THE BOMBAY INDUSTRIAL RELATIONS ACT 1946 The Government of Bombay enacted the Bombay Industrial Disputes Act, 1938, which came into force with effect from 1/6/1939. Subsequently, The Bombay Industrial Relations Act, 1947, was brought on the statute book and was enforced in 1947, replacing The Bombay Industrial Disputes Act, 1938. Shri G.L.Nanda, who was then the Labour Minister for Bombay Province, was the pioneer of this Act. The Act is based on three Gandhian principles, namely, negotiations, conciliations, and a rbitrations. OBJECT OF THE ACT The principle objectives of the Act may be stated as below: 1. to regulate relations between employers and employees and to promote harmonious relations between them, 2. To provide a machinery for settlement settlement of disputes disputes by adjudication or arbitration on considerations of justice, equity and good conscience. 3. To promote promote collective collective bargaining. bargaining. APPLICABILITY 1. The Act extends to to the state of Maharashtra and Gujarat and is applicable only to certain industries like silk, cotton, hosiery, woolen, textile processing, sugar, cooperative banking, generation and supply of electricity and transport (BEST Undertaking). IMPORTANT DEFINATIONS 1. Employees:” Employees” means any person employed to do any skilled or unskilled work for hire or reward in any industries, and includes a person employed by a contractor but does not include a person employed primarily in a managerial, administrative, supervisory or technical capacity drawing basic pay excluding allowances exceeding Rs. 1000 per month. 2. Industry: “Industry” means (a) any business, trade, manufacture or undertaking or calling of employees. (b) any calling, service, employment, handicraft, or, occupation or avocation of employees; e mployees; and includes (i)agriculture and agriculture operations; (ii) any branch of industries or group of industries which the (State) Government may be notification of the Official Gazette declare to be an industry for the purposes of this Act. AUTHORITIES UNDER THE ACT Commissioner of Labour The duty of the Commissioner of Labour is to mediate and settle the disputes under this Act. He is also empowered to settle the standing orders, regulate the relation between the employer and employees with regard to the industries matters.
Registrar, Additional Registrars, and Assistant Registrars of Unions The additional registrar is not subordinate to the registrar. The function of the registrar is to make enquiry as he deems fit and recognize for the purpose of this act any concern in any industry to be an undertaking and any section of an undertaking to be an occupation. Further, he is to maintain registers of union and list of approved unions. He is also empowered to cancel registrations of any union. The Deputy Commissioner of Labour (Admin) Bombay, is notified as Registrar of Trade Unions and Chief Conciliator for the purpose of this Act for the whole of the state of Maharashtra. Chief Conciliator and Conciliators The State Government shall appoint a person to be the Chief Conciliator. It may also appoint one of more Chief Conciliators. A conciliator is a public servant within the meaning of the Indian Penal Code. He has to hold proceedings in the prescribed manner. He has power to call for the inspect documents. The conciliator’s function is to mediate and Endeavour to settle the dispute between the employer and employees. Board of Conciliation The State Government may by notification constitute a Board of Conciliation and when an industrial dispute arises for promoting the settlement of such dispute. The board consists of a Chairman who is an independent person and an even number of members representing the interests of employer and employees. Its powers are wider than those of conciliators. Labour Officer The State Government may by notification in the Official Gazette appoint Labour Officers and Assistant Labour Officers for any local area or areas. The Labour Officer’s duty is to: 1. watch the interest of employees and promote harmonious relations between employer and employees; 2. investigate the grievances of employees and represent to employers such grievances and make recommendations to them in consultation with the employees concerned for their redressal; 3. Report to the State Government the existence of any industrial disputes of which no notice of change has been given together with the names of the parties thereto.
Labour Officer is also entitled to appear in any proceedings under this Act. However, he will not appear in any proceedings in which the employees are represented by a representative union, and if there is an approved union for an industry in local area, then he can only appear only after consultation with the union. Labour Court The labour court has powers to decide disputes regarding: 1. the propriety or legality of an order passed by an employer acting or purporting to act under the standing orders, 2. the application and interpretation of standing orders,
3. Any changes made by an employer or desired by employees in respect or an industrial matter specified in Schedule III (expect item No. 5 thereof) and matters arising out of such change. It can also try offences punishable under this Act. A Lobour Court may refer any question of law arising in any proceeding before it to the Industrial Court for a decision. The State Government may constitute one or more Labour Court and appoint persons having the prescribed qualifications to preside over such courts.
