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500 One-liner Concepts of Labour Laws and Industrial Relations

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Part 1: Industrial Relations Concepts & Core Acts

  1. Industrial Relations (IR) refers to the complex relationship between employers, employees, and the government.
  2. Dunlop’s System Theory views IR as a subsystem of society consisting of Actors, Contexts, and Ideology.
  3. The Three Actors of IR: Workers (Unions), Employers (Management), and Government (State).
  4. Unitary Approach: Views the organization as a happy family with a single source of authority; conflict is seen as irrational.
  5. Pluralist Approach: Sees the organization as a coalition of competing interests; conflict is inevitable but manageable.
  6. Marxist Approach: Views IR as a class struggle between Capital (Bourgeoisie) and Labor (Proletariat).
  7. Gandhian Approach: Based on Truth, Non-violence, and Trusteeship (Employers are trustees of wealth for the welfare of workers).
  8. Giri Approach: Emphasizes Collective Bargaining and voluntary arbitration over legal adjudication.
  9. V.V. Giri is known as the “Father of Indian Labour Statistics” and was a strong advocate for trade union rights.
  10. Collective Bargaining: Negotiation between employer and union to determine working conditions (coined by Beatrice and Sydney Webb).
  11. Tripartism: Consultation involving Government, Employers, and Workers (e.g., Indian Labour Conference).
  12. Bipartism: Direct negotiation between Employer and Employees (without Govt intervention).
  13. Code of Discipline (1958): Adopted at the 16th Indian Labour Conference to maintain peace and avoid litigation.
  14. Worker’s Participation in Management (WPM): Inclusion of employees in decision-making (Constitutional basis: Article 43A).
  15. Whitley Councils (Joint Consultative Machinery): Pre-independence bodies for employer-employee dispute resolution in Govt services.
  16. Gherao: A coercive tactic where workers physically surround a manager; declared illegal by courts (Jay Engineering Works case).
  17. Lock-out: The “strike” of the employer; closing the place of employment to force terms.
  18. Lay-off: Inability to provide work due to shortage of coal, power, or raw material (not termination).
  19. Retrenchment: Termination of service for any reason other than punishment or retirement (e.g., downsizing).
  20. First Factory Commission (1875): Appointed to study conditions of labor in India.
  21. First Factories Act: Passed in 1881 (focused on child labor).
  22. N.M. Lokhande: Considered the “Father of the Trade Union Movement in India” (founded Bombay Mill Hands Association, 1890).
  23. AITUC (1920): First central trade union federation; Lala Lajpat Rai was the first president.
  24. INTUC (1947): Affiliated with the Indian National Congress.
  25. BMS (Bharatiya Mazdoor Sangh): Currently the largest Central Trade Union Organization (CTUO) in India by membership.
  26. ILO (International Labour Organization): Founded in 1919 (Treaty of Versailles); became first specialized agency of UN in 1946.
  27. ILO Headquarters: Geneva, Switzerland.
  28. Philadelphia Declaration (1944): Stated “Poverty anywhere constitutes a danger to prosperity everywhere.”
  29. Core ILO Conventions: There are 8 (now 10 with Safety included) fundamental conventions.
  30. India has NOT ratified: Convention 87 (Freedom of Association) and 98 (Right to Collective Bargaining) due to rights of Govt servants.

Trade Unions Act, 1926

  1. Objective: Registration and protection of Trade Unions.
  2. Minimum members to register: 7 members subscribing to the rules.
  3. Minimum members to maintain registration: 10% or 100 workers, whichever is less (subject to min 7).
  4. Age to join a Trade Union: 15 years.
  5. Age to be an Office Bearer: 18 years.
  6. Registrar: Appointed by the Appropriate Government to register unions.
  7. Political Fund: Separate fund for political purposes; contribution is optional for members.
  8. General Fund: Mandatory; used for salaries, legal defense, etc.
  9. Office Bearers Limit: Max 1/3rd or 5 (whichever is less) can be outsiders in the unorganized sector (generally 50% outsiders allowed, changed in 2001 amendments). Correction: Under 2001 amendment, outsiders limited to 1/3rd or 5, whichever is less.
  10. Immunity: Registered unions have immunity from civil suits for actions done in furtherance of a trade dispute (Sec 18).
  11. Criminal Conspiracy: Office bearers protected under Sec 17 if agreement is for trade union objectives.
  12. Cancellation of Registration: By Registrar if obtained by fraud, mistake, or union ceases to exist.
  13. Appeal: Lies to the High Court/Industrial Tribunal against Registrar’s refusal.
  14. Returns: Annual returns must be sent to the Registrar.
  15. Recognition of Trade Union: The 1926 Act has NO provision for mandatory recognition of unions by employers (a major weakness).

Industrial Disputes Act, 1947

  1. Objective: Investigation and settlement of industrial disputes.
  2. Industry (Triple Test): Systematic Activity + Co-operation between Employer/Employee + Production of Goods/Services (Bangalore Water Supply Case).
  3. Public Utility Service (PUS): Transport, banking, sanitation, etc. (Stricter strike rules apply).
  4. Industrial Dispute: Any dispute between employer-employer, employer-workman, or workman-workman connected with employment.
  5. Individual Dispute (Sec 2A): A dispute regarding discharge, dismissal, or retrenchment of an individual worker is deemed an Industrial Dispute (even without union support).
  6. Authorities under Act: Works Committee, Conciliation Officer, Board of Conciliation, Court of Inquiry, Labour Court, Tribunal, National Tribunal.
  7. Works Committee: Mandatory for establishments with 100 or more workers; comprised of equal reps of employer and workers.
  8. Conciliation Officer: Appointed by Govt to mediate; duty is to induce parties to come to a settlement.
  9. Strike Notice (PUS): Minimum 14 days notice required; cannot strike within 6 weeks of giving notice.
  10. Illegal Strike: Striking during pendency of conciliation/adjudication proceedings.
  11. Lay-off Compensation: 50% of basic wages + DA (for establishments with < 100 workers, usually regulated by Standing Orders; Act applies to >50). Clarification: Chapter VB applies to >100 workers.
  12. Retrenchment Conditions (Sec 25F): 1 month notice (or pay) + 15 days avg pay for every completed year of service.
  13. Chapter V-B: Special provisions for Lay-off/Retrenchment/Closure for establishments with 100 or more workers (requires Prior Govt Permission).
  14. Last Come, First Go: Principle followed during retrenchment (Sec 25G).
  15. Closure: Permanent closing down of a place of employment (Requires 60 days notice for <100 workers; 90 days permission for >100).
  16. Award: Interim or final determination of any industrial dispute by a Labour Court/Tribunal.
  17. Effectiveness of Award: Becomes enforceable 30 days after publication.
  18. Unfair Labour Practices: Listed in Schedule V (e.g., interfering with union formation, showing favoritism).
  19. Section 33: Employer cannot change service conditions of workers concerned in a pending dispute without permission.
  20. Section 11A: Tribunal has power to reduce punishment (discharge/dismissal) if found disproportionate.

