What are Trade

Unions For?
A.V.Raman
What are their functions? MAIN
COMMENTATORS
• Flanders argues that the basic social purpose of trade unions is ‘job
regulation’ not only within the confines of the industry but also at
the national level in order to influence overall levels of
employment, economic planning, etc.
• The role of ‘job regulation’ or rule making was not to be an end
itself but ‘as a means for the free development of the individual
worker during the course of working life per se’
• However, the political role assigned to labour by the ‘Democratic’
perspective does not give room for the aspirations of the workers to
seize political power and re-organise the whole society on a new
basis. The political role expected of labour by this perspective is to
be within the framework of existing production relations and power
structure.
BROAD FUNCTIONS OF A TRADE UNION
Collective Mobilisation
Organised representation
Channalising workers’ Grievances and seeking their Redressal
To meet unexpected economic requirements and social needs
For securing power
WHAT IS A TRADE UNION?
These are voluntary organizations
of workers formed to
promote and protect their
interests through collective
action
MODES OF ACTION OF A TRADE UNION
• Mutual insurance

• Collective bargaining

• Legal enactment

• Direct action
BROAD OBJECTIVES OF A TRADE UNION
• Organisational

• Economic

• Political-legal

• Welfare
SPECIFIC FUNCTIONS OF A TRADE UNION
• Protect economic interests of the members.
• Influence social relationships (employee–employer) at workplace.
• Influence policies and legislation at national level.
• Redress inequality in distribution of money and power in organisations.
• Precipitate collective withdrawal in the pursuit of sectional interests.
• Collaboration for productivity and gain-sharing.
• Enhancing professional competence of their members.
• Preparation for bargaining i.e. research function of trade unions.
• Communication, welfare function and education i.e. ancillary functions.
Features of a TU
• Internally democratic

• Have a strong leadership and large followership

• Exhibit a responsibility towards their members

• Committed to promote industrial peace and harmony

• Inclined towards collective bargaining that is collaborative and not competitive

• Possess financial security

• Adaptability to change
HOW DO YOU ASCERTAIN MEMBERSHIP?
 Closed Shop/ Union Shop
A system whereby new entrants to employment must join the union within a stipulated period.
 Membership Verification
An official of the Labour Department of the state or central government visits that
enterprise/establishment, obtains the roster of employees from the management and asks each
employee individually whether or not they wish to become members of a union and if so, which union.

 Check-off
Employees are asked to state in writing to the employer whether or not they belong to a union and if
they do, to which union grouping.
 Secret Ballot
This method enables employees to exercise their option secretly, without fear or favour.
Free Riders
These are non-members of the union
who also get the benefit without either
paying subscription or participating in
union meetings and other struggles
UNION SECURITY
• The unions derive its meaning and strength from the number of
members it has. The unions therefore look for following measures
to enhance security:

Recognition as the sole bargaining agent, whereby the union is

accepted as a bargaining agent for all employees in the unit
irrespective of whether they are members or not.

Check-off where an employer deducts union dues directly from

pay and hands over the same to the union as a lump sum.
VARIOUS PERMUTATIONS AND
COMBINATIONS
• Maintenance of membership:
Preferential Union Shop: wherein additional recognition by
agreement is accorded by management to give first chance to union
members in recruitment.
Union Shop: Employs non-union workers as well, but sets a time limit
within which new employees must join the union.
Closed Shop: Employs only people who are already union members,
and in this case the employer must recruit directly from the union.
Open Shop: Does not discriminate based on the union membership in
employing or keeping workers.
Agency Shop: Requires non-union workers to pay a fee to the union
for its services in negotiating their contract
Chamberlain
• Chamberlain (1951) for example identifies two main ‘political
activities of trade unions – industrial government and industrial
management. ‘Industrial Government’ refers to viewing collective
bargaining as a constitution-making institution which makes rules
governing the workers–employers/government relationship in order
to prevent one party being taken by surprise.

• ‘Industrial-
management’ refers to seeing union representatives participating
in the management function of the enterprise
in the areas of mutual, rather than Competing interests.
Who are the TU’s responsible to?
• The TU’s are primarily responsible to their own members and their welfare.

• Their primary commitment is towards their members not the firm or any national order

• The union collects subscription fees for protecting the interests of their members as they see it and not in
accordance with interests seen as best by other members

• The primary activity of a TU leadership is representation of their members. No other organisation can do
this. Trade Unions promote sectional interests the interests of the population they intend to organise.

• From this premise flows the claim that Trade Unions exist to promote the interests of the members they
claim to represent.

• So what do exactly TU’s do-It can be said that TU’s primarily engage in the activity of Collective Bargaining.

