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BLS LLB 5 Years Sem 5 Labour Laws 2024-25 Question Paper with Solutions

Mumbai University Solved Question Papers

Labour Laws

Previous Year Question Paper with Solution

BLS LLB 5 Years · Sem 5

2024-25 Examination

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Mumbai

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First published on munotes.in on 10 August 2026.

Published by munotes.in, Mumbai.

Model answers written and edited by the munotes.in editorial desk.

Passages from this volume may be quoted, in print, online or by an AI system, with credit: name munotes.in and link to this volume's page. The volume may not be reproduced as a whole. Full terms at munotes.in/content-license.

munotes.in is an independent study resource for students of the University of Mumbai. It is not affiliated with the University of Mumbai, and is not endorsed by it.

The University does not publish an official answer key for this paper. The answers in this volume are model answers, written to show how a full-mark answer is built. They are a study aid, not an authority on what an examiner marked.

The question paper reproduced here is the paper as set by the University of Mumbai at the 2024-25 examination.

This subject is examined on two bodies of law at once, and each answer here is written on the statute its own question names. The papers under codes 75801, 75701 and 75811 are answered on the Industrial Disputes Act, 1947, the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, the Industrial Employment (Standing Orders) Act, 1946 and the Employees' Compensation Act, 1923. The papers under code 67121, and the 2024-25 ATKT paper for 60 marks, are answered on the Industrial Relations Code, 2020 and the Code on Wages, 2019. The four Codes were brought into force on 21 November 2025, but the Industrial Relations Code repeals the older central Acts only to the extent named in each commencement notification, and it does not repeal the Maharashtra Act, which is State legislation. Both bodies of law are therefore still examinable, and where a provision has a counterpart in the other, the answer names it and says which is which.

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The Paper as Set

The questions in this volume are the questions asked at the 2024-25 examination, reproduced as the University of Mumbai set them, in the order it set them. Nothing has been reworded, added or left out. Only the answers are ours. See the original question paper.

Duration 2½ hours  ·  Total marks 75  ·  21 questions answered

Instructions printed on the paper

  • Figures to the right indicate maximum marks.

How to use this volume

Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.

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SECTION I

Answer in One or Two Sentences

Any 6 · 12 Marks

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1.What are the major provisions of the Industrial Relations Code 2020 regarding dispute resolution mechanisms?[2]

Answer

Chapter VII of the Industrial Relations Code, 2020, "Mechanism for Resolution of Industrial Disputes", provides:

  1. Section 43: conciliation officers appointed by the appropriate Government to mediate in and promote the settlement of industrial disputes;
  2. Section 44: Industrial Tribunals, each consisting of two members, one Judicial Member and one Administrative Member;
  3. Section 46: National Industrial Tribunals, constituted by the Central Government for disputes involving questions of national importance or affecting establishments in more than one State;
  4. Section 42: voluntary arbitration by written agreement before the dispute is referred; and
  5. Section 4: a Grievance Redressal Committee in every industrial establishment employing twenty or more workers, for the resolution of individual disputes.
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2.How does the Industrial Relations Code 2020 change the process for forming trade unions in India?[2]

Answer

Section 6 of the Industrial Relations Code, 2020 makes two changes to the position under the Trade Unions Act, 1926:

  1. Section 6(1) keeps the old rule that any seven or more members of a trade union may apply for registration; but
  2. Section 6(2) adds a minimum representativeness requirement: no trade union of workers shall be registered unless at least ten per cent of the workers, or one hundred workers, whichever is less, engaged or employed in the establishment or industry with which it is connected are its members on the date of the application; and Section 6(4) requires it to continue to have that number, subject to a minimum of seven, at all times.
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3.What are the thresholds for layoffs and retrenchments under the Industrial Relations Code 2020?[2]

Answer

Two different thresholds must be distinguished.

  1. For lay-off compensation and ordinary retrenchment. Section 65(1), read with Sections 67 to 70: the ordinary provisions on lay-off compensation apply to establishments employing fifty or more workers on an average per working day in the preceding calendar month, excluding seasonal and intermittent establishments. Section 70 applies to any worker in continuous service for not less than one year.
  2. For prior government permission. Section 77(1): Chapter X applies to an industrial establishment, not being seasonal or intermittent, in which not less than three hundred workers, or such higher number as the appropriate Government may notify, were employed on an average per working day in the preceding twelve months. In such an establishment, Section 78 prohibits lay-off and Section 79 prohibits retrenchment without the prior permission of the appropriate Government.
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4.What are the new regulations regarding strikes and lockouts under the Industrial Relations Code 2020?[2]

Answer

Section 62 of the Industrial Relations Code, 2020 extends to every industrial establishment the notice requirement that the Industrial Disputes Act, 1947 imposed only on public utility services.

No person employed in an industrial establishment shall go on strike in breach of contract, and no employer shall lock out:

  1. without giving notice of strike or lock-out within sixty days before striking or locking out;
  2. within fourteen days of giving such notice;
  3. before the expiry of the date of strike or lock-out specified in any such notice;
  4. during the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings; or
  5. during the pendency of proceedings before a Tribunal or National Industrial Tribunal and sixty days after their conclusion, or during arbitration proceedings and sixty days after, or while a settlement or award is in operation on a matter covered by it.
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5.How does the code address the concept of "negotiating unions" or "negotiating councils"?[2]

Answer

Section 14 of the Industrial Relations Code, 2020.

  1. Section 14(2): where only one registered trade union is functioning in an industrial establishment, the employer shall, subject to prescribed criteria, recognise it as the sole negotiating union.
  2. Section 14(3): where more than one registered trade union is functioning, the union having fifty-one per cent or more of the workers on the muster roll, verified in the prescribed manner, shall be recognised by the employer as the sole negotiating union.
  3. Section 14(4): where more than one union is functioning and none has fifty-one per cent, the employer shall constitute a negotiating council consisting of representatives of those registered unions which have the support of not less than twenty per cent of the total workers on the muster roll, with one representative for each twenty per cent and for the remainder.
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  1. Section 14(5): an agreement reached with a negotiating council is said to be reached if it is agreed by the majority of the representatives in the council.
  2. Section 14(6): a recognition or a council so constituted is valid for three years from the date of recognition or constitution, or such further period not exceeding five years in total as may be mutually decided.
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6.How does the ILO address issues related to forced labour and child labour?[2]

Answer

The International Labour Organisation, founded in 1919 by Part XIII of the Treaty of Versailles and since 1946 a specialised agency of the United Nations, addresses both through its Conventions and Recommendations and through the 1998 Declaration on Fundamental Principles and Rights at Work, which names the elimination of all forms of forced or compulsory labour and the effective abolition of child labour among the four fundamental principles binding on all members by virtue of membership, whether or not they have ratified the relevant Conventions.

On forced labour: the Forced Labour Convention, 1930 (No. 29), which requires the suppression of forced or compulsory labour in all its forms, and the Abolition of Forced Labour Convention, 1957 (No. 105). India has ratified both.

On child labour: the Minimum Age Convention, 1973 (No. 138), which requires a minimum age for admission to employment not less than the age of completion of compulsory schooling, and the Worst Forms of Child Labour Convention, 1999 (No. 182). India ratified both in 2017.

