Strikes, Lock-outs, Lay-off, Retrenchment Closure.pptx

Provisions of Industrial Disputes Act on strikes, lockouts, retrenchment and closure.

1. Provisions relating to Strikes and Lock-outs

2. Strike or Lock-out in the case of Public Utility Concerns Conditions: Employees are given the right to go on strike as a mode of redress of the legitimate grievances under the Industrial Disputes Act. Notice of strike should be given before six weeks The notice will remain valid only for six months. If strike was not done within the six weeks period then a fresh notice should be given. Employees can go on strike only after 14 days of giving the above notice If the date of strike is mentioned in the notice strike should be done before the expiry of such date During the process of conciliation proceedings and after 7 days of the conclusion of conciliation proceedings.

3. Conditions for Lock-out by the employers is the same as that of conditions for strike When a notice is given to the employer or given by an employer he should report the same to the appropriate government within 5 days Any strike or lock-out conducted without satisfying the above conditions is illegal and no compensation can be claimed..

4. Strike or Lock-out in industrial establishments No advance notice is necessary for a strike or lock-out Should not be conducted if the dispute is under conciliation, adjudication or arbitration by Boards of conciliation Courts of inquiry Labour courts, industrial tribunal or national tribunal Arbitrator Should not be conducted after 2 months of conclusion of the conciliation, adjudication or arbitration proceedings.

5. A strike or lock-out conducted after an industrial dispute is referred to any of the settlement machinery then such strike or lock-out is illegal If a strike or lock-out is already is existence at the time of reference then it is not illegal A lock-out declared in consequence of illegal strike or vice versa is not illegal. An illegal strike is also unjustified.(whether the employees remained silent, disciplined or not) Once a strike is considered as illegal it would be appropriately punished.

6. Penalty for Illegal strikes and Lock-outs Strikes – imprisonment up to 1 month and/or a fine of Rs . 50 Lock-out – Imprisonment up to 6 months and/or a fine of Rs . 1000 Any person who instigates or incites others to take part in an illegal strike is punishable with a fine of Rs . 1000 and/or an imprisonment of up to 6 months. Instigates or incites is not simply asking a person to do something Any person extending any financial support to an illegal strike or lock-out is punishable with 6 months imprisonment and/or Rs . 1000 fine

7. Other consequences of illegal strikes Loss of benefit of annual holidays with wages as given in the Factories Act Employees on illegal strike are liable for suspension Dismissal as punishment is too severe and should be given only when it is proved that the employees resorted to violence. Peaceful strikers should not be dismissed. If employees resort to violence even in a legal and justified strike they may be dismissed after proper enquiry

8. Physical obstruction of legal employees is considered as a serious offence. Such employees who obstruct other employees may be dismissed In the case of legal strikes the employees are entitled for pay during the striking days only if the strike is legitimate and justified (not accompanied by violence or sabotage) Latest judgement by the division bench of Supreme Court held that the workers are not entitled to any pay for the striking days whether the strike is legal or illegal

9. Lay-Off and Retrenchment Compensation for Lay-off 50% of total basic wages + DA that is normally payable to him Lay-off compensation is payable for a maximum of 45 days in an year. If lay-off continues for more than 45 days the employees may be legally retrenched any time from the expiry of the 45 days. In such case the compensation paid can be deducted from the retrenchment compensation payable. Conditions for compensation Completed at least one year of continuous service – 240 days in an year Normal leave with wages, and other holidays, days of legal strike, interruptions due to accident or sickness or lockout are included in the 240 days.

10. In case of workers employed below ground in a mine the number of days is 190 days. More than 50 workers were employed in the industry in the preceding calendar month. The industry is not a seasonal industry. Which industries are seasonal shall be decided by the appropriate Government. The employee is not a casual employee. His name should be in the muster rolls of the industry. The lay-off may be continuous or intermittently.

11. It is the duty of the employer to maintain the muster roll. The names of all the employees entered in the muster roll are eligible for compensation The employees should sign in the muster roll to be eligible to get the compensation. Badli employees (Casual labourers) who has completed one year of service in the industry will become eligible for lay-off compensation The employees can raise an industrial dispute if they feel they are laid-off for an unreasonably long period. If such a dispute is tried in a tribunal their findings cannot be interfered by the High court.

