sip report it is useful

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Detailed Synopsis On Issues Concerning Industrial Relations And

Employment Laws

Report

By

Archana Viswanath (PGDM: 12008)

Work Carried at SOS Placement Services, Mysore

Submitted in partial fulfilment of the requirement of

Summer Internship Programme

Under the Supervision

of MrJ.Purushotham

Advocate and Legal Adviser, SOS Placement Services

Submitted on: 24/June/2013

SDM Institute for Management Development

Mysore, Karnataka, India

(May 2013)


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SDM Institute for Management Development, Mysore

CERTIFICATE


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CERTIFICATE

This is to certify that Roll No 12008, Ms Archana Viswanath of PGDM Batch 2012-2014

has satisfactorily completed Summer Internship Project titled Detailed Synopsys on Issues

Concerning Industrial Relations and Employment Laws,

At M/S SOS Placement Services, Located at Saraswathipuram, Mysore, from10/April/2103

to 31/May/2013 to partially fulfil the requirements of the PGDM program under my

guidance.

Signature: Date:

Name:

Designation:


Institutional Stamp


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ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and sincere regards to my guide

Mr.J.Purushotham, SOS Placement and Management Services, Mysore, to have given me the

opportunity to do my Internship in their esteemed organization. He has guided me in every

step right from explaining the meaning and significance of Industrial Relations and

Employment Laws to practically showing how the disputes are handled on day to day basis in

Industries of course with the guidance of the consultancy. Disputes are handled and settled

before Labour and Conciliation Officers and the Disputes adjudicated by Labour Courts and

Tribunals. The cases are handled and disputes are settled at the Labour Court, Labour Office.

I would like to extend my deep regards and sincere appreciation to Mrs Anuradha, Mr

Gopinath, Mr Lingaraj, Ms Mohana and the entire team for their constant guidance and

encouragement throughout the course of this project work. This endeavour would remain

incomplete, had it not been the generosity and guidance provided by everybody at SOS

Placement Services, which is a division of J.Purushotham and Associates.

I extend my sincere thanks and gratitude to Prof.S.N.Prasad, the internal faculty guide

of SDMIMD, Mysore for providing me with constant guidance, feedback and support for

efficient execution of the project. This opportunity has been a great learning experience and

would not have been possible without the support extended by the management of SDMIMD.

I take this opportunity to express my love and affection towards my family, who have

always been supportive and highly encouraging.

Archana Viswanath


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Executive Summary

Dissertation Title: Detailed Synopsys On Issues Concerning Industrial

Relations And Labour Laws

Corporate Guide: J.Purushotham

Name of the Student: Archana Viswanath

PGDM No.: 12008

The prime importance of Industrial Relations is to secure and safeguard the interest of

workers and the management by securing the highest levels of mutual understanding and

goodwill among all the sections of the Industry to maintain harmonious relations, which is of

utmost importance for achieving high productivity and to improve the efficiency of all. The

consequences of bad Industrial Relations would lead to Industrial Disputes like strikes,

lockouts, dismissal, absenteeism, misappropriation, decreased productivity and the like.

In this project report, mainly, cases related to Industrial Relations and Labour Laws

(which is now called Employment Laws) of various industries are covered, wherein different

aspects like the main cause for dispute, parties involved in the dispute, complaints launched,

objections raised by the opposition party, dispute resolution procedure followed by settlement

and adjudication by the Conciliation Officers and Honble Labour Courts and Industrial

Tribunals, Finally, The judgement provided by the Honble Labour Courts or Industrial

Tribunal are dealt. Different provisions like Employees Provident Fund and Miscellaneous

Provisions Act, Employees State Insurance Act, Industrial Disputes Act and Payment of

Wages Act, Industrial Employment (standing Order) Act are the main ones that have been

covered. Apart from this, statutory compliances, inspection from the labour department and

compliances reports are also involved


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The study has helped to a great extent in understanding various problems faced by

Industries, steps taken by the management and strategies implemented as advised by the legal

consultants, in order to solve the same. The information provided in this report is the basic

concepts what an HR manager should know.

Signature of the Student Signature of the Supervisor

Archana Viswanath J.Purushotham

Advocate and Legal Consultant,

SOS Placement Services, Mysore


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A Note by Mahatma Gandhiji

As a student of Human Resource Management, I feel the message given by Gandhiji to the

employers and employees ofone of the TATA Industries in Jamshedpur on his visit should be

followed everywhere in order to maintain good Industrial Relations. It is as below-

To the Employers-

The love and good behaviour which is the best way to keep the workers in control can stop

theft of work. To keep workers under full control, do justice to them, talk to them as your

own children. If they are treated in this fashion, they wont be unfaithful.

To the Employees-

If the workers want to improve their conditions, with the love of their employers, they

should become more reliable, give up their voices, become industrious, develop ability and

should make use of sense of reason. By sense of reason, I mean they should be courteous,

disciplined, and ever willing to carry out the orders.

These two messages conveyed by Gandhiji are given prominence at SOS Placement

Services and the same are conveyed to all the HR Managers of different companies and

industries who come up with the various issues and disputes being faced by them almost

every day.


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Table of Contents

ExecutiveSummary ......................................................................................................................... 5

A Note by Mahatma Gandhiji ......................................................................................................... 7

List of Abbreviations ...................................................................................................................... 9

List of Tables ................................................................................................................................ 10

Disclaimer ..................................................................................................................................... 10

About the Organization: SOS Placement Services ........................................................................ 11

Project Overview ........................................................................................................................... 12

Objectives of the Study ................................................................................................................. 12

An overview of Industrial Relations and Labour Laws ................................................................ 13

Legal Letters drafted during the due course of time ..................................................................... 20

Letter 1: Order of Suspension ....................................................................................................... 20Letter 2: Legal Notice ................................................................................................................... 21

Letter 3: Notice of Recall Letter ................................................................................................... 22

Letter 4: Suspension Pending Enquiry .......................................................................................... 23

Letter 5: Interest for Delayed Payment of ESI .............................................................................. 24

Letter 6: Warning memo and Charge sheet................................................................................... 27

Letter 7: Legal Opinion ................................................................................................................. 29

Letter 8: Interlocutory Application ............................................................................................... 30

Draft 1: Memorandum of Understanding ...................................................................................... 32

Index of Standing Orders .............................................................................................................. 36

CASES DEALT DURING THE DUE COURSE OF TIME ........................................................ 38

CASE 1: PAYMENT OF WAGES ACT ...................................................................................... 38

CASE 2: PAYMENT OF WAGES ACT ...................................................................................... 42

CASE 3: INDUSTRIAL DISPUTES ACT ................................................................................... 46

CASE 4: INDUSTRIAL DISPUTES ACT ................................................................................... 52

Statutory Compliance at XYZ....................................................................................................... 80

Learning and Recommendations ................................................................................................... 83

Bibliography .................................................................................................................................. 86


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List of Abbreviations

1. HR Human Resources2.

AIRAll India Reporter

3. LLR Labour Law Reporter4. LLJ Labour Law Journal5. TUA Trade union Act6. IDA Industrial Dispute Act7. SCC Supreme Court Cases8. FLR Factories and Labour Reports9. LLN Labour Law Notes10. GS General Secretary11. COD Charter of Demands12. BIFR Board for Industrial and Financial Reconstruction13. SCR Supreme Court Records14. JT Judgement Today15. IA Interlocutory Application16. CPC Civil Procedure Code17. ILO International Labour Organisation18. AITUC All India Trade Union Congress19. ESI Employees State Insurance20. PF Provident Fund21. MoU Memorandum of Understanding22. CLR Corporate Law Reporter23. DA Dearness Allowance


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List of Tables

Disclaimer

This project report/dissertation has been prepared by Archana Viswanath, SDMIMD, PGDM

No: 12008, as an intern under theInternship Programme of SOS Placement Services for

academic purposes only. The views expressed in the report are personal to the intern and do

not necessarily reflect the view of the organization or any of its staff or personnel and do not

bind the organization in any manner. This report does not in any manner represent itself as a

means of advertisement of SOS Placement Services. The names of Industries which have

been studied regarding Labour Law issues (live cases) have been changed in order to

maintain the confidentiality of the respective industries.

