INDUSTRIAL RELATIONS – AN OVERVIEW B.Com 5/4/2015 1 santhi naryanan

INDUSTRIAL RELATIONS –AN OVERVIEW

B.Com04/18/23

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Worker’s taking to streets…….????

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ACTION TAKEN BY WORKERS On 19 October workers from Rico Auto

embarked on a strike and were later joined by workers from other companies like Hero Honda, Honda, Suzuki etc.

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Police beating HONDA workers 04/18/23

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Clash between Police and workers04/18/23

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IntroductionAn industry is a social world in miniature. Associations of various persons, workmen, supervisory staff, management and employer in industry create industrial relationships.

This affects the economic, social and political life of the whole community.

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Introduction

Thus, industrial life creates a series of social relationship which regulate the relations and working of not only workmen and management but also of community and industry.

Industrial relations are inherent in an industrial life

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Industrial relations

It refers to the complex human relationships which emerge in work situations

Industrial Relations are a bonding between the employee and employer.

It also adds many other relations which are chain of previous relations.

So the motto of any industry should be sustaining good relationships between the employer and employee.

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Introduction

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Delicate and complex problems of modern industrial society

Managers spend sleepless night in facing the competitions in the industry.

New strategies are continuously devised to face the same.

One of it is to increase productivity Productivity can be improved by good

industrial relations

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Meaning

It is concerned with the relationship between the management and workers and the role of regulatory mechanism in resolving any disputes

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Views on Industrial relations

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Definitions

“The field of industrial relations include the study of workers and their trade unions, management, employers’ association and state institutions concerned with the regulation of employment” – H.A Clegg

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Definitions

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Evolution of IR

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Parties to IR

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Major issues involved in the IR process.

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Features of Industrial relations IR do not emerge in vaccum It has two faces – Co-operation and conflict Industrial relations is a dynamic socio-

economic process. Part of a larger system Involves study of conducive environments IR examines the impact of law on the co

operation between the labour and management

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Importance of IR

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Promotion and development of healthy labour-management relationships

Maintanence of Industrial Peace and avoidance of Industrial strife

Development of industrial democracy Sound IR gets unreserved employee co

operation It prevents industrial disputes

INTRODUCTION TO LABOUR LEGISLATIONS

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Introduction

Labor law arose due to the demands of workers for better conditions, the right to organize, and the simultaneous demands of employers to restrict the powers of workers' many organizations and to keep labor costs low.

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Factors that influenced the labour legislations Early exploitative Industrial society Impact of revolution Growth of trade unionism End of colonial rule Extension of adult franchise Rise of socialist and revolutionary ideas Growth of humanitarian ideas Concept of social welfare and social

justice Establishment of ILO Revolution in science and technology

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Labour Legislation in India

The history of labour legislation in India is naturally interwoven with the history of British colonialism. The industrial/labour legislations enacted by the British were primarily intended to protect the interests of the British employers. Considerations of British political economy were naturally paramount in shaping some of these early laws.

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Contd -

Some of the earliest Acts were: Tea District Emigrant Labour Act 1832 Workmen’s Breach of Contract Act 1859

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Major principles of labour legislations Protection Social justice Regulation Welfare Social security Economic development International obligation

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Protective Legislations

Primary purpose - protect Labour standards and to improve working conditions Factories Act 1948

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Social Security

Primary purpose – To provide workmen social security benefits under certain contingencies of life and work The Workmen’s Compensation Act, 1923 The Employee State Insurance Act, 1948

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Wage related labour legislations Legislations laying down the methods

and manner of wage payment as well as the minimum wages come under this category. Payment of wages Act, 1936

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Regulative legislations

Legislations to regulate the relations between employees and employers and to provide for methods and manners of settling industrial dispute. Such laws also regulate the relationship between the workers and their trade unions Trade Unions Act 1926 Industrial Disputes Act 1947

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PAYMENT OF WAGES ACT 1936

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Purpose

Ensure regularity of payment To avoid withholding wages , delays in

wages Preventing unreasonable deductions out

of wages Provide remedy to workers against

violation of rights

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Applicability

It applies in the first instance to the persons employed in any factory.

to persons employed upon by any railway administration

to persons employed in motor transport service, Air transport service

Any other establishment which the central government or state government need to protect the interest of employed.