Factories Act, 1948

  1. Objective: Health, Safety, and Welfare of workers in factories.
  2. Factory Definition: 10+ workers with power OR 20+ workers without power.
  3. Occupier: The person who has “ultimate control” over the affairs of the factory (Must be a Director in case of a company).
  4. Adult: Completed 18 years.
  5. Adolescent: Completed 15 but less than 18 years.
  6. Child: Not completed 15 years (Employment prohibited).
  7. Young Person: Child or Adolescent.
  8. Certificate of Fitness: Required for Adolescents to work as adults (issued by Certifying Surgeon).
  9. Cleanliness: Floor cleaned weekly; repainting walls every 5 years; whitewashing every 14 months.
  10. Space: 14.2 cubic meters of space per worker.
  11. Artificial Humidification: Water used must be purified (common in textile mills).
  12. Overcrowding: Prohibited to ensure health.
  13. Drinking Water: Marked “Drinking Water”; cooled water required if > 250 workers.
  14. Latrines/Urinals: Separate for men and women.
  15. Spittoons: Mandatory; fine for spitting.
  16. Fencing of Machinery: Prime movers and dangerous parts must be fenced (Safety).
  17. Work on or near machinery in motion: Only by trained adult male workers wearing tight-fitting clothes.
  18. Employment of Young Persons on Dangerous Machines: Prohibited unless trained and supervised.
  19. Hoists and Lifts: Must be soundly constructed and examined every 6 months.
  20. Pressure Plant: Safe working pressure must not be exceeded.
  21. Floors, Stairs: Must be free from obstruction; handrails provided.
  22. Safety Officer: Mandatory if 1000 or more workers (or in hazardous processes).
  23. Washing Facilities: Mandatory for all.
  24. Sitting Arrangements: For workers obliged to work standing (to rest).
  25. First Aid Box: 1 for every 150 workers.
  26. Ambulance Room: Mandatory if 500 or more workers.
  27. Canteen: Mandatory if 250 or more workers.
  28. Shelters/Rest Rooms/Lunch Room: Mandatory if 150 or more workers.
  29. Crèche: Mandatory if 30 or more women workers (Amendment removed “women”, now generally 50+ workers). Note: The specific number is 30 women workers under Sec 48.
  30. Welfare Officer: Mandatory if 500 or more workers.
  31. Weekly Hours: Max 48 hours.
  32. Daily Hours: Max 9 hours.
  33. Rest Interval: At least 30 mins after 5 hours of work.
  34. Spreadover: Max 10.5 hours (inclusive of rest).
  35. Weekly Holiday: Usually Sunday (or substituted day).
  36. Overtime Wages: Double the ordinary rate of wages.
  37. Women Employment: Prohibited between 7 PM and 6 AM (State Govt can relax 6 AM – 7 PM to 10 PM – 5 AM).
  38. Annual Leave with Wages: 1 day for every 20 days worked (Adult); 1 day for 15 days (Child).
  39. Eligibility for Leave: Must have worked 240 days in previous year.
  40. Hazardous Process: Constitution of Site Appraisal Committee mandated.
  41. Disclosure of Information: Occupier must disclose dangers to workers and general public.

Payment of Wages Act, 1936

  1. Objective: Ensure regular and timely payment without unauthorized deductions.
  2. Wage Period: Cannot exceed 1 month.
  3. Time of Payment: < 1000 workers: by 7th day; > 1000 workers: by 10th day.
  4. Mode: Coin, Currency notes, Cheque, or Bank transfer.
  5. Authorized Deductions: Fines, Absence from duty, Damage/Loss, House accommodation, Amenities.
  6. Fines: Cannot exceed 3% of wages; cannot be recovered after 90 days; no fine on < 15 years age.
  7. Deduction for Absence: Proportional to absence; if group absence (strike) without notice, 8 days wages can be deducted.
  8. Deduction limit: Total deductions cannot exceed 75% (if Co-op society payments involved) or 50% (in other cases).

Minimum Wages Act, 1948

  1. Objective: Prevent sweating of labor; fix minimum rates in scheduled employments.
  2. Scheduled Employment: Listed in Schedule I (Industrial) and Schedule II (Agriculture).
  3. Cost of Living Index: Minimum wages linked to Consumer Price Index (CPI).
  4. Components: Basic Rate + Special Allowance (Variable DA).
  5. Fixation Methods: Committee Method or Notification Method.
  6. Revision: At intervals not exceeding 5 years.
  7. Wages in Kind: Permitted in certain cases (mostly agriculture).
  8. Overtime under this Act: To be paid if worked excess hours.
  9. Contracting Out: Any contract relinquishing the right to minimum wage is void.

