Unfair Labour Practices

Unfair Labour Practices: 

Meaning

Unfair labour practices refer to actions taken by employers or trade unions that violate the rights of workers or employers, often with the intent to undermine the collective bargaining process or to create an unfair advantage.

The Legal Framework on Unfair Labour Practices: Industrial Disputes Act, 1947

The Industrial Disputes Act, 1947, provides a legal framework for addressing industrial disputes, protecting workers' rights, and promoting fair labour practices. The Fifth Schedule of the Act enumerates unfair labour practices by both employers and workers.

Unfair Labour Practices by Employers

1. Interference with Workers' Rights to Unionise: Employers cannot interfere with, restrain, or coerce workers in their right to organise, form, join, or assist a trade union.

2. Dominating or Supporting a Trade Union: Employers cannot dominate, interfere with, or contribute support to any trade union.

3. Discrimination Based on Union Membership: Employers cannot discriminate against workmen based on their union membership or activities.

4. Unjust Dismissal: Unjust dismissal is one of the most severe forms of unfair labour practice by employers.

5. Abolishing Regular Work: Employers cannot abolish the work of a regular nature being done by workmen and assign it to contractors as a measure of breaking a strike.

6. Malafide Transfers: Transferring workers with malicious intent is an unfair labour practice.

7. Good Conduct Bonds: Insisting upon individual workmen who are on a legal strike to sign a good conduct bond as a precondition to allowing them to resume work is an unfair labour practice.

Unfair Labour Practices by Trade Unions and Workmen

1. Supporting Illegal Strikes: Trade unions are prohibited from advising, supporting, or instigating strikes that are deemed illegal under the Act.

2. Coercion in Union Membership: Trade unions must not coerce workers to join or refrain from joining a union.

3. Refusal to Bargain Collectively: Trade unions are obligated to bargain collectively in good faith.

Mechanisms for Addressing Unfair Labour Practices

1. Collective Bargaining: Collective bargaining is the process by which workers, through their trade unions, negotiate with employers on matters such as wages, working conditions, and other terms of employment.

2. Conciliation: Conciliation is an alternative dispute resolution mechanism where a neutral third party assists the disputing parties in reaching an amicable settlement.

3. Voluntary Arbitration: Voluntary arbitration is another alternative dispute resolution mechanism where the parties in dispute agree to submit their conflict to an arbitrator, whose decision is binding.

4. Adjudication: Adjudication involves referring disputes to statutory bodies such as Labour Courts, Industrial Tribunals, or National Tribunals for adjudication.

State Legislation on Unfair Labour Practices

Several states in India have enacted their own legislation to address unfair labour practices and manage industrial relations, such as the Bombay Industrial Relations Act, 1946, and the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971.

Landmark Judgments on Unfair Labour Practices

Several landmark judgments have shaped the interpretation and enforcement of laws related to unfair labour practices in India, including S.G. Chemical and Dyes Trading Employees' Union v. S.G. Chemicals and Dyes Trading Limited and Another, 1986, and Regional Manager, SBI v. Mahatma Mishra, 2006.

- S.G. Chemical and Dyes Trading Employees’ Union v. S.G. Chemicals and Dyes Trading Limited and Another (1986): The company closed its office without paying employees their due wages, leading to a complaint by the trade union. The Labour Court ruled the closure illegal and deemed the termination of services as an unfair labor practice, ordering compensation and reinstatement for affected workers.

- Regional Manager, SBI v. Mahatma Mishra (2006): An employee was terminated without proper notice, and the Labour Court ruled this as an unfair labor practice, stating that the management had engaged in unfair labor practices by not providing due process.

- Eveready Flash Light Company v. Labour Court Bareilly (1958): A worker was terminated after being put on probation despite having been tried and tested for his role. The Labour Court found this to be an unfair labor practice, as the probationary period was used to delay granting permanent status.

- Hind Construction and Engineering Co. Ltd. v. Their Workmen (1965): The Supreme Court ruled that dismissing workers for a single day of absence was unjustifiably severe and amounted to victimization, establishing that disproportionate punishment can constitute an unfair labor practice.

- Gangadhar Pillai v. Siemens Ltd. (2007): The Supreme Court held that intermittent engagement as a casual worker didn't automatically grant permanent status and the burden of proving unfair labor practices was on the workman. This case clarified the interpretation of unfair labor practices in prolonged temporary employment .

