B.A. LL.

B (Semester- V)

LABOUR LAWS- I
(The Industrial Relation Code and The Code on
Wages)

(NOTES)

1
 INDEX
1. Syllabus 3

2. Unit- Wise Demarcation of PYQs 4-5

3. Lecture Plan 6-7

4. Unit –I (Short Notes) 8-59

5. Unit-I (Descriptive Notes) 60-99

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 LL.B. (Integrated) Five Years Degree Course
(Third Year)
V Semester
Paper Code : LB-503
Paper III
Labour Laws-I (The Industrial Relation Code and The Code on Wages)
Unit I: (Lecture 10)
i. Industrial Relation
ii. Industrial Jurisprudence
iii. Labour Welfare
iv. Labour Problem
v. Labour Policy in India
vi. International Labour Organization
vii. Trade Unionism and Collective bargaining-process its merit and demerit
viii. Definitions
ix. Bi-Partite forums
x. Trade Unions (Section 5-27)

Unit II: (Lecture 06)

i. Standing orders (Sections 28-39)
ii. Notice of Changes (Section 40-41)
iii. Voluntary Reference of Disputes to Arbitrations (Section 42)
iv. Mechanism for Resolution of Industrial Disputes (Section 43-61)
v. Strike, Lock-outs, Lay-off (Section 62-65)
vi. Retrenchment and Closure (Sections 65-82)

Unit III: (Lecture 04)

i. Offences and Penalties (Section 85-89)
ii. Definitions and Minimum Wages (Section 2-14)
iii. Payment of Wages (Sections 15-25)
iv. Payment of Bonus (Section 26-41)

Unit IV: (Lecture 04)

i. Payment of Dues, Claims and Audits (Sections 43-50)
ii. Inspector-cum-Facilitator (Section 51)
iii. Offences and Penalties (Section 52-56)
iv. Bar of Suits, Contracting Out, Exemption of Employer from Liabilities from certain
cases (Sections 57,60,63-65)

3
UNIT WISE DEMARCATION OF PYQ’S

Unit I:
a) What do you mean by “Industrial Relation”? Discuss the Indian labour policy explaining
how far it has been successful in resolving relevant labour problems. (2021)

b) Narrate the history and development of Trade Union Movement in India from the
nineteenth century till independence.(2021)

c) Discuss the rights and liabilities of a registered Trade Union under the Trade Unions Act,
1926. How is a political fund different from general fund? (2021& 2022)

d) Discuss the history and development of labour welfare legislation in India during the
twentieth century. Are “Labour Welfare” and “Industrial Growth” contradictory to each
other? (2021)

e) Discuss labour problems and labour policy in India emphasizing legislative provisions.
(2022)

f) Trace the history and development of Trade Union movement in India. Name any two
important Trade Unions of National level.(2022)

Unit II:
a) Discuss “Strike” as a means of collective bargaining process. What are the provisions
relating to prohibition of illegal strikes and lock-outs? What is the difference between
lay-off and retrenchment? (2021)

b) Define “Industrial Dispute” and “Workman” under the Industrial Disputes Act, 1947
citing relevant case-laws. (2021)

c) Discuss the constitution and jurisdiction of a Labour Court under the Industrial Disputes
Act, 1947. How is it different from that of a Labour Tribunal? (2021)

d) Discuss “Strike” as a means of collective bargaining process. What are the provisions
relating to prohibition of illegal strikes and lock-outs? What is the difference between
lay-off and retrenchment? (2021)

e) What is the aim of “Standing Orders” under the Industrial Employment (Standing Orders)
Act, 1946? Discuss the powers and functions at a certifying officer under the above
mentioned Act. (2021)

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 f) Discuss the main provisions of Industrial Employment (Standing orders) Act, 1946. What
is the role of certifying officer under it? (2022)

g) Discuss ‘Strike’ as a means of collective bargaining process. What are the prohibitions
regarding illegal strikes and lockouts. (2022)

h) Write short notes on any two of the following: (2022)

i)Lay-off
ii) Retrenchment
iii) Workman

Unit IV:
a) Explain the powers and duties of ‘Inspectors’ under the Factories Act, 1948 . (2022)

b) Discuss Exemption of Employer from Liabilities from certain cases. (2022)

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 LECTURE RE-PLAN

Unit I: (Lecture 10)

Lecture 1: Industrial Relation

Lecture 2: Industrial Jurisprudence

Lecture 3: Labour Welfare

Lecture 4: Labour Problem

Lecture 5: Labour Policy in India

Lecture 6: International Labour Organization

Lecture 7: Trade Unionism and Collective bargaining-process its merit and demerit

Lecture 8: Definitions

Lecture 9: Bi-Partite forums

Lecture 10: Trade Unions (Section 5-27)

Unit II: (Lecture 06)

Lecture 1: Standing orders (Sections 28-39)

Lecture 2: Notice of Changes (Section 40-41)

Lecture 3: Voluntary Reference of Disputes to Arbitrations (Section 42)

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Lecture 4: Mechanism for Resolution of Industrial Disputes (Section 43-61)

Lecture 5: Strike, Lock-outs, Lay-off (Section 62-65)

Lecture 6: Retrenchment and Closure (Sections 65-82)

Unit III: (Lecture 04)

Lecture 1: Offences and Penalties (Section 85-89)

Lecture 2: Definitions and Minimum Wages (Section 2-14)

Lecture 3: Payment of Wages (Sections 15-25)

Lecture 4: Payment of Bonus (Section 26-41)

Unit IV: (Lecture 04)

Lecture 1: Payment of Dues, Claims and Audits (Sections 43-50)

Lecture 2: Inspector-cum-Facilitator (Section 51)

Lecture 3: Offences and Penalties (Section 52-56)

Lecture 4: Bar of Suits, Contracting Out, Exemption of Employer from Liabilities from certain

cases (Sections 57,60,63-65)

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 Unit I-
Lecture I- Industrial Relation
QUESTION: What do you mean by “Industrial Relation”? Discuss the Indian labour
policy explaining how far it has been successful in resolving relevant labour problems.
(2021)

QUESTION: 1A. What do you understand by the Concept of Industrial Relation?

Ans: A. The term "Industrial Relations" comprises two elements: industry and relations.
Industrial relations refer to the interactions between employees and employers within an
organization. Industry pertains to any productive activity in which individuals or groups are
engaged. Economically, the industry represents the secondary sector of the market, which
influences production factors such as land, labor, capital, enterprise, men, material, money, and
machines. Relations denote the connection and bond between employers and workers within the
industry. Thus, the relationship between employees and management in an organization is known
as industrial relations. These relations stem directly or indirectly from the management-trade
union relationship within the organization.

QUESTION: 1 B. Define Industrial Relation.

Ans: B. Industrial Relations encompass all types of interactions between employers and
employees, trade unions, and employer organizations. It aims to foster healthy relationships
between employees and management, thereby maintaining industrial harmony.
According to V. Agnihotri, “industrial relations explain the relationship between employees and
management, which stems directly or indirectly from the union-employer relationship.” Bethel
defines industrial relations as the management of the relationship between employees and
employers within an organization, considering the possible interactions and dynamics between
them.

QUESTION: 1 C. What are the objectives of Industrial Relations

Ans: C. The main objectives of Industrial Relations are:
1. Maintain industrial democracy through workforce participation in both management and
profit-sharing within the industry.

2. Promote employee participation in company management by granting them a voice in

policy formulation and decision-making processes.

3. Establish a robust communication channel.

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 4. Safeguard the interests of employees and management across all sectors of an industry
through fostering mutual understanding and respect.

5. Enhance living and working conditions for employees to uphold stability in the
workplace.

6. Enable government oversight of industrial operations to safeguard employee livelihoods

and ensure effective management.

QUESTION: 1 D. Discuss the Scope and Nature of Industrial Relation

Ans: D. Industrial relations aim to protect employees' interests and manage their relationships
with management. It enables organizations to maintain a balance among employee expectations,
trade unions, economic societies, and other stakeholders.
The term industrial relations encompasses various interpretations by scholars. According to the
International Labour Organization (ILO), industrial relations encompass the relationship between
the state and employers, as well as the relationship between trade unions and employer
associations. The functions performed by the industrial relations department of an organization
include public relations, labor relations, policy and program management, and maintenance of
employment records.

 Codes on Industrial Relations:

 The Industrial Relations Code, 2020

 The Labour Code on Industrial Relations seeks to unify Trade Unions Act, 1926, the
Industrial Employment (Standing Orders) Act, 1946, and the Industrial Disputes Act,
1947.
 Seeks to abolish deadlocks, by promoting labour welfare.
 Looks to give fillip to investment, facilitating the environment for such activities.
 Seeks to empower the labour unions to protect labour interests.

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 LECTURE II: Industrial Jurisprudence
QUESTION: Discuss the evolution, meaning and principles of Industrial Jurisprudence.

QUESTION: 2 A. What is Industrial Jurisprudence?

Ans: A. In the 20th century, "Industrial Jurisprudence" emerged, evolving significantly since the
Industrial Revolution and gaining momentum post-independence. This branch of jurisprudence,
marked by labor and industrial legislation, transformed the traditional master-servant dynamic,
protecting employee interests and restricting unilateral terminations.
Post-independence, industrial jurisprudence influenced government attitudes toward the working
class, promoting worker self-reliance amid factory system expansions. The Constitution of India
provided guidelines for industrial relations, fostering industrial harmony.
Parliament and the Supreme Court have shaped industrial jurisprudence through legislation and
interpretation of labor laws. This field is crucial globally, as it addresses employer-employee
relations essential for societal development.

QUESTION: 2B. Prepare a Brief note on Industrial Jurisprudence.

Ans: B. Industrial jurisprudence represents the ideology shaping legislators' perspectives on
labor legislation governing relations between workers and employers. Mahatma Gandhi rightly
emphasized that industry is a collaborative effort between workers and employers. In landmark
cases like the Hospital Mazdoor Sabha and Bangalore Water Supply cases, the triple test theory
underscored the essential role of worker cooperation within any industry. This jurisprudence
guides the formulation of labor laws, evolving from the transition away from laissez-faire
economics to the establishment of welfare states where workers are integral to industrial
operations.
The state's intervention through labor regulations, emphasizing tripartism, aims to settle disputes
between employers and employees, leading to the creation of various existing laws. The June
1998 International Conference highlighted fundamental labor policies, influencing Indian labor
jurisprudence with principles such as freedom of association, collective bargaining rights,
abolition of forced labor and child labor, and non-discrimination in employment. Industrial
jurisprudence continually adapts to govern industrial dynamics effectively, promoting
harmonious employer-employee relations.
Since the commencement of the Constitution of India, the concept of social justice has driven
welfare-oriented labor legislation, resulting in social security and assistance measures aligning
with constitutional spirit. Embracing new economic policies is expected to dynamically
transform industrial jurisprudence, ensuring industry upliftment while safeguarding workers'
fundamental rights, even amidst the introduction of new exit policies.

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QUESTION 2 C: Mention the basic principles of Industrial Jurisprudence
Ans: C. Principles of Industrial Jurisprudence are:

1. The right to workmen to combine and form associations or unions.

2. The right of workmen to bargain collectively for the betterment of their

considerations of service.

3. The realization that economic struggle is inevitable because it is but natural that
Labour would agitate for better conditions.

4. A shift from the doctrine of “Laissez faire” to a “welfare state”.

5. Tripartite consultations i.e. solution of the industrial or labour disputes through the
participation of workers, employers and the Government.

6. The State can no more be a neutral onlooker but must interference as the protector of
the social good.

7. Minimum standards must be guaranteed through State legislation.

QUESTION: 2 D. Discuss the Evolution of Industrial Jurisprudence.

Ans: D. Industrial jurisprudence in our country began to take shape only after independence.
Prior to independence, government attitudes and labor legislation aimed primarily at improving
labor conditions, with limited emphasis on social justice for the working class. The birth of
industrial jurisprudence in India can be attributed to the Constitution of India, which articulated
and clarified the Republic's philosophy on industrial relations. This philosophy provided broad
and clear guidelines for the development of our industrial jurisprudence, advancing India's
pursuit of industrial harmony.
Both Parliament and the Supreme Court have played crucial roles in shaping industrial
jurisprudence. Parliament has done so through legislation, while the Supreme Court has
interpreted labor laws. Industrial jurisprudence holds significant importance for all countries,
whether developed or developing, as it addresses issues arising from the large-scale development
of factory systems during the industrial revolution. Effective regulation of employer-employee
relationships is essential for the planned, progressive, and purposeful development of any
society.

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In today's body politic, industrial jurisprudence serves as an instrument of social policy, gaining
increasing relevance. It directly impacts industrial workers and their families, underscoring its
critical role in ensuring fair and equitable treatment within the workplace.

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 Lecture III: Labour Welfare
QUESTION: Discuss the history and development of labour welfare legislation in India
during the twentieth century. Are “Labour Welfare” and “Industrial Growth”
contradictory to each other? (2021)
QUESTION: 3 A. What is the meaning of Labour Welfare?
Ans: A. Labour welfare encompasses the voluntary efforts made by employers to enhance the
conditions of employment within their industries. Its primary objective is to improve the standard
of living for workers, thereby enhancing their psychological well-being and boosting
productivity. Labour welfare initiatives aim to enhance the physical, mental, and moral well-
being of workers. These initiatives include provisions such as housing, medical benefits,
education support, rest areas, recreational facilities, canteens, sports clubs, fair wages, reasonable
working hours, and insurance coverage.
By offering these amenities, employers significantly increase efficiency. These provisions instill
confidence in workers, promote happiness, and foster a positive relationship between workers
and employers, thereby reducing disciplinary issues and promoting industrial harmony. Access
to these facilities alleviates workers' concerns, allowing them to focus wholeheartedly on their
tasks. Insurance coverage and good working conditions create a sense of security, eliminating
feelings of insecurity among workers and increasing their dedication to their work.
Today, workers often face challenges related to housing, inadequate wages, and costly education.
Addressing these issues alleviates a significant portion of their worries. Additionally, promoting
cultural uplift through recreational and social activities further encourages workers to engage
wholeheartedly in their work, contributing both physically and mentally.

QUESTION: 3 B. What are the objectives of Labour Welfare?

Ans: B. The Objectives of Labour Welfare are-
1. Initially, labour welfare activities were motivated by humanitarianism and social
consciousness. Employers, aiming for enhanced efficiency and productivity from their
workers, also used labour welfare measures to attract skilled workers to their
organizations.

2. These measures addressed several key issues, including persuading workers to embrace
mechanization and countering external influences on their workforce.

3. Labour welfare initiatives have also been utilized by employers to manage tax liabilities
on surpluses while simultaneously fostering positive relationships with employees.

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QUESTION: 3 C. Elaborate on the Concept of Industrial Welfare.
Ans: C. Welfare is a relative concept, influenced by time and space, leading to continual changes
in its impact on systems. This variability means that the content and scope of welfare continually
evolve across different countries and regions.
From a positive perspective, welfare seeks to establish a minimum standard of living,
encompassing essential biological and social conditions. This includes provisions for health,
nutrition, clothing, housing, medical care, and insurance. However, the concept of labour welfare
also carries both positive and negative aspects. On one hand, it aims to provide opportunities that
enable workers and their families to lead socially and personally fulfilling lives. On the other
hand, it can inadvertently give rise to undesirable consequences and labour-related issues.
The definition and implementation of labour welfare vary significantly between countries,
industries, and over time and region. It is shaped by societal challenges and factors such as age,
gender, socio-cultural background, economic status, and educational levels of employees across
different industries.

QUESTION: 3 D. Define Industrial Welfare.

Ans: D. Labour welfare is defined as “ anything done for the intellectual, physical, moral and
economic betterment of the workers, whether by employers, by government or by other agencies
over and above what is laid down by law or what is normally expected as part of the contractual
benefits for which the workers may have bargained”.

Another definition on labour welfare defines it as “ that cover all the efforts which employers
make for the benefit of their employees over and above the minimum standard of working
conditions fixed by the factories act and over and above the provision of social legislation
providing against accident, old age, unemployment and sickness.”

Another definition on labour welfare states that “ such services, facilities and amenities as
adequate canteens, rest and recreation facilities, sanitary and medical facilities, arrangements
for travel to and from work and for the accommodation of the workers employed at a distance
from their security measures, as contribute to an improvement in the conditions under which
workers are employed .”

QUESTION: 3 E. Mention the Theories of Industrial Welfare.

Ans: E. The Theories under Industrial Welfare are:

1. The Police Theory

2. The Religious Theory
3. Philanthropic Theory
4. Trusteeship Theory
5. The Placating Theory

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 6. Public Relations Theory
7. Public Relations Theory
8. The Functional Theory

QUESTION:3 F. Mention the Principles of Labour Welfare.

Ans: F. The Principles of Labour Welfare are:

1) Principles of Adequacy of wages

2) Principle of Social Responsibility
3) Principles of Efficiency
4) Principles of Re-personalization
5) Principles of Totality of Welfare
6) Principles of Co-Ordination
7) Principles of Democratic Values
8) Principles of Responsibility
9) Principles of Accountability
10) Principles of Timeliness
11) Principles of Self Help

QUESTION: 3 G. Mention the need and scope of Labour Welfare with reference to the
Constitution of India.

Ans. G: The Scope of Labour Welfare:

To contribute to labor productivity and enterprise efficiency, raise the standard of living for
workers by indirectly reducing their financial burden, and align with similar services in
neighboring communities, welfare measures should:

1. Be based on an intelligent prediction of future industrial needs, designed to cushion the

impacts of industrialization and urbanization.

2. Be administratively viable and development-oriented.

Labor welfare activities should extend beyond the immediate vicinity of the enterprise and
encompass a wide range of social welfare services. This includes both statutory and non-
statutory measures undertaken by employers.
These activities cover a broad spectrum, including canteen services, rest and recreation facilities,
medical assistance, improved health, nutrition and sanitation, commuting arrangements,
education, housing, holiday facilities, and more.