Payment of Bonus Act, 1965

  1. Applicability: Factories and establishments with 20 or more persons.
  2. Eligibility: Employee worked for at least 30 days in the year; salary up to ₹21,000.
  3. Disqualification: Dismissal for fraud, riotous behavior, theft.
  4. Minimum Bonus: 8.33% of salary or ₹100 (whichever is higher).
  5. Maximum Bonus: 20% of salary.
  6. Allocable Surplus: 67% (for companies) or 60% (others) of Available Surplus.
  7. Set-on and Set-off: Mechanism to adjust surplus/deficit over 4 years.
  8. Time limit: Bonus must be paid within 8 months of closing of accounting year.
  9. Customary Bonus: Puja bonus etc., paid voluntarily before this Act.
  10. New Units: Bonus holiday for first 5 years if no profit is made.

Employees’ Provident Fund & MP Act, 1952

  1. Applicability: Schedules industries with 20 or more employees.
  2. Schemes: EPF (Provident Fund), EPS (Pension), EDLI (Insurance).
  3. Wage Ceiling: Mandatory for salary up to ₹15,000.
  4. Employer Contribution: 12% of Basic + DA.
  5. Employee Contribution: 12% of Basic + DA.
  6. Split of Employer Share: 8.33% goes to EPS (Pension), 3.67% to EPF.
  7. UAN: Universal Account Number (portable across jobs).
  8. EDLI (Employees’ Deposit Linked Insurance): Life insurance cover for EPF members (Max benefit ₹7 Lakh).
  9. PF Withdrawal: Allowed for marriage, housing, illness (subject to conditions).

Employees’ State Insurance (ESI) Act, 1948

  1. Objective: Social security for sickness, maternity, injury.
  2. Applicability: Non-seasonal factories with 10 or more persons.
  3. Wage Ceiling: ₹21,000 per month (₹25,000 for disability).
  4. Employee Contribution: 0.75% of wages.
  5. Employer Contribution: 3.25% of wages.
  6. Benefits: Sickness, Maternity, Disablement, Dependents, Funeral, Medical.
  7. Sickness Benefit: Cash payment for certified illness (70% wages for max 91 days).
  8. Maternity Benefit (ESI): 100% wages for 26 weeks.
  9. Funeral Expenses: Upto ₹15,000.
  10. Dismissal: Employer cannot dismiss employee during period of sickness/maternity benefit.

Payment of Gratuity Act, 1972

  1. Nature: Reward for long service (“Gratuity” comes from “Gratitude”).
  2. Applicability: Factories, mines, ports, shops with 10 or more employees.
  3. Eligibility: 5 years of continuous service (Not required in case of death/disablement).
  4. Formula: (15/26) × Last Drawn Salary × Years of Service.
  5. Season Establishment: 7 days wages for each season.
  6. Maximum Limit: ₹20 Lakhs (tax-free).
  7. Nomination: Mandatory; must be made after 1 year of service.
  8. Forfeiture: Gratuity can be forfeited for damage/destruction of property or moral turpitude (only to extent of damage).

Maternity Benefit Act, 1961

  1. Applicability: Factories, mines, shops with 10 or more employees.
  2. Paid Leave: Increased from 12 weeks to 26 weeks (2017 Amendment).
  3. For 3rd Child: Benefit is 12 weeks.
  4. Adopting Mother/Commissioning Mother: 12 weeks leave (child < 3 months).
  5. Eligibility: Must have worked 80 days in the 12 months preceding delivery.
  6. Crèche: Mandatory if 50 or more employees; mother allowed 4 visits/day.
  7. Work From Home: Provision added in 2017 if nature of work allows.
  8. Dismissal: Unlawful to discharge woman during maternity leave.

Employees’ Compensation Act, 1923

  1. Old Name: Workmen’s Compensation Act (Renamed in 2010).
  2. Basis: “Employer’s Liability” (No contribution from employee).
  3. Doctrine of Notional Extension: Employment covers travel to/from work if using employer transport.
  4. Injury: Must arise “out of and in the course of employment”.
  5. Disability: Total (100% loss of earning capacity) or Partial.
  6. Death Compensation: 50% of monthly wages × Relevant Factor.
  7. Permanent Total Disablement: 60% of monthly wages × Relevant Factor.

Part 2: Contract Labour & Child Labour Acts

  1. Contract Labour (Regulation & Abolition) Act, 1970: Applies to establishments/contractors employing 20 or more workmen (Labour Codes may change this to 50, but for old Act, it’s 20).
  2. Principal Employer: The owner/occupier of the establishment; liable if the contractor fails to provide amenities or pay wages.
  3. Registration: Principal Employer must register the establishment.
  4. Licensing: Contractor must obtain a license.
  5. Prohibition: The Government (State/Central) can prohibit contract labour in core activities of an establishment (Sec 10).
  6. Welfare Facilities: Canteens (100+ workers), Rest rooms (requires halt at night), First Aid, Drinking water.
  7. Wage Payment: Contractor must pay wages in presence of Principal Employer’s representative.
  8. Child Labour (Prohibition & Regulation) Act, 1986: Amended significantly in 2016.
  9. Child (New Definition): Person who has not completed 14 years.
  10. Adolescent (New Definition): Person between 14 and 18 years.
  11. Complete Ban: Employment of “Child” is banned in ALL occupations (except family business/audiovisual entertainment).
  12. Adolescent Ban: Employment banned only in Hazardous occupations (Mines, Explosives, and listed processes).
  13. PENCIL Portal: Platform for Effective Enforcement for No Child Labour (Complaint mechanism).
  14. NCLP: National Child Labour Project (Rehabilitates rescued children).
  15. Punishment (Child Labour): Imprisonment 6 months to 2 years, or fine ₹20k-₹50k, or both.
  16. Cognizable Offense: Employing a child is a cognizable (arrest without warrant) offense.
  17. Inter-State Migrant Workmen Act, 1979: Applies if 5 or more migrant workmen are employed.
  18. Displacement Allowance: Contractor must pay 50% of monthly wages or ₹75 (whichever higher) at time of recruitment.
  19. Journey Allowance: Paid for travel from home to work and back.