Conclusion

Unfair labour practices pose a significant challenge to maintaining fair and equitable labour relations. The Industrial Disputes Act, 1947, and its Fifth Schedule provide a comprehensive legal framework for identifying and addressing these practices 

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Promotion policies in Human Resource Management (HRM)

 Promotion policies in Human Resource Management (HRM):

1. Promotion Based on Merit

👉 Meaning:
Promotion is given to the employee who performs the best, works hard, and shows good results, regardless of how long they’ve been working.

✅ Advantages:

1. Encourages hard work – Employees try to improve their performance.
2. Promotes talented people – The best worker gets promoted.
3. Improves company performance – Skilled people help the company grow.
4. Motivates employees – People try to learn new things and do better.

❌ Disadvantages:

1. Can be unfair – Boss may show favoritism.
2. Upsets senior workers – Experienced employees may feel ignored.
3. Less teamwork – People may focus only on their own work.
4. Creates competition – May lead to jealousy and conflict.

2. Promotion Based on Seniority

👉 Meaning:
Promotion is given based on how long an employee has worked in the company, not on how well they perform.

✅ Advantages:

1. Simple and fair – Based only on years of service.
2. Loyalty is rewarded – Old employees feel secure and valued.
3. Less conflict – Reduces favoritism and disputes.
4. Boosts morale – Long-time workers feel respected.

❌ Disadvantages:

1. Talent is ignored – Good performers may be left out.
2. Frustrates young workers – They don’t get a chance to grow fast.
3. Reduces efficiency – Unskilled people may get promoted.
4. No motivation to improve – People may stop learning.

3. Promotion Based on Merit-Cum-Seniority

👉 Meaning:
Promotion is based on both performance and years of service. So, a person must be good at work and also have some experience.

✅ Advantages:

1. Balanced system – Rewards both talent and loyalty.
2. Fair to all – Seniors and juniors both have a chance.
3. Better leadership – Promoted employees have skill and experience.
4. Motivates everyone – Both old and new workers feel hopeful.

❌ Disadvantages:

1. Hard to decide – No clear rule on how much importance to give to merit or seniority.
2. May cause confusion – Employees might not understand the criteria.
3. Need for good system – Requires honest and clear performance reviews.
4. Possible complaints – Some may still feel unfairly treated.

Summary:

Policy Type	Based On	Good For	Not Good For
Merit	Performance & skill	Talented & hard-working staff	Senior but average workers
Seniority	Years of service	Loyal and long-serving staff	Young and skilled workers
Merit-cum-Seniority	Mix of merit and seniority	Balanced promotion for all	May cause confusion if unclear

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Doctrine of Added Peril

 “Doctrine of Added Peril” 

Doctrine of Added Peril – Labour Law Notes

1. Introduction

The Doctrine of Added Peril serves as a legal defense for employers against liability for compensation under laws like:

• Employees' Compensation Act, 1923
• Employees’ State Insurance Act, 1948

It applies when a worker voluntarily undertakes a task outside their scope of duty, exposing themselves to additional and unnecessary risks, thereby excluding the employer from liability.

2. Definition

Added Peril refers to a situation where:

• The employee acts beyond assigned duties.
• The action involves a significantly higher risk than what is inherent in the employment.
• Injury arises not due to employment but due to personal volition.

In such cases, the employer is not liable for the injury caused.

3. Legal Basis

Under Indian labour law:

• Liability exists only when injury arises "out of and in the course of employment".
• If an employee voluntarily creates a new risk or ignores safety rules, the employer may escape liability.

4. Scope and Limitations

• Employers must still maintain a safe workplace and train workers properly.
• But liability ends when the worker:
  • Takes unauthorised action,
  • Engages in reckless behaviour,
  • Performs acts beyond job responsibilities.

5. Case Law Interpretations

Devidayal Ralyaram v. Secretary of State

• Employee injured while retrieving scrap under a machine—not part of duties.
• Held: Employer not liable.

Lancashire and Yorkshire Railway Co. v. Highley

• Employee took shortcut across train tracks—not required by job.
• Held: Personal choice → employer not liable.

Tamil Nadu Civil Supplies Corp. Ltd. v. S. Poomalai

• Court clarified: Injury must arise from employment, not from personal disregard of duties.

R.B. Moondra & Co. v. Mrs. Bhanwari

• Worker used petrol for cleaning—within scope of work.
• Held: Employer liable; doctrine not applicable.

6. Implications

• Protects employers from injuries arising out of unauthorised risk-taking.
• Deters employees from unsafe actions.
• Promotes responsible behaviour at workplaces.

7. Conclusion

The Doctrine of Added Peril creates a just balance between employer liability and employee responsibility. While employees are protected for legitimate workplace injuries, reckless or unauthorized conduct does not attract compensation.

