1. WORKSHOP ON LABOUR LAWS
ANAND GOPALAN
Advocate
T.S.Gopalan & Co.
Advocates & Notaries

2. EMPLOYMENT LAW
COMMON LAW &
STATUTORY LAW

3. Contract of Employment
Invitation
Offer
Acceptance
Terms of Contract
Breach of Contract
Damages

4. CONTRACT Agreement in Restraint of Trade ( Section 27)
“every agreement by which one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void”

5. EMPLOYMENT LAW
SERVICE LAW &
LABOUR LAW

6. EMPLOYMENT LAW SERVICE LAW Government Employee Art 309-13 Central
State
Art

7. LABOUR LAW ENACTMENTS CONCURRENT LIST Private Sector Includes PSU’s
Confers Special Rights
Provides Social Security
Job Security
Industry Specific Enactments
Conditions of Service
Facilities and minimum standards in work area.

8. INDUSTRIAL DISPUTES ACT

9. INDUSTRIAL DISPUTES ACT
An Act to make provision for investigation and settlement of Industrial Disputes

10. DEFINITIONS UNDER THE ID ACT
Appropriate Government.
Industry.
Industrial Dispute.
Workmen.

11. OBJECTS OF LEGISLATION
WELFARE
SOCIAL SECURITY
HEALTH AND
SAFETY

12. Industrial Disputes Act 1947
Act meant to investigate and settle industrial disputes.
Special Enactment governing contract of employment.
Conferring benefits on persons employed in lower cadre.
Protects workmen from hire and fire at will.
Provides for compensation in case of lay off, retrenchment and closure.

13. Industrial Disputes Act 1947
Important Definitions
Industry {2(j)}
Industrial Dispute {2(k)}
Lay off {2(kkk)}
Lock out {2(l)}
Public Utility Service
Retrenchment {2(oo)}
Workmen {2(s)}

14. Industrial Disputes Act 1947
Important Definitions
Industry {2(j)
Industrial Dispute {2(k)}
Lay off {2(kkk)}
Lock out {2(l)}
Public Utility Service
Retrenchment {2(oo)}
Workmen {2(s)}

15. DISPUTE RESOLUTION

16. INDUSTRIAL DISPUTES ACT
SECTION 2(k)
Section 2A
Collective
Union alone can raise a dispute
Must be referred by the Government.
Can be regarding any dispute.
Individual dispute
Only workman can raise dispute
No reference required
Can be only on limited issues.

17. Conciliation Machinery and Adjudication process
Arbitration Tribunal.
Reference by Government.
Labour court and Tribunal.

18. INDUSTRIAL DISPUTES ACT, 1947
Conciliation
Reference
Labour Court/Industrial Tribunal
High Court
Supreme Court
Recovery of money due from an employer.

19. Types of Settlement
Bilateral and Trilateral Settlement
Settlement under Section 18(1) and Section 12(3)

20. Chapter VA
Lay off
Retrenchment

21. Chapter VB
Closure - Under the Act, closure of an industry or establishment means permanent closing down place of employment or part thereof.
In case of an establishment employing not less than 50 workmen, 60 days notice should be given to the Government stating clearly the reasons for the intended closure of the establishment.
The workmen who lose employment due to closure are entitled to compensation of 15 days wages for each completed year of service
When an establishment is closed due to unavoidable circumstances beyond the control of the employer, the maximum compensation would not exceed 3 months average wage of the employee. However financial difficulties, accumulation of stock or expiry of period of lease or license would not amount to unavoidable circumstances

22. Certain provisions under the Industrial Disputes Act.
Change in service conditions (Section 9A).
Prosecution.
Unfair labour practice.
Approvals and permissions

23. ENQUIRY First show cause notice and reply
Summary procedure and punishment.
Enquiry – in terms of natural justice,
Second show cause notice along with findings of Enquiry Officer.
Subsistence Allowance to be paid.
Aid of an outsider.
Briefing on legal aspects
Evidence to be recorded in a fair and proper manner.

24. STANDING ORDERS

25. Industrial Employment Standing Orders Act 1946
Applies in Tamil Nadu to establishments employing 20 or more persons (G.O.Ms.No.2272 , 11th November 1986).
Model Standing Orders has been provided under the Rules.
Certification to be obtained.
Difference between Model and Certified Standing Orders

26. Classification of workmen
Permanent
Probationers
Temporary
Badli
Casual
Seasonal and
Apprentices.

27. MISCONDUCT

28. Misconduct Willful insubordination or disobedience.
Strike, theft, fraud, dishonesty.
Absence without leave.
Breach of Standing Orders.
Engaging in trade within the premises of Industrial establishment.
Drunkenness, riots or disorderly behavior .
Sleeping while on duty.
Distribution of pamphlets
Negligence or carelessness relating in damage to property.
Willful slow going down.
Conviction by Court of law.