Part 3: The 4 New Labour Codes (Crucial for Exams)

The 29 existing Labour laws have been consolidated into 4 Codes.

A. Code on Wages, 2019

  1. Consolidates 4 Acts: Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act, Equal Remuneration Act.
  2. Uniform Definition of Wages: (Basic + DA + Retaining Allowance). Excludes HRA, Overtime, Bonus, etc.
  3. 50% Cap: If excluded components (like HRA) exceed 50% of total remuneration, the excess is treated as “Wages” (increases PF/Gratuity liability).
  4. Floor Wage: Central Govt will fix a “National Floor Wage”; State minimum wages cannot be lower than this.
  5. Applicability: Minimum wages now apply to all employees (unorganized/organized), not just scheduled employments.
  6. Limitation Period: Claims for minimum wages/bonus can be filed within 3 years.
  7. Inspector-cum-Facilitator: New role replacing the traditional “Labour Inspector” (focus on advice/compliance).

B. Industrial Relations (IR) Code, 2020

  1. Consolidates 3 Acts: ID Act 1947, Trade Unions Act 1926, Industrial Employment (Standing Orders) Act 1946.
  2. Worker Definition: Expanded to include working journalists and sales promotion employees.
  3. Fixed Term Employment (FTE): Legally recognized; FTE workers get same benefits (wages, social security) as permanent workers.
  4. Gratuity for FTE: Pro-rata basis (even if < 5 years service).
  5. Strike Notice: Mandatory 14-day notice for strikes in ALL industrial establishments (previously only for Public Utility Services).
  6. Closure/Retrenchment Threshold: Prior Govt permission required for establishments with 300 or more workers (increased from 100 in old ID Act).
  7. Negotiating Union: Union with 51% or more membership is the sole negotiating agent.
  8. Negotiating Council: If no union has 51%, a council is formed with representatives of unions having >20% support.
  9. Grievance Redressal Committee: Max 10 members; mandatory for establishments with 20 or more workers.
  10. Reskilling Fund: Employer contributes 15 days wages of retrenched worker into this fund (Govt will not contribute).
  11. Standing Orders: Mandatory now only for establishments with 300 or more workers (earlier 100).

C. Code on Social Security, 2020

  1. Consolidates 9 Acts: EPF, ESI, Maternity Benefit, Gratuity, Employment Exchanges, Unorganized Workers, etc.
  2. Gig Worker: Defined for the first time (works outside traditional employer-employee relationship, e.g., Uber/Zomato).
  3. Platform Worker: Worker who uses an online platform to access other organizations/individuals.
  4. Social Security Fund: Created for Gig/Platform/Unorganized workers; funded by aggregators (1-2% of turnover).
  5. Aggregators: Digital intermediaries (e.g., Ola, Swiggy) must contribute to the social security of gig workers.
  6. Aadhaar: Made mandatory for availing benefits under the code.
  7. Gratuity threshold (Journalists): 3 years (instead of 5).
  8. Limitation for PF Enquiry: 5 years (Enquiry into dues must be concluded within this time).
  9. Career Centre: Replaces Employment Exchanges; digital and physical hubs for jobs.

D. Occupational Safety, Health (OSH) & Working Conditions Code, 2020

  1. Consolidates 13 Acts: Factories Act, Mines Act, Contract Labour Act, Migrant Workmen Act, etc.
  2. One Registration: Single registration for all establishments.
  3. Inter-State Migrant: Anyone earning < ₹18,000 who comes from another state (self-employed included).
  4. Appointment Letter: Statutory right of every employee to receive an appointment letter.
  5. Free Health Checkup: Mandatory annually for workers above a certain age (usually 45) in certain establishments.
  6. Journey Allowance: Lump sum amount to migrant workers for travel to/from native place.
  7. Women Employment: Allowed in all establishments (including night shifts) with consent and safety conditions (6 AM – 7 PM rule relaxed).
  8. National Occupational Safety and Health Advisory Board: Replaces multiple existing advisory bodies.

Part 4: Constitutional Provisions & Labour

  1. Concurrent List: “Labour” is in the Concurrent List (List III) of the 7th Schedule (Both Centre and State can make laws).
  2. Entry 22: Trade Unions, industrial and labour disputes.
  3. Entry 23: Social security and social insurance, employment and unemployment.
  4. Entry 24: Welfare of labor including conditions of work, PF, liability for workmen’s compensation, etc.
  5. Article 14: Equality before law (Equal Pay for Equal Work principles derive from this + Art 39).
  6. Article 19(1)(c): Fundamental Right to form associations or unions.
  7. Right to Strike: It is NOT a Fundamental Right (Kameshwar Prasad vs. State of Bihar). It is a statutory right.
  8. Article 21: Right to Life (includes Right to Livelihood – Olga Tellis case).
  9. Article 23: Prohibition of traffic in human beings and forced labour (Begar).
  10. Article 24: Prohibition of employment of children (<14 years) in factories/mines/hazardous work.
  11. Article 39(d): Equal pay for equal work for both men and women (DPSP).
  12. Article 41: Right to work, to education, and public assistance in cases of unemployment, old age, sickness (DPSP).
  13. Article 42: Just and humane conditions of work and maternity relief (Basis for Maternity Benefit Act).
  14. Article 43: Living wage for workers, decent standard of life.
  15. Article 43A: Participation of workers in management of industries (Inserted by 42nd Amendment, 1976).