Persons getting basic wage up to Rs 6500/-

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Wages

All remuneration due to any worker or employees if the terms of contract of employment are fulfilled.

No wage period shall exceed one month. (1)The wages of every person employed upon or in- (a) any railway, factory or industrial or other

establishment->1000- before the expiry of 7th day of wage period<1000- before the expiry of 10th day of wage periodAll payments of wages shall be made on a working day.

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PERMISSIBLE OR AUTHORIZED DEDUCTIONS

Deduction for Fines Deduction for absence from duty Deduction for recovery of advances Deduction to be made in case of any amt given

to the employee as an advance. Deduction for recovery of loans Deductions for income tax Deduction for provident fund Deduction for payment of insurance

premium.

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Maintenance of registers and records

Every employer shall maintain such registers and records giving

such particulars of persons employed. by him, the work

performed by them, the wages paid to them, the deductions

made from their wages, the receipts given by them and such

other particulars and in such form as may be prescribed.

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Inspectors.

1) An Inspector of Factories appointed under Factories Act, 1948 shall be an Inspector for the purposes of this Act in respect of all factories within the local limits assigned to him.

2) The [State Government] may appoint Inspectors for the purposes of this Act.

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Penalty for offences under the Act. 

Non- payment of wages in time or making

unauthorized deduction or imposing un

reasonable fines is punishable with fine

not less than Rs 200 and not more than

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Contd-

If any person who has been convicted of any offence punishable under this Act is again guilty of an offence involving contravention of the same provision, he shall be punishable on a subsequent conviction with

Imprisonment – 1 months- 6 month Fine 500-3000

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MINIMUM WAGES ACT

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Introduction

The Minimum Wages Act, 1948 was enacted to safeguard the interests of workers, mostly in the unorganized sector by providing for the fixation of minimum wages in certain specified employments.

Under the Act, both the Central Government and the State Governments are the appropriate Governments to fix, revise, review and enforce the payment of minimum wages to workers in respect of 'scheduled employments' under their respective jurisdictions. There are 45 scheduled employments in the Central sphere and as many as 1530 in State sphere.

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Contd.

The Act defines the rate of minimum wages consisting of:

Basic rate of wage

Basic rate with or without cost of living allowances

All inclusive rates

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Objective of the Act

The main objective of the Act is to prevent exploitation of the employees & fix the minimum wages.

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Scope of the Act

The Act empowers the state and the central govt. As the case may be to fix minimum wage in respect of worker in following industries:

Agriculture Construction of building and roads Manufacturing 0ther factories

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Contd.

Different categories: The act permits fixation of different minimum rates of wages for different class of work in the same scheduled employment.

Contents of minimum wages: (1) living wages

(2)fair wages

(3)minimum wages

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Contd.

1. Living wages: produce enough in quantity without sacrifcing quality.

Components:a. Basic necessariesb. Reasonable expenditure on children education c. Insurance cover againest ill health disability oldage d. Saving for the rainy day e. Some margin for self development

2.Fair wage :Equal pay for equal work

3.Minimum wage: for food, shelter and cloths

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Minimum Wages in Uttar Pradesh

Sr .No.Scheduled

EmploymentCategory of

Workers

BasicMinimum

WagesV.D.A.