Sl. No Description of the tables

1 Offences and Penalties with respect to ID Act

2 Format of Form T

33 major aspects checked during Statutory Compliance

Auditing


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About the Organization: SOS Placement Services

SOS Placement and Management Services, a division of J.Purushotham and Associates is an

Organization located in Saraswathipuram, Mysore. It is an Organization which consists of

Advocates who specialize in Industrial Relations and Employment Laws. The Organization is

headed by Mr.J.Purushotham, an Advocate and Legal Consultant, who has been practicing

since 22 years. He is the Head of J. Purushotham& Associates, President of MINDMASS

(Mysore Industries Management Association), Visiting Faculty at Bahadur Institute of

Management Sciences, Mysore, VidyaVikas Educational Trust, Mysore, JSS-CMS, Mysore,

Vivekananda Institute of Indian Sciences, Mysore, etc. He was recently invited by Cornell

University, USA to give a lecture on Industrial and Labour Relations. He is a Rotarian and

Paul Harris Fellow who has involved himself in many philanthropic activities, a member of

National institute of Personnel Management Mysore Chapter, Mysore, he was a member:

elected by Government of Karnataka to representEmployers to the Contract Labour Advisory

Board, Bangalore, nominated by Ministry of Labour, Government of Karnataka as a member

of Employees State Insurance Corporation Hospital Development Committee, Mysore.

MINDMASS is an Association of Employers, which has been working to bridge the

gap between Employers and Employees. Mr Purushothamis the Director and has been

advising Employers on various aspects of Laws, Industrial Relations, Human Relations and

Collective Bargaining. He has been conducting many seminars and workshops under

MINDMASS in order to create awareness. He has been giving lectures on various topics such

as Employment Laws applicable to Information Technology and IT Enabled Service

Industries, Employment Laws applicable Industries, Hotels, Hospitals and Factories, to

mention a few. The Advocates at SOS Placement Services are the Legal Advisers to around

50 companies which include, Infosys, SPI, Jubilant Life Sciences Ltd, TVS, Nestle, Apollo

Hospitals, AT&S, Toyota, Meritor HVS,Vikram Hospital etc.


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They advise the companies with respect to cases related to Industrial Relations and Labour

Laws. They are even the official Statutory Compliance Auditors on Labour Laws.

Project Overview

The Project has been carried out at SOS Placement Services, a division of J.Purushotham and

Associates Mysore, under the guidance of Mr J.Purushotham, who is an advocate and legal

consultant to around 50 companies. The Project report includes various live cases which have

been analysed and the judgments of which have been pending under the Honble Labour

Court, Industrial Tribunal and Civil Courts; drafts of Dismissal letter, Objection statement,

Charge Sheet, Legal Opinion, Injunction, Interlocutory Application etc., citations to various

casesand a Memorandum of Understanding. The Provisions covered include Industrial

Disputes Act of 1947 and Payment of Wages Act of 1936.

Objectives of the Study

To understand Labour Relations of various Industries, Factories, Hospitals andHotels.

To understand how to handle live cases brought forward by the Companies withregard to Industrial Relations and Labour Laws.

To understand Dispute settlement procedure of different Companies and Industries. To understand HR related issues being faced by workers with regard to payment of

wages, overtime wages, gratuity, bonus, dearness allowance and so on at the time of

HR auditing.

To understand how to draft Memorandum of Understanding, Charge Sheet andDismissal letter.


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An overview of Industrial Relations and Labour Laws

Problems of human relationship arising from the sake of services for a wage and working on

the premises of employers and under their control form the subject matter of Industrial

Relations.

-Dale Yoder

Industrial Relations deal with the problems which arise in the context of human relationships

when the workers submit themselves to being controlled by the employers. The above given

definition is significant, for it does not talk only of adjustment and cooperation between the

parties but rather draws attention to the problems which arise due to conflict of interests

between the workers and the employers. (B.D.Singh)

Industrial relations in India can be called the by-product of Industrial Revolution

which resulted from the excessive exploitation of workers by the owners of the Industries,

which was a master-slave relationship. The First World War is the first milestone enroute to

Industrial elation in India. It was only then that the workers realized their importance that

unless they produced goods required for wars, the wars could not be fought. The First World

War therefore led to a lot of events arising during that period. A few of the events include the

following:

Establishment of ILO in 1919 and the influence of its conventions andrecommendations

Establishment of AITUC in 1920 The Indian Trade Union Act, 1926 The Trade Dispute Act 1929 Formation of Royal Commission on labour, 1929-1931, which made a comprehensive

study of Indian Labour problems.(B.D.Singh)


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Labour law which is also known as employment law is the body of laws, administrative

rulings and precedents which address the legal rights of, and restrictions on, working people

and employers of the organizations. As such, it mediates many aspects of the relationship

between trade unions, employers and employees. In other words, Labour law defines the

rights and obligations as workers, union members and employers in the workplace. Labour

legislations can be broadly categorised as legislation for Industrial Relations and working

conditions, for wages and for social security.

The salient features of some of the important legislations are given below

1. Unfai r L abour Practices:Section 2(ra) of ID Act explains Unfair Labour Practices as follows:

On part of the employers, to interfere with, restrain from, or coerce theworkmen in the exercise of their right to organize, form, join or assist a trade

union or to engage in concerted activities for the purpose of Collective

Bargaining or other mutual aid.

To dominate, interfere with or contribute support, financial or otherwise to anytrade union.

Discrimination of workmen. To abolish the work of a regular nature being done by the workmen, and to

give such work to contractors as a measure of breaking the strike.

To transfer a workman mala fide from one place to another. To show favouritism or partiality to one set of workers regardless of the merit,

etc. (S.A.Chari, The Industrial Disputes Act, 1947)


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2. Contract Labour (Regulation and Aboliti on) act, 1970Object of the act: To regulate the employment of contract labour in certain

establishments and to provide for its abolition in certain circumstances and for matters

connected therewith.

Applicability of the act, section 7: Every establishment in which 20 or more workmen

are employed or were employed on any day preceding 12 months as contract labour.

Every contractor who employs or who employed on any day of the preceding 12

months, 20 or more workmen.

Welfare measures to be taken by the Contractor, Section 16, 17: canteen shall be

provided where there are 100 or more workmen. First aid facilities will be provided,

drinking water, latrines and washing facilities also will be provided.

Registers to be maintained by the Contractor: Every Contractor shall have to maintain

Muster Roll, Register of Wages, Register of Deductions, Register of Overtime,

Register of Fines and Wage Slips.

Punishment, Section 22, 23: For obstructing the inspector or failing to produce

register etc., 3 months imprisonment or fine up to Rs.500 or both. For violation of the

provisions of Act or rules, 3 months imprisonment or fine up to Rs.1000.

3.Employees Provident Fund and Misc. Provisions Act, 1952:Eligibility: Any person who is employed for work in an establishment or employed

through contractor in or in connection with the work of an establishment.

Applicability: Every establishment which is a factory engaged in any industry

specified in Schedule 1 where in 20 or more persons are employed. Any other

establishment employing 20 or more persons whom Central Government may, by


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notification, specify in this behalf. Any establishment employing even less than 20

persons can be covered voluntarily under Section 1 (4) of the Act.

Benefits of the Act: Employees covered under the Act enjoy a benefit of social

security in the form of unattachable and unwithdrawablefinance which employees and

employers both contribute. The total contribution from both the sides is 25.5%. This

sum is payable normally on retirement or death. Other benefits include Employees

Pension Scheme and Employees Deposit Linked Insurance Scheme.

Penal Provisions: Defaults by employer in paying contributions or inspection/

administrative charges attract imprisonment up to 3 years and a fine up to Rs. 10,000.

4.Employees State Insurance Act, 1948:Applicability: This Act is applicable in factories using power and employing 10 or

more persons and to non-power using manufacturing units and establishments

employing 20 or more persons up to Rs.15,000 per month. The same has been

extended to shops, hotels, roads, motor transport undertakings and hospitals.

