Assignment 3

Business Law
Assignment No: III
12/20/2012
Submitted By: Saad Hasan Niazi
Submitted To: Syed Qamar Abbas Zaidi

1 Assignment No III | Saad hasan Niazi
Q1). Describe the provision in the factories act 1934 about weekly holidays, annual
holiday, and festival holiday?
Answer:
Weekly Holiday:
Section 52 provides that adult workers shall have a holiday on the first day of the
week. But the manager of the factory may fix the holiday on any other day which is with
three days before or after the first day of the week in case of such substitution; notice must be
given to the Inspector of Factories a displayed in the factory. No substitution can be made
which will result in any worker working for more than ten days consecutively without a
holiday for a whole day. The State Government may make rules providing for exemption
from the above section in certain cases, e.g., for urgent repairs.
Annual Holiday:
Sections 78 to 84 provide for the grant of a certain period of leave with wages to
workmen.
Every worker who has worked for a period of 240 days or more in a factory during a calendar
year shall be allowed during the subsequent calendar year, leave with wages for a number of
days calculated at the rate of
(i) If an adult, one day for every twenty days of work performed by him during
the previous calendar year,
(ii) If a child, one day for every fifteen days of work performed by him during
the previous calendar year.
Festival Holiday:
Every worker shall be allowed holidays with pay and on all days decided by the
Provincial Government to be festival holidays. A worker may be required to work on any
festival holiday but one day’s additional compensatory holiday with full day and a substitute
holiday shall be allowed to him in accordance with the provisions of Sec.35 (Sec. 49 (1))
Q2). What are the provision in the factories act, 1934 about daily working hours, weekly
working hours, weekly holiday and overtime pay?
Answer:
Daily working Hours:
In a factory one worker may be required to work for not more than 9 hours a day. In a
seasonal factory a male adult worker may work for ten hours.
Weekly Working Hours:
A worker shall not be allowed to work for more than 48 hours in a week and for
seasonal factory 50 hours in a week shall be allowed to work for male adult worker if for

technical reasons a work continues throughout the day a worker may be allowed to work for
56 hours in a week. (Sec 34)
Weekly holiday and overtime pay:
Every employee in a factory, except those employed in clerical or executive capacity,
is eligible for the overtime pay. If you work for more than 8 hours in a day or more than 48
hours in a week (while working in a non-seasonal factory), you are eligible for this
extra/overtime pay. If you are working in a seasonal factory, you can't be eligible for
overtime rate of pay unless you work for more than 50 hours in a week. The rate of overtime
pay is double the ordinary rate of pay. You are under obligation to work overtime whenever
(so, it is not voluntary) the employer requires you to do so. However, in case you can't
perform overtime work you are supposed to offer sufficient causes/reasons regarding your
inability to do so.
The same rules are applicable if you are employed under Mines Act or Newspaper
Employees Act or Road Transport Workers Ordinance. However, if you are employed under
Railways Act, and in case of exceptional pressure of work you will be paid overtime not
lower than one and a quarter time (1.25) your ordinary rate of pay.

Q3). Define and differentiate strike and lock-out. When do they become illegal
according to IRO, 2002?
Answer:
Strike:
It is a collective labor decision to refuse to work and discourage others from replacing
workers who refuse to work. Production is impeded. Owner’s earnings are adversely affected
by diminished production.
Lockout:
It is production halt by owner of plant or factory to adversely affect earning
opportunity of labor. The objective is to influence labor by inflicting economic hardship upon
laborers who depend upon factory wages for subsistence and survival.
Strike Lock-out
 A strike is based on the workers
refusing to work in an effort to
accomplish financial and personal
gains from their employers.
 A strike means the players choose to
not play.
 Example:
Employees who are unhappy say "We
refuse to work until you (management)
give us what we want."
 A lockout is basically the other way
around. The employers refuse the
workers the opportunity to work in an
effort to force financial redirection
and compliance.
 A lockout is cause of the owners.
 Example:
Management is unhappy, and says "We're
closing down the business and won't re-
open until you (employees) give us what
we want."
A strike or lockout is declared illegal if it is commenced without giving notice of
conciliation to the other party of the dispute, or if it is commenced or continued in a manner
other than that provided by the IRO 2002 or in contravention with this text.
In case of an illegal strike or lockout, an Officer from the Labor Department may
make a report to the Labor Court, and require the employer or CBA or the registered trade
union concerned, to appear before the Court. The Court may, within 10 days, order the strike
or lockout to be stopped.
In case of contravention of the order of the Court by the employer, and if the Court is
satisfied that the pursuance of the lock-out is causing serious hardship to the community or is
prejudicial to the national interest, it may order the attachment of the factory and the
appointment of an official receiver, who will exercise the powers of management and may do
all such acts as are necessary for conducting business.

