Contract Labor Act 1970

Miscellaneous Sections and Explanations:

Section 1: Applicability

·         It is applicable to every establishment where 20 or more worker are employed

·         Applicable to every contractor who employs 20 or more worker

Note: It shall not apply to establishment in which work only of a casual nature. Following work shall not be deemed of casual nature:

·         If it is performed more than 120 days in preceding 12 months

·         If it is of a seasonal character and is performed more than 60 days in a year.

Section 2: Definitions

·         Section 2(a)- Appropriate Government

o   In relation to an establishment in respect of which the appropriate government under the industrial dispute act 1947 is the central government, central government would be the appropriate government

o   In any other case, the state government would be appropriate government

·         Section 2 (c)- Contractor

o   In relation with establishment, it means a person who undertakes to produce a given result for the establishment, other than a mere supply of goods or articles of a manufacturing to such establishment, through contract labor or who supplies contract labor for any work of the establishment and includes a sub contractor

·         Section 2 (e)- Establishment

o   It means any office or department of the government or local authority

o   It means any place where an industry, trade, business, manufacture or occupation is carried on

·         Section 2 (g)- Principal Employer

o   In case of department of government or local authority, head of the department or office would be the principal employer

o   In case of factory, owner of the factory and where a person has been named as a manager of the factory under the factory act

o   In case of a mine, owner or agent of the mine or manager of the mine would be the principal employer

o   In any other establishment, any person responsible for the supervision or control of the establishment.

·         Section 2 (h)- Wages

o   shall have the meaning assigned to it in clause (vi) of section 2 of the Payment of Wages Act, 1936 (4 of 1936)

·         Section 2 (i)- Workman

o   "Workman" means, any person employed, in or in connection with the work of any establishment to do any skilled, semi-skilled or un-skilled manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be express or implied.

o   But it does not include-

§  Any person who is employed mainly in a managerial or administrative capacity

§  who, being employed in a supervisory capacity draws wages exceeding five hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature

Section 3: Central Advisory Board

Constituted by central government to advice central government on such matters arising out of the administration of this act.

Members

·         Chairman, which is appointed by Central Government

·         Chief labor commissioner (central), ex officio.

·         11-17 member nominated by  Central Government and represent that government, the Railways, Coal Industry Mining Industry, Contractor, Workman and any other interests

Section 4: State Advisory Board

Constituted by state government to advice state government on such matters arising out of the administration of this act.

Members would be appointing same as above, but on state level.

Section 6: Appointment of Registering Officers

Appointed by appropriate government by an order notified in the Official Gazette

Section 7: Registration of certain establishment

·         Every principal employer shall make an application to the registering officer for registration of establishment

·         If the application for registration is complete, registering officer shall issue a certificate of registration

Section 8: Revocation of registration in certain cases

If the registering officer is satisfied, that the registration of any establishment has been obtained by miss-representation or suppression of any material fact, or that for any other reason the registration has become useless or ineffective and, therefore requires to be revoked, the registering officer may, (after giving an opportunity to the principal employer of the establishment to be heard and with the previous approval of the appropriate Government), revoke the registration.

Section 11: Appointment of Licensing Officers

Appointed by Appropriate Government

Section 13: Grant of License

License granted shall be valid for the period specified and may be reviewed from time to time

Section 14: Revocation, suspension and amendment of license

If the licensing officer is satisfied, that:

·         A license granted under section 12 has been obtained by misrepresentation or suppression of any material fact

·         The holder of a license has, without reasonable cause, failed to comply with the conditions subject to which the license has been granted

the licensing officer may, after giving the holder of the license an opportunity of showing cause, revoke or suspend the license or forfeit the sum, if any, or any portion thereof deposited as security for the due performance of the conditions subject to which the license has been granted.

Section 15: Appeal

·         Any aggrieved person by order made under section 7, 8, 12 or 14 may within 30 days from the date on which the order is communicated to him prefer an appeal to appellate officer.  The Appellate officer shall be nominated by Appropriate Government

Section 16: Canteens

·         Appropriate Government may make rules requiring that in every establishment, to which this act applies-

Wherein contract labor numbering 100 or more is ordinarily employed by a contractor, one or more canteen shall be provided and maintained by the contractor

Section 17, 18 & 19: Rest Rooms, Other Facilities and First Aid Facilities

It is duty of contractor to provide facilities of rest rooms, dirking water, urinals and latrines and washing.