Rate of contribution: Employers would be contributing 4.75% and Employees

would be contributing 1.75%.

Benefits to the Employees: Medical sickness, extended sickness for certain benefits,

funeral expenses, rehabilitation allowances and medical benefits to insured person and

his spouse are the medical benefits the employees would be getting.

Penalties: Different punishments have been prescribed for different types of offences

in terms of Section 85: 6 months imprisonment and fine Rs. 5000. Actions also can

be taken under Section 406, wherein an employer deducts contributions from the


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wages of his employees but does not pay the same to the corporation which amounts

to criminal breach of trust.

5. Factories Act, 1948:Applicability, Section 2 (ii): Any premises whereon 10 or more persons with the aid

of power or 20 or more workers are/were without aid of power working on any day

preceding 12 months, wherein manufacturing process is being carried on.

Safety Measures, Section 21 to 28: Fencing of Machinery, Work on or near machinery

in motion, prohibition of employing young persons, striking gear and devices for

cutting off power, self-acting machines, hoists and lifts and casing of new machinery.

Welfare Measures, Section 42 to 49: Washing facilities, facilities for storing clothes

and drying, facilities for sitting, first-aid boxes, shelters, rest rooms, lunch rooms

where there are 150 or more workers and crches where there are more than 30

women working.

Penalties, Section 92 to 106A: The penalty for contravention of the provisions of the

Act or rules will account to imprisonment up to 2 years or fine up to Rs. 100.000 or

both and on continuation of contravention it would be Rs. 1000 per day.

6. I ndustr ial Di sputes Act, 1947:Object of the Act: Provisions for investigation and settlement of Industrial Disputes and

for certain other purposes.

Power of Labour Courts and Tribunals, Section 11A: Labour Court/ Industrial Tribunal

can modify the punishment of dismissal or discharge of workmen and give appropriate

relief including reinstatement.

Offences and Penalties, Section 25 to 31:


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Sections Offences Punishments

25-U Committing unfair labour practicesImprisonment up to 6 months or fine

up to Rs.3000

26 Illegal strikes and lock-outsImprisonment up to one month or fine

up to Rs. 1000 in both the cases

27Instigation for illegal strike or lock-

outs

Imprisonment up to 6 months or fine

up to Rs. 1000

28Giving financial aid to illegal strikes

or lock-outs

Imprisonment up to 6 months or fine

up to Rs. 1000

29 Breach of settlement/ awardImprisonment up to 6 months or fine

up to Rs 200

30 Disclosing confidential informationImprisonment up to 6 months or fine

up to Rs 1000

31 Closure without 60 days noticeImprisonment up to 6 months or fine

up to Rs 5000

Table 1

Lay-off Compensation, Section 25-C: Payment of wages except for intervening weekly

holiday compensation 50% of total or basic wages and DA for a period of lay-off up to

maximum 45 days in a year.

7. Payment of Wages Act, 1936:Object of the Act: To regulate the payment of wages of certain classes of employed

persons.

Applicability of the Act: Factory, industry, Air transport services, Dock, Wharf,

Mines, Plantations and Workshops.

Coverage of Employees: Drawing average wage up to Rs.10,000 per month.


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Time of payment of wages: When less than 1000 persons are employed, payment shall

be made before the 7th day of the month expires. When more than 1000 persons are

employed, payment will have to be made before the 10th day of the month expires.

Fines as prescribed: Fines are not to be imposed unless the employer is given an

opportunity to provide the show cause notice to the employee and the same has to be

recorded in the register.

Deductions made for damage or loss: Deductions in the salary of an employee will be

made for his/her negligence resulting to loss and a show cause notice has to be given

to the employee.

Deduction for absence from duties for unauthorised absence: When 10 or more

people become absent without a reasonable cause, deduction of wages up to 8 days

will be made.

(H.L.Kumar)


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Legal Letters drafted during the due course of time

Letter 1: Order of Suspension

To, Date: 29-04-2013

Mr RV

S/O MNO

No. 000, Government Hospital Road, XYZ,

Mysore Taluk.

ORDER OF SUSPENSION

You have indulged in serious act of misconducts for which the management has issued a

charge sheet cum show cause notice dated 04-04-2013. You have offered your explanation

dated 17-04-2013, where in you have admitted that you have remained absent, but due to ill

health. You have failed to submit any medical certificate to support your explanation and

hence the explanation dated 17-04-2013, offered by you is not satisfactory and acceptable.

However, the management has decided to give one more opportunity to defend the charges

and decided to conduct a domestic enquiry on the charges levelled against you, vide Charge

Sheet and Show Cause Notice dated 04-04-2013.

Meanwhile, the management feels that it is not possible to function peacefully with

your presence as you are involving yourself in sabotage after the issuance of charge sheet

cum show cause notice, hence, the management has decided to keep you under suspension,

pending enquiry.

Notice of enquiry will be issued to the above mentioned address. Please note that you

are eligible for subsistence allowance as per the law.

For ABC Ltd.,

Authorised Signature


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Letter 2: Legal Notice

NOTICE

To, Date: 18-04-2013

All the concerned workers who are in the second shift of this 18 th day of April 2013.

SUB: L egal Notice

It has come to the notice of management that the workers in the second shift have reported to

work at around 2pm by signing at the gate and again walked out of the factory at 2.30pm and

stayed outside the factory building, but inside the compound for the reasons best known to

them and thereby resorted to an illegal strike. Though the management has informed all the

concerned workers to report for work, the concerned workers failed to report for work.

Thereby, have gone on an illegal strike.

Please note that you will not be eligible for wages for the period of illegal

strike as per the dicta of Supreme Court on the basis of No Work, No Wages.

For ABC Co Ltd

.

Authorised Signature


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Letter 3: Notice of Recall Letter

Date: 26.04.2013

NOTICE

To,

Mr. VSL

S/O Mr. STU,

ThandavapuraPost,MysoreDIST

You have been working with our Company Management as a Carpenter vide

Employee ID No: 1029. You have been remaining absent continuously since 05.12.2011.The

Management Company had issued recall letters dated 08.12.2011 and 19.01.2012 asking you

to report for work immediately failing which your name will be removed from the Company

Rules. The said post returned to the Management Company with an endorsement LEFT

WITHOUT INFORMATION, RETURNED TO SENDER

Therefore Management Company is constrained to issue this final recall notice. Hence

you are hereby directed to come and report for duty within 2 days from the publication of this

notice failing which your name will be removed from the rules of the Company Management,

as if you are not interested in working with the Management Company and you have lost lien

on your Employment.

.

Personnel Manager

TGN Ltd


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Letter 4: Suspension Pending Enquiry

To, 19/04/2013

Mr. KIB, S/o. (Late) BVJ

EmpID: EF000

Ballenahalli (V0 & (Po), Srirangapatna (tq)

MandyaDist

Dear Mr. KIB,

SUB: SUSPENSION PENDI NG ENQUIRY

It has come to the notice of the Management that you are involved in serious acts of

misconducts, which warrants initiation of disciplinary proceedings. Management feels that

they cannot function peacefully with your presence in the industry. Hence Management has

decided you to suspend you from your services. Therefore you are hereby suspended pending

enquiry with immediate effect.

You are required to sign the time register, which would be kept at the Security in

between and A.M on all working days. You are hereby informed that, you are

entitled for subsistence allowance as per the Law for the period of suspension.

Detailed Charge Sheet cum Show Cause Notice will be sent to you to your last known

address as per our records.

ForM/s PTI Ltd.,

.

Authorized signatory


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Letter 5: Interest for Delayed Payment of ESI

Date:

To

The Deputy Director

Sub Regional Office

Employees State Insurance Corporation,

I Floor, ESI Dispensary Building, Bademakan Extension,

Bangalore-Mysore Road

Sir,

Sub: Compliance under the Provision of ESI Act 1948-Interest

on delayed payment.

