INTRODUCTION TO INDUSTRIAL RELATIONS

R.V.SUBRAHMANAYAM 30TH AUGUST 2010

WHY STUDY LABOUR LAWS

IGNORANCE OF LAW IS NO EXCUSE EVERY EMPLOYEE OF AN ORGANISATION SHOULD KEEP HIMSELF ABREAST OF HIS RIGHTS AND OBLIGATIONS EVEN ESTABLISHMENTS EMPLOYING SINGLE EMPLOYEE ALSO COME UNDER THE PURVIEW OF LABOUR LAWS THE BEGINNING OF LABOUR LAWS IN INDIA CAN BE TRACED BACK TO 1850 WHEN APPRENTICES ACT WAS PLACED ON STATUTE BOOK FOLLOWED BY FATAL ACCIDENTS ACT 1855 AND THE INDIAN FACTORIES ACT 1881. OVER 100 LABOUR LAWS HAVE BEEN ENACTED BY CENTRAL AND STATE GOVERNMENTS, MANY OF WHICH HAVE BEEN ALMOST TOTALLY MODIFIED OR EVEN REPEALED OR REPLACED.

PLETHORA OF MODERN LABOUR LAWS

WORKMENS COMPENSATION ACT 1923 IS THE OLDEST SOME OF THE IMPORTANT LABOUR LAWS:
TRADE UNIONS ACT 1926 THE PAYMENT OF WAGES ACT 1936 THE INDUSTRIAL EMPLOYMENT AND STANDING ORDERS ACT 1946 THE INDUSTRIAL DISPUTES ACT 1947 THE MINIMUM WAGES ACT 1948 THE FACTORIES ACT 1948 THE EMPLOYEES STATE INSURANCE ACT 1948 THE EMPLOYEES PROVIDENT FUNDS AND MISCELLANEOUS PROVISONS ACT 1952 THE PAYMENT OF BONUS ACT 1965 THE PAYMENT OF GRATUITY ACT 1972

CONSTITUTIONAL POWERS
LABOUR IS A COMMON SUBJECT FOR THE CENTRE AND STATES. ARTICLE 246(4) OF THE CONSTITUTION OF INDIA EMPOWERS THE UNION AND THE STATES JOINTLY TO LEGISLATE ON ISSUES RELATING TO TRADE UNIONS AND ALL CONCERNED LABOUR MATTERS. THE CENTRAL GOVERNMENT ENACTS A LABOUR LAW WHILE ENSURING UNIFORMITY AND PARITY THROUGH OUT THE COUNTRY. THE STATE GOVERNMENTS ARE EMPOWERED TO EITHER ACCEPT A CENTRAL LAW AS IT IS OR AFTER MAKING SUITABLE AMENDMENTS THERE IN OR EVEN ENACT THEIR OWN LAW, CONSIDERING THE TYPICAL CONDITIONS OF LABOUR IN THEIR STATES. STATE GOVERNMENTS ARE GENERALLY ARE THE CHIEF ADMINISTRATIVE AUTHORITY HAVING POWERS TO MAKE RULES AND APPOINT AUTHORITIES FOR CARRYING OUT THE PURPOSES OF THE LEGISLATION.

ESTABLISHMENTS UNDER CONTROL OF UNION GOVERNMENT RAILWAYS MINES OILFIELDS DEFENCE INDUSTRIES INDUSTRIES OF NATIONAL IMPORTANCE NAVAL,MILITARY AND AIRFORCES.

