SYMBIOSIS INTERNATIONAL (DEEMED UNIVERSITY)

(Established under Section 3 of the UGC Act 1956)

Re-accredited by NAAC with ‘A’ grade (3.58/4) Awarded Category – I by UGC

Program: BA LL.B

Batch: 2017-2022

Semester: VIII

Course Name: Labour and Industrial Law

Seat No: 192535

PRN: 17010323120

INSTRUCTIONS
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name, contact detail etc. are written anywhere else in the answer script it
will be treated as adoption of unfair means.
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3. Submission will be done by the Google form provided by the examination
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of any other format will not be accepted.
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department in each subject. Student will be marked absent in case of late
submission.
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6. Write your answer in your own words and do not copy paste from any
source. Read the question carefully and write your answer fulfilling the
requirements of the question.
7. Examiner may use plagiarism check software to find out the originality of the
assessment.
8. If the students copy from each other’s assignment, it will be considered as
unfair means case and performance will be treated as null and void for the
entire examination.
9. File name should be Seat Number Example: 345006
Q1A:

Introduction:

The main objective of passing the Trade Unions Act, 1926 was to grant immunity against criminal
conspiracy and civil suits and also to protect the registered Trade Unions against any vicarious
tortious liability in respect of the act committed by its agents, subject to certain specified
conditions. The Trade Unions Act, 1926 does not mandate registration of trade unions. However,
upon registration, a trade union gets several benefits including some immunities that are not
available to an unregistered Trade Union. These legislative bodies are given through Sections 17
and 18 of the Trade Unions Act

Immunities available to a registered Trade union under Trade Union Act, 1926:

Immunity from liability of criminal

conspiracy (Section-17)

Immunities available to
Registered Trade Union

Immunity against Immunity against

civil liability tortious liability
(Section-18) (Section-18(2))

 Immunity from liability of criminal conspiracy:

Section 17 provides much needed protection to the registered T.U. against the punishment for the
offence of criminal conspiracy. However this protection is not unconditional, and is in fact subject
to certain important conditions and limited to certain extent. Firstly, any officer or member of a
registered Trade Union is not liable to punishment only under Section. 120-B sub-section (2) and
not against sub-section (1). Secondly, it relates to such agreements made between the members of
registered Trade Union only be for the purpose of carrying out its legitimate and lawful activities as
are detailed in Section 15 and not for any other purpose. Lastly, it is very clearly laid down that such
immunity is not available if the agreement is an agreement to commit an offence. 

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In the case of Binny Mills it was held that the immunity provided under section. 17 of the T.U. Act
is subjected to conditions & limited to a certain extent and 120-B of I.P.C protects only against
punishment which is less than 2 years, and is applicable to offences where punishment is for 6
months of imprisonment.

In West India Steel Company Ltd. v. Azeez, a trade union leader obstructed work inside the factory
for 5 hrs while protesting against the deputation of a workman to work another section. It was held
that while in a factory, the worker must submit to the instructions given by his superiors. A trade
union leader has no immunity against disobeying the orders. A trade union leader or any worker
does not have any right by law to share managerial responsibilities.

 Immunity against civil liability:

Section 18 provides immunity to registered T.U. against civil liability in respect of any act done in
furtherance of a trade dispute to which a member of the trade union is party on the ground that such
act induces some other person to break a contract of employment, or that it is interferes with the
trade, business or employment of some other person. This section protects the actions of the T.U.
which in absence of this Act, would be treated as restraints of trade and T.Us. were held liable to
make good the loss sustained by the employer.

 Immunity against civil liability:

Sub-section (2) of Section 18 grants protection to the registered T.U. against tortious liability in
respect of the acts done by the member of the T.U. as its agent. However this protection is also
subject to the condition that it should be proved that such person acted without the knowledge of, or
contrary to express instructions given by the executive of the T.U.

The most celebrated case on the scope of the legislative protection to the registered T.U. within the
scope of Section 18 was elaborately explained by the Patna High Court in Rohtas Industries Staff
Union v. State of Bihar. In this case, the main contention was that the T.U. has resorted to an illegal
strike within the meaning of Section 24 of the Industrial Disputes Act,1947 and that it was not
entitled to claim any immunity under the Trade Unions Act. After carefully examining the scope of
Section 24 of the ID Act, the court held that in case the illegal strike is contravening the provisions
under Section 24 of the ID Act, the remedy is available in the form of punishment prescribed in
Section 26 of the same Act and therefore employers have no right of civil action for damages

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against the employees participating in an illegal strike within the meaning of Section 24(1) of the ID
Act. Thus, the protection under Section 18 of the T.U. Act given to registered T.U. is not prevented
mainly because the strike is illegal under Section 24 of the ID Act.