In case of contravention of the order of the Court by the workers, the Labor Court
may pass orders of dismissal against the striking workers, or cancel the registration of the
trade union that committed such contravention.
Q4). Enlist unfair labor practice on the part of an employer and workmen.
Answer:
An unfair labor practice means any unfair act or commission that arises between an
employer and an employee, involving:
• The unfair conduct of the employer relating to the promotion, demotion or training of an
employee or relating to the provision of benefits to an employee,
• The unfair suspension of an employee or any other disciplinary action short of dismissal in
respect of an employee,
• The failure or refusal of an employer to reinstate or re-employ a former employee in terms
of any agreement,
• An occupational detriment, other than dismissal, in contravention of the Protected
Disclosures Act, 2000, on account of an employee having made a protected disclosure as
defined in that Act.
 Unfair Sanction or Disciplinary Action.
 Refusal by an employer to reinstate former employee in terms of any agreement.
 Unfair treatment creating an occupational detriment for an employee who made a
protected disclosure.
 Dispute about unfair treatment.
Q5). Define Collective Bargaining Agent. What are the Rights and duties according to
the Industrial Relations Ordinance, 2002?
Answer:
Collective bargaining is a process of negotiations between employers and a group of
employees aimed at reaching agreements that regulate working conditions. The interests of
the employees are commonly presented by representatives of a trade union to which the
employees belong. The collective agreements reached by these negotiations usually set out
wage scales, working hours, training, health and Collective bargaining is important because it
promotes the rights and ideals of labor.

Rights and duties according to industrial relations ordinance 2002:
1. Rights of Strike:
Under rules bargaining agent can declare the strike or may issue the notice of strike.
2. Workmen Representative:
It is the right of the collective bargaining agent to nominate the representative of workmen on
the workers participation fund, or on the Board of Trustee or provident fund.
3. Represent the Proceeding:
In any proceeding regarding the workmen, a collective bargaining agent can represent all or
any of the workers.
4. Auditors Appointment:
To audit the accounts of the company from workers point of view the collective bargaining
agent may appoint the auditor.
5. Shop Steward Nomination:
To provide link between management and workers, the collective bargaining agent may
nominate the shop steward.
6. Right of Collective Bargaining:
It is the right of collective bargaining agent to undertake the collective bargaining with the
employer with respect to the matters connected with the employment.
Q6). Who can apply for the registration of a trade union? Enumerate at least six
provisions which the constitution of a trade union must contain?
Answer:
General Constitutional Framework:
A permanent Constitution of Pakistan became effective as of 14 August 1973. The
Constitution, as amended up to December 2003, provides for a federal democratic State,
based on Islamic principles of social justice, though Pakistan has often alternated between
civilian rule and extended periods of military rule.
Executive power:
Executive power is vested in the President, who is also the Head of State. The
President is elected by an electoral college composed of the members of both Houses, and the
members of Provincial Assemblies. Pursuant to Article 41 of the Constitution, the validity of
the election of the President shall not be called in question by or before any court or other
authority. The President holds office for a term of five years, renewable once.
The President acts upon advice of the Cabinet or the Prime Minister, but may require
them to reconsider such advice, before acting in accordance with it. The President acts in his
or her discretion upon matters entitled to him or her by the Constitution. The validity of such

