MBA 316: INDUSTRIAL RELATIONS AND LABOR LAWS Module I: Industrial Relations and Collective Bargaining Industrial Relations-conceptual

and legal framework, Collective Bargaining-an overview, bargaining and Negotiating skills, Workers Participation in Management, ILO conventions, Sound Labor Management Relations, Grievance Redressal Machinery, Industrial Relations after globalization Module II: Introduction to Labor Laws Labor Law Origin - Purpose - Role of the State - Constitutional Provisions Fundamental Rights and Directive Principles of State Policy Module III: Laws for handling Industrial Disputes and Contract Labor Industrial Disputes Act 1947, Contract Labor (Regulation & Abolition) Act, 1970 Module IV: Trade Unions Trade Unions: Meaning, Functions, Problems, Trade Unions Act, 1926 Module V: Employee Benefits and Social Security related laws Minimum Wages Act, 1948, Payment of Wages Act 1936, Equal Remuneration Act 1976, Payment of Bonus Act 1965. Payment of Gratuity Act, 1972: Provident Fund Act 1952, Workmens Compensation Act 1923, E.S.I.C. Act, 1948, Maternity Benefit Act 1961.

Module I: Industrial Relations and Collective Bargaining Industrial Relations-conceptual and legal framework, Collective Bargaining-an overview, Bargaining and Negotiating skills, Workers Participation in Management, ILO conventions, Sound Labor Management Relations, Grievance Redressal Machinery, Industrial Relations after globalization. Industrial Relations - conceptual and legal framework Industrial relations is a multidisciplinary field that studies the employment relationship. Industrial relations is increasingly being called employment relations because of the importance of non-industrial employment relationships. Many outsiders also equate industrial relation with someone who made it to labor relations. Industrial relations studies examine various employment situations, not just ones with a unionized workforce. Industrial relations is a major force which influences the social, political and economic development of a country. Managing industrial relations is a challenging task because it deals with a highly complex, fast developing, ever-changing and expanding field. There are certain factors such as composition of working class, work environment, socio-economic status of the workers and their attitude to work, management`s ideology, role of the State, thinking of the community, etc. which have a considerable bearing on the state of relationship between labor and management. Different labor enactments and judicial decisions play a major role in regulating the employer - employee relationship. Conceptual Model of Industrial Relations

Role of State Intervention: State intervention in business is necessary in a developing country because of the following reasons: 1. Developing countries lack powerful labor unions, enabling organizations to exploit workers and even ignore their demands. This is why governments have to step in and play a role in delineating certain parameters of industrial relations. 2. When the conditions of laborers worsen, and/or disputations arise, the government cannot be a silent bystander. It has to intervene in the situation and try to satisfy both sides by being a preceptor or an intermediary, and establish peace. 3. The federal nature of the constitution has made it imperative for the state to intervene in matters of labor to ensure a smooth and continuous operation. The state and the central governments have established certain laws that have to be followed by businesses. These are: the Plantations Act of 1952, the Minimum Wages Act of 1948, the Industrial Disputes Act, the Payment of Bonus Act of 1965, the Contract Labor Act of 1970, the Payment of Gratuity Act of 1972, the Bonded Labor System Act and the Remuneration Act of 1978. 4. The Directive Principals of the Constitution enjoin upon the state to establish a welfare state and to look after the interests of the weaker sections of the society, for example, the physically disabled. Collective Bargaining-an overview, Bargaining and Negotiating skills Collective Bargaining is a process in which the representatives of a labor organization & the representatives of business organization meet and attempt to negotiate a contract or agreement, which specifies the nature of employee-employer union relationship. The collective agreements reached by these negotiations attempt to establish wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs. The parties often refer to the result of the negotiation as a collective bargaining agreement (CBA) or as a collective employment agreement (CEA). The collective bargaining process comprises of five core steps: Prepare: This phase involves composition of a negotiation team. The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation. In this phase both the employers representatives and the union examine their own situation in order to develop the issues that they believe will be most important. The first thing to be done is to determine whether there is actually any reason to negotiate at all. A correct understanding of

the main issues to be covered and intimate knowledge of operations, working conditions, production norms and other relevant conditions is required. Discuss: Here, the parties decide the ground rules that will guide the negotiations. A process well begun is half done and this is no less true in case of collective bargaining. An environment of mutual trust and understanding is also created so that the collective bargaining agreement would be reached. Propose: This phase involves the initial opening statements and the possible options that exist to resolve them. In a word, this phase could be described as brainstorming. The exchange of messages takes place and opinion of both the parties is sought. Bargain: negotiations are easy if a problem solving attitude is adopted. This stage comprises the time when what ifs are set forth and the drafting of agreements take place. Settlement: Once the parties are through with the bargaining process, a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue. This stage is described as consisting of effective joint implementation of the agreement through shared visions, strategic planning and negotiated change.

Types of Bargaining: Conjunctive / Distributive Bargaining: Distributive bargaining is the most common type of bargaining & involves zero-sum negotiations, in other words, one side wins and the other loses. Both parties try to maximize their respective gains. They try to settle economic issues such as wages, benefits, bonus, etc. For Example, Unions negotiate for maximum wages & the management wants to yield as little as possible while getting things done through workers.