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7.What are common examples of unfair labour practices committed by employers?[2]

Answer

Section 84 of the Industrial Relations Code, 2020 prohibits unfair labour practices, and the practices are listed in the Second Schedule. Common examples on the part of employers are:

  1. To interfere with, restrain or coerce workers in the exercise of their right to organise, form, join or assist a trade union, including threatening discharge or dismissal if they join a union, threatening a lock-out or closure if a union is organised, and granting wage increases at crucial periods of union organisation to undermine it;
  2. to dominate, interfere with or contribute support, financial or otherwise, to any trade union, that is, to sponsor an employer-controlled union;
  3. to discharge or dismiss workers by way of victimisation, or in colourable exercise of the employer's rights, or by falsely implicating a worker in a criminal case on false evidence, or in utter disregard of the principles of natural justice;
  4. to transfer a worker mala fide from one place to another under the guise of following management policy;
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  1. to employ workers as badlis, casuals or temporaries and to continue them as such for years, with the object of depriving them of the status and privileges of permanent workers;
  2. to refuse to bargain collectively in good faith with the recognised trade unions; and
  3. to recruit workers during a legal strike which is not an illegal strike.
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8.What are the penalties for non-compliance with the Wages Code 2020 by employers?[2]

Answer

The statute is the Code on Wages, 2019; the paper's "Wages Code 2020" is a slip. Section 54 prescribes the penalties.

  1. Paying less than the amount due. An employer who pays to any employee less than the amount due to him under the Code is punishable with fine which may extend to fifty thousand rupees. If he is convicted of a similar offence again within five years of the first conviction, he is punishable with imprisonment which may extend to three months, or with fine which may extend to one lakh rupees, or with both.
  2. Other contraventions. An employer who contravenes any other provision of the Code or the rules is punishable with fine which may extend to twenty thousand rupees; on a second or subsequent conviction within five years, with imprisonment up to one month, or fine up to forty thousand rupees, or with both.
  3. Failure to maintain records. An employer who does not maintain or keep the records required is punishable with fine which may extend to ten thousand rupees.
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Section 53 allows an officer of the appropriate Government, not below the rank prescribed, to impose penalty in certain cases instead of prosecution. Section 52 provides that no court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try an offence under the Code, and cognizance is taken only on a complaint made by or under the authority of the appropriate Government or an Inspector-cum-Facilitator. Section 56 allows composition of offences not punishable with imprisonment.

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SECTION II

Write a Short Notes

Any 2 · 12 Marks

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9.Compensation of layoff and retrenchment[6]

Answer

A. Lay-off compensation.

Definition. Section 2(t) of the Industrial Relations Code, 2020: "lay-off" means the failure, refusal or inability of an employer, on account of shortage of coal, power or raw materials, the accumulation of stocks, the break-down of machinery, natural calamity or 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. By the Explanation, a worker who presents himself at the appointed time and is not given employment within two hours is deemed to have been laid off for that day.

Compensation. Section 67: a worker, other than a badli or casual worker, whose name is borne on the muster rolls and who has completed not less than one year of continuous service, is entitled, for all days of lay-off except weekly holidays, to compensation equal to fifty per cent of the total of the basic wages and dearness allowance that would have been payable had he not been laid off.

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Application. Section 65: Sections 67 to 69 apply to establishments employing fifty or more workers, and not to seasonal or intermittent establishments, nor to establishments to which Chapter X applies.

Muster rolls. Section 68 requires every employer to maintain a muster roll and to provide for entries by workers presenting themselves for work.

Disqualifications. Section 69: no compensation where the worker refuses suitable alternative employment in the same or another establishment of the same employer within five miles, not requiring special skill or previous experience and at the same wages; where he does not present himself at the appointed time at least once a day; or where the lay-off is due to a strike or slowing down of production by workers in another part of the establishment.

Large establishments. Section 78 (Chapter X, three hundred or more workers): lay-off is prohibited without the prior permission of the appropriate Government, except where it is due to shortage of power or natural calamity, and in a mine also fire, flood, excess of inflammable gas or explosion.

B. Retrenchment compensation.

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Definition. Section 2(zh): 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, excluding voluntary retirement; superannuation; non-renewal or termination of a contract under a stipulation in it; completion of the tenure of fixed term employment; and termination on the ground of continued ill-health.

Conditions. Section 70: no worker in continuous service for not less than one year shall be retrenched until (a) he has been given one month's notice in writing indicating the reasons, and the notice period has expired, or he has been paid wages in lieu; (b) he has been paid, at the time of retrenchment, compensation equivalent to fifteen days' average pay, or average pay of such days as may be notified, for every completed year of continuous service or any part thereof in excess of six months; and (c) notice is served on the appropriate Government in the prescribed manner.

Procedure. Section 71: last come, first go within the category, unless reasons are recorded. Section 72: preference in re-employment to retrenched workers where the employer proposes to take any person into employment within one year.

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Large establishments. Section 79 (Chapter X): three months' notice and the prior permission of the appropriate Government.

Re-skilling. Section 83: the appropriate Government shall set up a worker re-skilling fund, to which the employer contributes an amount equal to fifteen days' wages last drawn for every retrenched worker, and the fund is utilised by crediting fifteen days' wages to the worker's account within forty-five days of the retrenchment.

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10.Prohibition of strike and lock outs under public utility Services[6]

Answer

The position under the Industrial Relations Code, 2020. The Code does not treat public utility services differently. Section 62 extends to every industrial establishment the notice requirement which the Industrial Disputes Act, 1947 imposed only on public utility services. That is itself the most important thing to say.

Section 62(1): no person employed in an industrial establishment shall go on strike in breach of contract:

  1. without giving to the employer notice of strike within sixty days before striking;
  2. within fourteen days of giving such notice;
  3. before the expiry of the date of strike specified in any such notice;
  4. during the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings;
  5. during the pendency of proceedings before a Tribunal or a National Industrial Tribunal and sixty days after their conclusion;
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  1. during the pendency of arbitration proceedings before an arbitrator and sixty days after their conclusion, where a notification has been issued under Section 42(5); or
  2. during any period in which a settlement or award is in operation, in respect of any matter covered by it.

Section 62(2) places the employer under identical restrictions in declaring a lock-out.

Section 62(3): notice of strike or lock-out is not necessary where there is already in existence a strike or lock-out, but the employer shall send intimation of it on the day it is declared to the authority specified by the appropriate Government.

Section 62(6): where an employer receives a notice of strike, or gives a notice of lock-out, he shall report it within five days to the appropriate Government and to the conciliation officer.

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Illegality. Section 63: a strike or lock-out is illegal if commenced or declared in contravention of Section 62, or continued in contravention of an order under Section 42(7). A strike or lock-out already in existence when proceedings begin does not become illegal by that fact, if it was lawful at its commencement; and a lock-out declared in consequence of an illegal strike, or a strike in consequence of an illegal lock-out, is not illegal. Section 64 prohibits financial aid to illegal strikes and lock-outs.

The position under the old law, for contrast. Section 2(n) of the Industrial Disputes Act, 1947 defined "public utility service" as railway and air transport services, service in connection with a major port or dock, any section of an establishment on whose working the safety of the establishment or workmen depends, postal, telegraph and telephone services, industries supplying power, light or water to the public, systems of public conservancy or sanitation, and any First Schedule industry declared to be one for up to six months at a time. Section 22 imposed the notice requirements on those services alone, with six weeks for the notice; Section 23 applied the pendency prohibitions to all establishments.