Industrial court: The state government shall constitute a court of industrial arbitration. The industrial court shall consist of 3 or more members one of whom shall be its president. They must not be connected with industrial dispute Every member of the industrial court shall be a person who is or has been a judge of high court or is eligible for being appointed as a judge of such court. The industrial court acts as a court of appeal against the order of the labour court.
Powers of industrial court 1) To review both the findings of fact and law arrived at by labour court. 2) Superintendence over all labour court and can call for returns. 3) It can transfer proceedings from one court to another. 4) It has also to decide disputes regarding any changes desired by any employee or representative union in respect of industrial matters 5)
The law declared by the industrial court is recognised as binding and is to be followed in all proceedings under this act.
Court of enquiry
The state government may constitute the court of enquiry consisting of such number of person as it may think.
Registration of unions Union registration will be
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Any union in which has the whole period of three calendar months a membership of not less than 25% of total number of employed in any industry or local area may apply in prescribed form to the registrar for registration as a representative union for such industry in local areas.
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They are the sole bargaining agents for representing employees in each industry in local areas.
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In any ,local area if no representative union has been registered , a union having a membership of not less than 5% of the total numbers of employees employed in such industry in the said area may apply for registration
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If neither a representative union nor a qualified union has been registered, a union having a membership of not less than 15% of the total number of employees employed may apply for primary unior. Registration can be granted on payment of prescribed fees & after holding necessary inquiry by the registrar. In local area there shall not be more than one representative union in respect of same industry The registrar may not grant registration •
If he is satisfied that the application is not made bonafide in the interest of employees.
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Within six months immediately preceding the date of ap plication or thereafter the union has instigated, assisted the commencement of an illegal strike.
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The registration can be cancelled:
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If the industrial courts directs for the same
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After giving show case notice if the registrar agrees it was registered under mistake.
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If membership of union has fallen below the minimum required for continuous period of three months or more.
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RU has not conducted bonafide in interest of the employees
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Registration is cancelled under the trade union act 1926.
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The union can make an application for registration after a period of three months from the date of cancellation
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Under the act periodical returns are to be submitted to the registrar.
Approved unions: Apart from registration of union as representative union the act recognises another class of union as approved union. The registrar can enter the name on the approved list if the union makes application in that behalf & if its rules provide that: •
Membership subscription shall not be less than 50 paise
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Executive committee shall meet at intervals not less than3months
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All the resolutions passed by executive committee or by the general body of the union shall be recorded in minutes book
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Auditor audits the a/cs at least once in each financial year
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No stoppages which is illegal under this act shall be sanctioned The registrar may not enter the union in the approved list if he is satisfied that it is not being conducted in the bonafide interest of its member, but to their prejudice. If any union after period of 2years has elapsed since the approval union was entered in the approval list applies to the registrar claiming that he is having larger membership in industry or local area than an already approved union for such industry then registrar may after holding enquiry enter its name in the approved list . The aggrieved party may within 30 days from the date of order passed by the registrar appeal against such order to the industrial court
THE RIGHTS OF OFFICERS OF APPROVED UNIONS (a) To collect sums payable by members to the union (b) To put up or cause to be put up a notice-board on the premises of undertakings in which its members are employed & affix notices thereon (c) For prevention or settlement of an industrial dispute
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to hold discussions with the employees concerned who are members of the union (ii) to meet & discuss with an employer for redressing the grievances of its members employed in the undertaking (iii) to inspect, if necessary (d) An approved union is entitled to appear before a Labour Court or Industrial Court for the grant of legal aid at the expense of the State Government.
REPRESENTATION OF DISPUTES (a) Association of employers shall be entitled to represent any employer (b) Only representatives shall be allowed to appear or act in the proceedings The Order of Appearance before the Proceedings should be Representative Union, Qualified Union, Primary Union, The Labour Officer authorized by the employees concerned & 5 Elected representatives of employees respectively. The representative unions are the sole bargaining agents for representing employees in each industry in a local area.