He has to provide and maintain first aid facilities also.

Section 20: Liability of Principal Employer in certain Cases

·         If any amenity required to provided under section 16, 17, 18 or 19 and is not provided by contractor within the time, therefore such amenity shall be provided by the principal employer

·         All expenses incurred by principal employer may be recovered from the contractor

Section 21: Responsibility for Payment of Wages

·         Contractor shall be responsible for payment of wages

·         Every principal employer shall nominate a representative to be present at the time of disbursement of wages by the contractor

·         In case contractor fails to make payment principal employer shall be liable to make payments, he can be recovered by contractor

Section 22: Obstructions

Whoever obstructs the inspector for making any examination, inspection or inquiry shall be punishable with imprisonment for a term which may extend to 3 months or with fine which may extend to Rs. 500 or both

Section 23: Contravention of Provisions regarding Employment of Contract Labor

·         Whoever contravenes any provision of this act will be punishable with imprisonment of a term which may extend to 3 months or with fine which may extend to Rs. 1000 or both

·         In case of continuing contravention with an additional fine which may extend to Rs. 100 for every day during which such contravention continuous

Section 24: Other Offences

If any person contravenes any of the provisions of this Act or of any rules made there under for which no other penalty is elsewhere provided, he shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to Rs. 1000, or with both.

Section 25: Offence by Companies

If the person committing an offence under this Act is a company, the company as well as every person in charge of, and responsible to, the company for the conduct of its business at the time of commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly

Section 26: Cognizance of Offence

No court shall take cognizance of any offence under this Act except on a complaint made by, or with the previous sanction in writing of, the inspector and no court inferior to that of a Presidency Magistrate or a Magistrate of the first class shall try any offence punishable under this Act

Section 27: Limitation of Prosecution

No court shall take cognizance of an offence punishable under this Act unless the complaint thereof is made within three months from the date on which the alleged commission of the offence came to the knowledge of an inspector

Section 28: Inspecting Staff

·         The appropriate Government may, by notification in the Official Gazette, appoint such persons as it thinks fit to be inspectors for the purposes of this Act

·         an inspector may, within the local limits for which he is appointed –

o   enter, at all reasonable hours, with such assistance (if any),

o   examine any person whom he finds in any such premises or place and who, he has reasonable cause to believe, is a workman, employed therein,

o   require any person giving out work and any workman, to give any information, which is in his power to give with respect to the names and addresses of the persons to, for and from whom the work is given out or received, and with respect to the payments to be made for the work,

o   seize or take copies of such register, record of wages or notices or portions thereof as he may consider relevant in respect of an offence under this Act,

o   exercise such other powers as may be prescribed

·         Any information required to produce any document or thing or to give any information required by an inspector under sub-section (2) shall be deemed to be legally bound to do so within the meaning of section 175 and section 176 of the Indian Penal Code (45 of 1860).

Section 29: Registers and other Records to be maintained

Every principal employer and contractor shall maintain such register giving particulars of-

o   Contract labor employed

o   The nature of work performed

o   Rates of Wages

Section 30: Effect of Law & Agreement Inconsistent with this act

The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law or in the terms of any agreement or contract of service, or in any standing orders applicable to the establishment whether made before or after the commencement of the Act

Section 31: Power to Exempt in Special Cases

The appropriate Government may, in the case of an emergency, direct, by notification in the Official Gazette, that subject to such conditions and restrictions, if any, and for such period or periods, as may be specified in the notification, all or any of the provisions of this Act or the rules made there under shall not apply to any establishment or class of establishments or any class of contractors

Section 32: Protection of Action taken under this Act

No suit, prosecution or other legal proceedings shall, lie against any registering officer, licensing officer or any other Government servant or against any member of the Central Board or the State Board, as the case may be, for anything which is in good faith done or intended to be done in pursuance of this Act or any rule or order made there under

Section 33: Power to give Direction

The Central Government may give directions to the Government of any State as to the carrying into execution in the State of the provisions contained in this Act

Section 34: Power to Remove Difficulties

If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, as appears to it to be necessary or expedient for removing the difficulty

Section 35: Power to Make Rules

The appropriate Government may, subject to the condition of previous publication, make rules for carrying out the purposes of this Act

Industrial Relations

Definition:

Industrial Relations (IR) is concerned with the relationship between management and workers and the role of regulatory mechanism in resolving any industrial dispute.