• What then this Collective Bargaining-Collective Bargaining is a method of determining terms and conditions
of employment by negotiation between representatives of the employer and union representatives of the
employees. The results of this bargaining process is set forth in a collective bargaining agreement .
Collective bargaining determines the terms and conditions of the employment for all workers in the
bargaining unit. It is different from negotiations between a single employee and employer.
What is the outcome that Unions work for?
• Shorten working hours.
• Regulation of wages and raising them and regulating a wide range
of issues pertinent to members job and work.
• Ensure better working conditions and prevent the employer from
tightening the labour process and deskilling labour.
• Unions work towards ensuring that employers do not have a carte-
blanche in their decision making and authority and strive to lessen
or mitigate the dependence of employees on market fluctuations.
• This they do by constantly monitoring employer activity and
adhering to rules which protect material standards of living,
security and status.
DEFINING TRADE UNIONS
• Trade Unions fight against and negotiate with employers to
establish rights which entail a corresponding set of obligations
through collective agreements and by being vigilant to day to day
working practices. These rules and collective agreements secure to
employees-
• The right to a fixed rate of wages
• The right to not to work longer than a certain number of hours
• The right to not to be dismissed without consultation or
compensation.
• As Flanders says this means TU’s work towards creating a social
order in industry embodied in a code of industrial rights and
enabling workers to gain greater control over their working lives.
 TU’s are a process, a movement and an
organisation
• They are a process because the mirror an amoebic organism and have to be
adaptable and dynamic.
• They are a movement because the members of the movement share the same
ideas and sentiments in some measure and they want to achieve the same
objectives
• They are an organisation because they have a coherence and cohesive structure
and must ensure that members comply with its decisions. This is done through
sanctions and rewards to uphold internal discipline.’ On the strength of its
sanctions rather than an appeal of its objectives does the unity and power of an
organisation depend’ Flanders.
• The establish enduring relationships with employers through collective
bargaining.
Therefore let us summarise
• A TU is an association either of employees or employers or of
independent workers
• It is a relatively permanent formation of workers and is never a
temporary or casual form of workers. It is formed on a continuous
basis.
• It is formed for securing certain economic [wages, working and
living conditions], social benefits for members. Collective strength
immunises workers from ad-hoc managerial action.
• It emphasises joint-coordinated and collective bargaining.
Three Union typologies you need to know
on the basis of membership
• Industrial Union consists of many workers working in the same
industry or company regardless of their jobs and is vertical in
nature. Covers skilled and unskilled workers.
• General Union- Consists of workers employed in different
industries and crafts within a particular city or region. Workers
become a part of a general crowd with varying interests.
• Federations- National level entities which plant level unions, craft
unions industrial unions are affiliated. These ae apex bodies co-
ordinating the efforts of various unions in their fold.
Some important trade unions in India
• INTUC [ Indian National Trade Union Congress]
• Centre of Indian Trade Unions[CITU]
• Hind Mazdoor Sabha
• All India Trade Union Congress[AITUC]
• Bharatiya Mazdoor Sangh
• Centre of Indian Trade Unions
• AIRMU[All India Railway Mazdoor Union]
Important Federations
• Besides the affiliated unions and their federations, there are a large number of associations and federations which
have not joined any one of the Central Workers’ Organizations. Some of are as under:

• All India Bank Employees’ Association

• All India Bank Employees’ Federation

• All India Insurance Employees’ Association

• All India Defense Employees’ Federation

• All India Railway men’s Federation

• National Federation of Indian Railway-men

• National Federation of Posts and Telegraphs Employees

• All India Private Employees Federation

• All India Electricity Employees Federation

• All India Port and Dock Workers Federation

• All India Defence Workers Federation

• All India Chemical and Pharmaceutical Employees Federation

Trade Union legislation governing workers
in India
• Indian Trade Unions Act, 1926. The Act deals with the registration
of trade unions, their rights, their liabilities and responsibilities as
well as ensures that their funds are utilised properly. It gives legal
and corporate status to the registered trade unions. It also seeks to
protect them from civil or criminal prosecution so that they could
carry on their legitimate activities for the benefit of the working
class.
• The Act is applicable not only to the union of workers but also to
the association of employers. It extends to whole of India. Also,
certain Acts, namely, the Societies Registration Act, 1860; the Co-
operative Societies Act, 1912; and the Companies Act, 1956 shall not
apply to any registered trade union, and that the registration of any
such trade union under any such Act shall be void
Who does it apply to and what does it
do?
• Extends to whole of India.

• Applies to all kinds of unions of workers and associations of employees,

which aims at regularizing labour-management relations.
• Provide for the registration of trade unions.
• Purpose
• To accord registered trade unions—immunity to office bearers and
members from civil and criminal liability an respect of legitimate trade
union activities.

• This protection is provided under Section-120 B, sub-section 2, of the

Indian Penal Code
WHAT IS A TRADE UNION ACCORDING TO
IT?
• A trade union is a combination, whether temporary or permanent,
formed for regulating the relations not only between workmen and
employers, but also between workmen and workmen or between
employers and employers for imposing restrictive conditions on the
conduct of any trade or business, and includes any federation of
two or more unions.
STOP-PAY HEED The crux of the Act
• The object of the Act is to make provisions for the
registration of Trade Unions formed by the workers to
protect their legitimate rights while fighting with
employers.

