Labour law
🌟 UNIT 1 — DETAILED SHORT
ANSWER QUESTIONS
1. Explain the significance of Article 14 and 16 in
employment and labour relations.
Article 14 – Equality Before Law
Article 14 states that the State shall not deny to any person equality before the law or equal
protection of the laws.
In labour relations, this means:
• Employers (especially government employers) must treat all workers fairly.
• No discrimination based on caste, religion, sex, place of birth, etc.
• Rules relating to recruitment, promotion, transfers, suspension and termination must
follow a fair procedure.
• Arbitrary dismissal or discriminatory practices can be challenged in court.
Article 16 – Equality of Opportunity in Public Employment
Article 16(1) and 16(2) guarantee:
• Equal opportunity for employment under the State.
• No discrimination in public jobs.
Special provisions:
• Article 16(4) allows reservations for backward classes.
• Article 16(4A) allows reservation in promotions for SC/ST.
Significance in Labour Law
• Ensures fair recruitment in government departments, PSUs, and public institutions.
• Prevents discriminatory labour practices.
• Promotes merit-based and transparent hiring.
• Provides constitutional protection to workers against arbitrary actions.
• Helps courts strike down unfair employment policies.
2. How do Fundamental Rights provide protection to
industrial workers?
Fundamental Rights safeguard workers from exploitation and ensure fairness. Key
protections include:
1. Right to Equality (Articles 14–18)
• Prohibits discrimination in wages, promotions, or service conditions.
• Prevents caste- or religion-based division of labour.
2. Right to Freedom (Article 19)
Workers get:
• 19(1)(a) – Freedom of speech → Raise concerns, complain.
• 19(1)(c) – Right to form unions → Essential for collective bargaining.
• 19(1)(g) – Freedom to work in any lawful occupation.
3. Right to Life & Dignity (Article 21)
• Safe working environment.
• Reasonable working hours.
• Protection from hazardous conditions.
• Right to livelihood (Olga Tellis case).
4. Right Against Exploitation (Articles 23–24)
• Prohibits forced labour (bonded labour).
• Prohibits employment of children under 14 in factories.
5. Constitutional Remedies (Article 32, 226)
Workers or unions can approach High Court/Supreme Court against unfair labour practices.
Thus, Fundamental Rights form the backbone of labour justice in India.
3. Discuss the importance of Article 19(1)(c) with respect
to trade unions.
Article 19(1)(c) gives the constitutional right to form associations and unions.
Importance for Trade Unions
• Legal basis for formation of trade unions in India.
• Workers can collectively negotiate wages, working hours, safety, and other
conditions.
• Protects union activists from victimization and unfair disciplinary action.
• Strengthens collective bargaining → Workers can collectively demand rights.
• Provides legitimacy to unions under the Trade Unions Act, 1926 and Industrial
Relations Code, 2020.
Limitations under Article 19(4)
The State may impose “reasonable restrictions” in the interest of:
• public order,
• morality,
• sovereignty of India.
So, the right to form a union is fundamental, but right to recognition or right to strike is not
a fundamental right.
4. Briefly explain the meaning of socio-economic justice as
envisaged in the Constitution.
Socio-economic justice is a core objective of the Indian Constitution, especially reflected in
the Preamble and Directive Principles (Part IV).
Meaning
• Fair distribution of wealth and opportunities.
• Removing inequalities between rich and poor.
• Protecting vulnerable sections like labourers.
• Ensuring dignity, humane working conditions, and minimum standard of living.
Constitutional Basis
• Preamble – Justice: social, economic, political.
• Articles 38 & 39 – Reduce inequalities, ensure adequate livelihood, prevent
concentration of wealth.
• Article 41–43A – Right to work, just conditions of work, living wage, participation of
workers in management.
In Labour Field
• Minimum Wages Act, Bonus Act, Social Security Codes.
• Protection from exploitation, unfair dismissal, unsafe conditions.
Thus, socio-economic justice is the foundation of all labour welfare laws in India.
5. How do industrial laws help in achieving socio-economic
justice for weaker sections?
Industrial laws directly protect workers—who are often economically weaker—by ensuring:
1. Fair wages
Minimum Wages Act, Code of Wages ensure workers receive fair pay.
2. Safe working conditions
Factories Act provides safety rules, health measures, working hours.
3. Job security
• Restrictions on lay-off, retrenchment, and closure under ID Act / IR Code.
• Compensation rules protect workers from sudden job loss.
4. Social security
• Provident Fund
• ESI
• Gratuity
• Maternity Benefits
• Worker Reskilling Fund
These ensure basic financial protection.
5. Protection from exploitation
• Prohibition of child labour.
• Prevention of bonded labour.
• Regulated working hours and overtime.
Thus, industrial laws operationalize the constitutional goal of economic fairness and
dignity.
6. Why was there a need to repeal and consolidate
multiple labour legislations in India?
Before the Labour Codes (2020), India had over 40 central labour laws.
Problems
• Overlapping definitions.
• Confusing compliance for employers.
• Different authorities for similar matters.
• Delays and litigation for workers.
• Difficult for small businesses to follow.
Reasons for Consolidation
• Simplify laws into 4 Codes: Wages, Social Security, IR, OSH.
• Provide uniform definitions (e.g., “wages”).
• Reduce bureaucracy and administrative burden.
• Improve “Ease of Doing Business”.
