main answer questionbank

7/28/2019 Main Answer Questionbank

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Q11.Explain the aims and objectives of Contract Labour (Regulation and

Abolition) Aact, 1970. Should contract labour be totally banned in India.

PURPOSE AND OBJECT: The Contract Labour (Regulation &

Abolition) Act, 1970 has been enacted to regulate the employment ofcontract labour and to bring them at par with directly employed labour

with regard to the working conditions and other benefits and also to

provide for abolition of contract labour in certain circumstances.

Applicability:

Why it should be banned in india:Contract labour should be banned in india.

contract Labour is one of the acute form of unorganized labour. Under the systemof contract labour workers may be employed through contractor on the contractbasis. Workmen shall be deemed to be employed as contract labour or in

connection with the work of an establishment when he is hired in or in connection

with such work by or through a contractor, with or without the knowledge of the

principal employer. In this class of labour the contractors hire men (contractlabour) who do the work on the premises of the employer, known as the principal

employer but are not deemed to be the employees of the principal employer. Therange of tasks performed by such contract workers varies from security to

sweeping and catering and is steadily increasing. It has been felt, and rightly too,

that the execution of a work on contract through a contractor who deployed the

contract labour was to deprive the labour of its due wages and privileges of labourclass.

The contract worker is a daily wager or the daily wages are accumulated and given

at the end of the month. The industries justify contract labour on the grounds thatthe requirement is temporary or seasonal. Nonetheless, there are ready instances of

contract labour being deployed for tasks as security, sweeping and cleaning,though it is difficult to comprehend how these tasks are temporary and do not

justify full time regular employees. The managements try to by-pass the provisionsof social legislations unless they are legally trapped or forced by circumstances,

while the judiciary has always upheld the concept of social justice, dignity ofhuman rights and workers welfare.


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Q1. From being merely administrators of decisions made by others, tobecoming key decision makers affecting business outcomes &strategiesH.R. has evolved a long way. Examine the same.

Role of HR function is redefined and shifted from that of traditional administrator

to facilitator and change agent resulting into witnessing a change in system andprocess and organization culture. Organizations converted them into people centric

institutions. The entire set of new issues emerged like man power productivity,managing culture fit-policies, career growth, career planning and training. Most of

the time spent by HR professionals during this period was on creating an enabling

culture and working out a strategy which could attract, develop, retain and nurture

the talent in the organization. It emerged as single most critical issue for HRprofessionals.

But it is also a fact that changes taking place in the global business environment

often are not accompanied by complementary changes in HR practices leading to asituation where mis-management of people surfaced as the real cause of non

performance of the organization rather than technical issues. Organizations have to

achieve high level of effectiveness in implementing strategic HR practices.Business Manager, July 2011 is an anniversary issue This issue cover story is an

attempt to capture the journey of HR in last two decades after globalization. Alongwith theme articles by renowned academicians and HR practitioner, HR experts of

the country also share their experiences.

13. Collective bargaining should move from a Win-loose Strategy to a

win-win Strategy . Discuss the trends and issues in collectivebargaining in India.

Back ground:Before the Industrial Disputes Act, 1947, collective bargaining wasthe exception rather than the rule in India. However, with thepassing of the Industrial Disputes Act, 1947, collective baragainingwas given encouragement..

Definition: Collective bargaining is concerned with the relationsbetween tarde unions & management. Bargaining is collectivebecause chosen representatives of labour & management acts asbargaining agents.

Collective Bargaining in India


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It was introduced in India in 1952 and is gradually gainingimportance in following years.Most agreements of disputes like BataShoe company Agreement 1955 and 1962 were at plant level.AtIndustry level the best example is of Textile Industry Bombay and

Ahmedabad.The Delhi Agreement of 1951 is best example ofagreement at National Level.It should move from win-loose strategy to WIN-WIN strategy :The procedureopted by employers and workers to reach a collective agreement regarding employment termsand rights and the duties of workers is known as collective bargaining. Collective bargaining

aims to resolve issues pertaining to wages, working conditions, health and safety, and working

hours of worker.

During the collective bargaining process, workers are represented through trade

unions. The process of collective bargain involves negotiation and discussion

between the management and trade union. The term collective is used because

both the employer and employees come together and put a collective effort toestablish mutually agreeable terms and conditions for employment. The concept of

collective bargaining was introduced very late in India, as trade unions wereformed only in the 20th century. The concept of collective bargaining attained

significance only after 1962.

Trends in collective bargaining:

The collective bargain concept has its own merits and demerits. Here are its keyadvantages:

* It avoids unnecessary legal proceedings and the issue is sorted out of the Court.

* It promotes workers democracy and workers participation in management.