acts may not be called into question on any grounds whatsoever Article 48(2) of the
Constitution).
The President has the power to dissolve the National Assembly, on the advice of the
Prime Minister (Article 58 of the Constitution), or in his or her own discretion, under certain
circumstances.
The President is advised in his or her functions by a Cabinet, with a Prime Minister at
its head, appointed in the president’s discretion among the members of the National
Assembly (Article 91). The Prime Minister must obtain the confidence of the National
Assembly. The Cabinet is responsible to the National Assembly, which may pass a vote of no
confidence.
Legislative power:
The Majlis-e-Shoora (Parliament) of Pakistan consists of two Houses i.e., the Senate
(Upper House) and the National Assembly (Lower House). The Senate is a permanent
legislative body and is comprised of 100 members, of which members of the four Provincial
Assemblies, Federally Administered Tribal Areas and Federal Capital form its electoral
college. The term of the Senators is 6 years. The Constitution provides for the number of
women to be elected in the different bodies. The Senate may not be dissolved. The National
Assembly has a total membership of 342 elected through adult suffrage, of which 60 seats are
reserved for women, and 10 seats are reserved for non-Muslims. The seats of the National
Assembly are allocated to each Province, the Federally Administered Tribal Areas and the
Federal Capital on the basis of their population in accordance with the last officially
published census.
The Federal Legislative List, which identifies the subjects within the sole legislative
purview of Parliament, is divided into two parts. Legislation on items in the first part, which
includes national defense, nationality and citizenship, foreign affairs, civil service and a wide
range of other items, must be introduced in the National Assembly. If passed by the National
Assembly, the bill is then forwarded to the Senate for consideration. Within a period of
ninety days, the Senate may either pass the bill with or without amendment, or reject it
entirely. If the Senate should fail to take any action on the bill within the prescribed period of
time, the bill is deemed to have been passed without amendment. It then moves on to the
President for assent and for publication as an act of Parliament. An amended or rejected bill
must be reconsidered by the National Assembly and, if it is again passed by that body, with
or without amendment, the bill is forwarded to the President for his or her assent.
All other proposed legislation, bills relating to items in the second part of the Federal
Legislative List or in the Concurrent Legislative List may be introduced in either house. The
Concurrent Legislative List found in Article 70(4) of the Constitution, includes provisions for
the welfare of labor: conditions of labor, employer's liability, workers’ compensation and
health insurance; trade unions, industrial and labor disputes; establishment of and carrying on
of labor exchanges, employment information bureaus and training establishments; regulation
of labor and safety in mines, factories and oil- fields; and unemployment insurance. Bills
originating from the second part of the Federal Legislative List or the Concurrent List are
sent to the President for his or her signature. If within seven days, he or she fails to do so, the
bill automatically becomes an act of Parliament.
The Islamic Republic with its federal capital at Islamabad is comprised of four
provinces: Punjab, Sindh, North West Frontier and Baluchistan, in addition to the Federally

Administered Tribal Areas. All residual powers fall to the Provincial Governments, although
the Majlis-e-Shoora retains exclusive power to legislate for those areas in the Islamic
Republic of Pakistan, which are not delegated to any Province. In particular, responsibility
for education, labour, health, industry, social welfare, agriculture, and roads is largely
entrusted to the Provinces, even though the formulation of general principles in some of these
matters is expressed in the Concurrent Legislative List.
Judiciary:
Pursuant to Article 175 of the Constitution, there is a Supreme Court of Pakistan, a
High Court for each Province, and other courts established by law. The Judiciary shall be
separated progressively from the Executive within 14 years running from December 2003.
The Supreme Court is the highest court of justice in the country and maintains a
permanent seat in Islamabad. It consists of a Chief Justice known as Chief Justice of Pakistan
and such number of other judges as may be determined by Parliament. At present, in addition
to the Chief Justice, there are twelve Judges in the Supreme Court. The Supreme Court
(Number of Judges) Act, 1997 provides for a number of 16 judges in addition to the Chief
Justice. The Chief Justice of Pakistan has recommended the names of justices from Provincial
Courts to fill the four seats that have been vacant since January 2004. The Law Ministry is
yet to draft a summary based on these recommendations. Two other Judges are to retire this
year and questions are raised as to their replacement. The provincial High Courts are also
facing a shortage of judges.
Any decision of the Supreme Court, to the extent that it decides a question of law or is
based upon or enunciates a principle of law, is binding on all other courts in Pakistan.
There is a Federal Shariat Court composed of eight Muslim Judges, which may,
pursuant to Article 203D of the Constitution, either of its own motion or on the petition of a
citizen of Pakistan or the Federal Government or a Provincial Government, examine and
decide the question whether or not any law or provision of law is repugnant to the injunctions
of Islam, as laid down in the Holy Quran and Sunnah of the Holy Prophet (the Injunctions of
Islam). If the Court decides that a law or provision of law is repugnant to the Injunctions of
Islam, the law ceases to have effect, and must be amended. Furthermore, this Court also has
appellate jurisdiction over all cases which can be tried under Huddood Law. An appeal of a
decision of this court lies in the Shariat Appellate Bench of the Supreme Court.
With reference to specific types of cases, in particular labor disputes, Special Courts
for Trial of Offenses and Tribunals have been created. Appeals from the Special Courts are
generally submitted to the High Courts, with the exception of Labor Courts, which retain
separate forums of appeal.
Q7). What is Labor Cost? What is the procedure and power of labor courts?
Answer:
The sum of all wages paid to employees, as well as the cost of employee benefits and
payroll taxes paid by an employer. The cost of labor is broken into direct and indirect costs.
Direct costs include wages for the employees physically making a product, like workers on
an assembly line. Indirect costs are associated with support labor, such as employees that
maintain factory equipment but don't operate the machines themselves.