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Difference Between Partial Disablement and Total Disablement

 

Difference Between Partial Disablement and Total Disablement 

 

Difference Between Partial Disablement and Total Disablement 

Aspect	Partial Disablement	Total Disablement
Definition	Reduction in earning capacity due to a work-related injury or illness that does not completely incapacitate the worker.	Complete loss of earning capacity due to a work-related injury or illness.
Types	– Permanent Partial Disablement	– Permanent Total Disablement
	– Temporary Partial Disablement	– Temporary Total Disablement
Nature	Worker can still perform some duties.	Worker is unable to perform any work duties.
Compensation Calculation	Based on the percentage of loss of earning capacity.	Based on a fixed percentage of the worker’s monthly wages.
	– Permanent Partial Disablement: Percentage of total disablement compensation, proportionate to the degree of disability.	– Permanent Total Disablement: Lump sum amount, typically 60% of the worker’s monthly wages, subject to a maximum limit.
	– Temporary Partial Disablement: Percentage of the worker’s wages during the period of disablement.	– Temporary Total Disablement: Percentage of the worker’s wages during the period of disablement.
Examples	– Permanent Partial Disablement: Loss of a limb, partial loss of vision.	– Permanent Total Disablement: Complete paralysis, total loss of eyesight.
	– Temporary Partial Disablement: Temporary limitation in performing certain duties.	– Temporary Total Disablement: Completely bedridden for a period due to severe injury.
Legal and Practical Implications	Requires detailed medical evaluation to determine the percentage of disability.	Usually more straightforward; involves substantial compensation amounts.
	Disputes regarding extent of disability and compensation amount can arise.	Prioritised for faster resolution due to severe nature of disability.
Claims Process	File a claim with the employer, including details of the injury and disablement.	Similar claims process, but often involves larger sums and potentially more significant disputes.
	Disputes can be referred to the Workmen’s Compensation Commissioner.	Employers must submit a report to the Workmen’s Compensation Commissioner.
Practical Examples	– Permanent Partial Disablement: Worker earning Rs. 20,000/month with 30% disability receives Rs. 3,600/month compensation.	– Permanent Total Disablement: Worker earning Rs. 20,000/month receives 60% of wages as lump sum (e.g., Rs. 12,000/month).
	– Temporary Partial Disablement: Worker with 50% reduction in earning capacity for three months receives Rs. 10,000/month.	– Temporary Total Disablement: Worker with 60% of monthly wages for six months receives Rs. 72,000 in total.
Rights and Responsibilities	Workers have the right to compensation and medical treatment; employers must provide a safe working environment and report accidents.	Same rights and responsibilities, with emphasis on prompt reporting and compensation for severe cases.

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Liability of Employer to Pay Compensation under the Employees’ Compensation Act, 1923

 

 Liability of Employer to Pay Compensation under the Employees’ Compensation Act, 1923

Introduction:

The Employees’ Compensation Act, 1923 (formerly the Workmen's Compensation Act, 1923), is a social welfare legislation aimed at providing financial protection to workers and their dependents in case of accidents arising out of and in the course of employment, resulting in injury or death.

1. Scope and Applicability:

• Objective: To provide compensation to employees/workmen for personal injury, disablement, or death due to accidents during employment.
• Applicability: Applies to certain classes of employers and employees as defined under the Act, particularly in hazardous employments.

2. Employer’s Liability – Section 3:

The cornerstone provision of the Act is Section 3, which deals with the liability of the employer to pay compensation.

Conditions for Liability:

The employer is liable to pay compensation if:

1. Personal injury is caused by accident
2. The accident arises out of and in the course of employment
3. The injury results in either:
   • Death
   • Permanent total disablement
   • Permanent partial disablement
   • Temporary disablement (total or partial)

3. Exceptions to Employer’s Liability (Provisos to Section 3):

No compensation is payable if:

• Injury does not result in disablement for more than 3 days
• Injury is caused by employee under the influence of drugs or alcohol
• Injury is due to willful disobedience of safety rules or removal of safety guard (Section 3(1)(b))

However, even in such cases, if the injury results in death or serious permanent disablement, the employer may still be liable (as per judicial interpretation).

4. Concept of "Accident Arising out of and in the Course of Employment":

Arising Out of Employment:

There must be a causal connection between the employment and the injury.

In the Course of Employment:

The injury must occur during the working hours and at the place of work or while engaged in a duty related to employment.

Case Law: Mackinnon Mackenzie & Co. Pvt. Ltd. v. Ibrahim Mahmmed Issak, AIR 1970 SC 1906
The Supreme Court held that there must be a causal connection between the employment and the accidental injury. Mere presence at the place of employment is not enough; the injury must arise as a result of employment.

