarjung Hospital, Delhi v. Kuldip Singh Kurji Holy Family Hospital was
held not be an industry because that was entirely charitable institution carrying on work of training, research and
treatment. Similarly, Safdarjung Hospital, New Delhi, and Tuberculosis Hospital, New Delhi were also held not
to be industry.
In Management of Hospitals, Orissa v. Their Workmen it was held that “hospital run by the Government as
a part of its function is not an industry. Hospitals run by the State of Orissa are places where persons can get
treated. They are run as departments of Government. The mere fact that payment is accepted in respect of some
beds cannot lead to the inference that the hospitals are run as a business in a commercial way. Primarily, the
hospitals are meant as free service by the Government to the patients without any profit motive.”
In Dhanrajgiri Hospital v. Workmen, it was held that Dhanrajgiri Hospital, Sholapur was not an industry
because it was not carrying on any economic activity in the nature of trade or business. But in view of the
decision of the Supreme Court in Bangalore Water Supply v. A. Rajappa Dhanrajgiri Hospital case has been
overruled and all hospitals fulfilling the test laid down in Bangalore Water Supply case will be industry.
In Keraleeya Ayurvedic Samajam Hospital and Nursing Home, Shoranpur v. Workmen, the Ayurvedic
Institute was registered under the Registration of Societies Act. It was running a hospital, nursing home and an
Ayurvedic School. It was held to be an industry for the following reasons:
“(i) It was engaging employees in its different departments; (ii) The institution where Ayurvedic medicines
were prepared was registered as a factory under the Factories Act; (iii) For the services, rendered by way of
treatment, fee was charged from citizens, and (iv) The establishment was organized in a manner in which trade
or business was undertaken.”
Thus on an analysis of the entire case law up to Bangalore Water Supply case on the subject it can be set that
such Hospital as are run by the Government as part of its sovereign functions with the sole object of rendering
free service to the patients are not industry. But all other Hospitals, both public and private; whether charitable

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or commercial would be industry if they full fill the triple test laid down in Bangalore Water Supply v. A.
Rajappa.
Q.2- Discuss the constitution, procedure, powers and duties of industrial Tribunals and Labour Courts
under the Industrial Dispute Act 1947. Can industrial tribunals give appropriate relief in case of
discharge or dismissal of workmen?(2022, 2023)
Ans. Section 3. Works Committee—
The Works Committee is an authority under the Act. The following are the duties of the Works
Committee:
(a) To promote measures for securing and preserving amity and good relations between the employers and
workmen;
(b) To achieve the above object, it is their duty to comment upon matters of common interest or concern of
employers and workmen;
(c) To endeavor to compose any material difference of opinion in respect of matters of common interest or
concern between employers and workmen.
The main purpose of creating the Works Committee is to develop a sense of a partnership between the
employer and his workmen. It is a body which aims to promote good-will and measures of common
interest. This section is applicable only to such industrial establishment in which one hundred or more
workmen are employed, or to an establishment in which a minimum of one hundred workmen have been
employed on any day in the preceding twelve months.
Section 4. Works Committee—
The Appropriate Government may by notification in the Official Gazette, appoint conciliation officers.
These officers are charged with the duty of mediating in any promoting the settlement of industrial disputes. The
Appropriate Government may appoint one or more conciliation officers, as it thinks fit. A conciliation officer
may be appointed for a specified area or for specified industries in a specified area, or for one or more specified
industries. The appointment may be made either permanently or for a limited period. The jurisdiction, powers
and other matters in respect of the conciliation officer shall be published in the Official Gazette.
Section 5. Boards of Conciliation —
The provision for appointment of Boards of Conciliation is made under the Act to bring the two parties to
a dispute to sit together and thrash out their difference and to find out ways and means to settle them. Section 5
of the Act provides that the Appropriate Government may, by notification in the Official Gazette, constitute a
Board of Conciliation. The object of appointing the Board is promotion of settlement of an industrial disputes. A
Board shall consists of a Chairman and two or four other members, as the Appropriate Government thinks fit.
The Chairman shall be an independent person and the other members shall be persons appointed in equal
numbers to present the parties to the disputes. Any person appointed to represent a party shall be appointed on
the recommendation of that party. If any party fails to make a recommendation within the prescribed time, the
Appropriate Government shall appoint such persons as it thinks a fit to represent that party. A Board, having the
prescribed quorum may act even though the Chairman, or any of its members is absent or there is any vacancy in
its number. But, if the Appropriate Government notifies the Board that the services of Chairman or of any other
member have ceased to be available, the Board shall not act until a new Chairman or member, as the case may
be, has been appointed.
It is to be noted that the Chairman must be an “independent person” which means a person unconnected
with the industrial dispute or with the industry affected by such dispute. Of course the Appropriate Government
is vested with the discretion to appoint the Board of Conciliation, whenever there is an occasion for such
appointment on the arising of industrial dispute. The Board as stated above is appointed with a view to promote
the settlement of industrial dispute.
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 The appointment of the Conciliation Board together with the names of the persons constituting the Board
shall be notified in the Official Gazette.
Section 6. Courts of Inquiry—
If any matter is referred to a Court by the Appropriate Government, it shall inquire and make a report
ordinarily within a period of six months from the commencement of inquiry. Section 6 (1) points out that if
“occasion arises” the Appropriate Government may constitute a Court of Inquiry. The purpose of constitution of
Court of Inquiry is to inquire into any matter appearing to be connected with or relevant to an industrial dispute.
The purpose of constitution of Court of Inquiry is to inquire into any matter appearing to be connected with or
relevant to an industrial dispute. The constitution of the Court has to be notified in the Official Gazette. Thus it is
clear that the proper occasion for appointment of a Court of Inquiry will be arising of an industrial dispute and
necessary inquiry into any matter connected with or relevant to such dispute. The Court shall not inquire into the
industrial dispute itself.
Section 6 (2) says that a Court may consist of one independent person or such number of independent
persons as the Appropriate Government thinks fit. Where a Court consists of two or more members, one of them
shall be appointed as a Chairman. If the Court has the prescribed quorum it may act. The fact that the Chairman
or any other member is absent or the existence of any vacancy in the Court shall not debar the Court from
functioning provided the quorum exists. But if the Appropriate Government notifies the Court that the services
of the Chairman have ceased to be available the Court shall not act until a new Chairman has been appointed.
The appointment of a Court together with the names of persons constituting it shall be notified in the Official
Gazette.
Section 7. Labour Court —
The power of appointment of a Labour Court under Section 7 of the Act is vested with the Appropriate
Government. The Appropriate Government may constitute one or more labour Courts. The constitution of the
Labour Court together with names of persons constituting the Labour Court should be notified in the Official
Gazette. The functions of the Labour Court as provided in the Act are:
(i) Adjudication of industrial disputes relating to any matter specified in the second Schedule;
(ii) Performing of such other functions as may be assigned to them under this Act.
The following matters are specified in the Second Schedule, namely:
(i) The propriety or legal of any order passed by an employer under the standing Orders;
(ii) The application and interpretation of Standing Orders;
(iii) Discharge or dismissal of workmen, including reinstatement of, or grant of, or relief to,
workmen wronglfully dismissed;
(iv) Withdrawal of any customary concession or privilege;
(v) Illegality or otherwise of a strike or lock-out;
(vi) All matters other than those specified in the Third Schedule.
According to Section 7 (2) a Labour Court shall consisit of one person only, who shall be
appointed by the appropriate Government. The qualifications of a person who can be
appointed as presiding officer of the Labour Court are mentioned in sub-section (3) of Section
7 as follows:
(a) he is, or has been, a judge of a High Court; or
(b) he has, for a period of not less than three years, been a District Judge or an Additional
District Judge; or
(c) omitted.
(d) he has held any judicial office in India for not less than seven years; or
(e) he has been the presiding officer of a Labaour Court constituted under any Provincial Act
or State Act for not less than five years.