Powers of Labour Court, Tribunals and National Tribunals to give appropriate relief
in case of discharge or dismissal of workmen. Where an industrial dispute relating to the
discharge or dismissal of a workman has been referred to a Labour Court, Tribunal or
National Tribunal for adjudication and, in the course of the adjudication proceedings, the
Labour Court, Tribunal or National Tribunal, as the case may be, is satisfied that the order of
discharge or dismissal was not justified, it may, by its award, set aside the order of discharge
or dismissal and direct re-instatement of the workman on such terms and conditions, if any,
as it thinks fit, or give such other relief to the workman including the award of any lesser
punishment in lieu of discharge or dismissal as the circumstances of the case may require :
Provided that in any proceeding under this section the Labour Court, Tribunal or
National Tribunal, as the case may be, shall rely only on the materials on record and shall not
take any fresh evidence in relation to the matter.
Q8). Department of business management, after ascertaining your objective approach
in conducting research, nominated you to visit nearby factory. During the industrial
tour to the factory you found many odds relating to the health and safety conditions.
Please design a report in which all the factors related to health and safety can be
covered. It should be in relation of health and safety prescribed in your course under
the factories Act, 1934.
Answer:
PROVISIONS REGARDING THE HEALTH OF WORKERS:
Sections 11 to 20 of the Act contain certain provisions intended to ensure that the
conditions under .which work is carried on in factories do not affect the health of the workers
injuriously. The summary of the provisions are explained below:
Summary of the provisions of the Factories Act relating to the health of workers are
stated below.
Cleanliness:
Every factory shall be kept clean and free from dirt, and the outflow of drains etc. The
floors must be cleaned. Drainage shall be provided. Inside walls, partitions and ceilings must
be repainted at least once in five years. When washable water paint is used they must be
painted once every three years and washed at least every period of six months.-Sec. 11,' as
amended in 1976.
Disposal of wastes and effluents:
The waste materials produced from the manufacturing process must be effectively
disposed of. Sec 12.
Ventilation 'and Temperature:
There must be provision for adequate ventilation by the circulation of fresh air. The
temperature must be kept at a comfortable level. Hot parts of machines must be separated and
insulated.-Sec. 13.

Dust and Fume:
If the manufacturing process used gives off injurious or offensive dust and fume steps
must be taken so that they are not inhaled or accumulated. The exhaust fumes of internal
combustion engines must be conducted outside the factory.-Sec. 14.
Artificial humidification:
The water used for this purpose must be pure. It must be taken from some source of
drinking water supply. The State Government can frame rules .regarding the process of
humidification etc.-8ec. 15
Overcrowding:
There must be no overcrowding in a factory. In factories existing before the
commencement of the Act there must be at least 350 c.ft. (~r 55 cubic meters) of space per
worker. For factories built afterwards, there must be at least 500 c.ft. (or 75 cubic meters) of
space. In calculating the space, an account is to be taken of space above 14 ft. (or 5 meters)
from the floor.-Sec. 16.
Lighting Factories must be well lighted:
Effective measures must be adopted to prevent glare or formation of shadows which
might cause eyestrain.-sec. 17.
Drinking water:
Arrangements must be made to provide a sufficient supply of wholesome drinking
water. All supply points of such water must be marked "drinking water". No such points shall
be within 20 ft. (or 7.5 metros) of any latrine, washing place etc. Factories employing more
than 250 workers must cool the water during the hot weather.-Sec. 18. .
Latrines and Urinals:
Every factory must provide' sufficient number of latrines and urinals. There must be
separate provision for male and female workers. Latrine and urinals must be kept in a clean
and sanitary condition. In factories employing more than 250 workers, they shall be of
prescribed sanitary types. sec19.
PROVISIONS REGARDING THE SAFETY OF WORKERS:
Sections 21 to 40A, 40B and 41 of the Act lay down rules for the purpose of securing
the safety of workers. Summary of the provisions of the Factories Act regarding the safety of
the workers are stated below: (Sections 2l to 41)
Fencing of machinery:
All dangerous machinery must be securely fenced e.g., moving .parts- of prime
movers and flywheels connected to every prime mover electric generators. Etc. Sec. 2l.