IR Covers the following areas:

·         Collective Bargaining

·         Role of Management, Unions and Government

·         Machinery for resolution of industrial dispute

·         Industrial grievance and disciplinary policy and practice

·         Labour Legislation

·         Industrial relations training

Approaches to Industrial Relations:

There are three various approaches to Industrial Relations. These are:

1.       Unitary

2.       Pluralistic

3.       Marxist

Unitary

Unitary approach believes in mutual cooperation and teamwork where conflicts are results of poor management and of temporary nature. Following are the characteristics of unitary approach:

·         IR is grounded in mutual cooperation, individual treatment, team work and shared goals.

·         Work conflict is seen as temporary aberration, resulting from poor management

·         Union cooperate with the management

·         Management’s right to manage is accepted

·         Assumption behind this approach is that everyone benefits when the focus is on common interest and promotion of harmony

·         Conflict in the form of strikes is not only regarded as necessary but destructive

·         Emphasis on reactive IR strategy, seek direct negotiation with employees

Pluralistic

Pluralistic approach perceives organization as coalitions of competing interests, where management’s role is to mediate amongst the different interest group. Characteristics of Pluralistic approach are:

·         Trade Unions are legitimate representatives of employee’s interest

·         Legitimacy of management’s authority is not automatically accepted

·         Conflict is understood as inimitable and as conducive for innovation and growth

·         Employees join union to protect their interests and influence decision making by management

·         Strong union is necessary

·       Assumption behind this approach is that industrial conflict in inimitable and it needs to be contained within the social mechanism of collective bargaining, conciliation and arbitration

Marxist:

Marxist approach takes pluralistic approach to another level. Like pluralistic approach it also believes that conflict is inimitable but unlike pluralistic approach it sees conflict as a product of capitalist society. Characteristics of Marxist approach are:

·         Conflicts are inimitable and are products of capitalist society

·         It focuses on the type of society in which an organization functions

·         Conflict arises because of the division in the society between those who use resources and those who have only labour to offer

·         Conflict is equated with political and social unrest

·         Trade unions are seen as labour reaction to exploitation by capital and a weapon to bring about a revolutionary social change

Components of Emotional Intelligence

Emotional Intelligence:

Emotional Quotient (EQ) relates to the ability or skill to understand, evaluate and manage the emotions of one’s self and others. It provides competency to balance emotions and reason so as to maximize long term happiness and relationships

Components of Emotional Intelligence:

Our emotional intelligence determines our potential for learning the practical skills based on the five elements:

·         Self-awareness

·         Motivation

·         Self-regulation

·         Empathy

·         Social Skills

Our emotional competence shows how much of that potential we have translated into on-the-job capabilities. Following diagram is showing components of Emotional Intelligence:

·         Self Awareness- Self awareness means knowing one’s internal state, preferences, resources and intuition. We can further divide self awareness into emotional awareness, accurate self assessment and self confidence.

a.       Emotional Awareness- It is recognizing one’s emotions and their effect.

b.      Accurate Self Assessment- This means knowing strengths and weakness about oneself.

c.       Self Confidence- It is a strong sense of one’s self worth and capabilities.

·         Self Regulation- Self regulation is the process of managing one’s internal state, impulses and resource. This could be into following parts:

a.       Self Control- self control means keeping disruptive emotions and impulses in check.

b.      Trustworthiness- it means maintaining standards of honesty and integrity.

c.       Conscientiousness- Taking responsibility for personal performance

d.      Adaptability- Flexibility in handling change.

e.      Innovation- Being comfortable with novel ideas, approaches and new information.

·         Motivation- Motivation is emotional tendency that guide or facilitate reaching goals. The dictionary meaning of motivation is “The psychological feature that arouses an organism to action toward a desired goal; the reason for the action; that which gives purpose and direction to behaviour”. Following s are parts of motivation:

a.       Achievement Drive- Striving to improve or meet a standard of excellence.

b.      Commitment- Aligning with the goals of a group or organization.

c.       Initiative- Readiness to act on opportunities.

d.      Optimism- Persistence in pursuing goals despite obstacles and setbacks.