• Make worker benefits easier to enforce.
Thus, consolidation modernizes and simplifies the labour system.
7. What are the drawbacks of having multiple overlapping
labour laws?
• Contradictory definitions (e.g., wages defined differently in 8+ laws).
• Duplication of compliance (multiple registers and licenses).
• Confusion for employers, especially small units.
• Frequent litigation due to unclear provisions.
• Delays in labour justice.
• Workers often unaware of their rights due to excessive complexity.
The Labour Codes aim to fix these drawbacks.
8. Explain the structure of ILO and its tripartite
character.
ILO has a unique tripartite structure, meaning three groups participate:
1. Governments – 187 member countries
2. Employers – Employers’ organizations
3. Workers – Trade unions
These three groups work equally in ILO decision-making.
Main organs of ILO
1. International Labour Conference (ILC)
o Parliament of ILO
o Makes Conventions and Recommendations
2. Governing Body
o Executive body
o Sets agenda, budget
3. International Labour Office
o Permanent secretariat
o Conducts research, training, inspections
Significance
• Ensures balanced labour policies.
• Gives workers and employers a voice at international level.
9. How do ILO conventions influence Indian labour laws?
ILO conventions guide Indian labour reforms by:
• Setting international standards on wages, safety, equality.
• Encouraging India to update outdated labour laws.
• Inspiring laws on:
o Child labour prohibition
o Maternity benefits
o Minimum wages
o Right to association
o Occupational safety
India also adopts ILO recommendations in new Labour Codes for global compliance.
10. What are the main objectives of ILO?
• Promote social justice.
• Protect workers’ rights worldwide.
• Fix international labour standards.
• Improve working conditions (safety, hours, welfare).
• Promote decent work and employment.
• Eliminate forced labour, child labour, and discrimination.
ILO works to ensure workers everywhere get dignity and fair treatment.
🌟 UNIT 2 — DETAILED SHORT
ANSWER QUESTIONS
1. Explain the objectives behind the enactment of the Code
of Wages, 2019.
Objectives:
• Combine 4 laws (Minimum Wages Act, Payment of Wages Act, Payment of Bonus
Act, Equal Remuneration Act).
• Provide uniform wage rules across all sectors.
• Ensure timely payment of wages.
• Provide minimum wages for all workers.
• Simplify compliance and reduce confusion.
• Promote gender equality in wages.
2. What is the significance of consolidating wage-related
legislations?
• Removes contradictions between laws.
• One single definition of wages → easier for employers and workers.
• Uniformity across states and industries.
• Better enforcement.
• Simpler compliance for businesses.
• Ensures workers receive fair, timely wages.
3. How does the Code ensure uniformity in wage
definitions?
• Introduces one universal definition of "wages".
• Applies the same definition for bonus, provident fund, maternity benefit, gratuity.
• Ensures allowances cannot exceed 50% of total wages.
• Prevents employers from artificially lowering “basic wages”.
Uniform wage definition ensures fairness and transparency.
4. State three salient features of the Code of Wages, 2019.
1. One definition of wages for all purposes.
2. Floor wage introduced (Section 9).
3. Timely payment of wages to all employees.
4. Equal remuneration to men and women.
5. Digital payment of wages allowed.
Any three are valid.
5. How does the Code of Wages ensure equal
remuneration for men and women?
Under Section 3, the Code provides:
• No employer shall pay unequal wages to men and women for same or similar work.
• No gender discrimination during recruitment.
• Protection from unfair treatment based on sex.
Ensures gender fairness in the workplace.
6. Explain the components included in ‘wages’ under the
new Code and the concept of floor wage.
Wages include:
• Basic Pay
• Dearness Allowance
• Retaining Allowance
Wages exclude:
• HRA
• Overtime
• Bonus
• Conveyance allowance
• PF contribution
(Exclusions cannot exceed 50% of wages)
Floor Wage
• Fixed by Central Government
• State cannot fix minimum wage lower than floor wage
• Ensures national wage protection for workers
7. Explain various legitimate deductions permitted under
the Code of Wages, 2019.
Permitted deductions include:
• Fines
• Absence from duty
• Damage/loss caused by worker
• Accommodation charges
• Recovery of loans/advances
• PF/ESI contributions
• Income tax
• Cooperative society dues
Total deductions cannot exceed 50% of wages.
🌟 UNIT 3 — DETAILED SHORT
ANSWER QUESTIONS
1. Write a short note on Central Advisory Board under
the Code of Wages, 2019.
Central Advisory Board consists of:
• Employers’ representatives
• Employees’ representatives
• Independent experts
• State government representatives
• One-third women members
Functions
• Advise Central Government on minimum wages.
• Recommend floor wages.
• Give suggestions on wage policies, working hours, gender equality.
• Review wage conditions across sectors.
The Board ensures balanced wage policymaking.
2. Brief about State Advisory Board under the Code of
Wages, 2019.
State Advisory Board includes:
• State-level employers and workers
• Government representatives
• Independent experts
• Women representatives
Functions
• Recommend state minimum wages based on local conditions.
• Review wage issues of different industries within the state.
• Help government implement wage policies.
• Coordinate with Central Advisory Board.
Ensures wage decisions are suitable to state needs.
🌟 UNIT 4 – DETAILED SHORT
ANSWER QUESTIONS
1. Brief the significance of Works Committee under the
Code on Industrial Relations, 2020.
