NEW SYLLABUS

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Roll No. ..................................... OPEN BOOK EXAMINATION

Time allowed : 3 hours Maximum marks : 100

Total number of questions : 6 Total number of printed pages : 8

NOTE : Answer ALL Questions.

1. Case Study :
In furtherance of certain demands for wage revision made by the employees, in September
2022, the employees struck work for 4 hours on 29th December, 2022. On 16th January,
2023 the Bank issued a circular to its managers and agents directing them to deduct full
day's wages of such employees who participated in the 4-hour strike. The employees filed
a writ petition in the High Court for quashing the Circular. The petition was allowed. Hence
the present appeal by the Bank. Counsel ABC of the employees stated that the deduction
of the wages for the day amounted to unilaterally changing the service conditions, depriving
the workers of their fixed monthly wages, under the contract of service. Wages were paid
not from day to day or hour to hour basis but as a fixed amount on a monthly basis.
In the absence of a specific term in the regulations, awards and settlements, the Bank could
not unilaterally reduce the monthly wage and thus give the employees lesser monthly wages
than the contracted one.
There is no doubt that whenever a worker indulges in a misconduct such as deliberate refusal
to work, the employer can take a disciplinary action against him and impose on him the
penalty prescribed for it which may include some deduction from his wages. However, when
the misconduct is not disputed but is admitted and resorted to on a mass scale such as
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when the employees go on strike, legal or illegal, there is no need to hold an enquiry.
When the contract, standing orders or the service rules/regulations are silent, but enactment
such as the Payment of Wages Act providing for wage cuts for absence from duty is applicable
to the establishment concerned, the wages can be deducted even under the provisions of
such enactment.
The Bank’s Counsel XYZ invokes the doctrine ‘no work no pay’ and invite employees to
answer the question in the affirmative. Counsel XYZ said there is an implied contract to
receive salary provided the employee does work. Promise to work and promise to pay are
mutual. By resorting to the 4-hour strike that day, the employees absented themselves from
work resulting in failure of consideration ‘no work no pay’. Counsel XYZ justified the deduction
of the entire day’s salary on the ground that unless the employees work for the first 4
hours when the Bank is open to the public, there is precious little or nothing for them to
do the rest of the day. No work no pay, says Counsel XYZ.
Counsel XYZ supported his battle-cry by taking employees through a number of decisions.
The tentative view taken by the Calcutta High Court in Algemene Bank v. Central Govt.
Labour Court (1978-II-LLJ-117) was no work no pay. On the same doctrine, the employees'
writ petition was not countenanced and the employees’ submission that a contract to pay
wages is indivisible in character was rejected by the Madras High Court in V. Ramchandran
v. Indian Bank (1979-I-LLJ-122), and R. Rajamanickam v. Indian Bank (1981-II-LLJ-367).

The High Court also rejected the contention of the Bank that it was entitled to make deductions
under Section 7(2) of the Payment of Wages Act, 1936 by holding that the provision enabled
the employer to deduct wages only if the Bank had power under the contract of employment.
The Bank filed a civil appeal against the order of the High Court allowing the writ petition
filed by the employees.

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It was further pointed out that whereas, a legal strike may not invite disciplinary proceedings,

an illegal strike may do so, it being a misconduct. However, whether the strike is legal

or illegal, the workers are liable to lose wages for the period of strike. The liability to

lose wages does not either make a strike illegal as a weapon or deprive the workers of

it. When workers resort to it, they do so knowing well its consequences. During the period

of strike the contract of employment continues, but the workers withhold their labour.

Consequently, they cannot expect to be paid. The court has given very sound reasoning

for it. It was aptly remarked that it is not enough that the employees attend the place of

work, they must put in the work allotted to them. It is for the work not for their mere

attendance that the wages/salaries are paid. Thus appeal was allowed. The above problem

is based on a leading case ‘‘The Bank of India v. T.S. Kelawala and others’ (1990) II

LLJ 39 SC.

On consideration of the above facts, answer the following questions :

(a) Is the contention of the Bank that it was entitled to make deductions under Section

7(2) of the Payment of Wages Act, l936 correct and to deduct wages only if the

Bank had power under the contract of employment ? Explain.

(4+4=8 marks)

(b) Explain the kinds of strike under Industrial Disputes Act 1947.

(8 marks)

(c) Whether the strike is legal ? What are the provisions of a legality of strike ? Refer

the relevant case laws.

(3+3+2=8 marks)

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(d) Enumerate the authorized deductions under the provisions of the Payment of Wages
Act 1936.

(8 marks)

(e) Define the term ‘wages’ under the Payment of Wages Act, 1936. Also explain the
responsibility of employer in respect of payment of wages.

(4+4=8 marks)

2. (a) Rahul, the bus conductor fell unconscious in the bus itself at the end of the work
and died subsequently. The medical evidence was very clear that the accident had
no connection with the employment and it was certified that the bus conductor died
due to advanced liver disease and hence no connection with the employment strain
and stress in the work. The claimant (dependant) adduced no medical evidence as
well. The employer refused to pay the compensation in the form of dependent benefits.
Is it valid ? Is the claimant entitled to any other benefits ? Discuss.