* It helps in establishing harmonious relationship between employee and theemployer.

* It emphasizes on the interests and benefits of both parties.* It eliminates unnecessary expenditure and avoids bitterness among involved

parties.

Here are the few disadvantages of collective bargaining(ISSUES)

* Increased wages and improved facilities for workers will indirectly result inhigh prices for goods and services.

* Consumers are affected badly due to price rise; a process which they do notactively participate in.

* The collective bargaining process may not be fair at all times; the decision isoften influenced by power and politics.


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* In case of failure of the collective bargaining agreement, the immediate

consequence is strike or lock-out

29. Give a birds eye view of the Payment of Gratuity Act. Explain the

rights/duties of the nominee.the Payment of Gratuity Act 1972:- Gratuity is a voluntary Payment made by the employer tothe employee in recognition of continuous, meritorious services and sincere efforts by theemployee towards the organization.It is governed under the Payment of Gratuity Act 1972.It is

an Act to provide for a scheme for the payment of gratuity to employees engaged in

factories, mines, Oilfields, plantations, ports, railway companies, and shops or other

establishments.Applicability1. Every factory (as defined in Factories Act), mine, oilfield, plantation, port and

railway.

2. Every shop or establishment to which Shops & Establishment Act of a Stateapplies in which 10 or more persons are employed at any time during the year end.

3. Any establishment employing 10 or more persons as may be notified by theCentral Government.

4. Once Act applies, it continues to apply even if employment strength falls

below 10.

Eligibility

1. Any person employed on wages/salary.2. At the time of retirement or resignation or on superannuation, an employee

should have rendered continuous service of not less than five years,

3. In case of death or disablement, the gratuity is payable, even if he has notcompleted 5 years of service.

Benefits

1. The quantum of gratuity is to be computed at the rate of 15 days

wages (7 days wages in case of seasonal establishments) based on

rate of wages last drawn by the employee concerned for everycompleted year of service or a part thereof exceeding 6 months.

2. The total amount of gratuity payable shall not exceed the prescribed

limit.3. In case where higher benefit of gratuity is available under any gratuity

scheme of the Co., the employee will be entitled to higher benefit


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Calculation of Gratuity

1. Gratuity = Monthly Salary x 15 days x No. of yrs. of service26

2. Max. Gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997)

Rights/duties of the nominee:

Gratuity is payable to an employee (nominee in case of death of employee) who has rendered

continuous service of five years or more on his termination of employment, superannuation,retirement or resignation. Completion of continuous service of five years is not necessary where

the termination of employment is due to death or disablement due to accident or disease.

Exceptions:-Forfeiture of gratuity amount wholly or partially or to the extent of Damage /loss in

case of an employee whose service has been terminated for:

Any act, willful omission or negligence causing any damage or loss to, or destruction of,

property belonging to the employer; or

Act of riotous or disorderly conduct or any other act of violence on part of employee; or

Any act which constitutes an offence involving moral turpitude, in the course of his

employment.

Nomination:-In case of death, the gratuity is payable to any of the following persons:

Nominee

Heirs (in absence of nomination)

In case nominee/ heir is a minor, such amount will be deposited with the controlling

authority who shall invest the same for the benefit of such minor in such bank or otherfinancial institution, as may be prescribed, until such minor attains majori

The dominant position towards which HRM is moving points to a

"change in power relations and highlights the supremacy of

management. The management prerogative is rediscovered but in


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place of command and control the emphasis is on commitment and

control as quality, flexibility and competence replaces quantity, task

and dumb obedience.

IR is essentially pluralistic in outlook, in that it covers not only the

relations between employer and employee (the individual relations)

but also the relations between employers and unions

and between them and the State (collective relations). IR theory,

practice and institutions traditionally focus more on the collectiveaspect of relations. This is evident from the central place occupied

by labour law, freedom of association, collective bargaining, the

right to strike, employee involvement practices which involve

unions, trade unionism and so on.

HRM deals with the management of human resources, rather than

with the management of collective relations. There is of course a

certain measure of overlap. Individual grievance handling falls

within the ambit of both disciplines, but dispute settlement of

collective issues more properly falls within the scope of IR. Policies

and practices relating to recruitment, selection, appraisal, training

and motivation form a part of HRM. Team-building, communication

and cooperation, though primarily HRM initiatives, have a

collectivist aspect. A discernible trend in management is a greater

individualisation of the employer-employee relationship, implying


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less emphasis on collective, and more emphasis on individual

relations.