• The Act was enacted with the object of providing for the
registration of trade unions and verification of the
membership of trade unions registered so that they may
acquire a legal and corporate status.
• As soon as a trade union is registered, it is treated as an
artificial person in the eyes of law, capable of enjoying the
rights and discharging liabilities like a natural person
The 10 percent clause
• there must be at least 10% or 100, whichever is less, members who
are engaged or employed in the establishment or industry to which
it is connected.
• If more that half of the persons who applied for the registration
cease to be members of the union or expressly disassociate
themselves from the application, the application will be deemed to
be invalid.
WHEN IS IT BORN -REGISTRATION
• Any trade union formed with at least seven members may apply
for registration to the Registrar with following documents:
A copy of the rules of the trade union.
Names, occupation and the addresses of the members making
the application.
Name of the trade union and the address of its office.
Designation, names, age, addresses and occupation of the office
bearers of the trade union.
In case already in operation, then should submit statement of
accounts/ assets and liability.
Appropriate Government
• In relation to TU’s whose objectives are not confined to one state
the appropriate government is the central government. In relation
to other unions the appropriate government is the state
government.
• Executive implies the body which the management of the TU is
entrusted.
 Power to call
Provisions to for further
Application be contained particulars
Appointment Mode of Certificate of
for in the rules and to Registration
of Registrars. registration registration
registration of a Trade require
Union alterations of
names

29
Appointment of registrars(Sec. 3)
-Appointed by “appropriate Government”
- appropriate Government can also appoint as many
additional and Deputy Registrars of trade unions.
-But limits will be defined by Registrar
Mode of registration(Sec. 4)
-If the number of employees in the particular establishment is
less than 100 then 10% of the total employees is required to
form a trade union If the number of employees in a particular
establishment is more than 100 then the minimum number of
members required to form a trade union is 100 .
30
3) Application for Registration(Sec. 5)
-Application for registration of TU shall be made
to Registrar in comply with Rules and statement
of following particulars:
Names,
Name of the Trade
Occupations &
Union & Address of
Address of the
its head office
members

Where is the
Titles, Names, Ages,
Existence of TU
Addresses &
from past 1 Year
Occupations of
before making this
office Bearers of TU 31

application
4) Provisions to be contained in the Rules of
Trade Unions(Sec. 6)
list of members of Whole of the objects
TU and their for which the TU has
Name of TU
inspection been established.
-
admission of ordinary
Whole of the purpose members(employee) to
Payment of whom the TU is
for which the general subscription 25
funds of the TU shall connected & the number
paise/month/mem of temporary members
be applicable. ber as office-bearers(forms
the executive of TU)

Manner for every

Conditions under- Manner of
appointment and removal
benefit entitled to Annual Audit
of office-Bearer/
members of the account
Dissolve of TU 32
books
5) Power to call for further particulars and to
require alterations of names(Sec. 7)

• If TU is proposed to be registered is identical

with that by which any other existing

• shall refuse to register TU until such alteration

has been made.

33
6) Registration(Sec. 8)
Registrar, on being satisfied that the TU has
complied with all the requirements of this Act in regard
to registration, shall register the TU within a
period of 60 from the date of such
days
compliance.
7) Certificate of registration
in the prescribed form which shall be conclusive
evidence that the Trade Union has been duly
registered under this Act.

34
What happens after a TU is recognised?
• Registration is not mandatory though several benefits accrue after registration. It will become like a
voluntary association for example a music club or voluntary service association without registration.

• The TU upon recognition acquires the following function

• ->. It becomes a body incorporated by the name under which it is registered, and also becomes a legal entity distinct from
its members of which it is composed.

• It has perpetual succession and a common seal.

• It has the power to acquire and hold both movable and immovable property.

• It has the power to contract.

• It can sue and be sued by the name under which it is registered,

• Under the present law, registration is not compulsory, unregistered trade unions are not illegal either.

• But the benefits conferred by law on registered unions will not be available to unregistered trade union.

• An unregistered trade union has neither corporate existence nor legal entity.

•
IMMUNITIES
• 1.As per section 13, upon registration, a trade union becomes a legal entity and as a
consequence, it gets perpetual succession and a corporate seal, it can acquire and hold
movable and immovable property, contract through agents, and can sue and get sued.
• 2. Under section 15 a registered trade union has a right to establish a general fund.
• 3. Under section 16, a registered trade union has a right to establish a political fund.
Subscription to this fund is not necessary for a member.
• 4. Under section 17, 18, and 19 a registered trade union gets immunity in certain
criminal, civil, and contractual proceedings.
• 5. Under section 24, trade unions have the right to amalgamate.
• 6. Under section 28-F, the executive of a registered trade union has a right to negotiate
with the employer the matters of employment or non-employment or the terms of
employment or the condition of labor of all or any of the members of the trade union
and the employer shall receive and send replies to letters and grant interviews to such
body regarding such matters. It further provides that the executive is entitled to post
notices of the trade union meant for its members at any premises where they are
employed and that the employer shall provide reasonable facilities for that.
Dissolution
• When a registered trade union is dissolved, the notice of the
dissolution signed by the seven members and by the secretary of
the trade union is required to be submitted within 14 days of the
dissolution to the Registrar for verification as to whether the
dissolution has been effected as per rules of the union.