Work on or near machinery in motion:
Work on or near machinery in motion must be carried out only by specially trained
adult male workers wearing tightly fitting c1othes.-Sec. 22.
Employment of young persons on dangerous machines:
No young person shall work at any dangerous machine' unless he has been specially
instructed as to the dangers and the precautions to be observed has received sufficient training
about the work and is under the supervision of some person having thorough knowledge and
experience of the machine.-Sec. 23.
Striking gear and devices for cutting off power:
In every factory suitable devices for cutting off power in emergencies from running
machinery shall be provided and maintained in every workroom. Sec. 24
Self-acting machines:
Moving parts of a self-acting machine must not be allowed to come within 45 cms of
any fixed structure which is not part of the machine.-Sec. 25.
Casing of new machinery:
In all machinery installed after the commencement of the Act certain parts must be
sunk, encased or otherwise effectively guarded e.g. set screw, Bolt, toothed gearing etc. -sec.
26.
Women and children near cotton Openers:
Women and children must not be allowed to work near cot/On openers, except in
certain cases.-Sec. 27
Hoists, lifts, chains etc. Every hoist and lift must be so constructed as to be safe.
There are detailed rules as to how such safety is to be secured. There are similar provisions
regarding lifting machines, chains, and ropes and lifting tackle .Sec. 28. 29.
Revolving machinery:
Where grinding is carried on the maximum safe working speed of every revolving
machinery connected therewith must be notified. Steps must be taken to see that the safe
speed is not exceeded.-Sec. 30.
Pressure plant:
Where any operation is carried on at a pressure higher than the atmospheric pressure,
steps must be taken to ensure that the safe working pressure is not exceeding cL-.sec. 31.
Floors, stairs and means of access:
All floors, steps, stairs, passage and gangways shall be of sound construction and
properly maintained. Handrails shall be provided where necessary. Safe means of access shall
be provided to the place where the worker will carry on any work.-Sec. 32

Pits, sumps, openings in floors etc. Pits, sumps, openings in floors etc. must be
securely covered or fenced.-Sec. 33.
Excessive weights:
No worker shall be made to carry a load so heavy as to cause him injury.-8ec. 34.
Protection of eyes:
Effective screen or suitable goggles shall be provided to protect the eyes of the worker
from fragments thrown off in course of any manufacturing process and from excessive light if
any.-Sec. 35.
Precautions against dangerous fumes:
No person shall be allowed to enter any chamber, tank etc. where dangerous fumes
are likely to be present unless it is equipped with a manhole or other means of going out. In
such space no portable electric light of more than 24, volts shall be used. Only a lamp or light
of flame proof construction can be used in such space. For people entering such space
suitable breathing apparatus, reviving apparatus etc. shall be provided. Such places shall be
cooled by ventilation before any person is allowed to enter.-8ecs. 36 and 36A.
Explosive or inflammable gases where a manufacturing process produces
inflammable gas, Dust, fume etc. steps must be taken to enclose the machine concerned,
prevent the accumulation of substances and exclude all possible sources of ignition. Extra
precautionary measures are to be taken where such substances are worked at greater than the
atmospheric pressure.-Sec. 37.
Precaution in case of fire:
Fire escapes shall be provided. Windows and doors shall be constructed to open outwards.
The means of exit in case of the fire shall be clearly marked in red letters. Arrangements must
be made to give warning in case or fire -sec. 38
Specifications of defectives and safety of buildings and machinery:
If any building or machine is in a defective or dangerous condition, the inspector of
factories can ask for the holding of tests to determine how they can be made safe. He can also
direct the adoption of the measure necessary to make them safe. In case of immediate danger,
the use of the building or machine can be prohibited.-Sec. 39. 40.
Maintenance of Buildings:
If the Inspector of Factories thinks that any building in a factory, or any part of it is in
such a state of disrepair that it is likely to affect the health and welfare of the workers he may
serve on the occupier or manager or both in writing specifying the measures to be done
before the specified date.¬ Sec. 4OA.