In distributive bargaining, unions and management have initial offers or demands, target points (e.g.: desired wage level), resistance points (e.g.: unacceptable wage levels) & settlement ranges (e.g.: acceptable wage level). Another name for this type of bargaining isconjunctive bargaining. Cooperative /Integrative Bargaining: Integrative bargaining is similar to problem solving sessions in which both sides are trying to reach a mutually beneficial alternative, i.e. a win-win situation. Both the employer & the union try to resolve the conflict to the benefit of both parties. For Example, when companies are hit by recession, they cannot offer the kind of wages and benefits demanded by workers. At the same time they cannot survive without the latters support. Both parties realize the importance of surviving in such difficult times and are willing to negotiate the terms of employment in a flexible way. Productivity Bargaining: The concept of productivity bargain involves a good understanding of the following concepts. Based on these concepts both the parties must develop a productivity linked scheme. Difference between productivity & work intensity, How to conduct work study, ILO guidelines for work study, Personal needs allowance, Fatigue allowance, hazardous allowance , etc. Other Methods like MOST (Maynard Operational Sequence Techniques), Systems improvement and method improvement. Required Skills and Knowledge for productivity settlement. Composite Bargaining: Workers believed that productivity bargaining agreements increased their workloads. Rationalization, introduction of new technology, tight productivity norms have added to this burden and made the life of a worker some what uneasy. As an answer to such problems, labor has come in favor of composite bargaining. Concessionary Bargaining: Quite opposite to the other forms of bargaining, where the unions demanded from the employers, in concessionary bargaining, the objective is to giving back to management some of what it has gained in previous bargaining. Why should labor be willing to give back what it has worked so hard to obtain? A good example is the agreement between General Motors & the International Union of Electric Workers that granted GM around the-clock operations, wages and benefits concessions for the new hires, and a two-week mass vacation. The concessions were made to save over 3,000 jobs.

Negotiating is the process of communicating back and forth, for the purpose of reaching a joint agreement about differing needs or ideas. It is a collection of behaviors that involves communication, sales, marketing, psychology, sociology, assertiveness and conflict resolution. A negotiator may be a buyer or seller, a customer or supplier, a boss or employee, a business partner, a diplomat or a civil servant. On a more personal level negotiation takes place between spouses friends, parents or children. It is a process of interaction by which two or more parties who consider that they need to be jointly involved in an outcome, but who initially have different objectives, seek by the use of argument and persuasion to resolve their difference in order to achieve a mutually acceptable solution. Another important consideration is that negotiation implies acceptance by both parties that agreement between them is required before a decision can be implemented. Here are seven basic principles common to all forms of negotiation. There are minimum two parties involved in the negotiation process. There exists some common interest, either in the subject matter of the negotiation or in the negotiating context, that puts or keeps the parties in contact. Though the parties have the same degree of interest, they initially start with different opinions and objectives which hinders the outcome in general. In the beginning, parties consider that negotiation is a better way of trying to solve their differences. Each party is under an impression that there is a possibility of persuading the other party to modify their original position, as initially parties feel that they shall maintain their opening position and persuade the other to change. During the process, the ideal outcome proves unattainable but parties retain their hope of an acceptable final agreement. Each party has some influence or power real or assumed over the others ability to act. The process of negotiation is that of interaction between people usually this is direct and verbal interchange. Workers Participation in Management Traditionally the concept of Workers Participation in Management (WPM) refers to participation of non-managerial employees in the decision-making process of the organization. Workers participation is also known as labor participation or employee participation in management. In Germany it is known as co-determination while in Yugoslavia it is known as self-management. The International Labor Organization has been encouraging member nations to promote the scheme of Workers Participation in Management.

Workers participation in management implies mental and emotional involvement of workers in the management of Enterprise. It is considered as a mechanism where workers have a say in the decision-making. The concept of workers participation in management encompasses the following: It provides scope for employees in decision-making of the organization. The participation may be at the shop level, departmental level or at the top level. The participation includes the willingness to share the responsibility of the organization by the workers. Features of WPM: 1. Participation means mental and emotional involvement rather than mere physical presence. 2. Workers participate in management not as individuals but collectively as a group through their representatives. 3. Workers participation in management may be formal or informal. In both the cases it is a system of communication and consultation whereby employees express their opinions and contribute to managerial decisions. 4. a. b. There can be 5 levels of Management Participation or WPM: Information participation: It ensures that employees are able to receive information and express their views pertaining to the matter of general economic importance. Consultative importance: Here workers are consulted on the matters of employee welfare such as work, safety and health. However, final decision always rests with the top-level management, as employees views are only advisory in nature. Associative participation: It is an extension of consultative participation as management here is under the moral obligation to accept and implement the unanimous decisions of the employees. Under this method the managers and workers jointly take decisions. Administrative participation: It ensures greater share of workers participation in discharge of managerial functions. Here, decisions already taken by the management come to employees, preferably with alternatives for administration and employees have to select the best from those for implementation. Decisive participation: Highest level of participation where decisions are jointly taken on the matters relating to production, welfare etc. Objectives of WPM: 1. 2. 3. 4. To establish Industrial Democracy. To build the most dynamic Human Resources. To satisfy the workers social and esteem needs. To strengthen labor-management co-operation and thus maintain Industrial peace and harmony.

c.

d.

e.

5.