• In case the rules do not provide for distribution of funds

consequent to dissolution, the Registrar shall divide the funds
among the members in such manner as prescribed.
What if two TU’s want to combine
together?
• Any two or more registered trade unions may become
amalgamated together as one trade union, with or without
dissolution for division of funds of such trade unions, or either or
any of them, provided that:
The votes of at least half of the members of each or every trade
union, who is entitled to vote are recorded.
At least 60 per cent of the votes recorded are in favour of the
proposal.
What is this appeal the bare act[see slide
below]
• Any person aggrieved by any refusal of the Registrar to register a
Trade Union or by the withdrawal or cancellation of a certificate of
registration may, within such period as may be prescribed, appeal—
• (a) where the head office of the Trade Union is situated within the
limits of a town [a metro or a town of consequence] to the High
Court
• (b) where the head office is situated in any area[in accordance with
the hierarchy of the judiciary], to such Court or [a district court for
example], not inferior to the Court of an additional or assistant
Judge of a principal Civil Court of original jurisdiction.
Change of name of a Trade Union
• Change of Every registered. TU can change its name by a resolution
passed by two – thirds of members by the union in a General
Meeting under intimation to the Registrar of Trade Union
Protesting against cancellation
• Under section 27 of the act, upon dissolution of a trade union, at
least seven or preferably more members must send a notification to
the registrar of Trade Unions within their territory within 14 days of
dissolution and the registrar shall register it after verifying that the
dissolution has been done as per the provisions of this act.
• Further, if the rules of the trade union do not provide for
distribution of the funds upon dissolution, the registrar may
distribute the funds in such manner as may be prescribed.
Circumstances under which cancellation
of registration can be considered
• 1. The application of the trade union is to be verified in the
prescribed manner and is found to be wrong-[Like you submit your
Visa application to the US Embassy or UK Home office with wrong
documentation]-False documentation
• 2. If the trade union has ceased to exist or the membership has come
down below 100 in a factory of 1000 or 10 percent of the extant
strength it is a fit candidate for de-recognition.---Dipping
numbers
Continued
• When the application is not made by the trade union,
• When the trade union has ceased to exist or
• If the Registrar is satisfied that the TU has called for or participated
in any illegal strike
• The Registrar, on receiving an application from the Union for
withdrawal or cancellation or registration, must satisfy himself that
the withdrawal or cancellation of registration was approved by a
general meeting of a trade union. For this purpose, the Registrar
may call for such further information as he thinks necessary.
What can the court do upon receiving
the plea for setting aside the request?
• The appellate Court may dismiss the appeal, or pass an order
directing the Registrar to register the Union and to issue a certificate
of registration under the provisions of section 9 or setting aside the
order or withdrawal or cancellation of the certificate, as the case
may be, and the Registrar shall comply with such order.
• An appeal must be made within 60 days of the date on which
registrar passed the order against which the appeal of de-
recognition is made.
The appeal is to be filed in High Court.
The Appellate Court may..
- Dismiss the appeal or
- pass an order for registration and
issue a Certificate of Registration or
- Set aside the order for withdrawal
or cancellation of the certificate.