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11.Payment of Bonus under wages code,2020[6]

Answer

The statute is the Code on Wages, 2019, whose Chapter IV, Sections 26 to 41, deals with payment of bonus and reproduces in substance the Payment of Bonus Act, 1965.

  1. Eligibility and minimum bonus. Section 26(1): there shall be paid to every employee drawing wages not exceeding such amount per month as may be notified by the appropriate Government, who has put in at least thirty days' work in an accounting year, an annual minimum bonus calculated at the rate of eight and one-third per cent of the wages earned, or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the previous accounting year.
  2. Notional wage ceiling for computation. Section 26(2): where an employee's wages exceed the notified amount, the bonus is calculated as if his wages were that notified amount or the minimum wage fixed by the appropriate Government, whichever is higher.
  3. Maximum bonus. Section 26(3): where the allocable surplus exceeds the minimum bonus, the employer shall pay bonus in proportion to the wages earned, subject to a maximum of twenty per cent of the wages.
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  1. Proportionate reduction. Section 27: where an employee has not worked all the working days, the minimum bonus is proportionately reduced. Section 28 governs the computation of working days, counting days of lay-off, leave with wages, maternity leave and absence due to a work injury.
  2. Disqualification. Section 29: an employee is disqualified from receiving bonus if he is dismissed from service for (a) fraud; (b) riotous or violent behaviour while on the premises of the establishment; (c) theft, misappropriation or sabotage of any property of the establishment; or (d) conviction for sexual harassment.
  3. The fund. Sections 31 to 36 govern payment out of the allocable surplus, computation of gross profits and available surplus, sums deductible, and set on and set off of allocable surplus.
  4. Adjustments. Section 37: customary or interim bonus already paid is adjusted against the bonus payable. Section 38: where an employee is found guilty of misconduct causing financial loss to the employer, the loss may be deducted from the bonus payable in that year.
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  1. Time limit. Section 39: bonus shall be paid within eight months from the close of the accounting year, extendable by the appropriate Government on application, for a period not exceeding two years in all.
  2. Non-applicability. Section 41 excludes certain classes of employees and establishments, including employees of the Reserve Bank of India, of specified public sector institutions, and of the Life Insurance Corporation.
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12.Workmen under Industrial relation code 2020[6]

Answer

The Code uses "worker", not "workman", and defines it in Section 2(zr).

"Worker" means any person, except an apprentice as defined in the Apprentices Act, 1961, 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 express or implied, and includes:

  1. working journalists as defined in the Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955;
  2. sales promotion employees as defined in the Sales Promotion Employees (Conditions of Service) Act, 1976; and
  3. for the purposes of any proceeding under the Code in relation to an industrial dispute, any such person who has been dismissed, discharged or retrenched or otherwise terminated in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute.
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It excludes a person: subject to the Air Force Act, the Army Act or the Navy Act; employed in the police service or as an officer or employee of a prison; employed mainly in a managerial or administrative capacity; or employed in a supervisory capacity drawing wages exceeding eighteen thousand rupees per month or such higher amount as may be notified.

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SECTION III

Solve the Following

Any 2 · 12 Marks

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13.Workers at a large automobile manufacturing company decide to go on strike over pay discrepancies. They start the strike without providing the mandatory 14-day notice to the employer.[6]

  • (a) Under the Industrial Relations Code 2020, what are the potential consequences for the workers and the employer if the strike is considered illegal?
  • (b) How should the workers have proceeded to comply with the Code?

Answer

(a) Under the Industrial Relations Code 2020, what are the potential consequences for the workers and the employer if the strike is considered illegal?

The strike is illegal. Section 62(1) of the Industrial Relations Code, 2020 forbids a strike in breach of contract without notice within sixty days before striking, within fourteen days of giving such notice, or before the date specified in the notice. Section 63(1)(i) declares a strike illegal if commenced or declared in contravention of Section 62. The workers here struck without the fourteen days having run, so the strike is illegal.

Consequences for the workers.

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  1. Penalty. Section 86(9): any worker who commences, continues or otherwise acts in furtherance of an illegal strike is punishable with fine which may extend to ten thousand rupees, or with imprisonment for a term which may extend to one month, or with both.
  2. Instigation and financial aid. Section 86(10) punishes a person who instigates or incites others to take part in an illegal strike, and Section 86(11), read with Section 64, punishes the knowing expenditure or application of money in direct furtherance or support of one, with fine up to twenty-five thousand rupees or imprisonment up to one month or both.
  3. No wages. There is no statutory right to wages for the period of an illegal strike, and the settled position under the Industrial Disputes Act, carried into the Code, is that wages are not payable.
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  1. Discipline. Participation is ordinarily misconduct under the standing orders certified under Chapter IV, exposing the participants to disciplinary action, subject to the Tribunal's power to interfere with a disproportionate punishment.
  2. Consequences for the union. Supporting an illegal strike is an unfair labour practice under Section 84 read with the Second Schedule, and in Maharashtra it is also a ground on which the Industrial Court shall refuse recognition (Section 12(6)) or shall cancel it (Section 13(1)(v)) under the MRTU and PULP Act, 1971.

Consequences for the employer.

  1. It may lock out. Section 63(3): a lock-out declared in consequence of an illegal strike is not deemed to be illegal.
  2. It is not free to dismiss at will. It must still follow the certified standing orders and hold a proper domestic inquiry; a victimising dismissal is an unfair labour practice under Section 84 and the Second Schedule.
  3. It has its own obligations. Under Section 62(6) it must report a notice of strike or lock-out to the appropriate Government and the conciliation officer within five days, and it is punishable under Section 86 for its own contraventions of Section 62.
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(b) How should the workers have proceeded to comply with the Code?

  1. Serve a notice of strike on the employer within sixty days before the intended date of striking, in the form and manner prescribed (Section 62(1)(a)).
  2. Specify the date of strike in the notice, and not strike before that date (Section 62(1)(c)).
  3. Wait fourteen days from the giving of the notice before striking (Section 62(1)(b)).
  4. Check that no proceeding is pending. Do not strike during conciliation before a conciliation officer or for seven days after; nor during proceedings before a Tribunal or National Industrial Tribunal or sixty days after; nor during arbitration under Section 42 where a notification has been issued, or sixty days after; nor while a settlement or award is in operation on the same matter (Section 62(1)(d) to (g)).
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  1. Use the machinery first. A pay dispute is an industrial dispute within Section 2(q), and the orderly route is to raise it through the negotiating union or negotiating council under Section 14, then before the conciliation officer under Section 43, and, failing settlement, to have it adjudicated by the Tribunal under Section 44.
  2. Note the definition. Under Section 2(zk) a concerted casual leave by fifty per cent or more of the workers on a given day is itself a strike, so the informal alternative is closed.
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14.An employee at a textile factory is dismissed for repeated lateness, despite the standing orders allowing for a warning system for tardiness. The employee argues that the management did not follow the stipulated procedures before terminating his employment.[6]

  • (a) How do standing orders protect employees from arbitrary dismissal?
  • (b) What recourse does the employee have under the Industrial Relations Code 2020 if the standing orders were violated in this case?

Answer

(a) How do standing orders protect employees from arbitrary dismissal?