A Works Committee is a body consisting of representatives of employers and workers, set
up in industrial establishments with 100 or more workers (as per the IR Code, 2020).
Significance
• Promotes good relationship between employer and employees.
• Helps solve day-to-day workplace problems such as working conditions, work
timings, amenities, discipline, etc.
• Prevents disputes from becoming serious because issues are resolved internally.
• Encourages a spirit of co-operation and reduces conflicts.
• Helps maintain industrial peace and improves productivity.
• Acts as a communication bridge between management and workers.
Thus, it reduces industrial disputes and improves workplace harmony.
2. Summarise the criteria for registering a trade union.
Under the Trade Unions Act, 1926 (still relevant under IR Code):
Criteria
1. Minimum number of members
o At least 10% of workers or 100 workers, whichever is less, must be
members.
o Minimum 7 persons are necessary to apply for registration.
2. Application Requirements
o Submit rules/constitution of the union.
o List of office bearers.
o Minutes of meeting forming the union.
o Address of the union head office.
3. Name of the Union
o Must not be identical to an existing registered union.
4. Registration by Registrar
o If all conditions are fulfilled, Registrar issues a Certificate of Registration.
Once registered, the trade union becomes a legal entity with rights and privileges.
3. Provisions regarding cancellation and dissolution of a
trade union.
A. Cancellation by Registrar
Registration may be cancelled if:
• The trade union obtained registration by fraud or mistake.
• It contravenes the Trade Unions Act or its own rules.
• It becomes defunct (no activity for long).
• It fails to maintain required membership percentage.
Registrar must give notice and opportunity of hearing.
B. Dissolution by Union Itself
• Union may dissolve as per its own rules.
• A notice of dissolution signed by 7 members and office bearers must be sent to
Registrar.
• Registrar verifies legality and records dissolution.
4. Explain the difference between “legal strike” and
“justified strike.”
Legal Strike
A strike is legal when it follows the procedure of the law:
• Notice is given (14 days’ notice in public utility services).
• No strike during conciliation or adjudication.
• No strike in violation of IR Code restrictions.
Justified Strike
A strike is justified when the reason for the strike is fair, even if procedure is not perfectly
followed.
Key Difference
• Legality = procedure followed
• Justification = reason is fair and legitimate
A strike can be legal but unjustified, or illegal but justified (depending on circumstances).
5. What is the penalty for participating in an illegal strike
or lockout under the Industrial Relations Code?
Under the IR Code, 2020:
Penalty for Workers (Illegal Strike)
• Fine up to ₹10,000.
• May also face disciplinary action by employer.
Penalty for Employers (Illegal Lockout)
• Fine up to ₹50,000 or more depending on severity.
Repeated offences attract higher fines.
6. Define a “strike” under Section 2(zk) of the Industrial
Relations Code, 2020. How does it differ from the
Industrial Disputes Act, 1947?
Definition (Section 2(zk))
Strike means:
• Cessation of work by a group of workers acting together,
• OR refusal to work,
• OR slowdown of work (Go-Slow),
• OR deliberate breach of contract.
Difference from ID Act, 1947
The IR Code includes:
• “Concerted casual leave” taken by workers as a form of protest.
This was not included explicitly in ID Act, 1947.
Thus, definition is wider under IR Code.
7. What is a “sympathetic strike”? Brief your opinion.
A sympathetic strike happens when workers of one industry strike in support of workers of
another industry who are already on strike.
Example
If bank workers strike in support of factory workers—not for their own demands.
Opinion
• Shows unity among workers.
• But may affect industries not directly involved.
• Difficult to justify legally unless demands relate to own workplace.
• Often treated as unjustified unless linked to genuine cause.
8. Brief about “apprehension of dispute” as a ground of
lockout.
Under IR Code, a lockout may be declared:
• When the employer reasonably apprehends (expects) a serious dispute,
• Which may cause damage to property or disrupt discipline.
Example
If workers threaten violence or illegal strike → employer may lockout to protect safety.
But lockout must still follow legal procedure.
9. What is an industrial dispute?
An industrial dispute is a disagreement between:
• Employer and workers, or
• Employer and employer, or
• Worker and worker,
Regarding:
• Wages
• Working hours
• Employment
• Conditions of work
• Dismissal, retrenchment, or reinstatement.
It must be related to the terms of employment or non-employment.
10. Mention any three key elements of a lockout.
1. Temporary closing of workplace.
2. Suspension of work by employer.
3. Refusal to employ workers until dispute resolves.
Lockout is the employer’s weapon (just like strike is the workers’ weapon).
11. Explain the time periods wherein a strike or lockout
cannot be called.
Under the IR Code, no strike or lockout is allowed:
1. During conciliation proceedings and 7 days after.
2. During arbitration or tribunal proceedings and 60 days after.
3. When a settlement or award is in force.
4. Without giving 14 days’ notice in public utility services.
12. Write a short note on eligibility for layoff
compensation under the IR Code, 2020.
A worker is eligible if:
• He has completed 1 year of continuous service, and
• He is not at fault for the lay-off.
Compensation
• 50% of basic wages + dearness allowance for the lay-off period.
Not eligible if:
• He refuses alternative employment.
• He is a badli or casual worker.
13. Distinguish between “lay-off” and “retrenchment.”
Lay-Off
• Temporary inability of employer to give work.
