LABOUR AND INDUSTRIAL LAW

UNIT 1: INDUSTRIAL JURISPRUDENCE AND LABOUR

1. Labour Policy in India
The Labour Policy in India aims to ensure social justice and economic
development. It is framed to balance the needs of employers and the protection
of workers’ rights. Major features include promotion of collective bargaining,
industrial peace, fair wages, safety standards, and statutory welfare benefits.

2. Industrial Revolution in India

The Industrial Revolution in India began during British colonial rule, leading to the
establishment of textile mills, railways, and mining. However, it gave rise to
exploitative working conditions, long hours, and child labour, which later triggered
demands for labour protection laws.

3. Advantages and Evils of Industrialization

Advantages:

Employment generation, economic growth, urbanization, and technological

advancement.

Evils:

i. Economic : Low wages, job insecurity, poverty cycles

ii. Social : Poor housing, health hazards, increased accidents
iii. Labour Problems : Lack of job security, absence of grievance redressal, union
suppression

4. Principles of Labour Legislation

i. Social Justice: Ensures fair treatment and equitable distribution of wealth

ii. Social Equity: Legal protection to disadvantaged workers
iii. International Uniformity: Compliance with ILO Conventions
iv. National Economy: Regulation of industrial relations for national
productivity

5. Role of ILO (International Labour Organization)

The ILO, established in 1919, promotes social justice and internationally
recognized labour rights. India is a founding member. ILO influences Indian labour
laws through conventions like:

i. Convention No. 87 – Freedom of Association

ii. Convention No. 98 – Right to Collective Bargaining

Though not all are ratified, ILO guidelines shape India's policy framework.

Supporting Readings and Case Study References

 Pavani, Praveen – Analysis of Supreme Court’s worker-friendly

interpretations
 Srivastava, Suresh C. – Emphasizes on Industrial Jurisprudence as
balancing individual liberty with collective welfare
 Singh, Jaivir – Labour law within economic development frameworks
 LABOUR AND INDUSTRIAL LAW

UNIT 2: INTRODUCTION TO INDUSTRIAL RELATIONS CODE

1. Historical Aspect
The Industrial Relations Code, 2020 is part of the Government of India's
initiative to consolidate 29 central labour laws into 4 labour codes. This Code
merges and simplifies provisions from:

i. The Trade Unions Act, 1926

ii. The Industrial Employment (Standing Orders) Act, 1946
iii. The Industrial Disputes Act, 1947

It was passed by the Parliament in September 2020 and notified on 29th

September 2020 (yet to be enforced as of July 2025), aiming to rationalize and
modernize industrial law.

2. Scope of the Code

The Code governs:

 Industrial relations in establishments

 Registration and recognition of trade unions
 Conditions for strikes and lockouts
 Resolution of industrial disputes
 Conditions for layoff, retrenchment, and closure
It applies to all industrial establishments and sets thresholds for certain
provisions (e.g., 300+ workers for prior approval before retrenchment).

3. Objectives of the Code

i. To simplify and unify existing laws

ii. To ensure industrial peace and harmony
iii. To enhance ease of doing business
iv. To protect worker rights while balancing employer interests
v. To ensure speedy and effective dispute resolution mechanisms

4. Key Definitions under Section 2 of IRC, 2020 (make brief notes)

i. Industry [Sec. 2(p)]: Any business, trade, manufacture or occupation,

excluding charitable, sovereign, and domestic services.
ii. Industrial Dispute [Sec. 2(q)]: Dispute between employers and employers,
or between employers and workers, or among workers, connected to
employment or non-employment.
iii. Employer [Sec. 2(l)]: Includes head of the department, occupier, manager,
managing director, or contractor.
iv. Employee [Sec. 2(l)]: Broadly defined to include workers in administrative,
supervisory, managerial, technical, or clerical work.
v. Worker [Sec. 2(zf)]: Excludes those employed in managerial or
administrative capacity earning above the wage ceiling (₹18,000 or as
prescribed).
vi. Strike [Sec. 2(zk)]/Lock-out [Sec. 2(n)]: Cessation of work by workers or
employers, respectively, as a protest.
vii. Lay-off [Sec. 2(t)]/Retrenchment [Sec. 2(zn)]: Inability to provide work
due to certain reasons (e.g., breakdown, shortage) and termination not as
punishment.
viii. Trade Union [Sec. 2(zr)]: Combination of workers/employers formed
primarily to regulate relations.
ix. Standing Orders [Sec. 2(zt)]: Written rules relating to conditions of
employment.
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The Industrial Relations Code, 2020 represents a significant reform in Indian

labour law, balancing the need for a conducive industrial environment with
constitutional protections for workers.
 LABOUR AND INDUSTRIAL LAW