Standing orders protect an employee in five distinct ways, all traceable to Chapter IV of the Industrial Relations Code, 2020 and, before it, to the Industrial Employment (Standing Orders) Act, 1946.

  1. They define misconduct in advance. The First Schedule to the Code requires standing orders to provide for "suspension or dismissal for misconduct, and acts or omissions which constitute misconduct". An employer cannot dismiss for conduct it has not previously defined as misconduct and published.
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  1. They prescribe the punishment for each default. Where the standing orders provide a graded response, here a warning system for tardiness, the employer must follow that grading. Dismissal for a default for which the orders prescribe a warning is a breach of the orders themselves.
  2. They prescribe the procedure, that is the charge sheet, the explanation, the domestic inquiry and the order, and that procedure must be followed.
  3. They have statutory force. Certified standing orders are not a contract; they are the conditions of service of the establishment, certified by a public authority after notice to the workers and a hearing, and they prevail over an inconsistent individual contract. Under Section 36 of the 1946 Act oral evidence in contradiction of them is inadmissible.
  4. They are tested for fairness before they take effect. The certifying officer must be satisfied that the provisions are fair and reasonable, and the workers may object and appeal before certification.
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In addition, Section 38 of the Code requires that where a worker is suspended pending inquiry, the inquiry shall ordinarily be completed within ninety days, and subsistence allowance be paid at fifty per cent of wages for the first ninety days and seventy-five per cent thereafter where the delay is not attributable to him.

Applied to these facts: the standing orders provide a warning system for tardiness. Dismissal for repeated lateness, without following that system, is a punishment not authorised by the standing orders for that default, and is therefore bad. Even if dismissal were an available punishment, the employer must show a charge sheet, an opportunity to explain, a fair domestic inquiry, and a reasoned order.

(b) What recourse does the employee have under the Industrial Relations Code 2020 if the standing orders were violated in this case?

  1. Grievance Redressal Committee. Section 4: in an industrial establishment employing twenty or more workers, the aggrieved worker may apply to the Grievance Redressal Committee, which has equal representation of employer and workers and at least one woman member where women are employed. The application must be made within one year of the cause of action, and an appeal lies to the conciliation officer.
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  1. Raise an industrial dispute. A dismissal is an industrial dispute; Section 2(q) read with the proviso covers a dispute connected with the discharge, dismissal, retrenchment or termination of an individual worker, which is deemed to be an industrial dispute even if no other worker or union is a party. The worker may apply to the conciliation officer under Section 43 and, on failure, to the Industrial Tribunal under Section 53.
  2. Powers of the Tribunal. Section 50 empowers the Tribunal, in a case of discharge or dismissal, where it is satisfied that the order was not justified, to set it aside and direct reinstatement on such terms as it thinks fit, or to give such other relief including the award of any lesser punishment. That is the counterpart of Section 11A of the Industrial Disputes Act.
  3. Interpretation of the standing orders. Section 37 of the Code provides for the interpretation of standing orders, and questions of their application are decided by the Tribunal, whose decision is final and binding, as Section 13A of the 1946 Act provided for the Labour Court.
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  1. Wages pending proceedings. Section 56: where an employer prefers proceedings in a High Court or the Supreme Court against an award directing reinstatement, he is liable to pay the worker full wages last drawn during the pendency, if the worker is not employed elsewhere.
  2. Penalty on the employer. Section 86 makes contravention of the Code's provisions on standing orders an offence.
  3. In Maharashtra, the dismissal may also be an unfair labour practice under Item 1 of Schedule IV of the MRTU and PULP Act, 1971, complainable to the Labour Court under Section 28 within ninety days, with power in the Court under Section 30 to order reinstatement with back wages and interim relief.
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15.A group of workers at a manufacturing plant wishes to form a trade union to address issues such as low wages and unsafe working conditions. However, the management threatens to fire anyone who participates in the union formation process.[6]

  • (a) What protections does the Industrial Relations Code 2020 provide for employees attempting to form a trade union?
  • (b) What actions can the workers take if the employer continues to intimidate them?

Answer

(a) What protections does the Industrial Relations Code 2020 provide for employees attempting to form a trade union?

  1. The right to organise is protected as an unfair labour practice provision. Section 84 prohibits unfair labour practices, and the Second Schedule makes it an unfair labour practice on the part of an employer to interfere with, restrain or coerce workers in the exercise of their right to organise, form, join or assist a trade union, including threatening workers with discharge or dismissal if they join a union and threatening a lock-out or closure if a union is organised. The threat described in the problem is precisely that.
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  1. Discrimination and sponsored unions are prohibited. The Second Schedule further prohibits an employer from dominating, interfering with or contributing support, financial or otherwise, to any trade union, and from discriminating in regard to hire, tenure of employment or any term or condition of employment in order to encourage or discourage membership.
  2. Registration is a right, not a concession. Section 6 entitles any seven or more members to apply, subject to the union having at least ten per cent of the workers or one hundred workers, whichever is less; Section 9 governs registration and Section 10 gives an appeal against refusal. The employer has no part in the process.
  3. Immunities. Section 16 gives a registered trade union, its office bearers and members immunity from civil suit in respect of any act done in contemplation or furtherance of an industrial dispute, on the ground only that it induces a breach of a contract of employment or interferes with trade, business or employment. Section 17 gives immunity from punishment for criminal conspiracy under Section 120B of the Indian Penal Code in respect of agreements to further the objects of the union.
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  1. Recognition follows. Section 14 provides for a sole negotiating union at fifty-one per cent or a negotiating council of unions with twenty per cent each, so that once formed the union has a defined route to the bargaining table.
  2. Constitutional protection. Article 19(1)(c) guarantees the right to form associations or unions, subject to reasonable restrictions.
  3. Penalty. Section 86 makes commission of an unfair labour practice an offence.

(b) What actions can the workers take if the employer continues to intimidate them?

  1. Complain of the unfair labour practice. Under the Code the practice is an offence under Section 86, and Section 87 governs cognizance, which is taken on a complaint made by or under the authority of the appropriate Government or by an aggrieved person in the prescribed manner.
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  1. In Maharashtra, use the MRTU and PULP Act, 1971, which gives a better remedy. The threat is an unfair labour practice under Schedule II, and a complaint lies to the Industrial Court under Section 28 within ninety days. Under Section 30 the Court may declare the practice, direct the employer to cease and desist, direct affirmative action including reinstatement with or without back wages, and grant interim relief pending the decision. That last power is the reason the State Act is preferred: a threat of dismissal needs a restraining order now, not an award in three years.
  2. Proceed with registration regardless. The employer's consent is irrelevant. The workers may apply under Section 6 and, if registration is refused, appeal under Section 10.
  3. Raise an industrial dispute about the underlying grievances, low wages and unsafe working conditions, through the conciliation officer under Section 43 and, on failure, the Tribunal under Section 53.
  4. If anyone is actually dismissed, that dismissal is itself an industrial dispute under the proviso to Section 2(q), and the Tribunal may under Section 50 set it aside and order reinstatement.
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  1. Protection during proceedings. The Code's counterpart of Section 33 of the Industrial Disputes Act protects conditions of service during the pendency of proceedings, and office bearers recognised as protected workers may not be punished without the express permission of the authority before which the proceeding is pending.
  2. Take up unsafe conditions under the safety code, since the health and safety of workers in a factory is governed by the Occupational Safety, Health and Working Conditions Code, 2020 and the Factories Act, and a complaint to the Inspector is a separate and immediate route.
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16.Sarah and Tom work for the same company in identical roles with the same responsibilities. However, Sarah earns 20% less than Tom despite having the same experience and qualifications. When Sarah questions her manager, she is told it's "company policy."[6]

  • (a) Does this situation constitute wage discrimination?
  • (b) What legal recourse does Sarah have?