WHO IS A WORKMAN
INDUSTRIAL DISPUTES ACT 1947 (SEC. 2S) WORKMAN MEANS ANY PERSON EMPLOYED IN ANY INDUSTRY( INCLUDNG APPRENTICE )TO DO ANY: MANUAL UNSKILLED SKILLED TECHINICAL OPERATIONAL CLERICAL OR SUPERVISORY WORK FOR HIRE OR REWARD. THE FACTORIES ACT 1948: (SEC. 2(l) WORKER MEANS A PERSON EMPLOYED,DIRECTLY OR BY OR THROUGH ANY AGENCY(INCLUDING A CONTRACTOR) WITH OR WITHOUT KNOWLELDLGE OF THE PRINCIPAL EMPLOYER WHETHER FOR REMUNERATION OR NOT IN ANY MANUFACTURING PROCESS

EXCLUSIONS: (A)AIRFORCE, ARMY AND NAVY (B)POLICE (C) MANGERIAL AND ADMINISTRATAIVE CAPACITY (D) EMPLOYED IN SUPERVISORY CAPACITY DRAWING MORE THAN RS 1600 PER MENSEM.

EXCLUSIONS: ANY MEMBERS OF THE ARMED FORCES OF THE UNION.

INDUSTRY Vs MANUFACTURING PROCESS

THE INDUSTRIAL DISPUTES ACT 1947:
Sec 2(j) defines industry. (a) Systematic activity (b) Cooperation between employer and his workmen (c) For production, supply and distribution of goods or services (d) To satisfy human wants and wishes (not being wants and wishes which are merely religious or spiritual in nature)

THE FACTORIES ACT 1948:

Sec 2(m) defines factory: (i) 10 or more workers are working; were working on any day of the preceding 12 months in any part in which manufacturing process is being carried on with the aid of power or (i) 20 or more workers are working; were working on any day of the preceding 12 months in any part in which manufacturing process is being carried on without the aid of power.

Religious or spiritual in nature is important to note.

THE FACTORIES ACT 1948: Sec 2(k) defines manufacturing process:

(i) Making, altering, repairing,ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing or otherwise treating or adapting any article or substance with a view to is use, sale, transport, delivery or disposal etc.,

IMPORTANT TO NOTE
A PERSON CANNOT BE TERMED AS WORKMAN IN THE ABSENCE OF MASTER AND SERVANT RELATIONSHIP. INDUSTRIAL DISPUTE MEANS DIFFERENCE BETWEEN EMPLOYERS AND EMPLOYERS DIFFERENCE BETWEEN EMPLOLYER AND EMPLOYEES DIFFERENCE BETWEEN EMPLOYEES AND EMPLOYEES INGREDIENTS OF A DISPUTE: CONNECTED WITH THE EMPLOYMENT OR NON-EMPLOYMENT TERMS OF EMPLOYMENT WITH THE CONDITIONS OF LABOUR OR ANY PERSON.

WAGES DEFINITION
INDUSTRIAL DIPUTES ACT 1947:
WAGES MEANS ALL REMUNERATION EXPRESSIBLE IN TERMS OF MONEY PAYBALE TO TO A WORKMAN: WHICH INLUDES: DA, OTHER ALLOWANCES, TRAVELLING CONCESSION, COMMISSION ON SALES OR PROMOTION, VALUE OF HOUSE ACCOMODATION, SUPPLY OF LIGHT, WATER, MEDICAL ATTENDANCE OR OTHER AMENITY OR ANY CONCESSION IN SUPPLY OF FOOD GRAINS ETC.,

MINIMUM WAGES ACT 1948: Sec. 2(h) WAGES MEANS ALL REMUNERATION CAPABLE OF BEING EXPRESSED IN TERMS OF MONEY WHICH INCLUDES HOUSE RENT ALLOWANCE

DOES NOT INCLUDE:

BONUS, CONTRIBUTION TO PROVIDENT FUND OR PENSION FUND AND GRATUITY PAYABLE ON TERMINATION OF SERVICEC.

DOES NOT INCLUDE:

VALUE OF HOUSE ACCOMODATION, SUPPLY OF LIGHT, WATER, MEDICAL ATTENDANCE and Value of any other amenity or service as excluded by a general or speicial order of the appropriate Government. Contribution to PF or any social insurance schemes Travelling allowance or concession Any sum paid to defray special expenses Gratuity