This article has been written by Ms. Saina Parveen, a CS Executive level Student from the Institute of Company Secretary of India (ICSI)
INTRODUCTION
The Employer-employee relationship is considered the best partnership in the organization to complete the objective of the organisation. It is the constructive endeavour to promote the satisfaction of the community’s economic needs in the most possible manner. Labour dignity and the vital role of the workers in such a partnership must be recognised. Dealing with labour requires mind full strategy and skills and humanity to handle individual workers.
Industrial relations need to be so developed that the worker’s fitness to understand and responsibility grows which increases the performance of a particular industry. It can be possible by establishing consultative committees which observe workers closely and both employers and employees for the purpose of increasing production, improving quality, reducing costs and eliminating waste.
The worker’s collective bargaining, right of association and organisations as the fundamental basis of the mutual relationship. The worker trade union is not just a matter of tolerance but it should be formed in such a manner that it’s welcomed and helped to function as part parcel of the industrial system.
If any differences between the parties (for example employer-employee) arise they should be resolved within the organisation and with the best eye to the good of the industry and the wellbeing of the community. It can be resolved by impartial investigation and arbitration. Sometimes intervention of the State and imposed settlements become necessary.
The laws of Industrial Relations are:
- The Trade Unions Act,1926
- The Industrial Disputes Act,1947
- The Plantation Labour Act,1951
- The Industrial Employment (Standing Orders) Act,1946
Details of the above-mentioned Acts are as follows:
The Trade Unions Act,1926
The Act deals with the registration of trade unions, their rights, and their liabilities. The registered trade unions get legal and corporate statutes after registering. They carry out their legitimate activities after ensuring protection from civil and criminal prosecution. The Act is applicable not only to workers but to the association of employers which again extends to the whole of India.
As per Section2(h) of the Act, the Trade Union means “any combination, whether temporary or permanent, which is for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two more trade unions”.
According to Section 4, any seven or more persons by subscribing their names to the Trade Union or otherwise complying with the provisions can apply for registration of the Trade Union. The only criteria are that the Trade Union of Workmen shall be registered by at least ten per cent. Or one hundred of the workmen whichever is less, employed or engaged in the organisation or industry and member of the Trade Union.
Provisions contained in the rules of a Trade Union:
A Trade Union before entitled to registered should execute the provisions along with the rules provided in the Act, namely:
- The name of the Trade Union;
- The whole objects for establishing the Trade Union.
- The maintenance of the list of the members and adequate facilities to inspection of the office-bearers of the Trade Union.
- As per Section 22 of the Act specify the rules for the admission of members who shall be the employed in the industry along with separate list for honorary or temporary members.
- The minimum subscription to paid by the members.
- The duration for which the members are elected but the period should not be more than three years.
- The manner in which the Trade Union may be dissolved.
The Industrial Disputes Act,1947
The main objective of this Act was to provide a mechanism to bring peaceful settlement of Industrial disputes between workers and employer, workers to workers, and employer to employer as well.
A proper commission made in this regard to amicably settle the disputes so that the atmosphere in the industry becomes favourable for the worker as well for the industry at large.
Industrial Disputes not only create an unfavourable environment for workers but also creates unnecessary stress on the organisation in the form of strike or lock-outs, lay-off, retrenchment etc.
Different authorities are created to deal and settle the disputes those are:
- Works Committee.
- Conciliation Officers.
- Boards of Conciliation
- Labour Tribunals
- Industrial Tribunals
- National Tribunal
The Plantation Labour Act,1951
The History of the plantation labour Act:
From the earlier stages of the plantation, workers living condition was very unhygienic and no medical facilities were provided to the worker as a result of that workers dies after reaching the tea gardens. The legislative was more focused on employer health rather than the workers and there was no clear labour welfare to deal with the situation.
The District Emigrant Labour Act of 1932 merely deals with the recruitment of Workers, the Act does not contain any regulating welfare arrangements for workers of the plantation. It was totally playing a role in the emigration legislative.
The Royal Commission on Labour, in its report “revealed the need for establishing a sphere for the health and welfare of workers of plantation” which was published in 1931, Basically, it was indicating to setting up of the Labour Investigation Committee by the Central government, in 1946.
The committee suggested the enactment of a separate legislation and the Plantation Labour Act which was passed in 1951. The Committee did point out the wages, housing accommodation, sanitation, medical facilities, drinking water, and creches schooling facilities of the workers of the Plantation. The came into effect in the year 1955 which makes it mandatory for employers to provide all the facilities to the workers of the Plantation.
Statement of the object with reasons:
The Workmen’s Compensation Act, of 1923, applies to estate growing cinchona, coffee, rubber or tea which does not confer any substantial benefits on Plantation labour as accidents on plantations are few. The other Labour Acts like the Payment of Wages Act, of 1936, the Industrial Employment (Standing Orders) Act, of 1946 and the Industrial Disputes Act, of 1947 benefit plantation labour only to a very limited extent. The Investigation Committee in its report observed that the life and employment of plantation labour are different from the other industrial labour, it would be very difficult for the worker to fit into the general framework of the Industrial Labour Legislation without creating serious anomalies and a Plantation Labour Codes for covering all the areas.
The Plantation labour in the first instance applies to Cinchona, Coffee, Rubber or Tea Plantations but the State Government may apply it on other plantations as well. The Act also regulates the working hours of the workers employed in the plantations. The State Government is also empowered to make rules regarding the payment of sickness or maternity benefits to the workers.
Children under 12 years of age are prohibited to work or employment in any plantation.
The Industrial Employment (Standing Orders) Act,1946
‘Standing Orders’ defines the conditions of recruitment, discharge, disciplinary action, holidays, leave, etc., minimising friction between the management and workers in industrial undertakings.
It applies to every industrial establishment wherein 100 or more workmen are employed or were employed on any day during the preceding 12 months.
This Act also deals with the classification of workmen, shifts, payments of wages, leaves, termination etc.
The objectives of the Act are:
- To enforce uniformity in the conditions of services under different employers in different industrial establishments.
- The employer once made the conditions of employment can not change it to the detriment or to the prejudice of their rights and interests.
- The conditions of employment whether express or written is open to the worker to accept it and join the industry.
- For any reason the express written conditions cannot be minimized just to maintain industrial peace and continued productivity.
Industrial Establishment:
It means:
- An industry established under the Payment of Wages Act,1936
- A factory as defined under the Factory Act,1948, or
- A railway as defined under the Indian Railway Act,1890, or
- Any establishment which is established by forming a contract for employed workmen.
Fairness of Standing Orders:
Section 4 of the Act, provides the function of the Certifying Officer or Appellate Authority to consider and adjudicate fairness and reasonableness of the Standing Orders. Standing Order means rules and regulations provided in the Schedule of the Act.
CONCLUSION
Above mention Act clears out the rights which are provided by the employer of any industry or establishment imposed by the Government of India and the State Government. Also, impose a penalty on non-compliance with any Act above mentioned.
Employers and State Government also form an industrial relationship which helps to grow the economy. The growing economy attracts foreign investors and confidence in Indian organisations. Hence, a balanced industrial Relationship is much needed in any circumstances.