UNIT 3: BI-PARTITE FORUMS

Bi- Partite forums are internal mechanisms established within industrial

establishments to encourage cooperation, resolve grievances, and avoid industrial
disputes at the grassroots level. The Industrial Relations Code, 2020 (IRC),
Chapter II, institutionalizes these forums to promote participative management.

2. Works Committee [Section 3, IRC, 2020]

i. Mandatory in establishments with 100 or more workers.

ii. Composed of representatives of employers and workers.
iii. Objective: Foster good relations, address day-to-day concerns, and
enhance communication.
iv. Empowered to discuss issues affecting workers' welfare but not
authorized to adjudicate disputes.

3. Grievance Redressal Committee [Section 4, IRC, 2020]

i. Mandatory in every establishment with 20 or more workers.

ii. Must include equal representation of workers and employers, and at
least one female member.
iii. Empowered to receive and resolve individual grievances within 30 days.
iv. If the worker is not satisfied, appeal can be made to the employer within 60
days.

4. Comparative Analysis with the Industrial Disputes Act, 1947

Industrial Disputes Industrial Relations Code,

Feature
Act, 1947 2020
Sec. 3 – Mandatory for
Works Committee Retained under Sec. 3 of IRC
100+ workers
Grievance Redressal Sec. 9C – Mandatory for
Retained under Sec. 4 of IRC
Committee 20+ workers
Less detailed, Strengthened timelines and
Scope
enforcement weak representation
Uniformity, female
New Additions -
representation, right to appeal

5. Critical Analysis (Scholarly Views)

 Bhuta, Aishwarya critiques the IRC for strengthening employer discretion

while diluting collective bargaining power of trade unions.
 Ramapriya Gopalakrishnan warns that current reforms roll back historical
gains made by workers, potentially undermining worker representation.

The aims to institutionalize dispute prevention by mandating bi-partite forums.

While structurally similar to earlier provisions, the Code aims for better
implementation through defined procedures and appeal rights. However, critics
argue the reforms risk weakening the collective strength of trade unions.
 LABOUR AND INDUSTRIAL LAW

UNIT 4: TRADE UNIONS

1. History of Trade Union Movement in India

The trade union movement in India dates back to the late 19th century during
colonial rule.

First organized union: Madras Labour Union (1918).

i. Major catalyst: Rowlatt Act (1919) and exploitative conditions in textile and
railway industries.
ii. Formation of AITUC in 1920, and enactment of The Trade Unions Act,
1926 was a landmark to recognize and regulate unions.

2. Comparative Analysis: Trade Unions Act, 1926 vs Industrial Relations

Code, 2020

Industrial Relations Code,

Feature Trade Unions Act, 1926
2020
Registration Simple application to Registrar Codified process under Sec. 6–9
Introduces Negotiating
Recognition No statutory provision
Union/Council (Sec. 14)
Fund Continued with provisions under
General & political funds
Regulation Sec. 15–17
Civil and criminal immunity
Immunities Retained (Sec. 18–19)
under Sec. 17 & 18
Disqualificati
Defined for office-bearers Enhanced under Sec. 21
ons
Dispute Adjudication rights defined (Sec.
Limited scope
Redressal 22–23)

3. Trade Union Provisions under IRC, 2020

Registrar of Trade Unions [Sec. 5]: Appointed by the appropriate government;

empowered to register and regulate unions.

Application for Registration [Sec. 6]: Minimum 10% or 100 workers,

whichever is less, to form a union.