Page 14
 (f) he is or has been a Deputy Chief Labour Commissioner (Central) or Joint Commissioner
of the State Labour Department, having a degree in law and at least sever years’
experience in the labour department including three years of experience as Conciliation
Officer :
Provided that on such Deputy Chief Labour Commissioner or Joint Labour Commissioner shall be
appointed unless he resigns from the service of the Central Government or State Government, as the case may
be, before being appointed as the presiding officer; or
(g) he is an officer of Indian Legal Service in Grade III with three years’ experience in the
grade.”
Section 7-C prescribes disqualifications of the presiding officer of a Labour Court.

Section 7-A. Tribunals—In our country the Industrial Tribunals were fore the first time created by the
Industrial Disputes Act, 1947. Commenting upon the status of these tribunals the Supreme Court has observed
that the tribunals under the Act are invested with many trappings of a Court but do not have the same status as
Courts. These Tribunals need not follow the strict technicalities of law in adjudication of industrial disputes.
The power to constitute Industrial Tribunal is conferred upon the Appropriate Government, be
constituted. It is the duty of the Tribunal to adjudicate upon any industrial dispute relating to any matter, whether
specified in the Second Schedule or the Third Schedule. These tribunals shall perform such other functions as
may be assigned to them under this Act.
The Tribunal shall consist of one person only, who shall be appointed by the State Government. Any
person having one of the following qualifications may be appointed as the presiding officer of the Industrial
Tribunal, namely:
(a) if he is, or has been, a judge of a High Court; or
(aa) if he has for a period of not less than three years, been a District Judge or an Additional District Judge.
(b) he is or has been a Deputy Chief Labour Commissioner (Central) or Joint Commissioner of the State
Labour Department, having a degree in law and at least seven years’ experience in the labour department
including three years of experience as Conciliation Officer:
Provided that no such Deputy Chief Labour Commissioner or Joint Labour Commissioner shall be
appointed unless he resigns from the service of the Central Government or State Government, as the case
may be, before being appointed as the presiding officer; or
(c) he is an officer of Indian Legal Service in Grade III with three years’ experience in the grade.”
It is provided by Section 7-A (4) that the appropriate Government, if it thinks fit, may appoint two
persons as assessors to advise the Tribunal in the proceedings before it.
These Tribunals are important for many practical reasons. First, only experienced persons of high
integrity can be appointed as presiding officer of the Tribunal as stated above. Secondly, almost any
important matter can be submitted for adjudication to the Tribunal including questions relating to wages,
bonus, provident fund, gratuity and dismissal, etc. Thirdly, the Tribunals enjoy unlimited powers so long
as they act within the scope of their authority.
Powers—The Tribunal is a judicial body or at any rate a quasi-judicial body. Therefore, a Tribunal must
serve notice upon the parties of the reference by name and any award made without serving such notices
is fundamentally wrong. It could make a suitable award for bringing about harmonious relations between
the employers and workmen and can direct reinstatement of a workman if it is necessary in the interest of
industrial peace. The Tribunal while arriving at a finding in a matter may rely on date available to it
otherwise than from evidence adduced on behalf of the parties.

Section 7-B. National Tribunals—

(1) Unlike the other authorities under the Act the National Tribunals can only be constituted by the
Central Government. The power is to be exercised by issuing of notification in the Official Gazette.
Page 15
 The name of the person constituting the National Tribunal shall also be notified in the Official
Gazette. The Central Government may constitute one or more Tribunals. National Industrial
Tribunals are constituted for the adjudication of industrial dispute, which in the opinion of the Central
Government (i) involves question of national importance or (ii) are of such a nature that the industrial
establishments situated in more than one State are likely to be interested in or affected by such
dispute. It is sole discretion of the Central Government to decide that the industrial dispute involves a
question of national importance or industrial establishments situated in more than one State are
interested in or affected by the dispute.
(2) A National Tribunal shall consist of one person to be appointed by the Central Government.
(3) A person shall not be qualified for appointment as the presiding officer of National Tribunal unless he
is or has been a Judge of a High Court.
(4) The Central Government may, if it thinks fit, appoint two persons as assessors to advise the National
Tribunal in the proceeding before it.
Section 7-C. -- Disqualification for the presiding officers of Labour Courts, Tribunals and National
Tribunals—No person shall be appointed to, or continue in the office of the presiding officer of a Labour Court,
Tribunal or National Tribunal, if—
(a) he is not an independent person; or
(b) he has attained the age of sixty-five years.
The moment any person suffers from any disqualification, he shall cease to have authority to act
in the office concerned. Only those persons who do not suffer from the disqualifications stated above
can be appointed to fill in any vacancy under Section 8 of the Act.
Section 8 Filling of vacancies—If a vacancy occurs in the office of the Presiding Officer of a Labour Court, or
Tribunal, or in the office or the chairman or any other member of a Board or Court the Appropriated Government
shall appoint another person in accordance with the provisions of this Act to fill in the vacancy. Any vacancy in
the office of Presiding Officer of a National Tribunal shall be filled in by the Central Government in the like
manner. After the vacancy is filled, the proceeding may be continued before the Labour Court, Tribunal,
National Tribunal, Board or Court, as the case may be, from the stage at which the vacancy is filled. It is
provided by Section 8 off the Act that only a vacancy other than a temporary absence shall be filled in
accordance with the provisions of this Act. It means that the temporary absence shall not be considered a
vacancy for the purpose of this section. Therefore, a vacancy shall mainly arise due to transfer, resignation or
acquisition of any disqualification as provided in Section 7-C of the Act.
According to the latter part of Section 8 proceedings, after filling in the vacancy, may be started from the
stage at which the vacancy is filled. But where a tribunal constituted under Section 7-A of the Act could not
dispose of some references, and a new Tribunal was constituted by the Government the proceeding must be
commenced again and not started as provided for by Section 8 of the Act.