TotalMinimum

Wages

1 Agriculture Unskilled 100.00 0.00 100.00

2Automobile repairs Workshops

Semi-skilled 114.00 33.85 147.85

Skilled 126.54 37.57 164.11

Unskilled 100.00 29.69 129.69

3

Construction or maintenance of road or in building operation

Semi-skilled 114.00 33.85 147.85

Skilled 126.54 37.57 164.11

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Fixing & revising the minimum rates of wages Appropriate govt. Shall fix the minimum

rates of wages for person employed. Govt. Shall review at internal not

exceeding five years. Minimum rate of wages may be fixed

either by hour, by day, by month.

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EMPLOYEE PROVIDENT FUND ACT

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EMPLOYEES’ PROVIDENT FUNDS & MISC. PROVISIONS ACT. 1952 &THE SCHEME

ELIGIBILITY

ANY PERSON WHO IS EMPLOYED FOR WORK OF AN ESTABLISHMENT OREMPLOYED THROUGH CONTRACTOR IN OR IN CONNECTION WITH THE WORK OF AN ESTABLISHMENT.

APPLICABILITY

• EVERY ESTABLISHMENT WHICH IS A FACTORY ENGAGED IN ANY INDUSTRY SPECIFIED IN SCHEDULE 1 AND IN WHICH 20 OR MORE PERSON ARE EMPLOYED.

• ANY OTHER ESTABLISHMENT EMPLOYING 20 OR MORE PERSONS WHICH CENTRAL GOVERNMENT MAY BY NOTIFICATION, SPECIFY IN THIS BEHALF.

• ANY ESTABLISHMENT EMPLOYING EVEN LESS THAN 20 PERSONS CAN BE COVERED VOLUNATARILY UNDER SECTION 1 (4) OF THE ACT.

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EMPLOYEES’ PROVIDENT FUNDS & MISC. PROVISIONS ACT. 1952 &THE SCHEME

BENEFITS

EMPLOYEES COVERED ENJOY A BENEFIT OF SOCIAL SECURITY IN THE FORM OF AN ATTACHABLE AND UNWITHDRAWABLE (EXCEPT I SEVERLY RESTRICTED CIRCUMSTANCES LIKE BUYING HOUSE, MARRIAGE, EDUCATION etc.). FINANCIAL NEST EGG TO WHICH EMPLOYEES AND EMPLOYERS CONTRIBUTE EQUALLY THROUGHOUT THE COVERED PERSONS EMPLOYMENT.

THIS SUM IS PAYBLE NORMALLY ON RETIREMENT OR DEATH. OTHER BENEFITS INCLUDE EMPLOYEES PENSION SCHEME AND EMPLOYEES DEPOSITE LINKED INSURANCE SCHEME.

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EMPLOYEES’ PROVIDENT FUNDS & MISC. PROVISIONS ACT. 1952 &THE SCHEME

PAYMENT OF CONTRIBUTION

• THE EMPLOYER SHALL PAY THE CONTRIBUTION PAYBLE TO THE EMPLOYEES PROVIDENT FUND, EMPLOYEES DEPOSITE LINKED INSURANCE, AND EMPLOYEES PENSION FUND IN RESPECT OF THE MEMBER OF THE EMPLOYEES PENSION FUND BY HIM DIRECTLY BY OR THROUGH A CONTRACTOR.

• IT SHALL BE THE RESPONSIBILITY OF THE PRINCIPAL EMPLOYER TO PAY THE CONTRIBUTIONS PAYBLE TO THE EPF, EDLI AND EPS BY HIM SELF IN RESPECT OF THE EMPLOYEES DIRECTLY EMPLOYED BY HIM AND ALSO IN RESPECT OF THE EMPLOYEES EMPLOYED BY OR THROUGH A CONTRACTOR.