STANDING ORDERS The employer is required to submit for the approval of the Commissioner of Labour within six weeks in the prescribed manner Draft Standing Orders. The views of representative union or elected representatives are considered before • settling standing orders. The Labour Commissioner shall forward a copy of the standing orders to the • Registrar. The Model Standing Orders are applicable until standing orders in respect of an • undertaking come into operation. Any person aggrieved by the decision of the Commissioner of Labour may appeal • to the Industrial Court within 30 days from the date when standing orders come into operation. Any employer or employee can apply to the Commissioner of Labour for change • in the standing orders only after a period of at least one year from the settlement date. •
NOTICE OF CHANGE Employer has to give a notice of change in the prescribed form (form K) to the representative of employees & has to send a copy of notice to the Chief Conciliator, Conciliator, Registrar & Government Labour Officer for any change in respect of industrial matters under section 42(1) Rule 51. He has also to affix a copy of such notice at a conspicuous place. • Then the parties will discuss the change demanded & try to reach settlement • within 7 days. •
If the desired change is in respect of an industrial matter not specified in Schedule I or III then the employee has to give notice in form L to the employer through representative of employees. If the dispute is not settled then it will be referred to the Conciliator & if still the • dispute is not settled then Conciliator will declare that the dispute has ended in a failure & will give certificate to the employer. Then the dispute will be referred to the Industrial Court under Section 73A of the • Act of its Adjudication & Industrial court will make an award in respect of the dispute after haring both the parties. For the change in standing orders or industrial matter specified in Schedule III, • except Item 5 thereof, employee shall make an application to the Labour Court & in respect of Item 5 to the Industrial Court. Before the application to the Labour Court or Industrial Court, employee has to approach the employer with a request for change. If after notice of change is served, an agreement is arrived then a copy of • agreement is to be forwarded to the Chief Conciliator, Registrar & Labour Officer. •
ILLEGAL CHANGE (1) The employer cannot make any change in the standing orders settled as per the provisions of this Act, without following the procedure. (2) The employer cannot make any change in any industrial matter mentioned in Schedule II before giving notice of the change as required and within the period provided, if no agreement is arrived at then before the completion of the conciliation proceedings and during the period of 10 days thereafter, where no settlement is arrived at, before the date on which the award of the arbitrator or Industrial Court or the decision of the wage Board comes into operation. (3) The employer cannot make any change in contravention of the terms of a settlement, effective award, registered agreement or effective order or decision of a Wage Board.
Any change made in contravention of the aforesaid provisions is illegal. Further, failure to carry out the terms of a settlement, award, registered agreement, effective order or decision of a Wage Board, Labour Court or the Industrial Court affecting industrial matters is also deemed to be an illegal change. JOINT COMMITTEES A Joint Committee can be constituted for an undertaking or occupation with the consent of the employer and the registered union for the industry.
The Joint Committee is normally not constituted in respect of an undertaking or occupation where there is no representative union, unless at least 15 per cent of the employees are members of a registered union.
The Joint Committee consists of an equal number of members, one half of which are nominated by the union and the other half appointed by the employer.
A representative of the registered union may attend any meeting of the Joint Committee.
Any member of the committee may move a proposal regarding any change that is affecting relations between the employer and the employees. They try to resolve matters such as cleanliness, hygiene, canteen, welfare, etc. They cannot take decisions on important matters such as alteration of conditions of service by rationalization.
CONCILIATION PROCEEDINGS If after notice of change is given and the proposed change is objected to, the party who gave such notice and desires to effect the change has to send a full statement of the case to the Registrar, the Chief Conciliator and the Conciliator.
After receipt of the statement, the Conciliator has to commence the conciliation proceedings. It is the duty of the Conciliator to endeavor to bring about a settlement of the industrial dispute.
If a settlement is arrived at, then a memorandum of such settlement is to be drawn up and signed by the parties. If no settlement is arrived at, the Conciliator has to close the proceedings before him and send a full report to the Chief Conciliator who in turn forwards the same to the State Government.
The State Government may constitute a Board of Conciliation and may refer any dispute to it for promoting the settlement for the same.
ARBITRATION Any employer and a Representative Union or any other registered union which is a representative of the employees may by written agreement agree to submit any present or future industrial dispute to the arbitration of any person and such agreement is called as submission.
It is also called as arbitration of a Labour Court or Industrial Court. A copy of every such submission is sent to the Registrar.
An arbitrator may refer any question of law arising before him inn any proceeding under this Act to the Industrial Court for its decision.
The arbitrar has to give award on the dispute after hearing the parties.
The award of the arbitrator comes into operation on the date specified or where no such date is specified, then on the date on which it is published.
WAGE BOARDS The State Government may constitute a Wage Board for one or more industries after notification in the Official Gazette.
The wage Board consists of an equal number of persons nominated by the State Government to represent employers and employees and such number of independent persons as the State Government may nominate.
The Chairman of the Wage Board is appointed by the State Government.
If a dispute is referred to Wage Board, no proceedings regarding the same shall be commenced before a Conciliator, Board, Labour Court or Industrial Court.
The wage Board shall submit its decision t the State Government, which shall by order in writing declare the decision to be binding.
The Decision of the wage Board comes into operation o the date specified in the decision and where no date is specified, then on the date on which it is published in the Official Gazette.
