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Settlements & Awards

Settlement is defined in Sec. 2(p) of the Industrial Disputes act envisages 2 categories:

(a) a

settlement which is arrived at in the course of conciliation proceedings.

(b) a agreement between the employer & the workmen arrived at otherwise than the course of

conciliation proceedings.

Awards is defined as in Sec. 2 (b) as an interim or a final determination of any industrial dispute

or of any question relating thereto, by any Labour Court, Industrial Tribunal or National

Industrial Tribunal.

On whom it is binding:

i. All the parties to the industrial dispute;

ii. All other parties summoned to appear in the proceedings as parties to the dispute unless they

were so summoned without proper cause;

iii. Where a party referred to in clause (a) or clause (b) is an employer, his heirs, successors or

assignees in respect of the establishments to which the dispute relates.

iv. Where a party referred to in clause (a) or clause (b) is composed of workmen, all persons who

were employed in the establishment or part of the establishment , as the case may be, to which

the dispute relates on the date of the dispute & all persons who subsequently become

employed in that establishment or part.

P eriod of Binding

Settlements:

A settlement arrived at in the course of conciliation proceedings is binding for a period agreed

upon by the parties.

If no such period is agreed upon, the settlement will remain in force for a period of 6 mths. From

the date on which the memorandum of settlement is signed by the parties to the dispute.

It will continue to be binding until the expiry of 2 mths from the date on which one of theparties gives notice in writing to the other of its intention to terminate the settlement.

Awards:

i. An award is binding & will come into operation on the expiry of 30 days from the date of its

publication.



ii. It will remain in operation for a period of 1 year from the date on which the award becomes

enforceable.

iii. Government may reduce the said period & fix such periods as it thinks fit. The government may

also extend the period of operation by any period not exceeding 1 yr. at a time but the total

period of operation of any award cannot exceed 3 yrs. From the date on which it comes intooperation.

iv. Even if period of operation of an award expires, it shall be binding on the parties until 2 mths

have elapsed from the date on which notice is given by one party bound by the award to the

other party intimating its intention to terminate the award.

v. If for any reason the award does not become enforceable, it can never come into operation. The

date on which an award comes into operation may or may not be the date on which it becomes

enforceable.

P enalties & Case studies of settlement & awards

P enalty for breach of settlement or award:

i. Shall be punishable with imprisonment for a term which may extend to 6 mths. Or with fine.

ii. Or with both (and where the breach is continuing one, with a further fine which may extend to

Rs. 200 for every day during which the breaches continues after the conviction for the first.

iii. The court trying the offence, if it fines the offender, may direct that the whole or any part of the

fine realised from him shall be paid, by way of compensation, to any person who, in its opinion,

has been injured by such breach.

Case Studies:

i. Management of Northern India Theatres vs. Presiding Officer Labour Court, Delhi. (1975-I LLJ.

235)

ii. Volkart brothers vs. T.V. Chellapa & Others (1954-7 FJR. 513)

Strikes

Sec. 2(q) defines a strike as follows:

i. The cessation of work by a body of persons employed in any industry acting in

combination ; or

ii. 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 accept

employment.



Following ingredients can be postulated from the definition of strike:

i. Plurality of workmen.

ii. Cessation of work or refusal to continue to work.

iii. Acting in combination or concerted action under a common understanding.

General prohibition of strikes:

No group of workman may strike in the following 5 situations:

1. Conciliation going on before a Board of Conciliation & 7 days thereafter.

2. Adjudication before a Labour Court or Tribunal & 2 mths. thereafter.

3. Appropriate government prohibits the continuance of any strike.

4. Arbitration before an Arbitrator & 2 mths. thereafter.

5. A settlement or an award is in operation.

(Note: prohibition restricted to those matters only which are covered by the settlement or

award.)

Additional restrictions on strikes in P ublic Utility Services (Sec. 22).

Strike notice must be given to the employer & Conciliation Officer.

Strike must not take place for 14 days after the notice has been given.

Strike must not take place after 6 weeks from the notice.

Strike must not take place before the day, if any, specified in the strike notice.