29. PUNISHMENT

30. Punishments Wage cut Withhold of increment Demotion
Suspension up to 30 days
Dismissal

31. DISCIPLINARY AUTHORITY AND HIS POWERS

32. Powers of the Disciplinary Authority
The manner in which the power is exercised
Judicial review of the same

33. FACTORIES ACT

34. Requirement to register factories
Hazardous Process
Working hours
Leave with wages
Penalties and Procedures

35. HEALTH, SAFETY AND WELFARE

36. Health, Safety and Welfare
Cleanliness
Ventilation
Drinking water
Over crowd
Lighting.

37. Health, Safety and Welfare
Safety of machinery.
Excessive weight.
Protection of eyes.
Floor, Stairs, safety offices.
Hazardous process

38. Health, Safety and Welfare
Washing facilities,
First Aid appliances.
Canteen
Rest Rooms.

39. TRADE UNION ACT

40. TRADE UNION
Trade union is the spokesman for body of workmen or it is the collective agent representing their voices. Recognition of trade unions is not codified so far in Tamil Nadu thus leaving it to the pleasure of the management. However times are changing and non recognition of the union which commands membership of substantial percentage of workmen is one of the important reasons for industrial unrest in the country.
Trade Union movement in the country date backs to pre independence period. Trade union has strong presence in Industries like the textile, banking, insurance, mines, steel, cement, sugar, etc

41. Is the trade union is a friend or a foe to. the employer
Is the trade union is a friend or a foe to the employer? This is a debatable issue
The trade union can be represented by an outsider rendering advice to the workmen
There can be more than one trade union in an establishment
Verification of membership of a trade union is also a debatable issue namely whether it should be through secret ballot or through check off system
Multinationals putting up industry in India has shown a distinct aversion to formation of trade union in their establishment

42. CONTRACT LABOUR (REGULATION & ABOLITION) ACT

43. 1970 – CLRA Act came into force
Abolition of contract labour in any process, operation or any work in any establishment,
Work is incidental to manufacture;
Work is perennial in nature;
Work is done ordinarily through regular workmen in the said establishment or similar establishment;
Work is sufficient to employ whole time workmen.

44. RESPONSIBILITIES OF PRINCIPAL EMPLOYER TOWARDS CONTRACT LABOUR
To provide canteen if 100 or more contract labour are engaged
To provide rest room fortnight stay for contract labour
To provide clean drinking water
To provide sufficient latrines/urinals

45. RESPONSIBILITIES OF PRINCIPAL EMPLOYER TOWARDS CONTRACT LABOUR
To provide First Aid facility
To ensure payment of due wages
To ensure compliance of ESI Act, EPF Act, Payment of Gratuity Act and any monetary liability under WC Act if establishment is not covered under ESI Act.
Contract workmen’s wages should not be less than the minimum rate of wages fixed for the industry.
If contract labour performing same work performed by the employees of principal employer, wages, hours of work and service condition should be the same.

46. TN PAYMENT OF SUBSISTENCE ALLOWANCE ACT, 1981
Employee placed under suspension entitled to receive payment from employer.
0 to 90 days – 50%
90 to 180 days – 75%
After 180 days – 100%
If enquiry prolonged beyond 90 days for reasons directly attributed to employee, then the employee is entitled to 50%.
Not entitled if employed elsewhere.
Non-recoverable

47. Shops and Establishments Act, 1947
This is a state enactment and each state has its own Act -Tamil Nadu Shops and Establishments Act, 1947
Provides for regulation of conditions of work in shops, commercial establishments, restaurants, theatres and other establishment.
This act does not apply to persons employed in a position of management and to persons whose work involves traveling, canvassers and caretakers.

48. SHOPS State Govt. to fix opening and closing hours.[S.7]
Weekly hrs- not more than 8 hrs in a day and 48 hrs in a week. [S.9]
OT- 10hrs in a day and 54 hrs in a week.
Once in four hours a break of one hour.[S.(9)(2)]
A persons work cannot spread over more than 12 hrs in a day.[S.10]
Weekly holiday. [S.11]
All persons to be allowed one whole day in a week as holiday. [11(2)]

49. SHOPS & ESTABLISHMENTS
State Govt to fix opening and closing hours.[S.13]
Weekly hrs-OT- Spread over-Holiday.[s.14,s.15,s.16]
No child employment– 14 yrs.
14-17 yr old allowed to be employed only betw:6am- 7pm.
Contemplates Enquiry for dismissal.
Dismissal is Appealable.

50. CHILD LABOUR (PROHIBITION AND REGULATION) ACT 1986
Prohibits engagement of children in certain employments.
Regulates conditions of work of children in certain others.
Child- “a person who has not completed his fourteenth year of age”.
Three hours work with one hour break.
Not more than 6 hrs (all inclusive).
8 A.M to 7P.M - No overtime
Can be employed in only one establishment on a given day.