Ref : Your Office Letter No. 00/00/0000000/000/INS/SRD/

MYS dated 15/02/2013

We refer to your office letter cited above demanding us to pay interest amount of

Rs.66,475/- against delayed payment of ESI Contributions. In connection to the above we

would like to submit as under.

Our factory is one of the leading manufacturers of two wheeler and three wheeler

vehicles in India. Our Company has got Units in various parts of the country and our

Company is 100% compliant of Labour Legislations.

Our Company has decided to start a manufacturing Unit at Mysore and has purchased

land at XYZ, and got it converted for the purpose of Industry and started manufacturing

activity in the year. At the time of starting the manufacturing activities in XYZ our

Company has obtained licenses, permissions from various Government bodies required under

the Law of the land and also obtained Code No. under EPF and MP Act. Since then our

Company has been complying with all the statues meticulously.


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In order to provide ESI facilities and benefits to all the eligible workers we have

approached the ESI Corporation at Bangalore who in turn has advised the Company that the

Survey No of XYZ village has not been covered or notified by the ESI Corporati on

for the purpose of applicability of ESI Act.

Hence the Management has decided to cover all its Employees under ..

Medical policy. Our factory at XYZ was surveyed by your good office on 26.04.2011 for

implementation of ESI Scheme.

We were not aware about the Notification on implementation of ESI Scheme to HIJ

area. When we checked up with ESI office on 10th September 2011 (10.09.2011) we learnt

about implementation of ESI Scheme in HIJ area w.e.f. 01.07.2011. Same day, we

approached ESI Branch Office Mysore, requested the Branch Manager and collected a copy

of Notification dated 27.07.2011. Till that date, we had not received any information about

implementation of ESI Scheme to the property bearing Survey Nos. situated

at XYZ, ABC.

Based on the Notification copy we collected on 10.09.2011, we immediately started

working towards compliance of the Act by collection of details towards registering of our

establishment under this Act. We submitted application in Form 01 on 07.10.2011 for

registration of Establishment. On 21.11.2011 we received C-11 Notification from your office

dated 16.11.2011.

On receipt of Login ID and Password, we started registering the details of our

employees in ESIC portal. We have taken up the activity of registration of all eligible

employees on war-footing basis and we hope your good office appreciates that we completed

registering of around 1673 employees despite technical problems we faced. (like server/portal

related issues).

After registering all eligible employees, we made recovery of Employees

contribution from employees November month salary for the months from July 2011 to

November 2011. The contributions for the months from July 2011 to November 2011

(5months) were remitted between 22.12.2011 and 26.12.2011.


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We would like to mention that as an Employer we have taken all steps possible

towards speedy completion of registration and payment of contribution towards ESI and

compliance to the Act. However, due to the volume of work and administrative reasons, there

has been a delay in payment for bona-fide reasons. The delay in making the payment is not

intentional on the part of the Management but for the reasons stated above.

Therefore, we request your good office to condone the delay, if any and waive of Rs.

66,475/- imposed on us as interest, and oblige.

The Management fervently hope that your good office appreciates that the work

carried out by the Management in complying with ESI Act.

For SHI Motor Company

SPO

General Manager

Employee Resource Management


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Letter 6: Warning memo and Charge sheet

To,

Mr. KUB,

EmpID : EF000

S/o. (Late) BHI

Ballenahalli (V0 & (Po)

MandyaDist

Dear Mr. KUB,

WARNING MEMO

Ref: Suspension pending enquiry dated 17.12.2012

Your letter dated

You Mr KUB have been working with the Management as Senior Supervisor since

.

On , you met with an accident in the factory premises in mishandling the

machine, wherein you sustained injury on . Immediately Management admitted you

to Hospital and you got discharged from the Hospital on the next day itself i.e., and

you were on medical leave for days i.e., from to .

And whereas on . when you came to report for duty, Mr , HR,

asked you to get the fitness certificate from the Hospital. But you have submitted the fitness

certificate of your father by name .. When Mr , HR, questioned you on the same

you have abused and misbehaved with him and stated to him it is your duty to get the fitness

certificate. Later Mr., HR, brought this to the notice of Mr JNK, General Manager.

When General Manager questioned you, you have misbehaved with him also and have

abused him in filthy language.

Left with no other alternative Management issued you suspension order pending

enquiry on 17.12.2012. On the same day at around p.m. you have given an letterapologizing Mr..., HR and Mr. JNK, General Manager.


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Though the above act of yours amounts to serious misconducts, which warrants

initiation of appropriate disciplinary action and deterrent punishment, the Management by

keeping in mind the relationship that has with you, has decided to take a lenient view this

time by warning you seriously.

Therefore, you are hereby seriously warned. Incase you continue to do such acts

which amounts to misconduct as per the Service Rules applicable to the Hospital, the

Management will have to initiate appropriate action against you which please note.

For M/s PTILtd.,

Authorized signatory


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Letter 7: Legal Opinion

To,

The Managing Director

KSFD

Number 37/B 1st stage Industrial Estate, JIK

LMN

Dear Sir,

SUBJECT: LEGAL OPINION WITH REGARD TO THE ORDER PASSED BY THE

AUTHORITY UNDER THE PAYMENT OF WAGES ACT, MYSORE

I have gone through the orders passed by the authority where in the authority has issued

directions to the management to pay 15 days wages for the month of November as well as

December 2012 and to pay the penalty of Rs.4000, put together Rs.6500. The authority has

also issued a notice; vide dated 26/06/2013, directing the management to deposit the amount

within 30 days.

In my opinion, even though the management has submitted the documentary evidence

to show that Mr.KLM has not worked for 15 days during the months of November 2009 and

December 2009 and thereafter, the order passed by the authority under the Payment of Wages

Act is not maintainable and erroneous. Therefore, is a fit case to prefer an appeal. Further,

this case may have an impact on the other 2 cases which we have won against Mr.KLM

Please feel free to contact me for any more queries.

For JP Associates,

....

J.Purushotham


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Letter 8: Interlocutory Application

BEFORE THE HONBLE INDUSTRIAL TRIBUNAL, MYSORE

REFERENCE NO: 110/2005

1st Party : VidyuthVittaranaGuttigeKarmikara Sangha

V/S

2nd Party : M/S XXXXX and Others

OBJECTION STATEMEMNT FILED BY THE 2nd PARTY

It is respectfully submitted as follows.

At the outset application filed by the applicant is not maintainable either in law or in facts and

the same is liable to be dismissed.

The above case was set out for the evidence of parties. The first party has already

adduced evidence and the 2nd party has cross examined the 1st party. The 2nd party has also

adduced its evidence and the 2nd

party management witness was also cross examined by the

1st party counsel. In the cross examination of the 2nd party, the 1st party could not illicit

favourable answers. Hence, with an ulterior motive, the 1st party has maintained this

application. In the Industrial Jurisprudence, filing interrogatories is unheard of, that to after

the evidence of both the parties is over. The application has been filed with an ulterior motive

and hence the same is not maintainable and hence liable to be rejected.

It is further submitted that the reasons given in the Interlocutory Application by the 1st

party for filing of interrogatories are also not proper and valid. Hence, on those grounds, the

application cannot be allowed. The 1st party is trying hard to get information from the 2nd

party by adopting dubious methods. And on that ground also, the application is liable to be

dismissed.


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It is submitted that if the application is allowed, the 2nd party will be put to great

hardship and on the other hand, the 1st party will not be put to any hardship if the application

is not allowed, as the 1st party has already cross examined the management witness.

Order XI rule 2 and 4 of Civil Procedure Code do not give any right to the 1 st party in

order to file interrogatories after the cross examination of the 2nd party is over.

Wherefore, it is humbly prayed that this Honble Court may be pleased to dismiss the

application filed by the 1st party in the interest of justice and equity.

..

Advocate for 2nd party 2nd party

VERIFICATION

All that is stated above is to the best of my knowledge, belief and the information and signed

at Mysore.