To promote increased productivity for the advantage of the organization, workers and the society at large. 6. Its psychological objective is to secure full recognition of the workers.
http://learnmba.blogspot.in/2011/06/workers-participation-in-management.html

ILO conventions A majority of countries have adopted legislation to prohibit or place severe restrictions on the employment and work of children, much of it stimulated and guided by standards adopted by the International Labor Organization (ILO). In spite of these efforts, child labor continues to exist on a massive scale, sometimes in appalling conditions, particularly in the developing world. If progress has been slow or apparently nonexistent, this is because child labor is an immensely complex issue. It cannot be made to disappear simply by the stroke of a pen. Nevertheless, the basis of determined and concerted action must be legislation, which sets the total elimination of child labor as the ultimate goal of policy, and puts measures into place for this purpose, and which explicitly identifies and prohibits the worst forms of child labor to be eliminated as a matter of priority. ILO Convention No. 182 on the worst forms of child labor, 1999 Child labor, as the statistics clearly demonstrate, is a problem of immense global proportions. Following its comprehensive research into the issue, the ILO concluded that it was necessary to strengthen existing Conventions on child labor. Convention No. 182 helped to focus the international spotlight on the urgency of action to eliminate as a priority, the worst forms of child labor without losing the long term goal of the effective elimination of all child labor. ILO Convention No. 138 on the minimum age for admission to employment and work One of the most effective methods of ensuring that children do not start working too young is to set the age at which children can legally be employed or otherwise work. The main principles of the ILOs Convention concerning the minimum age of admission to employment and work are in the table below. The minimum age at which children can start work. Hazardous work Any work which is likely to jeopardize childrens physical, mental or moral heath, Possible exceptions for developing countries 18 (16 under strict

18 (16 under strict

safety or morals should not be done by anyone under the age of 18. Basic Minimum Age The minimum age for work should not be below the age for finishing compulsory schooling, which is generally 15. Light work Children between the ages of 13 and 15 years old may do light work, as long as it does not threaten their health and safety, or hinder their education or vocational orientation and training.

conditions)

conditions)

15

14

13-15

12-14

Sound Labor Management Relations Grievance Redressal Machinery Industrial Establishments having 20 or more workmen in accordance with the recent amendments to the ID Act by insertion of Section 9 C have to do the following : Setting up of Grievance Redressal Machinery (1) Every industrial establishment employing twenty or more workmen shall have one or more Grievance Redressal Committee for the resolution of disputes arising out of individual grievances. (economic, work environment, supervision, work group) (2) The Grievance Redressal Committee shall consist of equal number of members from the employer and the workmen. (3) The chairperson of the Grievance Redressal Committee shall be selected from the employer and from among the workmen alternatively on rotation basis every year. (4) The total number of members of the Grievance Redressal Committee shall not exceed more than six: Provided that there shall be, as far as practicable one woman member if the Grievance Redressal Committee has two members and in case the number of members are more than two, the number of women members may be increased proportionately.

(5) Not withstanding anything contained in this section, the setting up of Grievance Redressal Committee shall not affect the right of the workman to raise industrial dispute on the same matter under the provisions of this Act. (6) The Grievance Redressal Committee may complete its proceedings within thirty days on receipt of a written application by or on behalf of the aggrieved party. (7) The workman who is aggrieved of the decision of the Grievance Redressal Committee may prefer an appeal to the employer against the decision of Grievance Redressal Committee and the employer shall, within one month from the date of receipt of such appeal, dispose off the same and send a copy of his decision to the workman concerned. Industrial Relations after globalization Prior to 1991, the industrial relations system in India sought to control conflicts and disputes through excessive labor legislations. These labor laws were protective in nature and covered a wide range of aspects of workplace industrial relations like laws on health and safety of labors, layoffs and retrenchment policies, industrial disputes and the like. The basic purpose of these laws was to protect labors. However, these protectionist policies created an atmosphere that led to increased inefficiency in firms, over employment and inability to introduce efficacy. With the coming of globalization, the 40 year old policy of protectionism proved inadequate for Indian industry to remain competitive as the lack of flexibility posed a serious threat to manufacturers because they had to compete in the international market. With the advent of liberalization in 1992, the industrial relations policy began to change. Now, the policy was tilted towards employers. Employers opted for workforce reduction, introduced policies of voluntary retirement schemes and flexibility in workplace also increased. Thus, globalization brought major changes in industrial relations policy in India. The changes can be summarized as follows: Collective bargaining in India has mostly been decentralized, but now in sectors where it was not so, are also facing pressures to follow decentralization. Some industries are cutting employment to a significant extent to cope with the domestic and foreign competition e.g. pharmaceuticals. On the other hand, in other industries where the demand for employment is increasing are experiencing employment growths. In the expansionary economy there is a clear shortage of managers and skilled labor. The number of local and enterprise level unions has increased and there is a significant reduction in the influence of the unions. Under pressure some unions and federations are putting up a united front e.g. banking. Another trend is that the employers have started to push for internal unions i.e. no outside affiliation.

HR policies and forms of work are emerging that include, especially in multi-national companies, multi-skills, variable compensation, job rotation etc. These new policies are difficult to implement in place of old practices as the institutional set up still needs to be changed. HRM is seen as a key component of business strategy. Training and skill development is also receiving attention in a number of industries, especially banking and information technology.