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EMPLOYEES’ PROVIDENT FUNDS & MISC. PROVISIONS ACT. 1952 &THE SCHEME

PAYMENT OF CONTRIBUTION

EPF EMPLOYERS 12% + EMPLOYEES 3.67% = 15.67 % EPF ADMIN CHARGES 1.10% EPS EMPLOYEES 8.33 % EDLI 0.50 % EDLI ADMIN CHARGES 0.01%

TOTAL = 25.61%

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EMPLOYEES’ PROVIDENT FUNDS & MISC. PROVISIONS ACT. 1952 &THE SCHEME

PENAL PROVISION• LIABLE TO BE ARRESTED WITHOUT WARRANT BEING A COGNISABLE OFFENCE.•DEFAULTS EMPLOYER IN PAYING CONTRIBUTIONS OR INSPECTION-ADMINISTRATIVE CHARGES ATTRACT IMPRISONMENT UPTO 3 YEARS AND FINES UPTO Rs.10,000 (Sec.14). •FOR ANY RETROSPECTIVE APPLICATION, ALL DUES HAVE TO BE PAID BY EMPLOYER WITH DAMAGES UPTO 100% OF ARREARS.

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EMPLOYEES STATE INSURANCE ACT,1948

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Introduction……

The Act is a Landmark in the history of social security in India.

It is an insurance scheme. Employee gets benefits if he is sick

or disabled. These benefits are secured by

financial contributions to the scheme both by employers and employees.

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Object of Scheme :

To introduce social insurance by providing for certain benefits to employees in case of sickness, maternity and employment injury and for certain other matters in relation thereto.

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Applicability of the Act:

The Act extends to whole of India including the State of Jammu & Kashmir.

The Act applies to all factories, other than seasonal factories, run with power and employing 20 or more persons.

Presently, employees whose wages do not exceed Rs.10000 per month are eligible for benefits under the Act.

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Administration of the Scheme: The administration of the ESI

Scheme, has been entrusted to The Employees’ State Insurance Corporation (ESIC), an autonomous body set up by an act of the Central Government.

The ESIC Board consists of representatives of Central & State Governments, employers, employees, medical profession & the Parliament. 04/18/23

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BENEFITS UNDER THE ACT: Sickness Benefit Maternity Benefit Disablement Benefit Dependents’ Benefit Medical Benefit Funeral Expenses

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SICKNESS BENEFIT: It involves periodical payments, to any

insured person in case of his sickness, certified by a duly appointed medical practitioner or by any other person, possessing such qualifications as the corporation may by regulations specify.

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MATERNITY BENEFIT:

It is the periodical payment, to an insured woman,

in case of confinement or mis-carriage or sickness arising out of pregnancy, confinement, pre-mature birth of child or mis-carriage,

being certified to be eligible, by the specified authority.

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DISABLEMENT BENEFIT:

Are periodical payments, to an insured person,

suffering from disablement, as a result of an employment injury sustained as an employee,&,

certified to be eligible for such payments by a specified authority.

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DEPENDANTS’ BENEFIT:

Are periodical payments, to the dependents, of an insured person,

who dies as the result of an employment injury sustained as an employee under this Act,&,

are entitled to compensation under this Act.

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MEDICAL BENEFIT:

An insured person and/or a member of his family, whose condition requires medical treatment and attendance, shall be entitled to receive, medical treatment for and attendance on insured persons, referred to as “Medical Benefit”.

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FUNERAL EXPENSES: In case the insured person dies, the funeral

expenses, shall be payable to the eldest surviving member of the family.

In absence of family, such expenses shall be payable to the person who actually incurs the expenditure on funeral of the deceased insured person.

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General Provisions Regarding Benefits: Benefits not assignable or attachable. Bar of benefits under other enactments. Cash benefits are not commutable. Benefits cannot be combined. Observance of certain conditions on receipt of

sickness or disablement benefit. Employer not to reduce wages. Employee not to be dismissed or punished by

employer during sickness period.

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ADJUDICATION OF DISPUTES & CLAIMS:

Any dispute arising under the provisions of the Act, shall be decided by the Employees’ Insurance Court & not by a Civil Court.(sec.74&75)

EIC, constituted by State Government, by notification in Official Gazette, for specified local areas.

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