Part 5: Trade Union Movement & Theories

  1. Robert Owen: Father of Cooperative Movement and early socialist (stressed 8-hour workday).
  2. Sorabji Shapoorji Bengalee: Early activist for labor legislation in Bombay (1870s).
  3. Madras Labour Union (1918): First registered trade union in India; founded by B.P. Wadia.
  4. Ahmedabad Textile Labour Association (TLA): Founded by Anasuya Sarabhai (under Gandhi’s guidance) in 1920.
  5. Sardars/Jobbers: Middlemen who recruited labor for British factories (often exploitative).
  6. Royal Commission on Labour (1929): Chaired by J.H. Whitley; its recommendations shaped Indian labor laws.
  7. Bombay Industrial Relations Act, 1946: First legislation to recognize “Representative Union”.
  8. Trade Union Rivalry: Multiplicity of unions leading to fragmentation (A major weakness of Indian TU movement).
  9. Check-off System: Employer deducts union fees from salary and transfers to union (helps stability).
  10. Closed Shop: Only union members can be hired (Not legal in India generally).
  11. Union Shop: Non-members can be hired but must join union within a specific time.
  12. Agency Shop: Non-members must pay a “service fee” to the union (to prevent free-riding).
  13. Open Shop: No requirement to join or pay union.
  14. Business Unionism (Bread and Butter): Focuses only on wages and conditions (USA style), less political.
  15. Revolutionary Unionism: Aims to overthrow the capitalist system (Marxist).
  16. Uplift Unionism: Focuses on moral/social well-being of workers (e.g., education, health).
  17. Predatory Unionism: Unions that use ruthless tactics/gangsterism.
  18. Blue-Collar Workers: Manual laborers.
  19. White-Collar Workers: Office/Professional workers.
  20. Gold-Collar Workers: Highly skilled experts (Scientists/Doctors).
  21. Pink-Collar Workers: Service industry/Care-oriented jobs (often female-dominated).

Part 6: Miscellaneous Acts & Definitions

  1. Mines Act, 1952: Regulates safety in mines.
  2. Mines Definition: Excavation where operation for searching/obtaining minerals is carried on.
  3. Inspector of Mines: Appointed by Central Govt.
  4. Apprentices Act, 1961: Regulation of training of apprentices.
  5. Apprentice: A person undergoing apprenticeship training in pursuance of a contract.
  6. Stipend: Apprentices are paid a stipend (not wages); not eligible for PF/Bonus generally.
  7. Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959: Employer must notify vacancies to exchanges (does not mandate hiring from them).
  8. Building & Other Construction Workers (BOCW) Act, 1996: Cess collected (1-2% of construction cost) for welfare board.
  9. Cess: A tax on tax/specific purpose levy.
  10. Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act):
  11. Internal Committee (IC): Mandatory for establishments with 10 or more employees.
  12. IC Composition: Presiding Officer (Senior Woman) + 2 Employee members + 1 NGO/External member. 50% must be women.
  13. Local Committee (LC): For establishments with <10 employees or where employer is the accused.
  14. Vishaka Guidelines: Supreme Court guidelines (1997) that preceded the POSH Act.
  15. Time limit for complaint: Within 3 months of the incident.

Part 7: Important Case Laws (High Yield)

  1. Bangalore Water Supply vs. A. Rajappa (1978): Defined “Industry” very broadly (Triple Test). Hospitals, Clubs, Universities included.
  2. Standard Vacuum Refining Co Case: Distinguished between Minimum Wage, Fair Wage, and Living Wage.
  3. Air India vs. Nargesh Meerza: Regulation forcing air hostesses to retire on first pregnancy was held unconstitutional (Art 14).
  4. Excel Wear Case: Right to close down a business is NOT a fundamental right, but a right to carry on business includes right to close (subject to restrictions).
  5. Randhir Singh vs. Union of India: “Equal Pay for Equal Work” is a constitutional goal.
  6. People’s Union for Democratic Rights vs. UOI (Asiad Workers Case): Paying less than minimum wage amounts to “Forced Labour” (Art 23).
  7. M.C. Mehta vs. State of TN: Directions regarding child labor rehabilitation in hazardous industries.
  8. Vishaka vs. State of Rajasthan: Guidelines against sexual harassment.
  9. Steel Authority of India Ltd (SAIL) vs. National Union Waterfront Workers: Automatic absorption of contract labor is not mandatory even if the contract system is abolished by court.

Part 8: Wages & Economic Concepts

  1. Minimum Wage: Bare sustenance + some efficiency needs (Education, medical, light).
  2. Fair Wage: Above minimum wage but below living wage; depends on capacity of industry to pay.
  3. Living Wage: Highest standard; includes comfort, insurance, social needs (The Goal).
  4. Subsistence Theory of Wages (Iron Law of Wages): David Ricardo; wages tend to remain at subsistence level.
  5. Wage Fund Theory: Adam Smith/J.S. Mill; fixed fund available for wages.
  6. Residual Claimant Theory: Worker gets what is left after Rent, Interest, and Profit are paid.
  7. Marginal Productivity Theory: Wages = Value of marginal product of labor.
  8. Real Wages: Purchasing power of money wages (Wages / Price Index).
  9. Nominal Wages: Wages in monetary terms (Face value).
  10. Dearness Allowance (DA): Component to offset inflation (links wages to CPI).
  11. Consumer Price Index (CPI-IW): CPI for Industrial Workers (Base Year 2016); used for DA calculation for central govt employees.

Part 9: Social Security Schemes (Current Affairs)

  1. Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM): Pension scheme for unorganized workers (Rickshaw pullers, construction, etc.).
  2. PM-SYM Eligibility: Income < ₹15,000/mo; Age 18-40 years.
  3. PM-SYM Benefit: Assured pension of ₹3000/month after age 60.
  4. Contribution (PM-SYM): 50:50 (Beneficiary and Central Govt contribute equally).
  5. NPS-Traders (National Pension Scheme for Traders/Shopkeepers): For turnover < ₹1.5 Cr; Pension ₹3000/mo.
  6. Atmanirbhar Bharat Rojgar Yojana (ABRY): Govt pays EPF contribution (24%) for new employees to boost hiring (ended 2022, but historical context important).
  7. e-Shram Portal: National Database of Unorganized Workers (NDUW).
  8. e-Shram ID: 12-digit Universal Account Number (UAN) for unorganized workers.
  9. Insurance on e-Shram: ₹2 Lakh accident cover (free for 1 year).
  10. PM SVANidhi: Micro-credit for Street Vendors (Collateral free loan ₹10k/20k/50k).
  11. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): Life insurance (₹2 Lakh) for death due to any reason; Premium ₹436/year.
  12. Pradhan Mantri Suraksha Bima Yojana (PMSBY): Accident insurance (₹2 Lakh); Premium ₹20/year.
  13. Atal Pension Yojana (APY): Focused on unorganized sector; guaranteed pension ₹1000-5000; Administered by PFRDA.