UNIT -3
Q.1- What are the rights of a laid off workman to claim compensation? Under what circumstances a
workman is not entitle to claim compensation? (2022, 2023)
Ans. “Lay-off” (with its grammatical variations and cognate expressions) means the failure, refusal or inability
of an employer on account of shortage of coal, power or raw materials or the accumulation of stocks or the
break-down of machinery [or natural calamity or for any other connected reason] to give employment to a
workman whose name is borne on the muster-rolls of his industrial establishment and who has not been
retrenched;

Page 16
Explanation : Every workman whose name is borne on the muster-rolls of the industrial establishment and who
presents himself for work at the establishment at the time appointed for the purpose during normal working
hours on any day and is not given employment by the employer within two hours of his so presenting himself
shall be deemed to have been laid off for that day within the meaning of this clause:
Provided that if the workman, instead of being given employment at the commencement of any shift for
any day, is asked to present himself for the purpose during the second half of the shift for the day and is given
employment, then, he shall be deemed to have been laid off only for one half of that day:
Provided further that if he is not given any such employment even after so presenting himself, he shall
not be deemed to have been laid off for the second half of the shift for the day and shall be entitled to full basic
wages and dearness allowance for that part of the day:

Right of workmen laid off for compensation.

Whenever a workman (other than a badli workman or a causal workman) whose name is borne on the muster
rolls of an industrial establishment and who has completed not less than one year of continuous service under an
employer is laid off, whether continuously or intermittently, he shall be paid by the employer for all days during
which he is so laid off, except for such weekly holidays as any intervene, compensation which shall be equal to
fifty percent of the total of the basic wages an dearness allowance that would have been payable to him had he
not been so laid off:
Provided that if during any period of twelve months, a workman is so laid-off for more than forty five
days no such compensation shall be payable I respect of any period of the lay-off after the expiry of the first
forty-five days, if there is an agreement to that effect between the workman and the employer.
Provided further that it shall be lawful for the employer in any case falling within the forgoing proviso
to retrench the workman in accordance with the provisions contained in section 25 F at any time after the expiry
of the first forty five days of the lay-off and which he does so, any compensation paid to the set off against the
compensation payable for retrenchment.
Explanation: “Badli workman” means a workman who is employed in an industrial establishment in the
place of another workman whose name is borne on the muster rolls of the establishment, but shall ceased to be
regarded as such for the purposes of this section, if he has completed one year of continuous service in the
establishment.
Workmen not entitled to compensation in certain cases.
25E. No compensation shall be paid to a workman who has been laid off--
(i) if he refuse to accept any alternative employment I the same establishment from which he has been laid off, or
in any other establishment belonging to the same employer situate in the same town or village or situate within a
radius of five miles from the establishment to which he belongs, if , in the opinion of the employer, such
alternative employment does not call for any special skill or previous experience and can be done by the
workman provided that the wages which would normally have been paid to the workman are offered for the
alternative employment also;
(ii) if he does not present himself for work at the establishment at the appointed time during normal working
hours at least one a day;
(iii) if such laying off is due to a strike or slowing-down of production on the part of workmen in another part of
the establishment.

Page 17
Q.2- Define strike and discuss the essential requirements of a legal strike with the help of decided cases
under the Industrial Dispute Act 1947. (2022, 2023)
Ans. Strike is collective stoppage of work by workmen undertaken in order to bring pressure upon those who
depend on the sale or use of the products of word. Ludwig Teller in his book, “Labour Disputes and Collective
Bargaining” opines that “the word ‘Strike’ in its broad significance has reference to a dispute opines that “the
word ‘Strike’ in its broad significance has reference to a dispute between an employer and his workers, in the
course of which there is a concerted suspension of employment. Because it is an expensive weapon the strike is
generally labour’s last resort in connection with industrial controversies.”
Section 22. Prohibition of Strikes and lock-outs—Section 22 of the Act deals with the prohibition of strikes
and lock-outs. This section applies to the strikes or lock-outs in industries carrying on public utility service.
Strike or lock out in this section is not absolutely prohibited but certain requirements are to be fulfilled by the
workmen before resorting to strike or by the employers before locking out the place of business. Conditions laid
down in Section 22 (1) are to be fulfilled in case of strike in any public utility service and conditions as laid
down in Section 22 (2) are to be fulfilled in case of any lock-out by the employer carrying or any public utility
service. The intention of the legislature in laying down thee conditions was to provide sufficient safeguards
against a sudden strike or lock-out in public utility services lest it would result in great in convenience not only
to the other party to the dispute but to the general public and the society.
Section 22 (1) provides that no person employed in public utility service shall go on strike in breach of contract:
(a) Without giving to the employer notice of the strike within six weeks before striking; or
(b) Within fourteen days of giving such notice; or
(c) Before the expiry of the date of strike specified in any such notice as aforesaid; or
(d) During the pendency of any conciliation proceeding before a Conciliation Officer and seven days after
the conclusion of such proceedings.
It is to be noted that these provisions do not prohibit the workmen from going on strike but require them
to fulfill the conditions before going on strike. Further these provisions apply to a public utility service only and
not to a non-public utility service.
Notice of strike within six weeks before striking is not necessary where there is already a lock-out in
existence. Notice may be given by the Trade Union or representatives of the workmen elected to do so. A notice
of strike shall not be effective after 6 weeks from the date it is given. So, the strike must be commenced within
than period.
Section 22 (2) lays down that no employer carrying on any public utility service shall lock-out any of his
workmen—
(a) Without giving them notice of lock-out as hereinafter provided with six weeks before locking out; or
(b) Within fourteen days of giving such notice; or
(c) Before the expiry of the date of lock-out specified in any such notice as aforesaid; or
(d) During the pendency of any conciliation proceeding before a Conciliation Officer and seven days
after the conclusion of such proceedings.
Section 22 (3) provides that the notice of strike or lock-out as provided by sub-sections (1) and (2) may
in certain cases be dispensed with
1. No notice or strike shall be necessary where there is already in existence a lock-out in the public
utility service concerned.
2. No notice of lock-out shall be necessary where there is already in existence a strike in the public
utility service concerned.
The employer shall send intimation of strike or lock-out on the day on which it is declared to the
specified authority. The authority to whom the above intimation is required to be sent shall be specified by the
Appropriate Government either generally or for a particular area or for a particular class of public utility
services. Sub-Section (3) is in the nature of an exception of sub-sections (1) and (2) of Section 22.
Page 18
 Section 22 (4) says that the notice of strike shall be given by such number of persons to such person
or persons in such manner as may be prescribed.
Section 22 (5) provides that the notice of lock-out shall be given in such manner as may be
prescribed.
Section 22 (6) deals with the intimation of notices given under sub-section (1) and (2) to specified
authorities. If on any day an employer receives from any person employed by him any such notice as is referred
to in sub-section (1), he shall within five days report to the Appropriate Government or to such authority as that
Government may prescribe, the number of such notices received on that day. Similarly, if an employer gives any
notice as is referred to in sub-section (2) to any person employed by him, he shall report this fact within five
days to the Appropriate Government or to such authority as the Government may prescribe.
Prohibition of Strike—Where a strike has commenced during the pendency of conciliation
proceedings, and the workmen, pleaded that the strike was provoked by the employer, it was held that the fact
that the strike or lock-out was provoked by the opposite party will not absolve the person, going on strike or
declaring lock out-of the duty of complying with the requirements of Section 22 and 23 of the Act.
The words ‘no person’ appearing in this sub-section refer to workmen because no one other than a
workman is likely to go on strike in an industry. It must further be proved that the workmen were employed in an
industry which was a public utility service within the meaning of Section 2 (n). A company was running three
units namely (i) Cotton Textile weaving unit, (ii) Silk Unit, and (iii) Art silk products manufacturing unit. The
Cotton Textile industry was declared a public utility service by the Appropriate Government. About 230
workmen, working in the silk unit went on strike. The company did not show that the concerned workmen, at the
time of strike or prior to that, had ever worked in cotton weaving mill. There was no evidence to the effect that
the workmen under their terms and employment were required to work in the cotton ill or silk mill as required.
No work in the Cotton textile section was ever assigned to any of the concerned workmen. On the basis of the
above evidence it could not be held that the concerned workmen were employed at the time of strike in public
utility service’ within the meaning of Section 2 (n) and for the purpose of Section 22 of the Act. It was for the
employer company to prove by clear and cogent evidence that the workmen under the conditions of service
could be asked to work in the cotton weaving mill when required.
The expression “in breach of the contract” means breach of contract of service of employment whether
the contract is express or implied. There can be no contract not to go on strike, and even if such a contract exists
it cannot from a part of the valid contract of service. Contract of employment implies to work according to the
rules of the contract in which the workman is employed. Breach of contract does not mean breach of a condition
of service.
Breach of provisions of Section 22 or 23 of the Act attracts penal liability under Section 26 of the Act.
Therefore, in order to hold a person liable two things must be proved by the prosecution:
(i) That the strike took place in a concern which is a public utility service within the meaning of
Section 2 (n) of the Act, and
(ii) That the strike was in breach of contract of service of the striking workmen.
Meaning of the terms “within six weeks before striking” and “within fourteen days of giving such
notice”.—Taking the two provisions together it means that a person employed in a public utility service may go
on strike on giving to the employer a notice of strike provided:
(i) The strike takes place within 6 weeks of the giving of notice; and
(ii) 14 days have expired after such notice.
Thus strike can take place only when 14 days have passed but before 6 weeks have expired after giving
such notice. This minimum period of fourteen days after notice within which workmen are prohibited to go on
strike is prescribed with a view to give some time to the employer to look into the charter of demands of the
workmen and also to give time to the Labour Department of the Government to intervene so as to avoid strike by
finding out some compromise formula. Neither the employee is restrained from going on strike nor the employer
is restrained from locking out the industry but some minimum conditions before striking or locking out are