In the case of Simpson & Group Companies Workers & Staff Union v. Amco Batteries ltd., it was
laid down that T.U. does not enjoy immunity from illegal acts if its members cause interference in
free movement of men and material of the employer. Further, the court explained that the methods
of persuasion are limited to oral and visual and do not include physical obstruction of vehicles or
persons.

In the case of Jay Engineering Works v. Its Staff, the court summed up the cumulative effects and
scope of Sections 17 and 18 of the T.U. Act and held that immunities provided under these sections
are subject to conditions and there is no exemption against either an agreement to commit an
offence or intimidation, molestation or violence, where they amount to an offence. 

In Sri Ramvikas Services Ltd. and another v. Simpson & Group Companies Workers Union and
another, the Madras High Court while deciding if the employer can obtain injunction against T.U.
held that if the workers on strike resort to picketing officers and managerial staff from entering or
leaving the premises and indulge in threat, the employer can approach the Civil Court and an
injunction restraining the workers from doing such unlawful acts can be obtained.

Conclusion:

To conclude, the legislative protections to the registered T.U. under Sections 17 and 18 of the T.U.
Act, is subject to condition so that, T.U. could enjoy this benefit only for the legitimate activities as
are specified in Sec.15 or where such activities are in furtherance and contemplation of any trade
disputes within the prescribed limit and scope of Sections 17 and 18 respectively. 

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Q2A:

Benefits under Employees Provident Fund and Miscellaneous Provisions Act, 1952:

The following three schemes are provided under the Act for the welfare and protection of the
workers by the virtue of the provisions made under various Sections of the Act. They are:

1. The Employees Provident Funds Scheme under Section.5 (EPF)

2. The Employees’ Pension Scheme under Section 6-A (EPS)

3. The Employees Deposit-linked Insurance Scheme under Section

6C (EDLI)

 1) The Employees Provident Funds Scheme (EPF):

The Employee's Provident Fund Scheme, 1952 under Section.5 provides financial security to the
employees in a covered establishment by providing a system of compulsory saving. This fund is
administered by a Central Board of Trustees. The scheme provides for the time and manner in which
contributions shall be paid to the Fund by the employer and the employees, the manner in which the
employees’ contribution may be recovered by the contractors, if they are employed through them
and the conditions under which withdrawals from the fund may be permitted. It also provides for the
fixation of the rate of interest payable to the members by the Central Government in consultation
with the Board of Trustees.

The payment of the contribution of the employers and employees is the responsibility of the
employer in the first instance and he is authorized to recover the employees’ share, as provided
later. However, in case the employer fails to credit the contribution, he shall be liable for the same
and the responsibility cannot be laid on the Fund Commissioner as decided in the case of Rashtriya
Mill Mazdoor Sangh v. R.P.F. Commissioner.

The employer and each of the employees have to pay a contribution of 10% or 12% of the aggregate
of the basic wages, dearness allowance and retaining allowance, as specified under Section.6 of the
EPC Act, 1952. Further, Central Government is also contributing to the fund, so it cannot be
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considered only notional.

The EPF Scheme, to a greater extent has made provisions for lumpsum payment at the time of
retirement as retirement benefit or social security for his old age or his dependents as survivors’
benefits.

 2) The Employees’ Pension Scheme (EPS):

The Employees’ Pension Scheme was introduced to provide for payment of amount monthly
towards pension, as per scheme framed under Section 6-A. Minimum 10 years contributory service
is required for entitlement to pension. Normal superannuation pensions is payable on attaining the
age of 58 years. Pension on a discounted rate is also payable on attaining the age of 50 years. Where
pensionable service is less than 10 years, the member has an option to remain covered for
pensionary benefits till 58 years of age or claim return of contribution or withdrawal benefits.

The Scheme provides for payment of monthly pension in the following contingencies
Superannuation on attaining the age of 58 years; Retirement; Permanent total disablement; Death
during service; Death after retirement or superannuation or permanent total disablement; Children
Pension and Orphan pension.