Some of the tensions between IR and HRM arise from the unitarist

outlook of HRM (which sees a commonality of interests between

managements and employees) and the pluralist outlook of IR (which

assumes the potential for conflict in the employment relationship

flowing from different interests). "It is often said that HRM is the

visual embodiment of the unitarist frame of reference both in the

sense of the legitimation of managerial authority and in the imageryof the firm as a team with committed employees working with

managers for the benefit of the firm.

The HRM believes in direct interaction with the employee and does

away with employee representative. HRM policies and practices,

would appear to be essentially unitarist and individualistic in

contrast to the more pluralist and collective values of traditional

industrial relations.

Lock out. Closure.


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Temporary closing of the placeof employment by theemployer.

Permanent closing down of awork place of employment orpart thereof.

Generally is used as a weapon

against the workmen. Not used as a weapon. It

affects both the employerand the employee.

Bonafide strike can be illegal. Bonafide closure cannot beillegal.

Signifies the temporary closure

of the place of business andnot the business itself.

Is the final and irrevocable

termination of the businessitself.

There is no severance of

relationship between employer

and employee.

There is a severance of

relationship between

employer and employee. The causes are temporary and

can be cured. The causes are permanent

or lasting and cannot becured.

Lock out may turn into closure. Closure cannot be turnedinto a lock out.

Lock out Lay off.

Temporary closing ofthe place of

employment.

Failure, refusal or inability of theemployer to employ on account of

shortage of raw material, shortage ofpower, excess of production etc.

The establishment iscompletely closeddown.

The establishment continues theoperation.


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Declared by theemployer as an answerto the strike.

Because of reasons which are notwithin the control and reah of theemployer. It could be for shortage ofraw material, break down ofmachinery, market conditions, etc.

Applicable to entireindustry or to theentire department ofthat industry.

Applicable to a group of workers,select individuals, or to the entire workforce, etc.

Strike Lock out

Weapon in the hands ofworkmen.

Weapon in the hands ofEmployer/Management.

Cessation of work bythe workmen.

Temporary closing of the place ofemployment by the management.

Reasons are generallyeconomics related, viz,enhancement of wages,

working conditions etc.

Reasons could be either economicfactors or otherwise. Politicalinterference, trade union disputes

etc., can be the reasons.

Generally, the workmenfirst start the strike.

Generally the lock out by themanagement is the answer for thestrike.Strike is the antithesis of lockout.

Lay Off. Retrenchment.

Purely temporary and ad hoc. Permanent.


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The employer is compelled torefuse employment undercertain circumstances, viz,

shortage of raw materials,power, finance, etc, which

arise temporarily in theindustry.

The employer lessens theburden of work force. It couldbe the chopping off of theadipose tissue (of workforce).

The group of workers or allthe employees are refused theemployment.

Adopts the principle of last

comes, first goes.

The laid off employees shouldbe taken back in their usualposts, once the lay off islifted.

Reemployment/Reinstatemetis not mandatory.

7. Examine so as to whether Software Firm is a factory. Bring outthe ingredients of a factory.

ANSfactories ingredients :

1.Afactory(previouslymanufactory) ormanufacturing plantis an industrial site,usually consisting of buildings and machinery, or more commonly a complexhaving several buildings, where workersmanufacturegoodsoroperatemachinesprocessingone product into another.

2. Factories may either make discrete products or some type of material continuouslyproducedsuch as chemicals, pulp and paper or refined oil products. Factoriesmanufacturing chemicals are often calledplantsand may have most of theirequipment, consisting of tanks,pressure vessels, chemical reactors and pumps andpiping located outdoors and are operated by personnel in control rooms.

3. factories practiceddivision of labour, in which most workers were either low skilledlaborers who tended or operated machinery and unskilled laborers who movedmaterials, semi-finished and finished goods. There were a few skilledmechanics.

4. Factories were able to produce a steady supply of goods. 5. Economies of scale: Factories produced product on a much larger scale than the

putting out or crafts systems. Because factories could over supply local markets,access to transportation was important.

NO, softaware firm cant be considered as a factory as its not satisfiengthe above criteria.
http://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Machinehttp://en.wikipedia.org/wiki/Process_Manufacturinghttp://en.wikipedia.org/wiki/Process_Manufacturinghttp://en.wikipedia.org/wiki/Process_Manufacturinghttp://en.wikipedia.org/wiki/Continuous_productionhttp://en.wikipedia.org/wiki/Continuous_productionhttp://en.wikipedia.org/wiki/Continuous_productionhttp://en.wikipedia.org/wiki/Continuous_productionhttp://en.wikipedia.org/wiki/Pressure_vesselhttp://en.wikipedia.org/wiki/Pressure_vesselhttp://en.wikipedia.org/wiki/Pressure_vesselhttp://en.wikipedia.org/wiki/Division_of_labourhttp://en.wikipedia.org/wiki/Division_of_labourhttp://en.wikipedia.org/wiki/Division_of_labourhttp://en.wikipedia.org/wiki/Division_of_labourhttp://en.wikipedia.org/wiki/Pressure_vesselhttp://en.wikipedia.org/wiki/Continuous_productionhttp://en.wikipedia.org/wiki/Continuous_productionhttp://en.wikipedia.org/wiki/Process_Manufacturinghttp://en.wikipedia.org/wiki/Machinehttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Manufacturing


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It is time to show some sympathy, after all the condemnation and criticism that

HR professionals have been subjected to for actions that are not always in their

control, but executed nevertheless.