45
GENERAL FUND OF A TU
The general funds of a registered trade union shall not be
spent on any other objects than those specified in the Act.
Also, a registered trade union may constitute a separate
fund, from contributions separately levied for or made to
that fund, for the promotion of the civic and political interest
of its members. No member shall be compelled to contribute
to such fund and a member who does not contribute to the
said fund shall not be excluded from any benefits of the
trade union, or placed in any respect either directly or
indirectly under any disability or at any disadvantage as
compared with other members of the union by reason of his
contribution to the said fund.
How can the money be taken from the
pot?
• A Trade Union cannot spend the funds on anything the office bearers want. It can spend
funds only on the activities specified in Section 15. These include:
• 1. salaries of the office bearers.
• 2. expenses required for the administration of the trade union
• 3. compensation to workers due to loss arise of any trade dispute.
• 4. welfare activities of the workers including housing, clothing, or any such activity.
• 5. benefits to the workers or their dependents in the case of unemployment, disability,
or death.
• 6. publishing material for creating awareness in the workers.
• 7. legal expenses required for defending or bringing a suit.
• 8. education of workers or their dependents.
• 9. expenses for medical treatment of workers.
• 10. taking insurance policies for workers
WARNING DO’S AND DON’T’S FOR TU’S
• For example- In the Mario Raposo vs H M Bhandarkar and others 1994 case - Office bearers of a
trade union invested the money from general fund into shares of UTI. This was held invalid
because it is a speculative investment.
• 2. A trade union cannot force members to subscribe to political fund under section 16.
• 3. Under section 20 a trade union must make available all its record books of accounts and list of
membership for inspection upon request of any member or his representative.
• 4. Section 21 allows minors more than 15 yrs of age to be members of a trade union. However,
such minors cannot hold office.
• 5. Under section 21-A, a trade union cannot appoint a person who has been convicted of a crime
involving moral turpitude and has been imprisoned for 6 months or more within last 5 years.
• 6. As per section 22, at least half of the office bearers of a trade union of workers of unorganized
sector must be engaged or employed in an industry to which the trade union is connected. Also,
while a union has a right to remove any office bearer, this power must be used judiciously and
rules of natural justice must be followed.
• 7. Under section 28, a general statement, audited in a prescribed manner, of all income and
expenses must be sent to the registrar every year.
DEAFAULTING IN DOCUMENTATION
ELEMENTARY MISTAKE
• Every office-bearer or other person bound by the rules of the trade union
shall be punishable with the payment of fine, if:- Default is made on the
part of any registered trade union in giving any notice or sending any
statement or other document as required by or under any provision of this
Act; or
Any person willfully makes, or causes to be made, any false entry in, or
any omission from, the general statement or in or from any copy of rules or
of alterations of rules sent to the Registrar; or
Any person who, with intent to deceive, gives to any member of a
registered trade union or to any person intending or applying to become a
member of such trade union any document purporting to be a copy of the
rules of the trade union or of any alterations to the same which he/ she
knows, or has reason to believe, is not a correct copy of such rules or
alterations as are for the time being in force, or any person who, with the
like intent, gives a copy of any rules of an unregistered trade union to any
person on the pretense that such rules are the rules of a registered trade
union.
Protection against legal impunity
• No office-bearer or member of a registered trade union shall be
liable to punishment under the Indian Penal Code in respect of any
agreement made between the members for the purpose of
furthering any such object of the trade union as specified in the Act,
unless the agreement is an agreement to commit an offence.
• Section 18 confers immunity from civil proceedings in certain cases
to a trade union or its office bears or members. In general, a person
is liable in torts for inducing another person to breach his contract
of employment or for interfering with the trade or business of
another. However, a trade union, its officers, and its members are
immune from this liability provided that such an inducement is in
contemplation or furtherance of a trade dispute. Further, the
inducement should be lawful. There is no immunity against
violence, threats, or any other illegal means
FRAUD-Appropriation of TU Funds-
STEALING FROM THE MONEY POT
The account books of a registered trade union and the list of
members thereof shall be open to inspection by an office-bearer
or member of the trade union at such times as may be provided
for in the rules of trade union.

A person shall be disqualified for being chosen as, and for being a
member of, the executive or any other office-bearer or registered
trade union if- (i) he has not attained the age of eighteen years;
(ii) he has been convicted by a court in India of any offence
involving moral turpitude and sentenced to imprisonment, unless
a period of five years has elapsed since his release.
•
Amendments to TU
The Trade Unions Act 1926 has been amended from time to time and the most
important being the Trade Unions (Amendment) Act, 2001. This Act has been
enacted in order to bring more transparency and to provide greater support to
trade unionism in India. Some of the salient features of the Trade Unions
(Amendment) Act, 2001 are:-

• No trade union of workmen shall be registered unless at least 10% or 100,

whichever is less, subject to a minimum of 7 workmen engaged or employed
in the establishment or industry with which it is connected are the members
of such trade union on the date of making of application for registration.

• A registered trade union of workmen shall at all times continue to have not
less than 10% or 100 of the workmen, whichever is less, subject to a
minimum of 7 persons engaged or employed in the establishment or industry
with which it is connected, as its members.
CONTINUED what the legal language
says-
A provision for filing an appeal before the Industrial Tribunal / Labour Court in case
of non-registration or for restoration of registration has been provided.
All office bearers of a registered trade union, except not more than one-third of the
total number of office bearers or five, whichever is less, shall be persons actually
engaged or employed in the establishment or industry with which the trade union is
connected. [You cannot with some outside party and claim to represent workers]
Minimum rate of subscription by members of the trade union is fixed at one rupee
per annum for rural workers, three rupees per annum for workers in other
unorganised sectors and 12 rupees per annum in all other cases.
The employees who have been retired or have been retrenched shall not be
construed as outsiders for the purpose of holding an office in the trade union
concerned.

