Industrial Disputes Act
1. Act introduced in 1947.
2. Aim: To settle the industrial disputes.
To make industrial peace through voluntary negotiations and compulsory adjudication.
3. Provision: The act makes provision for settlement of industrial disputes between employees (workers) and employer (owner).
4. Important Definitions:
(i) Award: An interim or a final decision of an industrial dispute.
(ii) Average pay: The average of wages payable to workman.
Average pay examples:
(a) Monthly paid worker = 3 months
(b) Weekly paid worker = 4 weeks
(c) Daily paid worker = 12 full work days
(iii) Industry: Any business for manufacturing, services, employment, handicraft etc.
(iv) Industrial dispute: Any dispute between employers and employers, employers and workers, workers and workers which are connected with employment or non-employment or conditions of labour or any person
(v) Lay-off: Failure, inability or refusal of an employer to continue to employ workers. Reasons of lay-off may be breakdown of machinery, shortage of raw material, funds, stock or any other reason.
Lay-off is a temporary phase,
It is not the end.
It is suspended period for few duration of emergency.
(vi) Lockout: It is the closing of a place of employment or suspension of work or the refusal by an employer to continue to employ any number of workers employed by him.
(vii) Retrenchment: It is the termination of the services of a worker by the employer for any reason whatsoever other than due to disciplinary action.
(viii) Strike: It is refusal to work by a body of workmen for enforcement of a demand against the employer during an industrial dispute
(ix) Settlement: It means a written agreement between the workers and employer in the course of conciliation proceeding.
(x) Workman: Any person including apprentice employed in any industry for hire or award to do manual, technical supervisory or clerical work.
Authorities under Industrial Dispute Act:
1. Works committee
2. Conciliation officers.
3. Board of conciliation.
4. Courts of enquiry.
5. Labour court
6. Industrial Tribunals.
7. National Tribunals.
1. Works Committee:
◆ Consists of representatives of workers and employer both.
◆ Representatives of workmen are not less than that of employer.
◆ The committee promotes goods relations between workers and employer.
2. Conciliation Officers:
◆ Conciliation officer is appointed by any Appropriate Government.
◆ Conciliation officer is key person to promote the settlement of industrial disputes.
(c) Workman: Any person who is employed in an organisation working according to rules of section (II) of this act, except those who work on casual basis.
(d) Minor: Any person of age not more than 18 years.
(e) Partial Disablement: Disablement which reduces the earning capacity of a workman. It is of a temporary nature.
(f) Total Disablement: Disablement which reduces capacity of workman for total work and then he/she can not earn at all.
4. Main Provisions:
(a) Provisions are related to entitlement, rates, coverage of dependents and distribution of compensation
(b) Compensation is not extending to:
◆ Casual workers
◆ Those employed in armed forces.
◆ Workers covered by ESI Act.
◆ Workers under the influence of drink or drugs.
◆ Wilful disobedience by the worker
◆ Purposeful unsafe behaviour.
◆ Less than 3 days impact of injury.
◆ Accident due to negligence towards safety supports.
Still in case of death after such things, then empployee must be compensated.
(c) The rates of compensation vary depending upon the injury results i.e. death, permanent disablement partial disablement etc.
(d) Amount of Compensation:
Death After Injury:
Amount = (50% of monthly wages) x Relevant factor or 80,000.
Out of above, the amount which is more is compensated.
Plus to this 2,500 towards expenditure of funeral.
Permanent Total Disablement:
Amount = (60% of monthly wages) x Relevant factor or 90,000.
Permanent Partial Disablement:
Proportionate compensation is paid for the injuries are mentioned in the Part II of schedule
(e) Few important rules:
◆ Compensation should be paid as soon as it falls 'Due'.
◆ Medical treatment cost is not considered in compensation.
◆ In case of difficult financial condition of employer, advance partial payment can be given in the start.
◆ If the compensation is not paid, then commissioner may direct to pay simple interest on the amount for delay.
◆ Compensation should not be done directly to the concerned worker/family. It should be given through commissions.
(f) Administration:
◆ Act is administered by the State Government.
◆ Special commissioners may be appointed to execute the act.
(g) Employer has to do compensation under following cases:
1. Injury has taken place during the course of employment.
2. Injury has been caused by an accident.
3. Either of following happens
◆ Temporary disablement or
◆ Permanent disablement or
◆ Partial disablement or
◆ Total disablement or
◆ Death
(h) Industrial Health through Workmen's Compensation Act:
1. Workmen are compensated against accidents.
2. Injured employees are supported in all ways.
3. Indirect awareness about accidents.
4. Assistance after the accidents
5. Financial support to affected employees.
6. Attitude of thanks for help' among workmen.
All these outcomes help to improve industrial health of organisation.
Minimum Wages Act
1.Facts:
(a) Passed in 1948,
(b) Applicable to the entire country.
(c) Recent amendments in 1988.
2. Aim:
To ensure that employed persons are not subjected to exploitative wages by the employers. This act defines the minimum wage payment for certain employments. It aims to provide fair wages to employed persons.
3. Definitions:
(1) Cost of living index number: The index number ascertained and declared by the competent authority to be the cost of living index number applicable to employees in employment.
(ii) Wages: All remuneration capable of being expressed in terms of money, which would, if the terms of contract of employment, express, were fulfilled, by payable to a person employed in respect of his work done.
It does not include:
(a) House accommodation
(b) Light bill
(c) Water charges
(d) Medical expenses
(e) PF or Pension contribution
(f) Travelling allowance
(g) Gratuity payable on discharge
4. Main provisions:
1. Fixation of minimum wages:
◆ The minimum wages may consist of basic rate of wages and special allowance at a rate to be adjusted to keep with the cost of living index.
◆ The government fixes the minimum wages.
◆ This is revised at regular time intervals, but not exceeding five years.
◆ The government fixes the time rate by day or month by such other larger wage period as may be prescribed.
2. Procedure for fixing and revising minimum wages:
◆ Committees formation by appropriate government for wage fixation.
◆ These committees provide necessary inputs and suggestions.
◆ Publishing of proposal (notification) by the government.
◆ Responses from people in two months time against the proposal.
◆ Consideration to valid responses.
◆ Fixation of minimum wages rate.
◆ Declaration by government through official gazette.
3. Advisory Board:
◆ Advisory board is appointed by the appropriate government.
◆ This board is responsible for co-ordination of the committees and subcommittees appointed for the purpose of wage fixation.
◆ Central Advisory Board is appointed by the Central Government for advising the central and state governments in the wage fixation and revision issues.
4. Composition of Committees:
◆ Nomination of members is done by the appropriate government.
◆ Members respresent employers and employees in equal number.
◆ Independent persons do not exceed one third of the toal committee members.
◆ The chairman of the committee is independent member.
◆ The chairman is appointed by the appropriate government.
5. Claims:
◆ Claims are possible under following cases:
1. Payment less than minimum wages.
2. Overtime rate issues.
3. Payment of remuneration for days of rest.
◆ Period for application for claim is 6 months.
◆ Three possibilities in (claims) results:
(a) Employee's stand is correct about minimum wages → Extra Amount + Compensation is paid
(b) Other than minimum wages case of employee and his stand is correct Due Amount + 10 is paid.
(c) Employees stand doubtful and wrong → Penalty to employee upto 50. To be paid to the employer.
6. Penalties:
◆ 500 and imprisonment.