Employees often complain of HR being a management activist, for the unfair

treatment meted out to them. The accusations range from HR overlooking serious

cases of discrimination and sexual harassment to playing a mere informer without

influencing the situation. Further, employees are also wary of HR because of the

kind of sensitive work they do. From recruitment decisions to terminations and

everything in between is extremely sensitive employee information, and hence,

employees prefer to exercise caution when they have HR executives around

them. This also explains why HR professionals fail to make friends in the

workplace. The kind of information access they have prevents them from opening

up with people, thus creating a barrier of sorts between them and others. The

misunderstanding between HR and other employees is thus inevitable; none ofthe members are in a position to engage in frank conversation as some

information is always withheld.

Not all criticism is wrong. There are enough cases where HR professionals have

gone the management way intentionally, without paying much heed to

employees and their concerns. However, generalisations cannot be made, as HR is

the only function that is caught in the crossfire between employees and

management constantly. Thus, living through the misery of explaining every

action is in itself a feat that needs more recognition than what is awarded.

Why HR?

Understanding the reasons for HRs plight will help employees and the

management get a real perspective into the dilemmas, challenges and issues that

surround HR professionals.


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Playing the referee:

HR professionals have to do the balancing act, and play referee between the

management and employees. This is the most difficult part of being a HR

professional since issues are never in black and white, and there is always a lot of

grey in between. From an employees perspective, resistance from HR on any

issue is akin to support for management. However, the real reason for HR refusing

to make exceptions is to prevent wrong precedence from setting in, as it could

sabotage policy implementation.

Confidentiality makes HR a suspect:

Employees often express doubt over the information shared with them by HR. HR

has to comply with the confidentiality clause, and therefore, restricts information

sharing as divulging details could hurt the employee or the process. For instance,

when an employee gets involved in a disciplinary case, HR has the right not give

out information about who said what, while keeping him informed about the

progress of the case.

HR leaders seek evidence:

HR doesnt act without evidence, even if it believes in the employee. HR

executives often have a general idea about the nastiness of people working in the

organisation. however despite this, they need evidence to act. For instance, if a

woman employee complains to HR about a particular colleague calling her names

and making snide remarks, it becomes difficult for HR to act only on the basis of

the accusation. Evidence to some extent is important since any action without

evidence can legally complicate the matter.

Different perspectives:

Employees often complain of HR not taking their problems seriously. This

happens when HR has a different take on the issue and believes that the

behaviour is within socially acceptable limits. Difference in perspectives often


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aggravates the situation, making people take a complete hostile view of the

disagreements.

Not privy to informal conversations:

If you approached your HR head complaining about of how your manager did not

fulfil his promise of giving you a raise, but without any documentary proof, then

nobody could help you. Sure you can talk and feel better about it, but expecting

an action against it would be futile. HR is generally unaware of the informal

conversations that go on between managers and employees. Thus, unless a

documentary proof, like an endorsement on the performance development plan

or previous appraisal, shows that a raise was promised, there is nothing that a HR

executive can do.

HR is not the ultimate authority:

HR is not the ultimate decision making authority, and therefore, a lot depends on

the discretion of business managers involved in the process. HR can take decisions

only as far as its own department is concerned. While it surely can influence a lot

of decisions, the final call does not come from HR. Hence, blaming HR for every

wrong decision is grossly iniquitous.

HR bashing should stop. While there are aberrations in the way HR conducts

itself, generalisations of any kind can only do harm. Accepting HRs dual role of a

management activist and an employee guardian will help iron out the differences

and help create an understanding that HR is not as big a monster as it is made out

to be.


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In 1993 the IBM company was in shambles. IBM was bleeding money dues to

there insular corporate culture and just them falling prey to small companies that

would make similar products that were both better, fast, and cost far less than

IBM. At one point Wall Street wanted them to break there company up intosmaller independent business units. That was until Lou Gerstner took the helm of

IBM as the CEO.