Need of Labour Welfare

Labor welfare has become indispensable owing to the intrinsic characteristics of the industrial
system, with diverse approaches being adopted across different countries. In our nation, which

15
remains in the throes of economic development, it is particularly significant and somewhat more
feasible to address and counteract the detrimental impacts of the industrial revolution. This
industrial transformation has had widespread negative consequences on people globally. By
implementing effective labor welfare measures, we can more effectively mitigate these adverse
effects, fostering a healthier and more sustainable industrial environment for our population.

The need for labor welfare was recognized as early as 1931 by the Royal Commission on
Labour, which aimed to protect industrial workers from exploitation by their employers. This
mission of protection was further reinforced by the state directive principles in the following
articles:

 Article 41 – Within the limits of its economic capacity and development, the state
shall make effective provisions to secure the right to work, education, and public
assistance in cases of unemployment, old age, sickness, disablement, and other
instances of undeserved want.

 Article 42 – The state shall ensure just and humane conditions of work and provide
for maternity relief.

 Article 43 – The state shall strive, through suitable legislation, economic

organization, or other means, to secure for all workers—whether agricultural,
industrial, or otherwise—a living wage, decent working conditions, and
opportunities for leisure and social and cultural activities. Additionally, the state
shall promote cottage industries on an individual or cooperative basis in rural areas.

QUESTION: 3 H. Mention types of welfare.

Ans: H. Some of the major categories of labour welfare are:

1) Intra-mutual facilities
2) Extra- mural facilities
3) Statutory Facilities
4) Mutual Facilities
5) Voluntary

QUESTION:3 I. Briefly explain the Types of Labour welfare

Ans: I. The Types of Labour welfare are explained below:

1) Intra-mutual Facilities:
The facilities provided within the factory premises are referred to as intra-mural facilities.
These include measures aimed at reducing industrial fatigue, implementing safety
measures such as machine fencing and covering, ensuring a well-organized layout of the

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 plant and machinery, providing adequate lighting conditions, and offering first aid
equipment.

2) Extra-mural Facilities:
Facilities provided to workers outside the factory premises are known as extra-mural
facilities. These include improved housing accommodations, recreational sports (both
indoor and outdoor), and educational opportunities. Although offering these facilities is
voluntary, they were previously overlooked. However, it is now recognized that these
amenities are crucial for the overall welfare and upliftment of workers.

3) Statutory Facilities:
Welfare facilities are provided in accordance with labor legislation enacted by the
government. The nature and extent of these facilities vary from country to country and
can include both intra-mural and extra-mural amenities. Employers are obligated to
provide these facilities and cannot disregard them. Any violation of these statutory
provisions will result in the employer being punishable under the relevant Act.

The National Commission of Labour has divided all the statutory measures under two
distinct heads:

i) Facilities which have to be provided irrespective of the size of the establishment

e.g. drinking water.
ii) Facilities which are to be provided subject to the employment of a specified
number of persons, e.g., crèches
4) Mutual Facilities:
These facilities typically fall outside the scope of statutory provisions and are voluntarily
undertaken by the workers for their own benefit. Consequently, the employer has no
involvement or influence in these activities.

5) Voluntary:
Facilities voluntarily provided by employers fall under this category and are, therefore,
non-statutory. Nevertheless, these activities ultimately contribute to increased worker
efficiency.

QUESTION: 3 J. What is Industrial Growth?

Ans: J. Industrial growth refers to the expansion and development of industries within an
economy. It encompasses the increase in production capacity, technological advancements,
infrastructure development, and the overall enhancement of industrial activities. This growth is
vital for the economic development of a country and has far-reaching impacts on various aspects
of society.

Key Drivers of Industrial Growth

1. Technological Innovation:

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 - Adoption of advanced technologies such as automation, artificial intelligence, and robotics.
- Research and development leading to new products and processes.

2. Investment:
- Domestic and foreign investments in industrial infrastructure.
- Government policies promoting industrial investments through incentives and subsidies.

3. Skilled Workforce:
- Availability of a trained and educated workforce.
- Initiatives for skill development and vocational training.

4. Market Demand:
- Increasing domestic and international demand for industrial goods.
- Growth in consumer markets and export opportunities.

5. Infrastructure Development:
- Development of transportation networks, energy supplies, and communication systems.
- Establishment of industrial parks and special economic zones.

6. Regulatory Environment:
- Supportive government policies and regulatory frameworks.
- Ease of doing business, streamlined processes, and reduction of bureaucratic hurdles.

Impacts of Industrial Growth

1. Economic Development:
- Contribution to GDP and overall economic growth.
- Creation of employment opportunities and reduction of poverty.

2. Urbanization:
- Development of urban areas with better living standards.
- Migration of population from rural to urban areas seeking employment.

3. Technological Advancements:
- Encouragement of innovation and technological progress.
- Spillover effects leading to improvements in other sectors such as agriculture and services.

4. Environmental Concerns:
- Industrial activities can lead to pollution and environmental degradation.
- Need for sustainable practices and environmental regulations.

5. Social Transformation:
- Improved standards of living and quality of life.
- Changes in social structures and lifestyles due to urbanization and industrialization.

Challenges to Industrial Growth

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1. Resource Scarcity:
- Limited availability of natural resources and raw materials.
- Need for efficient resource management and alternative materials.

2. Environmental Impact:
- Addressing pollution and ensuring sustainable industrial practices.
- Balancing industrial growth with environmental conservation.

3. Global Competition:
- Competing with international players in a globalized economy.
- Maintaining competitiveness through innovation and efficiency.

4. Economic Fluctuations:
- Impact of global economic trends and market volatility.
- Resilience to economic downturns and external shocks.

Conclusion: Industrial growth is a crucial component of economic development, driving

technological progress, job creation, and improved living standards. However, it must be pursued
sustainably, with careful consideration of environmental impacts and resource management.
Policymakers, industry leaders, and communities must work together to foster an environment
conducive to industrial growth while addressing the associated challenges.

QUESTION: 3 K. Are “Labour Welfare” and “Industrial Growth” contradictory to each

other?

Ans: K. “Labour welfare” and “industrial growth” are not inherently contradictory; rather, they
can be complementary if managed effectively. However, tensions can arise between these two
goals, which can create challenges. Let’s explore both perspectives:

Complementary Aspects

1. Improved Productivity:
- Labour Welfare: Enhanced welfare measures such as good working conditions, healthcare,
and fair wages can lead to increased employee satisfaction and productivity.
- Industrial Growth: Higher productivity directly contributes to industrial growth, as efficient
and motivated workers are more likely to drive innovation and higher output.

2. Reduced Turnover and Absenteeism:

- Labour Welfare: Providing benefits such as job security, social security, and employee
assistance programs can reduce turnover and absenteeism.
- Industrial Growth: A stable workforce means less disruption and lower costs associated with
hiring and training new employees, thus supporting continuous industrial growth.

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3. Positive Industrial Relations:
- Labour Welfare:Ensuring workers’ rights and welfare can lead to harmonious industrial
relations.
- Industrial Growth: Positive relations between management and labor can prevent strikes and
lockouts, ensuring uninterrupted production and growth.

Potential Contradictions

1. Cost Implications:
- Labour Welfare: Implementing comprehensive welfare programs can be costly for industries.
- Industrial Growth: High costs may reduce profit margins and limit the funds available for
reinvestment in growth and expansion.

2. Regulatory Burdens:
- Labour Welfare: Strict labor laws and regulations aimed at protecting worker welfare can
sometimes be seen as burdensome by industries.
- Industrial Growth: Overregulation may hinder the flexibility and agility needed for rapid
industrial growth, potentially discouraging investment.

3. Short-Term vs. Long-Term Focus:

- Labour Welfare: Emphasis on welfare might focus on immediate needs and benefits for
workers.
- Industrial Growth: Focus on growth often involves long-term strategies that might prioritize
investments in technology and infrastructure over immediate worker benefits.

Balancing Labour Welfare and Industrial Growth

Achieving a balance between labor welfare and industrial growth involves strategic management
and policy-making:

1. Collaborative Approach:
- Engaging in dialogue between labor unions, employers, and government can lead to mutually
beneficial solutions.
- Policies that promote shared growth, where the benefits of industrial expansion are also
enjoyed by the workforce, can help align these goals.

2. Sustainable Practices:
- Adopting sustainable business practices that consider environmental and social impacts can
support both welfare and growth.
- Investing in human capital through training and development ensures that the workforce can
contribute effectively to industrial growth.

3. Innovation and Efficiency:

- Emphasizing innovation can lead to more efficient production methods that reduce costs and
allow for better worker welfare programs without compromising growth.

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 - Technologies that improve working conditions can enhance welfare while also boosting
productivity and growth.

In conclusion, while there can be conflicts between labor welfare and industrial growth, they are
not necessarily contradictory. With thoughtful strategies and collaboration, both can be pursued
in a way that reinforces each other, leading to sustainable and inclusive economic development.

21
 Lecture IV: Labour Problem

QUESTION: Discuss labour problems and labour policy in India emphasizing legislative
provisions. (2022)

QUESTION: 4 A. Discuss the concept of Labour Problem

Ans: A. Labor problems posed a significant threat to society as employers prioritized machines
over human workers, who were often illiterate, impoverished, and exploited. Initially, neither the
government nor the courts addressed these issues, leading to worsening conditions. Philanthropic
organizations and social workers eventually raised awareness, and workers began forming
organizations despite weak bargaining power. Some employers recognized the benefits of labor
welfare, understanding that a contented worker was more productive.

Post-independence, the Indian government focused on improving labor conditions, realizing that
industrial peace and cooperation were essential for national prosperity. Fair wages and working
conditions were seen as crucial for achieving social justice and economic stability. The
Constitution's socio-economic objectives and labor legislation became vital tools for promoting
industrial growth and ensuring workers' rights, requiring a distinct legal approach to address
these issues effectively.

QUESTION: 4 B. Mention the major Labour Problems.

Ans: B. The major problems faced by Labours are:

LABOUR PROBLEMS

1)Absenteeism 2) Indebtedness 3) Family Distress 4) Poor Working Conditions 5) Low wages

Innocent Culpable
Absenteeism Absenteeism

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QUESTION: 4 C. Discuss the Labour Problems.

Ans: C. Labor problems encompass a range of issues that negatively affect workers across
various industries. These problems not only impact the workers' well-being but also the overall
productivity and efficiency of the workforce. Addressing these issues is crucial for fostering a
fair and just working environment.

Key problems are-

a) Absenteeism: Employee absenteeism, defined as the absence of an employee from work,

poses a significant challenge for employers across various industries today. When
employees are absent, it directly impacts productivity and workflow, often resulting in
backlogs and delays in completing tasks. While several laws have been enacted to protect
the interests of both employers and employees, these laws also come with certain
constraints and limitations.

i) Innocent absenteeism: An excused absence from work occurs when an employee

is absent for a genuine reason such as illness, personal family issues, or any other
legitimate cause.

ii) Culpable absenteeism: An unexcused absence from work occurs when a person
is absent without a genuine reason or cause. This could involve feigning illness or
simply taking an unauthorized holiday and staying home. Employers have the
right to inquire about the reasons for an employee's absence. If the absence is due
to illness, the employee should be able to provide a doctor's note upon request.

b) Indebtedness: This study explores indebtedness among rural households across different
occupations using data from the AIDIS survey by NSSO. It reveals that self-employed
households in agricultural and non-agricultural sectors face moderate levels of
indebtedness, despite their higher positions in asset and income distribution in rural India.
Scheduled caste households engaged in self-employment, such as cultivators and artisans,
have notably benefited from affirmative actions, reducing their susceptibility to
indebtedness.

c) Family Distress: Balancing work and family roles has become a crucial issue across
societies. Work and family, once thought to be separate, are now recognized as closely
intertwined aspects of life (Ford et al., 2007). Economic development globally
necessitates the integration of both male and female labor forces. Women's participation
in the workforce not only contributes to economic growth but also helps in reducing
poverty. Despite the desire of many mothers to prioritize raising their families over work,
financial constraints often force them to return to work to support their families. This
situation is particularly challenging for single mothers, for whom returning to work after
having a child is often a necessity rather than a choice.

23
d) Poor Working Conditions: Workers often face unsafe or unhealthy environments,
characterized by inadequate ventilation, poor lighting, insufficient sanitation, and
exposure to hazardous materials. Such conditions can lead to accidents, health issues, and
decreased morale.

e) Low Wages : Many workers receive wages that do not meet their basic needs, resulting
in financial insecurity and poverty. Despite long hours and hard work, the lack of fair
compensation undermines workers' quality of life.

f) Long Working Hours: Excessive working hours without adequate rest breaks lead to
physical and mental exhaustion. Overwork reduces productivity in the long run and
negatively affects workers' health and family life.

g) Lack of Job Security: Temporary contracts, frequent layoffs, and a lack of employment
benefits create job insecurity. Workers face constant uncertainty about their future, which
can lead to stress and anxiety.

h) Exploitation and abuse: Workers may be subjected to exploitation, including forced

labor and unfair labor practices. Harassment and discrimination based on gender, race, or
other factors are also prevalent, creating a hostile work environment.

i) Insufficient Benefits: Many workers lack access to essential benefits such as healthcare,
maternity leave, paid leave, retirement plans, and social security. The absence of these
benefits exacerbates financial and personal difficulties.

j) Lack of Workers' Rights and Representation: Inadequate protection of workers' rights,

limited access to trade unions, and insufficient mechanisms for voicing concerns hinder
workers' ability to negotiate fair terms with employers. This imbalance often leads to
unfair treatment.

k) Child Labor: The employment of underage children in hazardous and exploitative

conditions remains a significant issue. Child labor deprives children of education and
proper development, perpetuating the cycle of poverty.

l) Unfair Dismissals: Workers may be dismissed without due process or adequate

compensation, leading to economic hardship and instability. Fair and transparent
dismissal procedures are essential to protect workers' rights.

m) Workplace Stress and Mental Health Issues: High levels of job-related stress due to
pressures, lack of work-life balance, and insufficient support for mental health issues can
lead to burnout and decreased productivity. Addressing mental health is crucial for a
healthy workforce.

24
n) Gender Inequality: Disparities in pay, opportunities for advancement, and treatment
between male and female workers persist. Issues related to sexual harassment and
inadequate maternity rights further compound gender inequality.

o) Lack of Training and Development Opportunities: Insufficient access to training

programs and professional development hinders workers' ability to improve their skills
and advance their careers. Continuous learning opportunities are vital for a dynamic and
skilled workforce.

p) Addressing Labor Problems: Effective solutions to labor problems require

comprehensive policies and regulations, robust enforcement mechanisms, and
collaboration between governments, employers, trade unions, and other stakeholders.
Ensuring fair treatment, safe working conditions, and equitable compensation are
fundamental steps towards improving the labor landscape. By addressing these issues, we
can create a more just and productive society where workers are valued and protected.

25
 Lecture V: Labour Policy in India

QUESTION: Discuss labour problems and labour policy in India emphasizing legislative
provisions. (2022)

QUESTION: 5 A. Discuss the Concept of Labour Policy in India.

Ans: A. India's labor policy involves setting trends and principles to govern labor matters, driven
by the state's duty to protect both workers and employers and ensure reasonable product prices
for the community. In a democratic context, these policies emphasize human rights and are
shaped by the country's economic development and industrialization strategies.
Key influences on India's labor policies include:
- Planned development and rapid economic growth from five-year plans.
- Welfare state mandates in the Constitution, particularly the Directive Principles of State Policy.
- Socio-economic balance and working conditions highlighted by commissions like the Royal
Commission on Labour.
- Managing union-employer dynamics, often favoring adjudication over collective bargaining.
- The state's significant role as an employer, with the public sector traditionally leading economic
sectors.
Overall, India's labor policies aim to balance industrial growth with equitable welfare measures,
addressing the complexities of labor relations in a diverse society.

QUESTION: 5 B. What are the factors responsible for Labour Policy?

Ans: B. The Labour Policy of our country is influenced by-

i) The Constitution of India

ii) The Instruments of ILO
iii) The Policies announced in successive five years plans
iv) The report and recommendations of various major commissions like Royal Commission
on Labour Law, The National Commission on Labour and Tripartite Committees like-
Indian Labour Conference and Standing Labour Committee.

QUESTION: 5 C. Discuss “Indian Constitution and Labour Policy”

Ans: C. The Constitution of India stands as the supreme law of the land and serves as the
foundation for all labor policies in the country. It draws upon the trinity of constitutional
elements—the Preamble, Fundamental Rights, and Directive Principles of State Policy—to guide
the formulation of labor policies by the Government. The Preamble sets out the philosophies and
principles that underpin governance, including social justice and equality. Fundamental Rights
ensure the protection of human rights and dignity, crucial for safeguarding workers' interests in
the workplace. Meanwhile, the Directive Principles of State Policy provide a roadmap for
progressive labor policy development, emphasizing fair wages, social security, and decent
working conditions. Recognizing the diverse and pluralistic nature of labor issues, the
Constitution places labor under the concurrent list, granting both the Central and State

26
Governments authority to legislate and regulate labor matters, thereby accommodating regional
nuances and ensuring comprehensive governance.

Question: 5 D. Discuss “Five Year Plans and Labour Policy”

Ans: D. During the immediate post-independence period, the Labour Investigation Committee of
1946 and the Royal Commission on Labour of 1931 played pivotal roles in shaping India's labor
policies. Their recommendations laid the groundwork for several significant reforms aimed at
improving the working conditions and welfare of laborers across the country. Key initiatives
included the revision of existing labor legislations to better suit the evolving socio-economic
landscape, efforts to regulate or abolish contract labor to protect workers' rights, and the
establishment of fair terms and conditions for all workers. Additionally, measures were
introduced to address wage disparities in industries facing exploitation, along with the
introduction of health insurance programs to enhance worker welfare. The creation of a network
of employment exchanges was also part of these efforts, aiming to facilitate job placements and
enhance employment opportunities. The National Commission on Labour and subsequent Five
Year Plans further contributed to the formulation of national labor policies, focusing on
economic development, social justice, and equitable opportunities for the labor force. These
initiatives underscored a commitment to adapting labor policies to meet contemporary challenges
while striving for inclusive growth and improved standards of living for all workers in India.