Module II: Introduction to Labor Laws Labor Law Origin - Purpose - Role of the State - Constitutional Provisions Fundamental Rights and Directive Principles of State Policy Labor Law Labor law (also called labor law or employment law) is the body of laws, administrative rulings, and precedents which address the legal rights of, and restrictions on, working people and their organizations. As such, it mediates many aspects of the relationship between trade unions, employers and employees. However, there are two broad categories of labor law. First, collective labor law relates to the tripartite relationship between employee, employer and union. Second, individual labor law concerns employees' rights at work and through the contract for work. The labor movement has been instrumental in the enacting of laws protecting labor rights in the 19th and 20th centuries. Labor rights have been integral to the social and economic development since the Industrial Revolution. Employment standards are social norms (in some cases also technical standards) for the minimum socially acceptable conditions under which employees or contractors will work. Government agencies (such as the former U.S. Employment Standards Administration) enforce employment standards codified by labor law (legislative, regulatory, or judicial). History of labor law concerns the development of labor law as a way of regulating and improving the life of people at work. In the great civilisations of antiquity there were great aggregations of labor which was not solely, though frequently it was predominantly, slave labor. Some of the features of manufacture and mining on a great scale arose, producing the same sort of evils and industrial maladies known and regulated in our own times. Some of the maladies were described by Pliny and classed as " diseases of slaves." And he gave descriptions of processes, for example in the metal trades, as belonging entirely to his own day, which modern archaeological discoveries trace back through the earliest known Aryan civilisations to a prehistoric origin in the East, and which have never died out in western Europe, but can be traced in a concentrated manufacture with almost unchanged methods, now in France, now in Germany, now in England.

Purpose Labor law is designed to protect the rights of individual workers and employers, and to promote productive, safe workplaces. Prior to the advent of labor legislation, workplaces were regulated only by the ethics of the ownership and the bargaining power of the employee. Situations for employees varied in terms of safety and other working conditions. Employers were in the stronger position, leading the provinces to set minimum standards of employment. Any term of the employment contract not regulated by statute is still subject to the common law.

Role of the state Current State Minimum Wage Rates Employment/Age Certificate Issuance Practice Under State Child Labor Laws and Programs Minimum Rest Period Requirements Under State Law for Adult Employees in Private Sector Minimum Length of Meal Period Required Under State Law for Adult Employees in Private Sector Minimum hourly cash wage for tipped employees under State minimum wage laws Dollar threshold amount for contract coverage under State prevailing wage laws Selected State child labor standards affecting minors under 18 in non-farm employment State laws regulating child entertainment occupations State child labor laws applicable to agricultural employment Employment related provisions in State compulsory school attendance laws State right-to-work laws Monthly Labor Review (Bureau of Labor Statistics) Various articles printed in the "Monthly Labor Review" over the past decade which deal with state laws

National Association of Government Labor Officials (NAGLO) NAGLO is a professional association consisting of the chief official in each state and territory of the United States responsible for overseeing the laws that protect and serve working men and women throughout the nation. Constitutional Provisions In the Constitution of India, entry 24 in list III of schedule VII deals with the "Welfare of Labor, including conditions of work, provident funds, liability for workmens compensation, invalidity and old age pension and maternity benefits. Further, Article 41 of Directive Principles of State Policy has particular relevance to Old Age Social Security." Item No. 9 of the State List and item 20, 23 and 24 of Concurrent List relates to old age pension, social security and social insurance, and economic and social planning. Article 41 of Indian Constitution deals with the States role in providing social s ecurity to the aged. According to this article, "the State shall, within the limits of its economic capacity and development, make effective provision for securing the right to work, to education and to public assistance in case of unemployment, OLD AGE, sickness and disablement and in other cases of undeserved want":

EDUCATION Art. 21A. The State shall provide free and compulsory education to all children of the age of six to fourteen years in such manner as the State may, by law, determine. (EIGHTY-SIXTH AMENDMENT ACT, 2002) Art. 41. Right to work, to education and to public assistance in certain cases. The State shall, within the limits of its economic capacity and development, make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old age, sickness and disablement, and in other cases of undeserved want. Art. 45. Provision for free and compulsory education for children. (1) The State shall endeavour to provide, within a period of ten years from the commencement of this Constitution, for free and compulsory education for all children until they complete the age of fourteen years. (2) The State shall endeavour to provide early childhood care and education for all children until they complete the age of six years. (EIGHTY-SIXTH AMENDMENT ACT, 2002) Art. 46. Promotion of educational and economic interests of Scheduled Castes, Scheduled Tribes and other weaker sections. The State shall promote with special care the educational and economic interests of the weaker sections of the people, and, in particular, of the Scheduled Castes and the Scheduled Tribes, and shall protect them from social injustice and all forms of exploitation. Art. 51A (k) who is a parent or guardian to provide opportunities for education to his child or, as the case may be, ward between the age of six and fourteen years. (EIGHTY-SIXTH AMENDMENT ACT, 2002) MINORITIES Art. 29. Protection of interests of minorities. (1) Any section of the citizens residing in the territory of India or any part thereof having a distinct language, script or culture of its own shall have the right to conserve the same. (2) No citizen shall be denied admission into any educational institution maintained by the State or receiving aid out of State funds on grounds only of religion, race, caste, language or any of them. Art. 30. Right of minorities to establish and administer educational institutions. (1) All minorities, whether based on religion or language, shall have the right to establish and administer educational institutions of their choice. (1A) In making any law providing for the compulsory acquisition of any property of an educational institution established and administered by a minority, referred to in clause (1), the State shall ensure that the amount fixed by or determined under such law for the acquisition of such property is such as would not restrict or abrogate the right guaranteed under that clause. (2) The State shall not, in granting aid to educational institutions, discriminate against any educational institution on the ground that it is under the management of a minority, whether based on religion or language. Art. 350A. Facilities for instruction in mother-tongue at primary stage. It shall be the endeavour of every State and of every local authority within the State to provide adequate facilities for instruction in the mother-tongue at the primary stage of education to children belonging to linguistic minority groups; and the President may issue such directions to any State as he considers necessary or proper for securing the provision of such facilities.