Lou had a vision to keep this company together, change the way it did business

and just show it could keep up with and maybe even surpass the startups and

small businesses presenting its biggest challenges. Lou Gerstner thought, The

enormous corporate elephant could dance as gracefully as its much smaller

competition.

Not to long after Lou Gerstner was introduced as CEO he had a meeting with the

IBMs Corporate Management Board (the top 50 people in the company).

Gerstner outlined a number of troublesome areas in the company. These

included:

Loss of customer trust, supported by low customer ratings on quality.

The mindless rush for decentralization.

Slow response to cross-unit issues.

Tension over control of the marketing and sales processes.


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Aconfusing and contentious performance measurement system, resulting inserious problems when closing sales with customers.

A bewildering array of questionable, even senseless alliances.

In his first 100 days as CEO, Gerstner decided to go public with all news outlets

and analysts with his 4 keys strategic initiatives to turn IBM around.

These included:

- Keep the Company Together

- Change the Companys Fundamental Economic Model

- Reengineer How the Company Did Business

- Sell Nonessential Assets to Raise Cash

Principled Leadership

In order to breathe some fresh air into the organization, Gerstner did away

with the Basic Beliefs, pointing instead to eight principles:

1. The marketplace is the driving force behind everything we do.

- Under the first of Gerstners principles,the company vowed to focus on

serving customersand, in the process, beating the competition.

2. At our core, we are a technology company with an overriding

commitment to quality.

3. Our primary measures of success are customer satisfaction and

shareholder value.

4. We operate as an entrepreneurial organization with a minimum

of bureaucracy and a never-ending focus on productivity.


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5. We never lose sight of our strategic vision.

- Every business, if it is to succeed, must have a sense of direction and

mission, so that it knows what is important, and how it fits into any given

situation.

6. We think and act with a sense of urgency.

7. Outstanding, dedicated people make it all happen, particularly

when they work together as a team.

8. We are sensitive to the needs of all employees and to thecommunities in which we operate.

Lou Gerstner was much more than a CEO or namesake for a company. He was a

leader. He put his company on his back and reformed it into something never

imagined. He did this through careful planning and a few key characteristics that

he personally applied to the company. He changed the culture of the company on

a whole.

Gerstners Key to Success:

Focus

Gerstner made sure that his company stayed focus. He said, At the end of the

day, a successful, focused enterprise is one that has developed a deep

understanding of its customers needs, its competitive environment, and its

economic realities.

Execution

Execution is really the critical part of a successful strategy. Getting it done, getting

it done right, getting it done better than the next person is far more important

than dreaming up new visions of the future.


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Personal Leadership

In Lou Gerstners mind and experience, personal leadership is the most important

element of institutional transformation. Great institutions are not managed; they

are led. The best leaders create high-performance cultures, with demandinggoals, measured results and full accountability. They dont hide behind staff; they

dont simply preside over the work of others. They are visible every day with

customers, suppliers and business partners.

A few things to learn from Gerstner and his leadership is to always be ready to

fight. Wall Street saw this company as weak and ready to be broken up, but

Gerstner thought otherwise. As they were going in the wrong direction and

bleeding money, Gerstner pooled IBMs resources and maximized its potential. He

used careful strategy and a golden vision to not only fix what was broken but tofix it regardless if its not broken. He wanted to improve every area of the

company and he succeeded. But more than anything he was personally

committed to his company, that is the showing of true leadership. It made IBM

special.

True leadership the kind that makes companies special, that can turn them

around, that can make elephants dance requires commitment, determination

and passion for life, for business and for winning.

The objective of the Industrial Disputes Act is to secure industrial peace and

harmony by providing machinery and procedure for the investigation and

settlement of industrial disputes by negotiations. This act deals with the


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retrenchment process of the employees, procedure for layoff, procedure and

rules for strikes and lockouts of the company.

DISPUTE SETTLEMENT AUTHORITIES UNDER THE ACT

The Industrial Dispute Act provides elaborate and effective machinery for the

investigation and amicable settlement of industrial disputes by setting up the

various authorities. These are:

1. Works Committee;

2. Conciliation Officer;

3. Conciliation Board;

4. Court of Enquiry;

5. Labour Court;

6. Industrial Tribunal;

7. National Tribunal;

8. Arbitrators;

9. Grievances Settlement Authority.

1 - WORKS COMMITTEE [Sec. 3]:

In the case of an industrial establishment in which 100 or more workmen are

employed, the appropriate Government may require the employer to constitute a

'Work Committee'. It consists of equal number of representatives of employers

and workmen engaged in the establishment. The representatives of the workmen

shall be chosen from amongst the workmen engaged in the establishment and inconsultation with the registered trade union, if any. Works committee deals with

the workers problem arising day to day in the industrial establishment.