QUESTION: 5 E. Write a short Note on Tripartite Labour Bodies and Labour Policy.

Ans: E. The Indian Labour Conference and Standing Labour Committee were established in
1942 with the aim of creating a platform for developing national labor policies through
consensus among stakeholders. Over the years, these bodies have played a crucial role in
deliberating on and formulating recommendations that address various labor-related issues in
India. Despite their efforts and valuable contributions, their effectiveness has been hindered by
the government's reluctance to accept even unanimous recommendations. This adamant stance
has prevented these bodies from fully accomplishing their mission of fostering comprehensive
and inclusive labor policies that cater to the needs and aspirations of all stakeholders in the labor
sector. Nevertheless, the Indian Labour Conference and Standing Labour Committee remain
important forums for dialogue and advocacy, continuing to strive towards advancing the rights
and welfare of workers across the country.

QUESTION: 5 F. What are the main Postulates of Labour Policy?

Ans: F. Our labor policy encompasses several key elements that shape our approach towards
ensuring fairness, welfare, and productivity within the workforce:

1. The state emerges as a central player, safeguarding the interests of the working community
and driving welfare programs.
2. Recognition of the right to direct action if justice is denied to workers.

27
3. Promotion of mutual settlements, collective bargaining, and voluntary arbitration to resolve
disputes.
4. State intervention to protect the weaker party and ensure equitable treatment for all
stakeholders.
5. Emphasis on maintaining industrial peace to foster a conducive work environment.
6. Encouragement of constructive partnerships between employers and employees to meet
economic needs effectively.
7. Enforcement of fair standards and provisions for social security to support workers' well-
being.
8. Collaboration to enhance production and increase productivity across industries.
9. Strict enforcement of legislations to uphold labor rights and standards.
10. Enhancement of workers' interests and welfare within industrial settings.
11. Tripartite consultations involving government, employers, and employees to facilitate
inclusive policy formulation and decision-making.

These elements collectively underscore our commitment to balancing the interests of labor and
industry while promoting socio-economic development and fostering harmonious industrial
relations in India.

QUESTION: 5 G. Mention some Labour Policies in India.

Ans: G. In India, several labor policies have been implemented over the years to protect the
rights and welfare of workers and ensure fair labor practices. Some key labor policies include:

1. Minimum Wages Act, 1948: Ensures that workers receive a minimum wage to sustain
themselves and their families, varying by industry and region.

2. Employees' Provident Funds and Miscellaneous Provisions Act, 1952: Establishes a

compulsory savings scheme for employees in industries and sectors specified by the government.

3. Employees' State Insurance Act, 1948: Provides health insurance and social security
benefits to workers in case of sickness, maternity, injury, or death.

4. Factories Act, 1948: Regulates the working conditions in factories regarding safety, health,
welfare, and working hours of workers.

5. Industrial Disputes Act, 1947: Provides mechanisms for resolving disputes between
employers and employees and governs layoffs, strikes, and lockouts.

6. Payment of Bonus Act, 1965: Mandates payment of annual bonus to employees based on
profits earned by the establishment.

7. Equal Remuneration Act, 1976: Ensures equal pay for equal work for both men and women.

28
8. Maternity Benefit Act, 1961: Provides maternity benefits to women employees, including
paid maternity leave and medical benefits.

9. Child Labour (Prohibition and Regulation) Act, 1986: Prohibits the employment of
children in certain hazardous occupations and regulates their working conditions in others.

10.Contract Labour (Regulation and Abolition) Act, 1970: Regulates the employment of
contract labor and ensures their rights and welfare.

These are some of the significant labor policies in India aimed at protecting workers' rights,
ensuring fair treatment, and promoting social security and welfare across various sectors of the
economy.

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 Lecture VI: International Labour Organization

QUESTION: Define ILO and discuss its roles and conventions.

QUESTION: 6 A. Define ILO.

Ans:A. ILO stands for the International Labour Organization. It is a specialized agency of the
United Nations that deals with labor issues, particularly international labor standards, social
protection, and work opportunities for all. The ILO was founded in 1919 and operates under the
principle that universal and lasting peace can be established only if it is based on social justice. It
promotes rights at work, encourages decent employment opportunities, enhances social
protection, and strengthens dialogue on work-related issues. The organization brings together
governments, employers, and workers of 187 member states to set labor standards, develop
policies, and devise programs to promote decent work for all women and men.

QUESTION: 6 B. What is the Role of ILO?

Ans: B. The International Labour Organization (ILO) plays several key roles in promoting social
justice and internationally recognized labor standards. Some of its primary functions and roles
include:

1.Setting International Labor Standards: The ILO develops and promotes international labor
standards in the form of conventions and recommendations. These standards cover a wide range
of issues such as freedom of association, forced labor, child labor, non-discrimination in
employment, and occupational safety and health.

2.Promoting Decent Work: The ILO promotes opportunities for women and men to obtain
decent and productive work in conditions of freedom, equity, security, and human dignity. This
includes advocating for fair wages, safe working conditions, and social protection for workers.

3.Providing Technical Assistance and Capacity Building: The ILO provides technical
assistance and advisory services to member states to help them implement and enforce
international labor standards and policies. This assistance ranges from policy advice to practical
support for improving labor administration and enforcement mechanisms.

4.Research and Policy Development: The ILO conducts research and analysis on labor and
employment issues globally. It publishes reports, statistics, and studies that contribute to
understanding labor market trends, challenges, and policy responses.

5.Promoting Social Dialogue: The ILO fosters dialogue and collaboration among governments,
employers, and workers through tripartite consultations and partnerships. This helps in
addressing labor market challenges, resolving disputes, and advancing social and economic
development goals.

30
6. Monitoring and Reporting: The ILO monitors the implementation of international labor
standards by member states through regular reporting and review processes. It also provides
guidance and support for improving compliance with these standards.

7. Advocacy and Awareness: The ILO advocates for the rights of workers globally and raises
awareness about labor issues, including promoting the importance of decent work, social justice,
and sustainable development.

Overall, the role of the ILO is to promote social justice and improve working conditions
worldwide through international cooperation, standards-setting, technical assistance, and
advocacy for decent work for all.

QUESTION: 6 C. What are the Fundamental Labour Conventions?

Ans: C. The Fundamental Labour Conventions are:

1) Freedom of Association and the Right to Collective Bargaining

2) The Elimination of all forms of Forced or Compulsory Labour
3) The Effective Abolition of Child Labour
4) Discrimination in Respect of Employment and Occupation
5) A Safe and Healthy Working Environment

QUSETION:6 D. Discuss each Convention briefly.

Ans: D. The Fundamental Labour Conventions are:

a) The Freedom of Association and the Right to Collective Bargaining:

Freedom of association entails a fundamental recognition of the inherent right of both

employers and workers to independently form and participate in groups dedicated to
promoting and protecting their occupational interests. This right allows workers and
employers the autonomy to establish and manage their own organizations without
external interference, whether from governmental bodies or any other external entities.

The right to organize and engage in collective bargaining is a voluntary process where
employers and workers negotiate the terms and conditions of employment. This
negotiation involves direct participation from employers or their representatives, as well
as trade unions or designated worker representatives, ensuring that discussions are
conducted freely and inclusively.

b) The Elimination of All Forms of Forced or Compulsory Labour :

Forced or compulsory labor is defined as work or service extracted from a person under
threat of penalty, where the individual has not voluntarily offered themselves. The

31
 provision of wages or compensation does not negate the coercive nature of such labor.
Ideally, labor should be given willingly, and workers should have the freedom to leave
their employment with reasonable notice.

c) The Effective Abolition of Child Labour: The International Labour Organization (ILO)
conventions, specifically the Minimum Age Convention (No. 138) and the Worst Forms
of Child Labour Convention (No. 182), establish guidelines for national legislation to set
a minimum age for employment. This age must be no less than the age required to
complete compulsory education and, in any event, not less than 15 years old. Child
labour is recognized as a form of exploitation and a violation of human rights.

While child labour manifests in various ways, there is an urgent need to eradicate the
worst forms of child labour as outlined in Article 3 of ILO Convention No. 182. These
worst forms include:
- All forms of slavery or practices akin to slavery, such as the sale and trafficking of
children, debt bondage, serfdom, and forced or compulsory labour, including the forced
or compulsory recruitment of children for use in armed conflict.
- The use, procurement, or offering of a child for prostitution, for the production of
pornography, or for pornographic performances.
- The use, procurement, or offering of a child for illicit activities, particularly for the
production and trafficking of drugs as defined in relevant international treaties.
- Work that, by its nature or the conditions in which it is carried out, is likely to harm the
health, safety, or morals of children.

32
Lecture VII: Trade Unionism and Collective bargaining-process its merit and demerit

QUESTION:
i) Narrate the history and development of Trade Union Movement in India from the
nineteenth century till independence. (2021)
ii) Trace the history and development of Trade Union movement in India. Name any
two important Trade Unions of National level.(2022)

QUESTION: 7 A. What is Trade Union ? Define.

Ans:A. The Trade Unions Act of 1926 (formerly known as the Indian Trade Unions Act) defines
a 'Trade Union' as any combination, whether temporary or permanent, formed primarily to
regulate the relationships between workmen and employers, between workmen themselves, or
between employers, or to impose restrictive conditions on the conduct of any trade or business.
This definition also includes any federation of two or more trade unions.Trade unions are a vital
component of a country's modern industrial system. They operate within their respective
constitutional frameworks and adhere to globally accepted principles established by
organizations such as the International Labor Organization (ILO).

QUESTION: 7 B. What is the need of Trade unions?

Ans: B. The need for the Trade Unions are mentioned underneath:

 Collective Representation and Bargaining:

- Crucial for the growth of a stable working population in various economies.
- Enables workers to secure better wages, job security, improved working conditions, and a
more equitable share of the wealth they create.

 Policy Continuity and Support:

- Contributes to the stability of industrial production.
- Protects the interests of both workers and investors or industrialists.

 Fundamental Right:
- The right to form a trade union is guaranteed as a fundamental right under Article 19(1)(c) of
the Indian Constitution.

33
QUESTION: 7 C. Discuss the History of Trade Union.
Ans: C. The History of Labor Unions in India is discussed beneath-

 Origins and Necessity:

- Trade unions in India emerged from the necessity to protect and secure the interests of
industrial workers.
- The need arose to present collective demands and grievances, especially with the
establishment of industries in the second half of the nineteenth century.
- Workers faced poor working conditions and excessively long working hours.

 Early Developments:
- Despite limitations in functioning effectively as trade unions, early unions served as social
unions aiming to reform industrial ills.
- The development of trade unions paralleled the growth of industry in India.

 Significant Milestones:
- The first trade union in India was established in Bombay following the creation of textile mills
in the 1850s.
- Trade unions emerged in Calcutta in 1854 with the establishment of jute mills.
- Early pioneers of the labour movement included leaders like Sohrabji Shapuri Bengali and
C.P. Mazumdar.

 Institutional Support:
- The first Factory Commission, set up in 1879, investigated the problems of industrial workers.

 Notable Trade Unions:

- The Bombay Millhands Association, the first trade union under Narayan Meghji Lokhande's
leadership, was founded in 1884 without funds or office bearers.
- The Indian Factory Act was passed in 1891.
- Other early trade unions included the Ahmedabad Weavers (1895), Jute Mills in Calcutta
(1896), and the Bombay Mill Workers Union (1897).

QUESTION: 7 D. Name some trade unions of National Level.

Ans: D.

Top Nine Trade Unions of India

34
S. Trade Union Year of H. Q. Political Affiliation Membershi
No. Establish p (Million)
ment
1. All India Trade 1920 New Delhi CPI 14.2
Union Congress
(AITUC)

2. Indian National May 3, New Delhi Indian National Congress 33.3

Trade Union 1947
Congress
(INTUC)

3. Bhartiya July 27, New Delhi BJP 17.1

Mazdoor Sangh 1955
(BMS)

4. Centre for Indian 1970 New Delhi CPM 5.7

Trade Unions
(CITU)

5. Hind Mazdoor Dec. 24, New Delhi Samajvadi 9.1

Sabha (HMS) 1948

6. All India Trade April 26- Kolkata Socialist Unity Centre of 4.7
Union Centre 27, 1958 India(Marxist)
(AIUTUC)

7. Self-employed 1972 Ahmedabad 1.3

Women's
Association of
India (SEWA)

8. Trade Union 1970 NA AIFB 1.6

Coordination
Centre

9. All India Central May NA CPI (M-L) 2.5

Council of Trade 1989
Union

QUESTION: 7 E. Discuss the provisions relating to rights and liabilities of a registered

Trade Union Act,1926.
The Trade Unions Act, 1926, provides a comprehensive framework for the registration, rights,
and liabilities of trade unions in India. Below are the key provisions relating to the rights and
liabilities of a registered trade union under this Act:

Rights of a Registered Trade Union

1. Legal Status and Recognition: (Section 8,9 and 13)

35
 - Upon registration, a trade union is granted legal status, allowing it to function as a legal entity
capable of owning property, entering contracts, and suing or being sued.

2. Immunity from Civil and Criminal Liability: (Section 18)

- Registered trade unions are granted immunity from certain civil and criminal liabilities.
Members are protected from being sued for acts done in furtherance of a trade dispute, such as
organizing strikes or protests.

4. Amalgamation and Dissolution: (Section 24 and 27)

- Registered trade unions have the right to amalgamate with other trade unions or dissolve
themselves according to the provisions outlined in their constitution.

5. Collective Bargaining:
- Trade unions can engage in collective bargaining on behalf of their members, negotiating
terms and conditions of employment, wages, and other employment-related issues with
employers.

Liabilities of a Registered Trade Union

1. Annual Returns: (Section 28)

- Trade unions are required to submit annual returns to the Registrar of Trade Unions. These
returns include details about the membership, finances, and activities of the union.

2. Maintenance of Accounts: (Section 15 and 29)

- Trade unions must maintain accurate accounts of all income, expenditure, and assets. These
accounts are subject to periodic auditing as prescribed by the Act.

3. Compliance with Rules and Regulations: (Section 29 and 30)

- Trade unions must operate in accordance with their registered constitution and rules. Any
amendments to the rules must be registered with the Registrar.

4. Limitations on Political Activities: (Section 16)

- Trade unions are restricted from spending their funds on political activities. However, they
are permitted to spend a portion of their funds on activities such as promoting civic and political
education among their members.

36
6. Inspection of Books: (Section 20)
- Members of a trade union have the right to inspect the books of accounts and the list of
members. The Registrar also has the authority to inspect the records to ensure compliance with
the Act.

QUESTION: 7 F. How are General funds different from Political Funds?

Ans: F. INTRODUCTION: Trade unions, representing the collective voice of workers, are
pivotal in ensuring fair labor practices and worker well-being. To achieve this, they rely on two
distinct types of funds: general funds and political funds. These funds serve different purposes
and operate within specific legal frameworks.

 General Funds: General funds are the backbone of a trade union’s daily operations,
primarily financed through membership fees. They support core activities such as:

- Negotiating Collective Bargaining Agreements: Securing better wages,

benefits, and working conditions for members through negotiations with
employers.

- Providing Legal Support: Offering legal advice and representation to members

dealing with workplace issues, including grievances and unfair dismissals.

- Member Engagement: Organizing meetings, workshops, and events to foster

solidarity and build collective power among members.

- Research and Advocacy: Conducting research and advocacy on issues impacting

workers’ rights and the broader labor market.

General funds are essential for a trade union to function effectively and deliver its core services
to members. Their use is subject to strict regulations and transparency measures to ensure
accountability and responsible financial management.

 Political Funds: Political funds are specifically dedicated to influencing political

processes and promoting workers' interests in the broader societal sphere. Contributions
to these funds are typically voluntary and subject to specific opt-in procedures. Political
funds are used to:

- Support Political Candidates and Parties: Backing those that align with the
trade union’s values and objectives.

37
 - Lobby Government Officials: Advocating for issues impacting workers’ rights,
such as labor laws, social security, and minimum wage regulations.

- Conduct Political Campaigns: Raising awareness about issues important to

workers, such as workplace safety, income inequality, and social justice.

While political funds play a vital role in advancing worker representation and advocating for pro-
worker policies, their use is often subject to debate and scrutiny. Critics argue that using union
funds for political purposes may infringe upon the rights of members who do not share the
union’s political views. Conversely, proponents contend that political engagement is crucial for
securing legislative and policy changes that benefit all workers, regardless of individual political
affiliations.

QUESTION:7 G. Determine the concept of Trade Unionism and Collective Bargaining

with merits and demerits.
Ans:G. Trade unionism involves the formation of labor unions, which represent workers in
negotiations with employers. Collective bargaining is the process through which these unions
negotiate with employers to establish wages, working conditions, benefits, and other
employment terms. Here are the merits and demerits of trade unionism and the collective
bargaining process:

Merits
1. Improved Working Conditions:
- Unions advocate for safer and better working environments, reducing workplace hazards and
improving overall conditions for employees.

2. Better Wages and Benefits:

- Through collective bargaining, unions often secure higher wages and better benefits for their
members compared to non-unionized workers.

3. Job Security:
- Unions help protect workers from arbitrary dismissal and ensure more stable employment,
contributing to a secure workforce.

4. Representation and Advocacy:

- Workers have a collective voice to represent their interests, grievances, and demands, leading
to more balanced power dynamics with employers.

5. Professional Development:
38
 - Unions may offer training and development programs, enhancing the skills and career
prospects of their members.

6. Fair Treatment:
- Unions work towards ensuring that all employees are treated fairly and equitably, promoting
anti-discrimination policies and practices.

Demerits
1. Potential for Strikes and Disruptions:
- Collective bargaining disputes can lead to strikes or work stoppages, disrupting business
operations and potentially harming both workers and employers.

2. Inflexibility:
- Union contracts can sometimes lead to rigid work rules and inflexibility in management
decisions, making it harder for companies to adapt to changing market conditions.