Page 19
required to be fulfilled, otherwise the stoppage of work in a public utility concern may result in inconvenience to
the society. Therefore these safeguards were felt necessary to be provided by the Legislature.
During the pendency of conciliation proceedings—This expression is used in Section 22 (1) (d), and
Section 22 (2) (d). A conciliation proceeding means a proceeding before a Conciliation Officer. Where a
conciliation proceeding was pending and one the Unions of the workmen was a party to it, it was held by the
Supreme Court that the settlement according to Section 18 (3) will bind not only those workmen who are
members of this Union but to all workmen working in the establishment. Therefore, if the proceeding relates to a
matter concerning all the employees its pendency would be a bar against all the employees.
Section 23. General prohibition of strikes and lock-outs—The prohibition against strikes and lock-
outs contained in Section 23 is general in nature. It applies to both public utility as well as non-public utility
establishments. A strike in breach of contract by workmen and lock-out by the employer is prohibited in the
following cases:
(i) during the pendency of conciliation proceedings before a Board and seven days after the conclusion of
such proceedings;
(ii) during the pendency of proceedings before a Labour Court, Tribunal or National Tribunal, and two
months after the conclusion of such proceedings;
(iii) during the pendency of arbitration proceedings before an arbitrator and two months after the
conclusion of such proceedings, where a notification has been issued under sub-Section (3-A) of Section 10-A,
or
(iv) During any period in which a settlement or award is in operation in respect of the matters
covered by such settlement or award.
Section 22 and 23 compared—(i) Section 22 applies to public utility concerns only, Section 23 is
applicable to both public utility as well as non-public utility concerns. (ii) Section 23 does not prohibit strike or
lock-out during the pendency of conciliation proceeding before a Conciliation Officer, Section 22 does so, (iii)
Under Section 22 notice of strike or lock-out is necessary, under Section 23 no such notice is required, (iv) Both
Sections 22 and 23 are applicable to public utility service, but Section 23 applies to non-public utility services
only. Section 22 is not applicable to non-public utility services. Therefore in case of strike or lock-out in a public
utility service prohibitions contained in Section 22 as well as Section 23 apply. As no notice in case of a non-
public utility service is necessary, a sudden strike is not prohibited under this Act in such concerns.
Q.4- What Are The Provisions Of Industriyal Dispute Act 1947 Relating to retrenchment ?(2022, 2023)
ANS- The Industrial Dispute Act, 1947, was enacted to solve industrial conflicts and maintain peace between
employers and employees. Retrenchment is one of the important factors relating to industrial disputes.
This Act helps in negotiating and resolving conflicts in the workplace. It was formulated to protect
employees from exploitation by employers. It was implemented for retrenching the workers and the
employees due to financial and business factors. Retrenchment is the process of letting go of employees
by employers, not due to conflicts taking place but for economic reasons. The employers are retrenched
only after prior permission from the government.
Meaning of retrenchment
The meaning of retrenchment is to terminate employees or workmen by the employer for economic reasons. This
termination of their services is not done as a punishment or disciplinary action but on the ground of
surplus labour or the financial position of the business or company. This removal or discharge of a
worker from work by the employer is known as retrenchment. It denotes the end of the employer-
employee relationship.
Definition of retrenchment
Retrenchment is defined in Section 2(oo) of the Industrial Dispute Act, 1947. According to the definition,
retrenchment means the termination of the service of a workman by an employer for any reason

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 whatsoever, other than as a punishment inflicted by way of disciplinary action’. There are certain factors
that do not fall under the definition of retrenchment, which are as follows:
If the workman or employee voluntarily retires.
If the workman or employee retires after reaching the age of superannuation because of a provision of an
agreement relating to superannuation that was made between the employer and the employee at the time
of his employment.
If the termination of employment of the workman or employee took place due to the non-renewal of the
employment agreement.
If the termination of employment occurs due to the continuous ill-health of the workman or employee.
Therefore, retrenchment is considered an employee’s end of service due to financial or business constraints,
restructuring of the company, advancements of technologies, downsizing, discontinuation of a specific
unit, and so on.
Object of retrenchment in Labour Law
The main object of retrenchment is to terminate employees when an establishment faces financial constraints and
is forced to downsize its number of employees. The companies retrench the employees due to the surplus
labour and to cut down on the expenditure on human resources. The purpose of retrenchment is to:
reduce the outgoing money, or
cutting down the expenditure, or
attempting to become more financially solvent.
Retrenchment also takes place when an industry faces difficulties paying the wages of its employees. During that
time, they decide to remove the employees from their services.
Requirements for a valid retrenchment in Labour Law
The requirements of valid retrenchment in labour law are mentioned in Section 25F of the Industrial Dispute
Act, 1947. These conditions are applicable only when the employee has completed one year of his service
on the job. The prerequisites for valid retrenchment in labour law are as follows:
Notice to the employees: Before retrenching the employees from their services, it is necessary to issue a written
notice at least one month before the retrenchment comes into force. The notice must contain the reason
for retrenchment. The employees can be removed only after notice has been provided to them and not
before that.
No requirement of notice if an agreement already specifies the date of termination: In case, there exists an
agreement that already mentions the date of termination of employment for the employees, it is not
required to give notice to them before retrenchment from their services.
Compensation for retrenchment: In case, the employer fails to send the retrenchment notice to the employees, he
will be liable to pay compensation to the employees for this failure. The compensation should be given
on the basis that it is equal to fifteen days’ earnings for each year of continuous employment, or any
portion of it longer than six months.
Notice to be served on the appropriate authority: Before retrenching the employees from their jobs, it is
necessary to notify the appropriate government or authority. The notification must be served in the
prescribed manner, as stated in the official gazette.
Adherence to notice regulations: The notice that has been provided to the employees must be in accordance with
the provisions of Rule 76 of the Industrial Disputes (Central) Rules, 1957, as it governs the notice of
retrenchment in Labour Law.