For this purpose a new fund is established called Pension Fund to which a sum not exceeding 8.33%
from the employer’s contribution which he is paying under Section.6 of the Act being his share of
10% or 12% shall be paid, as the case may be. The amount of monthly pension will vary from
member to member depending upon his pensionable salary and service. The different types of
pensions include:

Widow pension: Under this, pension amount will be payable to the widow of the EPF member until
her death or remarriage. In the case of more than one widow, the pension amount will be payable to
the eldest widow.

Child pension: It is applicable for the surviving children in the family in addition to the monthly
widow pension, in case of death of the member. It will be paid till the child attains the age of 25
years. The amount payable is 25% of the widow’s pension and can be paid to a maximum of two
children.

Orphan Pension: In case the member dies and has no surviving widow, his children will be entitled

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to get the monthly orphan pension of 75% of the value of the monthly widow pension. The benefit
will be applicable for two surviving children from oldest to youngest.

Reduced Pension: An early pension can by withdrawn by the member, if he has completed 10 years
of service and has reached the age of 50 years but is less than 58 years. In this case, the pension
amount is slashed at a rate of 4% for every year.

 3) The Employees Deposit-linked Insurance Scheme (EDLI):

Another important social security measure, the Employees' Deposit Linked Insurance Scheme (Sec.
6-C) was introduced for members of the Employees' Provident Fund. The insurance scheme is
linked to the amount available in the deposit in the Provident Fund to the credit of the employees
concern. The salient features of the scheme is that in the event of death of an employee his
dependents would be entitled to receive an additional amount equivalent to three years average
balance at the credit of deceased employee in the Provident Fund account to a maximum of
Rs.10,000. To avail this benefit, the employee will not be required to make any contribution to the
Insurance Fund.

Contribution to the fund would be made by the employers and the Central Government in the ratio
2:1. Under Section 6-C the Central Government, by notification in the official gazette frame a
scheme called Deposit-linked Insurance Scheme to provide for life insurance benefits to the
employees of specified establishments or class of establishments. To this Deposit-linked Insurance
Fund them employer is required to pay from time to time in respect of every employee. a
contribution of 0.5 percent of the pay of the employee in the insurance fund. In addition to this, the
employer has to pay 0.01 percent as administrative charges and 0.005 percent as inspection charges
of the employees' total pay in this scheme. This scheme is administered by the Central Board of
Trustees (CBT).

The deposit linked insurance scheme has also to provide the manner in which the amount due to the
nominee or the members of the family is to be paid and also make a provision that the amount shall
not be paid otherwise than in the form of the deposit in a saving bank account in the name of such
how many or member of his family. The insurance amount payable is 30 times the average monthly
salary of the employee up to a maximum of Rs. 6 lakhs. There is no minimum service period
required to be eligible for EDLI benefits.

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Q3A:

Conditions for Employers’ liability for compensation:

Section 3 of the Employees’ Compensation Act, 1923 provides for employers liability for
compensation in case of occupational disease or personal injuries and prescribes the manner in
which his liability can be ascertained.

(a) In cases of occupational disease:

 Where an employee employed in any employment contracts any disease specified in Part A
of Schedule III the Act, as an occupational disease, peculiar to that employment, the
contracting of the disease shall be deemed to be an injury by accident arising out of and in
the course of employment.

 Where the employee employed in any employment for continuous period of not less than six
months under the same employer, and while in service contracts any disease specified in Part
B of Schedule III of the Act, the contracting of disease shall be deemed to be an injury by
accident arising out of and in the course of employment. The employer shall be liable even
when the disease was contracted after the employee seized to be in service of the employer,
if such disease arose out of the employment.

 If an employee in service of one or more employers in any employment specified in Part C

of Schedule III for such continuous period as the Central Government may specify, contracts
any disease, even after he cease to be in service of any employer and disease arose out of
such employment, the contacting of disease shall be deemed to be an injury by accident
arising out of and in the course of employment. However if the employment was under more
than one employer all employers shall be liable for payment of compensation in such
proportion as the commissioner Mein circumstances deem just.

(b) In case of personal injury:

 Personal Injury

The employer becomes liable if the injuries caused to an employee by accident arising out of and in
the course of his employment and there must be a personal injury cost one employee. Normally
injury implies physical or bodily injury caused by an accident. However such personal injury will
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also include nervous shock or breakdown or mental strain.