·         Empathy- Empathy refers to the ability to recognise another’s emotional state. It can divided into following parts:

a.       Understanding Others- Sensing other’s feelings and perspectives and taking an active interest in their concerns.

b.      Developing Others- This means sensing others’ development needs and bolstering their abilities.

c.       Service Orientation- This refers to anticipating, recognising and meeting customer needs.

d.      Leveraging Diversity- Leveraging diversity means cultivating opportunities through different kind of people.

e.      Political Awareness- This refers to reading group’s emotional currents and power relationships.

·         Social Skills- Social skills refer to our adeptness at inducing desirable responses in others. Followings are parts of Social Skills:

a.       Influence- Wielding effective tactics for persuasion.

b.      Communication- Listening openly and sending convincing messages.

c.        Conflict Management- Negotiating and resolving disagreements.

d.      Leadership- Inspiring and guiding individual and groups

e.      Change Catalyst- Initiating and managing change.

f.        Building Bonds- Nurturing instrumental relationships.

g.       Collaboration & Cooperation- Working with others toward shared goals.

h.      Team Capabilities- Creating group synergy in pursuing collective goals.

Trade Union Act- 1926

Extent and Commencement-

·         It extent to whole of India.

·         It came into force on 1-6-1927

Objective- An act to provide for the registration of trade unions and in certain respects to define the law relating to registered trade unions.

Definitions: 

1.       Appropriate Government- For the trade union whose objects are not confined to one state, the appropriate government will be the central government, for others, it will be state government.

2.       Trade Dispute [Sec 2 (g)] - Any dispute between employer and workmen OR between workmen and workmen OR between employer and employer which is connected with the employment or non-employment, or the terms of employment or the conditions of labor, of any person.

Explanation- Any dispute, which occurs in the organization, with or without in related to employment termed as Trade Dispute.

3.       Workmen- All persons employed in trade or industry whether or not in the employment of the employer with whom the trade dispute arises.

4.       Trade Union [Sec 2(h)] – combination whether temporary or permanent formed primarily for the purpose of-

a.    Regulating the relation between workmen and employer OR between  workmen and workmen OR between employer and employer.

b.      OR for imposing condition on the conduct of any trade or business.

c.       And include any federation of two or more trade unions.

Registration (Sec. 3 to Sec. 10)

1.       Appointment of Registrar [Sec. 3] - appointed by appropriate government for each state, may also appoint additional and deputy registrar.

2.       Mode of Registration [Sec. 4] – Any seven (7) or more member of Trade Union-

                                                               i.      By subscribing their names to the rules of Trade Union

                                         ii.      By complying with the provisions of the act with respect to registration.

3.       Application for Registration [Sec. 5] – shall made to registrar and shall accompanied by-

                                                               i.      Copy of rules of Trade Union

                                                             ii.      Statement of following particulars namely:

1.    Names, Occupation and Addresses of the members making the application.

2.    Name of the Trade Union and Address of its Headquarter.

4.       Provisions to be contained in the rules of Trade Union [Sec. 6] – Trade Union shall not be entitled to registration unless the executive thereof is constituted in accordance with provision of this act and the rules provided for following matters-

                                                               i.      Name of Trade Union

                                                             ii.      Objective for which Trade Union has been established

                                                    iii.     Purpose for which the general funds of the Trade Union shall be applicable

5.       Registration [Sec. 8] – After being satisfied by all requirements registrar shall register the Trade Union by entering in a register.

6.       Certificate of Registration [Sec. 9] – The registrar registering a Trade Union, shall issue a certificate in prescribed form.

7.       Cancellation of Registration [Sec. 10] – Certificate of registration may be withdrawn or cancelled by registrar-

                                                              i.      On application of Trade Union

                                                      ii.      If registrar is satisfied that the certificated has been obtained by  fraud or mistake

                                                  iii.      If registrar is satisfied that a registered Trade Union of workmen ceases to have the requisite number of members

Qualification for being member of Trade Union-

·         Age of 18 or 18+ Years

·         Has NOT been convicted by a court of India of any offence

Power to make regulation [Sec. 29] – Appropriate government has power to make regulation on the following matters-

·         Manner/Way of registration

·         Fee payable on registration

·         Transfer of registration in case Trade Union has changed its headquarter from one state to another

·         Qualification of an auditor

Certain Acts not to apply to registered Trade Unions-

1.       The Societies Registration Act, 1860 (21 of 1860);

2.       The Co-operative Societies Act, 1912 (2 of 1912);

3.       The Companies Act, 1956 (1 of 1956)