3. Cost to Employers:
- Higher wages and benefits negotiated by unions can increase labor costs for employers,
which may impact the overall profitability and competitiveness of a business.

4. Union Dues and Fees:

- Union members are required to pay dues, which can be a financial burden, especially if the
benefits of union membership are not immediately apparent.

5. Conflict with Management:

- The adversarial nature of collective bargaining can sometimes lead to strained relationships
between workers and management, impacting workplace harmony.

6. Exclusivity:
- Union agreements may prioritize the interests of union members over non-unionized
employees, potentially leading to inequality within the workforce.

QUESTION: 7 H. Write a note on Trade Unionism.

Ans: H. Introduction: Trade unionism refers to the collective organization of workers in unions
to advocate for their rights and interests. Originating in the early industrial age, trade unions have
played a crucial role in shaping labor relations, improving working conditions, and promoting
social justice. Their primary goal is to ensure that workers have a unified voice in negotiations
with employers regarding wages, benefits, working conditions, and other employment terms.

39
Historical Background: The concept of trade unionism dates back to the 18th and 19th
centuries during the Industrial Revolution. As industries grew and labor demand increased,
workers faced poor working conditions, long hours, and inadequate pay. The need for a
collective voice led to the formation of trade unions, initially illegal and facing strong opposition
from employers and governments. Over time, persistent efforts by workers and unions resulted in
the recognition of labor rights and the legalization of trade unions in many countries.

QUESTION:7 I. Write a note on Collective Bargaining

Ans: I. Collective Bargaining
Introduction:
Collective bargaining is a crucial process through which employers and trade unions negotiate
terms and conditions of employment. This mechanism ensures that workers have a collective
voice in discussions about wages, benefits, working conditions, and other employment-related
matters. By facilitating dialogue and compromise between employers and employees, collective
bargaining aims to promote fair and equitable labor practices.

Historical Context:
The roots of collective bargaining can be traced back to the Industrial Revolution when the rapid
growth of factories and industries led to the exploitation of workers. Poor working conditions,
long hours, and low wages were prevalent, prompting workers to band together to demand better
treatment. Over time, the right to collective bargaining became recognized in many countries,
forming a cornerstone of labor law and industrial relations.

Key Components of Collective Bargaining:

1. Negotiation:
- The core of collective bargaining involves negotiations between representatives of the
workers (usually trade unions) and the employers. These discussions cover various aspects such
as pay scales, working hours, health and safety standards, and other workplace policies.

2. Bargaining Agreement:
- The outcome of successful negotiations is a collective bargaining agreement (CBA), a written
contract that outlines the agreed-upon terms and conditions of employment. This document is
legally binding and serves as a reference for both parties.

3. Good Faith Bargaining:

- Both parties are expected to engage in good faith bargaining, meaning they should be willing
to discuss issues openly, make reasonable proposals, and consider the other's position sincerely.

4. Dispute Resolution:
40
 - Collective bargaining agreements often include mechanisms for resolving disputes that may
arise during the term of the contract. This can involve mediation, arbitration, or other forms of
conflict resolution.

Merits of Collective Bargaining:

1. Improved Working Conditions:
- Collective bargaining has historically led to better working conditions, including safer
workplaces, reasonable working hours, and improved health benefits.

2. Fair Wages:
- Through collective bargaining, workers can negotiate for fair wages that reflect their
contributions and the cost of living, helping to reduce income inequality.

3. Job Security:
- CBAs often include provisions that enhance job security, protecting workers from arbitrary
layoffs and ensuring a more stable employment environment.

4. Mutual Cooperation:
- The collective bargaining process fosters a spirit of cooperation and mutual respect between
employers and employees, leading to a more harmonious workplace.

Challenges and Criticisms:

1. Potential for Conflict:
- Negotiations can sometimes lead to conflicts and work stoppages, such as strikes or lockouts,
which can disrupt business operations and affect productivity.

2. Inflexibility:
- Collective agreements may introduce rigidities that make it difficult for employers to adapt
quickly to changing economic conditions or technological advancements.

3. Increased Costs:
- The demands for higher wages and better benefits can increase operational costs for
employers, potentially impacting their competitiveness and profitability.

4. Representation Issues:
- There can be challenges in ensuring that the interests of all workers are adequately
represented, especially in diverse and large workforces.

41
 Lecture VIII: Definitions
QUESTION: 8 A. Define Industry.
Ans:A. Section 2(p) of the Code defines the term “industry” means any systematic activity
carried on by co-operation between an employer and worker (whether such worker is employed
by such employer directly or by or through any agency, including a contractor) for the
production, supply or distribution of goods or services with a view to satisfy human wants or
wishes (not being wants or wishes which are merely spiritual or religious in nature), whether or
not,—
(i) any capital has been invested for the purpose of carrying on such activity; or
(ii) such activity is carried on with a motive to make any gain or profit, but does not
include—
(i) institutions owned or managed by organizations wholly or substantially engaged
in any charitable, social or philanthropic service; or
(ii) any activity of the appropriate Government relatable to the sovereign functions of
the appropriate Government including all the activities carried on by the departments of the
Central Government dealing with defense research, atomic energy and space; or
(iii) any domestic service; or
(iv) any other activity as may be notified by the Central Government

QUESTION: 8 B. Define “Industrial Dispute”

Ans:B. Section 2(q) of the Code defines “industrial dispute” means any dispute or difference
between employers and employers or between employers and workers or between workers and
workers which is connected with the employment or non-employment or the terms of
employment or with the conditions of labour, of any person and includes any dispute or
difference between an individual worker and an employer connected with, or arising out of
discharge, dismissal, retrenchment or termination of such worker;

QUESTION: 8 C. Define “lay-off”.

Ans:C. Section 2(t) of the Code defines “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 worker whose name is
borne on the muster rolls of his industrial establishment and who has not been retrenched.

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QUESTION: 8 D. Define “Lock-out”
Ans: D. Section 2 (u) of the Code defines “lock-out” means the temporary closing of a place
of employment, or the suspension of work, or the refusal by an employer to continue to employ
any number of persons employed by him;

QUESTION: 8 E. Define “Retrenchment”

Ans:E. Section 2(zh) of the Code defines “retrenchment” means the termination by the
employer of the service of a worker for any reason whatsoever, otherwise than as a punishment
inflicted by way of disciplinary action, but does not include—
(i) voluntary retirement of the worker; or
(ii) retirement of the worker on reaching the age of superannuation; or
(iii) termination of the service of the worker as a result of the non-renewal of the contract
of employment between the employer and the worker concerned on its expiry or of
such contract being terminated under a stipulation in that behalf contained therein; or
(iv) termination of service of the worker as a result of completion of tenure of fixed term
employment; or
(v) termination of the service of a worker on the ground of continued ill-health;

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 Lecture IX: Bi-partite Forums
Question:9 A. Explain the concept of Bi-Partite Forums.
Ans: A. Chapter II containing Sections 3 and 4 of the Code Deals with bipartite forums like
works committee and grievance redressal committee.

Works Committee under the Industrial Relations Code, 2020

Section 3(1) of the Industrial Relations Code, 2020 mandates that any industrial establishment
employing one hundred or more workers, or having employed this number at any time in the
preceding twelve months, must form a Works Committee. The appropriate Government, through
a general or special order, can instruct the employer to set up this committee in a prescribed
manner. The Works Committee must include representatives from both the employer and the
workmen employed in the establishment. The number of workmen representatives must be at
least equal to the number of employer representatives.
Section 3(2) specifies the selection process for the members of the Works Committee. The
representatives of the workmen are to be chosen in a prescribed manner from among the
workmen engaged in the establishment. This selection process should be carried out in
consultation with their trade union, if any, registered under Section 9 of the Industrial Relations
Code, 2020.
Section 3(3) explains the duties of works committee as:

 Promote Amicable Relations: Implement measures to secure and preserve harmony and
good relations between the employer and the workmen.
 Discuss Common Interests: Provide commentary on matters of mutual interest to both
the employer and the workmen.
 Resolve Differences: Strive to reconcile any significant differences of opinion regarding
such matters.

Grievance Redressal Committee:

Section 4 of the Industrial Relations Code, 2020 gives provisions regarding Grievance
Redressal Committee:

 Grievance Redressal Committees Requirement: Every industrial establishment with

twenty or more workers must establish one or more Grievance Redressal Committees to
resolve disputes arising from individual grievances.
 Committee Composition: The Grievance Redressal Committee must have an equal
number of members representing the employer and the workers, selected in a prescribed
manner.
 Chairperson Rotation: The chairperson of the committee will be chosen from among
the employer and worker representatives, alternating annually.

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 Committee Size and Representation: The total number of committee members must not
exceed ten, and there must be adequate representation of women workers, at least
proportional to their representation in the workforce.
 Filing a Grievance: An aggrieved worker can file an application regarding a dispute
with the Grievance Redressal Committee in a prescribed manner within one year from the
date the dispute arises.
 Completion of Proceedings: The Grievance Redressal Committee must complete its
proceedings within thirty days of receiving an application.
 Decision Making: Decisions are based on the majority view of the Committee, provided
more than half of the worker representatives agree. If not, it is deemed that no decision
was reached.
 Appeal Process: An aggrieved worker may appeal the Committee's decision, or lack
thereof, within sixty days to the conciliation officer via their Trade Union.
 Industrial Dispute Definition: Disputes arising from discharge, dismissal, retrenchment,
or termination of an individual worker's services are considered industrial disputes, even
if no other worker or Trade Union is involved.
 Direct Application to Tribunal: Workers can apply directly to the Tribunal for dispute
adjudication after forty-five days from filing an application with the conciliation officer,
giving the Tribunal jurisdiction over the matter.
 Application Deadline: Applications to the Tribunal must be made within two years from
the date of the worker's discharge, dismissal, retrenchment, or termination.

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 Lecture X: Trade Unions
Question: 10 A. Explain the concept of Trade Union.
Ans: A. Trade Union: An Overview
Definition and Purpose
Trade Union is an organized group of workers who come together to achieve common goals
related to their employment. These goals typically include improving working conditions,
securing higher wages, ensuring better benefits, and safeguarding workers' rights. Trade unions
play a crucial role in representing the interests of employees in negotiations with employers,
often referred to as collective bargaining.

Functions of Trade Unions

1. Collective Bargaining: One of the primary functions of a trade union is to negotiate with
employers on behalf of its members. This includes discussions on wages, working hours,
benefits, workplace safety, and other terms of employment.
2. Representation: Trade unions represent workers in various forums, including grievance and
disciplinary procedures, ensuring that their members' rights are protected and their voices are
heard.
3. Advocacy and Lobbying: Unions advocate for labor-friendly policies and legislation. They
may lobby government bodies to enact laws that improve working conditions, protect jobs, and
enhance workers' rights.
4. Support and Services: Many trade unions provide additional services to their members, such
as legal assistance, training programs, health and welfare benefits, and support during strikes or
industrial actions.
5. Dispute Resolution: Trade unions play a key role in resolving disputes between workers and
employers, often acting as mediators or taking formal action when necessary.

Types of Trade Unions

1. Craft Unions: Represent workers in a specific trade or craft, such as electricians or plumbers.
These unions are typically organized by skill level or trade specialization.

2. Industrial Unions: Represent all workers in a particular industry, regardless of the specific
nature of their work. Examples include unions in the automotive or steel industries.
3. General Unions: Represent workers from various trades and industries. These unions are not
limited to a specific craft or industry and often have a diverse membership base.

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4. White-Collar Unions: Represent professional and clerical employees, such as teachers,
healthcare workers, and office staff.

Legal Framework
The legal framework governing trade unions varies by country, but generally includes provisions
for the registration and recognition of unions, rights to collective bargaining, and protections for
union activities. In many jurisdictions, laws also outline the process for resolving industrial
disputes, the conduct of strikes and lockouts, and the protection of union members from
discrimination or unfair treatment by employers.

Challenges Facing Trade Unions

1. Declining Membership: In many countries, trade union membership has been declining due
to various factors, including changes in the labor market, the rise of gig economy jobs, and anti-
union practices by employers.
2. Globalization: The globalization of markets and production has put pressure on trade unions,
as companies can relocate operations to countries with lower labor costs, weakening the
bargaining power of unions.

3. Technological Change: Advances in technology and automation have transformed

workplaces, leading to job losses in some sectors and the need for unions to adapt to new forms
of employment.

4. Legislative and Regulatory Challenges: In some regions, restrictive labor laws and
regulations limit the ability of unions to organize, bargain collectively, and engage in industrial
action.
.
QUESTION: 10 B. Elaborate the provisions relevant to Registrar of Trade Unions and
Criteria for registration.
Ans:B.

 Section 5: Appointment and Powers of Registrar and Other Officials of Trade

Unions
1. Appointment of Officials: The State Government may, by notification, appoint a person as
the Registrar of Trade Unions. Additionally, it may appoint other persons as Additional
Registrar, Joint Registrar, and Deputy Registrar of Trade Unions. These officials will exercise
powers and perform duties as specified by the State Government through notifications.

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2. Powers and Duties: According to any order issued by the State Government, if an Additional
Registrar, Joint Registrar, or Deputy Registrar exercises the powers and performs the duties of
the Registrar within the area where the registered office of a Trade Union is located, that official
will be considered the Registrar in relation to that Trade Union for the purposes of this Code.

 Section 6: Registration of Trade Unions

1. Application Process: A minimum of seven members of a Trade Union can apply for
registration by subscribing to the Trade Union's rules and complying with the provisions of this
Code.
2. Minimum Membership for Registration: A Trade Union of workers will only be registered
if at least ten percent of the workers or one hundred workers, whichever is less, from the relevant
industrial establishment or industry are members at the time of the application.
3. Validity of Application: An application for registration remains valid even if, after
submission but before registration, some applicants (up to half of the total number) cease to be
members or formally dissociate from the application in writing to the Registrar.
4. Ongoing Membership Requirement: A registered Trade Union must always maintain a
membership of at least ten percent of the workers or one hundred workers, whichever is less,
with a minimum of seven members, from the relevant industrial establishment or industry.

QUESTION: 10 C. What are the requirements for Trade Union Registration?

Ans: C. Section 7: Requirements for Trade Union Registration
A Trade Union is eligible for registration under this Code only if its executive is constituted
according to the provisions of the Code and its rules address the following matters:

1. Name of the Trade Union: The official name of the Trade Union.
2. Objectives: The complete list of objectives for which the Trade Union has been established.
3. Application of Funds: The purposes for which the Trade Union’s general funds can be used,
ensuring all uses are legally permissible under the Code.
4. Membership List: Maintenance of a member list with facilities for inspection by office-
bearers and members.
5. Membership Admission: Admission of ordinary members engaged or employed in the
related industrial establishment or industry, and honorary or temporary members who are not
workers but are allowed under Section 21 to be part of the executive.

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6. Subscription Payment: Payment of a subscription by members, as prescribed.
7. Member Benefits and Penalties: Conditions under which members are entitled to benefits
and under which fines or forfeitures may be imposed.
8. Annual General Body Meeting: Conducting an annual meeting, including the election of
office-bearers.
9. Election and Removal of Office-Bearers: Election and removal process for executive
members and office-bearers, including filling of casual vacancies, every three years.
10. Funds Management: Safe custody of funds, annual audit of accounts, and inspection
facilities for account books by office-bearers and members.
11. Amendment of Rules: Procedures for amending, varying, or rescinding the rules.
12. Dissolution: Procedures for dissolving the Trade Union.

QUESTION: 10 D. Explain Section 8 of The Industrial Relations Code,2020

Ans: D. Application for Registration of Trade Union

1. Submission of Application: Every application for the registration of a Trade Union must be
submitted electronically or through other means to the Registrar. It should be accompanied by:
- (a) A declaration made by affidavit in the prescribed form.
- (b) A copy of the Trade Union's rules, along with a resolution adopted by its members
approving these rules.
- (c) A resolution passed by the members authorizing the applicants to apply for registration.
- (d) If the Trade Union is a federation or central organization of Trade Unions, resolutions
from each member Trade Union agreeing to form such a federation or central organization.

Explanation: In the case of a federation or central organization, the resolution must be passed
separately by each member Trade Union.
2. Financial Statement: If the Trade Union has existed for more than a year before applying for
registration, a general statement of its assets and liabilities, prepared in the prescribed format,
must be submitted along with the application.

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3. Additional Information: The Registrar may request further information to ensure compliance
with the provisions of the Code and determine the Trade Union's eligibility for registration.
Registration may be refused until all required information is provided.
4. Name Approval: If the proposed name of the Trade Union is identical or too similar to an
existing registered Trade Union, the Registrar will require the applicants to change the name.
Registration will be withheld until the name alteration is made to avoid confusion among the
public or members of either Trade Union.

QUESTION: 10 E. Explain the provisions of Registration of Trade Union and its

cancellation.
Ans: E. (Section 9) Registration and Cancellation of Trade Union Registration-
1. Registration Process:
- The Registrar will register a Trade Union upon satisfying that all requirements under this
Chapter are met. Details provided in the application for registration will be entered into a
prescribed register.
- Upon registration, the Registrar issues a certificate in a prescribed format, serving as
conclusive evidence of the Trade Union's registration under this Code.

2. Transition from Previous Registration:

- Any Trade Union registered under the Trade Unions Act, 1926 before this Code's
commencement is deemed registered under this Code.
- Such Trade Unions must update their executive constitution and rules according to Section 7
and submit a statement to the Registrar. The Registrar will then update records accordingly.

3. Cancellation of Registration:
- The Registrar may withdraw or cancel a Trade Union's certificate of registration under
various circumstances:
- (i) On the application of the Trade Union, verified as prescribed.
- (ii) Upon receiving information indicating the Trade Union's contravention of this Code, its
rules, or regulations.
- (iii) If the Trade Union's membership falls below ten percent of total workers or one
hundred workers, whichever is less, provided a sixty-day notice specifying grounds for
cancellation is given.
- The Registrar must provide written reasons for cancellation and communicate them to the
Trade Union.