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Draft 1: Memorandum of Understanding

HIJK

MYSORE, KARNATAKA

570004

MEMORANDUM OF UNDRSTANDING BETWEEN

HIJK AND THE CONTRACTOR

Background

HIJK is a centre of excellence, established by HIJK Trust to educate the young and create

over time, the most valuable resource of the Country. HIJK is an Institution: HIJK which

defines the scope of various upcoming courses like Retailing, Marketing, Tourism,

Hospitality, Medical Tourism and Hospital Management, which are in utmost demand in the

prevailing economy. The Institution: HIJK aims at providing the most modern educational

facilities to the students by maintaining culture at the same time.

HIJK has launched many regular programs in collaboration with University of Mysore and

distance learning programs in collaboration with Karnataka State Open University (KSOU)

having its Academic, Administrative and Registered office in Mysore. Within an intensely

competitive environment, the institute has adopted dynamic, global, high quality, creative and

communicative approach in education, as well as research and development.


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Purpose of the Memorandum

The main purpose of this memorandum is to promote, create awareness and educate the

people in small towns and provinces about the Institution: HIJK, HIJK, by erecting

information centres or Kiosks, therefor creating awareness about the very existence of the

Institution: HIJK, the different upcoming courses provided and mainly, the importance of

education, so that the people of rural areas get acquainted about the courses being offered and

the importance of the same. This activity is being taken up so that the people who are

interested can enrol themselves for any of the courses being offered.

Roles and Responsibilities

The roles and responsibilities that are agreed upon are as below. Please note that the

contractor shall engage his own employees to be present at the information centres or the

kiosks.

Contractor

The contractor would install the information centres in all the places as agreed upon,by maintaining a distance of 500 mts between the information centres

That the workmen employed by the contractor are qualified enough to createawareness, as agreed upon

That the workmen employed by the contractor would start creating awareness on theday agreed upon

That the workmen would dedicate to their fullest in promoting the Institute bycreating awareness

The contractor would explain in detail about the courses being offered by the Institute


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The contractor would make note of all the queries and the number of people who visitthe information centres

The contractor would pay salary to all the workmen involved in the promotionalactivity

The contractor would not commit any sort of misconduct which would lead to breachof trust

The contractor would make utilization of the money provided by the Institute for foodand drinking water as well

That there would be atleast 2 workmen at the information centre at any timeI nstitution: HI JK

The Institution: HIJK would provide all the necessary information about the coursesoffered, along with the prospectus

The Institution: HIJK would make full and final settlement to the contractor on time The Institution: HIJK would pay for food and drinking water of the workmen

involved in the promotional activity

The Institution: HIJK would have a supervisor for every 2 information centres inorder to assist the workmen, if needed

The Institution: HIJK would not commit any misconduct which would lead to breachof trust

Legal discretion

The information and documents produced to the Contractor is not to be used under any

circumstance for any purpose other than that of promotion of the Institution: HIJK without

the consent of the authorities in charge, failing to which the Contractor will be held liable

under the Law.


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Voluntary Disassociation

Both the parties have come to an agreement in good faith and it may be noted that either of

the parties is free to disassociate from the agreement at any time, provided, a written notice is

issued to the other party in writing, 30 days prior to the disassociation.

Timeline

This agreement will come into effect from the date on which the signature of both the parties

have been made and will remain in force until either of the parties voluntarily disassociates

by providing a legal notice about the same, as mentioned above or otherwise, will be

terminated after 3 months of the date of commencement of the promotion.

Arbitration

In case of any dispute between HIJK and the contractor, the same shall be refered to the sole

arbitrator at the choice of HIJK. Arbitration proceedings will be ground by Arbitration and

Conciliation Act and the jurisdiction at Mysore.

Amendment

This MoU may be amended at any time during the term by mutual consent

Signed by,

.....

Director/CEO of HIJK Contractor

Dated: .


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Index of Standing Orders

Below is the Index of Standing Orders prepared for one of the leading Kitchen linen

manufacturing industries in Bangalore

1. Application and Commencement2. Recruitment and Employment3. Definitions4. Classification of Workmen5. Proof of Age6. Identity Card7. Entry into the Premises and Exit by certain gates only and search8. Personal property9. Notification of Working Hours and period of wages10.Attendance and Late Coming11.Overtime12.Transfer13.Publication of Notices/ Holidays/ Pay Dates/ General Communication to workmen14.Shift Working15.Payment of Wages16.Leave17.Leave Procedure18.National and Festival Holidays19.Stoppage of Work20.Strikes and Lockouts21.Termination of Services by the management22.Termination of Services by the workers


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23.Payment of Wages/ Salary on Termination/ Registration of Employment24.General Conduct25.Complaints26.Misconduct and Disciplinary action27.Punctuality and Regular Attendance28.Procedures and Punishment in the case of Misconduct29.Services or Communication procedure thereof30.Accidents31.Essential services32.Superannuation33.Stoppage and Shutdown for Catastrophic reasons34.Certificate of Services35.Residential Address36.Display of Standing Orders37.Interpretation of Standing Orders38.Sexual Harassment39.Grievances40.Acceptance of Standing Orders


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CASES DEALT DURING THE DUE COURSE OF TIME

CASE 1: PAYMENT OF WAGES ACT

XYZ PVT LTD

Areas covered in the case include:

1. Petition filed by XYZ Employees Union-Applicant2. Evidence of Respondent with respect to the suit filed by the applicant3. Issues related to Labour Laws identified in the case4. Citations provided5. Judgement

Suit by the Applicant, XYZ Employees Union:

According to the Employees Union, the Management has not paid the wages to the wages to

workers starting from the end of July 2012 till the 13 th of August, which is not permissible

under the Payment of Wages Act of 1936. They even filed a petition against the Management

stating that the management took to an illegal lock-out as well as Unfair Labour Practices

because they did not provide them the wages. The Union has even stated that the Trade

Union has been registered under the Trade Unions Act of 1926, with the registration number

TUA/MYS-07/2012-2013 and that it a legal one.

Further, the Union even states that the Management has lied that they have paid the

wages to the workers, though they have not and even states that no one from the Management

attended the Court hearing even when it was intimated to them, well in advance.

Therefore, in order to prove to the Honble Court that the Management has not paid

the wages to the employees, the Union got the signatures of 171 employees stating that they

were not paid any wages for the above mentioned period.


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Evidence of Respondent filed by XYZ PVT LTD:

The Management has made it clear that XYZ PVT LTD has been registered under the

Factories Act of 1948, Employees State Insurance Act of 1948 and even provides Provident

Funds to the employees. The management in its petition even sates that the Union which has

filed a suit against the management is not recognized under the Trade Unions Act of 1926.

The Management provides details as to why the wages were not paid to the workers,

According to which, The Employees started assembling in groups outside the factory

building and inside the premises and gradually took to an illegal strike as the payment of their

wages was delayed for a couple of days. In the meanwhile, the outraged Employees did not

allow the management to get inside the gate and threatened that they would harm the

management by breaking their bones. The fear phobic management was therefore forced to

resort to a lock out. The management even claimed that they could not pay the wages as they

were not let inside the premises and even claimed that they did not pay the wages to the

workers as they went on an illegal strike, stating No Work, No Wages.

It was even provided by the management that out of the 171 signatures of the workers,

many were fake and that they were not the employees of the factory and that they were the

Contract Labourers, who were being paid by their respective employer and the other workers

who received the wages did not sign the wage register due to fear phobia.In the end, the

management even states that the application filed by the Union is Frivolous, Vexatious and

Misconceived and hence requests the Honble Court to dismiss the issue

Main Issues related to Labour Laws include:

Non Payment of wages Illegal strike by workers Delayed wages


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Refused WagesNon Payment of wages and Illegal strike by workers:

Wages: According to Section 2 of Payment of Wages Act, Wages means all remuneration

(whether by way of salary, allowances, otherwise) expressed in terms of money or capable of

being expressed which would, if the terms of employment, expressed or implied are fulfilled,

be payable to persons employed in his employment or of work done in such employment.

