Labour Laws Exam Notes Part 2of5

Topics covered:
The Industrial Dispute Act, 1947
The Factories Act, 1948

The Busy Factory

The Industrial Dispute Act, 1947

Definitions:

1. Industrial Dispute: An industrial dispute is defined under section 2(k) of the Industrial Disputes Act 1947, as any dispute or difference between employers and employees, or between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour, of any person. 
2. Workman: A ‘workman’ is defined under section 2(s) of the Industrial Disputes Act 1947, as any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be expressed or implied. 
3. Strike: A ‘strike’ is defined under section 2(q) of the Industrial Disputes Act 1947, as a cessation of work by a body of persons employed in any industry acting in combination, or a concerted refusal, or a refusal under a common understanding, of any number of persons who are or have been so employed to continue to work or to accept employment. 
4. Lock Out: A ‘lockout’ is defined under section 2(L) of the Industrial Disputes Act 1947, as 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.

Objects:

1. To provide for the prevention and settlement of industrial disputes.
2. To promote collective bargaining between employers and employees.
3. To secure an expeditious settlement of industrial disputes.
4. To provide for the investigation and settlement of certain industrial disputes through a Board of Conciliation.
5. To promote cordial relations between employers and workers and to ensure industrial peace and harmony.
6. To provide for the appointment of a Workmen’s Compensation Commissioner and to define his powers and duties.
7. To provide for the appointment of Conciliation Officers and to define their powers and duties.
8. To provide for the constitution of Industrial Tribunals and to define their powers and duties.

Disputes:

1. Trade Disputes: Disputes arising between employers and employees in relation to wages, working hours, working conditions, retrenchment and other matters related to employment.
2. Inter-union Disputes: Disputes between two or more trade unions regarding the terms of employment and conditions of service of the employees.
3. Managerial Disputes: Disputes between employers and managerial staff regarding the terms of employment, wages and other matters related to their employment.
4. Jurisdictional Disputes: Disputes between two or more trade unions regarding the right to represent certain employees.
5. Political Disputes: Disputes between employers and employees arising out of political issues.

Adjudication and arbitration: 

1. Adjudication: 

• Adjudication is a formal method of dispute settlement where a judicial tribunal or an umpire is appointed by the government to hear and decide the dispute. 
• This method is used when the parties to a dispute are unable to arrive at an agreement. 
• The tribunal or the umpire decides the dispute on the basis of the evidence presented to it and its decision is binding on the parties. 

2. Arbitration: 

• Arbitration is a method of dispute settlement where a panel of arbitrators is appointed by the government to hear and decide the dispute. 
• This method is used when the parties to a dispute are unable to arrive at an agreement. 
• The panel of arbitrators decides the dispute on the basis of the evidence presented to it and its decision is binding on the parties.

Settlement:

• Settlement is the process of resolving an industrial dispute. 
• It is the process of arriving at a mutually agreed upon decision that is acceptable to both parties. 
• It is usually done through negotiations or mediation, which is a process of communication between the parties where a third party (mediator) helps them to reach a settlement. 
• The settlement may be in the form of an agreement between the parties, or a court order or an arbitral award. 
• The settlement of an industrial dispute may involve the payment of compensation, reinstatement of employees and other such measures.

Forum under the act:

1. The Industrial Tribunal: The Industrial Tribunal is a quasi-judicial body constituted by the Central or State Government for deciding industrial disputes. The tribunal is headed by a Chairman and consists of two or more members. It has the jurisdiction to hear and decide any industrial disputes referred to it.
2. The Labour Court: The Labour Court is a quasi-judicial body constituted by the Central or State Government for deciding certain matters referred to it. The court is headed by a Judge and consists of two or more members. It has the jurisdiction to decide matters relating to trade disputes and claims of workmen, unfair labour practices, retrenchment of employees, etc.
3. The National Tribunal: The National Tribunal is a quasi-judicial body constituted by the Central Government for deciding certain industrial disputes. It is usually headed by a Judge and consists of two or more members. It has the jurisdiction to decide any industrial dispute of national importance.
4. The Conciliation Officer: The Conciliation Officer is appointed by the Central or State Government to settle industrial disputes through conciliation. He has the power to hold conciliation proceedings and to make a report to the appropriate Government.
5. The Workmen’s Compensation Commissioner: The Workmen’s Compensation Commissioner is appointed by the Central or State Government to decide matters relating to workmen’s compensation. He has the power to determine the amount of compensation to be paid and to make a report to the appropriate Government.

Lay Off: 

Lay off refers to a situation where an employer temporarily stops or reduces the employment of workers due to shortage of raw materials, lack of demand for goods or services, or any other reason. The employer is not required to make any payment to the workers during this period. 

Retrenchment: 

Retrenchment is the termination of employment of an employee due to the closure of an undertaking, or the reduction in the number of employees required by an undertaking. The employer is required to pay the retrenched employee compensation for the loss of employment. 

Closure: 

Closure refers to the permanent closure of an undertaking due to any reason. The employer is required to pay compensation to the workers for the loss of employment. 