Safety Officers:
The State Government may notify to the occupier to employ a number of Safety Officers
in a factory
(i) Wherein one thousand or more workers are ordinarily employed.
(ii) Wherein any manufacturing process or operation which involves the risk of bodily
injury, poisoning. disease or any other hazard to health of the persons employed in
the factory .-Sec. 40B.
Rules:
The State Government may make rules providing for the use of such further devices
for safety as may be necessary. Sec. 41.
Q9). Umair private Limited was a new established organization where a worker was
satisfied and management worker relations had congenial harmony in running smooth
industrial operation. All of sudden workers joined worker joined hands and made a
union to protect the rights of the worker. Factory management agreed in principle and
allowed the workers repetitive to apply for registration. Meanwhile the management
filled a law suit against the office bearers to the representative to apply for registration.
Meanwhile the management filled a law suit against the office bearers to the local
labour court charging them for undue pressures to dislodge industrial peace evoked
workers to go on strike. Office bearers of the union made an appeal to the registrar of
the trade union to resolve the matter when there union was going through the process of
registration. Explain what legal protection will be provided under the constitution of
industrial relation with ordinance.
Answer:
 Rights of workmen and employers:
o No person shall interfere with, restrain or coerce a workman or an employer in the
exercise of his rights to form and assist in the formation of and join a trade union
and to participate in its lawful activities.
o No trade union of workmen and no trade union of employers shall interfere with
each other in the establishment, functioning or administration of that trade union.
o No employer or trade union of employers and no person acting on behalf of such
employer or such trade union shall support any trade union of workmen by
financial or other means, with the object of placing it under the control or
influence of such employer or such trade union of employers.
 Prohibition on employers and their trade unions in respect of certain acts:
o No employer or trade union of employers, and no person acting on behalf of an
employer or such trade union shall impose any condition in a contract of

employment seeking to restrain the right of a person who is a party to the contract
to join a trade union, or to continue his membership in a trade union;
o refuse to employ any person on the ground that he is or is not a member or an
officer of a trade union;
o discriminate against any person in regard to employment, promotion, any
condition of employment or working conditions on the ground that he is or is not a
member or officer of a trade union;
o dismiss or threaten to dismiss a workman, injure or threaten to injure him in his
employment or alter or threaten to alter his position to his prejudice by reason that
the workman is or proposes to become, or seeks to persuade any other person to
become, a member or officer of a trade union;
o participates in the promotion, formation or activities of a trade union induce a
person to refrain from becoming or to cease to be a member or officer of a trade
union by conferring or offering to confer any advantage on or by procuring or
offering to procure any advantage for any person,
o Requiring at any time that a person who is or has been appointed or promoted to a
managerial position shall cease to be or not become a member or officer of a trade
union catering for workmen other than those in a managerial position;
o Requiring that any workman employed in confidential capacity in matters relating
to staff relations shall cease tab be or not become a member or officer of a trade
union.
 Leave on trade union business:
o A workman intending to carry out his duties or to exercise his rights as an officer
of a trade union shall apply in writing to him employer for leave of absence
stating the durations of and the purposes for which such leave is applied for and
the employer shall grant the application for leave if the duration of the leave
applied for is for a period that is no longer that what is reasonably required for the
purposes stated in the application:
o Provided that a workman shall not be entitled to leave with pay for the duration of
his absence if the purposes for which he is absent from work are not to represent
the members of his trade union in relation to industrial matters concerning his
employer.
 Prohibition on workmen and their trade unions in respect of certain acts:
o No workman or trade union of workmen and no person acting on behalf of such
trade union shall except with the consent of the employer, persuade at the
employer's place of business during working hours a workman of the employer to
join or refrain from joining a trade union: Provided that the provisions of this