• Unions are authorised for the maintenance of the civic and

political interests of members unions are authorised to collect
funds.
Characteristics of Indian TU’s
• Outside Leadership
• Multiple Unions
• Rivalry
• Chaotic finances
• Absence of paid office bearers
• Economism
• Heterogeneous labour constituencies.
Part 2
What are Industrial Standing Orders?
• “An industrial worker has the right to know the terms
& conditions under which he is expected to follow”.
• The delineate the terms and conditions under which a
worker can be employed.
Who does it apply?
• Whereas it is expedient to require employers in industrial
establishments to define with sufficient precision the conditions
of employment under them and to make the said conditions
known to workmen employed by them.
• It extends to [the whole of India].
• It applies to every industrial establishment wherein one
hundred or more workmen are employed, or were employed on
any day of the preceding twelve months:
• Provided that the appropriate Government may, after giving not
less than two months’ notice of its intention so to do, by
notification in the Official Gazette, apply the provisions of this
Act to any industrial establishment employing such number of
number of persons less than one hundred as may be specified in
the notification
Who does it not apply to?
• Any industry to which the provisions of Chapter VII of the Bombay
Industrial Relations Act, 1946, apply; or
• any industrial establishment to which the provisions of the Madhya
Pradesh
• Industrial Employment (Standing Orders) Act, 1961 apply :
• Provided that notwithstanding anything contained in the Madhya
Pradesh Industrial Employment (Standing Orders) Act, 1961, the
provisions of this Act shall apply to all industrial establishments
under the control of the Central Government which may have rules
that are either similar or have further specific parameters to
regulate work.
Standing orders are uniform and
enveloping in nature
• That the object of the Act is to have uniform Standing Orders providing
for the matters enumerated in the Schedule to the Act, that it was not
intended that there should be different conditions of service for those who
are employed before and those employed after the Standing Orders came
into force and finally, once the
• Standing Orders come into the force, they bind all those presently in the
employment of the concerned establishment. The Act is applicable to all
workmen employed in any industrial establishment to do any skilled or
unskilled, manual, supervisory, technical, clerical work.
• Even the apprentices are also included.
• But the persons employed mainly in
managerial/administrative/supervisory capacity drawing wages
exceeding Rs.1600 are not covered.
MODEL STANDING ORDERS
• Model standing orders will apply to the establishment during the
interregnum during the period between the date on which the Act
becomes applicable to it and the date on which the certified
standing orders come into operation
• Model standing orders should be followed while framing draft
standing orders
Standing orders pertain to
• Classification of workmen into probationers, badlis, temporary,
casual and apprentices, permanent, and the meaning of each
• Rules for the publication of working time, holidays and pay days,
wage rates, shift working
• Provisions regarding attendance and late coming
• Provisions for leave and various types of leave[earned leave, casual
leave, official leave etc]
Continued
• Provision for payment of wages
Termination of employment
Provision for a certificate on termination of service
DISCIPLINE
• Provision for stoppage of work
• Disciplinary action for misconduct-Model standing orders specify
certain acts as misconduct, theft, fraud, dishonesty in connection
with the employers business or property, willful insubordination or
misconduct. Various forms of punishment like discharge, dismissal
are also specified.
• Liability of a manager
• Provision for exhibition of standing orders.
Who has the stick to beat you?
• Interpretation.- In this Act, unless there is anything
repugnant in the subject or
• Context “appellate authority” means an authority
appointed by the appropriate
• Government by notification in the Official Gazette to
exercise in such area as may be specified in the
notification the functions of an appellate authority
under this Act : Provided that in relation to an appeal
pending before an Industrial Court or other authority
immediately before the commencement of the
Industrial Employment (Standing Orders) Amendment
Act, 1963, that Court or authority shall be deemed to
be the appellate authority:]
continued
• “appropriate Government” means in respect of industrial
establishments under the
• control of the Central Government or a 11[Railway
administration] or in a major Port, mine or oil field, the Central
Government, and in all other in all other cases
• the State Government.
• Additional information-Provided that where question arises as to
whether any industrial establishment is under the control of the
Central industrial establishment is under the control of the
Central Government that Government may, either on a reference
made to it by the employer or the workman or a trade union or
other representative body of the workmen, or on its own motion
and after giving the parties an opportunity of being heard, decide
the question and such decision shall be final and binding on the
parties[cutting the legal language-the central government labour
apparatus decides whether it or its subsidiary PSU has the
authority to govern its worker]
Who is an employer who is a certifying
officer?
• Certifying Officer” means a Labour Commissioner or a
Regional Labour Commissioner, and includes any other
officer appointed by the appropriate
• Government, by notification in the Official Gazette, to
perform all or any of the functions of a Certifying Officer
under this Act:] “employer” means the owner of an
industrial establishment to which this Act for the time
being applies, and includes-in a factory, any person named
under 14[clause (f) of sub-section (1) of Section 7 of the
Factories Act,1948], as manager of the factory; in any
industrial establishment under the control of any
department of an Government in India, the authority
appointed by such Government in their behalf, or where no
authority is so appointed, the head of the department; in
any other industrial establishment, any person responsible
to the owner for the supervision and control of the
industrial establishment;
MAI LAARD who is the court of law
• Certifying Officers and appellate authorities to have powers of Civil
Court.-
• Every Certifying Officer and appellate authority shall have all the
powers of a Civil Court for the purposes of receiving evidence,
administering oaths,, enforcing the attendance of witnesses, and
compelling the discovery and production of documents, and shall be
deemed to be a Civil Court within the meaning of [Sections 345 and
346 of the Code of Criminal Procedure, 1973 (2 of 1974)]
• Clerical or arithmetical mistakes in any order passed by a Certifying
officer or appellate authority, or errors arising therein from any
accidental slip or omission may, at any time, be corrected by that
Officer or authority or the successor in office of such officer or
authority, as the case may be.]
Oral evidence in contradiction- Oral evidence in contradiction of
standing orders not admissible.--No oral evidence having the effect of
adding to or otherwise varying or contradicting standing orders finally
certified under this Act shall be admitted in any Court.
Definition of fundamental terms
• “industrial establishment” means an industrial establishment as
defined in clause (ii) of Section 2 of the
• Payment of Wages Act, 1936, o a factory as defined in clause (m)
of Section 2 of the Factories Act, 1948, or ] a railway as defined
in clause (4) of Section 2 of the Indian Railway Ac 1890, or the
establishment of a person who, for the purpose of fulfilling a
contract wit the owner of any industrial establishment, employs
workmen; “prescribed’ means prescribed by rules made by the
appropriate Governmen under this Act ; “ standing orders” means
rules relating to matters set out in the Schedule: “trade union”
means a trade union for the time being registered under the
Indian
• Trade Union Act, 1926 “wages” and “workman” have the
meanings respectively assigned to them in
• clauses (rr) and (s) of Section 2 of the Industrial Disputes Act,