• Reasons: shortage of raw material, breakdown of machinery.
• Worker remains on rolls.
• Gets compensation (50% wages).
Retrenchment
• Permanent termination of employee for economic reasons.
• Worker removed from service.
• Compensation under Section 70 must be paid.
14. Explain the meaning of ‘continuous service’ and its
relevance for retrenchment compensation.
Continuous Service
A worker is in continuous service if:
• He works for 1 full year, and
• Includes paid leave, sick leave, accident leave, strikes not illegal, lockouts not due to
worker’s fault.
Relevance
To get retrenchment compensation, a worker must complete 1 year of continuous service.
It determines eligibility for:
• Lay-off benefit
• Retrenchment compensation
• Gratuity, etc.
15. What is the compensation payable to a retrenched
worker under Section 70(b)?
Under Section 70(b) of the IR Code:
Retrenchment compensation =
👉 15 days’ average wages × number of completed years of service
(or such number of days notified by Government)
16. What is the principle of “Last Come, First Go”?
This principle means:
• The last worker hired must be the first worker retrenched.
It ensures fairness and prevents victimization or bias by employers.
17. Who is eligible for preference in re-employment under
Section 72?
Under Section 72 of IR Code:
• A retrenched worker must be given first preference if the employer decides to hire
new workers within 1 year of retrenchment.
This protects workers from long-term unemployment.
18. What is meant by “partial closure”?
When an employer closes a part of the undertaking (not the whole factory), it is called
partial closure.
Example
Closing one department while keeping others running.
Workers of the closed part get compensation similar to closure rules.
19. Distinguish between closure and lockout.
Closure
• Permanent shutting down of business.
• No intention to reopen.
• Workers get closure compensation.
Lockout
• Temporary stoppage of work.
• Tool to force workers to accept employer demands.
• Workplace may reopen after settlement.
🌟 UNIT 5 – SHORT ANSWER
QUESTION
1. Write a short note on the nature of Standing Orders.
Standing Orders are written rules that govern:
• Work timings
• Discipline
• Leave rules
• Misconduct and penalties
• Grievance redressal
• Shift working
• Termination procedures
Nature
• They are statutory and binding on both employer and workers once certified.
• They bring certainty, uniformity, and transparency in service conditions.
• No employment contract can override Certified Standing Orders.
• Aim to reduce disputes by clearly stating rights and duties.
🌟 UNIT 1 – LONG / ESSAY ANSWERS
(250–300 WORDS EACH)
1. 1. Critically examine the constitutional
framework for labour welfare in India.
• The Constitution of India provides a strong base for labour welfare.
• Fundamental Rights protect workers from discrimination (Art. 14, 15, 16), ensure
freedom of unions (Art. 19), and guarantee dignity (Art. 21).
• Directive Principles guide the government to ensure fair wages, humane conditions,
and social security (Art. 38, 39, 41, 42, 43).
• Labour is a Concurrent Subject, so both Centre and States can make labour laws.
• Many labour laws like Minimum Wages Act, Factories Act and new Labour Codes
are based on these constitutional principles.
• Weakness: DPSPs are not enforceable in court; implementation depends on
government action.
Conclusion
The Constitution gives a strong moral and legal foundation for labour welfare, but actual
results depend on proper enforcement.
2. Role of Directive Principles of State
Policy (DPSPs) in shaping Indian labour
laws.
• DPSPs are guidelines for government to create a welfare state.
• Articles 38, 39, 41, 42, 43, 43A directly relate to workers.
• They require the State to ensure:
o Fair wages
o Equal pay for men and women
o Human working conditions
o Maternity relief
o Worker participation in management
o Social security
• Most labour laws—Minimum Wages Act, Maternity Benefit Act, Equal
Remuneration Act and Labour Codes—are inspired by DPSPs.
• Though not legally enforceable, courts use DPSPs to interpret labour rights liberally.
Conclusion
DPSPs strongly influence India’s labour laws by promoting fairness, security, and humane
treatment.
3. “The Constitution is the foundation of
labour and industrial welfare legislation.”
Explain.
• Fundamental Rights ensure equality, non-discrimination, safety, and dignity for
workers.
• Article 19(1)(c) protects union formation; Article 21 protects safe working conditions.
• DPSPs require the government to ensure fair wages, social security, and worker
welfare.
• Labour being in the Concurrent List allows both governments to create supportive
laws.
• Courts use constitutional principles to interpret labour laws in favour of workers.
• Laws like the Wage Code, IR Code, Social Security Code, and OSH Code are based
directly on constitutional values.
Conclusion
The Constitution acts as the backbone of all labour and welfare laws, ensuring justice and
protection for workers.
4. Relevance of socio-economic justice in
modern labour jurisprudence.
• Socio-economic justice means reducing inequality and giving fair opportunities to all.
• Workers often belong to weaker sections; labour laws protect them from exploitation.
• Minimum wages, equal pay, safety norms, maternity benefits and social security help
achieve this justice.
• Modern labour jurisprudence focuses on dignity, security, and humane conditions.
• Courts also interpret laws in favour of fairness and worker protection.
• New Labour Codes include floor wage, gender equality, gig worker protection—
showing socio-economic justice in action.
Conclusion
Socio-economic justice is central to labour laws, ensuring fairness and dignity for all
workers.
5. Contribution of labour legislation in
reducing inequalities in Indian society.
• Labour laws help reduce economic and social inequalities.