Illegal Strikes:
A strike is illegal if: 1. Industrial matter is specified in schedule lll or regulated by any standing order for the time being in force. 2. Without giving notice (sec 42) 3. Employer has not carried out the provisions of any standing orders or has made an illegal change. 4. Where notice of change is given in accordance with the provisions of section 42 and where no agreement in regard to such change is arrived at before the submission of case is received by the conciliator. 5. Where conciliation proceeding in regard to the industrial dispute to which the strike relates has commenced, before the completion of such proceeding and during the period of 10 days thereafter. 6. Where such limitations has been sent under section 52(a) to the conciliator before the receipt of the intimation by the person to whom it is to be given. 7. Where submission relating to such dispute or such type of dispute is registered and before such submission is lawfully revoked. 8. Where an industrial dispute has been referred to arbitration of a labour court or the industrial court before the day on which the arbitration proceedings are
completed or the date on which the award of the Labour Court or the Industrial Court comes into operation. These provisions are not applicable if the union has offered in writing to submit the industrial dispute to arbitration and the employer does not accept the offer or after accepting the offer because of disagreement on the choice of the arbitrator does not agree to submit to the arbitrator without naming an arbitrator and thereafter the dispute has been referred to the arbitration. 9. If the strike has been commenced or continued in contravention of the terms of a registered agreement or a settlement or effective award. 10. Where an industrial matter or industrial dispute is referred to a Wage Board for decisions, before the date on which the decision comes into operation. 11. When there is any contravention of the decision of a Wage Board. 12. Where there is conciliation proceeding in regard to any industrial dispute has been completed, strike relating to such dispute will be illegal if it is commenced at any time after the expiry of two months after the completion of such proceedings. 13. If 14 days clear notice of a strike not falling under conditions no. 1, 7, 8 and 9 was given to the employees and the labour officer, and the strike was not commenced either before the expiry of the period of notice or after 6 weeks from the date of its expiry and the employees who resume work within 48 hours from the time when Labour Court or the Industrial Court declares such strike to be illegal, will not incur any penalty under this act for such strike. Illegal Stoppage:
A stoppage is illegal if: 1. It is commenced with the object of compelling Government or any Public servant to take or abstain from taking any particular course Of action in regard to an industrial matter. 2. Such stoppage is in support of or in sympathy with a strike which is illegal. Illegal lockout: A lockout is illegal if: 1. It relates to any industrial matter specified in schedule ll or regulated by any standing order for the time being in force. 2. Without giving notice (sec 42) 3. Where notice of change is given in accordance with the provisions of section 42 and where no agreement in regard to such change is arrived at before the submission of case is received by the conciliator. 4. Where conciliation proceeding in regard to the industrial dispute to which the lock out relates has commenced, before the completion of such proceeding and during the period of 10 days thereafter. 5. Where such limitations has been sent under section 52(a) to the conciliator before the receipt of the intimation by the concerned person. 6. Where submission relating to such dispute or such type of dispute is registered and before such submission is lawfully revoked.
7. Where an industrial dispute has been referred to arbitration of a labour court or the industrial court before the day on which the arbitration proceedings are completed or the date on which the award of the Labour Court or the Industrial Court comes into operation. These provisions are not applicable if the employer has offered in writing to submit the industrial dispute to arbitration and the union does not accept the offer or after accepting the offer because of disagreement on the choice of the arbitrator does not agree to submit to the arbitrator without naming an arbitrator and thereafter the dispute has been referred to the arbitration. 8. If the lockout has been commenced or continued in contravention of the terms of a registered agreement or a settlement or effective award. 9. Where an industrial matter or industrial dispute is referred to a Wage Board for decisions, before the date on which the decision comes into operation. 10. When there is any contravention of the decision of a Wage Board. 11. Where there is conciliation proceeding in regard to any industrial dispute has been completed, lockout relating to such dispute will be illegal if it is commenced at any time after the expiry of two months after the completion of such proceedings. 12. If 14 days clear notice of a lockout not falling under conditions no. 1, 7, 8 and 9 was given to the employees and the labour officer, and the lockout was not commenced either before the expiry of the period of notice or after 6 weeks from the date of its expiry and the employees who resume work within 48 hours from the time when Labour Court or the Industrial Court declares such lockout to be illegal, will not incur any penalty under this act for such lockout. Illegal Closure:
A closure by the employer is declared to be illegal if it is commenced with the object of compelling the government or any public servant to take or abstain from taking any particular course of action in regard to any industrial matter.
By Pooja Bhavar Snehal Patil Renu Wagh Chetna Sawant Pooja Waghmare