1947 (14 of 1947)
Submission of draft standing orders
• Submission of draft standing orders.--(1) Within six months from the date
on which this Act becomes applicable to an industrial establishment, the
employer shall submit to the Certifying Officer five copies of the draft
standing orders proposed by hi for adoption in this industrial
establishment Provision shall be made in such draft for every matter set
out in the Schedule which may be applicable to the industrial
establishment, and where Model standing orders have been prescribed
shall be, so far as is practicable, in conformity with such model.
• The draft standing orders submitting under this section shall be
accompanied by a statement giving prescribed particulars of the workmen
employed in the industrial establishment including the name of the trade
union, if any, to which they belong. Subject to such conditions as may be
prescribed, a group of employers in similar industrial establishments may
submit a joint draft of standing orders under this section.
Conditions for certification of STANDING
ORDERS whether you follow the draft
• Conditions for certification of standing orders.--Standing orders
shall be certifiable under this Act if provision is made therein for
every matter set out in the Schedule which is applicable to the
industrial establishment, and the standing orders are otherwise in
conformity with the provisions of this Act and it shall be the
function of the Certifying Officer or appellate authority to
adjudicate upon the fairness or reasonableness of the provisions of
any standing orders.
CERTIFICATION OF STANDING ORDERS
what does the certifying officer do?
• Certification of standing orders.--(1) On receipt of the draft under Section3,
the Certifying Officer shall forward a copy thereof to the trade union, if any,
of the workmen, or where there is no such trade union, if any, of the
workmen or where there is no trade union, to the workmen in such manner
as may be prescribed, together with a notice in the prescribed form requiring
objections, if any, which the workmen may desire to make
• to the draft standing orders to be submitted to him within fifteen days from
the receipt of the notice. After giving the employer and the trade union or
such other representatives of the workmen as may be prescribed an
opportunity of being heard, the Certifying Officer shall decide whether or not
any modification of or addition to the draft submitted by the employer is
necessary to render the draft standing orders certifiable under this Act, and
shall make an order in writing accordingly.#
• The Certifying Officer shall thereupon certify the draft standing orders, after
making any modifications there in which his order under sub-section (2) may
require, and shall within seven days thereafter send copies of the certified
standing orders authenticated in the prescribed manner and of his order
under sub-section (2) to the employer and to the trade union or other
prescribed representatives of the workmen
Mai nahi manta mai nahi janta I resist the
standing orders
• Certification of standing orders.--(1) On receipt of the draft under Section3, the Certifying
Officer shall forward a copy thereof to the trade union, if any, of the workmen, or
where there is no such trade union, if any, of the workmen or where there is no trade union, to
the workmen in such manner as may be prescribed, together with a notice in the prescribed
form requiring objections, if any, which the workmen may desire to make to the draft standing
orders to be submitted to him within fifteen days from the receipt of the notice.
After giving the employer and the trade union or such other representatives of
workmen as may be prescribed an opportunity of being heard, the Certifying
Officer shall decide whether or not any modification of or addition to the draft
submitted by the employer is necessary to render the draft standing orders
certifiable under this Act, and shall make an order in writing accordingly.—Key
point
The Certifying Officer shall thereupon certify the draft standing orders, after
making any modifications there in which his order under sub-section (2) may
require, an shall within seven days thereafter send copies of the certified
standing order authenticated in the prescribed manner and of his order under
sub-section (2) to the employer and to the trade union or other prescribed
representatives of the workmen-POSITIVE OUTPUT
When do SO’s kick in?
• Date of operation of standing orders.--Standing orders shall, unless an appeal is
preferred under Section 6, come into operation on the expiry of thirty days
from the date on which authenticated copies thereof are sent under sub-section
(3) of Section 5, or where an appeal as aforesaid is preferred, on the expiry of
seven days from the date on which copies of the order of the
appellate authority are sent under sub-section (2) of
• Section 6. Register of standing orders. -- A copy of all standing orders as finally
certified under this Act shall be filed by the Certifying Officer in a register in the
prescribed form maintained for the purpose, and the Certifying Officer shall
furnish a copy there of to any person applying there for on payment of the
prescribed fee.
• Posting of standing orders.--The text of the standing orders as finally certified
under this Act shall be prominently posted by the employer in English and in the
language understood by the majority of his workmen on special boards to be
maintained for the purpose at or near the entrance through which the majority of
the workmen enter the industrial establishment and in all departments thereof
where the workmen are employed.
Forms of punishment delineated in the
standing orders
• Suspension pending enquiry with or without pay
• Punitive suspension awarded to workman for misconduct
Prohibiting employee from performing duties and withholding
wages for that period until the charges are proved or disproved
• Discharge-give agreed notice or payment of severance pay-pink slip
• Discharge simpliciter means termination of employees services for
the loss of confidence not necessarily implying any misconduct
• Demotion
• REFER THE MONAPPA TEXT BOOK PLEASE
SO DURATION AND MODIFICAITON
• Duration and modification of standing orders.--Standing orders finally certified
under this Act shall not, except on agreement between the employer and
the workmen or a trade union or other representative body of the workmen] be
liable to modification until the expiry of six months from the date on which the
standing orders or the last modifications thereof came in to operation
• An employer or workman or a trade union or other representative body of the
workmen] may apply to the Certifying Officer to have the standing orders
modified, and such application shall be accompanied by five copies of the
modifications proposed to be made, and where such modifications are proposed
to be made by agreement between the employer and the workmen or a trade
union or other representative body of the workmen], a certified copy of that
agreement shall be filed along with the application.
• Nothing contained in sub-section shall apply to an industrial establishment in
respect of which the appropriate Government is the Government of the State of
Gujarat or the Government of the State of Maharashtra.]
PAYMENT OF SUBSISTENCE ALLOWENCE
• Payment of subsistence allowance.--(1) Where any workman is suspended by the
employer pending investigation or inquiry into complaints or charges of
misconduct against him, the employer shall pay to such workman subsistence
allowance-
• (a) at the rate of fifty per cent of the wages which workman was entitled to
immediately preceding the date of such suspension, for the first ninety days of
suspension; and (b) at the rate of seventy-five per cent of such wages for the
remaining period Or suspension if the delay in the completion of disciplinary
proceedings against such workman is not directly attributable to the conduct of
such workman
• Not with standing anything contained in the foregoing provisions of this section,
where provisions relating to payment of subsistence allowance
under any other law for the time being in force in any State are
more beneficial than the provisions of this section, the provisions
of such other law shall be applicable to the payment of
subsistence allowance in that State.]
 THE WORKER BEING FORCED TO SCRAPE
THE Toilet COMMOUND FOR SHIT