Answer

(a) Does this situation constitute wage discrimination?

Yes.

  1. Section 3 of the Code on Wages, 2019 prohibits discrimination on the ground of gender: "There shall be no discrimination in an establishment or any unit thereof among employees on the ground of gender in matters relating to wages by the same employer, in respect of the same work or work of a similar nature done by any employee." It further prohibits an employer from reducing the rate of wages of any employee, and from making any discrimination on the ground of sex while recruiting any employee for the same work or work of a similar nature, and in the conditions of employment except where employment of women in such work is prohibited or restricted by law.
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  1. "Same work or work of a similar nature" is defined in Section 2(v) as work in respect of which the skill, effort, experience and responsibility required are the same, when performed under similar working conditions, and any difference is not of practical importance in relation to the terms and conditions of employment.
  2. On the facts, the roles are identical, the responsibilities are the same, and the experience and qualifications are the same. The definition is satisfied, and a difference of twenty per cent in wages is therefore discrimination on the ground of gender.
  3. "Company policy" is no answer. Section 3 is a statutory prohibition and cannot be displaced by an employer's practice, and Section 60 of the Code makes any contract or agreement by which an employee relinquishes a right under the Code void to that extent. The employer must justify the difference by reference to something other than gender.
  4. Who decides. Section 4 provides that where a dispute arises as to whether a work is of the same or similar nature, it shall be decided by such authority as may be notified by the appropriate Government.
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The constitutional dimension. Article 14 guarantees equality before the law, Article 15(1) prohibits discrimination on the ground of sex, Article 16 guarantees equality of opportunity in public employment, and Article 39(d) directs the State to secure equal pay for equal work for both men and women. The Supreme Court has held that "equal pay for equal work", though a Directive Principle, is enforceable through Articles 14 and 16 in public employment: Randhir Singh v. Union of India (1982).

(b) What legal recourse does Sarah have?

  1. A claim before the authority. Section 45 of the Code on Wages, 2019: the appropriate Government appoints an authority, not below the rank of a Gazetted Officer, to hear and determine claims arising under the Code, including claims relating to payment of less than the amount due. An application may be filed by the employee, a registered trade union, or an Inspector-cum-Facilitator, and must be made within three years from the date on which the claim arises. On finding the claim proved, the authority may direct payment of the amount due and compensation not exceeding ten times that amount.
  2. Appeal. Section 49: an appeal lies to the appellate authority, an officer not below the rank of Deputy Chief Labour Commissioner or equivalent, within ninety days.
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  1. Penalty on the employer. Section 54(1)(a): paying an employee less than the amount due under the Code is punishable with fine up to fifty thousand rupees, and on a second conviction within five years with imprisonment up to three months or fine up to one lakh rupees or both.
  2. Inspector-cum-Facilitator. Section 51: she may complain to the Inspector-cum-Facilitator, who may inspect, examine records and advise on compliance.
  3. Burden of proof. Section 59: where a claim is made, the burden of proving that the required amount has been paid lies on the employer, which is a substantial procedural advantage to Sarah.
  4. Where the employer is the State or a public authority, a writ petition under Article 226 for enforcement of the principle of equal pay for equal work under Articles 14 and 16.
  5. In an industrial establishment, the difference may also be raised as an industrial dispute about wages, through the conciliation officer and Tribunal under the Industrial Relations Code, 2020.
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SECTION IV

Answer the following

any 3 · 39 Marks

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17.What are the various dispute resolution mechanism under the Industrial Relation code,2020?[13]

Answer

For full marks, cover: the bi-partite forums; conciliation; voluntary arbitration; the Tribunal and the National Industrial Tribunal with their composition; the procedure from dispute to award; the powers of the Tribunal; settlements and awards; and a comparison with the Industrial Disputes Act, 1947.

A. Bi-partite forums, Chapter II.

  1. Works Committee. Section 3: in an industrial establishment employing one hundred or more workers, the appropriate Government may by general or special order require the employer to constitute a Works Committee with equal representation of employer and workers, to promote measures for securing and preserving amity and good relations.
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  1. Grievance Redressal Committee. Section 4: every industrial establishment employing twenty or more workers shall have one or more Grievance Redressal Committees for the resolution of individual disputes, of not more than ten members, with equal representation, and with an adequate representation of women where women are employed. An aggrieved worker may apply within one year of the cause of action; the Committee decides by a majority of the workers' representatives and completes the proceedings within thirty days; and an appeal lies to the conciliation officer within sixty days.

B. Negotiation, Chapter III. Section 14 provides the machinery through which most disputes are settled before they become disputes: a sole negotiating union where one union functions or where one has fifty-one per cent or more of the workers on the muster roll, and otherwise a negotiating council of unions with not less than twenty per cent each, one representative per twenty per cent, an agreement requiring a majority of the representatives, valid for three years and up to five.

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C. Conciliation. Section 43: the appropriate Government may appoint conciliation officers, charged with mediating in and promoting the settlement of industrial disputes, for a specified area or industry, permanently or for a limited period. Section 53 governs conciliation and adjudication: the officer holds proceedings, investigates the dispute, and endeavours to bring about a settlement; if a settlement is reached he sends a report with the memorandum of settlement; if not, he sends a failure report with the reasons, and the parties may then apply to the Tribunal.

D. Voluntary arbitration. Section 42: where an industrial dispute exists or is apprehended, the employer and the workers may, before it is referred for adjudication, by written agreement refer it to arbitration, naming the arbitrator or arbitrators. The agreement is published by the appropriate Government; where the arbitration covers the majority of each party, a notification may be issued so that others concerned may present their case; and the appropriate Government may prohibit the continuance of a strike or lock-out during the arbitration. The arbitration award is submitted to the appropriate Government.

E. Adjudication.

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  1. Industrial Tribunal. Section 44: the appropriate Government may constitute one or more Industrial Tribunals for the adjudication of industrial disputes. Section 44(2): every Tribunal shall consist of two members appointed by the appropriate Government, of whom one shall be a Judicial Member and the other an Administrative Member. Section 44(3): a bench may consist of a Judicial Member and an Administrative Member, or of a single Judicial Member, or of a single Administrative Member. A Tribunal constituted by the Central Government also exercises the jurisdiction of the Tribunal under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.
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  1. National Industrial Tribunal. Section 46: the Central Government may constitute one or more National Industrial Tribunals for the adjudication of disputes which, in its opinion, 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 them. It consists of two members, a Judicial Member and an Administrative Member, and Section 46(5) provides that the Judicial Member shall preside.
  2. Section 47 governs the decision of the Tribunal or National Industrial Tribunal, Section 48 the disqualifications of members, and Section 49 the procedure and powers of the arbitrator, conciliation officer and Tribunals.