5. Doctrine of Added Peril:

If the workman voluntarily does something outside the scope of their duty and is injured, the employer may not be liable.

Case Law:  Saurashtra Salt Manufacturing Co. v. Bai Valu Raja, AIR 1958 SC 881
The Court held that the employer was not liable where the employee took an unreasonable risk that led to the accident.

6. Compensation in Case of Occupational Diseases – Section 3(2):

• The employer is liable if the employee contracts a disease specified in Schedule III, provided the disease is peculiar to that employment.
• This is treated as if injury was caused by an accident arising out of employment.

7. Employer's Liability in Case of Contractors – Section 12:

• If a principal employer engages a contractor and a worker employed by the contractor is injured, the principal employer is still liable to pay compensation as if the worker was directly employed.

 Case Law:  General Manager, G.I.P. Railway v. Shankar, AIR 1937 Nag 215
The Court held the principal employer liable even though the injured worker was employed by a contractor.

8. Compensation in Case of Death or Permanent Disablement – Section 4:

• Death: 50% of monthly wages × relevant factor (as per age) or ₹1,20,000 (whichever is more)
• Permanent total disablement: 60% of monthly wages × relevant factor or ₹1,40,000 (whichever is more)

9. Employer Not to Contract Out Liability – Section 17:

Any contract that tries to remove or reduce the employer's liability under the Act is null and void.

10. Penalty for Default – Section 4A:

• If the employer fails to pay compensation within one month, the Commissioner may:
  • Order payment of interest @ 12% p.a.
  • Impose a penalty up to 50% of the amount due

Conclusion:

The Employees’ Compensation Act, 1923 ensures protection to employees and their families against unforeseen employment-related injuries. The liability of the employer is statutory and arises automatically on fulfillment of the conditions under Section 3. The Act strikes a balance between the rights of employees and the obligations of employers, ensuring prompt and adequate compensation.

Employer’s Liability

Condition	Employer Liable?
Injury in course of employment	Yes
Occupational disease in Schedule III	Yes
Injury due to employee’s negligence	No (with exceptions)
Death due to accident during duty	Yes
Work with added peril (outside duty)	No

Important Case Laws:

1. Mackinnon Mackenzie & Co. v. Ibrahim Mahmmed Issak, AIR 1970 SC 1906
2. Saurashtra Salt Manufacturing Co. v. Bai Valu Raja, AIR 1958 SC 881
3. General Manager, G.I.P. Railway v. Shankar, AIR 1937 Nag 215

🎯 Mnemonic: “CA-DOPPEL”

Think: The employer's duty is to "CA-DOPPEL" the burden of injury!

Letter	Stands For	Explanation
C	Course of Employment	Injury must occur during employment
A	Arising out of Employment	There must be a causal link
D	Disablement or Death	Employer liable for both
O	Occupational Disease (Sec 3(2))	Liability even if no accident, if listed in Schedule III
P	Principal Employer (Sec 12)	Liable for contractor’s workers too
P	Provisions (Sec 3 exceptions)	No liability if injury <3 days, under intoxication, etc.
E	Extent of Compensation (Sec 4)	Depends on wages and nature of injury
L	Late Payment Penalty (Sec 4A)	12% interest + up to 50% penalty for delay

🧠 Memory Tip:

Imagine the employer carrying a "CA-DOPPEL" bag, with all his duties stuffed inside — any mistake, and the bag bursts (i.e., liability explodes).

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Health and Welfare of Workers under the Factories Act, 1948:

 Health and Welfare of Workers under the Factories Act, 1948:

(a) Health of Workers 

Chapter III (Sections 11 to 20) of the Factories Act, 1948 deals with provisions relating to the health of workers. These provisions aim to ensure hygiene and healthy working conditions in factories.

Provisions:

1. Section 11 – Cleanliness:

   • The factory must be kept clean and free from effluvia arising from drains, privies, or other nuisances.
   • Floors, workrooms, and benches must be cleaned regularly.
   • Whitewashing or repainting must be done at intervals prescribed by law.

2. Section 12 – Disposal of Wastes and Effluents:

   • Effective arrangements must be made for disposal of wastes and effluents.
   • The disposal must conform to pollution control norms.

3. Section 13 – Ventilation and Temperature:

   • Proper ventilation must be maintained in the factory.
   • Temperature should be such as to secure reasonable conditions of comfort for the workers.

4. Section 14 – Dust and Fume:

   • Measures must be taken to prevent inhalation and accumulation of dust, fumes, or other impurities.
   • Exhaust appliances must be provided wherever dust or fume is generated.