• Minimum wage laws prevent exploitation of poor workers.
• Equal Remuneration ensures equal pay for men and women.
• Social security laws (PF, ESI, gratuity) protect workers during illness, old age, or
accidents.
• Industrial laws ensure job security, notice, and compensation.
• Maternity benefits and safety laws support vulnerable groups.
• Labour Codes extend protection to informal and gig workers.
Conclusion
Labour legislation acts as a tool of social justice by reducing income gaps and protecting
weaker sections.
6. Industrial laws as an instrument of social
justice – Discuss.
• Industrial laws aim to balance employer power and worker rights.
• They ensure fair wages, safe working conditions, limited working hours, overtime
rules, and compensation.
• They protect workers from arbitrary dismissal through lay-off and retrenchment rules.
• Collective bargaining and trade unions empower workers.
• Social security laws provide financial stability during illness, accidents, and
retirement.
• Dispute settlement systems promote peace and fairness.
Conclusion
Industrial laws protect dignity, fairness, and equality, making them powerful instruments of
social justice.
✅ UNIT 2 – SHORTENED ESSAY
ANSWERS (Simple English)
1. Has repeal of old labour laws weakened
or strengthened workers’ rights?
• Earlier there were 29 different labour laws → confusing, overlapping, difficult to
follow.
• The Labour Codes simplify these laws into 4 codes, including the Code of Wages.
Strengthened workers’ rights
• One clear wage definition → reduces manipulation.
• Minimum wages apply to all workers, not selected industries.
• Floor wage protects lowest-paid workers.
• Faster dispute settlement and digital wage systems.
Weakened workers’ rights
• Stricter strike rules → reduces bargaining power.
• Retrenchment threshold increased to 300 workers, reducing job security.
• Enforcement depends heavily on states.
Conclusion
The changes improve clarity and coverage, but job security becomes weaker for some
workers.
2. “Codification aims at simplification and
modernization.” Explain.
• Earlier, wage laws and definitions were scattered and confusing.
• Codification puts everything into one single law, reducing complexity.
How it simplifies
• One wage definition for all purposes.
• One return, one register, one compliance system.
• Same rules for all establishments.
How it modernizes
• Digital wage payments.
• Online inspections and records.
• Recognizes gig and platform workers.
• Introduces national floor wage based on living standards.
Conclusion
Codification makes wage laws easy to understand, modern, digital, and uniform,
benefiting both workers and employers.
3. Objectives & importance of the Code of
Wages, 2019
Objectives
• Give every worker fair wages.
• Introduce one wage definition.
• Ensure timely wage payments.
• Promote gender equality in wages.
Importance
• Minimum wages apply to all workers, not only scheduled sectors.
• Floor wage ensures no exploitation of poor workers.
• Reduces legal disputes about salary structure.
• Gender equality strengthened under Section 3.
• Encourages transparency through digital payments.
Conclusion
It creates a fair, simple, and equal wage system for Indian workers.
4. How does the Code promote uniformity
in wage regulation?
• One clear definition of “wages” used across all laws.
• National floor wage ensures minimum wage uniformity across states.
• Minimum wages apply to all jobs, not just listed ones.
• Uniform timeline for wage payment:
o Monthly: before 7th
o Weekly: before 7 days
• One register and one return reduce confusion.
Conclusion
The Code creates a single, uniform wage system across India, replacing multiple confusing
laws.
5. Salient features of the Code of Wages,
2019
• Applies to all workers, formal + informal.
• One wage definition (basic + DA).
• Introduction of national floor wage.
• Mandatory timely wage payment.
• Minimum wages must be reviewed every 5 years.
• Equal pay for equal work (no gender discrimination).
• Simplified registers & returns.
• Penalties for wage delays or wrongful deductions.
Conclusion
The Code focuses on fairness, equality, and modern wage systems.
6. Strengths & weaknesses of the Code of
Wages, 2019
Strengths
• Universal minimum wage protection.
• Fair wage system due to uniform definition.
• Better gender equality.
• Digital transparency.
Weaknesses
• Floor wage may be too low in some states.
• Allowance limit (50%) may reduce take-home salary.
• Informal workers may not know their rights.
• Compliance depends on strict enforcement.
Conclusion
The Code is strong on clarity and fairness, but needs good enforcement to fully help
workers.
7. Significant changes brought by the Code
of Wages, 2019
• One wage definition for PF, bonus, gratuity.
• Covering all workers under minimum wages.
• National floor wage introduced.
• Stricter rules for timely wage payments.
• Gender equality strengthened.
• Digital records and wage slips made compulsory.
• Simplified compliance with one return and one register.
Conclusion
The Code brings major improvements in transparency, fairness, and uniformity in wages.
🌟 UNIT 3 – LONG / ESSAY ANSWERS
1. 1. Elaborate on Advisory Boards under
the Code of Wages, 2019.
Meaning
Advisory Boards help the government fix minimum wages and improve wage policies. They
ensure decisions are fair and scientific.
Types of Boards
1. Central Advisory Board – Covers whole India
2. State Advisory Board – Covers each state
Composition
• Representatives of employers
• Representatives of workers
• Independent experts
• Government members
• At least one-third women
Functions
• Suggest minimum wages for different skill levels.
• Recommend floor wage (central board).
• Review cost of living, inflation, regional differences.
• Promote equal wages for men and women.