Strike must not take place during conciliation before a Conciliation Officer & 7 days after the

conclusion of such proceedings.

P enalties

P enalty for illegal strikes (Sec 26):

Any workman who commences, continues or other wise acts in furtherance of a strike which is

illegal under this Act, shall be punishable, with imprisonment for a term which may extend to 1 mth.,

or with fine which may extend to Rs. 50, or with both.

P enalty for instigation of illegal strikes (sec. 27):



Any person who instigates or incites others to take part on an illegal strike in punishable with

imprisonment for a term upto 6 mths., or a fine upto Rs. 1000, or with both.

P enalty for giving financial aid to illegal strikes (sec. 28):

Any person who knowingly expends or applies any money in direct support of an illegal strike

is punishable with imprisonment for a term upto 6 mths., or a fine upto Rs. 1000, or with both.

Case Studies:

1. Lakshmi Devi Sugar Mills vs. Ram Sarup (1957-I LLJ. 17 S.C.)

sudden concerted stoppage of work. strikers cannot be

exempted from the consequences. employers has the right to suspend the

striking workmen.

LOCK-OUTS

A lock-out means :-

the 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.

I t means the closure of the place of business and not closure of business itself.

Lock-out is usually used by the employer as a weapon of collective bargaining.

ILLEGAL LOCK-OUTS

Penalty for illegal lock-outs

An illegal lock-out is punishable for a term extending to 1 month or with fine up to Rs. 1000 or

with both.

Penalty for instigation of illegal lock-outs

An illegal lock-out is punishable with imprisonment for a term which may extend to 6 months or

a fine up to Rs. 1000 or with both.

Case Studies :-

Northbook Jute Co. Ltd. Vs. Their Workmen

Indian Cork Mills (P) vs. Their Workmen



Lay off (Chpt. VA & VB)

Section 2 (KK) of the Act defines lay off as the failure, refusal or inability of an employer

on account of shortage of coal & power or raw material or the accumulation of stocks or the

breakdown of machinery or for any other reason to give employment to a workmen whose

name is borne on the muster roll of his industrial establishment & who has not been

retrenched.

Lay off provisions of the Act:

i. Sec, 2 (m) of the Factories Act, 1948.

ii. Sec. 2 (i) of Mines Act, 1952. &

iii. Sec. 2 (f) of Plantation Labour Act, 1951.

In Industrial undertaking where lay off provisions apply, only those workmen will be entitled

to lay off compensation.

A workmen is entitled for compensation for all days of lay off unless there is an agreement

to the contrary between him & the employer to the limit of 45 days in a year.

No compensation shall be paid to the workmen:

i. If he refuses to accept any alternative employment in the same establishment.

ii. If he does not present himself for work at the establishment at appointed time during working

hours atleast once a day.

iii. If such laying off is due to strike or slowing down of production on the part of workmen.

If a workmen has been laid off by his employer due to shortage of power or natural

calamity, the appropriate government makes an enquiry if he thinks fit. If the authority does

not communicate the permission within 2 mths. With the employer then lay off is deemed

to be granted. If the appropriate government refuses the permission for lay off, then lay

off is deemed illegal, then the workmen is entitled for all the benefits from the time he has

been laid off.

Lay Off (Chpt. VA & VB)

Cases regarding Lay-off :-3

1. Sur Enamel & Stamping Works Ltd. V/s Their Workman(1963-II LLJ 367):



Supreme Court said that for 1 year of continuous service it must be shown that a person must

be employed for period not less than 12 months and during those 12 months he must have

worked not less than 240 days.

2. Surendra Kumar Verma V/s Central Government industrial Tribunal (1981-I LLJ.386):

Here the Supreme Court said that it is not necessary for an employee to have worked for the

period of 12 months and just having worked for not less than 240 days will qualify within the

terms.

3. Madras High Court in P. Joseph and others V/s Loyal TextileMills (1975-I LLJ 499):

Badli workman who has completed 240 days of service is entitled to lay-off compensation but

here the badli workman had been excluded from lay-off compensation.