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4. Cancellation by Tribunal:
- The Registrar will cancel a Trade Union's registration upon an order from a Tribunal to do so.
- Reasons for cancellation must be recorded and communicated in writing to the affected Trade
Union.

QUESTION: 10 F. What is the appeal process regarding Registration and Cancellation of

Trade Union under The Industrial Relations Code,2020?
Ans: F. (Section 10)Appeal Process Regarding Registration and Cancellation of Trade
Union

1. Appeal Against Registrar's Decision:

- Any person aggrieved by the Registrar's refusal to grant registration to a Trade Union under
section 9, or by the cancellation of a registration certificate under sub-section (5) of the same
section, may file an appeal to the Tribunal within the prescribed period.
- The Tribunal may consider appeals filed after the prescribed limitation period if the appellant
demonstrates valid reasons or unavoidable circumstances for the delay.

2. Tribunal's Authority:
- Upon hearing the concerned parties, the Tribunal has the authority to:
- Dismiss the appeal if it finds no grounds for reversal.
- Direct the Registrar to register the Trade Union and issue a registration certificate if the
appeal is successful.
- Set aside the order cancelling the registration certificate, if applicable.
- The Tribunal will send a copy of its order to the Registrar for implementation.

QUESTION: 10 G. What are the obligations of Registered Trade Unions. Discuss.

Ans: G. (Section 11) Communications and Obligations of Registered Trade Unions

1. Receipt of Communications and Notices:

- All communications and notices intended for a registered Trade Union must be sent in the
prescribed manner to the address of its head office as recorded in the Registrar's maintained
register.

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2. Membership Notification:
- The Trade Union is required to notify the Registrar if its membership falls below ten percent
of the total workers or one hundred workers, whichever is less.

3. Update of Information:
- The Trade Union must inform the Registrar of any changes in the details provided during its
registration application, as well as changes in its constitution or rules. This notification must be
done in the prescribed manner.

QUESTION: 10 H. Discuss the Legal Status of Registered Trade Union.

Ans: H. (Section 12) Legal Status of Registered Trade Union
Corporate Entity: Upon registration, every Trade Union becomes a body corporate under its
registered name.
Perpetual Succession: It enjoys perpetual succession, allowing it to continue its existence
regardless of changes in membership or leadership.
Common Seal and Powers: It possesses a common seal and has the authority to acquire, hold,
and manage both movable and immovable property. Additionally, it can enter into contracts.
Legal Capacity: The Trade Union, under its registered name, has the right to sue and be sued in
legal proceedings.

QUESTION:10 I. Exemption of Trade Unions from certain Acts. Discuss.

Ans:I. (Section 13) Exemption of Trade Unions from Certain Acts
The provisions of the following Acts do not apply to any registered Trade Union:
- Societies Registration Act, 1860
- Co-operative Societies Act, 1912
- Multi-State Co-operative Societies Act, 2002
- Companies Act, 2013
- Any other corresponding law relating to co-operative societies in force in any State
Additionally, the registration of a Trade Union under any of the aforementioned Acts is deemed
void in the context of Trade Union registration. Trade Unions operate under their specific
regulations and are exempt from the regulations governing societies, cooperative societies, and
companies as listed above.

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QUESTION:10 J. Mention the Negotiation Framework for Trade Unions in Industrial
Establishments.
Ans: J. (Section 14) Negotiation Framework for Trade Unions in Industrial Establishments

1. Establishment of Negotiating Body:

- An industrial establishment with a registered Trade Union must have a negotiating union or
council (as applicable) to engage in negotiations with the employer on matters prescribed by law.

2. Recognition of Sole Negotiating Union:

- If only one Trade Union is registered and operational in an industrial establishment, the
employer must recognize it as the sole negotiating union, subject to specified criteria.

3. Recognition Criteria for Multiple Trade Unions:

- When multiple Trade Unions are operational:
- The Trade Union with at least fifty-one percent of workers on the establishment's muster
roll, verified as prescribed, will be recognized by the employer as the sole negotiating union.
- If no single Trade Union meets the fifty-one percent threshold, the employer must establish
a negotiating council.
- The council will consist of representatives from Trade Unions with support from at least
twenty percent of the total workers, with representation calculated accordingly.

4. Negotiation and Agreement:

- Negotiations between the employer and the negotiating council (if constituted) will lead to
agreements ratified by a majority of council representatives from Trade Unions involved.

5. Validity of Recognition:
- Recognition of a negotiating union or council is valid for three years from the date of
recognition or establishment, extendable by mutual agreement between the employer and the
Trade Union, up to a total of five years.

6. Facilities for Negotiating Entities:

- The industrial establishment must provide prescribed facilities to the negotiating union or
council to facilitate effective negotiations.

QUESTION:10 K. What do you understand by Management of Funds?

Ans: K. (Section 15) Management of Funds and Contributions in Registered Trade Unions

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1. Utilization of General Funds:
- The general funds of a registered Trade Union shall only be used for purposes specified by
prescribed regulations.

2. Separate Fund for Civic and Political Interests:

- A registered Trade Union may establish a separate fund, funded by voluntary contributions,
to support the civic and political interests of its members, in accordance with prescribed
objectives.

3. Voluntary Contributions and Membership Rights:

- Members cannot be compelled to contribute to the fund mentioned in (2).
- Non-contributing members must not face any disadvantage in terms of Trade Union benefits,
rights, or privileges, except concerning the management or control of the fund.
- Contribution to this fund cannot be a condition for membership in the Trade Union.

4. Prescribed Subscriptions:
- Members are required to pay subscriptions as prescribed by regulations.

QUESTION: 10 L. Discuss the immunity provided under Section 16 of the Code.

Ans:L. (Section 16). Legal Immunity of Registered Trade Unions
1. Protection from Legal Proceedings:
- No civil court suit or legal proceeding can be initiated against any registered Trade Union,
office-bearer, or member thereof solely because their actions, undertaken in anticipation or
promotion of an industrial dispute involving a Trade Union member, induce another person to
breach an employment contract.
- Similarly, such actions cannot be contested on grounds of interfering with someone else's
trade, business, employment, or their right to manage their capital or labor as they see fit.

QUESTION: 10 M. Mention the Exemption from Penal Code Section 120B for Trade
Union Members
Ans: M. (Section 17) No office-bearer or member of a registered Trade Union can be held
accountable under sub-section (2) of section 120B of the Indian Penal Code for any agreement
made among members aimed at advancing objectives specified in section 15 of the Trade
Union's mandate, unless such agreement constitutes an agreement to commit a criminal offense.

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QUESTION: 10 N. Discuss Enforceability of agreements under Trade Union.
Ans: N. (Section 18) Validity of Agreements within Registered Trade Unions
Notwithstanding any other current legislation, agreements among members of a registered Trade
Union cannot be deemed void or subject to challenge solely due to containing clauses that
restrain trade. However, this provision does not grant civil courts jurisdiction to entertain legal
proceedings aimed at enforcing or seeking damages for breaches of agreements concerning the
conditions under which Trade Union members may sell goods, conduct business, engage in
work, or participate in employment.

QUESTION: 10 0. Discuss the rights under Trade Union.

Ans: 0. (Section 19) Right to Inspect Books of Trade Union- The books of account of a
registered Trade Union and the list of members thereof shall be open to inspection by an office-
bearer or member of the Trade Union at such times as may be provided for in the rules of the
Trade Union.
(Section 20) Rights of minor to membership of Trade Union: Membership Eligibility in
Registered Trade Unions any individual who is at least fourteen years old and employed in a
nonhazardous industry is eligible to become a member of a registered Trade Union, adhering to
the Trade Union's rules. Such members are entitled to all rights afforded by the Trade Union and
can execute all necessary documents and agreements as required by its rules.

QUESTION:10 P. Mention the grounds of disqualifications under Trade Unions.

Ans: P. (Section 21) Disqualification Criteria for Executive and Office-Bearers of Registered
Trade Unions

1. Age Requirement:
- A person must be at least eighteen years old to be eligible to serve as a member of the
executive or any other office-bearer of a registered Trade Union.

2. Criminal Convictions:
- Individuals convicted by an Indian court for offenses involving moral turpitude and sentenced
to imprisonment are disqualified, unless five years have passed since their release from prison.

3. Disqualification by Tribunal:
- The Tribunal may issue a directive disqualifying an individual from serving as a member or
office-bearer of a Trade Union for a specified period.

4. Government Office Holders:

- Members of the Council of Ministers or individuals holding an office of profit (excluding
engagements or employment in an establishment or industry associated with the Trade Union) in

55
the Union or a State government cannot serve as members of the executive or other office-
bearers of a Trade Union.

QUESTION:10 Q. What are the process of Adjudication of disputes of Trade Unions.

Ans:Q. (Section 22)

1. Types of Disputes Covered:

- (a) Disputes between one Trade Union and another.
- (b) Disputes between one or more workers (who are members of a Trade Union) and the
Trade Union concerning registration, administration, management, or election of office-bearers.
- (c) Disputes between one or more workers who have been refused admission as members and
the Trade Union.
- (d) Disputes involving a federation of Trade Unions where authorized office-bearers apply on
behalf of the federation.

2. Application to Tribunal:
- An application must be made in the prescribed manner to the Tribunal that has jurisdiction
over the area where the registered office of the Trade Union(s) is located.

3. Exclusivity of Tribunal Jurisdiction:

- No civil court, other than the Tribunal designated for such matters, has the authority to
entertain suits or other legal proceedings related to disputes specified in sub-section (1).

QUESTION: 10 R. Explain the proportion of office bearers under Trade Union.

Ans: R. (Section 23)
1. Composition of Office-Bearers in Unorganized Sector:
- Not less than one-half of all office-bearers of every registered Trade Union in the unorganised
sector must be individuals actively engaged or employed in an establishment or industry
associated with the Trade Union.
- The appropriate Government can specify exceptions through special or general orders for
specific Trade Unions or classes of Trade Unions. "Unorganized sector" is defined by the
appropriate Government through notification.

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2. Composition of Office-Bearers Generally:
- Except as provided in sub-section (1), all office-bearers of a registered Trade Union, with the
exception of not more than one-third of the total number of office-bearers or five, whichever is
less, must be individuals actively engaged or employed in the establishment or industry
connected with the Trade Union.
- For clarification, individuals who have retired or been retrenched are not considered outsiders
when determining eligibility to hold office in a Trade Union.

QUESTION: 10 S. Explain the procedure prescribed under the Code for change of Name,
amalgamation, notice of change and its effect.
Ans: S. (Section 24 )

1. Change of Name of Registered Trade Union:

- Any registered Trade Union may change its name with the consent of not less than two-thirds
of its total members, subject to the provisions of sub-section (3).
- The Registrar must be notified in writing of every change of name, signed by the secretary
and seven members of the Trade Union initiating the change.

2. Amalgamation of Registered Trade Unions:

- Two or more registered Trade Unions may be amalgamated in accordance with prescribed
procedures.
- Notice of amalgamation, signed by the secretary and seven members of each Trade Union
involved, must be sent to the Registrar.

3. Registrar's Actions and Prohibitions:

- If the proposed new name of a Trade Union is identical to an existing registered Trade Union
or too similar to deceive the public, the Registrar can refuse registration of the new name.
- Upon satisfying the requirements of the Code for change of name or amalgamation, the
Registrar shall register these changes.

4. Legal Effects:
- Changes in the name of a registered Trade Union do not affect its existing rights or
obligations, and legal proceedings can continue under the new name as they would have under
the former name.
- Amalgamation of Trade Unions does not undermine the rights of the individual Trade Unions
or their creditors.

5. Effective Date:

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 - The change of name or amalgamation takes effect from the date of registration by the
Registrar.

QUESTION:10 T. Explain Dissolution.

Ans: T. (Section 25)

1. Notice of Dissolution:
- When a registered Trade Union is dissolved, a notice of the dissolution, signed by seven
members and the secretary, must be sent to the Registrar within fourteen days of the dissolution.
- The Registrar will register the dissolution if satisfied that it has been carried out according to
the Trade Union's rules. The dissolution will take effect from the date of such registration.

2. Distribution of Funds:
- If the dissolution of a registered Trade Union is registered and the Trade Union's rules do not
specify how the funds should be distributed upon dissolution, the Registrar will distribute the
funds among the members in a manner prescribed by regulation.

QUESTION:10 U. Write a note on Annual Returns.

Ans: U. (Section 26)

1. Annual Reporting Requirements:

- Every registered Trade Union must forward annually to the Registrar, by the prescribed date,
a general statement in the prescribed form. This statement, audited as specified, should detail all
receipts and expenditures for the year ending on the 31st of December, as well as the assets and
liabilities as of that date.
- Along with this general statement, the Trade Union must also forward a statement showing
any changes in office-bearers during the year and a copy of the updated rules of the Trade Union.

2. Notification of Rule Changes:

- Any alteration made to the rules of a registered Trade Union must be sent to the Registrar
within fifteen days of the change.

3. Inspection of Documents:
- To examine the documents referred to in section 1(a) and (b) and section 2, the Registrar or
an authorised officer may inspect the certificate of registration, account books, registers, and
other relevant documents at the Trade Union's registered office. Alternatively, they may require

58
the production of these documents at a specified place, provided it is within fifteen kilometres of
the Trade Union's registered office.

QUESTION: 10 V. Briefly explain “Recognition of Trade Unions at Central and State

level.”
Ans: V. (Section 27)

1. Central Trade Union Recognition:

- If the Central Government deems it necessary or expedient to recognise a Trade Union or a
federation of Trade Unions as a Central Trade Union at the national level, it may do so in the
prescribed manner and for the prescribed purposes. Any disputes related to such recognition will
be resolved by an authority designated by the Central Government in the prescribed manner.

2. State Trade Union Recognition:

- If the State Government deems it necessary or expedient to recognise a Trade Union or a
federation of Trade Unions as a State Trade Union at the state level, it may do so in the
prescribed manner and for the prescribed purposes. Any disputes related to such recognition will
be resolved by an authority designated by the State Government in the prescribed manner.

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 LABOUR LAWS- I
(The Industrial Relation Code and The Code on
Wages)
(DESCRIPTIVE NOTES)

Unit-I

Lecture 1

QUESTION:1 . What do you mean by “Industrial Relation”? Discuss the Indian labour
policy explaining how far it has been successful in resolving relevant labour problems.

Ans:. Industrial Relations and Indian Labour Policy: Industrial Relations refers to the
relationship between employers, employees, and the government in the context of the workplace.
It encompasses the interactions and negotiations between these entities concerning employment
conditions, labor rights, wages, working hours, and workplace safety. Industrial relations aim to
maintain harmony and cooperation, resolve conflicts, and promote fair labor practices. It
involves collective bargaining, dispute resolution mechanisms, and the formulation of policies
and laws to protect the interests of both workers and employers.

Evolution of Indian Labour Policy: Indian labor policy has evolved significantly over the
years, especially post-independence, to address the complexities of industrial relations. The
primary objectives of India's labor policy include ensuring fair wages, improving working
conditions, promoting industrial peace, and fostering economic growth. The policy framework is
influenced by socio-economic, political, and constitutional imperatives.

1. Pre-Independence Era:

- Labor policies were primarily aimed at improving labor conditions with limited emphasis on
social justice.

- The colonial government’s approach was more regulatory than developmental, focusing on
maintaining order rather than promoting worker welfare.

2. Post-Independence Developments:

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 - Post-independence, the Indian government adopted a more proactive approach towards labor
welfare and industrial relations.

- The Constitution of India, through its Directive Principles of State Policy, laid down the
foundation for labor policies aimed at promoting social justice and improving the socio-
economic conditions of workers (Articles 39, 41, 43, 43A, etc.).

3. Five-Year Plans:

- Successive Five-Year Plans emphasized planned development and rapid economic growth,
considering labor welfare as a crucial component.

- These plans focused on increasing employment opportunities, improving working conditions,

and promoting industrial peace.

Key Features of Indian Labour Policy

1. Protective Legislation:

- Various laws were enacted to protect workers' rights, such as the Factories Act, Minimum
Wages Act, Industrial Disputes Act, and Employees’ State Insurance Act.

- These laws aimed to regulate working hours, ensure fair wages, provide social security, and
establish mechanisms for dispute resolution.

2. Promoting Industrial Peace:

- The government established mechanisms like conciliation, arbitration, and adjudication to

resolve industrial disputes.

- Labor courts and tribunals were set up to adjudicate conflicts and ensure justice.

3. Social Security Measures:

- Policies were implemented to provide social security benefits such as health insurance,
provident fund, and pension schemes.

- Initiatives like the Employees’ State Insurance Scheme (ESIS) and Employees’ Provident
Fund (EPF) were introduced to offer financial security to workers.

4. Labor Welfare Programs:

- Various welfare programs were launched to improve the quality of life of workers, including
housing schemes, educational facilities for workers' children, and healthcare services.

- The government promoted skill development and vocational training to enhance workers'
employability.

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5. Encouraging Collective Bargaining:

- The government encouraged the formation of trade unions and recognized their role in
collective bargaining.

- Policies were formulated to ensure that workers had a voice in negotiating employment terms
and conditions.

Successes and Challenges:

1. Improved Working Conditions:

- Significant improvements in working conditions, including regulated working hours, safer

workplaces, and better wages.

- Enhanced social security measures have provided financial stability to workers and their
families.

2. Reduction in Industrial Disputes:

- The establishment of dispute resolution mechanisms has led to a reduction in strikes and
lockouts.

- Industrial peace has been promoted through effective conciliation and adjudication processes.

3. Increased Worker Participation:

- Policies have empowered workers to participate in decision-making processes through trade

unions and collective bargaining.

- Workers now have a platform to voice their grievances and negotiate better terms of
employment.

4. Social Justice and Equity:

- Labor policies have contributed to promoting social justice and reducing socio-economic
disparities.

- Welfare programs and social security measures have uplifted the living standards of workers.

Challenges:

1. Implementation Gaps:

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 - Despite comprehensive legislation, implementation at the grassroots level remains a
challenge.

- Corruption, bureaucratic inefficiencies, and lack of awareness among workers hinder

effective enforcement.