Here, even though the management wanted to pay the wages to the employees, they

started forming groups as stated earlier and henceforth went on an illegal strike by not even

allowing the management to get inside. Hence, According to Industrial Disputes Act, Wages

cannot be paid to the workers for the period of illegal strike resorted by them. It is very clear

that irrespective of whether the strike is legal or illegal, the strikers will be liable to lose their

wages. These have been mentioned very clearly in the principle No Work No

Wages(H.L.Kumar, Industrial Disputes)

Following are the Citations which provide the judgements passed by various High

Courts and the Supreme Court:

No Work, No Wages

1) Deduction of wages for illegal strike period will be on the principle of No Work Nowages.

T.K.Rajan V, Labour Court, Ernakulam, 1996 LLR 1126 (Kerala High Court)2) No wages to employees when they resort to illegal strike

H.M.T Ltd V. H.M.T Head Office Employees Association, (1996) 11 SCC 319:AIR 1997 SC 585: 1997 LLR 758 (Supreme Court)

3) No wages will be payable to the strikers when the strike is illegal


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Bharat Petroleum Corporation Ltd V. Workmen employed in the refinery divisionof Bharat Petroleum Corporation Ltd (2001) 88 FLR 1: (2001)4 LLN 76: 2001

LLR 26 (Bombay High Court)

Delayed wages and Refused wages:

1) Delayed wages not only means wages which are admittedly due, but the payment ofwhich has been postponed on some excuse or the other.

Simplex Manufacturing Co Ltd V.Alla-ud-din Air 1945 Lahore High Court2) The claim for delayed wages and compensation go together. They cannot go alone

Cahar Cha Sharmik Union V. S.K.DuttaAIR 19603) Refused wages are wages for the purpose of recovery of deductions and delay from

the employees

Jiwajirao Sugar Mills Co Ltd. V. Banarjee J.M.1963(1) LLJ 611An injunction was filed at the civil court on the basis of the illegal strike taken to by the

workers.

Judgement:

Pending at the Honble Labour Court, Mysore.


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CASE 2: PAYMENT OF WAGES ACT

Company name: HIJ


1. Application filed by Sri.XYZ (Applicant)2. Evidence of Respondent, The management HIJ for the application filed by the

applicant

3. Issues related to Labour Laws identified in the case4. Citations provided5. Judgement

Application filed by Sri.XYZ (Applicant)

Sri.XYZ is an employee who was working for a reputed silk factory in Bangalore since 1974

and has now been transferred to Mysore, since 1984. The applicant states that he was

working in the Bangalore Factory as a daily rated clerk and when he reported to the Mysore

Factory started working as an Office Assistant. The applicant even states that he has been

working as an Office Assistant, ever since.

According to the application put forward by Sri.XYZ, Sri.XYZ had been orally

instructed to do over time duty from August 2006 to March 2007, as one more employee

Mr.ABC had quit the organisation and Sri XYZ had to do ABCs job as well. The applicant

even states that he was being paid only the refreshment charges of Rs.15 per day which is

very minimal and claims that he was not being paid the Over Time charges for the services

provided by him.


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It has been mentioned in the application filed by XYZ that the other employees in the

same cadre were being the Over Time charges and only he was not being paid anything and

claims that the total Over Time charges he is eligible for , as of now, is Rs.25,433.

Later on, XYZ had given his representation to the respondent management for the payment of

Over Time charges.

It has been stated that the management had endorsed on the backside of the representation

that his request would be considered by the General Manager, but no response was provided.

The General Manager wrote to the Head Office requesting them to accept the request put

forth by XYZ. The Head Office sent a reply stating that the request was examined and that

the same was not approved.

The applicant later on filed another request asking the management to pay Rs.150 as special

allowance to the Over Time worked by him for half a day and this was also rejected by the

management. Hence, the applicant prays to the Honble court to pass an order directing the

management to pay Rs.25, 433 toward Over Time payment.

Evidence of Respondent, The management HIJ for the application filed by the applicant

The management in its objection statement submits that the dispute raised by the Applicant

Sri.XYZ is not maintainable either in Law or in Facts and the same is liable to be dismissed.

According to the Management, the application filed by the respondent is not maintainable as

the relief claimed by the Applicant is very vague and there is no existing right to the applicant

to claim any monetary benefits from the Respondent and hence, the application is liable to be

dismissed.

It has been further submitted that the Applicant has no locus-standi to file application

under Sec 33C (2) of the ID Act claiming certain benefits against this Respondent. The claim


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preferred by the Applicant is required to be determined by the Honble Court on the basis of

its merit, which cannot be done under Sec 33C (2) of the ID Act, which is in nature of

execution proceedings. Hence, the Management claims that the request by the Applicant is

not maintainable under the Law.

Further, the Respondent denies all the averments made by the Applicant in his

application, except the facts that are specifically admitted. The Management even states that

the claim made by the Applicant that he was transferred to Mysore is false and frivolous.

According to the Management, it is true that the Applicant was asked to do Over Time

duty from August 2006 to March 2007 in the place of MR.ABC, who was an Office

Assistant. This Applicant comes under one of the Office Staff category and is not a workman

by himself and hence is not eligible for Over Time wages as sought by him.

The Management in its objection statement, even sates that the Applicant was not paid

Rs.15 and it was false, and that the refreshment charges were paid along with the salary and

hence states that there is no due from the Managements side. It has been stated that in case

of Over Time duty performed by an Office Assistant, he would only be provided with

Compensative Off and that they are also not entitled for Over Time wages.

Therefore, the Management prays that this application is dismissed in Toto and in the

interest of justice and equity.

Main issues related to Labour Laws include,

Over Time Wages: Overtime work means, work done in excess of one hour ofthe prescribed hours of work on any working day and includes work done on

Sundays or any other holidays. When the workers have worked in pursuance of

circular and have agreed to avail 8 alternative holidays in lieu of working on 4-


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weekly off days. Such claims will be dismissed under Section 33C(2) of ID Act.

The Labour Court has no jurisdiction to decide the entitlement of workmen to

overtime wages allowance.

The Labour Court and Single Judge, in one of the cases erred in accepting the

claim for overtime wages, that too under section 33C(2) of the Act, since the

claim was denied by the management and as such the adjudication proceedings

were imperative. (H.L.Kumar, Industrial Disputes , 2010)

Citations

UPSRTC V. State of Uttar Pradesh, 2002 (2) CLR 318: 2002 (93) FLR 410(Allahabad High Court)

Gujarat Water Supply and Sewage Board V. KetanbhaiDinkarayPandya, Amreli,2003 LLR 1118: 2003 (3) CLR 316: 2004 (1) LLJ 114:2003 LLN 1034 (Gujarat

High Court)(indiankanoon.org)

Judgement: Pending under the Honble Labour Court of Mysore.


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CASE 3: INDUSTRIAL DISPUTES ACT

ABC Ltd


1. Petition filed by ABC Employees Union-Applicant

2. Evidence of Respondent with respect to the suit filed by the applicant

3. Issues related to Labour Laws identified in the case

4. Citations provided

5. Judgement

Suit by the Applicant, ABC Employees Union

According to Mr KLM who is an employee and the General Secretary of the ABC Employees

Union, he along with 84 other employees has been terminated from the job and hence, he

represents the total 84 employees on this behalf. The GS of the Union states that ABC

manufacturers bulk drugs against the orders placed by the Pharmaceutical Companies and

states that the Company has been in existence for 15 years and has been doing good, ever

since.

Based on the evidence of affidavit submitted by the GS, it has been stated that, due to

the high cost of living prevailing in the economy, it was difficult for all the employees to

meet their expenses with the salary they were drawing and hence, a Charter of Demands was

placed by the Union to the management. The GS of the Union states that in order to

pressurise the representatives of the workmen not to press their demands in its entirety

instead of offering the wage increase, placed counter demand for reduction of wages of the

workmen by 20%


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Accordingly, it has even been stated that the management also threatened the workers that

they would resort to Lay-Off, Lock Outs etc., if the workers continued demanding for hike in

their wages and that as a pressure tactic, the management purposely introduced Voluntary

Retirement Scheme (VRS) so that the workers may not press their demands.