51. EMPLOYEES PROVIDENT FUND AND MISC. PROVISIONS ACT
Provides for institution of Provident Funds, pension fund and deposit-linked insurance fund.
Applies to
Factory engaged in specified industry &
Employing twenty or more persons or
To establishments employing less than 20 or more persons if notified by Central Government.

52. EMPLOYEES’ STATE INSURANCE ACT, 1948
Provides for benefits to employee in case of sickness, maternity and employment injury.
Applicability : Area to be notified and employee’s salary less than Rs.10,000/- p.m.
Applies to all factories / establishments employing more than
-10 persons with the aid of power
-20 persons otherwise.
Once covered always covered.
Contribution of employer and employee
Principal Employer and Immediate Employer are liable to pay.
Benefits : six months – disablement, sickness etc.

53. PAYMENT OF BONUS ACT, 1965
Entitlement : 30 days and less than Rs.3,500/-
Disqualification : Dismissal for fraud, violent behaviour, theft and sabotage.
Minimum : 8.33% , Maximum : 20%
Covered establishment : 20 or more – Must have allocable surplus.
Settlement can provide for higher rate of bonus.

54. Employees’ Compensation Act, 1923
Injury arising out of and in the course of employment.
Compensation for different injuries and death provided including mode of computation.
Compensation to be deposited with the Commissioner.
Compensation based on last drawn wage.
If covered by ESI, WC not applicable.

55. PAYMENT OF GRATUITY ACT, 1975
Eligibility:
-Continuous service not less than five years.
-Superannuation, Retirement, Resignation, Death or Disablement.
Entitled : 15 days’ wages for every completed year of service.
Computation: Monthly wage divided by 26 multiplied by 15. Maximum of Rs.3,50,000/-.
Compulsory Insurance
Nomination
Interest for delayed payment
Forfeit :
-Termination for willful omissions, negligence, destruction of property : to the extent of damage.
-Termination for disorderly conduct, violence or an offence involving moral turpitude whole or part.

56. Payment of Wages Act, 1936
Applies to persons drawing less than Rs.6,500/- p.m.
Wage period – Not exceeding one month
Time of payment – 7 days
Currency or coins
Permissible Deductions
Deductions for
-Fine
-Absence from duty
-Damage or loss
-Professional Tax
-Recovery of Loans
-Trade Union
-Others – written authorisation

57. TN INDUSTRIAL ESTABLISHMENTS (NATIONAL & FESTIVAL HOLIDAYS) ACT, 1958
National Holidays
26th Jan, 1st May, 15th Aug & 2nd Oct
Festival Holidays : 5 days
Notice to work on holidays
Employee working on a holiday is entitled to :
Twice the wages
Wages for such day and can avail substituted holiday.

58. TN LABOUR WELFARE FUND ACT, 1972
Unclaimed accumulations
Fines collected from employees
Fines imposed on employers
Contribution: Yearly
Employee - Rs.10/- ,
Employer – Rs.20/- and
Government – Rs.10/-

59. MATERNITY BENEFIT ACT, 1961
Applies if a woman employee has worked for 80 days in an establishment
Covers pregnancy, miscarriage, tubectomy , medical termination of pregnancy.
Leave with wages – 12 weeks.
One additional month for illness is also allowed.
Nursing breaks
No stressful jobs

60. OTHER ENACTMENTS The Apprentices Act, 1961.
Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959.
Equal Remuneration Act, 1976.
Industrial Employment (Standing Orders) Act, 1946.
Minimum Wages Act, 1948.
Trade Union Act, 1926.
Tamil Nadu Industrial Establishment (Conferment of Permanent Status to Workmen) Act 1981

61. OTHER ENACTMENTS
Beedi and Cigar Workers’ (Conditions of Employment) Act, 1966.
Building and other Construction Workers’ (Regulation of Employment & Conditions of Service) Act, 1996.
Cine Workers and Cinema Theatres Workers’ (Regulation of Employment) Act, 1981.
Motor Transport Workers’ Act, 1961.
Plantation Labour Act, 1951.
Private Security Agencies (Regulation) Act, 2005.
Sales Promotion Employees (Conditions of Service) Act, 1976.
TN Building & Construction Act, 1984.
TN Catering Establishments Act, 1958.
TN Handloom Workers’ Act, 1981.
TN Manual Workers Act 1982
Working Journalist and New Paper Employees Act, 1955.

62. THANK YOU T.S.Gopalan & Co., Advocates & Notaries, Anand Gopalan
Partner
T.S.Gopalan & Co.,
Advocates & Notaries,
No. 2, Lakshmanan Street, T.Nagar,
Chennai –
Mob: –