Part 10: Definitions in Depth

  1. Absenteeism: Failure of worker to report for work when scheduled.
  2. Attrition: Reduction in workforce due to resignation/retirement (not firing).
  3. Moonlighting: Holding a second job outside normal working hours (Ethical issue if conflict of interest).
  4. Golden Handshake: Generous severance package for early retirement (VRS).
  5. Golden Handcuffs: Financial incentives (Stock options) to keep employee from leaving.
  6. Pink Slip: Notice of dismissal.
  7. Glass Ceiling: Invisible barrier preventing women/minorities from rising to top management.
  8. Gig Economy: Labor market characterized by short-term contracts/freelance work.
  9. Emotional Labour: Managing feelings/expressions as part of the job (e.g., flight attendants).
  10. Ergonomics: Designing the workplace to fit the worker (reduce strain).
  11. Kaizen: Continuous improvement (Japanese concept).
  12. Six Sigma: Quality control methodology (3.4 defects per million).
  13. Human Resource Management (HRM): Strategic approach to managing people; treats people as “assets” (unlike Personnel Management which treats them as costs/tools).
  14. Hawthorne Studies (Elton Mayo): Proved that social factors and attention affect productivity more than physical conditions (Illumination experiment).
  15. Maslow’s Hierarchy: Physiological $\rightarrow$ Safety $\rightarrow$ Social $\rightarrow$ Esteem $\rightarrow$ Self-Actualization.
  16. Herzberg’s Two Factor Theory: Hygiene Factors (prevent dissatisfaction, e.g., salary) vs. Motivators (create satisfaction, e.g., recognition).
  17. Theory X: Assumes workers are lazy, need coercion (McGregor).
  18. Theory Y: Assumes workers are self-motivated, seek responsibility.
  19. 360 Degree Appraisal: Feedback from boss, peers, subordinates, and customers.
  20. Job Description: Statement of duties/responsibilities (What the job is).
  21. Job Specification: Statement of qualifications/skills required (Who fits the job).
  22. Job Enrichment: Adding higher-level tasks/responsibility (Vertical expansion).
  23. Job Enlargement: Adding more tasks of same level (Horizontal expansion).
  24. Job Rotation: Moving employees between jobs to reduce boredom.
  25. Fringe Benefits: Non-wage compensations (Car, housing, insurance).
  26. Sweat Equity: Shares given to employees for non-monetary contribution (intellectual property).
  27. Yellow Dog Contract: Agreement where employee promises not to join a union (Illegal).
  28. Wildcat Strike: Strike without union leadership’s authorization.
  29. Sympathetic Strike: Striking to support workers in another industry.
  30. Work-to-Rule: Workers follow rules strictly to slow down production (Form of protest).
  31. Go-Slow: Deliberately working slowly.
  32. Picketing: Workers standing at gate to dissuade others from entering (Peaceful picketing is legal).
  33. Sabotage: Deliberate damage to machinery/goods.
  34. Adjudication: Mandatory settlement of dispute by court/tribunal (Labor Court).
  35. Arbitration: Voluntary settlement by a third party chosen by disputants.
  36. Conciliation: Mediation by third party to help parties reach their own agreement.
  37. Labour Turnover Ratio: (Number of separations / Average workforce) × 100.

Part 11: HRM & Organizational Behavior (High Priority for APFC)

  1. Human Capital: The collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organizational workforce.
  2. Recruitment: Positive process of searching for prospective employees and stimulating them to apply.
  3. Selection: Negative process of rejecting unsuitable candidates to pick the best.
  4. Placement: Putting the selected person at the right job.
  5. Induction/Orientation: Introducing the new employee to the organization’s culture and rules.
  6. Probation: A trial period (usually 6 months to 1 year) before permanent confirmation.
  7. Performance Appraisal: Systematic evaluation of an employee’s job performance (e.g., Bell Curve method).
  8. Potential Appraisal: Identifying hidden talents and future potential of employees.
  9. MBO (Management by Objectives): Peter Drucker; setting goals jointly by manager and subordinate.
  10. BARS (Behaviorally Anchored Rating Scale): Appraisal method comparing performance with specific behavioral examples.
  11. Vroom’s Expectancy Theory: Motivation = Expectancy (Effort $\to$ Performance) × Instrumentality (Performance $\to$ Reward) × Valence (Value of Reward).
  12. Equity Theory (J.S. Adams): Employees compare their Input/Output ratio with others; inequity causes demotivation.
  13. Theory Z (William Ouchi): Japanese management style; focuses on long-term employment and holistic concern for employees.
  14. Managerial Grid (Blake & Mouton): Leadership style based on “Concern for People” vs. “Concern for Production”. (9,9 Team Management is best).
  15. Transactional Leadership: Focuses on rewards/punishments and routine performance.
  16. Transformational Leadership: Inspires and motivates employees to exceed expectations/change the system.
  17. Span of Control: Number of subordinates a manager can effectively supervise.
  18. Unity of Command: Employee should receive orders from only one superior (Fayol’s principle).
  19. Scalar Chain: Line of authority from top to bottom; Gang Plank allows skipping levels for quick communication.
  20. Peter Principle: “In a hierarchy, every employee tends to rise to his level of incompetence.”
  21. Parkinson’s Law: “Work expands so as to fill the time available for its completion.”
  22. Grapevine: Informal communication network (gossip/rumors); fast but often inaccurate.
  23. Johari Window: Psychological tool to understand self-awareness (Open, Blind, Hidden, Unknown quadrants).
  24. Groupthink: When group desire for harmony overrides realistic appraisal of alternatives (bad decision making).
  25. Halo Effect: Judging a person’s total performance based on a single positive trait.
  26. Horn Effect: Judging a person negatively based on a single negative trait.