Art. 15 (5) Nothing in this article or in sub-clause (g) of clause (1) of article 19 shall prevent the State from making any special provision, by law, for the advancement of any socially and educationally backward classes of citizens or for the Scheduled Castes or the Scheduled Tribes in so far as such special provisions relate to their admission to educational institutions including private educational institutions, whether aided or unaided by the State, other than the minority educational institutions referred to in clause (1) of article 30. (NINETY-THIRD AMENDMENT ACT, 2005) EQUALITY Art. 14. Equality before law. The State shall not deny to any person equality before the law or the equal protection of the laws within the territory of India. Art. 15. Prohibition of discrimination on grounds of religion, race, caste, sex or place of birth. (1) The State shall not discriminate against any citizen on grounds only of religion, race, caste, sex, place of birth or any of them. (2) No citizen shall, on grounds only of religion, race, caste, sex, place of birth or any of them, be subject to any disability, liability, restriction or condition with regard to (a) access to shops, public restaurants, hotels and places of public entertainment; or (b) the use of wells, tanks, bathing ghats, roads and places of public resort maintained wholly or partly out of State funds or dedicated to the use of the general public. (3) Nothing in this article shall prevent the State from making any special provision for women and children. (4) Nothing in this article or in clause (2) of article 29 shall prevent the State from making any special provision for the advancement of any socially and educationally backward classes of citizens or for the Scheduled Castes and the Scheduled Tribes. Art. 17. Abolition of Untouchability. Untouchability is abolished and its practice in any form is forbidden. The enforcement of any disability arising out of Untouchability shall be an offence punishable in accordance with law. Art. 24. Prohibition of employment of children in factories, etc. No child below the age of fourteen years shall be employed to work in any factory or mine or engaged in any other hazardous employment GENDER and VULNURABLE GROUPS Art. 39. Certain principles of policy to be followed by the State. The State shall, in particular, direct its policy towards securing (a) that the citizens, men and women equally, have the right to an adequate means of livelihood; (e) that the health and strength of workers, men and women, and the tender age of children are not abused and that citizens are not forced by economic necessity to enter avocations unsuited to their age or strength; (f) that children are given opportunities and facilities to develop in a healthy manner and in conditions of freedom and dignity and that childhood and youth are protected against exploitation and against moral and material abandonment.

RELIGION Art. 25. Freedom of conscience and free profession, practice and propagation of religion. (1) Subject to public order, morality and health and to the other provisions of this Part, all persons are equally entitled to freedom of conscience and the right freely to profess, practise and propagate religion. (2) Nothing in this article shall affect the operation of any existing law or prevent the State from making any law (a) regulating or restricting any economic, financial, political or other secular activity which may be associated with religious practice; (b) providing for social welfare and reform or the throwing open of Hindu religious institutions of a public character to all classes and sections of Hindus. Explanation I.The wearing and carrying of kirpans shall be deemed to be included in the profession of the Sikh religion. Explanation II.In sub-clause (b) of clause (2), the reference to Hindus shall be construed as including a reference to persons professing the Sikh, Jaina or Buddhist religion, and the reference to Hindu religious institutions shall be construed accordingly. Art. 26. Freedom to manage religious affairs. Subject to public order, morality and health, every religious denomination or any section thereof shall have the right (a) to establish and maintain institutions for religious and charitable purposes; (b) to manage its own affairs in matters of religion; Art. 28. Freedom as to attendance at religious instruction or religious worship in certain educational institutions. (1) No religious instruction shall be provided in any educational institution wholly maintained out of State funds. (2) Nothing in clause (1) shall apply to an educational institution which is administered by the State but has been established under any endowment or trust which requires that religious instruction shall be imparted in such institution. (3) No person attending any educational institution recognised by the State or receiving aid out of State funds shall be required to take part in any religious instruction that may be imparted in such institution or to attend any religious worship that may be conducted in such institution or in any premises attached thereto unless such person or, if such person is a minor, his guardian has given his consent thereto. Fundamental Rights and Directive Principles of State Policy The Fundamental Rights, Directive Principles of State Policy and Fundamental Duties are sections of the Constitution of India that prescribe the fundamental obligations of the State to its citizens and the duties of the citizens to the State. These sections comprise a constitutional bill of rights for government policy-making and the behaviour and conduct of citizens. These sections are considered vital elements of the constitution, which was developed between 1947 and 1949 by the Constituent Assembly of India. The Fundamental Rights are defined as the basic human rights of all citizens. These rights, defined in Part III of the Constitution, apply irrespective of race, place of birth, religion, caste, creed or sex. They are enforceable by the courts, subject to specific restrictions.

