Human Resource Management By Dr. Debashish Sengupta

Industrial Relations 15 CHAPTER Human Resource Management

Key Terms Trade Unions The Trade Unions Act, 1926 Labour Act The Minimum Wages Act, 1936 Workmen’s Compensation Act, 1923 Employee State Insurance Act, 1948 Human Resource Management

Theoretical Approaches to Industrial Relations “A sound industrial relations system is one in which relationships between management and employees (and their representatives) on one hand, and between them & the state on the other, are more harmonious and cooperative than conflictual and creates economic efficiency and the motivation, productivity and development of their employee and generates employee loyalty and mutual trust” Human Resource Management

Theoretical Approach to Industrial Relations Human Resource Management

Roles of Industrial Relations The Industrial relations has various roles – 1. To develop a theoretical perspective as to what should be ideal relationship between the employer and the employee. 2. To develop an ethical climate that discourages commoditisation and exploitation of human element in the organization. 3. To develop a legal framework that defines the rules and conditions of employment. 4. To minimize industrial conflicts and work towards resolution. 5. To promote growth and industrial harmony. Human Resource Management

Trade Unions Labour Acts Trade Union is an organization formed by employees to protect & promote economic, political & social interest of its members, through collective action and group effort. Labour Acts There are several acts under the Labour Acts in India, which can be grouped under the following headings broadly – Laws related to industrial relations Laws related to wages Laws related to working hours, conditions of services and employment Human Resource Management

The Trade Unions Act, 1926 “An Act to provide for the registration of Trade Unions and in certain respects to define the law relating to registered Trade Unions.” Any combination, whether temporary or permanent, formed primarily 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 or more trade unions. It extends to the whole of India. Human Resource Management

The Minimum Wages Act, 1948 An Act to provide for fixing minimum rates of wages in certain employments. Where as, it is expedient to provide for fixing minimum rates of wages in certain employments. In unorganised sector, where labour is vulnerable to exploitation, due to illiteracy and having no effective bargaining power, minimum rates of wages are fixed/revised both by Central and State Governments in the scheduled employments falling under their respective jurisdictions under the provisions of this act. Human Resource Management

Payment of Wages Act, 1936 Payment of Wages Act is an Act to regulate the payment of wages to certain classes of employed persons. The main provisions of the Payment of Wages Act are: Every employer shall be responsible for the payment to persons employed by him of all wages required to be paid under this Act. It applies in the first instance to the payment of wages to persons employed in any factory, railway, either directly or through a subcontractor. Human Resource Management

Workmen’s Compensation Act, 1923 The Workmen’s Compensation Act, aims to provide workmen and/or their dependents some relief in case of accidents arising out of and in the course of employment and causing either death or disablement of workmen. It provides for payment by certain classes of employers to their workmen compensation for injury by accident. resulting into: (i) Death; (ii) Permanent total disablement; (iii) Permanent partial disablement, or (iv) Temporary disablement, whether total or partial (v) Who has contracted an occupational disease. Human Resource Management

Equal Remuneration Act [Act 25 of 1976 Amended by Act 49 of 1987] The Equal Remuneration Act was enacted to give effect to the provision of Article 39 of the Constitution of India which contains a directive principle of equal pay for equal work for both men and women. The Act provides for the payment of equal remuneration to men and women workers for the same work or work of a similar nature and for the prevention of discrimination on the ground of sex against women in the matter of employment. Human Resource Management

Employee State Insurance Act 1948 “An Act to provide for certain benefits to employees in case of sickness, maternity and employment injury and to make provision for certain other matters in relation thereto.” The Act has been enacted primarily with the object of protecting workers and their dependents, in the organised sector, in contingencies, such as Sickness, Maternity and Death or Disablement due to an employment injury or occupational hazard. Human Resource Management

Payment of Gratuity Act The Payment of Gratuity Act is a social security enactment. It is derived from the word ‘gratuitous’, which means ‘gift’ or ‘present’. However, having being enacted as a social security form, it ceases to retain the concept of a gift but it has to be seen as a social obligation by an employer towards his employee. This act has been discussed in more detail in Chapter 12. Human Resource Management

Employees’ Provident Funds & Misc. Provisions Act, 1952 The Act has been enacted to provide for the institution of Provident Funds, Pension Fund and Deposit Linked Insurance fund for the employees in factories and establishment. It aims at savings of employees and to provide financial support after retirement in the form of Pension. It also provides for pension benefit to the nominee in case of death of member while in service irrespective of length of membership & pension to the member in case of permanent disablement while in service. Human Resource Management

The Industrial Employment (Standing Orders) Act, 1946 The Act is applicable to every industrial establishment in which one hundred or more workmen are employed. The Government can, however, apply the provisions of the Act to any industrial establishment employing less than one hundred persons. Human Resource Management

The Payment of Bonus Act This act to provide for the payment of bonus to persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matters connected therewith. The payment of Bonus in India is determined the payment of bonus act, 1965. The Payment of Bonus Bill having been passed by both the Houses of Parliament received the assent of the President on 25th September, 1965. It came on the Statute Book as The Payment of bonus Act, 1965. Human Resource Management

The Shops and Establishments Act This act was enacted to provide statutory obligation and rights to employees and employers in the unorganized sector of employment, i.e., shops and establishments. It is a state legislation and each state has framed its own rules for the Act. The act is applicable to all persons employed in an establishment with or without wages, except the members of the employer’s family, however the state government can exempt, either permanently or for a specified period, any establishments from all or any provisions of this Act. Human Resource Management

The Maternity Benefit Act, 1961 “An Act to regulate the employment of women in certain establishments for certain periods, before and after child-birth and to provide for maternity benefit and certain other benefits.” The purpose of this act is to provide healthy maintenance of pregnant women employee and her child. The various cash and non-cash benefits that a pregnant lady is liable to receive from her employer. Human Resource Management

The Industrial Disputes Act, 1947 “An Act to make provision for the investigation and settlement of industrial disputes, and for certain other purposes.” The act provides clarity on the following types of disputes that could occur between employer and employee: Settlements and Awards Strikes Lockouts Lay-off Retrenchment Closure Human Resource Management

The Factories Act 1948 ‘An Act to consolidate and amend the law regulating labour in factories. Whereas, it is expedient to consolidate and amend the law regulating labour in factories.’ This act secures safety, health, welfare of the employees, regulates their working hours, ensures their annual leaves with wages, and provides for additional protection from hazardous processes, Human Resource Management

Apprentices Act 1961 ‘An Act to provide for the regulation and control of training of apprentices and for matters connected therewith.’ The Apprentices Act, 1961 was enacted to regulate and control the programme of training of apprentices and for matters connected therewith. The Act makes it obligatory on part of the employers both in public and private sector establishments having requisite training infrastructure as laid down in the act, to engage apprentices in 254 groups of industries covered under the Act. Human Resource Management

Future of Industrial Relations in India The recent spate of labour strikes in India have put a huge question mark on the future of Industrial Relations in this country. The Maruti Strikes was perhaps the most talked about. The spate of labour strikes at the Manesar plant of the auto manufacturer left it with a 60 percent plunge in its quarterly profits There were strikes at Bosch Plant at Bangalore, at Coal India; not so long ago at General Motor’s India Ltd. (GM) Halol plant located in the western Indian state of Gujarat. ‘According to the Indian Labor Bureau, over five million working days were lost in 2010 as a result of strikes and lockouts in the country. Human Resource Management