Part 12: ILO & International Standards

  1. ILO Constitution: Part of the Treaty of Versailles (1919).
  2. Tripartite Structure: ILO is the only UN agency with government, employer, and worker representatives.
  3. International Labour Conference (ILC): The “Parliament of Labour”; meets annually in Geneva to set standards.
  4. Governing Body: The executive council of the ILO; meets 3 times a year.
  5. International Labour Office: The permanent secretariat (headquarters) of the ILO.
  6. Conventions: Legally binding international treaties (if ratified by the country).
  7. Recommendations: Non-binding guidelines.
  8. Core Convention 87: Freedom of Association and Protection of the Right to Organize (India has NOT ratified).
  9. Core Convention 98: Right to Organize and Collective Bargaining (India has NOT ratified).
  10. Core Convention 29: Forced Labour (India Ratified).
  11. Core Convention 105: Abolition of Forced Labour (India Ratified).
  12. Core Convention 138: Minimum Age Convention (India Ratified in 2017).
  13. Core Convention 182: Worst Forms of Child Labour (India Ratified in 2017).
  14. Core Convention 100: Equal Remuneration (India Ratified).
  15. Core Convention 111: Discrimination (Employment and Occupation) (India Ratified).
  16. New Core Conventions (Health & Safety): C155 and C187 added recently as fundamental.
  17. Decent Work Agenda: ILO’s primary goal (Rights, Employment, Social Protection, Social Dialogue).

Part 13: Disciplinary Proceedings & Domestic Inquiry

  1. Principles of Natural Justice: Must be followed in domestic inquiries (Audialteram partem – hear the other side).
  2. Charge Sheet: A document listing the allegations of misconduct against the employee.
  3. Show Cause Notice: Asking employee why action should not be taken against them.
  4. Suspension: Keeping employee away from work pending inquiry (Not a punishment).
  5. Subsistence Allowance: Paid during suspension; 50% of wages for first 90 days; 75% thereafter if delay is not due to worker.
  6. Presenting Officer: Management representative who proves the charges.
  7. Defence Assistant: Co-worker or union rep assisting the accused employee (Lawyer usually not allowed unless Standing Orders permit).
  8. Ex-parte Inquiry: Inquiry conducted in the absence of the employee (if they refuse to attend despite notice).
  9. Perverse Finding: A finding not supported by evidence; can be challenged in court.
  10. Minor Penalties: Censure, withholding increment, fine.
  11. Major Penalties: Dismissal, removal, reduction in rank (demotion).
  12. Dismissal vs. Removal: Dismissal disqualifies from future govt employment; Removal does not.
  13. Termination Simpliciter: Termination without assigning fault (simple discharge); valid if no stigma attached.

Part 14: Social Security & Pensions (Detailed)

  1. Social Security: Protection society provides to individuals against economic distress (sickness, old age, unemployment).
  2. Social Assistance: Funded by tax money; need-based (e.g., Old Age Pension for poor).
  3. Social Insurance: Funded by contributions; right-based (e.g., EPF, ESI).
  4. Beveridge Report (1942): Foundation of the Welfare State and Social Security in UK.
  5. PFRDA: Pension Fund Regulatory and Development Authority (Statutory body under PFRDA Act, 2013).
  6. NPS (National Pension System): Defined Contribution scheme; mandatory for Central Govt employees joined after Jan 1, 2004.
  7. Tier I Account (NPS): Non-withdrawable (Pension account); Tax benefits available.
  8. Tier II Account (NPS): Voluntary savings (Withdrawable); No tax benefit generally.
  9. Atal Pension Yojana (APY): Administered by PFRDA.
  10. APY Entry Age: 18–40 years.
  11. APY Pension: Fixed ₹1000, ₹2000, ₹3000, ₹4000, or ₹5000 per month starting at age 60.
  12. EPFO (Employees’ Provident Fund Organization): Statutory body under Ministry of Labour.
  13. CBT (Central Board of Trustees): Decision-making body of EPFO; Chaired by Union Labour Minister.
  14. EPF Interest Rate: Announced annually by CBT (e.g., roughly 8.1% – 8.25% range).
  15. Commutation of Pension: Withdrawing a lump sum from the pension pot in advance (receiving reduced monthly pension).
  16. Superannuation: Retirement on reaching a fixed age.
  17. VRS (Voluntary Retirement Scheme): Often called the “Golden Handshake”.
  18. Unemployment Allowance: Provided under ESI (Rajiv Gandhi Shramik Kalyan Yojana) for involuntary loss of employment.

Part 15: Women & Maternity Specifics

  1. Miscarriage Leave: Woman is entitled to 6 weeks leave with wages (Maternity Benefit Act).
  2. Tubectomy Operation: Entitled to 2 weeks leave with wages.
  3. Illness arising from pregnancy: Additional 1 month leave allowed.
  4. Medical Bonus: ₹3500 (if no pre-natal confinement/post-natal care provided by employer) – Note: This amount is subject to notification changes.
  5. Night Shift for Women: Permitted under Factories Act (with safeguards) and OSH Code.
  6. Equal Remuneration Act, 1976: Repealed by Code on Wages, but principle remains: No discrimination in pay based on gender for “same work or work of similar nature”.
  7. Same work or work of similar nature: Work where skill, effort, and responsibility are the same.
  8. Sexual Harassment Definition: Physical contact, demand for sexual favors, sexually colored remarks, showing pornography, unwelcomed physical/verbal conduct.
  9. Quid Pro Quo Harassment: “This for that” (Sexual favor in exchange for promotion).
  10. Hostile Work Environment: Creating an intimidating/offensive environment.