5. Section 15 – Artificial Humidification:

   • If humidity is artificially increased, it must be done as per prescribed standards.
   • The water used should be clean and free from contamination.

6. Section 16 – Overcrowding:

   • Adequate space must be provided for each worker.
   • Minimum space: 9.9 cubic meters per worker after the Act came into force.

7. Section 17 – Lighting:

   • Proper lighting, natural or artificial, must be provided in all work areas.
   • Glare and shadows must be avoided to protect workers’ eyesight.

8. Section 18 – Drinking Water:

   • Safe and wholesome drinking water must be made available.
   • It must be clearly marked and located within accessible distance.
   • If there are more than 250 workers, the water must be cooled and supplied during hot weather.

9. Section 19 – Latrines and Urinals:

   • Sufficient and separate latrine and urinal facilities must be provided for male and female workers.
   • They must be maintained in a clean and sanitary condition.

10. Section 20 – Spittoons:

• Spittoons must be provided at convenient places and kept clean.
• Workers must use them; violations may attract fines.

(b) Welfare of Workers 

Chapter V (Sections 42 to 50) of the Factories Act, 1948 deals with the welfare of workers, ensuring their physical, moral, and social well-being.

Provisions:

1. Section 42 – Washing Facilities:

   • Adequate and separate washing facilities must be provided for male and female workers.
   • The facilities must be conveniently accessible and kept clean.

2. Section 43 – Facilities for Storing and Drying Clothing:

   • Provision must be made for storing clothes not worn during working hours.
   • Facilities should also be available for drying wet clothes.

3. Section 44 – Facilities for Sitting:

   • Sitting arrangements must be provided for workers who are required to work in a standing position to avoid fatigue.

4. Section 45 – First-Aid Appliances:

   • One first-aid box must be provided for every 150 workers.
   • The box must be under the charge of a responsible person trained in first-aid treatment.
   • If there are more than 500 workers, an ambulance room with prescribed equipment must be maintained.

5. Section 46 – Canteens:

   • Factories employing more than 250 workers must provide and maintain a canteen.
   • The canteen should be run in accordance with prescribed rules.

6. Section 47 – Shelters, Rest Rooms, and Lunch Rooms:

   • In factories with over 150 workers, adequate and suitable rest shelters or lunch rooms must be provided.
   • These must be properly ventilated and kept clean.

7. Section 48 – Creches:

   • Factories with more than 30 women workers must provide a creche for the use of children under the age of six years.
   • It must be adequately staffed and maintained in a hygienic condition.

8. Section 49 – Welfare Officers:

   • Every factory with more than 500 workers must employ qualified welfare officers.
   • Their role includes looking after workers' welfare, grievances, and social security benefits.

9. Section 50 – Power to Make Rules for Welfare:

   • The State Government is empowered to make rules for further welfare measures such as education, recreation, housing, and more.

Conclusion:

The provisions under the Factories Act, 1948 reflect the legislature’s commitment to ensuring that workers are protected from health hazards and provided with necessary welfare facilities. These measures help improve the overall working environment and productivity in industrial establishments.

HEALTH Provisions (Sections 11 to 20)

🎯 Mnemonic: "Clean Dusty Ventilated Rooms Need Just Light, Water, Latrines, and Spittoons"

Breakdown:

Section	Provision	Mnemonic Element
11	Cleanliness	Clean
12	Disposal of Waste	Dusty (dust/waste)
13	Ventilation & Temp.	Ventilated
14	Dust and Fume	Rooms (air quality)
15	Artificial Humidification	Need
16	Overcrowding	Just
17	Lighting	Light
18	Drinking Water	Water
19	Latrines & Urinals	Latrines
20	Spittoons	Spittoons

WELFARE Provisions (Sections 42 to 50)

🎯 Mnemonic: "Wash & Store, Sit & Aid, Eat, Rest, Kids & Officer Welfare"

Breakdown:

Section	Provision	Mnemonic Element
42	Washing Facilities	Wash
43	Storing & Drying Clothes	Store
44	Sitting Arrangements	Sit
45	First-Aid	Aid
46	Canteens	Eat
47	Rest Rooms/Lunch Rooms	Rest
48	Creches for Children	Kids
49	Welfare Officers	Officer
50	Power to Make Rules	Welfare (rules)

💡 Pro Tip:

To remember health = early sections (11–20) and welfare = later sections (42–50), think:

"Healthy first, Welfare later!"

 🔖 Blog by Chandan Sha | For more legal insights, stay tuned to Study on Law Hills.

🔖 About Study on Law Hills

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