The Directive Principles of State Policy are guidelines for the framing of laws by the government. These provisions, set out in Part IV of the Constitution, are not enforceable by the courts, but the principles on which they are based are fundamental guidelines for governance that the State is expected to apply in framing and passing laws. Fundamental rights The Fundamental Rights, embodied in Part III of the Constitution, guarantee civil rights to all Indians, and prevent the State from encroaching on individual liberty while simultaneously placing upon it an obligation to protect the citizens' rights from encroachment by society. Seven fundamental rights were originally provided by the Constitution right to equality, right to freedom, right against exploitation, right to freedom of religion, cultural and educational rights, right to property and right to constitutional remedies. However, the right to property was removed from Part III of the Constitution by the 44th Amendment in 1978. Right to Equality: The Right to Equality is one of the chief guarantees of the Constitution. It is embodied in Articles 1416, which collectively encompass the general principles of equality before law and non-discrimination, and Articles 1718 which collectively further the philosophy of social equality. Article 14 guarantees equality before law as well as equal protection of the law to all persons within the territory of India. This includes the equal subjection of all persons to the authority of law, as well as equal treatment of persons in similar circumstances. Article 15 prohibits discrimination on the grounds only of religion, race, caste, sex, place of birth, or any of them. This right can be enforced against the State as well as private individuals, with regard to free access to places of public entertainment or places of public resort maintained partly or wholly out of State funds. Right to Freedom The Right to Freedom is covered in Articles 1922, with the view of guaranteeing individual rights that were considered vital by the framers of the Constitution, and these Articles also include certain restrictions that may be imposed by the State on individual liberty under specified conditions. Article 19 guarantees six freedoms in the nature of civil rights, which are available only to citizens of India. These include the freedom of speech and expression, freedom of assembly, freedom of association without arms, freedom of movement throughout the territory of India, freedom to reside and settle in any part of the country of India and the freedom to practice any profession. All these freedoms are subject to reasonable restrictions that may imposed on them by the State, listed under Article 19 itself. The grounds for imposing these restrictions vary according to the freedom sought to be restricted, and include national security, public order, decency and morality, contempt of court, incitement to offences, and defamation. The State is also empowered, in the interests of the general public to nationalise any trade, industry or service to the exclusion of the citizens.

Right against Exploitation: Child labor and Beggar is prohibited under the Right against Exploitation. The Right against Exploitation, contained in Articles 2324, lays down certain provisions to prevent exploitation of the weaker sections of the society by individuals or the State. Article 23 provides prohibits human trafficking, making it an offence punishable by law, and also prohibits forced labor or any act of compelling a person to work without wages where he was legally entitled not to work or to receive remuneration for it. However, it permits the State to impose compulsory service for public purposes, including conscription and community service. The Bonded Labor system (Abolition) Act, 1976, has been enacted by Parliament to give effect to this Article. Article 24 prohibits the employment of children below the age of 14 years in factories, mines and other hazardous jobs. Parliament has enacted the Child Labor (Prohibition and Regulation) Act, 1986, providing regulations for the abolition of, and penalties for employing, child labor, as well as provisions for rehabilitation of former child laborers. Right to Freedom of Religion: The Right to Freedom of Religion, covered in Articles 2528, provides religious freedom to all citizens and ensures a secular State in India. According to the Constitution, there is no official State religion, and the State is required to treat all religions impartially and neutrally. Article 25 guarantees all persons the freedom of conscience and the right to preach, practice and propagate any religion of their choice. This right is, however, subject to public order, morality and health, and the power of the State to take measures for social welfare and reform. The right to propagate, however, does not include the right to convert another individual, since it would amount to an infringement of the other's right to freedom of conscience. Article 26 guarantees all religious denominations and sects, subject to public order, morality and health, to manage their own affairs in matters of religion, set up institutions of their own for charitable or religious purposes, and own, acquire and manage property in accordance with law. These provisions do not derogate from the State's power to acquire property belonging to a religious denomination. The State is also empowered to regulate any economic, political or other secular activity associated with religious practice. Article 27 guarantees that no person can be compelled to pay taxes for the promotion of any particular religion or religious institution.[66] Article 28 prohibits religious instruction in a wholly State-funded educational institution, and educational institutions receiving aid from the State cannot compel any of their members to receive religious instruction or attend religious worship without their (or their guardian's) consent.

Cultural and Educational Rights: The Cultural and Educational rights, given in Articles 29 and 30, are measures to protect the rights of cultural, linguistic and religious minorities, by enabling them to conserve their heritage and protecting them against discrimination. Article 29 grants any section of citizens having a

distinct language, script culture of its own, the right to conserve and develop the same, and thus safeguards the rights of minorities by preventing the State from imposing any external culture on them. It also prohibits discrimination against any citizen for admission into any educational institutions maintained or aided by the State, on the grounds only of religion, race, caste, language or any of them. However, this is subject to reservation of a reasonable number of seats by the State for socially and educationally backward classes, as well as reservation of up to 50 percent of seats in any educational institution run by a minority community for citizens belonging to that community. Right to constitutional remedies: Right to constitutional remedies empowers the citizens to move a court of law in case of any denial of the fundamental rights. For instance, in case of imprisonment, the citizen can ask the court to see if it is according to the provisions of the law of the country. If the court finds that it is not, the person will have to be freed. This procedure of asking the courts to preserve or safeguard the citizens' fundamental rights can be done in various ways. The courts can issue various kinds of writs. These writs are habeas corpus, mandamus, prohibition, quo warranto and certiorari. When a national or state emergency is declared, this right is suspended by the central government. Directive principles The Directive Principles of State Policy, embodied in Part IV of the Constitution, are directions given to the State to guide the establishment of an economic and social democracy, as proposed by the Preamble. They set forth the humanitarian and socialist instructions that were the aim of social revolution envisaged in India by the Constituent Assembly. The State is expected to keep these principles in mind while framing laws and policies, even though they are non-justiciable in nature. The Directive Principles may be classified under the following categories: ideals that the State ought to strive towards achieving; directions for the exercise of legislative and executive power; and rights of the citizens which the State must aim towards securing. Article 37, while stating that the Directive Principles are not enforceable in any court of law, declares them to be "fundamental to the governance of the country" and imposes an obligation on the State to apply them in matters of legislation. Thus, they serve to emphasise the welfare state model of the Constitution and emphasise the positive duty of the State to promote the welfare of the people by affirming social, economic and political justice, as well as to fight income inequality and ensure individual dignity, as mandated by Article 38. in order to ensure equitable distribution of land resources. Article 39 lays down certain principles of policy to be followed by the State, including providing an adequate means of livelihood for all citizens, equal pay for equal work for men and women, proper working conditions, reduction of the concentration of wealth and means of production from the hands of a few, and distribution of community resources to "subserve the common