paragraph shall not be deemed to apply to any act by a workman employed in the
same undertaking where the act does not interfere with him normal duties;
o intimidate any person to become or refrain from becoming or to continue to be or
to cease to be a member or officer of a trade union;
o Induce any person to refrain from becoming or cease to be a member or officer of
a trade union by conferring or offering to confer on any person or by procuring or
offering to procure any advantage.
 Reference of complaint to Industrial Court:
o Any complaint of any contravention of sections 4, 5, or 7 may be lodged in
writing to the Director General setting out all the facts and circumstances
constituting the complaint.
o The Director General upon receiving any complaint under subsection (1) may take
such steps or make such enquiries as he considers necessary or expedient to
resolve the complaint; where the complaint is not resolved the Director General
shall notify the Minister.
o Upon receipt of a notification under subsection (2), the Minister may, if he thinks
fit, refer the complaint to the Court for hearing.
o The Court shall thereupon conduct a hearing in accordance with this Act and may
make such award as may be deemed necessary or appropriate.
o This section shall not apply in circumstances where there is a contravention of
section 59 and proceedings have been commenced before a court in respect of an
offence under section 59(1); where, while proceedings are pending under this
section, proceedings arising out the same circumstances are commenced before a
court in respect of an offence under section 59(1), the proceedings under this
section shall not be proceeded with further.
 Employer may provide information on collective bargaining and trade dispute to his
workmen:
o Nothing in this Act shall be construed as preventing an employer from conveying
to him workmen, in such manner as he may deem appropriate, any information on
any mater pertaining to any collective bargaining or trade dispute involving such
workmen and the trade union acting for them.

Q10). One day local trade union of hub area factories called a meeting to discuss wages
increase. When price of all the commodities were soaring and gaining a sky hike. Many
ideas were discussed to resolve the genuine problem of factory workers. Some of the
leaders floated firy ideas to block the main road and go on strike, till the factory owner
increase their wages. After marketing a commitment all the leaders made firy speeches
and stopped running industrial operation. Under this circumstance local administration
took a serious view of the situation and arrested many workers and leaders. As a
student of business law do you agree with this method of handling industrial disputes?
If not, then what industrial relations ordinance directs for the same?
Answer:
NO, there are some methods and ideas due to which this strike can be stop which are
as follows.
Procedures for settling labour dispute:
 Collective Bargaining,
 Negotiation,
 Conciliation and Mediation,
 Arbitration
 Adjudication
Collective Bargaining:
Collective Bargaining is a technique by which dispute as to conditions of
employment, are resolved amicably, by agreement, rather than by coercion. The dispute is
settled peacefully and voluntarily, although reluctantly, between labour and management. In
the context of present day egalitarian society, with its fast changing social norms, a concept
like ‘collective bargaining’ is not a capable of a precise definition. The content and Scope
collective bargaining also varies from country to country. Broadly Speaking Collective
bargaining is a process of bargaining between employers and workers, by which they settle
their disputes relating to employment or nonemployment , terms of employment or conditions
of the labour of the workman, among themselves, on the strength of the sanctions available to
each side. Occasionally, such bargaining results in an amicable settlement arrived at
voluntarily and peacefully, between the parties. But quite often, the workers and employers
have to apply sanctions by resorting to weapons of strike and lockouts, to pressurize one
another, which makes both the sides aware of the strength of one another and that finally
forces each of them to arrive at a settlement in mutual interest. It is thus the respective
strength of the parties which determine the issue, rather than the wordy duals which are
largely put on for show, as an element of strength in one party is by the same token, an
element of weakness in another. The final outcome of bargaining may also depend upon the
art, skill and dexterity of displaying the strength by the representatives of one party to the
other.
Negotiation:
Negotiation is one of the principal means of settling labour disputes. However, due to
lack of trust between the employers and workmen or their trade unions or inter-rivalry of the