As none of the employees took VRS, the management illegally laid off many

employees and thereafter retrenched 84 employees, whose dispute is referred to for

Adjudication following which, 8 other workmen were retrenched and subsequently 17

workmen were transferred to a factory in Maharashtra, without any increase in their wages.

Though these workmen were called Supervisory staff on paper, they were never entrusted

with any work that was supervisory in nature and were continued to perform the work that

was technical and clerical in nature.

10 employees, who were transferred to the factory in Maharashtra, requested and

represented to the Management to reconsider their order of transfer and to continue to employ

them at the factory in Karnataka itself. The management obliged this request just because

there was no work for the workmen at the factory in Maharashtra. Hence the matter was

taken to the Industrial Tribunal under the reference number 7/2011, stating that 17 workmen

who were transferred to a factory in Maharashtra did not have any work there and in

Karnataka as well.

Finally, it has been stated by the GS that the workmen were not intimated about the

Lay-Off, Retrenchment, Transfer, Lock out etc., and hence claims that the Lay off and

Retrenchment of 84 employees along with the Lay-Off and Transfer has been completely

illegal.


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Evidence of Respondent with respect to the suit filed by the applicant

The 2nd

party, that is the Management in its counter statement, as part of the evidence filed,

states that all the allegations made by the Union is not maintainable either in law or in facts

and hence is liable to be dismissed under the law.

It has been stated in the counter statement that ABC has been incorporated in the year 1991

for manufacture of bulk drugs. Due to lack of funds, the first plant commenced its operations

in 1995 and the second plant commenced its operations in 1997.

Due to increase in stock of finished goods, weak market conditions, inadequate

working capital etc., the operations in one of the plants had to stop for 2 years. With the

support of an associate company, the operations were restarted in 1998.

It has been stated by the Management that by 1999, ABC became a sick company and

made a reference u/s 15(1) of Sick Companies (special provisions) Act 1985 to BIFR. The

company, by that time had incurred a loss of 23.5 crores and the subsequent losses rose to

30.17 crores in Sept 2008. The entire loss that was accumulated as on Sept 2008 was funded

by the associate company itself.

According to the response by the management, the supply of Raw Materials had

reduced to a great extent and had become costlier than before, which made it difficult to be

afforded by ABC and it was at this time the Union came up with a new COD wherein a hike

in salary was demanded. Due to the rejection by the management, the enraged employees

started being absent very frequently, their attitude towards work changed; there was non-

cooperation, 14 illegal strikes and low productivity. This led to frequent rejection of the

materials produced, by the customers. This was a major fall.

Though the management faced all these problems, the 1st party, i.e. Union, kept on

coming with new CODs. In order to maintain good Industrial Relations, the management


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entered into two memorandums of settlements with the Union to fulfil the demands put

forward by the Union. This led to a drastic increase in the costs incurred by the Management.

Even though theses many measures were taken up, neither did the productivity go up nor did

the attitude of the workmen change!

The management claims that it has incurred Rs.37 crores financial loss and that is has

undergone mental agony. It has even been stated by the Management in the evidence that the

Laws have been meticulously followed in retrenching the workmen and that the retrenchment

compensation has already been paid to the workers.

Therefore, taking all the above points in consideration, the management requests the

Honble Court to dismiss the claim made by the 1st party, i.e., the Union.

Main issues related to Labour Laws observed in the case and the citations provided

respectively

1. Lay-off2. Retrenchment of employees

Lay-Off

1. Lay-Off has been defined under Sec 2(kkk) of the ID Act as, The failure, refusal orinability of an employer on account of shortage of coal, power or raw materials or the

accumulation of stocks or the breakdown of machinery [or natural calamity or for any

other connected reason] to give employment to a workman whose name is borne on

the muster rolls of his industrial establishment and who has been

retrenched.(S.A.Chari, The Industrial Disputes Act,1947 )

According to which, no compensation will be paid to the workmen under the following

grounds-

If he/she refuses to accept any alternative employment in the same establishment


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If he/she does not present himself/herself for work at the establishment atappointed time during working hours atleast once in a day

If such Lay-Off is due to strike, slowing down of production on the part ofworkmen.

Rightly so, the Management had to resort to Laying-Off the employees under the

grounds of non-availability of the required amount of Raw Materials and accumulation of

stocks, as mentioned earlier in the evidence of respondent and as the employees had gone on

14 illegal strikes, they were not eligible for any compensation.

Citations provided by the Legal Advisors are as follows

1. Declaration of Lay-Off without prior permission by a unit employer will not be illegal,Lay-Off due to shortage of Raw Materials.

Yeshwant G. Chikhalkar V. Killick Nixon Ltd., (1993) 78 FLR 893: (1998) 1 LLN446:1998

The Management Of Kanyakumarivs The Presiding Officer on 15 May,2002(indiakanoon.org)

Management Of KairbettavsRajamanickam And Others on 24 March, 1960 AIR893, 1960 SCR (3) 371(indiakanoon.org)

Retrenchment of Employees

According to Section 2 (oo) of the ID Act, Retrenchment means the termination by the

employer of the service of a workman for any reason whatsoever, otherwise than as a

punishment inflicted by way of disciplinary action, but does not include-

Voluntary retirement of a workman Retirement of a workman upon reaching the age of superannuation Termination of the services as a result of non-renewal of contract


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Termination of services of a workman on the grounds of ill-health(S.A.Chari, TheIndustrial Disputes Act of 1947)

Here, the workmen were retrenched as they went on 14 illegal strikes and they slowed down

the production.

Citations provided by the Legal Advisors are as follows

Mohan Lalvs Management Of M/S Bharat, 1981 AIR 1253, 1981 SCR (3)518(indiankanoon.org)

Central Bank Of India vsS.Satyam&Ors, JT 1996 (7), 181(indiankanoon.org)Judgement

Pending at the Honble Industrial Tribunal of Mysore.


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CASE 4: INDUSTRIAL DISPUTES ACT

BEFORE THE HONBLE LABOUR COURT, AT MYSORE

Ref. No.04/2008

First Party : Mr. KLM

Vs

Second Party : The Management of

HIJ Ltd.,

COUNTER STATEMENT FILED BY THE SECOND PARTY

1. It is respectfully submitted on behalf of the Second Party as follows:

2. At the outset dispute raised by the First Party Workman is not maintainable either in Law

or in facts as the same is liable to be rejected.

3. It is submitted that the Second Party denies all the averments/allegations made by the First

Party, except those that are specifically admitted herein.

4. The Second party has taken over the Factory XYZ which was stared in the year 1981. The

establishment of XYZ was manufacturing TV till 1997, due to stiff competition the

market of TV was diminished and the manufacturing of TV becomes non-viable then

XYZ Management even though the situation warranted closure of Factory, the XYZ

Management by keeping in mind the fate of 350 families who were depending on the

Factory has gone for diversification in the year 1997-98. Since XYZ went for

diversification the Company could survive and as provided livelihood for 300-350

employees as well as their families.


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5. The XYZ Company has started manufacturing Dry Battery cells since then. The public

demand for dry batteries was good all over India due to marketing strategies. Even then

due to very stiff competition and at the shining zinc caused which is the main raw material

for the product. The Company has incurred loss. Consequently Eveready Industries has

taken over the Companies in September 2005. The Employment of the workers continued

without changing the service conditions.

6. It is further submitted that since 2004 a group of workers were disturbing the peaceful

atmosphere of the Factory and then they have become undisciplined. The Management

had been warning the erred workers. Particularly during the period of 2004 some of the

Employees at the instigation of undisciplined workers have adopted the method of going

slow. Some of the workers were found sleeping while on duty and if anybody complains

about the same to the Management they used to threaten them with their consequences. In

fact the Second party Management has put notice on notice board on various dates

subsequently to that drawing the attention of all the employees with regard to the illegal

activities they have indulged in and requested them to co-operate and refrain from

indulging in illegal activities and also warned them if they continue to indulge in such

activities the Management will be forced to initiate disciplinary action against such

employees in accordance with Law. In this process the XYZ Management has initiated

disciplinary action against one Mr. KLM, since he was found sleeping while on duty,

based on the report given by his supervisor, Mr. CDE on 28.11.2004, Mr. KLM, along

with outsiders has gone to the house of Mr. CDE at around 8.30 P. M and hit him on his

head and on all over the body with wooden logs, causing grievous injuries to him. Further

Mr. KLM threatened Mr. CDE that if he gives any Complaint to the Police or Company

Management he will have to face dire consequences.