Part 16: Building & Other Construction Workers (BOCW)

  1. BOCW Act, 1996: Regulates safety and welfare of construction workers.
  2. Applicability: Establishments employing 10 or more building workers.
  3. Exemption: Does not apply to individual building their own house (cost < ₹10 Lakh).
  4. BOCW Welfare Board: State-level boards that register workers and provide benefits.
  5. Beneficiary Registration: Worker age 18-60, worked for 90 days in past year.
  6. BOCW Cess Act, 1996: Levy of cess (1% to 2%) on cost of construction to fund the Welfare Board.

Part 17: Trade Unions & Industrial Action (Advanced)

  1. Recognition of Union: Not mandatory under Central Law (Trade Union Act 1926), but Code on Wages/IR Code introduces “Negotiating Union”.
  2. Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act (MRTU & PULP Act), 1971: First state act to mandate recognition.
  3. Craft Union: Members belong to the same craft/skill (e.g., Carpenters Union), regardless of industry.
  4. Industrial Union: All workers in the same industry (e.g., Textile workers) regardless of skill.
  5. General Union: Open to all workers (e.g., Jamshedpur Labour Union).
  6. Federation: Group of unions (e.g., INTUC, CITU).
  7. CITU: Centre of Indian Trade Unions (CPM affiliated).
  8. AITUC: All India Trade Union Congress (CPI affiliated).
  9. Stay-in Strike / Pen-down Strike: Workers enter workplace but refuse to work.
  10. Token Strike: Short strike (e.g., 1 day) to signal warning.
  11. Lightning Strike (Catcall Strike): Sudden strike without notice.
  12. Jurisdictional Strike: Dispute between two unions over who should perform certain work.
  13. Political Strike: Strike against government policy, not against employer directly.
  14. Right to Strike: In India, it is a Controlled Legal Right (Statutory), not absolute.
  15. Essential Services Maintenance Act (ESMA): Empower Govt to prohibit strikes in essential services (Police, Transport, Health).

Part 18: Miscellaneous Important Statutes

  1. Plantations Labour Act, 1951: Applies to tea, coffee, rubber, cinchona plantations (5 hectares + 15 persons).
  2. Plantation Welfare: Housing is mandatory responsibility of employer.
  3. Motor Transport Workers Act, 1961: Regulates drivers/conductors (Applies to 5 or more workers).
  4. Sales Promotion Employees Act, 1976: Regulates Medical Representatives (MRs).
  5. Weekly Holidays Act, 1942: Ensures one paid holiday per week in shops/restaurants.
  6. National Holidays: Jan 26, Aug 15, Oct 2 are compulsory paid holidays.
  7. Child Labour Penalty (2016 Amendment): Fine ₹20,000 to ₹50,000.
  8. Rehabilitation Fund (Child Labour): Fine collected is deposited here for the child.
  9. Adolescent in Hazardous Work: Penalty is same as employing child.
  10. Working Journalists Act: Special board (Wage Board) fixes their wages.

Part 19: Rapid Fire Definitions for Exam

  1. Subsistence Wage: Minimum to survive (Animal existence).
  2. Need-Based Minimum Wage: 15th Indian Labour Conference (ILC) norms (3 consumption units, 2700 calories, 72 yards cloth).
  3. Real Wage: Nominal Wage minus Inflation.
  4. Take Home Pay: Gross Salary minus Deductions (PF, Tax).
  5. CTC (Cost to Company): Total expense company spends on an employee (Salary + Benefits + Perks).
  6. Attrition Rate: Rate of employees leaving.
  7. Retention Rate: Rate of employees staying.
  8. Exit Interview: Interview conducted when employee is leaving to find out “why”.
  9. Headhunting: Recruiting senior executives/specialists (often from competitors).
  10. Outsourcing: Contracting out non-core activities.
  11. Offshoring: Moving work to another country.
  12. Flexi-time: Allowing employees to choose their start/end times within core limits.
  13. Job Sharing: Two part-time employees sharing one full-time job.
  14. Telecommuting: Working from home using technology.
  15. Whistleblower: Employee exposing illegal/unethical practices in organization.

Part 20: Final Constitutional & Legal Checks

  1. Labour: Subject in the Concurrent List.
  2. Residuary Power: If a subject is not in any list, Centre has power.
  3. Article 43B: Promotion of Cooperative Societies (97th Amendment).
  4. Bonded Labour System (Abolition) Act, 1976: Abolishes debt bondage (Art 23).
  5. Beedi and Cigar Workers Act, 1966: Regulates home-based workers in beedi rolling.
  6. Dock Workers (Safety, Health and Welfare) Act, 1986: Specific to port workers.
  7. Employer’s Liability Act, 1938: Old act regarding liability for injuries (largely superseded by EC Act).
  8. Fatal Accidents Act, 1855: Provides compensation to families for loss occasioned by actionable wrong.
  9. Public Liability Insurance Act, 1991: Mandatory insurance for handling hazardous substances (immediate relief to victims).
  10. Unorganized Workers’ Social Security Act, 2008: Precursor to the Code on Social Security for unorganized sector.
  11. Employment Inquiry: Collecting data on employment levels.
  12. Labour Bureau: Organization under Ministry of Labour responsible for compiling Labour Statistics (CPI-IW).
  13. V.V. Giri National Labour Institute: Research and training institute in Noida.
  14. Chief Labour Commissioner (Central): Head of the Central Industrial Relations Machinery (CIRM).
  15. Occupier (Factories Act): Cannot be a manager; must be a Director/Partner/Owner.
  16. Factory License: Must be renewed periodically.
  17. Exempted Establishment (PF): Companies allowed to run their own PF trust (must offer benefits $\ge$ EPFO).
  18. Excluded Employee (PF): Drawing wages > ₹15,000 at the time of joining and not already a member.
  19. International Employee (PF): Special rules for foreign workers in India (mandatory coverage unless SSA exists).
  20. Social Security Agreement (SSA): Bilateral agreement between countries to avoid double social security contributions (e.g., India-Belgium).

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