trade unions and the employers being in a commanding position, many a time negotiations
fail.
Conciliation & Mediation:
Through conciliation and mediation a third party provides assistance with a view to
help the parties to reach an agreement. The conciliator brings the rival parties together
discuss with them their differences and assist them in finding out solution to their problems.
Mediator on the other hand is more actively involved while assisting the parties to find an
amicable settlement. Sometimes he submits his own proposals for settlement of their
disputes.
Conciliation may be voluntary or compulsory. It is voluntary if the parties are free to
make use of the same, while it is compulsory when the parties have to participate irrespective
of whether they desire to do so or not. Section 4 of the Act provides for appointment for
conciliation officers and Section 5 for constitution of Boards of Conciliation. The Board of
conciliation is to consist of an independent Chairman and two or four member representing
the parties in equal number. While the former is charged with the duty of mediating in and
promoting the settlement of industrial disputes, the latter is required to promote the settlement
of industrial disputes. The act generally allows registered trade unions or a substantial
number of workers/ employees and also in certain cases individual workman to raise disputes.
The performance of conciliation machinery, though it does not appear to be unsatisfactory,
causes delays due to casual attitude of the parties towards conciliation, defective processes in
the selection of personnel and unsatisfactory pre-job training and period-in-service-training.
Delays in conciliation are attributed partly to the excessive work-load on officers and partly
to the procedural defects. Since conciliation officer has no powers of coercion over labour
and management, he can only persuade them to climb down and meet each other. The
settlements that are claimed to result from conciliation are increasingly the result of political
intervention. Success of conciliation depends upon the appearances and their sincere
participation in conciliation proceedings of the parties before the conciliation officers. Non-
appearance and non- participation of the parties in conciliation proceedings poses a serious
hindrance in this direction. On the attitude of the parties National Commission on Labour
observed conciliation is looked upon very often by the parties as merely hurdle to be crossed
for reaching the next stage. The representatives sent by the parties to appear before him are
generally officer who do not have the power to take decisions or make commitments: they
merely carry the suggestion to the concerned authorities on either side. This dampens the
spirit of a conciliator. We have been told by the employers and workers, organizations alike
that the conciliation machinery is weakened because of its falling into this type of disuse in
recent years, Section 11 of the Act has clothed the conciliation officers with the power to
enter premises occupied by any establishment and also has been invested with the powers of
civil court under the Civil Procedure Code, 1908 when trying a suit for enforcing the
attendance of any person and examining him on oath, compelling the production of
documents and material objects and issuing commission for examination of witness for the
purpose of inquiry in to any existing or apprehended industrial dispute. These provisions are
seldom enforced. Moreover, conciliators most often do not have requisite information on the
employers and trade unions, up to date wage/productivity, information and relevant up to date
case laws which affect his capability to conciliate effectively. The National commission on
labour in this context laid emphasis for pre job and on the job training of conciliation officers.

Arbitration:
The resort to arbitration procedure may be compulsory or arbitrary. Compulsory
arbitration is the submission of disputes to arbitration without consent or agreement of the
parties involved in the dispute and the award given by the arbitrator being binding on the
parties to the dispute. On the other hand in case of voluntary arbitration, the dispute can be
referred for arbitration only if the parties agree to the same. Section 10 A of the Act,
however, provides only for voluntary reference of dispute to arbitration. This system,
however, has not been widely practiced so far. One of the main reasons for not gaining
popularly of this procedure is lack of arbitrators who are able to command respect and
confidence of the parties to the dispute. Inter Union rivalry also sometimes makes it difficult
in arriving at an agreement on settlement of an arbitrator who is acceptable to all the trade
unions in the industry.
Adjudication:
If despite efforts of the conciliation officer , no settlement is arrived at between
employer and the workman, The Industrial Dispute a provides for a three tier system of
adjudication viz. Labour Courts , Industrial Tribunals and National Tribunals under section,
7, 7A and under section 7B respectively. Labour Courts have been empowered to decide
disputes relating to matters specified in the Second Schedule. These matters are concerned
with the rights of workers, such as propriety of legality of an order passed by an employer
under the standing orders, application and interpretation of standing orders, discharge or
dismissal of workman including reinstatement of grant of relief to workman wrongfully
discharged or dismissed, withdrawal of any customary concession or privilege and illegality
or otherwise of a strike or lockout. The industrial tribunal is empowered to adjudicate on
matters specified in both the Second and third schedule i.e. both rights and interest disputes.
The jurisdiction of the Industrial Tribunal is wider that the labour courts.

Assignment 3

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