F. Powers and consequences.

  1. Section 50: the Tribunal and the National Industrial Tribunal may, in a case of discharge or dismissal, where satisfied that the order was not justified, set it aside and direct reinstatement on such terms as it thinks fit, or give such other relief including the award of a lesser punishment.
  2. Section 55: the form of the award, its communication and commencement.
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  1. Section 56: where an employer prefers proceedings in a High Court or the Supreme Court against an award directing reinstatement, he shall be liable to pay the worker full wages last drawn during the pendency, if the worker is not employed elsewhere.
  2. Section 57: persons on whom settlements and awards are binding. Section 58: their period of operation. Section 59: recovery of money due from an employer. Section 60: commencement and conclusion of proceedings. Section 61: certain matters to be kept confidential.

G. Comparison with the Industrial Disputes Act, 1947.

  1. Bodies abolished: Boards of Conciliation (Section 5), Courts of Inquiry (Section 6) and Labour Courts (Section 7) as separate bodies disappear; their work passes to the Tribunal.
  2. Composition changed: the one-person Tribunal of Section 7A becomes a two-member body with a Judicial and an Administrative Member.
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  1. New forum below: the Grievance Redressal Committee at twenty workers has a defined individual jurisdiction with a time limit and an appeal, which the Works Committee never had.
  2. Access improved: the parties may apply to the Tribunal after a failure of conciliation, so adjudication is less dependent on a government reference than under Section 10 of the old Act.
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18.Explain the characteristic of Lay Off, Retrenchment and closure?[13]

Answer

For full marks, cover: the three definitions from the Code; the characteristics of each; the compensation payable in each; the procedural requirements; the thresholds; and a systematic comparison.

A. Lay-off. Section 2(t) of the Industrial Relations Code, 2020: the failure, refusal or inability of an employer, on account of shortage of coal, power or raw materials, the accumulation of stocks, the break-down of machinery, natural calamity or 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. By the Explanation, a worker who presents himself at the appointed time and is not given employment within two hours is deemed laid off for that day.

Characteristics.

  1. It is temporary. The employment relationship continues and the name stays on the muster rolls.
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  1. The employer is unable, not unwilling. The cause is external, and the listed causes are read ejusdem generis, so a stoppage to break a strike is not a lay-off but a lock-out.
  2. The worker must remain available: he must present himself, and by Section 69 he loses compensation if he does not do so at least once a day, or refuses suitable alternative employment within five miles at the same wages.
  3. Compensation: fifty per cent of basic wages and dearness allowance (Section 67), for a worker other than a badli or casual with one year of continuous service, in an establishment of fifty or more workers (Section 65).
  4. In a Chapter X establishment (three hundred or more workers), Section 78 prohibits lay-off without the prior permission of the appropriate Government, except for shortage of power or natural calamity.
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B. Retrenchment. Section 2(zh): 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, excluding (i) voluntary retirement; (ii) superannuation; (iii) non-renewal of the contract on its expiry or its termination under a stipulation in it; (iv) completion of the tenure of fixed term employment; and (v) termination on the ground of continued ill-health.

Characteristics.

  1. It is permanent as to the individual, but the establishment continues.
  2. It covers every termination outside the five exclusions and outside disciplinary punishment; the words "for any reason whatsoever" are not confined to surplus labour.
  3. Conditions precedent, Section 70: one month's notice in writing indicating the reasons or wages in lieu; fifteen days' average pay for every completed year of continuous service or part in excess of six months, paid at the time of retrenchment; and notice to the appropriate Government.
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  1. Procedure: last come, first go within the category unless reasons are recorded (Section 71); and preference in re-employment where the employer takes on any person within one year (Section 72).
  2. Chapter X establishments: three months' notice and prior government permission (Section 79).
  3. Re-skilling. Section 83: the employer contributes fifteen days' wages last drawn for every retrenched worker to the worker re-skilling fund, credited to the worker's account within forty-five days.

C. Closure. Section 2(h): the permanent closing down of a place of employment or part thereof.

Characteristics.

  1. It is permanent and affects the establishment itself, not merely an individual's service.
  2. Notice. Section 74: an employer intending to close down an undertaking shall serve sixty days' notice on the appropriate Government stating the reasons.
  3. Compensation. Section 75: every worker in continuous service for not less than one year is entitled to notice and compensation as if he had been retrenched.
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  1. Chapter X establishments. Section 80: an employer intending to close down must apply for the prior permission of the appropriate Government at least ninety days before the intended closure.
  2. Transfer of undertaking. Section 73 provides for compensation to workers where the ownership or management of an undertaking is transferred, unless service is uninterrupted, terms are no less favourable, and the new employer is liable to pay compensation on the basis of unbroken service.

D. Comparison.

PointLay-offRetrenchmentClosure
DefinitionSection 2(t)Section 2(zh)Section 2(h)
NatureTemporary stoppagePermanent termination of an individualPermanent closing of the establishment
RelationshipContinues; name on muster rollEnds for that workerEnds for all
EstablishmentContinuesContinuesCeases
CauseShortage, stocks, breakdown, calamityAny reason whatsoever, five exclusionsAny reason
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PointLay-offRetrenchmentClosure
Compensation50 per cent of basic wages and dearness allowance15 days' average pay per completed yearAs on retrenchment
NoticeNone to the workerOne month, or three months in Chapter XSixty days to the Government, ninety days' permission in Chapter X
Government's rolePrior permission in Chapter X onlyNotice always; permission in Chapter XNotice always; permission in Chapter X
On resumptionWorker resumes his postPreference in re-employment, Section 72Nothing to resume
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19.Evaluate the provisions of the industrial relation code concerning gender equality and the rights of women workers?[13]

Answer

For full marks, cover: the constitutional and international background; the specific provisions of the Industrial Relations Code; the position under the companion codes, because the Code cannot be evaluated alone; and then a genuine evaluation, what it does well and what it leaves undone.

A. The background.

  1. Constitution: Article 14 (equality before the law), Article 15(1) and (3) (no discrimination on the ground of sex, and power to make special provision for women), Article 16 (equality of opportunity in public employment), Article 39(a), (d) and (e) (equal right to an adequate means of livelihood, equal pay for equal work for both men and women, and protection of the health and strength of workers), Article 42 (just and humane conditions of work and maternity relief), and Article 51A(e) (fundamental duty to renounce practices derogatory to the dignity of women).
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  1. ILO: the Equal Remuneration Convention, 1951 (No. 100) and the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), both ratified by India.
  2. Case law: Randhir Singh v. Union of India (1982) held equal pay for equal work enforceable through Articles 14 and 16 in public employment; Vishaka v. State of Rajasthan (1997) laid down guidelines against sexual harassment at the workplace, now embodied in the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

B. What the Industrial Relations Code, 2020 itself provides.

  1. Grievance Redressal Committee. Section 4(2) requires that the Committee in an industrial establishment employing twenty or more workers shall have adequate representation of women workers, in proportion not less than the proportion of women workers to the total workers employed. This is the Code's clearest and most concrete gender provision: it puts women on the body that hears individual grievances.
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  1. Gender-neutral definitions. "Worker" in Section 2(zr) and "employee" in Section 2(l) are cast without reference to sex, so every right in the Code, to notice and compensation on retrenchment, to lay-off compensation, to standing orders, to representation by a negotiating union, belongs equally to women.
  2. Trade union rights are equally available. Section 6 entitles any seven or more members to apply for registration; Section 20 confers rights of membership on minors above fifteen; and nothing in Chapter III limits office-bearing or membership by sex.
  3. Standing orders. Chapter IV and the First Schedule require conditions of service, including classification, leave, termination and the acts constituting misconduct, to be defined and certified as fair, which protects women against unwritten and arbitrary practices.
  4. Fixed term employment. Section 2(o) requires a fixed term worker to receive hours, wages, allowances and other benefits not less than a permanent worker doing the same work, and proportionate statutory benefits, which matters because women are disproportionately employed on such contracts.