Strike: 

Strike is a cessation of work by a body of persons employed in any industry, acting in combination or a concerted refusal by any number of persons employed to continue to work or to accept employment. It is a form of protest by employees against their employer. 

Lock Out: 

Lock out is 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. It is a form of protest by employers against their employees.

The Factories Act, 1948

Definitions:

1. Factory: A ‘factory’ is defined under section 2(m) of the Factories Act, 1948 as any premises including the precincts thereof whereon ten or more workers are working or were working on any day of the preceding twelve months and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, but does not include a mine subject to the operation of the Mines Act, 1952.
2. Manufacturing Process: A ‘manufacturing process’ is defined under section 2(k) of the Factories Act, 1948 as any process for making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing, or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal.
3. Occupier: An ‘occupier’ is defined under section 2(n) of the Factories Act, 1948 as the person who has ultimate control over the affairs of the factory.
4. Worker: A ‘worker’ is defined under section 2(l) of the Factories Act, 1948 as a person employed, directly or by or through any agency (including a contractor) with or without the knowledge of the principal employer, whether for remuneration or not, in any manufacturing process, or in cleaning any part of the machinery or premises used for a manufacturing process, or in any other kind of work incidental thereto, or connected therewith.
5. Health: Health is defined under section 2(o) of the Factories Act, 1948 as physical and mental health, and includes the absence of disease or injury.

Objects:

1. To provide for the health, safety, welfare and working conditions of workers in factories.
2. To regulate the hours of work, leave, holidays and other related matters.
3. To regulate the employment of children and young persons.
4. To ensure the provision of adequate safeguards for the health of workers employed in factories.
5. To provide for the registration and inspection of factories.
6. To provide for the regulation of the use of dangerous machinery and hazardous processes in factories.
7. To provide for the regulation of the maintenance of buildings, machinery and equipment in factories.
8. To provide for the regulation of the disposal of waste material in factories.
9. To provide for the regulation of the storage and handling of hazardous substances in factories.

Licensing and registration of factories:

1. Licensing: Every factory must obtain a license from the appropriate government before it can start operations. The license has to be renewed every year. The application for the license has to be made in the prescribed form along with the necessary documents and fees.
2. Registration: Every factory has to be registered with the Chief Inspector of Factories in the State in which the factory is situated. The application for the registration has to be made in the prescribed form along with the necessary documents and fees.

Health, safety and welfare:

1. Health: The Act provides for measures to ensure the health of workers employed in factories, such as adequate ventilation and lighting, clean living conditions, and provision for first aid and medical attention.
2. Safety: The Act provides for measures to ensure the safety of workers employed in factories, such as the installation of safety appliances, safety guards, and the prohibition of dangerous machinery and processes.
3. Welfare: The Act provides for measures to ensure the welfare of workers employed in factories, such as the provision of canteens, rest rooms, and washing facilities. It also provides for the regulation of hours of work and the payment of wages.

Inspecting staff:

• The Factories Act, 1948 provides for an inspecting staff to inspect factories and to ensure that the provisions of the Act are being complied with. 
• The inspecting staff consists of Chief Inspectors of Factories, Assistant Inspectors and other officers. 
• The inspecting staff has the power to enter any factory at any reasonable time, to inspect the premises and to take samples of the materials and processes used in the factory. 
• They also have the power to issue directions to the occupier of the factory to ensure compliance with the provisions of the Act. 
• They have the power to prosecute any person found guilty of violating the provisions of the Act.

Provisions relating to hazardous processes:

• The Factories Act, 1948 provides for certain precautionary measures to be taken in respect of hazardous processes.
• These include the prohibition of the use of certain dangerous substances, the prohibition of certain processes, the prohibition of certain practices, the adoption of certain safety and health measures, the provision of certain equipment, and the registration of certain processes. 
• The Act also provides for the appointment of a Safety Officer in factories engaged in hazardous processes. 
• The Safety Officer has the responsibility of ensuring compliance with the safety and health provisions of the Act.

Working Hours:

Under the Factories Act, 1948, the maximum working hours for adults are set at nine hours a day and 48 hours in a week. Workers must be given one day of rest in a week.

Holidays: 

Employees working in a factory are entitled to 12 paid holidays in a year. These holidays are in addition to the national and state holidays.

Annual Leave: 

The Factories Act, 1948 provides for 14 days of paid annual leave for employees. This leave is in addition to the 12 paid holidays.

Employment of Women and Young Persons: 

The Factories Act, 1948 prohibits the employment of women and young persons (below the age of 18 years) in certain hazardous processes or occupations. It also restricts the hours of work of women and young persons to six hours a day and prohibits their employment in the night shift.

Safety and Health: 

• The Factories Act, 1948 places an obligation on employers to ensure the safety and health of their workers. 
• Employers are required to provide a safe working environment, adequate ventilation and lighting, and suitable safety devices and equipment. 
• They must also provide proper sanitation facilities, drinking water