• Improve wage payment systems (digital payments, transparency).
Conclusion
Advisory Boards make wage decisions balanced, fair, and modern, protecting workers
while considering employer needs.
2. Constitution and functions of different
Advisory Boards under the Code of Wages,
2019.
Central Advisory Board
• Formed by Central Government.
• Includes employers, employees, independent persons, and state reps.
• 1/3rd must be women.
State Advisory Board
• Formed by each State Government.
• Members from state-level employers, workers, and labour experts.
• 1/3rd women members.
Functions of Both Boards
• Recommend minimum wages for different categories (skilled, unskilled).
• Suggest revision of wages every 5 years.
• Central Board recommends National Floor Wage.
• Protect women workers through equal pay suggestions.
• Review wage trends, inflation, cost of living.
• Help government make wage policies that are fair and practical.
Conclusion
Both Boards ensure wage regulation is scientific, fair, and updated, helping both workers
and industries.
✅ UNIT 4 – SHORTENED ANSWERS
(EASY ENGLISH, POINTS FORMAT)
1. Salient features of the Code on Industrial
Relations, 2020
• Combines 3 laws: Industrial Disputes Act, Trade Unions Act, Standing Orders Act.
• Introduces Negotiating Union (51% membership) and Negotiating Council.
• Standing Orders apply to units with 300+ workers.
• Strike & Lockout require 14 days’ notice in all industries.
• No strike/lockout during conciliation, arbitration or tribunal proceedings.
• Threshold for lay-off, retrenchment, closure permission raised from 100 to 300
workers.
• Worker Re-Skilling Fund for retrenched workers.
• Encourages mediation and faster dispute resolution.
• Aims for industrial peace and ease of doing business.
2. Bipartite forums & Works Committee
under the IR Code, 2020
Bipartite Forums
• Consist of employer + worker representatives.
• Purpose: solve problems inside factory without government intervention.
• Includes: Works Committee, Grievance Committee, Negotiating Union/Council.
Works Committee
• Mandatory where 100 or more workers are employed.
• Equal number of employer and worker representatives.
• Workers choose their own representatives.
Functions
• Promote good relations between workers and management.
• Discuss working conditions, facilities, discipline, holidays, safety.
• Settle small disputes before they become major conflicts.
• Helps maintain industrial peace.
3. Significance of Trade Unions & Criteria
for Registration
Significance
• Protect workers from exploitation.
• Enable collective bargaining for better wages, safety, benefits.
• Represent workers in disputes.
• Provide support during strikes/negotiations.
• Promote social justice and dignity.
Criteria for Registration
• Minimum 7 members to form a union.
• At least 10% or 100 workers (whichever is less) must be members.
• Submit name, address, list of office bearers, rules/constitution.
• Name cannot be identical to existing union.
• Registrar issues registration certificate after verification.
4. Constitutional safeguards for trade
unions (with cases)
Safeguards
• Article 19(1)(c) → Right to form associations/unions.
• Article 14–16 → Equality and protection from discrimination.
• Article 21 → Dignity and fair working conditions.
• Article 23–24 → No forced labour; supports union protections.
Case Laws
• AIBEA v. NIT (1962) – Right to form union is fundamental, but right to strike is not.
• B.R. Singh v. Union of India – Collective bargaining is essential.
• T.K. Rangarajan v. Tamil Nadu – Government employees have no fundamental
right to strike.
Conclusion
Trade unions have constitutional protection, but the right to strike is regulated to maintain
industrial peace.
5. Registration of a trade union is not
compulsory; however, it confers legal
benefits — Examine.
Why registration is not compulsory
• Trade Unions Act, 1926 does not force a union to register.
• Workers may form an unregistered union through Article 19(1)(c).
• Unregistered unions can protest, meet, and represent worker opinions.
But registration gives legal benefits
1. Legal status
o Registered union becomes a legal entity.
o Can hold property, open bank accounts, enter contracts.
2. Immunity from civil suits
o Protected from lawsuits for actions like strikes done legally.
3. Right to represent workers
o Registered unions can appear before labour courts and tribunals.
4. Negotiation rights
o Under IR Code: Registered union with 51% membership
becomes Negotiating Union.
5. Financial transparency
o Can raise funds lawfully and maintain regulated accounts.
Conclusion
Registration is optional, but without registration, a union has no legal protection, no formal
recognition, and no bargaining power. A registered union is far more effective and secure.
6. Critically examine legal framework on
strikes and lockouts under the Industrial
Relations Code, 2020.
Key rules under IR Code
1. 14-day strike/lockout notice is compulsory for all industries.
2. No strike/lockout during:
o Conciliation
o Arbitration
o Tribunal proceedings
o 60 days after conclusion of above
3. Workers cannot strike without prior notice.
Why this is criticised
• Makes strikes more difficult → may reduce bargaining power.
• More procedural hurdles than ID Act, 1947.
• Reduces spontaneous strike ability.
Positive points
• Prevents sudden stoppage of work.
• Encourages peaceful negotiation.
• Reduces industrial losses due to surprise strikes.
Penalties
• Heavy fines on illegal strikes and lockouts.
• Workers and employers both accountable.
Conclusion
The IR Code restricts strikes for industrial peace but may weaken workers’ collective power.
Balance depends on fair enforcement.
7. Discuss the constitutional status of the
right to strike.