2. Informal Sector Issues:

- A significant portion of the workforce is employed in the informal sector, where labor laws
are often not enforced.

- Ensuring fair labor practices and social security for informal sector workers remains a major
challenge.

3. Globalization and Liberalization:

- Economic liberalization and globalization have led to changes in labor dynamics, with
increased contractual and casual employment.

- Ensuring job security and fair wages in a liberalized economy presents new challenges for
labor policy.

4. Technological Advancements:

- Rapid technological advancements and automation pose challenges for employment and skill
development.

- The labor policy needs to adapt to the changing nature of work and address issues related to
job displacement and skill mismatch.

Conclusion: Indian labor policy has made significant strides in improving working conditions,
promoting industrial peace, and ensuring social justice for workers. However, challenges remain
in terms of implementation, addressing informal sector issues, and adapting to economic and
technological changes. Continuous efforts are required to refine labor policies, enhance
enforcement mechanisms, and ensure that the benefits of economic growth are equitably
distributed among all sections of the workforce. The ongoing evolution of industrial
jurisprudence will play a crucial role in achieving these objectives and fostering a harmonious
and productive industrial environment.

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 Lecture 2

QUESTION: 2. Discuss the meaning, history and evolution of Industrial Jurisprudence.

Ans: . Introduction: Industrial jurisprudence is a specialized branch of law that deals with the
regulation of relations between employers, employees, and the government in the context of
industrial operations. It encompasses a wide range of legal principles, statutes, and case laws
aimed at ensuring fair labor practices, protecting workers' rights, and promoting harmonious
industrial relations. The evolution of industrial jurisprudence has been instrumental in
transforming the dynamics of the workplace, especially in the aftermath of the Industrial
Revolution and the subsequent socio-economic changes.

Historical Background: The origins of industrial jurisprudence can be traced back to the
Industrial Revolution, a period marked by significant technological advancements and the rise of
factory-based production systems. This era brought about profound changes in the nature of
work, leading to increased exploitation of workers, poor working conditions, and heightened
labor unrest. Initially, the legal framework was ill-equipped to address these issues, with the
traditional master-servant relationship heavily skewed in favor of employers.

Evolution of Industrial Jurisprudence

1. Early Developments:

- The early stages of industrial jurisprudence were characterized by minimal state intervention,
with the emphasis on laissez-faire principles and freedom of contract.

- As labor unrest grew, the need for legal intervention became apparent, leading to the
enactment of protective labor legislation aimed at improving working conditions and curbing
exploitation.

2. Post-Industrial Revolution:

- The expansion of the factory system and the growth of the working class prompted further
legislative measures, focusing on regulating working hours, ensuring minimum wages, and
improving workplace safety.

- The introduction of collective bargaining rights and the recognition of trade unions marked
significant milestones in the evolution of industrial jurisprudence.

3. Post-Independence Era:

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 - In countries like India, the post-independence period witnessed the consolidation of industrial
jurisprudence, driven by constitutional mandates and socio-economic objectives.

- The Indian Constitution, particularly through its Directive Principles of State Policy, laid the
groundwork for comprehensive labor laws aimed at promoting social justice and economic
equity.

Core Principles of Industrial Jurisprudence

1. Protection of Workers' Rights:

- Industrial jurisprudence seeks to protect workers from unfair labor practices, ensuring their
right to fair wages, reasonable working hours, and safe working conditions.

- Legislation such as the Factories Act, Minimum Wages Act, and the Employees’ State
Insurance Act are pivotal in safeguarding workers' rights.

2. Promotion of Industrial Peace:

- Maintaining industrial peace and harmony is a key objective, achieved through mechanisms for
dispute resolution, including conciliation, arbitration, and adjudication.

- The establishment of labor courts and industrial tribunals plays a crucial role in resolving
conflicts and fostering cooperative industrial relations.

3. Social Security and Welfare:

- Industrial jurisprudence encompasses provisions for social security and welfare, including
health insurance, provident funds, and pension schemes, aimed at ensuring workers' financial
stability and well-being.

- Programs such as the Employees’ Provident Fund (EPF) and Employees’ State Insurance
Scheme (ESIS) are integral components of this framework.

4. Balancing Interests:

- A fundamental principle of industrial jurisprudence is the balancing of interests between

employers and employees, ensuring that the rights and responsibilities of both parties are fairly
addressed.

- This includes regulating the terms of employment, protecting against unfair dismissal, and
promoting collective bargaining.

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Role of Judiciary and Legislature

1. Judicial Interpretation:

- The judiciary has played a pivotal role in interpreting labor laws and shaping industrial
jurisprudence through landmark judgments that have redefined employer-employee relations.

- Courts have consistently upheld the principles of social justice and workers' rights,
contributing to the development of a fair and equitable industrial legal framework.

2. Legislative Framework:

- Legislatures have enacted a comprehensive set of laws governing industrial relations,

addressing various aspects such as wage regulation, working conditions, social security, and
dispute resolution.

- Continuous legislative reforms are undertaken to adapt to changing economic conditions,

technological advancements, and evolving labor dynamics.

Challenges and Future Directions

1. Implementation Gaps:

- Despite robust legal frameworks, the effective implementation of labor laws remains a
challenge due to bureaucratic inefficiencies, corruption, and lack of awareness among workers.

- Strengthening enforcement mechanisms and ensuring compliance are critical to bridging

these gaps.

2. Informal Sector:

- A significant portion of the workforce in developing countries like India is employed in the
informal sector, where labor laws are often not enforced.

- Extending legal protections and social security benefits to informal sector workers is essential
for inclusive industrial development.

3. Globalization and Technological Change:

- Globalization and rapid technological advancements have transformed labor markets, leading
to new challenges such as job displacement, contractual employment, and gig economy
dynamics.

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 - Industrial jurisprudence must evolve to address these challenges, ensuring that labor laws
remain relevant and effective in the modern economic context.

4. Sustainable Development:

- The future of industrial jurisprudence must align with the principles of sustainable
development, balancing economic growth with social equity and environmental protection.

- Policies promoting green jobs, fair labor practices, and corporate social responsibility are
vital for achieving sustainable industrial development.

Conclusion: Industrial jurisprudence is a dynamic and evolving field that plays a critical role in
regulating the complex relationships between employers, employees, and the state. By promoting
fair labor practices, ensuring social justice, and fostering industrial peace, it contributes
significantly to the overall socio-economic development of a society. As economies and labor
markets continue to evolve, industrial jurisprudence must adapt to new realities, ensuring that it
remains a robust framework for protecting workers' rights and promoting harmonious industrial
relations.

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 Lecture 3

QUESTION: 3. Discuss the Evolution and Progress of Labor Welfare Legislation in India
Throughout the Twentieth Century.

Ans: The twentieth century was a transformative period for labor welfare legislation in India.
The evolution of these laws reflects the socio-economic changes and the growing recognition of
workers' rights. This period saw the shift from minimal regulation to comprehensive welfare
measures aimed at improving working conditions, ensuring fair wages, and protecting labor
rights.

Early Twentieth Century: Initial Legislative Efforts: At the dawn of the twentieth century,
India was under British colonial rule, and labor conditions were generally poor. Early legislative
efforts were mostly reactive, addressing specific issues rather than forming part of a cohesive
labor policy.

1. The Factories Act of 1881 and Amendments:

- The Factories Act of 1881 was one of the earliest attempts to regulate labor conditions in
factories. It primarily focused on child labor, limiting working hours and ensuring basic health
and safety measures.

- Subsequent amendments in 1891 and 1911 expanded the scope to include women workers
and introduced further safety regulations.

2. The Mines Act of 1901:

- This act aimed to improve working conditions in the mining sector, addressing safety
standards and regulating the employment of women and children.

3. The Workmen’s Compensation Act of 1923:

- Marking a significant step forward, this act required employers to provide compensation to
workers for injuries sustained during employment, emphasizing the need for employer
responsibility towards worker safety.

The Interwar Period: Growing Awareness and Legal Framework

The interwar period saw increased labor unrest and the rise of organized labor movements,
which led to more comprehensive legislative actions.

1.The Trade Unions Act of 1926:

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 - This act legalized the formation of trade unions and protected their rights, allowing workers
to collectively bargain for better conditions and wages. It was a critical step towards recognizing
the collective power of the workforce.

2. The Payment of Wages Act of 1936:

- This act aimed to prevent unauthorized deductions and delays in wage payments, ensuring
timely and fair remuneration for workers.

Post-Independence Era: A Focus on Welfare and Rights

With India's independence in 1947, the focus shifted to building a nation based on principles of
social justice and equality. The Constitution of India, adopted in 1950, played a pivotal role in
shaping labor welfare policies.

1. Constitutional Mandates:

- The Directive Principles of State Policy in the Constitution laid down the framework for labor
welfare, emphasizing fair wages, decent working conditions, and social security.

- Articles 39, 41, 42, 43, and 43A specifically directed the state to ensure the welfare of
workers.

2. The Factories Act of 1948:

- This comprehensive act replaced earlier versions and aimed at regulating labor conditions in
factories, including health, safety, and welfare provisions. It also introduced stricter regulations
on working hours and conditions for women and young persons.

3. The Employees' State Insurance Act of 1948:

- This act provided for social security and health insurance to workers, ensuring medical care
and financial assistance in cases of sickness, maternity, and employment-related injuries.

4. The Industrial Disputes Act of 1947:

- Aimed at preventing and resolving industrial disputes, this act introduced mechanisms for
mediation, arbitration, and adjudication of labor conflicts. It was crucial for maintaining
industrial peace and harmony.

Mid to Late Twentieth Century: Expansion and Consolidation

The latter half of the twentieth century saw further expansion and consolidation of labor welfare
legislation, with the government continuing to introduce laws aimed at protecting worker rights
and improving their socio-economic conditions.

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1. The Minimum Wages Act of 1948:

- This act mandated the fixing of minimum wages in various industries, ensuring that workers
received fair remuneration for their labor.

2. The Maternity Benefit Act of 1961:

- This act provided for maternity leave and other benefits for women workers, promoting
gender equality and protecting the health and welfare of female employees.

3. The Payment of Bonus Act of 1965:

- This act ensured that workers received a share of the profits of their respective industries,
fostering a sense of ownership and participation among employees.

4. The Contract Labour (Regulation and Abolition) Act of 1970:

- This act aimed to regulate the employment of contract labor and provide for its abolition in
certain cases, ensuring better conditions and security for contract workers.

5. The Bonded Labour System (Abolition) Act of 1976:

- This act aimed at eradicating the bonded labor system, freeing millions from debt bondage
and ensuring their rights and dignity.

6. The Equal Remuneration Act of 1976:

- This act mandated equal pay for equal work, irrespective of gender, promoting gender
equality in the workplace.

Challenges and Reforms

Despite the comprehensive legal framework, several challenges remained, including

implementation gaps, informal sector issues, and the need for continuous reforms to address the
changing dynamics of labor markets.

1. Implementation Challenges:

- Ensuring effective implementation and enforcement of labor laws remained a significant

challenge due to bureaucratic inefficiencies, corruption, and lack of awareness among workers.

2. Informal Sector:

- A large portion of the Indian workforce is employed in the informal sector, where labor laws
are often not enforced, leaving workers vulnerable and unprotected.

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3. Economic Liberalization:

- The economic reforms of the 1990s introduced new challenges, such as the rise of contractual
and gig economy jobs, requiring adaptations in labor legislation to protect these workers' rights.

4. Technological Advancements:

- Rapid technological changes and automation posed new challenges for employment and skill
development, necessitating continuous updates to labor policies.

Conclusion: The twentieth century saw significant progress in labor welfare legislation in India,
transforming the landscape from minimal regulation to comprehensive legal protections for
workers. While considerable strides have been made in improving working conditions, ensuring
fair wages, and promoting social security, continuous efforts are required to address ongoing
challenges and adapt to new economic realities. The evolution of labor welfare legislation
reflects India's commitment to social justice and the well-being of its workforce, aiming for a
balanced and equitable industrial development.

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 Lecture 4

QUESTION: 4. Provide an overview of the labour problems in India and discuss the labour
policies that have been implemented to address these issues? Additionally, please mention
some specific labour policies in India.

Ans: Labour Problems in India: India's labour sector faces numerous challenges, reflecting
the country's diverse economy and large population. Some of the key problems include:

1. Informal Employment: A significant portion of India's workforce is employed in the

informal sector, which lacks job security, benefits, and proper working conditions. Informal
workers often face exploitation and have limited access to social security measures.

2. Unemployment and Underemployment: Despite economic growth, India struggles with high
unemployment rates and underemployment, especially among youth and rural populations. This
is exacerbated by the mismatch between the skills of the workforce and the requirements of
employers.

3. Low Wages and Income Inequality: Many workers, particularly in the informal sector,
receive wages that are insufficient to meet their basic needs. Wage disparities between different
sectors and regions contribute to income inequality.

4. Poor Working Conditions: Unsafe and unhealthy working environments are prevalent,
especially in sectors such as construction, mining, and manufacturing. Lack of proper safety
measures often leads to workplace accidents and health issues.

5. Child Labour: Despite legal prohibitions, child labour remains a significant problem in India,
driven by poverty, lack of education, and socio-economic factors. Children are often found
working in hazardous conditions.

6. Labour Exploitation and Rights Violations: Workers frequently face exploitation, including
long working hours, lack of overtime pay, and harassment. Migrant workers are particularly
vulnerable to such abuses.

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7. Industrial Disputes and Strikes: Conflicts between employers and employees, often due to
poor working conditions, low wages, and inadequate benefits, lead to strikes and industrial
disputes, disrupting productivity.

Labour Policies in India: To address these challenges, the Indian government has implemented
various labour policies and reforms over the years. These policies aim to improve working
conditions, ensure fair wages, and provide social security to workers. Some of the key labour
policies and initiatives include:

1. Labour Codes: In 2020, the Indian government consolidated 29 central labour laws into four
comprehensive labour codes:

- Code on Wages: Aims to ensure minimum wages and timely payment of wages to all
employees.

- Industrial Relations Code: Focuses on simplifying and codifying laws related to industrial
disputes and relations.

- Code on Social Security: Extends social security benefits to workers in both the organized
and unorganized sectors.

- Occupational Safety, Health and Working Conditions Code: Ensures safe and healthy
working conditions for workers across various industries.

2. Minimum Wages Act, 1948: Establishes minimum wage rates for different sectors and
regions, ensuring that workers receive fair compensation.

3. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005:

Provides at least 100 days of guaranteed wage employment per year to rural households, aiming
to enhance livelihood security.

4. Factories Act, 1948: Regulates the working conditions in factories, including provisions for
health, safety, and welfare of workers.

5. Child Labour (Prohibition and Regulation) Act, 1986: Prohibits the employment of
children in certain hazardous occupations and regulates the working conditions of children in
other sectors.

6. Employees' Provident Fund and Miscellaneous Provisions Act, 1952: Provides social
security benefits, including retirement savings, for employees in the organized sector.

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7. Employees' State Insurance Act, 1948: Provides medical, cash, maternity, disability, and
dependent benefits to employees in the organized sector.

8. Unorganised Workers' Social Security Act, 2008: Aims to provide social security and
welfare measures for workers in the unorganized sector.

9. Labour Welfare Funds: Established at both central and state levels to provide welfare
measures, such as housing, education, and healthcare, for workers in certain sectors.

10. Skill Development Initiatives: Various programs and schemes, such as the Pradhan Mantri
Kaushal Vikas Yojana (PMKVY), aim to enhance the skills of the workforce, thereby improving
employability and addressing the skills mismatch.

Conclusion: India's labour problems are multifaceted, requiring comprehensive and well-
coordinated policy measures. The labour policies implemented by the government aim to address
these issues by improving working conditions, ensuring fair wages, and extending social security
benefits to all workers. However, effective implementation and enforcement of these policies
remain critical to achieving tangible improvements in the lives of India's labour force.
Continuous efforts, including policy reforms, awareness campaigns, and collaboration between
government, employers, and workers, are essential to creating a more equitable and productive
labour market in India.

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 Lecture 5

QUESTION: 5. Discuss “Indian Constitution and Labour Policy in India.”

Ans.

The Constitution of India: Foundation for Labor Policies: The Constitution of India is the
supreme law of the land, serving as the bedrock for all legislative, executive, and judicial
functions, including the formulation and implementation of labor policies. The constitutional
framework is primarily derived from three key elements: the Preamble, the Fundamental Rights,
and the Directive Principles of State Policy. Together, these elements provide a comprehensive
guide for developing labor policies that aim to promote social justice, protect human rights, and
ensure equitable working conditions.

The Preamble: Philosophies and Principles: The Preamble to the Constitution of India outlines
the fundamental philosophies and principles that underpin the nation's governance. It declares
India to be a sovereign, socialist, secular, and democratic republic committed to securing justice,
liberty, equality, and fraternity for its citizens. These principles are crucial in shaping labor
policies, particularly in promoting social justice and equality in the workplace.

- Social Justice: The commitment to social justice requires the government to create policies that
protect the rights of workers, ensure fair treatment, and eliminate exploitation. This includes
enacting laws that prevent discrimination, ensure fair wages, and provide for the welfare of
workers.

- Equality: The principle of equality mandates that all workers, regardless of their background,
should have equal opportunities and rights. This has led to the implementation of policies aimed
at eradicating child labor, promoting gender equality, and protecting marginalized groups in the
workforce.

Fundamental Rights: Protection of Human Rights and Dignity: The Fundamental Rights
enshrined in the Constitution (Articles 12-35) guarantee essential human rights and freedoms to
all citizens, which are critical for safeguarding the interests of workers. Key provisions related to
labor include:

- Right to Equality (Articles 14-18): These articles ensure equality before the law and prohibit
discrimination on grounds of religion, race, caste, sex, or place of birth. This framework supports
labor policies that promote equal pay for equal work and protect workers from discriminatory
practices.

- Right to Freedom (Articles 19-22): These articles provide the right to freedom of speech and
expression, assembly, association, movement, residence, and profession. For workers, this

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translates to the right to form unions, engage in collective bargaining, and participate in strikes
and demonstrations.