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While retrenching the employees from their services, the employer must act within the limitations imposed by
the law, which are as follows:
The intention should be bona fide.
The employees must not be victimised.
The law in force should not be violated by the employer.

Procedure for retrenching employees

The procedure for retrenching employees from their services is based on the concepts of ‘first come, last go’ and
‘last come, first go’. This principle is mentioned in Section 25G of the Industrial Disputes Act, 1947. There are
certain factors based on which the employee can seek procedural protection, which are as follows:

 Prescribed qualification: An employee who wants to seek protection must have the appropriate
qualification as prescribed in Section 2(s) of the Act.

 Citizenship: The employee needs to be a citizen of India. Indian citizenship is an important factor.

 Employment of the employees in an industry: The employee must be an employee of an industry.

In other words, he must be employed in an establishment in accordance with the provisions of Section
2(j) of the Act.

 Specific category of workforce: The employee needs to be a member of a particular workforce in an

establishment.

 Non-existence of a retrenchment contract: The employee who wants to seek protection under
Section 25G must not have a prior retrenchment agreement with the employer of that industry.
If the above conditions are satisfied, the employee will get procedural protection under this section of the Act.

Q.4- Discuss the appointment, powers and functions of certifying officer under Industrial Employment
standing order Act 1946. Where does an appeal lie against the order of certifying officer?

Ans. Sec. 2 (c) Certifying officer:- The following are said to be certifying officers under this Act (1) A labour
commissioner or (2) A regional Labour commissioner or any other officer appointed by the appropriate govt. by
notification in the official gazette to perform all or and of the functions of a certifying officer under .
Submission of draft standing orders.
(1) Within six months from the date on which this Act becomes applicable to an industrial establishment, the
employer shall submit to the Certifying Officer five copies of the draft standing orders proposed by him
for adopting in his industrial establishment.
(2) Provision shall be made in such draft for every matter set out in the schedule which may be applicable to
the industrial establishment, and where model standing orders have been prescribed, shall be, so far as is
practicable, conformity with such model.
(3) The draft standing orders submitted under this section shall be accompanied by a statement giving
prescribed particulars of the workmen employed in the industrial establishment including the name of the
trade union, if any to which they belong.
(4) Subject to such conditions as may be prescribed, a group of employers is similar industrial establishments
may submit a joint draft of standing orders under this section.
Conditions for certification of standing orders.

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 Standing orders shall be certifiable under this Act if—
(a) Provision is made therein for every matter set out in the Schedule which is applicable to the industrial
establishment, and
(b) The standing orders are otherwise in conformity with the provisions of this Act;
and it [shall be the function] of the Certifying Officer or appellate authority to adjudicate upon the fairness or
reasonableness of the provisions of any standing orders.
Certification of standing orders.
(1) On receipt of the draft under section3, the Certifying Officer shall forward a copy thereof to the trade
union, if any, of the workmen, or where there is no such trade union, to the workmen in such manner as
may be prescribed, together with a notice in the prescribed form requiring objections, if any, which the
workmen may desire to make to the draft standing orders to be submitted to him within fifteen days from
the receipt of the notice.
(2) After giving the employer and the trade union or such other representatives of the workmen as may be
prescribed an opportunity of being heard, the Certifying Officer shall decide whether or not any
modification of or addition to the draft submitted by the employer is necessary to render the draft
Standing Orders certifiable under this Act, and shall make an order in writing accordingly.
(3) The Certifying Officer shall thereupon certify the draft standing orders after making any modification
therein which his order under sub-section (2) may require, and shall within seven days thereafter send
copies of the certified standing orders authenticated in the prescribed manner and of his order under sub-
section (2) to the employer and to the trade union or other prescribed representatives of the workmen.
Appeals.
(1) Any employer, workman, trade union or other prescribed representatives of the workmen] aggrieved by the
order of the Certifying Officer which copies are sent under sub-section (3) of that section, appeal to the
appellate authority, and the appellate authority, whose decision shall be final, shall by order in writing
confirm the standing orders either in the form certified by the Certifying Officer or after amending the said
standing orders by the making such modifications thereof or additions thereto as it thinks necessary to render
the standing orders certifiable under this Act.
(2) The appellate authority shall, within seven days of its order under sub-section (1), send copies thereof of the
Certifying Officer, to the employer and to the trade union or other prescribed representatives of the workmen,
accompanied, unless it has confirmed without amendment the standing orders as certified by the Certifying
Officer, by copies of the standing orders as certified by it and authenticated in the prescribed manner.
Certifying officers and appellate authorities to have powers of Civil Court.
(1) Every Certifying Officer and appellate authority shall have all the powers of a Civil Court for the
purposes of receiving evidence, administering oaths, enforcing the attendance of witnesses, and
compelling the discovery and production of documents, and shall be deemed to be a Civil Court within
the meaning of section 345 and 346 of Code of Criminal Procedure, 1973 (2 of 1974)
(2) Clerical or arithmetical mistakes in any order passed by a Certifying Officer or appellate authority, or
errors arising therein from any accidental slip or omission may, at any time, be corrected by that Officer
or authority or the successor in office of such Officer or authority, as the case may be.

Q.4- What Is Standing Order? Discuss The Important Provisions Of Industrial Employment (Standing
Order) Act, 1947 ?
ANS- What are Standing Orders?

Standing Orders means the rules related to Classification of workmen, working hours, Attendance,
Conditions and Procedure for obtaining Leave and the authority who may grant leave, Requirement to enter
premises by certain gates, Rights and liabilities of the employer and workmen arising from Closing and
Page 23
 temporary stoppages of work, Termination and Suspension or dismissal of the workmen, Means of redress
for workmen against unfair treatment or wrongful exactions by the employer and Any other matter relating to
industrial establishments in coal mines as specified in the Schedule of the Act.

What are the Objectives of the Standing Orders?

1. To bring uniformity in terms and conditions of the employments.
2. To foster harmonious relations between employers and employees.
3. To make the conditions of service known to the workmen
4. To regulate the conditions of recruitment, discharge, disciplinary action, leave, holidays, etc. of the
workers employed in industrial establishments.
To Whom the Industrial Employment (Standing Orders) Act is applicable?