Penalty for Lay-off:-

Any employer who contravenes the provisions of lay - off is punishable with imprisonment for

a term which may extend to Rs.1000/- or both.

Retrenchment (Chpt. VA & VB)

Sec. 2 (oo) defines Retrenchment as the termination by the employer of the service of the

workman for any reason whatsoever, otherwise than a punishment inflicted by way of

disciplinary action.

Retrenchment does not include voluntary retirement superannuation, termination of employment on grounds of ill health; do not amount to retrenchment.

No workmen who has been employed for 1 year can be retrenched until:

i. 1 month notice in written & reason for retrenchment.

ii. 15 days average pay for every completed year of service.

iii. Notice served to the appropriate government.

I. No workmen employed in any industrial establishment who has been to continuous service for

not less than 1 yr. under an employer shall be retrenched by that employer until:

II. Has been given 3 mths notice in written, indicating the reasons for retrenchment. no such

notice shall be necessary if the retrenchment is under an agreement which specify a date for

termination of service.

III. Compensation shall be equivalent to 15 days average pay for every completed years of

continuous service or any part thereof in excess of 6 months



IV. Notice shall be given to appropriate government or such authority & the permission of such

government or authority is obtained.

V. Government or authority after making inquiry may grant or refuse the permission to the

employer within 3 mths. Of the date of service of the notice.

if it does not communicate within 3 mths. Of such notice then the retrenchment is legal. if it does refuse the permission then the retrenchment is illegal.

VI. Sec. 25 N is constitutionally valid.

VII. Authority under Sec. 25 - N exercises powers which are quasi-judicial & not purely

administrative.

Retrenchment :- Case Study

I ndian Hume P ipe Co. Ltd. Vs. Their Workmen

( 1959-II LLJ . 830 )

State Bank of I ndia vs. R. Sundaramony

( 1976-I LLJ . 478 )

Closure

Closure has been defined as the permanent closing down of a place of employment or part

there of.

Under Sec. 25 FFA:

60days prior notice to the appropriate government. But this section shall not apply to:

a) An undertaking in which less than 50 workmen are employed or were employed on an

average per working day in the preceding 12 months.

b) An undertaking setup for the construction of buildings, bridges, roads, canals, dams, or for

other construction, work or project.

Under Sec. 25 FFF:

a) An employer / workmen who is in continuous service for a period on 1 yr. is entitled for noticeof compensation.

b) Compensation under unavoidable circumstances

not exceed the average pay for 3 mths.

The act was amended in march 1976.



Imposing some restrictions on the employers right to layoff, retrenchment & closure.

This special provisions shall apply to all industrial establishments (except seasonal) in which

not less than 300 workmen were employed on an average per working day for the preceeding

12 months.

Under Sec. 25 0

An employer who intends to close down an undertaking or an industrial establishment shall

serve,

a) Approval at least 90 days before the date.

b) It shall not apply to an undertaking setup for the construction of buildings, bridges, roads,

dams, canals, or for other construction work.

If the appropriate government does not communicate the permission within period of 2

months from the application date

The permission applied for shall be deemed to have been granted on the expiration of

the said period of 2 months.

If the permission for closure is refused

The closure of the undertaking shall be deemed to be ill legal.

Full part

The Industrial Disputes Act, 1947

Industrial Conflict

Conflict is inherent in industrial relations today.

Interest of labor and management usually opposes

The prevailing unrest , work stoppages resulting from strikes or lock-outs , slowing down of

production etc.

When issues of conflict are submitted to the management for negotiation, they take the form of

industrial disputes.

Special causes of industrial conflict may be treated as causes of industrial disputes.;

Objectives

To prevent & resolve industrial disputes



Securing amity & good relations between workers & management, for common good

Imp. Definitions

Industrial Dispute :

Any dispute between :

Employers & employers

Employers & workmen

Workmen & workmen

Connected with

The terms of employment or

Conditions of labour of any person.