good". These clauses highlight the Constitutional objectives of building an egalitarian social order and establishing a welfare state, by bringing about a social revolution assisted by the State, and have been used to support the nationalization of mineral resources as well as public utilities. Further, several legislations pertaining to agrarian reform and land tenure have been enacted by the federal and state governments, in order to ensure equitable distribution of land resources. Articles 4143 mandate the State to endeavour to secure to all citizens the right to work, a living wage, social security, maternity relief, and a decent standard of living. These provisions aim at establishing a socialist state as envisaged in the Preamble. Article 43 also places upon the State the responsibility of promoting cottage industries, and the federal government has, in furtherance of this, established several Boards for the promotion of khadi, handlooms etc., in coordination with the state governments. Article 39A requires the State to provide free legal aid to ensure that opportunities for securing justice are available to all citizens irrespective of economic or other disabilities. Article 43A mandates the State to work towards securing the participation of workers in the management of industries. The State, under Article 46, is also mandated to promote the interests of and work for the economic uplift of the scheduled castes and scheduled tribes and protect them from discrimination and exploitation. Several enactments, including two Constitutional amendments, have been passed to give effect to this provision. Article 44 encourages the State to secure a uniform civil code for all citizens, by eliminating discrepancies between various personal laws currently in force in the country. However, this has remained a "dead letter" despite numerous reminders from the Supreme Court to implement the provision. Article 45 originally mandated the State to provide free and compulsory education to children between the ages of six and fourteen years, but after the 86th Amendment in 2002, this has been converted into a Fundamental Right and replaced by an obligation upon the State to secure childhood care to all children below the age of six. Article 47 commits the State to raise the standard of living and improve public health, and prohibit the consumption of intoxicating drinks and drugs injurious to health.

Module III: Laws for handling Industrial Disputes and Contract Labor Industrial Disputes Act 1947, Contract Labor (Regulation & Abolition) Act, 1970 Industrial Disputes Act 1947 The Industrial Disputes Act, 1947 extends to the whole of India. It came into force April 1, 1947. Objectives: The objective of the Industrial Disputes Act is to secure industrial peace and harmony by providing machinery and procedure for the investigation and settlement of industrial disputes by negotiations. Various studies indicate that Indian labor laws are highly protective of labor, and labor markets are relatively inflexible. These laws apply only to the organized sector. Consequently, these laws have restricted labor mobility, have led to capital-intensive methods in the organized sector and adversely affected the sectors long-run demand for labor. Labor being a subject in the concurrent list, State-level labor regulations are also an important determinant of industrial performance. Evidence suggests that States, which have enacted more pro-worker regulations, have lost out on industrial production in general. -- (Ministry of Finance, 2006, p. 209 The Industrial Disputes Act (IDA) of 1947. Particular attention has been paid to its Chapter V-B, introduced by an amendment in 1976, which required firms employing 300 or more workers to obtain government permission for layoffs, retrenchments and closures. A further amendment in 1982 (which took effect in 1984) expanded its ambit by reducing the threshold to 100 workers. It is argued that since permission is difficult to obtain, employers are reluctant to hire workers whom they cannot easily get rid of. Job security laws thus protect a tiny minority of workers in the organized sector and prevent the expansion of industrial employment that could benefit the mass of workers outside. It is also argued that the restriction on retrenchment has adversely affected workplace discipline, while the threshold set at 100 has discouraged factories from expanding to economic scales of production, thereby harming productivity. Several other sections of the IDA allegedly have similar effects, because they increase workers bargaining strength and thereby raise labor costs either directly through wages or indirectly by inhibiting work reorganization in response to changes in demand and technology. The Act also lays down The provision for payment of compensation to the workman on account of closure or lay off or retrenchment. The procedure for prior permission of appropriate Government for laying off or retrenching the workers or closing down industrial establishments Unfair labor practices on part of an employer or a trade union or workers.

Applicability The Industrial Disputes Act extends to whole of India and applies to every industrial establishment carrying on any business, trade, manufacture or distribution of goods and services irrespective of the number of workmen employed therein. Every person employed in an establishment for hire or reward including contract labor, apprentices and part time employees to do any manual, clerical, skilled, unskilled, technical, operational or supervisory work, is covered by the Act. This Act though does not apply to persons mainly in managerial or administrative capacity, persons engaged in a supervisory capacity and drawing > 10,000 p.m or executing managerial functions and persons subject to Army Act, Air Force and Navy Act or those in police service or officer or employee of a prison.

