Session 23

Ambiguous

Doubtful; uncertain; open to more than one
interpretation

The contract was so ambiguous that the
lawyer had to struggle to make a clear case.
The rules of the contest were ambiguous so
there was a lot of argument among
contestants.


Labour Unrest at Maruti Suzuki Ltd.


1.35 pm to 4.40 pm
Presentations should be approx 4 to 5
minutes
No powerpoint
Clear explanation of findings and learnings
needs to be presented
Intention to protect workmen with regard to
conditions of employment
Define with precision the conditions of
employment of workers
Make the conditions known to the
workmen
Certified Standing Orders framed in
accordance with the Act have the source of
law like any other Statutory instrument
Situation prior to the Act
Individual contracts of employment express or
implied
Conditions riddled with doubt and ambiguity
Workers were confused about what was
expected of them and what procedures were to
be followed
Management arbitrarily changed terms and
conditions
Workers took undue advantage of the ambiguity
Led to strained relationships
Obligatory for all establishments covered
under the Act to define precisely the
conditions of employment which will govern
relations between employer and employee
Make the conditions known to the workmen
Uniformity of terms of employment in respect
of all employees belonging to the same
category and discharging the same or similar
functions
Maintain proper discipline, harmonious
working conditions
Provide for redressal of grievances
Specify duties and responsibilities of
employer and employees
Provide statutory sanctity and importance to
the Standing Orders
Certification to avoid disputes
Central Act; applies to the whole of India
Every industrial establishment where >100
workmen are employed or
Where > 100 workmen are employed on any
day in the preceding 12 months and
Establishment of a contractor who employs
workmen to fulfil his contract with an
industrial establishment

Meanings
Industrial Establishment as defined in
Payment of Wages Act 1936
Factory as defined in Factories Act, 1948
Workman as defined in Industrial Disputes Act
1947
Appellate

Having the power to hear court appeals and
review court decisions

Unhappy with the verdict, the Union decides
to approach the Appellate authority
Excluded Establishments
Workmen employed by industries covered
under:
Fundamental and Supplementary Rules
Civil Service Classification, Control and Appeal
Rules
Civil Services Temporary Service Rules
Civilians in Defence Service Rules
Revised Leave Rules
Railway Establishment Code
Industry to which the provisions of Chapter
VII of Bombay Industrial Relations Act 1946
apply
Industrial establishment to which provisions
of MP Industrial Employment Standing Orders
Act 1961 apply

Appropriate government may extend the
rules to apply to establishments with <100
workers by giving 2 months notice
Sec 2: Definitions
Sec 3: Drafting of SO
Sec 4: SO Certification
Sec 5: Procedure for SO certification
Sec 6: Appeal against decision of certifying
officer
Sec 7: Date from which SO are binding
Sec 8: Maintenance of register of all SO which
are certified

Sec 9: Details on notice board and languages
to be used
Sec 10: duration of SO and modification
Sec 11: Certifying officers and appellate
authorities
Sec 12: No oral evidences to be admitted
Sec 13: Penalties and procedures
Sec 14: Acts for which employer may take
disciplinary action
Sec 15: power to appropriate Government
Employer: owner of an establishment
Includes: manager of the factory
Any person responsible for supervision and
control of the establishment
Head of the department where no authority is
appointed in any establishment
Standing Orders:
Rules relating to matters set out in Schedule
to the Act [ Sec 2 ( g) ]

Certifying Officer: Labour Commissioner,
Regional Labour Commissioner, any other
officer appointed by the appropriate
government
Wages: as per the definition in the ID Act:
All remuneration capable of being expressed
in terms of money, express or implied,
including:
Allowances, incl dearness allowance
Value of house accommodation, supply of
light, water, medical ,concessional supply of
foodgrain or any other article
Travelling concession
Bonus
Contribution paid or payable by employer to
provident fund, or any other fund
Gratuity payable on end of service
Commission on sales
Provisions of the Act
1. Submission of Draft Standing Orders by
Employer (Sec 3) i.e. rules which are
proposed to be adopted for workmen.
Classification of employees: permanent,
probationer, temporary, apprentice, casual,
badli
Workmens ticket and register
Manner of notification to employees of
periods and hours of work, holidays, pay
days, wage rates
Shift working
Attendance and late coming
Conditions of procedure in applying for leave
and the authority which may grant leave and
holidays
Requirement to enter premises by certain
gates, liability to search
Closing and reopening of sections of the
establishment / entire establishment and
temporary stoppages of work and rights and
liabilities of employees arising therefrom
Termination of employment and notice to be
given by the employer to the employee
Suspension or dismissal for misconduct and acts
or omissions which constitute misconduct
Means of redress for employees against unfair
treatment or wrongful exaction on the part of the
employer or his agent
Any other matter found fit to be included

Draft must be in conformity with Model
Standing Orders; need not use the same
words
Must be in conformity with any other law
applicable to the establishment
Must be attached with details of workmen
employed: number, designations, total
number in each designation, name to Union
to which they belong
Draft SO must be submitted within 6 months
of commencement of business to the
certifying officer
Joint draft standing order can be submitted
in case of more than one establishment of
similar nature
Provision for ever matter set out in the
Schedule which is applicable in the
establishment
SO in conformity with provisions of the Act
Fair and reasonable
The certifying officer can refuse to certify the
Draft SO if he finds that they are not fair
Certifying Officer receives the draft SO
Sends a copy to the Union/workmen, inviting
objections, within 15 days
Both parties are given reasonable
opportunity to be heard
Certifying Officer can adjudicate on the
fairness of the SO
Can certify with or without modifications
Once officially certified, the SO are binding on
the employer and employees
Govt sanction has to be obtained before an
employer can be punished for violation of SO
Labour Courts may nullify actions taken in
violation of SO by employers
SO serve as guidelines for Labour Courts and
Tribunals in settlement of disputes
To the Appellate Authority appointed by the
government by a notification in the Official
Gazette
Power of the Appellate Authority: Can confirm
or amend the certified SO; cannot set aside
The decision of the Appellate Authority is final
and cannot be challenged in a Civil Court
Appellate Authority has to send copies of his
order to the employer, Unions within 7 days
unless there is no change in the certified SO

Come into force 30 days from the date on
which copies are sent
In case of appeal, 7 days from the date on
which copies of the appellate order are sent
Employer and employees cannot get into an
agreement which goes against the SO
Copy of the Certified SO can be obtained from
the Certifying Officer
It is a statutory obligation for the employer to
display a copy of the Certified SO in English
and the language known to the majority of the
workers near an entrance that is widely used to
enter the establishment
Cannot be modified without prior agreement
of Union and employer; six months need to
elapse from the last modification
Party wanting the modification has to apply to
certifying officer
Regional Labour Commissioner, Labour
Commissioner or other officer appointed by
the appropriate Govt. by a notification in the
official gazette
Certifying officer and appellate authority have
the powers of a civil court for receiving
evidence, compelling the discovery and
production of documents
Prescribed by the appropriate govt will be
applicable till the establishments SO get
certified
Fines are payable for:
not submitting draft SO
Contravening the certified SO
No prosecution is permissible without the
sanction of the govt.

In case of a dispute, either side may
approach a Labour Court
Right to move the labour court is granted to
workmen and not to Unions
Dismissed or discharged workman does not
fall under purview of act as workman, hence
he cannot appeal under this Act
Machinery for Implementation
Certifying Officer
Appellate Authority

Regional Labour Commissioner
Chief Labour Officer is the Appellate Authority
for the Central sphere
Appellate authority in the State is the Industrial
Court or any authority appointed by the
government
Chapter 19, Mamoria