Define Workman u/s 2(s)

Any person (including an apprentice)

employed in an 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 for the purpose of this

Act includes

any such person who has been dismissed discharged or retrenched in connection with

or as a consequence of an industrial dispute or whose dismissal or retrenchment has led

to the dispute

But, does NOT include a person :

who is subject to Army Act, 1950 , Air Force Act 1950 or Navy Act 1957

Who is employed in police service as an officer or other employee of a prison

Who is employed mainly in managerial or admn. Capacity

A supervisor drawing wages exceeding a specified amount (mentioned in the Rules)

Define Industry [u/s 2(j)]



Any systematic activity carried on by cooperation between employer & his workmen (whether

workmen are employed directly or through an agency) for the production, supply or distribution

of goods or services.

or services with a view to satisfy human wants or wishes (not being wants or wishes which are

merely spiritual or religious in nature), whether or not,-

Whether or not any capital has been invested or such activity is being carried out for the

purpose of making profits

But it DOES NOT include:

Any agricultural operation (except when the agri operation is integrated with another activity &

that is the predominant one)

Hospitals or dispensaries

Educational, scientific, research or training institutions

Khadi or village industry

Any sovereign function of the govt

Any domestic service

Any profession practiced by an individual if the number of persons employed by the individual is

less than ten

Cooperative society employing less than 10 persons

Machinery for the Prevention & Settlement of Industrial Disputes

Authorities appointed under ID Act :

Works Committee

Conciliation Officer

Board of Conciliation

Court of Inquiry

Labour Court

Industrial Tribunal

National Tribunal

Works Committee (u/s 3)



What is the statutory requirement for constituting WC?

Every Industrial establishment in which: 100 or more workmen are employed or

have been employed on any day in the preceding 12 months.

Whom does it consist of ?

Bipartite representatives of both

Representatives of workmen equal to that of employer ,

Term of representatives shall be 2 years

Which type of issues handled ?

Matters arising out of the day to day working of the organisation (e.g health, safety ,

welfare of employees , productivity , quality, cost consciousness)

Consultative body

Conciliation officer

Appropriate govt. may appoint CO

CO may be Labor officer(less than 20 workmen),Labor Commisioner or Deputy Com for more

than 20.

CO work is to induce both the parties to the dispute to come to fair and amicable settlement.

Mediation (negotiate on proposal made by mediatorv/s Conciliation( own proposal)

Send a report (proceedings- successful or failed) to govt. within 14 days of start of proceedings

After considering the govt may refer the dispute to BOC , Labour court, Tribunal or national

tribunal.

Board of concilliation

Composition :Chairman and 2 or 4 members ,

Duties & power same as conciliatory officer

: if dispute is settled then report to be sent to app. Govt.If not then also.Submit within 2 months

Courts of Inquiry

The app govt may constitute COI connected with dispute

A COI may consist of one or more persons as members.Chairman



Inquire into the report and submit to govt within 6 months from commencement of inquiry.

Inquire and reveal the case

Labour court

The app govt may appoint LC any matter specifies in II Schedule

Composition consist of 1 person should be or have been a judge of HC, or for 3 yrs been a

district judge or an add district judge, have held any judicial office in india for 7 yrs,

Matters in II schedule: under standing order,

Application or interpretation of SO, discharge or dismissal of workers, workers wrongly

dismissed, withdrawal of concession or privilege, illegality of strike or lockout, all matters other

than III schedule

Tribunals

Whether in II schedule or III

consist of 1 person should be or have been a judge of HC, or for 3 yrs been a district judge or

an add district judge

Matters; wages , including period, mode of payment, compensatory allowances, hrs of work,

intervals, leave with wages, bonus , profit, pf gratuity, shift work, classification fo grades, rules

of discipline, retrenchment, closure,

National tribunal

Central govt may refer the dispute to NT : if the matter is of national importance

The parties to an industrial dispute are required not to resort to work stoppage if dispute is

pending before the Board of Concilation or adjudication authority.