C. What the companion codes provide, without which the evaluation is incomplete.

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  1. Code on Wages, 2019, Section 3: prohibition of discrimination on the ground of gender in matters relating to wages, and in recruitment, for the same work or work of a similar nature, with "same work or work of a similar nature" defined in Section 2(v) by reference to skill, effort, experience and responsibility. This repealed and absorbed the Equal Remuneration Act, 1976, and Section 59 places the burden of proof on the employer.
  2. Code on Wages, Section 29(d): conviction for sexual harassment is a ground of disqualification from bonus, which is new.
  3. Occupational Safety, Health and Working Conditions Code, 2020: permits the employment of women in all establishments and for all types of work, including before 6 a.m. and beyond 7 p.m. with their consent and subject to prescribed conditions of safety, holidays and working hours, and requires the employer to provide adequate safeguards before employing women in hazardous operations.
  4. Code on Social Security, 2020: consolidates maternity benefit, carrying forward the twenty-six weeks' leave, the creche facility in establishments with fifty or more employees, and the prohibition on dismissal during maternity leave.
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D. Evaluation.

What is achieved.

  1. Consolidation and uniform enforcement. The equal remuneration principle is no longer a stand-alone statute with its own officers; it is enforced by the same Inspector-cum-Facilitator and the same claims authority as every other wage right, with a three-year limitation and compensation of up to ten times the amount due.
  2. Wider reach. Section 3 of the Wages Code applies to all establishments and all employees, organised and unorganised, whereas the 1976 Act applied to notified employments.
  3. Representation, not merely protection. Section 4(2) of the Industrial Relations Code puts women on the committee rather than merely giving them a right to complain to it.
  4. Night work and hazardous work opened up. Removing blanket prohibitions, subject to consent and safety, treats women as workers rather than as a protected class, which is what Article 15(3) permits but does not require.

What is left undone.

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  1. The Industrial Relations Code contains no general anti-discrimination provision. Section 3 of the Wages Code covers wages and recruitment; there is no corresponding prohibition of discrimination in promotion, transfer, training or dismissal in the Industrial Relations Code.
  2. There is no provision on sexual harassment in the Code at all. That subject remains with the 2013 Act, and the Code's Grievance Redressal Committee has no express jurisdiction over it.
  3. No gender representation is required in the negotiating union or negotiating council under Section 14, so women may be present on the grievance committee and absent from the bargaining table.
  4. The unorganised sector remains largely outside. Most Indian women work as domestic workers, home-based workers or agricultural labour, and the Industrial Relations Code applies to industrial establishments; indeed Section 2(p) expressly excludes domestic service from the definition of industry.
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  1. The higher thresholds cut both ways. Raising the Chapter X threshold to three hundred workers removes the prior-permission protection from many establishments, and because women are concentrated in smaller units and in fixed term and contract work, they are disproportionately affected.
  2. Fixed term employment, though given parity of conditions by Section 2(o), also excludes completion of tenure from retrenchment under Section 2(zh)(iv), so a worker whose term simply expires receives no retrenchment compensation, a route to insecure employment in sectors where women predominate.

Conclusion. The Codes advance gender equality principally through the Code on Wages, not through the Industrial Relations Code, which contributes one significant provision, the representation of women on the Grievance Redressal Committee, and otherwise proceeds by gender-neutral drafting. Formal equality is largely achieved; substantive equality depends on enforcement and on reaching the sectors where women actually work.

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20.Discuss the historical context and evolution of trade union laws in India. What were the socio-economic conditions in India at the time that necessitated the formation of the act?[13]

Answer

For full marks, cover: the socio-economic conditions of early industrial India; the early strikes and associations; the Madras Labour Union and the Buckingham Mills case, which is the immediate cause of the 1926 Act; the Act's scheme; later legislation decade by decade; and the position under the Industrial Relations Code, 2020.

A. The socio-economic conditions that necessitated legislation.

Modern industry began in India in the 1850s, with the first cotton mill at Bombay in 1854, the first jute mill near Calcutta in 1855, and the railways from 1853. The conditions in which that workforce laboured explain everything that followed:

  1. Hours without limit. Twelve to sixteen hour days were normal, with no weekly rest, until the Factories Act, 1881 and its successors.
  2. Child and woman labour on a large scale, in dangerous conditions.
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  1. Wages fixed unilaterally, with arbitrary fines and deductions and no legal remedy for their recovery until the Payment of Wages Act, 1936.
  2. No security of employment. Dismissal was at will, with no notice, no compensation and no forum.
  3. No compensation for injury. Until the Workmen's Compensation Act, 1923 an injured workman had to prove his employer's negligence and could be met with the defences of common employment, contributory negligence and volenti non fit injuria.
  4. The jobber or mistry system, under which recruitment, discipline and pay passed through an intermediary who extracted his own share.
  5. Migrant and illiterate workforce, drawn from famine-stricken agricultural districts, with no bargaining power individually.
  6. The First World War (1914 to 1918) brought sharp price rises without corresponding wages, and a wave of strikes followed.
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  1. The founding of the ILO in 1919, of which India was a founder member, obliged the country to report on labour conditions and exposed them to international scrutiny.
  2. The formation of the All India Trade Union Congress in 1920, under the presidency of Lala Lajpat Rai, gave the movement a national voice.

B. The immediate cause: the Buckingham and Carnatic Mills case.

The decisive event was the strike at the Buckingham and Carnatic Mills, Madras, in 1920, organised by the Madras Labour Union, founded in 1918 by B.P. Wadia and generally regarded as the first organised trade union in India. The employers obtained an injunction from the Madras High Court restraining the union's leaders, and sued them for damages in tort for inducing breach of contract of employment. Since a trade union had no legal personality and no immunity, its office bearers were personally liable, and its funds were at risk. The effect was to make trade unionism, in substance, unlawful.

The judgment made legislation unavoidable. N.M. Joshi moved a resolution in the Central Legislative Assembly in 1921 for legislation to protect trade unions, and after the usual delays the Indian Trade Unions Act, 1926 was passed, coming into force on 1 June 1927.

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C. The Trade Unions Act, 1926: what it did.

  1. Registration: any seven or more members could apply, and a registered union became a body corporate with perpetual succession and the power to hold property and to contract.
  2. Immunity from criminal conspiracy (Section 17): no office bearer or member is liable to punishment under Section 120B(2) of the Indian Penal Code in respect of an agreement to further the objects of the union stated in Section 15.
  3. Immunity from civil suit (Section 18): no suit is maintainable against a registered union, its office bearers or members, in respect of an act done in contemplation or furtherance of a trade dispute, on the ground only that it induces some other person to break a contract of employment or interferes with trade, business or employment. This is the direct answer to the Buckingham Mills decision.
  4. Regulation of funds: a general fund for the objects in Section 15, and a separate political fund under Section 16 to which contribution is voluntary.
  5. Rights of minors and outsiders: membership from fifteen, and a proportion of office bearers permitted to be outsiders.
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What it did not do: it said nothing about recognition. An employer was under no obligation to deal with a registered union, which is the gap that has dominated Indian industrial relations ever since.