Recognition of Negotiating Union/ Council [Sec. 14]:

i. Sole negotiating union: Must have 51% membership.

ii. Negotiating council: Formed if no union has 51%; representation is
proportionate.

Trade Union Funds [Sec. 15–17]:

i. General Fund: For welfare, administrative expenses.

ii. Separate Fund: For political purposes.
iii. Membership Fee: Not less than ₹1 per month.

Immunity from Civil Suit [Sec. 18]: Protection when acting in furtherance of
trade union objectives.
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Criminal Conspiracy Exception [Sec. 19]: Union activities exempt from

Section 120B IPC under certain conditions.

Disqualification of Office Bearers [Sec. 21]: Persons with certain criminal

convictions or under age 18 are ineligible.

Dispute Resolution [Sec. 22–23]: Adjudication by Industrial Tribunal.

Enforceability of Agreements [Sec. 24]: Registered agreements binding on

parties.

4. Contemporary Analysis

 Adhikary & Banerjee (2022) argue that trade unions are adapting to
India's gig economy and liberalization pressures.

IRC, 2020 is seen as formalizing union rights but critics argue it may restrict
independent unionism by favoring recognized unions only.

The attempts to streamline trade union regulation and recognition, balancing

collective bargaining rights with industrial discipline. However, its success will
depend on effective implementation and political will to protect union autonomy.
 LABOUR AND INDUSTRIAL LAW

UNIT 5: STRIKES AND LOCK-OUTS

Strike [Sec. 2(zk)]: Refusal to work by a group of workers in protest.

Lock-out [Sec. 2(n)]: Temporary closing down or suspension of work by the

employer to pressurize workers.

2. Prohibition of Strikes and Lock-Outs [Sec. 62, ]

No person employed in an industrial establishment shall go on strike or lock-out

without:

a. Giving a 14-day notice (valid for 60 days),

b. Not striking within 60 days of such notice,
c. During conciliation proceedings,
d. 7 days after of conciliation,
e. During adjudication before a Tribunal or National Tribunal and 60 days
thereafter.
f. This provision ensures advance notice and procedural compliance to
avoid abrupt industrial action.

3. Illegal Strikes and Lock-Outs [Sec. 63]

A strike or lock-out is illegal if:

a. It violates the conditions of Sec. 62,

b. It is commenced or continued during conciliation or adjudication,
c. It is conducted in violation of any court order or settlement.

4. Prohibition of Financial Aid [Sec. 64]

Direct or indirect financial support to illegal strikes/lock-outs is prohibited.

Penalties apply to both individuals and organizations aiding such activities.

5. Comparative Analysis with Industrial Disputes Act, 1947

Provisio
IDA, 1947 IRC, 2020
n
Definitio
Sec. 2(q) & 2(l) Sec. 2(zk) & 2(n)
n
Notice 6 weeks prior notice for
14-day notice for all establishments
Period public utility services
Scope Mostly public utility services Applies to all industrial establishments
Covered under Chapter XII, Sec. 86–89
Penalties Under Sec. 26–28
(higher penalties and fines)

6. Key Case Laws

i. The Great Bombay Textile Strike (1982)

Led by Dr. Datta Samant; lasted 18 months; highlighted the limits of unregulated
strikes and need for proper trade union structure.

ii. Buckingham & Carnatic Co. Ltd. v. Workers, AIR 1953 SC 47

 LABOUR AND INDUSTRIAL LAW

The SC held that workers participating in an illegal strike were not entitled to
wages during the strike period.

iii. Indian Iron & Steel Co. Ltd. v. Workmen, (1967) I LLJ 381 (Pat)

Reiterated that workers cannot resort to a strike during conciliation or

adjudication.

iv. B.R. Singh v. Union of India, (1989) II LLJ 591 (SC)

Recognized strike as a legitimate form of protest, but subject to procedural

compliance and reasonable limitations in the interest of public order.