- Right against Exploitation (Articles 23-24): These articles prohibit human trafficking, forced
labor, and child labor in hazardous conditions. They form the basis for laws and policies that aim
to eliminate bonded labor and ensure safe working environments for children.

Directive Principles of State Policy: Roadmap for Progressive Labor Policies: The Directive
Principles of State Policy (Articles 36-51) serve as guidelines for the state to formulate and
implement policies aimed at ensuring social and economic welfare. Although these principles are
non-justiciable, meaning they are not enforceable by courts, they are fundamental in the
governance of the country. Relevant provisions include:

- Article 39: This article directs the state to ensure that men and women have equal rights to an
adequate means of livelihood, and that the health and strength of workers are not abused. It also
emphasizes preventing the exploitation of workers and children.

- Article 41: This article directs the state to make effective provisions for securing the right to
work, education, and public assistance in cases of unemployment, old age, sickness, and
disablement.

- Article 42: This article mandates the provision of just and humane conditions of work and
maternity relief.

- Article 43: This article encourages the state to secure a living wage, decent standard of life,
and social and cultural opportunities for all workers.

- Article 43A: This article promotes the participation of workers in the management of
industries, aiming to foster a sense of ownership and involvement in the workplace.

Concurrent List: Dual Governance in Labor Matters: Recognizing the complex and diverse
nature of labor issues in India, the Constitution places labor under the Concurrent List (List III of
the Seventh Schedule). This means that both the Central and State Governments have the
authority to legislate on labor matters. This dual governance structure accommodates regional
variations and ensures that labor policies can be tailored to meet local needs while maintaining a
cohesive national framework.

- Central Legislation: The Central Government enacts comprehensive labor laws that set
minimum standards and provide a uniform regulatory framework across the country. Examples

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include the Industrial Disputes Act, 1947, the Minimum Wages Act, 1948, and the recent labor
codes.

- State Legislation: State Governments have the flexibility to legislate on labor issues specific to
their regions. This allows for the accommodation of local economic conditions, cultural factors,
and industry-specific needs. States can also implement additional measures to enhance worker
protection and welfare beyond the minimum standards set by central laws.

Conclusion: The Constitution of India, through its Preamble, Fundamental Rights, and Directive
Principles of State Policy, provides a robust framework for the formulation and implementation
of labor policies. These constitutional provisions ensure that labor policies promote social
justice, protect human rights, and provide a roadmap for progressive development. The
placement of labor under the Concurrent List allows for comprehensive governance,
accommodating regional nuances while maintaining national standards. This dual approach
ensures that labor policies are both inclusive and effective, catering to the diverse needs of
India's vast and varied workforce.

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 Lecture 6

QUESTION:6 . Define ILO and mention its objectives and roles.

Ans: The International Labour Organization (ILO) is a specialized agency of the United Nations
dedicated to addressing labor issues on a global scale. It plays a pivotal role in promoting
international labor standards, ensuring social protection, and enhancing work opportunities for
individuals across the world. Here’s an in-depth look at the ILO’s purpose, principles, and
operations:

Foundation and Principle

The ILO was founded in 1919, in the aftermath of World War I, with the core belief that
universal and lasting peace can only be achieved if it is based on social justice. This principle
remains central to the organization’s mission, guiding its efforts to improve labor conditions
worldwide.

Mission and Objectives

The ILO’s mission is multifaceted, encompassing several key objectives:

1. Promoting Rights at Work: The ILO advocates for the protection and promotion of
workers' rights. This includes the right to freedom of association, the right to collective
bargaining, and the elimination of forced labor, child labor, and discrimination in
employment.
2. Encouraging Decent Employment Opportunities: The organization works to create
decent and productive employment opportunities for all. It aims to ensure that jobs
provide fair income, security in the workplace, and social protection for families.
3. Enhancing Social Protection: The ILO promotes the development of comprehensive
social protection systems that provide support for people throughout their lives,
particularly in times of need. This includes access to healthcare, unemployment benefits,
and pensions.
4. Strengthening Dialogue on Work-Related Issues: The ILO facilitates dialogue among
governments, employers, and workers to build consensus on labor issues. This tripartite
approach is fundamental to its operations, ensuring that all stakeholders have a voice in
the development of labor policies and standards.

Roles of ILO:

The International Labour Organization (ILO) plays several key roles in promoting social justice
and internationally recognized labor standards. Some of its primary functions and roles include:

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1. Setting International Labor Standards: The ILO develops and promotes international labor
standards in the form of conventions and recommendations. These standards cover a wide range
of issues such as freedom of association, forced labor, child labor, non-discrimination in
employment, and occupational safety and health.

2. Promoting Decent Work: The ILO promotes opportunities for women and men to obtain
decent and productive work in conditions of freedom, equity, security, and human dignity. This
includes advocating for fair wages, safe working conditions, and social protection for workers.

3. Providing Technical Assistance and Capacity Building: The ILO provides technical
assistance and advisory services to member states to help them implement and enforce
international labor standards and policies. This assistance ranges from policy advice to practical
support for improving labor administration and enforcement mechanisms.

4. Research and Policy Development: The ILO conducts research and analysis on labor and
employment issues globally. It publishes reports, statistics, and studies that contribute to
understanding labor market trends, challenges, and policy responses.

5. Promoting Social Dialogue: The ILO fosters dialogue and collaboration among governments,
employers, and workers through tripartite consultations and partnerships. This helps in
addressing labor market challenges, resolving disputes, and advancing social and economic
development goals.

6. Monitoring and Reporting: The ILO monitors the implementation of international labor
standards by member states through regular reporting and review processes. It also provides
guidance and support for improving compliance with these standards.

7. Advocacy and Awareness: The ILO advocates for the rights of workers globally and raises
awareness about labor issues, including promoting the importance of decent work, social justice,
and sustainable development.

Overall, the role of the ILO is to promote social justice and improve working conditions
worldwide through international cooperation, standards-setting, technical assistance, and
advocacy for decent work for all.

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 Lecture 7

QUESTION: 7 A. Define what a trade union is, provide some historical background on
trade unions, and discuss the trade union movements in India? Additionally, name two
important trade unions at the national level in India.

Ans: Definition of Trade Union: A trade union, also known as a labor union, is an organized
association of workers formed to protect and advance their rights and interests. Trade unions aim
to ensure fair wages, safe working conditions, reasonable working hours, and other benefits for
their members. They engage in collective bargaining with employers, represent workers in
disputes, and advocate for labor rights and policies that benefit the workforce.

“Trade Union” is defined under The Industrial Relations Code, 2020 as any combination,
whether temporary or permanent, formed primarily for the purpose of regulating the relations
between workers and employers or between workers and workers, or between employers and
employers, or for imposing restrictive conditions on the conduct of any trade or business, and
includes any federation of two or more Trade Unions: Provided that the provisions of Chapter III
of this Code shall not affect—

(i) any agreement between partners as to their own business; or

(ii) any agreement between an employer and those employed by him as to such employment;
or
(iii) any agreement in consideration of the sale of the goodwill of a business or of instruction
in any profession, trade or handicraft;

Historical Background of Trade Unions: The origins of trade unions can be traced back to the
early industrial era in the 18th and 19th centuries. With the advent of industrialization, workers
faced harsh conditions, long hours, and minimal pay. In response, they began to organize
themselves to collectively negotiate better terms of employment.

- Early Beginnings: The first known trade unions emerged in Great Britain during the late 18th
century. The Combination Acts of 1799 and 1800, which prohibited workers from banding
together, were a reaction to these early efforts. However, these laws were repealed in 1824,
leading to the growth of trade unionism.

- Growth in the 19th Century: Throughout the 19th century, trade unions grew in strength and
numbers, particularly in Britain and the United States. Landmark events such as the Tolpuddle
Martyrs case in 1834 and the establishment of the American Federation of Labor (AFL) in 1886
were significant in shaping the labor movement.

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Trade Unions in India: The trade union movement in India has a rich and complex history,
deeply intertwined with the country's struggle for independence and its socio-economic
development.

- Early 20th Century: The first organized trade union in India, the Madras Labour Union, was
formed in 1918. This period saw the emergence of leaders like B.P. Wadia and Lala Lajpat Rai,
who championed workers' rights.

- 1920s and 1930s: The All India Trade Union Congress (AITUC) was established in 1920,
marking the beginning of a more structured labor movement. The AITUC played a significant
role in mobilizing workers and advocating for labor laws. During this period, the Indian labor
movement was also influenced by the broader nationalist struggle against British rule.

- Post-Independence Era: After India gained independence in 1947, the labor movement
continued to grow. The government implemented various labor laws and policies aimed at
improving workers' conditions. However, the movement also faced challenges such as political
interference and internal divisions.

Trade Union Movements in India: The trade union movement in India has undergone several
phases, each marked by distinct challenges and achievements.

- Early Phase (1918-1947): The initial phase of the trade union movement was characterized by
the formation of unions and the struggle for recognition. This period saw numerous strikes and
protests aimed at securing basic rights for workers. The Trade Unions Act of 1926 was a
significant milestone, providing legal recognition to trade unions and outlining their rights and
responsibilities.

- Post-Independence Phase (1947-1980s): The period following independence was marked by

rapid industrialization and the establishment of a mixed economy. The government enacted
several labor laws, including the Industrial Disputes Act (1947) and the Factories Act (1948).
Trade unions played a crucial role in advocating for workers' rights and ensuring the
implementation of these laws.

Liberalization and Beyond (1990s-Present): The economic liberalization of the 1990s brought
significant changes to the Indian labor market. The shift towards a market-oriented economy led
to challenges such as job insecurity, informalization of labor, and a decline in union membership.
In response, trade unions have had to adapt to the changing landscape, focusing on issues such as

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labor law reforms, social security for informal workers, and the impact of globalization on
employment.

Important Trade Unions at the National Level

1. All India Trade Union Congress (AITUC): Founded in 1920, AITUC is one of the oldest
and largest trade unions in India. It has played a pivotal role in the labor movement, advocating
for workers' rights and social justice. AITUC is affiliated with the Communist Party of India
(CPI) and has a significant presence in various industries, including mining, manufacturing, and
transportation.

2. Indian National Trade Union Congress (INTUC): Established in 1947, INTUC is the trade
union wing of the Indian National Congress. It is one of the largest trade unions in India and has
been influential in shaping labor policies. INTUC advocates for the protection of workers' rights,
fair wages, and social security. It has a wide presence across different sectors, including
agriculture, textiles, and public services.

Conclusion: Trade unions play a crucial role in advocating for the rights and interests of
workers. With a rich historical background, the trade union movement in India has evolved
through various phases, adapting to changing socio-economic conditions. Despite facing
challenges, trade unions like AITUC and INTUC continue to be significant players in the labor
landscape, striving to ensure fair and just working conditions for all workers. The dynamic
nature of labor issues necessitates ongoing efforts to strengthen the trade union movement and
address the evolving needs of the workforce.

QUESTION:7 B. Determine the concept of Trade Unionism and Collective Bargaining with
its merits and demerits.

Ans: Introduction: Trade unionism refers to the collective organization of workers in unions to
advocate for their rights and interests. Originating in the early industrial age, trade unions have
played a crucial role in shaping labor relations, improving working conditions, and promoting
social justice. Their primary goal is to ensure that workers have a unified voice in negotiations
with employers regarding wages, benefits, working conditions, and other employment terms.

Historical Background: The concept of trade unionism dates back to the 18th and 19th
centuries during the Industrial Revolution. As industries grew and labor demand increased,

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workers faced poor working conditions, long hours, and inadequate pay. The need for a
collective voice led to the formation of trade unions, initially illegal and facing strong opposition
from employers and governments. Over time, persistent efforts by workers and unions resulted in
the recognition of labor rights and the legalization of trade unions in many countries.

Collective Bargaining: Collective bargaining is a crucial process through which employers and
trade unions negotiate terms and conditions of employment. This mechanism ensures that
workers have a collective voice in discussions about wages, benefits, working conditions, and
other employment-related matters. By facilitating dialogue and compromise between employers
and employees, collective bargaining aims to promote fair and equitable labor practices.

Historical Context: The roots of collective bargaining can be traced back to the Industrial
Revolution when the rapid growth of factories and industries led to the exploitation of workers.
Poor working conditions, long hours, and low wages were prevalent, prompting workers to band
together to demand better treatment. Over time, the right to collective bargaining became
recognized in many countries, forming a cornerstone of labor law and industrial relations.

Key Components of Collective Bargaining:

1. Negotiation:

- The core of collective bargaining involves negotiations between representatives of the

workers (usually trade unions) and the employers. These discussions cover various aspects such
as pay scales, working hours, health and safety standards, and other workplace policies.

2. Bargaining Agreement:

- The outcome of successful negotiations is a collective bargaining agreement (CBA), a written

contract that outlines the agreed-upon terms and conditions of employment. This document is
legally binding and serves as a reference for both parties.

3. Good Faith Bargaining:

- Both parties are expected to engage in good faith bargaining, meaning they should be willing
to discuss issues openly, make reasonable proposals, and consider the other's position sincerely.

4. Dispute Resolution:

- Collective bargaining agreements often include mechanisms for resolving disputes that may
arise during the term of the contract. This can involve mediation, arbitration, or other forms of
conflict resolution.

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Trade unionism involves the formation of labor unions, which represent workers in negotiations
with employers. Collective bargaining is the process through which these unions negotiate with
employers to establish wages, working conditions, benefits, and other employment terms. Here
are the merits and demerits of trade unionism and the collective bargaining process:

Merits

1. Improved Working Conditions:

- Unions advocate for safer and better working environments, reducing workplace hazards and
improving overall conditions for employees.

2. Better Wages and Benefits:

- Through collective bargaining, unions often secure higher wages and better benefits for their
members compared to non-unionized workers.

3. Job Security:

- Unions help protect workers from arbitrary dismissal and ensure more stable employment,
contributing to a secure workforce.

4. Representation and Advocacy:

- Workers have a collective voice to represent their interests, grievances, and demands, leading
to more balanced power dynamics with employers.

5. Professional Development:

- Unions may offer training and development programs, enhancing the skills and career
prospects of their members.

6. Fair Treatment:

- Unions work towards ensuring that all employees are treated fairly and equitably, promoting
anti-discrimination policies and practices.

Demerits

1. Potential for Strikes and Disruptions:

- Collective bargaining disputes can lead to strikes or work stoppages, disrupting business
operations and potentially harming both workers and employers.

2. Inflexibility:

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 - Union contracts can sometimes lead to rigid work rules and inflexibility in management
decisions, making it harder for companies to adapt to changing market conditions.

3. Cost to Employers:

- Higher wages and benefits negotiated by unions can increase labor costs for employers,
which may impact the overall profitability and competitiveness of a business.

4. Union Dues and Fees:

- Union members are required to pay dues, which can be a financial burden, especially if the
benefits of union membership are not immediately apparent.

5. Conflict with Management:

- The adversarial nature of collective bargaining can sometimes lead to strained relationships
between workers and management, impacting workplace harmony.

6. Exclusivity:

- Union agreements may prioritize the interests of union members over non-unionized
employees, potentially leading to inequality within the workforce.

QUESTION:7 C. State difference between General and Political Funds.

Ans: C. Trade unions, representing the collective voice of workers, are pivotal in ensuring fair
labor practices and worker well-being. To achieve this, they rely on two distinct types of funds:
general funds and political funds. These funds serve different purposes and operate within
specific legal frameworks, playing crucial roles in the functioning and influence of trade unions.

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General Funds: General funds are the backbone of a trade union’s daily operations, primarily
financed through membership fees. They support core activities that directly benefit members
and sustain the union’s essential functions. Key uses of general funds include:

- Negotiating Collective Bargaining Agreements: General funds are used to secure better
wages, benefits, and working conditions for members through negotiations with employers. This
is a fundamental role of trade unions, ensuring that workers have a voice in determining their
terms of employment.

- Providing Legal Support: Trade unions offer legal advice and representation to members
dealing with workplace issues, including grievances, disputes, and unfair dismissals. General
funds finance these legal services, ensuring that members have access to necessary legal
resources.

- Member Engagement: Organizing meetings, workshops, and events is crucial for fostering
solidarity and building collective power among members. General funds are used to cover the
costs of these activities, which are essential for maintaining a strong, engaged membership base.

- Research and Advocacy: Conducting research and advocacy on issues impacting workers’
rights and the broader labor market is another important use of general funds. This includes
studies on labor conditions, economic analysis, and policy advocacy to support the interests of
workers.

Objective of General funds: (Section 15 of The Industrial Relations Code, 2020)

(1) The general funds of a registered Trade Union shall not be spent on any objects other than
such objects as may be prescribed.

(2) A registered 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 such objects as may be prescribed.

(3) No member shall be compelled to contribute to the fund constituted under sub-section (2) 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 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.

(4) The subscriptions payable by the members of the Trade Union shall be such as may be
prescribed.

General funds are essential for a trade union to function effectively and deliver its core services
to members. Their use is subject to strict regulations and transparency measures to ensure

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accountability and responsible financial management, thereby maintaining the trust and support
of the union’s members.

Political Funds: Political funds are specifically dedicated to influencing political processes and
promoting workers' interests in the broader societal sphere. Contributions to these funds are
typically voluntary and subject to specific opt-in procedures. Political funds are used for various
activities that extend the influence of trade unions beyond the workplace. Key uses of political
funds include:

- Supporting Political Candidates and Parties: Political funds are used to back candidates and
parties that align with the trade union’s values and objectives. By supporting pro-labor political
entities, unions aim to ensure that workers’ interests are represented in government.

- Lobbying Government Officials: Advocacy efforts directed at government officials focus on

issues impacting workers’ rights, such as labor laws, social security, and minimum wage
regulations. Political funds enable trade unions to engage in lobbying activities that push for
legislative changes benefiting workers.

- Conducting Political Campaigns: Raising awareness about important worker issues, such as
workplace safety, income inequality, and social justice, is a key function of political funds. These
campaigns aim to inform the public and influence policy decisions in favor of workers.