The Act is extends to the whole of India. Further, every industrial establishment wherein one hundred or more
workmen are employed, or were employed on any day of the preceding twelve months will come under
Industrial Employment (Standing Orders) Act.

To whom the Industrial Employment (Standing Orders) Act is not applicable?

This Act is not applicable to those industrial establishments in which workmen comes under or to whom the
below mention Rules or Regulations applies:
1. Fundamental and Supplementary Rules;
2. Civil Services (Classification, Control and Appeal) Rules;
3. Civil Services (Temporary Service) Rules;
4. Revised Leave Rules;
5. Civil Service Regulations;
6. Civilians in Defense Service (Classification, Control and Appeal) Rules;
7. Indian Railway Establishment Code or any other rules;
8. Regulations that may be notified in this behalf by the appropriate Government in the Official Gazette.
What is the procedure for submission of draft Standing Orders?
1. Within six months from the date on which this Act becomes applicable to an industrial establishment,
employer shall submit to the Certifying Officer five copies of the draft standing orders proposed by him
for adoption in Form I. It has to be accompanied by a statement giving prescribed particulars of the
workmen employed including the name of the trade union, if any.
2. The Draft Standing Order shave to cover every matter set out in the Schedule to the Act and more or less
confirm to the Model Standing orders as prescribed by the Government.
Certification of Standing Orders.

On receipt of the draft Standing Orders, the Certifying Officer shall:

1. Forward a copy to the workers’ trade union and if there is no such trade union, to the representative of the
workmen along with the notice in Form II requiring their comments and objections, if any, which the
workmen may desire to make to the draft standing orders to be submitted to him within fifteen days from
the receipt of the notice.
2. The Certifying Officer shall certify the draft standing orders, after making any modifications, and shall
within seven days thereafter send copies of the certified standing orders authenticated along with his to the
employer and to the trade union or other representatives of the workmen.

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 3. Standing orders shall come into operation on the expiry of thirty days (30 days) from the date on which
authenticated copies are sent.
Duration and modification of Standing Orders:
1. Certified Standing Orders shall not be modified until the expiry of six months from the date on which the
standing orders came into operation.
2. An employer or workman or a trade union or other representative body of the workmen may apply to the
Certifying Officer to have the standing orders modified along with the application accompanied by the
five copies of the modified standing orders and a copy of the agreement between employer and workmen.
UNIT-4
Q.1- Discuss and explain the terms ‘factory and manufacturing process’ under the factories Act 1948, can
an open land be treated as factory explain with decided case Law.
Ans.-“Factory” means any premises including the precincts thereof—whereon ten or more workers are working
on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on
with the aid of power of is ordinarily so carried on; or
Whereon twenty or more workers are working, or were working on any of the preceding twelve months,
and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so
carried on.
Factory does not include a mine subject to the operation of the Mines Act, 1952 or a mobile unit
belonging to the armed forces of the Union, a railway running shed or hotel, restaurant or eating place.
Explanation I –For computing the number of workers for the purposes of this clause all the workers in
different groups and relays in a day shall be taken into account.
Explanation II- For the purposes of this clause, the mere fact that an Electronic Data Processing Unit or a
Computer Unit is installed in any premises or part thereof, shall not be construed to make it a factory if no
manufacturing process is being carried on in such premises or part thereof.
The phrase “premises including precincts” means “both premises with and premises without precincts”.
Where premises is a building it would include precincts also, but where premises are Lands, they would not have
precincts. Thus both buildings and lands are covered by the above expression. It was held in State of Bombay v.
Ardeshir Hormosji Bhiwandiwala, that lands in which the process of manufacturing salt is carried on is a
factory.
There was a slate quarry extending over a large open space of about 300 acres. The work was carried
onin the open air. Shed was the only building. In the quarry more than 50 persons were employed for splitting
the rock inot slates and shaping them for sale. It was held that the quarry was not a factory for, if a place in
which a manufacturing process is carried on is an open space, it cannot constitute a factory. In Pragnarain v.
Crown, it was held that factory means premises wherein anything is done towards the making or finishing of an
article upto the stage when it is ready to be sold or is in a suitable condition to be put in the market.
Prcecicts means a space enclosed by walls or fences. A place solely used for some purposes other than
the manufacturing process carried on in a factory or a workshop does not constitute a factory.
“Manufacturing process” means any process for—
(i) Making, altering, reparing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up,
demolishing, or otherwise treting or adapting any article or substance with a view to use, sale,
trasport, delivery or disposal; or
(ii) Pumping oil, water, sewage or any other substnace or
(iii) Generating transforming power, or transmitting power; or

Page 25
 (iv) Composing types for printing, printing by letter press, lithography, photogravure or other similar
porcess or book-binding; or
(v) Constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels; or
(vi) Preserving or storing any article in cold storage.
It was held in State of Bomaby v. Ali Saheb Kashim Tamboli, that bidi making is a manufacturing
process. The process of transforming and transmitting electrical energy are manufacturing process.
Manufacturing process is carried on in sub-sections of Electricity Board within the meaning to Section 2(k)(iii)
through there is no transmission of electrical energy. In Ardeshir v. Bomaby State salt was manufactured from
sea water applying different process which shows that it is due to the human agency, aided by natural forces, that
salt is extracted from sea water. The process carried out in the salt works comes within the definition of
‘manufacturing process’ in Section 2(k) in as much as salt can be said to have been manufactured from sea water
by the process of treatment and adaptation of sea water into salt.
In the matter of K.V.V. Sharma conversion of raw films into a finished product was held to be a
manufacturing process. Similarly in New Taj Mahal Café Ltd. Manglore v. Inspector of Factories, Mangalore,
the preparation of foodstuffs and other eatables in the kitchen of a restaurant and use of a refrigerator for treating
or adapting any article with a view to its sale were also held to be manufacturing process.
In Gateway Auto Services v. Regional Director E.S.I.C., it was held that in the lubricating services of
mother vehicles, power is used to drive compressors which supply compressed air for operating service hoists
and pressure and oil spray guns. The fact that pump is installed on the petoral tank underground and with the aid
of power, the petrol is lifted and poured into the tanks of vehicles, makes the activity manufacturing process
within the meaning of Section 2(k) of the Factories Act.