D. The evolution afterwards.

  1. Bombay Industrial Disputes Act, 1938 and the Bombay Industrial Relations Act, 1946, which introduced the idea of a representative union in the province of Bombay.
  2. Industrial Employment (Standing Orders) Act, 1946: conditions of service to be defined and certified.
  3. Industrial Disputes Act, 1947: the machinery of conciliation and adjudication, works committees, and the regulation of strikes, lay-off, retrenchment and closure. The Fifth Schedule, added in 1982, listed unfair labour practices.
  4. Trade Unions (Amendment) Act, 1947, which would have provided for compulsory recognition, was passed but never brought into force.
  5. Code of Discipline, 1958, a voluntary tripartite instrument, and the First National Commission on Labour (1969), which recommended statutory recognition; neither produced a central statute.
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  1. Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: the first effective statutory recognition scheme in India, giving a union with thirty per cent membership over six months the right to apply to the Industrial Court for recognition, conferring exclusive rights under Sections 20 and 21, and prohibiting unfair labour practices on both sides.
  2. Trade Unions (Amendment) Act, 2001: raised the requirement for registration to ten per cent or one hundred workmen, whichever is less, subject to a minimum of seven, and limited the proportion of outsiders among office bearers.
  3. Second National Commission on Labour (2002): recommended consolidation of the labour statutes into a small number of codes.
  4. Industrial Relations Code, 2020: amalgamated the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946 and the Industrial Disputes Act, 1947 into a single statute; carried forward the ten per cent registration requirement in Section 6 and the immunities in Sections 16 and 17; and, for the first time nationally, provided for a sole negotiating union at fifty-one per cent and a negotiating council at twenty per cent in Section 14.
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21.Examine the legal framework surrounding Unfair Labour Practices on industrial relations?[13]

Answer

For full marks, cover: the concept and why the law needed it; the three statutory schemes, Maharashtra 1971, the Fifth Schedule of 1982 and the Code of 2020; the contents of the lists; the procedure and remedies under each; and an assessment of which works.

A. The concept. An unfair labour practice is conduct by an employer, a trade union or a worker which, though often lawful in form, is directed at destroying the other side's ability to organise, bargain or seek redress. The classic examples are an employer dismissing a union activist for a pretended reason, and a union coercing workers to join it. The law needed a separate category because such conduct is usually within the actor's formal powers, an employer may transfer, a union may picket, so what has to be attacked is the purpose, not the act.

B. The three schemes.

1. Maharashtra: the MRTU and PULP Act, 1971, the first and still the most effective.

  1. Section 26 defines unfair labour practices as those listed in Schedules II, III and IV; Section 27 prohibits them, addressing employers, unions and employees.
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  1. Schedule II, employers, on the right to organise: interference, restraint or coercion in the exercise of the right to organise; threatening discharge or dismissal if workers join a union; threatening lock-out or closure if a union is organised; dominating, interfering with or financing a union; establishing employer-sponsored unions; discrimination in hire, tenure or conditions to encourage or discourage membership; discharge for union activity or for giving evidence; and refusing to bargain collectively in good faith with the recognised union.
  2. Schedule III, trade unions: advising, supporting or instigating an illegal strike; coercing workers in the exercise of the right to self-organisation, including picketing that physically debars non-strikers and acts of force, violence or intimidation; a recognised union refusing to bargain in good faith; coercive activities against certification of a bargaining representative; wilful go slow, squatting after working hours or gherao; and demonstrations at the residences of employers or managerial staff.
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  1. Schedule IV, general practices of employers: discharge or dismissal by victimisation, in colourable exercise of the employer's rights, by false criminal implication, for patently false reasons, on trumped-up allegations of absence, or in utter disregard of natural justice (Item 1); giving regular work to contractors to break a strike (Item 2); mala fide transfer (Item 3); insisting on a good conduct bond from legal strikers (Item 4); favouritism (Item 5); keeping workers as badlis, casuals or temporaries for years (Item 6); discrimination for testifying (Item 7); recruiting during a legal strike (Item 8); failure to implement an award or settlement (Item 9); and force or violence (Item 10).
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  1. Procedure, Section 28: complaint by any union, employee, employer or Investigating Officer, within ninety days of the occurrence, with power to condone delay for good and sufficient reasons; Item 1 of Schedule IV to the Labour Court under Section 7, everything else to the Industrial Court under Section 5; investigation and attempted settlement by the Investigating Officer; decision as far as possible within six months; the order final and not questionable in any civil or criminal court.
  2. Remedies, Section 30: declaration; cease and desist; affirmative action including reinstatement with or without back wages; and interim relief. Section 50: recovery as arrears of land revenue.

2. The central Act: the Fifth Schedule to the Industrial Disputes Act, 1947, inserted in 1982.

  1. Section 2(ra) defines unfair labour practice by reference to the Fifth Schedule; Section 25T prohibits it; Section 25U makes commission an offence punishable with imprisonment up to six months or fine up to one thousand rupees or both.
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  1. Part I lists practices of employers and trade unions of employers, Part II those of workmen and trade unions of workmen, both drawn closely from the Maharashtra Schedules.
  2. The weakness is the remedy: the central Act makes the practice an offence, but provides no direct civil relief. A workman must raise an industrial dispute in the ordinary way, and there is no equivalent of interim relief.

3. The Industrial Relations Code, 2020.

  1. Section 84 prohibits unfair labour practices; the practices are listed in the Second Schedule, again in two parts, employers' and workers'.
  2. Section 86 provides the penalties; Section 87 governs cognizance.
  3. The Code therefore continues the central model, penal rather than remedial, and does not adopt the Maharashtra machinery of complaint, interim relief and affirmative action.

C. Assessment.

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  1. Coverage is now uniform and comprehensive. All three schemes cover both sides, and between them catch interference with organisation, victimisation, sponsored unions, mala fide transfers, the abuse of casual employment, refusal to bargain, illegal strikes, coercion and violence.
  2. The remedies differ sharply, and that is what matters. A penal provision punishes the wrongdoer; it does not restore the dismissed worker or restrain the transfer. The Maharashtra model works because it is remedial: cease and desist, reinstatement with back wages, and above all interim relief while the complaint is pending.
  3. Time limits cut both ways. The ninety-day limit in Section 28 is short and has defeated meritorious complaints; but it also produces decisions while the evidence is fresh, and the Court may condone delay.
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  1. Proof of motive is the practical difficulty. Most of these practices require mala fides to be established, and the complainant rarely has direct evidence. Courts therefore rely on inference from the pattern, the timing against union events, the absence of operational justification, and comparative treatment of others.
  2. The Code was an opportunity not taken. Consolidating three statutes into one would have been the moment to give the central law the remedial machinery Maharashtra has had since 1971. It did not, so a worker in Maharashtra still has a materially better remedy than a worker elsewhere.
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Colophon

This volume prints the 2024-25 Labour Laws paper set by the University of Mumbai for BLS LLB 5 Years Sem 5, with a model answer to each of its 21 questions.

Written and edited by the munotes.in editorial desk. Published by munotes.in, Mumbai.

10 August 2026.

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