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7. It is further submitted that after the said incident the Management has initiated

disciplinary action against Mr. KLM, who has fully participated in the Enquiry along with

his co-worker. The Management has engaged Mr. PQR as an enquiry officer who was an

independent person.

The Enquiry officer has conducted the enquiry by following the principles of natural

justice. Enquiry officer gas conducted the enquiry by holding 23 sittings.

8. It is submitted that on 28.11.2004 at 8.30 P.M First Party along with Gundaas assaulted

Supervisor Mr. CDE, a complaint was also filed. Mr. CDE was seriously injured and was

hospitalized for 2 days later on 30.11.2004 a complaint was filed with the jurisdictional

Police.

9. Mr. KLM was suspended from the services and show cause notice cum charge sheet was

also issued to him. Since the replay given by the First Party was not satisfactory. The

Second Party management in order to give one more opportunity to the First party

conducted Domestic Enquiry on the charges leveled against him by engaging an outside

and independent person.

10. It is further submitted that the enquiry officer has submitted his report and findings hold

the charges leveled against the First Party are proved. The second party Management has

issued Second Show cause notice on 11.03.06 and later he was dismissed on 20.03.2006.

The action taken by the Management is in accordance with the law. The punishment of

dismissal in proportionate to the misconduct committed by the First party.

11. Without prejudice to the above the Second party craves the leave of this Hon'ble Court to

answer the claim of the First party in seriatim.

12. With regard to Paragraph 1 it is submitted that the First Party was a permanent employee

and he was drawing a salary of Rs. 3,950/-. But the averment made by him that he has


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worked continuously without any blemish what so ever is denied by the Second party as

false and the First Party is put to strict proof of the same.

13. With regard to Paragraph 2 it is submitted that the second Party Management is now

carrying on the Business of manufacturing dry battery cells and engaging both male and

female employees. But the Second Party denies the averment made by the First Party that

the Second Party is making fabulous profit during each year on account of the hard work

of the workmen. The Second Party has incurred heavy loss while it was under the

ownership of XYZ Management now after taking over by LKJ India Pvt., Ltd. The Second

party is not even reaching breakeven point.

14. With regard to Paragraph 3 & 4 it is submitted that the Second party Management was

earlier belong to the XYZ Management & the workers of XYZ Management and the

workers of XYZ Management at Bangalore have indulged in Commission of misconducts

and offences for which some of the Union leaders were convicted by the Hon'ble Criminal

Courts at Bangalore. The members of XYZ Group of Companies Karmikara Sangha were

very rude, indiscipline and they have developed the attitude of militancy. It is not within

the knowledge of Second party that almost all the workers of XYZ units including the

workers of Second Party became the members of the Sangha along with the First Party

worker and the First Party is put to strict proof of the same. It is further submitted that the

members of XYZ group of Companies Karmikara Sangha has started behaving in militant

manner for which the Management of XYZ Companies had to initiate disciplinary

preceding against some of the workers and lodged Complaints with jurisdictional Police.

Apart from this the Second party and other Companies of XYZ Group had to obtain

temporary Injunctions from the jurisdictional Civil Courts. The members of the XYZ

Group of Companies Karmikara Sangha have created a tension of fear phobia in the minds

of the Management staff and loyal workers. The similar attitude and culture was adopted


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by some of the workers of Second Party including the First Party Mr. KLM, which made

the Management of Second Party to dismiss him from the services after conducting a full-

fledged domestic enquiry.

Under the guise of just and legitimate training and activities the First Party and other

Workers have adopted and inculcated militant attitude. The First party on 28.11.2004 at

about 8.30 P.M along with 2 other Gundaas assaulted the Supervisor of the Company Mr.

CDE who reported the fact of First Party sleeping. In fact Complaint was also registered

by Mr. CDE the Supervisor of the Second Party Management with the jurisdictional Police

on 30.11.2004.

15. With regard to Paragraph 5,6,7,8 and 9 it is submitted that the First Party has committed

serious misconducts and the Managements has initiated disciplinary action against him

by engaging Mr PQR, an independent and outside person. He has conducted the enquiry

by giving all reasonable opportunities to the First Party. He has also submitted his

findings by holding the charges as proved. The enquiry was conducted in accordance

with principles of natural justice and the allegation of the First Party that enquiry Officer

was biased in Untenable. There is no reason for the Enquiry Officer to be partial, biased

and unfair. The enquiry was conducted in 23 sittings this itself clearly goes to show that

the First Party was given all reasonable opportunities to defend him on the charges. The

Second Party was put into great inconvenience due to the attitude and misconduct of the

First Party. The enquiry Officer had given an opportunity to the First Party worker to

advice his evidence and an opportunity was also given to have his say on the charges

levelled against him. The other averments made in above referred Paragraphs are hereby

denied as false and frivolous and the First party is put to strict proof of the same.


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16. With regard to Paragraph 10 the Second party has already mentioned in the above

Paragraphs and it is not necessary to answer the said Paragraphs.

17. With regard to Paragraph 11 & 12 it is submitted that the Management has issued show

cause notice to the First Party along with the findings of the enquiry officer, after that only

his services were terminated.

The Second Party before accepting the findings has gone through the report and findings of

the enquiry officer and after getting convinced that the enquiry officer has followed the

procedure meticulously in accordance with the principles of Natural Justice and hence the

enquiry is fair.

Since the First Party has committed serious acts of Misconducts the Management by

keeping in mind the peaceful atmosphere in the factory and to maintain proper Industrial

relations and discipline amongst the workers has dismissed the First party from the

Services. The punishment imposed by the Second party is proportionate to the misconduct

committed by the First party for his proved acts of misconducts.

18. Under these circumstances the question of victimization doesnt arise at all. The Second

party has only acted on the crude acts misconducts of the First Party.

19. With regard to Paragraph 13 it is submitted that the First Party is a youngster and he is

gainfully employed and the Second party is not aware of the hardship faced by the First

Party and he is put to strict proof of the same.

20. It is further submitted that if this Hon'ble Court comes to the conclusion that the domestic

enquiry conducted by the Second Party is not fair and proper an opportunity may be given

to the second party to prove the charges levelled against the First party afresh. Under these


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circumstances the action of the Second party management in dismissing the First Party is

just, fair and proper.

Wherefore it is humbly prayed that this Hon'ble Court may be pleased to reject the

reference as such an order is necessary in the interest of justice and equity.

.. ..

Second Party Advocate for Second party

VERIFICATION

All that stated above are true to the best of my knowledge, belief and information. In token

whereof I have signed this Counter statement.

Date:

Place: Second Party: ..


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IN THE COURT OF THE HONBLE LABOUR COURT AT MYSORE

Ref. No. 04/2008

First Party : Mr KLM

Vs

Second Party : The Management of LKJ India Pvt Ltd

APPLICATION UNDER SEC 11 OF INDUSTRIAL DISPUTE ACT 1947

It is respectfully submitted on behalf of the Second Party as follows:

The above case is posted for evidence of First Party . The documents pertaining to the

above case were not traced out hence the counter statement could not be filed in time. Now

the documents are made available and the Second Party counsel is ready and willing to file

Counter Statement.

It is submitted that the Second Party will be put to great hardship incase if this

application is not allowed, on the other hand the First Party will not be put to any hardship.

Wherefore, it is humbly prayed that this Honble Labour Court may be pleased to

permit the Second Party counsel to file Counter Statement in the interest of justice and equity.

.

Date: Advocate for Second Party

Place: Mysore


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BEFORE THE HONBLE LABOUR COURT

sip report it is useful

Documents