Q.2- Which person has ultimate control over the affairs of the factory? Discuss regarding provisions of
notice to Chief Inspector and general duties of the occupier under the Factories Act, 1948. Refer to
decided cases.
Ans. “Occupier”—Occupier of a factory means the person who has ultimate control over the affairs of the
factory.
“Provided that—
(i) in the case of a firm or other association of individuals, any of the individual parents or
Members thereof shall be deemed to be the occupier;
(ii) in the case of a company, any one of the directors shall be deemed to be the occupier;
(iii) in the case of a factory owned or controlled by the Central Government or any State Government, or any
local authority, the person or persons appointed to manage the affairs of the factory by the Central
Government, the State Government or the local authority, as the case may be, shall be deemed to be the
occupier:
“Provided further that in the case of a ship which is being repaired, or on which maintenance work is being
carried out, in a dry dock which is available for hire,--
(1) the owner of the dock shall be deemed to be the occupier for the purposes of any matter provided by or
under—
(a) Section 6, Section 7, Section 7-A, Section 7-B, Section 11 or Section 12;
(b) Section 17, in so far as it relates to the providing and maintenance of sufficient and suitable lighting
in or around the dock;
(c) Section 18, Section 19, Section 42, Section 46, Section 47 or Section 49, in relation to the workers
employed on such repair or maintenance;

Page 26
 (2) the owner of the ship or his agent or master or other officer officer-in-charge of the ship or any person
who contracts with such owner, agent or master or other officer-in-charge to carry out the repair or maintenance
work shall be deemed to be the occupier for the purposes of any matter provided for by or under Section 14,
Section 15, Section 16 or Section 17 (save as otherwise provided in this proviso) or Chapter IV (except Section
27) or Section 43 Section 44 or Section 45, Chapter VI, Chapter VII, Chapter VIII or Chapter IX or Section 108,
Section 109 or Section 110, in relation to—
(a) the workers employed directly by him, or by or through any agency; and
(b) the machinery, plans or premises in use of the purpose of carrying out such repair or maintenance
work by such owner, agent, master or other officer-in-charge or person.
The expression ‘occupier’ as defined in Section 2 (n) Factories act is not to be equated with ‘owner’. No
doubt the ultimate control over a factory must necessarily be with an owner unless the owner has completely
transferred that control to another person. Whether that was done in a particular case is a question of fact.
Therefore, the manager of a factory who claims to be an occupier of the factory must lay before the Chief
Inspector of the Factories the necessary material for showing that the company has in some manner transferred
the entire control over the factory to him. In the absence of such material an application for renewal of licence
signed by the manager is not in proper from and cannot be acted upon. Where premises are given over to
partnership firm in return for periodic payment and the owner of the premises has not control over them, he
cannot be said to be an ‘occupier’.
It was held in Kirloskar Pneumatic Co. Ltd. v. V.A. More & others, that an occupier need not necessarily
be a Director of the Company. Any person who had ultimate control over the affairs of factory can be nominated
as occupier.
It was held in ION Exchange India Ltd. v. Deputy Chief Inspector of Factories, Salem, that owner can
nominate any person to be in ultimate control over the affairs of a factory. If no one else has been nominated to
be in ultimate control over the affairs of the Company, Director of a company or any partner of partnership are
deemed to be the occupier.
Q.3- Discuss The Provisions related to welfare, Health And Safety Under The Factory Act.1948.
ANS- Health Measures and Safety Provisions in Factories Act, 1948
Health is an important part of everyone’s life. Being healthy does not only mean being ‘disease free’. It includes
physical, social, and mental health too. Maintaining sound health is undoubtedly a concern for everyone but it is
more necessary for those who are constantly under threat of health hazards. These are the factory workers. They are
constantly under the danger of health risks. Hence, it becomes necessary to concentrate on the health of the workers
in the factories as well as people in society. In order to standardize the health measures and safety provisions, the
Factories Act, 1948 lays down certain ‘health measures’.

Health Measures and Safety Provisions as per Factories Act, 1948

 Section 11: Cleanliness in every factory

 Section 12: Disposal of effluents and wastes
 Section 13: Ventilation and Temperature
 Section 14: Dust and Fume
 Section 15: Artificial Humidification
 Section 16: Overcrowding
 Section 17: Lighting
 Section 18: Drinking Water

Section 11: Cleanliness in Every Factory

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Under Section 11, every factory need to keep itself clean and free from effluvia arising from any drain, privy or
other nuisance, and in particular-

 Accumulation of dirt and refuse should be removed daily by any effective method from the floors of
workrooms and from staircases and passages and disposed of in a suitable and efficient manner.
 In case the floor is subject to become wet during the working time, then they should take proper drainage
process or steps.
 Clean the worker’s floor every week with proper disinfectant or any other effective method of cleaning.
 Paint or repaint walls, ceilings, and staircases of the factory once in every 5 years.
 Repaint the walls once in every 3 years in case of washable water paints.
 Paint and varnish all doors and window-frames and other wooden or metallic framework and shutters at least
once in a period of 5 years.

Section 12: Disposal of Effluents and Wastes

Under this section following things should be considered:
(a) It is necessary for the factories to arrange proper and effective waste treatment and its disposal.
(b) The State Government may make rules prescribing the arrangements for the disposal and treatment of waste and
effluents.

Section 13: Ventilation and Temperature

This section states:

 Effective and suitable provisions should be made in every factory for securing and maintaining in every
workroom proper ventilation by circulation of fresh air. It also involves providing an adequate temperature at
the workplace. For this, they should select the material of the walls accordingly.
 The State Government may prescribe a standard of adequate ventilation and reasonable temperature for any
factory or class or description of factories.
 Lastly, if it appears to the Chief Inspector that excessively high temperature in any factory can be reduced by
the adoption of suitable measures, he can order them to use such a method.

Section 14: Dust and Fume

This section states that:

 If dust and fume release in the manufacturing process of a factory then they should take effective measures to
prevent its inhalation and accumulation in the workplace. For this, they should use proper exhaust appliances
in the workplace.
 In any factory, no stationary internal combustion engine shall be operated unless the exhaust is conducted
into the open air.

Section 15: Artificial Humidification

1. In respect of all factories in which the humidity of the air artificially increases, the State Government may make
rules,-

 Firstly, prescribing standards of humidification;

 Secondly, regulating the methods used for artificially increasing the humidity of the air;
 Directing tests for determining the humidity of the air for correct carrying out and recording.
 Lastly, prescribing methods for securing adequate ventilation and cooling of the air in the workrooms.

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2. In any factory in which the humidity of the air artificially increases, they should purify the water (drinking water)
before the supply.

Section 16: Overcrowding

This section states:

 Firstly, no room in any factory shall be overcrowded to an extent injurious to the health of the workers
employed therein.
 Secondly, a factory built after the commencement of this Act at least 14.2 cubic meters of space for every
worker employed therein, and for the purposes of this subsection, no account shall be taken of any space
which is more than 4.2 meters above the level of the floor of the room.
 If the Chief Inspector by order in writing, may or may not post a notice specifying the maximum number of
workers who may be employed in the room.

Section 17: Lighting

This section states:
Firstly, There should be proper lighting in all the places of the factory from where the workers of the factory pass.
In every factory, effective provision shall, so far as is practicable, be made for the prevention of-

 glare, either directly from a source of light or by reflection from a smooth or polished surface;
 the formation of shadows to such an extent as to cause eye-strain or the risk of accident to any worker.

Section 18: Drinking Water

This section states that in every factory, there should be proper arrangements for a sufficient supply of wholesome
drinking water and shall be legibly marked as “drinking water”.

Section 19: Latrines and Urinals

This section states that every factory should make arrangements of latrine and urinals for the employees and the
rules are laid down by the State Government in this behalf.