(3+3=6 marks)

(b) In a matter M/s Ari Small Engineering Workshop accepted two apprentice trainees
under the scheme for imparting training to artisans from rural areas. The establishment
employed only 18 employees in their factory and hence they did not come under
the definition of factory within the meaning of the Act. However, the Regional Director,
ESI on finding that the two apprentices were also working in the factory computed
the total number of persons working therein as 20 and held that the unit is a factory
and thus asked the unit to deposit contribution under the Act. The order was challenged.
Whether the apprentices appointed by the employer in factory are considered as an
employee ? Explain

(6 marks)

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3. (a) The Management of Safal Industries engaged contract labourers in place of work done
by permanent workmen. It was challenged before the Industrial Tribunal and the Tribunal
held that the action of the management is invalid. The management preferred to appeal
contending that the Tribunal has no jurisdiction to interfere on the appointment of
contractors. Decide the validity of the appeal with reference to relevant case law.
(6 marks)
(b) The Management of Central Machine Tool Institute, the Petitioner, challenged the validity
of the registration of their employees’ association as a trade union under the provisions
of Trade Union Act,1926 on the ground that the institute is purely a research and
development organisation without any profit motive and therefore it is not a trade
or industry for the purpose of Trade Union Act and accordingly registration of the
association of the employees of the institute under the Trade Union Act, 1926 by
the office of registrar of Trade Union is without any legal basis and liable to be
cancelled.
Decide the following :
(i) Whether Petitioner’s Central Machine Tool Institute is an industry and its
employees are workmen within the meaning of Trade Union Act, 1926 ?
(ii) Whether the registration of the association of employees as a trade union without
hearing the petitioner employer is violation of the principles of natural justice.
(3+3=6 marks)
4. The Constitution of India has provisions for ensuring occupational health and safety of workers
in the form of three Articles 24, 39 (e and f) and 42. The important legislations related
to occupational health, safety and welfare are the Factories Act, l948, the Mines Act, 1952
and the Dock Workers (Safety, Health & Welfare) Act, 1986, Workmen’s Compensation

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Act, 1923 and Building and Other Construction Workers (Regulation of Employment and
Condition of Service) Act. Among these laws, Building and Other Construction Workers
(Regulation of Employment and Conditions of Service) Act, 1996 came into force from 19th
August, 1996 to regulate the employment and conditions of service of building and other
construction workers and to provide for their safety, health and welfare.
It is further governed by the Central Rules, 1998 and each of the State has got the powers
to frame their own rules for implementation of the Building and Other Construction Workers
(Regulation of Employment and Conditions of Service) Act, 1996.
Building and Other Construction Workers (Regulation of Employment and Conditions of Service)
Act was enacted to regulate the employment and conditions of service and to provide for
safety, health and welfare measures for crores of building and other construction workers
in the country. The Act is applicable to every establishment which employs 10 or more
workers in any building or other construction work.
(a) Explain the welfare measures of the workers under the Building and Other Construction
Workers (Regulation of Employment and Conditions of Service) Act, 1996.
(b) State the procedure for appointment of Inspecting Staff.
(6 marks each)
5. (a) Suresh, the occupier of an industrial establishment employing 126 employees of whom
some are aged below 18 but completed the age of 14 years. Two of them submitted
false birth certificate just to get into the job. The employer though complied with
the provisions as to the recruitment of young persons to the employment was prosecuted
for the contravention of the Child and Adolescent Labour Act, 1986. Decide as to
the liability of the employer with reference to the relevant case laws.
(6 marks)

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(b) Discuss the rights of employees under Occupational Safety, Health and Working
Conditions Code 2020 (OSH Code).
(6 marks)
6. (a) India’s first legislation of Women at Workplace (Prevention, Prohibition and Redressal)
Act, 2013 (‘‘POSH Act’’) was enacted by the Ministry of Women and Child
Development, India in 2013 after 16 years of the Supreme Court judgment in the
case of Vishaka and Ors. v. State of Rajasthan and Ors. (1997 (7) SCC 323).
Sexual harassment of a woman in workplace is of serious concern to humanity on
the whole. It cannot be construed to be in a narrow sense, as it may include sexual
advances and other verbal or physical harassment of a sexual nature. The victims
of sexual harassment face psychological and health effects like stress, depression, anxiety,
shame, guilt and so on.
The Supreme Court stated that the Vishaka Guidelines had to be implemented in
form, substance and spirit in order to help bring gender parity by ensuring women
can work with dignity, decency and due respect. It noted that the Vishaka Guidelines
require both employers and other responsible persons or institutions to observe them
and to help prevent sexual harassment of women.
Further, the Court held that a number of states were falling short in this regard and
reiterated that there is an obligation to prevent all forms of violence. It stated that
‘‘lip service, hollow statements and inert and inadequate laws with sloppy enforcement
are not enough for true and genuine upliftment of our half most precious population
- the women’’.
In view of the above decision of the Court, highlight the importance of Medha Kotwal
Lele and Ors. V. Union of India judgement.
(6 marks)

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(b) Factories Act, 1948 is an act to consolidate and amend the law regulating Labour
in factories. The main objective of the Act is to ensure adequate safety measures
but also to promote health and welfare of the workers employed in factories as well
as to prevent haphazard growth of factories. This Act is legislated to lay guidelines
on working conditions in factories including leaves, working hours, holidays, etc. It
also ensures health, safety and welfare measures of workers in factories.
This Act also focused on hazardous process by industries and the level of chemical
substances permissible in work environment. The Act contains provisions regarding
hazardous process, constitution of Site Appraisal Committee, compulsory disclosure
of Information, appointing competent person in handling hazardous substances, etc.
On the basis of above facts, answer the following :
(a) Define ‘‘Workers’’ with reference to Landmark Case of Birdh Chand Sharma
v. First Civil Judge Nagpur (AIR 1961 SC 644).

(b) Explain the term ‘‘Manufacturing Process’’ with relevant case laws.

(3+3=6 marks)

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