The IRC, 2020 provides a more structured and uniform regulation for strikes
and lock-outs across all establishments. It emphasizes procedural compliance to
maintain industrial harmony while still safeguarding workers’ right to
protest.
 LABOUR AND INDUSTRIAL LAW

UNIT 6: VOLUNTARY REFERENCE OF DISPUTES TO ARBITRATION AND

MECHANISM FOR
RESOLUTION OF INDUSTRIAL DISPUTES

1. Voluntary Arbitration [Sec. 42]

i. Industrial disputes may be voluntarily referred to arbitration before the

dispute is referred to a Tribunal.
ii. A written agreement between the employer and workers is required.
iii. The arbitrator must be a neutral person and not connected with the
dispute.
iv. The arbitration award is binding and enforceable like a court award (Sec. 58).

2. Conciliation Officers [Sec. 43–45]

i. Appointed by the appropriate government.

ii. Role: Promote settlement between the parties to the dispute.
iii. They record the settlement in writing and submit a report to the
government within 14 days or extended period.
iv. Not a judicial body – their function is persuasive, not adjudicatory.

3. Industrial Tribunal [Sec. 46–51]

i. Constituted by the appropriate government.

ii. Deals with non-national level disputes.
iii. Has powers of a civil court under CPC for enforcing attendance, examining
witnesses, etc.
iv. Can grant interim relief, pass binding awards, and interpret existing
settlements.
v. Presiding officer: must have been a High Court judge or District Judge with 3
years’ experience.

4. National Industrial Tribunal [Sec. 52–55]

i. Constituted by the Central Government.

ii. Deals with disputes of national importance or involving establishments in
more than one state.
iii. Presiding officer: Must be a Supreme Court or High Court judge (retired or
serving).
iv. Can review decisions of Industrial Tribunals on request.

5. Disqualifications for Tribunal Members [Sec. 56]

A person is disqualified if:

i. Convicted of an offence involving moral turpitude,

ii. Undischarged insolvent,
iii. Of unsound mind,
iv. Engaged in any employment inconsistent with judicial functions.

6. Procedure and Powers [Sec. 57–58]

i. Arbitrators, Conciliation Officers, Tribunals, and National Tribunals have civil

court powers.
ii. Tribunal can take evidence, summon witnesses, and enforce
attendance.
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Award must be made within 1 year and published by the government.

7. Transfer of Pending Cases [Sec. 61]

All matters pending under the Industrial Disputes Act, 1947 at the time of
notification of the Code are transferred to the equivalent forums under the IRC.

8. Adjustment of Services [Sec. 60]

Services of existing presiding officers (under repealed laws) are adjusted under
the new Code to avoid administrative disruption.

9. Reference to National Industrial Tribunal [Sec. 52]

Reference can be made by the Central Government in case of:

i. National importance, or
ii. Multi-state disputes.

10. Form, Communication, and Commencement of Award [Sec. 58]

i. Awards must be:

ii. In writing,
iii. Signed and dated,
iv. Communicated to the parties, and
v. Published within 30 days, becoming enforceable after 30 days of
publication unless challenged.

The Industrial Relations Code, 2020 creates a streamlined, time-bound, and

structured process of resolving industrial disputes. It balances voluntary
resolution (conciliation and arbitration) with adjudication (tribunals), thereby
reducing prolonged litigation and enhancing industrial peace.
 LABOUR AND INDUSTRIAL LAW

UNIT 7: LAY-OFF, RETRENCHMENT AND CLOSURE

1. Definitions and Key Concepts

Lay-Off [Sec. 2(t)]: Failure, refusal, or inability of the employer to give

employment due to shortage of raw materials, breakdown of machinery, etc.

Retrenchment [Sec. 2(zn)]: Termination of service not as a punishment,

voluntary retirement, or superannuation.

Closure [Sec. 2(p)]: Permanent closing down of a place of employment or part

thereof.

Continuous Service [Sec. 66]: A worker is considered in continuous service if

employed for 240 days in a year (190 days in seasonal industry), including days of
leave, lay-off, or injury.