Methods for settlement and prevention of Industrial dispute

Collective Bargaining: Steps

Presentation in collective manner(demands and grievances)

Discussions, bargaining and negotiations on mutual grounds

Signing of formal agreement or informal understanding

In even of failure,likely resort to strikes or lock outs

Bargaining with the help of third party is called Conciliation or mediation



Voluntary Arbitration

When the parties feel that mutual negotiations will not succeed ,it may decide to submit the

dispute to a neutral person or group of persons for arbitration.

Award given may or may not be binding on parties

Conciliation and Mediation

The aim of conciliator is to break the deadlock ,explain the view point of one party to the other,

convey messages and keep the negotiation going.

Parties may or may not accept the sugestions.

Adjudication

Under the condition when dispute is not settled and parties adhere to strikes and lockouts, Govt

may decide to refer the dispute to adjudication and force the parties to abide by the award of the adjudicator

Prohibit the party from work stoppages.

Compulsory method in which parties are forced to go by the power of the state.

Decision imposed by third party

Basis of decision is law and justice

Referred to Court of Arbitration of Tribunal

Voluntary reference of disputes to arbitration

Sec. 10 (A) (1): Before the Govt. refers a dispute to adjudication, the employer & workmen, can

voluntarily refer it to an arbitrator(s) through a written agreement.

If there are an even number of arbitrators are there an umpire shall be appointed whose

decision shall prevail if the others are equally divided in their opinion.

A copy of the arbitration agreement shall be sent to the appropriate Govt. and the conciliation

officer and the same shall be published in the official gazette within one month.

When the Govt. is satisfied that the persons who have signed the arbitration agreement

represent the majority of each party , the dispute is referred to arbitration and the Govt. issues

a notification (The dispute shall be settled through arbitration .) and .

When a dispute has been referred to arbitration and a notification has been issued, the Govt.

may prohibit the continuance of a strike or lock out



The arbitrator (s) shall investigate the dispute and submit the award to the appropriate Govt.

Case : Liberty Footwear Co.

Karnal Leather Karamcjari Sanghathan Vs. Liberty Footwear Co. , AIR 1990 , SC

Q uestion : If an arbitration agreement is not published, will the arbitrators award still be valid ?

Facts :

Workers Union claimed that the management had illegally terminated more than 200 workmen

.

Workers went on strike .. Violence .. Police.. Deputy Commissioner.. Labour

Commissioner

Both parties agreed to get the dispute settled through an arbitration committee consisting of 5

persons (2 from the management, two from the Union with the D.C as the President)

The committee gave its award to reinstate 159 workers

The management did not reinstate the workers . another dispute arose!

The management challenged the validity of the arbitrartion award .. Writ petition in the High

Court

The ground .. the arbitrartion agreement was not published in the official gazzette as per

requirement of subsec. 3 of Sec. 10 (A) .

The High Court accepted the writ petition i.e requirement of publishing the agreement is

mandatory.

Workmen appealed to the Supreme Court

SC : upheld the HC decision , i.e the arbitration agreement must be published without which the

validity of arbitral award is questionable.

Strike & Lock out

2(q) : Cessation of work by a body of persons employed in an industry acting in combination , or

a concerted refusal , or a refusal under common understanding of any number of persons whoare or have been so employed to continue to work or accept employment.

Relevant provisions : Sec. 10(3) ; 10A (4A); 22-28

STRIKE : A concerted and temporary cession of work by workers with a view to furthering or

protecting their interests and rights an securing a fufillment of their specific demands



LOCKOUT : temporary closing of place of employment or the suspension of work or refusal by

an employer to continue to employ any number of persons employed by him or her

10 (3) : App. Govt. can prohibit the continuance of a strike in connection with a dispute referred

to BOC, LC, IT or NT

10 A (4A) : App. Govt. can prohibit the continuance of a strike in connection with a dispute

referred to arbitration and a notification is issued u/s 10(3A)

Forms of strike

Authorized strikes

Only when union has given consent

Unauthorized strike or Wild Cat strike

Without the approval of the union

Strike by a section of workmen on the spur of moment without any formal preparation,any formal

notice to the employer or consent of relevant unions

General Strikes

Wide coverage.

Depending on strike confined to city,or industries

Particular Strikes

Limited in scope , confined to single plant or or few plants and to a single trade or occupation in

a particular town or city.