Important Definitions

Section 2A : Appropriate Government Section 2BB: Banking company Section 2G : Employer Section 2J : Industry Section 2K : Industrial dispute Section 2A : Industrial dispute between individual and employer Section 2KA: Industrial establishment or undertaking Section 2KK: Insurance company Section 2LA: Major port Section 2LB: Mine Section 2N : Public utility service Section 2O : Railway company Section 2RR: Wages Section 2S : Workmen (Including an Apprentice)

Contract Labor (Regulation & Abolition) Act, 1970

http://pblabor.gov.in/pdf/acts_rules/contract_labor_regulation_and_abolition_act_1970.pdf

Module IV: Trade Unions Trade Unions: Meaning, Functions, Problems, Trade Unions Act, 1926 A trade union (British English), labor union (Canadian English) or labor union (American English) is an organization of workers who have banded together to achieve common goals such as protecting the integrity of its trade, achieving higher pay, increasing the number of employees an employer hires, and better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members (rank and file members) and negotiates labor contracts (collective bargaining) with employers. The most common purpose of these associations or unions is "maintaining or improving the conditions of their employment". This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers, benefits, workplace safety and policies. The agreements negotiated by the union leaders are binding on the rank and file members and the employer and in some cases on other non-member workers. Originating in Europe, trade unions became popular in many countries during the Industrial Revolution, when the lack of skill necessary to perform most jobs shifted employment bargaining power almost completely to the employers' side, causing many workers to be mistreated and underpaid. Trade union organisations may be composed of individual workers, professionals, past workers, students, apprentices and/or the unemployed. Over the last three hundred years, trade unions have developed into a number of forms. Aside from collective bargaining, activities vary, but may include: Provision of benefits to members: Early trade unions, like Friendly Societies, often provided a range of benefits to insure members against unemployment, ill health, old age and funeral expenses. In many developed countries, these functions have been assumed by the state; however, the provision of professional training, legal advice and representation for members is still an important benefit of trade union membership. Industrial action: Trade unions may enforce strikes or resistance to lockouts in furtherance of particular goals. Political activity: Trade unions may promote legislation favourable to the interests of their members or workers as a whole. To this end they may pursue campaigns, undertake lobbying, or financially support individual candidates or parties (such as the Labor Party in Britain) for public

office. In some countries (e.g., the Nordic countries and the Philippines), trade unions may be invited to participate in government hearings about educational or other labor market reforms.

Functions There are main 9 functions of a trade union, which are as follow: Collective bargaining with the management to settle terms and conditions of employment. Advise the management on personnel policies and practices. Taking up the individual and collective grievances of the workers with the management. Work for achieving better say of workers in the management of affairs of the enterprise which influence the lives of the workers directly. Organising demonstrations, strikes, etc, to press demands of workers. Education of workers and their children. Welfare and recreational activities for their members. Representing of workers in various national and international forums. Securing legislative protection for workers from the government. Defending their employee rights and jobs Securing improvements in their working conditions, including hours of work and health safety at work Improving their pay and other benefits, including holiday entitlements Encouraging firms to increase worker participation in business decision making Improving sick pay, pensions and industrial injury benefits Developing and protecting the skills of union members

Problems Those are some advantages of trade union: 1) Its protecting the interest of its members 2) Its build the relationship between the employee and employer 3) Its organize social , recreational and culture activities among the members Those are some disadvantages of trade union: 1) If labor markets are competitive, higher wages will cause unemployment. Trades unions can cause wages to go above equilibrium through the threat of strikes etc. However when the wage is above the equilibrium it will cause a fall in employment.

2) Trades unions only consider the needs of its members; they often ignore the difficulty of those excluded from the labor markets, e.g. The unemployed. If unions go on strike and work unproductively (work to rule) it can lead to lost sales and output. Therefore their company may go out of business and be unable to employ workers at all. 3) If unions become too powerful they can reduced for higher wages, above the rate of inflation. If this occurs it may contribute to general inflation. Powerful trades unions were a significant cause of the UK's inflation rate of 27% in 1979. Labor Strikes A powerful bargaining tool of labor unions is a labor strike. Stopping productivity can be a nightmare for employers. For workers, there is no guarantee that the strike will work to produce the benefits the union is seeking. There is no compensation for the loss of wages while a worker is on strike. Labor unions cannot guarantee your job if you strike. Your employer is not required by law to hire you back once the strike is over. He can choose instead to retain the worker that he hired to take your place. If this happens, your only hope of retaining your position is to be called back by your employer if that position becomes vacant again. While unions are known for providing job security, you don't enjoy security in the event of a strike. Incentives In a company with union representation, promotions and pay are largely determined by seniority. Employers have few options available to motivate their workforce to work harder, produce more and suggest creative solutions to the problems faced by the business. In fact, unions may put pressure on employee whose production is more than the rest of the workforce. The union may see this as conduct detrimental to the other union members. Dues If you work at a union establishment, you are usually required to pay union dues. These dues are deducted automatically from each paycheck. Even if you choose not to be part of the labor union, you are often not exempt from paying these dues out of your wages. If you disagree with the decisions of the union, you still must pay for the representation. Majority Rules In a union workplace, the majority makes decisions for the entire workforce. If you disagree with the decision of the majority, you have no voice. Union representation can be a powerful force for change in favor of a company's employees, but that powerful force effects change in the direction the majority wants

Competition Unions can inhibit the ability of a company to remain competitive. Union wages are often much larger than those of non-union workers. This causes the price of goods produced by union workers to be higher than the competition. Also, productivity is not rewarded or encouraged by a union structure. Less productivity reduces the ability of a company to compete for business. Trade Unions Act, 1926
http://pblabor.gov.in/pdf/acts_rules/trade_unions_act_1926.pdf

Module V: Employee Benefits and Social Security related laws Minimum Wages Act, 1948, Payment of Wages Act 1936, Equal Remuneration Act 1976, Payment of Bonus Act 1965. Payment of Gratuity Act, 1972: Provident Fund Act 1952, Workmens Compensation Act 1923, E.S.I.C. Act, 1948, Maternity Benefit Act 1961.