Not a fundamental right
• Article 19(1)(c) gives right to form unions, NOT right to strike.
• Supreme Court: Right to strike is not a fundamental right.
Important case: T.K. Rangarajan v. Tamil Nadu (2003)
• Court held government employees have no legal or moral right to strike.
But it is a legal right with restrictions
• Allowed under labour laws under certain conditions.
• Must follow procedure: notice, no strike during proceedings, etc.
Why regulated?
• Strike affects public interest, economy, industry functioning.
• Government must balance worker rights with national interest.
When strike is justified
• When employer violates rights, ignores demands, or practices unfair labour practices.
Conclusion
Right to strike = legal right, not fundamental right; must follow procedure.
8. “A strike may be legal yet unjustified,
and unjustified though legal.” Explain.
Legal strike
• Followed procedure (notice, timings, no strike during conciliation, etc.).
• Not illegal under law.
Unjustified strike
• Even if legal, it may be unjustified if:
o Demands are unreasonable
o Violence or misconduct happens
o No prior negotiation attempt
Example
Workers strike legally after giving notice but their demand is unrealistic → legal but
unjustified.
Illegal strike
• No notice, or during conciliation, or violating Code.
Justified strike
• Even if illegal, may be justified if employer:
o Harasses workers
o Withholds wages
o Violates safety norms
Case example
Courts held that sometimes workers strike illegally due to extreme employer exploitation →
justified.
Conclusion
Legality = following procedure
Justification = fairness of reasons
Both are separate concepts.
9. Explain the concept of “Go-Slow” strike
with case law.
Meaning
• Workers do not stop work but deliberately reduce speed and efficiency.
• Output drops, production slows down.
Why it is serious
• Hard to detect
• Causes huge losses
• Considered misconduct
Legal position
Courts treat “go-slow” as a serious unfair labour practice.
**Important case:
Bharat Sugar Mills Ltd. v. Jai Singh (1961)
• Supreme Court: Go-slow is more harmful than a strike.
• Workers can be disciplined for misconduct.
Conclusion
Go-slow is NOT a lawful strike.
It is a deliberate, dishonest slowdown and a punishable offence.
10. Define “Lockout” under ID Act and IR
Code; distinguish from Closure.
Definition
• ID Act, 1947: Temporary closing of place of employment or refusal to employ
workers.
• IR Code, 2020: Same definition—temporary suspension of work by employer to
force workers to accept terms.
Purpose
• Pressure tactic in industrial disputes.
Difference between Lockout and Closure
Lockout
• Temporary
• Used as a weapon against workers
• Work can restart anytime
• Part of an industrial dispute
• Requires 14-day notice (IR Code)
Closure
• Permanent shutting down
• Business stops fully
• Not related to worker behaviour
• Employer stops operations forever
• Needs 60-day notice if 300+ workers
Conclusion
Lockout = temporary weapon
Closure = permanent shutdown
11. Legal requirements & safeguards for
declaring a lockout.
Requirements under IR Code
• 14 days’ notice before lockout.
• No lockout during:
o Conciliation
o Arbitration
o Tribunal proceedings
o 60 days after completion
• Notice must be displayed and sent to government.
Safeguards
• Lockout must NOT be:
o Malicious
o Discriminatory
o Victimisation
• Workers must be informed clearly.
• Emergency services cannot be locked out.
• Employer must maintain safety & security of premises.
Conclusion
Lockout is allowed but strictly regulated to prevent arbitrary actions.
12. Lockout as a “weapon in the employer’s
hands.” – Discuss
Why called a weapon?
• Employer uses lockout to put pressure on workers during disputes.
• Stops wages because no work is available.
• Forces workers to accept employer’s terms.
When employers use it
• During strikes
• When workers refuse higher production targets
• When union makes excessive demands
Limitations
• Must follow procedure (14-day notice).
• Cannot be during conciliation/tribunal period.
• Illegal lockout → penalties + compensation.
Conclusion
Lockout is a bargaining tool, but law keeps it controlled to avoid worker exploitation.
13. Conditions when lockout may be
legal/illegal + penal consequences
✔ Legal lockout
• 14 days’ notice given
• Not during conciliation/tribunal
• Lawful reason (e.g., safety, serious indiscipline)
• No victimisation
❌ Illegal lockout
• No notice
• During conciliation/tribunal
• Vindictive or discriminatory
• Employer ignores procedure
Penal consequences
• Heavy monetary penalties
• Compensation to workers
• Employer liable for unfair labour practice
• Tribunal may order reopening + back wages
14. Define & explain concept of “Lay-off”
under IR Code; essential characteristics;
compensation.
Definition (Sec 67 IR Code)
Temporary inability to provide work due to:
• Machinery breakdown
• Shortage of raw materials
• Natural calamity
• Power failure
• Economic slowdown
Essential characteristics
• Temporary (NOT permanent)
• Worker is still on rolls
• Reasons beyond employer’s control
• Worker must present himself for work
Compensation
• 50% of basic wages + dearness allowance
• Paid until lay-off continues
• Not applicable if worker refuses alternative work offered
15. How lay-off differs from retrenchment.
Lay-off
• Temporary
• Worker not removed from employment
• Due to external/uncontrollable reasons
• Compensation = 50% wages
• Worker returns when situation improves
Retrenchment
• Permanent removal
• For economic/management reasons
• Compensation = 15 days’ wages for every completed year
• Notice to government in large units
• Worker cannot automatically return
16. “Lay-off = temporary unemployment;
retrenchment = permanent termination.”