2 - CONCILIATION OFFICER [Sec. 4]:


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The appropriate Government is empowered to appoint any number of persons, as

it thinks fit, to be conciliation officers. The conciliation officer having duty of

mediating and acts as the mediators in between the parties to resolve the

dispute.

In the case of public utility services matters like strikes and lockouts the

conciliation officer can initiate the conciliation proceeding ad tries to settle the

dispute in between the parties.

If the conciliation officer fails to resolve the dispute between the parties, he

should report to the appropriate government. If necessary the dispute shall be

referred to the Board, Labour Court, Tribunal or National Tribunal, by the

appropriate government. [Sec 12 (5)]

Duties of conciliation officers. [Sec 12]

Hold conciliation proceedings relating to Strikes and lockouts procedural matters of

public utility services.

Investigate the matters of the disputes.

Conciliation officers shall induce the parties to come to a fair and amicable settlement of

the dispute.

Duty to send the report of settlement of dispute and memorandum of the settlementsigned by the parties to the dispute to the government or his superior.

In case of failure of settlement of dispute in between parties, duty to send them to the

government or his superior, report of facts and circumstances relating to the disputes andin his opinion, a settlement could not be arrived at,

Duty to send the report to the government or his superior within 14 days from the

commencement of the proceeding. or within such shorter period as may be fixed by the

appropriate Government .

3 - CONCILIATION BOARD [Sec. 5]:

As occasion arises appropriate Government is also authorised to constitute a

Board of conciliation for promoting the settlement of an industrial dispute. It

consists of a chairman who shall be an independent person, and two or four other

members. The members appointed shall be in equal numbers to represent the

parties to the dispute. On the dispute being referred to the Board it is the duty of


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the Board to do all things as it thinks fit for the purpose of inducing the parties to

come to fair and amicable settlement.

If there are many parties relating to or in the dispute the government may

appoint the conciliation board consisting of the above said members

According to [Sec 10 (2)] when parties in the industrial dispute apply to the government to referdispute to the Conciliation Board and if government satisfies it shall make the reference to the

Conciliation Board.

Duties of board. [Sec 13]

it shall be the duty of the Board to endeavor to bring about a settlement of dispute.

Investigate the matters relating to the dispute between parties and inducing the parties to

come to a fair and amicable settlement of the dispute.

In case of failure of settlement of dispute in between parties, duty to send to the

government the report of facts and circumstances relating to the disputes and boardopinion, a settlement could not be arrived at,

The Board shall submit its report under this section within 2 months of the date on whichthe dispute was referred to it or within such shorter period as may be fixed by the

appropriate Government.

4COURT OF ENQUIRY [Sec. 6]:

(1) The appropriate Government may as occasion arises by notification in the

Official Gazette, constitute a Court of inquiry for inquiring into any matter

appearing to be connected with or relevant to an industrial dispute.

(2) A Court may consist of one independent person or of such number of

independent persons as the appropriate Government may think fit and where a

Court consist of two or more members, one of them shall be appointed as the

Chairman.


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(3) A Court, having the prescribed quorum, may act, notwithstanding the absence

of the chairman or any of its members of any vacancy in its number.

Provided that, if the appropriate Government notifies the Court that the serviceof the Chairman has ceased to be available, the Court shall not act until a new

Chairman has been appointed.

5 - LABOUR COURTS

(1) The appropriate Government may, by notification in the Official Gazette,

constitute one or more Labour Courts for the adjudication of industrial disputesrelating to any matters specified in the Second Schedule and for performing such

other functions as the case may be assigned to them under this Act.

(2) A labour Court shall consist of one person only to be appointed by the

appropriate Government.

(3) A person shall not be qualified for appointment as the Presiding Officer of a

Labour Court, unless

(a) he is, or has been, a Judge of a High Court : or

(b) he has, for a period of not less than three years, been a District Judge or

an Additional District Judge ; or

(c) [omitted by Act 46 of 1982 S. 3]

(d) he has held any judicial office in India for not less than seven years; or

(e) he has been the Presiding Officer of a labour Court constituted under

any Provincial Act or State Act for not less than five years.

6 - 7A TRIBUNALS :

(1)The appropriate Government may, by notification in the Official Gazette,

constitute one or more Industrial Tribunals for the adjudication of industrial

disputes relating to any matter, whether specified in the Second Schedule or the


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Third Schedule 1[and for performing such other functions as may be specified to

them under this Act.]

(2) A Tribunal shall consist of one person only to be appointed by the appropriate

Government.(3) A person shall not be less qualified for appointment as the presiding Officer of

a Tribunal unless

(a)he is, or has been, Judge of a High Court ; or

(aa) he has, for a period of not less than three years, been a District Judge or

an Additional District Judge; 2[* *].