2. Rights of Workers and Employer Obligations

Section
Provision Key Content
(IRC, 2020)
Lay-Off 50% of basic wages + dearness allowance during
Sec. 67
Compensation lay-off.
No compensation if strike, refusal of alternate
Exemptions Sec. 68
employment, or casual worker.
Retrenchment Notice of 1 month or wages in lieu + 15 days’
Sec. 70
Conditions wages for each completed year of service.
Retrenchment Retrenchment on "last-in-first-out" basis unless
Sec. 71
Procedure recorded reasons provided.
Re-employment Preference for re-employment within 1 year of
Sec. 72
Rights retrenchment.
Transfer Compensation payable on transfer of ownership if
Sec. 73
Compensation service not continued.
60 days’ prior notice to government before closure
Closure Notice Sec. 74
(for establishments with 50+ workers).
Closure Same as retrenchment compensation to all
Sec. 75
Compensation workers.

3. Comparative Analysis: ID Act, 1947 vs IRC, 2020

Industrial Disputes Act,

Aspect Industrial Relations Code, 2020
1947
Scattered across multiple
Definitions Consolidated in Sec. 2
sections
Lay-Off &
Sec. 25C–F Sec. 67–72
Retrenchment
Closure Sec. 25FFA–FFF Sec. 74–75
Compensation
Same method Retained
Calculation
Coverage 100 workers for permission Maintained, but subject to
Threshold requirement notification

4. Landmark Case Laws

 LABOUR AND INDUSTRIAL LAW

i. Kairbetta Estate v. Rajamanickam, AIR 1960 SC 893

▸ Highlighted the employer’s obligation to pay compensation in cases
of lay-off due to lack of raw material.

ii. Digwadih Colliery v. Workmen, AIR 1966 SC 75

▸ Affirmed principles of fair retrenchment and payment of compensation.
iii. Workmen v. American Express, (1985) 4 SCC 71
▸ Emphasized that retrenchment without following legal process is void.
iv. Krishna Bhagya Jala Nigam Ltd. v. Mohammed Rafi, (2006) 9 SCC 697
▸ Clarified that temporary employees are also entitled to protection if
retrenchment procedures are violated.
v. Associated Cement Companies v. Workmen, AIR 1960 SC 56
▸ Interpreted "closure" as a genuine and permanent shutdown and not as a
disguise for wrongful retrenchment.

The Industrial Relations Code, 2020 modernizes and unifies previous laws
relating to lay-off, retrenchment, and closure. While the compensation and
protection mechanisms remain largely unchanged, procedural streamlining
ensures better enforcement and compliance.
 LABOUR AND INDUSTRIAL LAW

UNIT 8: OFFENCES AND PENALTIES

It introduces graded penalties, corporate liability, and empowers courts for

proper adjudication.

1. Offences by Companies [Sec. 91]

When an offence is committed by a company:

i. The company, and

ii. Every person in charge of the conduct of business at the time of the
offence
shall be deemed guilty and liable for prosecution.

 Exception: If the person proves the offence was committed without their
knowledge or they exercised due diligence, they are not liable.

2. Cognizance of Offences [Sec. 92]

No court shall take cognizance of any offence unless:

i. A complaint is made by or with previous sanction of the appropriate

government or its authorized officer.
ii. Offences under this Code are triable by a Metropolitan Magistrate or
Judicial Magistrate of First Class.

3. General Penalty Structure

Provision Violated Penalty

Contravention of provisions Fine up to ₹50,000 (Sec. 85)
Imprisonment up to 1 year and/or fine up to
Repeated offence
₹1,00,000
Fine up to ₹1,00,000 or imprisonment up to 6
Violation of Tribunal/NIT orders
months (Sec. 89)
Wilful failure to implement
Fine up to ₹20,000 + ₹1,000/day (Sec. 87)
settlement/award

4. Landmark Case Laws

i. R.S. Ruikar v. Emperor, AIR 1935 Nag. 149

Recognized the liability of office bearers of trade unions for criminal acts
committed in the union’s name, laying the foundation for vicarious liability in
labour law.
ii. Rohtas Industries Ltd. v. Its Union, AIR 1976 SC 425
SC ruled that a willful non-implementation of an industrial award can
amount to an offence. Reaffirmed that workers are entitled to effective legal
remedy in such cases.

The IRC, 2020, ensures stricter compliance by making offences prosecutable and
holding corporate officers accountable. The enforcement framework is
structured to balance penalties with opportunities for compliance through
settlement (Sec. 90).