Explain with law.
Lay-off
• Defined under Sec 67 IR Code
• Worker not terminated
• Only temporarily denied work
• Due to shortage of raw material, breakdown, etc.
• Worker gets 50% wages
Retrenchment
• Defined under Sec 2(zi) IR Code
• Termination for any reason except punishment, retirement, or closure
• Worker permanently removed
• Compensation under Sec 70(b): 15 days’ wages per year
• Notice + retrenchment procedures mandatory
Conclusion
Lay-off = temporary
Retrenchment = permanent
Law treats them differently.
17. Define ‘Retrenchment’ & explain its
scope; meaning of “for any reason
whatsoever.”
Definition (Sec 2(zi) IR Code)
Termination of a worker for any reason whatsoever, except:
• Punishment
• Voluntary retirement
• Superannuation
• Continued ill-health
• Non-renewal of contract
Meaning of “for any reason whatsoever”
Covers all types of terminations including:
• Cost cutting
• Reorganisation
• Low demand
• Automation
• Downsizing
• Surplus staff
Scope
• Very wide definition
• Protects workers from arbitrary termination
• Employer must follow notice + compensation rules
18. Worker Re-skilling Fund under Sec 83
IR Code
Purpose
• To help retrenched workers upgrade skills and find new jobs.
Sources of Fund
• Employer contribution = 15 days’ wages of each retrenched worker.
• Government grants.
• Other prescribed sources.
How it helps
• Provides amount directly to worker.
• Helps in training, certification, upskilling.
• Encourages re-employment.
19. Prior permission for retrenchment in
units with 300+ workers — compare with
ID Act.
Earlier (ID Act, 1947)
• Industries with 100+ workers needed government permission for:
o Retrenchment
o Lay-off
o Closure
Now (IR Code, 2020)
• Threshold increased to 300 workers.
• Gives industries more flexibility.
• Reduces government control.
Pros
• Helps ease of doing business
• Encourages investment
• Employment growth potential
Cons
• Reduces job security
• Easier for employers to remove workers
20. Retrenchment is economic
rationalization, not disciplinary action —
Discuss.
Meaning
• Retrenchment is NOT punishment.
• Done for economic/business reasons.
Examples
• Low demand
• Automation
• Cost cutting
• Surplus staff
• Structural changes
Law
• Sec 2(zi) IR Code clearly excludes termination for misconduct (disciplinary action).
• Retrenched worker receives notice + compensation.
Conclusion
Retrenchment = business decision, not punishment.
21. Define “Closure” under ID Act;
distinguish from Lockout; conditions for
legal closure.
Definition
Permanent shutdown of business operations by employer.
Difference
• Closure: permanent, business ends.
• Lockout: temporary, dispute-related.
Conditions
• 60-day notice to government for 50+ workers.
• For 300+ workers → prior permission required.
• Compensation to workers = 15 days’ wages per year.
22. Rights & liabilities during closure;
compensation rules
Rights of workers
• Retrenchment compensation = 15 days' wages for each year.
• Notice or pay in lieu of notice.
• Gratuity, PF, other dues.
Liabilities of employer
• Give notice
• Pay full compensation
• Follow procedure
• Maintain records
23. Distinguish between Closure and
Retrenchment
Closure
• Permanent shutdown
• Business ends
• All workers terminated
• Reason: business viability
Retrenchment
• Termination of some workers
• Business continues
• Reason: surplus staff, cost cutting
24. Explain “Partial Closure” & whether
same rules apply
Meaning
• Employer shuts down part of the business, not entire undertaking.
• Example: Closing one department.
Legal position
• Courts treat partial closure as closure if it is genuine.
• Workers affected must receive full retrenchment compensation.
• Procedure same as complete closure (notice + compensation) if 300+ workers are
affected.
✅ UNIT 5 – SHORTENED ESSAY
ANSWERS
1. What are Standing Orders? Explain their
nature and duration.
Meaning
• Standing Orders are written rules that tell employees and employers how things will
work inside the factory.
• They cover: work hours, shifts, leave, discipline, misconduct, warnings, suspension,
termination, etc.
Nature
• They are legal rules, not personal agreements.
• They apply to everyone in the establishment.
• Once certified, they are mandatory for workers and employers.
• They prevent unfair treatment and ensure clear, standard behaviour.
Duration
• Standing Orders stay valid until they are changed.
• They can be modified only after 6 months (unless both sides agree).
• Any change must be approved by the Certifying Officer.
Conclusion
Standing Orders act like a rulebook that protects workers and maintains discipline at the
workplace.
2. Binding nature of Standing Orders —
Can contract terms override them?
Binding Nature
• Certified Standing Orders have legal force.
• They are compulsory for both employer and worker.
• They override company policies, manuals, and private agreements.
• They ensure fairness and stop employers from acting suddenly or unfairly.
Can employment contracts override Standing Orders?
❌ No. Contracts cannot override Standing Orders.
• If any contract condition goes against the Standing Orders, the Standing Orders will
prevail.
• Reason: They are statutory rules, not private terms.
Only exception
✔ If the contract gives more benefits to workers (better than Standing Orders), then it may
be allowed.
Conclusion
Standing Orders are the final and superior rules in the workplace. Contracts must follow
them.