(b)[omitted by Act 46 of 1982 S. 4].

(4) The appropriate Government may, if it so thinks fit, appoint two persons at

assessors, to advise the Tribunal in proceeding before it.

7 - 7-B NATIONAL TRIBUNALS

(1) The Central Government may, by notification in the Official Gazette,constitute one or more National Industrial Tribunals for the adjudication of

industrial disputes which, in the opinion of the Central Government, involve

questions of national importance or are of such a nature that industrial

establishments situated in more than one State are likely to be interested in, or

affected by such disputes.

(2) A National Tribunal shall consist of one person only to be appointed by the

Central Government.

(3) A person shall not be qualified for appointment as the presiding Officer of a

National Tribunals unless 3[he is or has been a Judge of a High Court.]

(4) The Central Government may, if it so thinks fit, appoint two persons as

assessors to advise the National Tribunals in the proceeding before it.


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8-ARBITRATION

Voluntary reference of disputes to arbitration. [sec. 10 (a)]: An arbitrator is

appointed by the Government. Whether the dispute is before Labour Court, or

Industrial Tribunal or National Tribunal, the parties can go to arbitration by

written agreement. The arbitrators conduct the investigation in to the dispute

matters and give arbitration award (final decision or settlement or decree) as for

making reference of an industrial dispute. If an industrial dispute exists or is

apprehended and the employer and the workman agree to refer the dispute to an

arbitration, they may refer the dispute to an arbitration. But such reference shall

be made before the dispute has been referred under Sec. 19 to a Labour Court or

Tribunal or National Tribunal by a written agreement. The arbitrator may be

appointed singly or more than one in number. The arbitrator or arbitrators shall

investigate the dispute and submit to the appropriate Government the arbitration

award signed by the arbitrator or all the arbitrators, as the case may be.

9 - GRIEVANCE SETTLEMENT AUTHORITY [SEC. 9 (C)]:

This Section is incorporated as a new chapter II B of the Act. As per this Section,

the employer in relation to every industrial establishment in which fifty or more

workmen are employed or have been employed on any day in the preceding

twelve months, shall provide for, in accordance with the rules made in that behalfunder this Act, a Grievances Settlement Authority.

9C. Every industrial establishment employing 20 or more workmen shall have one

or more Grievance Redressal Committee for the resolution of disputes arising out

of individual grievances.


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The law relating to the registration and protection of the Trade Unions is

contained in the Trade Unions Act, 1926 which came into force with effect from

1st June 1927. The Act extends to the whole of India except the State of Jammu

and Kashmir.

In common parlance, Trade Union means an association of workers in one or

more occupations. Its object is the protection and promotion of the interests of

the working class. Trade Unions have a home grown philosophy based on

workers' experience and psychology. It grows out of the workers' day-to-day

experience.

Objects of Trade Union:

To foster a spirit of solidarity in service, brotherhood and cooperation amongst allworkers; to secure effective and complete organization of the workers; to obtain

and maintain adequate scale of wages and responsible hours, of work; to raise

the status and improve the conditions of life of the workers; to secure redressal of

the grievances of the members and to regulate and secure as far as possible

settlement of disputes by mutual consultation and on its failure, by reference to

arbitration or adjudication; to make necessary arrangements for efficient conduct

and satisfactory conclusions of all disputes including authorized strike or

satyagraha, etc.

Trade Union:

Means any combination, whether temporary or permanent, formed primarily for

the purpose of regulating the relations between workmen and employers or

between workmen and workmen, or between employers and employers, or for


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imposing restrictive conditions on the conduct of any trade or business, and

includes any federation of two or more Trade Unions.

Simply put A trade union is a continuous association of wage earners for the

purpose of maintaining or improving their working conditions and their lives.

Thus any combination whether permanent or temporary will b a trade union, if it

is formed primarily for one of the following purposes:

a) to regulate the relations between workmen and employers.

b) to regulate the relations between workmen and workmen.

c) to regulate the relations between employers & employers.

Registrar of Trade Unions

The Registrar of Trade Unions is an authority appointed by the appropriate

Government and is competent and empowered to register a trade union, and

besides this he is a competent authority regarding amalgamation of Trade Unions,

to accept annual returns, dissolution of Trade Union, cancellation of Registration

etc.

Procedure for Registration of a Trade Union:

Any 7 or more members of a trade union by subscribing their names to the rules

of the trade union may apply for the registration of the trade union in the

prescribed application along with the requisite fees, which shall be accompanied

by the Rules of the Trade Union.