Work-to-rule strike:

Employees declare that they will perform their tasks strictly in accordance with the rules prescribed .

may result in slow down.

Ordinary strike

Workers quit their places of work and prevent others,occassionaly by violence but mostly by

persuasion or picketing, from replacing them

Sympathetic Strike :

Conducted out of sympathy for the cause of another group whether on strike or not.

Gherao:



Involves confinement of authorities in their offices by workers to exert pressure on management to

accept their demands

Types based on Techniques

Slow down strike: workers do not stop working ,rather they slow down the pace of work

Q uickie strike : Workers remain in their place of work,but they stop work for a brief period for

few minutes or hours.

Sit-down strike: Workers remain in their place of work but they do not work. Duration is long as

compared to quickie.

Public Utility Service

Any railway service or any transport service

Any service in major port and dock

Any postal, telegraph or telephone service

Any industry which supplies power,light or water to public

Sanitation

Any industry specified in the First Schedule

General prohibition of strikes & lockouts

Sec. 23 : No person employed in any industrial establishment shall go strike in breach of contractand no employer shall declare lockout :

During the pendency of conciliation proceedings before a board and 7 days after the

conclusion of such proceedings

During the pendency of proceedings before a Labor Court , Tribunal or national Tribunal

and two months after the conclusion of such proceedings.

During the pendency of arbitration proceedings before an arbitrator and two months

after the conclusion [Sec. 10A (3a)]

During any period in which a settlement or award is in operation in respect of any

matter covered by the settlement or award.

Strikes & Lock Outs (Chapter V)

Sec. 22 : Prohibition of Strikes & Lock Outs

(1)No person employed in a Public Utility Service shall go strike in breach of contract-



Without giving to the employer , notice of strike, within 6 weeks before striking or

Within 14 days of giving the notice or

Before the expiry of the date of strike specified in such notice

During the pendency of any conciliation proceedings before a CO & 7 days after the


Strikes & Lock Outs (Chapter V)

Sec, 22 (2) :No employer carrying on a Public Utility Service shall lock out any of his workmen -

Without giving them, within 6 weeks before locking out

Within 14 days of giving the notice

Before the expiry of the date of Lock out specified in such notice

During the pendency of any conciliation proceedings before a CO & 7 days after the


Employers obligation : to inform the appropriate govt. about any notice of strike received from

the workmen or any notice of lock out given to them within 5 days of receiving or giving such

notices.

Exceptions

Notice of lockout is not necessary when strike is already in existence , but intimation of the

same is to be sent to the authority specified by appropriate govt.

Notice of strike is not necessary when lockout is already in existence , but intimation of the

same is to be sent to the authority specified by appropriate govt.

Illegal Strikes & Lockouts

A strike or lock out shall be deemed to be illegal if :

It is commenced in contravention of section 22 or 23

In case of arbitration strike prohibit

A lock out in consequence of an illegal strike is NOT illegal and a strike in consequence of an

illegal lockout is NOT illegal.

Prohibition of financial aid

Sec. 25 : No person shall knowingly spend any money to support an illegal strike or lockout.



Any cessation of work without the fault of workmen

Continuous service of One year :

In 12 calendar months, actually worked for at least

190 days establishment below ground

240 days any other case

The number of days on which workman has actually worked shall include:

Days laid off

Leave with full wages

Absent due to temporary disablement caused by accident arising out of & in the course

of employment

Maternity leave of max. 12 weeks

Right of workmen laid off for compensation

A workman other than badli or casual workman whose name is on the muster rolls and who has

completed one year of continuous service ,if laid off ,is entitled to 50% of the total basis wages

and dearness allowance.

If workman is laid off for more than 45 days ,no compensation is payable in respect of any

period of lay off after expiry of first 45 days.

It is lawful for the employer to retrench the workmen at any time after expiry of 45 days and

compensated accordingly.

Workmen not entitled to Lay-OFF compensation

If workman refuses to accept alternative employment in the same est. or another est of the

same employer situated within a radius of 5 miles, if this employment does not call for any

special skill or experience & the wages are also the same .