While political funds play a vital role in advancing worker representation and advocating for pro-
worker policies, their use is often subject to debate and scrutiny. Critics argue that using union
funds for political purposes may infringe upon the rights of members who do not share the
union’s political views. Conversely, proponents contend that political engagement is crucial for
securing legislative and policy changes that benefit all workers, regardless of individual political
affiliations.

Conclusion: In summary, trade unions rely on both general funds and political funds to fulfill
their mission of protecting and promoting workers' rights. General funds support the essential
activities of trade unions, such as negotiating collective agreements, providing legal support,
engaging members, and conducting research and advocacy. Political funds, on the other hand,
are dedicated to influencing political processes and advocating for pro-worker policies. Both
types of funds are integral to the effective functioning and influence of trade unions, ensuring
that workers' voices are heard both within the workplace and in the broader societal context.

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 LECTURE 8

QUESTION: 8. Explain Bi- partite Forums as mentioned under The Industrial Relations
Code, 2020.

Ans: The Industrial Relations Code, 2020, introduced in India, aims to consolidate and simplify
existing labor laws concerning industrial relations. One of the key features of this code is the
establishment of bipartite forums. These forums are designed to foster direct and cooperative
dialogue between employers and employees at the enterprise level, enhancing workplace
harmony and resolving disputes amicably. Here's an overview of bipartite forums under the
Industrial Relations Code:

Definition and Purpose

Bipartite forums are joint consultative bodies composed of representatives from both employers
and employees. The primary purpose of these forums is to promote mutual understanding,
improve industrial relations, and resolve issues through dialogue and negotiation. By
encouraging direct communication, bipartite forums aim to prevent conflicts, improve working
conditions, and enhance productivity.

The Code explains the concept of Bi-partite Forums under the Chapter-II Section 3 as:

Works Committee under the Industrial Relations Code, 2020

Section 3(1) of the Industrial Relations Code, 2020 mandates that any industrial establishment
employing one hundred or more workers, or having employed this number at any time in the
preceding twelve months, must form a Works Committee. The appropriate Government, through
a general or special order, can instruct the employer to set up this committee in a prescribed
manner. The Works Committee must include representatives from both the employer and the
workmen employed in the establishment. The number of workmen representatives must be at
least equal to the number of employer representatives.

Section 3(2) specifies the selection process for the members of the Works Committee. The
representatives of the workmen are to be chosen in a prescribed manner from among the
workmen engaged in the establishment. This selection process should be carried out in
consultation with their trade union, if any, registered under Section 9 of the Industrial Relations
Code, 2020.

Section 3(3) explains the duties of works committee as:

 Promote Amicable Relations: Implement measures to secure and preserve harmony and
good relations between the employer and the workmen.
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  Discuss Common Interests: Provide commentary on matters of mutual interest to both
the employer and the workmen.
 Resolve Differences: Strive to reconcile any significant differences of opinion regarding
such matters.

Grievance Redressal Committee:

Section 4 of the Industrial Relations Code, 2020 gives provisions regarding Grievance
Redressal Committee:

 Grievance Redressal Committees Requirement: Every industrial establishment with

twenty or more workers must establish one or more Grievance Redressal Committees to
resolve disputes arising from individual grievances.
 Committee Composition: The Grievance Redressal Committee must have an equal
number of members representing the employer and the workers, selected in a prescribed
manner.
 Chairperson Rotation: The chairperson of the committee will be chosen from among
the employer and worker representatives, alternating annually.
 Committee Size and Representation: The total number of committee members must not
exceed ten, and there must be adequate representation of women workers, at least
proportional to their representation in the workforce.
 Filing a Grievance: An aggrieved worker can file an application regarding a dispute
with the Grievance Redressal Committee in a prescribed manner within one year from the
date the dispute arises.
 Completion of Proceedings: The Grievance Redressal Committee must complete its
proceedings within thirty days of receiving an application.
 Decision Making: Decisions are based on the majority view of the Committee, provided
more than half of the worker representatives agree. If not, it is deemed that no decision
was reached.
 Appeal Process: An aggrieved worker may appeal the Committee's decision, or lack
thereof, within sixty days to the conciliation officer via their Trade Union.
 Industrial Dispute Definition: Disputes arising from discharge, dismissal, retrenchment,
or termination of an individual worker's services are considered industrial disputes, even
if no other worker or Trade Union is involved.
 Direct Application to Tribunal: Workers can apply directly to the Tribunal for dispute
adjudication after forty-five days from filing an application with the conciliation officer,
giving the Tribunal jurisdiction over the matter.
 Application Deadline: Applications to the Tribunal must be made within two years from
the date of the worker's discharge, dismissal, retrenchment, or termination.

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Objectives and Benefits

The establishment of bipartite forums serves multiple objectives and offers various benefits:

 Enhancing Industrial Relations: By facilitating direct dialogue between employers and

employees, bipartite forums help build trust and cooperation, leading to better industrial
relations.
 Conflict Prevention and Resolution: These forums act as a proactive mechanism to
resolve disputes and grievances at an early stage, thereby preventing escalation into
strikes or lockouts.
 Improving Workplace Environment: Regular interaction and consultation through
bipartite forums contribute to a more harmonious and productive work environment.
 Empowering Workers: Bipartite forums provide workers with a platform to participate
in decision-making processes, ensuring their voices are heard and considered in matters
affecting their work and welfare.
 Cost and Time Efficiency: Resolving issues internally through bipartite forums is often
quicker and less costly than formal legal proceedings.

Bipartite forums under the Industrial Relations Code represent a significant step towards
fostering cooperative industrial relations in India. By providing a structured platform for
dialogue between employers and employees, these forums aim to resolve workplace issues
amicably and enhance overall productivity. Their success, however, hinges on the active and
genuine participation of all stakeholders, adherence to legal guidelines, and a commitment to
maintaining a harmonious work environment.

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 Lecture 10

QUESTION: 10 A. Explain the concept of Trade Union.

Ans: Trade Union Under the Industrial Relations Code, 2020

Definition and Provisions: A Trade Union is defined under the Industrial Relations Code, 2020,
as any combination, whether temporary or permanent, formed primarily for the purpose of
regulating the relations between workers and employers, or between workers and workers, or
between employers and employers, or for imposing restrictive conditions on the conduct of any
trade or business, and includes any federation of two or more Trade Unions.

Key Provisions:

1. Formation and Registration:

- Any seven or more workers of an establishment or industry can form a Trade Union.

- For registration, the application must be made to the Registrar of Trade Unions with the
names, addresses, and occupations of the members making the application, along with the name
of the Trade Union and its rules.

- The Code mandates that at least 10% of the workers or 100 workers, whichever is less,
engaged in the establishment must be members of the Trade Union for it to be registered.

2. Recognition of Trade Unions:

- A Trade Union that has at least 51% of the workers on the muster roll of an establishment as
its members is entitled to be recognized as the sole negotiating union.

- If no Trade Union meets this criterion, a negotiating council consisting of representatives

from various Trade Unions can be formed.

3. Rights and Privileges:

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 - Registered Trade Unions have the right to negotiate with employers on matters concerning
the terms of employment, work conditions, and other related issues.

- Trade Unions can also represent workers in disputes and act as a collective voice to safeguard
workers' interests.

4. Duties and Obligations:

- Trade Unions must submit annual returns to the Registrar, detailing their membership and
financial status.

- They must function democratically, ensuring regular elections and transparency in their
operations and finances.

5. Immunities and Liabilities:

- Trade Unions are granted immunity from civil suits in respect of acts done in furtherance of a
trade dispute, provided such acts are lawful.

- However, they are still liable for any unlawful activities or acts of violence committed in the
name of the Trade Union.

Functions of Trade Unions

1. Collective Bargaining: One of the primary functions of a trade union is to negotiate with
employers on behalf of its members. This includes discussions on wages, working hours,
benefits, workplace safety, and other terms of employment.
2. Representation: Trade unions represent workers in various forums, including grievance and
disciplinary procedures, ensuring that their members' rights are protected and their voices are
heard.
3. Advocacy and Lobbying: Unions advocate for labor-friendly policies and legislation. They
may lobby government bodies to enact laws that improve working conditions, protect jobs, and
enhance workers' rights.
4. Support and Services: Many trade unions provide additional services to their members, such
as legal assistance, training programs, health and welfare benefits, and support during strikes or
industrial actions.
5. Dispute Resolution: Trade unions play a key role in resolving disputes between workers and
employers, often acting as mediators or taking formal action when necessary.

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Types of Trade Unions
1. Craft Unions: Represent workers in a specific trade or craft, such as electricians or plumbers.
These unions are typically organized by skill level or trade specialization.

2. Industrial Unions: Represent all workers in a particular industry, regardless of the specific
nature of their work. Examples include unions in the automotive or steel industries.
3. General Unions: Represent workers from various trades and industries. These unions are not
limited to a specific craft or industry and often have a diverse membership base.
4. White-Collar Unions: Represent professional and clerical employees, such as teachers,
healthcare workers, and office staff.

Challenges Facing Trade Unions

1. Declining Membership: In many countries, trade union membership has been declining due
to various factors, including changes in the labor market, the rise of gig economy jobs, and anti-
union practices by employers.
2. Globalization: The globalization of markets and production has put pressure on trade unions,
as companies can relocate operations to countries with lower labor costs, weakening the
bargaining power of unions.

3. Technological Change: Advances in technology and automation have transformed

workplaces, leading to job losses in some sectors and the need for unions to adapt to new forms
of employment.

4. Legislative and Regulatory Challenges: In some regions, restrictive labor laws and
regulations limit the ability of unions to organize, bargain collectively, and engage in industrial
action.

Case Laws:

1. T.K. Rangarajan vs. Government of Tamil Nadu (2003 AIR 3032):

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 - The Supreme Court highlighted that while Trade Unions have the right to strike, this right is
not absolute and must be exercised reasonably and within the legal framework.

2. Indian Express Newspapers (Bombay) Pvt. Ltd. vs. Employees’ Union (1958 AIR 578):

- The Court emphasized the importance of Trade Unions in representing the collective interests
of workers and ensuring fair labor practices.

3. Bangalore Water Supply and Sewerage Board vs. A. Rajappa (1978 AIR 548):

- This landmark judgment broadened the definition of industry under the Trade Union Act,
thereby expanding the scope of what constitutes a Trade Union and its applicability across
various sectors.

QUESTION:10 B. Elaborate the provisions relevant to Registrar of Trade Unions and

Criteria for registration and the requirements for The Trade Union Registration.
Ans:

 Section 5: Appointment and Powers of Registrar and Other Officials of Trade

Unions
1. Appointment of Officials: The State Government may, by notification, appoint a person as
the Registrar of Trade Unions. Additionally, it may appoint other persons as Additional
Registrar, Joint Registrar, and Deputy Registrar of Trade Unions. These officials will exercise
powers and perform duties as specified by the State Government through notifications.
2. Powers and Duties: According to any order issued by the State Government, if an Additional
Registrar, Joint Registrar, or Deputy Registrar exercises the powers and performs the duties of
the Registrar within the area where the registered office of a Trade Union is located, that official
will be considered the Registrar in relation to that Trade Union for the purposes of this Code.

 Section 6: Registration of Trade Unions

1. Application Process: A minimum of seven members of a Trade Union can apply for
registration by subscribing to the Trade Union's rules and complying with the provisions of this
Code.

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2. Minimum Membership for Registration: A Trade Union of workers will only be registered
if at least ten percent of the workers or one hundred workers, whichever is less, from the relevant
industrial establishment or industry are members at the time of the application.
3. Validity of Application: An application for registration remains valid even if, after
submission but before registration, some applicants (up to half of the total number) cease to be
members or formally dissociate from the application in writing to the Registrar.
4. Ongoing Membership Requirement: A registered Trade Union must always maintain a
membership of at least ten percent of the workers or one hundred workers, whichever is less,
with a minimum of seven members, from the relevant industrial establishment or industry.

 Section 7: Requirements for Trade Union Registration

A Trade Union is eligible for registration under this Code only if its executive is constituted
according to the provisions of the Code and its rules address the following matters:

1. Name of the Trade Union: The official name of the Trade Union.
2. Objectives: The complete list of objectives for which the Trade Union has been established.
3. Application of Funds: The purposes for which the Trade Union’s general funds can be used,
ensuring all uses are legally permissible under the Code.
4. Membership List: Maintenance of a member list with facilities for inspection by office-
bearers and members.
5. Membership Admission: Admission of ordinary members engaged or employed in the
related industrial establishment or industry, and honorary or temporary members who are not
workers but are allowed under Section 21 to be part of the executive.
6. Subscription Payment: Payment of a subscription by members, as prescribed.
7. Member Benefits and Penalties: Conditions under which members are entitled to benefits
and under which fines or forfeitures may be imposed.
8. Annual General Body Meeting: Conducting an annual meeting, including the election of
office-bearers.
9. Election and Removal of Office-Bearers: Election and removal process for executive
members and office-bearers, including filling of casual vacancies, every three years.
10. Funds Management: Safe custody of funds, annual audit of accounts, and inspection
facilities for account books by office-bearers and members.

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11. Amendment of Rules: Procedures for amending, varying, or rescinding the rules.
12. Dissolution: Procedures for dissolving the Trade Union.

QUESTION: 10 C. Discuss the Application for registration and cancellation of Trade

Union.

Ans:

 Application for Registration of Trade Union (Section-8)

1. Submission of Application: Every application for the registration of a Trade Union must be
submitted electronically or through other means to the Registrar. It should be accompanied by:
- (a) A declaration made by affidavit in the prescribed form.
- (b) A copy of the Trade Union's rules, along with a resolution adopted by its members
approving these rules.
- (c) A resolution passed by the members authorizing the applicants to apply for registration.
- (d) If the Trade Union is a federation or central organization of Trade Unions, resolutions
from each member Trade Union agreeing to form such a federation or central organization.

Explanation: In the case of a federation or central organization, the resolution must be passed
separately by each member Trade Union.
2. Financial Statement: If the Trade Union has existed for more than a year before applying for
registration, a general statement of its assets and liabilities, prepared in the prescribed format,
must be submitted along with the application.
3. Additional Information: The Registrar may request further information to ensure compliance
with the provisions of the Code and determine the Trade Union's eligibility for registration.
Registration may be refused until all required information is provided.
4. Name Approval: If the proposed name of the Trade Union is identical or too similar to an
existing registered Trade Union, the Registrar will require the applicants to change the name.
Registration will be withheld until the name alteration is made to avoid confusion among the
public or members of either Trade Union.

 Registration and Cancellation of Trade Union Registration (Section 9) -

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1. Registration Process:
- The Registrar will register a Trade Union upon satisfying that all requirements under this
Chapter are met. Details provided in the application for registration will be entered into a
prescribed register.
- Upon registration, the Registrar issues a certificate in a prescribed format, serving as
conclusive evidence of the Trade Union's registration under this Code.

2. Transition from Previous Registration:

- Any Trade Union registered under the Trade Unions Act, 1926 before this Code's
commencement is deemed registered under this Code.
- Such Trade Unions must update their executive constitution and rules according to Section 7
and submit a statement to the Registrar. The Registrar will then update records accordingly.

3. Cancellation of Registration:
- The Registrar may withdraw or cancel a Trade Union's certificate of registration under
various circumstances:
- (i) On the application of the Trade Union, verified as prescribed.
- (ii) Upon receiving information indicating the Trade Union's contravention of this Code, its
rules, or regulations.
- (iii) If the Trade Union's membership falls below ten percent of total workers or one
hundred workers, whichever is less, provided a sixty-day notice specifying grounds for
cancellation is given.
- The Registrar must provide written reasons for cancellation and communicate them to the
Trade Union.

4. Cancellation by Tribunal:
- The Registrar will cancel a Trade Union's registration upon an order from a Tribunal to do so.
- Reasons for cancellation must be recorded and communicated in writing to the affected Trade
Union.

QUESTION: 10 D. Discuss the Procedure for Appeal and obligations of Registered Trade
Unions with its legal status under section 12 of the Code.

Ans: Appeal Process Regarding Registration and Cancellation of Trade Union (Section 10)

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1. Appeal Against Registrar's Decision:
- Any person aggrieved by the Registrar's refusal to grant registration to a Trade Union under
section 9, or by the cancellation of a registration certificate under sub-section (5) of the same
section, may file an appeal to the Tribunal within the prescribed period.
- The Tribunal may consider appeals filed after the prescribed limitation period if the appellant
demonstrates valid reasons or unavoidable circumstances for the delay.

2. Tribunal's Authority:
- Upon hearing the concerned parties, the Tribunal has the authority to:
- Dismiss the appeal if it finds no grounds for reversal.
- Direct the Registrar to register the Trade Union and issue a registration certificate if the
appeal is successful.
- Set aside the order cancelling the registration certificate, if applicable.
- The Tribunal will send a copy of its order to the Registrar for implementation.

 Communications and Obligations of Registered Trade Unions (Section-11)

1. Receipt of Communications and Notices:
- All communications and notices intended for a registered Trade Union must be sent in the
prescribed manner to the address of its head office as recorded in the Registrar's maintained
register.

2. Membership Notification:
- The Trade Union is required to notify the Registrar if its membership falls below ten percent
of the total workers or one hundred workers, whichever is less.

3. Update of Information:
- The Trade Union must inform the Registrar of any changes in the details provided during its
registration application, as well as changes in its constitution or rules. This notification must be
done in the prescribed manner.

 Legal Status of Registered Trade Union (Section 12)

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1. Corporate Entity: Upon registration, every Trade Union becomes a body corporate
under its registered name.

2. Perpetual Succession: It enjoys perpetual succession, allowing it to continue its

existence regardless of changes in membership or leadership.

3. Common Seal and Powers: It possesses a common seal and has the authority to acquire,
hold, and manage both movable and immovable property. Additionally, it can enter into
contracts.

4. Legal Capacity: The Trade Union, under its registered name, has the right to sue and be
sued in legal proceedings.

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