12. Alternate employment: If the employer offers an alternate employment to the employees who are to be laid off they should accept such offer subject to the following conditions The alternative place of work is situated within 8 kms from the industry The employment does not require the employees to possess any special skill. The wages paid for such employment are equal to his remuneration from the previous job If an employee refuses to accepts an alternate employment then he is not eligible for the compensation. The alternate employment should be similar or like or equivalent to the original job. (a coolie should not be offered the job of a skilled labourer)

13. If the employees in one part of the establishment goes on a strike and a result of which the employees in another part of the establishment has no or less work then the employer can legally lay-off the employees in the another part. What is one establishment has to be decided after considering various factors like Integrality of functions Interdependence of finance Community of control and management etc. How the employer treats the different units (as one or different)

14. Retrenchment Conditions for retrenchment The following condition apply for an employee who has been in continuous service under an employer for at least 1 year One month notice is given to the employees in writing Retrenchment compensation has been paid The employer should give a notice to the app.Gov . about the retrenchment Before the completion of the notice period employees should not be retrenched. (if salary is paid for the notice period this condition is exempted) Retrenchment compensation 15 days average pay for every completed year of continuous service or any part thereof in excess of 6 months

15. Retrenchment compensation is available regardless of the nature of employment (permanent, temporary, casual etc.) If the retrenchment conditions are not fulfilled then it is illegal An employer cannot escape from the liability of compensation by entering into a contract with the employees Apprentices cannot claim the compensation. But probationers are eligible. Termination of service in respect of a probationer is considered as termination

16. Invalid/illegal retrenchment is not accepted and in such a case the employees are eligible for reinstatement and back wages with all the benefits. A vegetable ghee producing unit closed its business and all its employees resigned. After some time the unit started functioning again. The court ordered for the reinstatement of the employees and to pay the back wages.

17. Procedure for retrenchment The rule of ‘last come first go’ is applicable in deciding the order of the employees who are retrenched. The last person should be retrenched first and the rule is followed progressively up the list of seniority. The management can depart from this rule for valid and justifiable reasons. i.e if an employee who possess some special qualifications and his service is necessary for the common good of all employees then he may be retained regardless of his seniority. The management should record the reasons in the retrenchment notice for retrenching the employees who are not the last to be employed

18. Retrenched employees who are Indian citizens should be given preference if the employer has to employ fresh hands following retrenchment The penalty for illegal retrenchment is imprisonment up to 1 month or fine up to Rs . 1000 or both. Illegal retrenchment – No notice is given to the employees before 3 months, no prior permission is obtained from the app. Government by applying in the prescribed form. If the permission is not obtained from the gov. within 60 days the permission is deemed to be granted. The order giving or refusing permission may be reviewed if a request is made on behalf of employers or employees by referring it to a tribunal

19. Transfer and Closing down of Undertakings If there is a change in the ownership of an undertaking and the new employer retrench some of the employees of the undertaking then all the provisions relating to retrenchment shall apply. S uch employees are liable for the retrenchment compensation if they were in continuous service for more than 1 year If the employees are retained and their service is not interrupted then no notice or compensation are needed. An employer has the right to transfer his undertaking. The new employer in such case cannot be compelled to retain the employees of the undertaking. The only right for the employees is the right for retrenchment compensation

20. Closure The employer who is closing down the undertaking should give a 60 days notice to the appropriate government. Exemptions from the above rule are An undertaking in which less than 50 employees were employed on an average per working day in the previous 12 months. An undertaking set up for construction of buildings, roads etc. An employer who closes down an undertaking without complying with the provisions shall be punished with 6 months imprisonment or with a fine of Rs . 5000 or with both

21. Compensation in case of closure In normal circumstances when the establishment is closed, the employees are eligible for the notice and compensation as in the case of retrenchment When the closure is due to unavoidable circumstances beyond the control of the employer then the compensation is not more than the three months average salary Unavoidable circumstances: A sugar factory is closed due to the unavailability of sugarcane Machinery possessed cannot produce the required quality of a product due to change in the government regulation and as a result the undertaking was closed Mines getting exhausted in the case of a mining company and the employer is not providing any alternative employment.

22. Not unavoidable reasons: Employer suffering from illness (Hypertension) and is not in a position to attend his business Employees (Labour unrest) engaging in ghareo of the officers and staff continuously for 15 hours, resulting in the management putting up a closure notice. Financial difficulties or accumulation of undisposed stocks Expiry of a lease or lien granted to it. Employer running a grocery shop suffering from tuberculosis (CL) closed the undertaking. Labour court as well as High court decided that the situation is not due to unavoidable reasons and the employees are eligible for compensation.

23. Application should be made seeking permission to close the undertaking at least 90 days prior to the intended closure The applications should clearly state the reasons for which the closure is done A copy of such application should be sent to the representatives of the employees The app.gov. shall make an inquiry as it thinks fit, giving reasonable opportunity for the employer, employees and other interested persons to be heard pass an order granting or refusing permission.

24. The factors to be considered by the Gov. are Genuineness and adequacy of the reasons stated by the employer Interests of the general public All other relevant factors The order should be in writing and communicated to both employer and employees If no communication is received from the Gov. within 60 days then permission is deemed to be given.