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Labour Laws
Notes any differences of opinion in matters of common interest, and thereby promote measure for
securing and preserving amity and cordial relations between the employer and workmen.
The representatives of workmen will not be less than the representatives of employers
and such representatives of workmen will be from among the workmen engaged in the
establishment and in consultation with registered trade unions. The decision of the works
committee carries weight but is not conclusive and binding; its duties is to smooth away
friction then to alter conditions of services, etc. (Section 3).
2. Prohibition of changes in the conditions of service in respect of matters laid down in the
Fourth Schedule of the Act (a) without giving notice to the workmen affected by such
changes; and (b) within 21 days of giving such notice. No such prior notice is required in
case of (a) Changes affected as a result of any award or settlement; (b) Employees governed
by Government rules and regulations.
3. Prohibition of strikes and lock outs in a public utility service (a) without giving notice to
other party within six weeks before striking or locking out, (b) within 14 days of giving
such notice, (c) before the expiry, of the date of strike or lock-out specified in the notice
and during the pendency of any conciliation proceedings before a conciliation office and
seven days after the conclusion of such proceedings. In non-public utility services strikes
and lock out are prohibited during the pendency of conciliation proceedings before the
Board of Conciliation and seven days after the conclusion of such proceedings, during the
pendency of proceedings before an arbitrator, labour court, and Industrial Tribunal and
National Tribunal, during the operation of an award and settlement in respect of matters
covered by the settlement or award. (Sections 22 and 23).
4. Prohibition of Unfair Labour Practices: Secs. 25T and 25U prohibit employers, employees
and unions from committing unfair labour practices mentioned in the Schedule V of the
Act. Commission of such an offence is punishable with imprisonment upto six months and
fine upto ` 1000, or both. (Ch. V -C)
5. Requiring employers to obtain prior permission of the authorities concerned before which
disputes are pending for conciliation, arbitration and adjudication, for changing working
and employment conditions, or for dismissal or discharging employees and their union
leaders. (Section 33).
6. Regulation, of lay-off and retrenchment and closure of establishment: Sec. 25 and its sub-
sections require employers to (a) pay lay-off compensation to employees (in establishments
employing 50 or more) for the period that they are laid-off, at the rat of 50% of the salary or
wages which they would have paid otherwise, (b) give one month notice, and three months
notice in case of establishments employing 100 or more persons or pay in lieu of notice, and
also pay compensation at the rate of 15 days wages for every completed year of service for
retrenchment and closing establishments (c) Retrench employees on the basis of first come
last go, and (d) obtain permission from the Government for retrenchment and laying off
employees and closing, of establishments employing 100 or more persons.
Task As a Manager, what measures will you take in order to prevent Conflicts and
Disputes in your organisation.
Self Assessment
State whether the following statements are true or false:
13. Setting up of Works Committees in establishments employing 200 or more persons, with
equal number of representatives of workers and management for endeavouring to compose
any differences of opinion in matters of common interest.
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