The particulars that need to be elucidated in the said application form (Form A)

along with the Rules are as follows:

a) Name of the trade union and address of the Head office.

b) The names, occupations and addresses of members making the application.c) The titles, names, age, address and occupations of the office bearers.

d) If the union is in existence for more than one year before th date of

application, the applicants must enclose a statement of liabilities and assets

of the trade union.

Cancellation of Trade Union:


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The Registrar can cancel/revoke the registration under the following conditions:

a. If the registration is obtained by mistake or by fraud.

b. If the Trade Union ceases to be in existence.c. If the Trade Union has willfully contravened any provisions of law.

d. If the Trade Union has incorporated any rules which is/are inconsistent with

the law of the land.

However, the Registrar cannot cancel registration without giving a 2 month notice

and without complying the principles of natural justice.

Registration of Trade Union:

Any 7 or more members of a trade union by subscribing their names to the rules

of the trade union may apply for the registration of the trade union in the

prescribed application along with the requisite fees, which shall be accompanied

by the Rules of the Trade Union.

Is Registration of Trade Union Compulsory:

No, the registration of a Trade Union is not compulsory in India and the same is

purely optional. However, if it is not registered it does not qualify to enjoy the

status of a legal persona and consequently is denied certain privileges that the


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registered Trade Union would enjoy. Only a registered Trade Union is treated as a

Body Corporate.

Advantages of Registration:

1. Body Corporate (Legal Personality).

2. Perpetual Succession.

3. Common Seal.

4. Acquisition of properties.

5. Enter into contracts.

6. Capacity to sue.

7. Collective Bargaining.

8. Right to strike.

9. Immunity from being prosecuted in civil or criminal proceedings only incontemplation or in furtherance of the objects of a trade union or of a

trade dispute.

10. Right to represent any individual member on his due authorisation.

Recognition of Trade Union:

A recognised trade union has the right to negotiate with the employers in respect

of matters connected with the employment or non-employment, terms ofemployment and the conditions of work of all or any of its members.

However, the Act is conspicuously silent about the Recognition of the Trade

Union, and hence recognition of the Trade Union is not mandatory in India,

except in the State of Maharashtra.

RIGHTS AND OBLIGATION OF REGISTERED TRADE UNIONS

A registered Trade Union has the right to maintain

(a) a general fund, and

(b) a separate fund for political purposes:


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But the Unions are bound to utilize the funds only for the purposes specified in

the Act.

OBJECTS ON WHICH GENERAL FUNDS MAY BESPENT [Sec. 15]

Payment of salaries, allowances, etc., to the office bearers of the Union.

Payment of expenses for the administration of the Union including other

expenses spent on defending any legal proceedings by or against the Union.

Settlement of trade disputes.

Special allowances to the members (including dependants) of the Trade

Union on account of death, sickness or accidents, etc.

Compensation to members for loss arising out of trade disputes.

Providing educational, social and religious benefits to the members.

Issue of assurance policies on the lives of members and also against

sickness, accidents, unemployment, insurance, etc.

Providing for publication of periodicals for the use of which is intended for

the members benefit.

Any other object that may be notified by the appropriate Government in

the Official Gazette.

Construction of separate fund for political purposes [sec. 16]

Apart from the primary objects, a Trade Union may have certain other politicalobjects. As per Sec. 16 a registered union may constitute a separate fund in

addition to the general fund and the payment of such a fund shall be utilized for

serving civic and political interest of its members.

Right to inspect books of Trade Union. [Sec 20 ]

The account books of a registered Trade Union and the list of members thereof

shall be open to inspection by office-bearer or member of the Trade Union at

such times as may be provided for in the rules of the Trade Union.

Rights of minors to membership of Trade Unions.[Sec 21]

Any person who has attained the age of 15 years may be a member of a

registered Trade Union and enjoy all the rights of a member.


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Disqualifications of office-bearers of Trade Unions. [Sec 21A]

Person shall be disqualified for being chosen as, and for being member of the

executive or any other office-bearer of a registered Trade Union if

he has not attained the age of 18 years;

he has been convicted by a Court in India of any offence involving moral

turpitude and sentenced to imprisonment, unless a period of 5 years has

elapsed since his release.

Change of name [Sec 23] - Any registered Trade Union may, with the consent of

not less than 2/3rd of the total number of its members can change its name.

Cancellation of Trade Union:

The Registrar can cancel/revoke the registration under the following conditions:

a. If the registration is obtained by mistake or by fraud.

b. If the Trade Union ceases to be in existence.c. If the Trade Union has willfully contravened any provisions of law.

d. If the Trade Union has incorporated any rules which is/are inconsistent with

the law of the land.


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However, the Registrar cannot cancel registration without giving a 2 month notice

and without complying the principles of natural justice.

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