• . If any dispute arises regarding the subsistence allowance payable

to a workman under sub-section the workman or the employer
concerned may refer the dispute to the Labour Court, constituted
under the Industrial Disputes Act, 1947 (14 of 1947), within the local
limits of whose jurisdiction the industrial establishment wherein
such workman is employed is situate and the Labour Court to
which the dispute is so referred shall, after giving the parties an
opportunity of being heard, decide the dispute and such decision
shall be final and binding on the parties.
Exceptions to standing orders

• Nothing in the act shall apply to an industrial establishment in so

far as workmen employed therein are covered by the fundamental
and supplementary rules, civil service rules, IRES that may be
notified by the appellate government in the official gazette.
Factories Act 1948 A QUICK TOUR
• Factory is a premises including the precincts thereof
• Where 10 or more workers ae working or were working on any day of the
preceding 12 months and in any part of which a manufacturing process
is being carried on with the aid of power or is ordinarily so carried on or
wherein 20 or more workers are working or were working on any day of
the preceding 12 months and in any part of which a manufacturing
process is being carried out but does not include a min subject to the
operation of the mines act or a mobile unit belonging to the army or a
railway running room, or eatery.
• All workers in different relays in a day shall be taken into account
Duration of work defined under the act
• An adult worker may be asked to work for 48hrs per week and 9
hours with a minimum spread over of 10/12 hours inclusive or rest
interval which should be at least be for 30 mts for 5 hours of work.
• The State government should or chief inspector of factories may
allow a factory to work a maximum of 6 hrs non-stop work without
an interval of rest and the limit of the spread-over may be extended
to 12 hours by the chief inspector of factories for reasons to be
specified by him in writing.
• Spread over means the time that elapses between the beginning of
an employee’s duty and its conclusion.
The Amendment of the Factories act
• 1987 The act was amended to enlarge its scope. The penalties have
become more stringent. The act now provides not only for the
welfare and the safety of the workers but also for the neighbhours
of the vicinity of the factory.
• The Factory inspectors have been given more powers to enter the
premises to seize any material and prohibit employment of any
person when the work conditions are hazardous.