If he does not present himself for work

If lay off is due to a strike or slow down

Retrenchment



2(ooo) : Termination by the employer of the service of a workman for any reason whatsoever,

otherwise than as a punishment inflicted by way of disciplinary action, but does not include

termination due to :

Voluntary retirement

Superannuation

Non-renewal of service contract

Continued ill health

Retrenchment chapter VA

Conditions precedent to Retrenchment 25 F : No workman employed in an industry who has

cont. service of at least one year, can be retrenched unless

served 1 month notice indicating reasons for retrenchment or wages in lieu of it

has been paid compensation @ 15 days average pay for every completed year of

continuous service or any part thereof in excess of 6 months.

Notice to the app. Govt.

The Procedure

Employer : application for permission to the app. Govt. and its copy to the workmen

Principle for retrenchment 25 G

Last Come , first go

Unless the employer records the reasons for retrenching any other workman.

Closure :

Permanent closing of a place of employment or part thereof

Provisions applicable under chapter VA (51 to 99 workmen)

Sec. 25 FF A : Sixty days notice

Notice of the intention to close down an undertaking is to be given to the app. Govt. 60

days before the intended date of closure.

This condition is not applicable to undertakings :

employing less than 50 workmen on an average / day during the past 12 mths

or



engaged in construction of roads, bridges, canals or other construction work.

Govt. can grant exemption from the requirement of notice period , under exceptional

circumstances (e.g a major accident in the undertaking requiring it to close down)

Special provisions related to Lay off CHAPTER vb

Prohibition of lay off : Sec. 25M

Employer cannot lay off workmen except with the prior permission of the appropriate govt.

except under the following circumstances :

Shortage of power

Natural calamity

Mine : fire, flood, emission of inflammable gas or explosion

The Procedure

Employer : application for permission to the app. Govt. and its copy to the workmen

Special Circumstances

If the employer has already laid off workmen due to the permissible reasons [25 (M) (1)] , one

still has to obtain permission in the prescribed manner in order to continue the lay off .

If an application for permission has been made but app. Govt. does not reply within 60 days, the

permission is deemed to have been granted.

Validity of Govts Order

An Govts order (granting or refusing the permission shall be a binding on both the parties and

shall be in force for a period of one year.

Closure :

Permanent closing of a place of employment or part thereof

Provisions applicable under chapter VA (51 to 99 workmen)

Sec. 25 FF A : Sixty days notice

Notice of the intention to close down an undertaking is to be given to the app. Govt. 60

days before the intended date of closure.

This condition is not applicable to undertakings :



employing less than 50 workmen on an average / day during the past 12 mths

or

engaged in construction of roads, bridges, canals or other construction work.

Govt. can grant exemption from the requirement of notice period , under exceptional

circumstances (e.g a major accident in the undertaking requiring it to close down)

Compensation on closure of an undertaking ?

Every workman who has been in cont. service of not less than one year shall be paid

compensation as per sec. 25 F as if he had been retrenched.

Further , if an undertaking is closed down due to exceptional circumstances beyond the control

of employer the total amount of compensation shall NOT exceed 3 months avg. pay.

The following are NOT exceptional circumstances in this regard :

Financial losses

Accumulation of undisposed stock

Expiry of the period of lease or license

Mine : exhaustion of minerals in an area

The Procedure for closure:Sec. 25 O

Employer : application for permission to the app. Govt. and its copy to the workmen - 90 days

before date of intended closure

Voluntary Measures for prevention and settlement of Industrial Disputes

Settlement without state intervention

Collective Bargaining

Voluntary Arbitration

Statutory Measures for prevention and settlement of Industrial Disputes

With Intervention of Govt.

Compulsory establishment of Bipartite Committees : e.g. Works Committee

E stablishment of Compulsory Collective Bargaining

Conciliation and Mediation : Voluntary or compulsory



Compulsory I nvestigation : e.g. Court of I nquiry

Compulsory Arbitration or Adjudication

ID Typed Part

Documents

Transcript of ID Typed Part