Section 20: Spittoons

There should be a sufficient number of spittoons in the factories for the employees and they should be in clean and
hygienic condition according to this law

Provisions related to Welfare (Under Factories Act, 1948)

Section 42: Washing facilities

This section states that every factory should:
(a) Firstly, provide and maintain adequate and suitable facilities for washing for all the workers in the factory
(b) Secondly, provide separate and adequately screened facilities separately for men and women.
(c) Thirdly, make accessible all the facilities to all the workers

Section 43: Facilities for storing and drying clothes

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This section contests some powers with the State Government. It states that the State Government has the powers to
direct the factories regarding the place of storing the clothes of the workers.
Moreover, they can also direct them regarding the manner of drying the clothes of the workers. It applies to the
situation when workers are not wearing their working clothes.

Section 44: Facilities for sitting

There are various kinds of jobs in a factory. Some of them require the workers to stand for a longer period of time.
There is no doubt that human power to stand has limits. Looking at such case, this section states:
(a) Firstly, the factory should provide suitable arrangements for sitting for the workers. This is important because
whenever the worker gets some free time, he/she may be able to take some rest by sitting. This will also enhance
their efficiency.
(b) Secondly, if the Chief Inspector finds that any worker can do his work more efficiently while sitting, then he can
direct the factory officials to arrange sitting arrangements for him.

Special Point:

Section 45: First-aid-appliance

Injuries are somehow an inescapable part of life for the workers especially working in the factories. Looking at the
safety and welfare of the workers this section provides that:
(a) The factory should provide and maintain proper first-aid boxes at every workroom. Under this Act, the number
of boxes should not be less than one for every 100 or 50 workers. Moreover, the first-aid boxes should have all the
relevant contents according to the Act.
(b) There should be nothing except the prescribed contents in a first-aid box.
(c) Each box should be under control of a first-aid in-charge who will handle all its requirements and its utilization.
The in-charge should be an expert in First-aid field.
(d) In case the number of workers exceeds 500, then the factory should arrange an ‘Ambulance Room’ with the
availability of all necessary equipment.

Section 46: Canteens

This section states:
(a) Every factory where the number of workers exceeds 250, then the State Government may direct the factory
owners to provide and maintain a canteen for the workers.
(b) Moreover, the government may lay down certain conditions in the construction of canteen, like:
1. the standard in respect of construction, accommodation, furniture and other equipment of the canteen
2. the foodstuffs to be served therein
3. the date by which such canteen shall be provided
4. the constitution of a managing committee for the canteen
5. the delegation to Chief Inspector subject to such conditions as may be prescribed

Section 47: Shelters, rest-rooms, and lunch-rooms

This section states:
(a) If the number of workers in a factory crosses 150, then the factory owners should construct and maintain shelters,
rest-rooms and lunch rooms for the workers. It allows the workers to eat the food which they bring along with them.

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Special Point:
(b) The shelters, rest-rooms and lunch rooms should be properly ventilated and lighted.
(c) The State Government may prescribe the standards, in respect of construction accommodation, furniture, and
other equipment.

Section 48: Creches

Due to workforce diversity nowadays, women’s participation is increasing in all the sectors especially the industrial
sector.
One of the factors that stop women to work in factories or any other sector is lack of care for their children during
their working hours. In order to solve this problem and increase the engagement of women in factories, section 48
states:
(a) Where numbers of women workers exceed 30, then the factory should arrange a special room for the
worker’s kids who are below the age of 6 years.
(b) The room should be properly lighted and ventilated

Q.4. Explain the powers and duties of ‘Inspectors’ under the Factories Act, 1948? (2022)

Section 8. Inspectors.—
1. (1)The State Government may, by notification in the Official Gazette, appoint such persons as possess the
prescribed qualification to be Inspectors for the purposes of this Act and may assign to them such local
limits as it may think fit.(2)The State Government may, by notification in the Official Gazette, appoint any
person to be a Chief Inspector who shall, in addition to the powers conferred on a Chief Inspector under
this Act, exercise the powers of an Inspector throughout the State.(2A)The State Government may, by
notification in the Official Gazette, appoint as many Additional Chief Inspectors, Joint Chief Inspectors
and Deputy Chief Inspectors and as many other officers as it thinks fit to assist the Chief Inspector and to
exercise such of the powers of the Chief Inspector as may be specified in such notification.(2B)Every
Additional Chief Inspector, Joint Chief Inspector, Deputy Chief Inspector and every other officer
appointed under sub-section (2A) shall, in addition to the powers of a Chief Inspector specified in the
notification by which he is appointed, exercise the power of an Inspector throughout the State.(3)No
person shall be appointed under sub-section (1), sub-section (2), sub-section (2A) or sub-section (5) or,
having been so appointed, shall continue to hold office, who is or becomes directly or indirectly interested
in a factory or in any process or business carried on therein or in any patent or machinery connected
therewith.(4)Every District Magistrate shall be an Inspector for his district.(5)The State Government may
also, by notification as aforesaid, appoint such public officers as it thinks fit to be additional Inspectors for
all or any of the purposes of this Act, within such local limits as it may assign to them respectively.(6)In
any area where there are more Inspectors than one the State Government may, by notification as aforesaid,
declare the powers which such Inspectors shall respectively exercise and the Inspector to whom the
prescribed notices are to be sent.(7)Every Chief Inspector, Additional Chief Inspector, Joint Chief
Inspector, Deputy Chief Inspector and every other officer appointed under this section shall be deemed to
be a public servant within the meaning of the Indian Penal Code (45 of 1860), and shall be officially
subordinate to such authority as the State Government may specify in this behalf.

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Section 9. Powers of Inspectors.—
Subject to any rules made in this behalf, an Inspector may, within the local limits for which he is appointed,—
(a)enter, with such assistants, being persons in the service of the Government, or any local or other public
authority, or with an expert as he thinks fit, any place which is used, or which he has reason to believe is used, as
a factory;(b)make examination of the premises, plant, machinery, article or substance;(c)inquire into any
accident or dangerous occurrence, whether resulting in bodily injury, disability or not, and take on the spot or
otherwise statements of any person which he may consider necessary for such inquiry;(d)require the production
of any prescribed register or any other document relating to the factory;(e)seize, or take copies of, any register,
record or other document or any portion thereof as he may consider necessary in respect of any offence under
this Act, which he has reason to believe, has been committed;(f)direct the occupier that any premises or any part
thereof, or anything lying therein, shall be left undisturbed (whether generally or in particular respects) for so
long as is necessary for the purpose of any examination under clause (b);(g)take measurements and photographs
and make such recordings as he considers necessary for the purpose of any examination under clause (b), taking
with him any necessary instrument or equipment;(h)in case of any article or substance found in any premises,
being an article or substance which appears to him as having caused or is likely to cause danger to the health or
safety of the workers, direct it to be dismantled or subject it to any process or test (but not so as to damage or
destroy it unless the same is, in the circumstances necessary, for carrying out the purposes of this Act), and take
possession of any such article or substance or a part thereof, and detain it for so long as is necessary for such
examination;(i)exercise such other powers as may be prescribed. Provided that no person shall be compelled
under this section to answer any question or give any evidence tending to incriminate himself.

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