In the case of Indian News Chronicle v. Mrs. Lazarus, it was held that the injury caused by an
accident is not confined to physical injury and the injury in the instant case was due to his working
and going from my heating room to a cooling planned as it was his indispensable duty.

 Accident:

The personal injury must be caused by an accident. The term accident has not been defined in the
act but its meaning has been sufficiently explained in a number of decided cases. The expression
accident must be constructed to its popular sense. It has been defined as a mishap or an untoward
event which is not expected or design. What the Act intends to cover is what might be expressed as
an accidental injury.

 Arising out of employment and in the course of employment.

To make the employer liable it is necessary that the injuries caused by an accident which must be
raised out of and in the course of employment. The expression “arising out of employment”
suggests some casual connection between employment on the accidental injury. The cost
contemplated is the proximate cause and not any remote cause. Thus where workman suffers from
heart disease or dies on account of strain of work by keeping continuously standing or working it
was held that accident arose out of employment in the case of Laksmibai Atma Ram v. Bombay
Port Trust.

Generally, if an employee is suffering from a particular disease and as a result of wear and tear of
his employment he dies of the disease, employer is not liable. But if the employment is contributory
cause or has accelerated the death that the death was due to disease coupled with the employment,
then the employer would be liable as arising out of employment.

The expression “in the course of employment” suggests that the period of employment and the
place of work. In other words, the workman at the time of the accident must have been employed in
the performance of his duties and the accident took place at all about the place where he was
performing his duties.

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The expression employment is wider than the actual work a duty which the employee has to do. It is
enough if at the time of the accident the employee was in actual employment, although he may not
be actually turning out of work. Even when the employees resting or having food or taking his tea or
coffee, proceeding from the place of employment to his residence, an accident occurs, the accident
is regarded as arising out of and in the course of employment.

 Theory of Notional Extension:

To make the employer liable it is necessary that the injury caused by an accident must have arisen in
course of employment. It means that the accident must take place at a time and a place when he was
doing his master’s job. It is well-established that the concept of duty is not limited to the period of
time the workmen actually commenced his work on the time he downs his tools. It extends further
in the point of time as well as place. But there must be a nexus between the time and place of the
accident and the employment. If the presence of the workmen concerned at that particular point was
so related to the employment as to lead to the conclusion that he was acting within the scope of
employment and that would be sufficient to deem the accident as having occurred in the course of a
ploy meant. It is known as doctrine of notional extension of employment, whether employment
extends to the extent of accident depends upon each individual case.

All the conditions mentioned above have to be satisfied, in order to make the employer liable for
compensation under the Employees’ Compensation Act, 1923.

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Q4B:

Bonus:

Bonus can be termed as a cash payment that is made to the employees in addition to wages. New
English Dictionary defines it as “A boon or gift over and above what is normally due as
remuneration to the receiver and which is, holy to the good.”

The term ‘bonus’ is not defined in the Payment of Bonus Act, 1965. The concept of a bonus being a
grant or an ex-gratia payment was explored by the industrial court of Bombay in the case of
Rashtriya Mill Mazdoor Sangh and the Mill Owners Associations.

Eligibility conditions and disqualifications for Bonus under Payment of Bonus Act:

 Eligibility for Bonus (Section-8):

Every employee engaged in any kind of work whether skilled, unskilled, managerial, supervisory
etc. shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the
Provisions of this Act, provided he has worked in the establishment for not less than thirty working
days in that year and he is receiving salary or wages up to RS. 10,000 per month.

Where the salary or wages of an employee exceeds Rs. 10,000 per month, the bonus payable to such
employee shall be calculated as if his salary or wages were Rs. 10,000 per month.

It was held in the case of Project Manager, Ahmedabad Project, ONGC v. Sham Kumar Sahegal
that an employee suspended but subsequently reinstated with full back wages cannot be treated to be
ineligible for bonus for the period of suspension.

 Disqualifications for payment of bonus (Section-9):

An employee shall be disqualified from receiving a bonus under this Act, if he is dismissed from
service for:

(a) fraud; or

(b) riotous or violent behavior while on the premises of the establishment; or

(c) theft, misappropriation, or sabotage of any property of the establishment.

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This provision is based on the recommendations of the Bonus Commission which observed “after
all bonus can only be shared by those workers who promote the stability and well-being of the
industry and not by those who positively display disruptive tendencies. Bonus certainly carries with
it obligation of good behaviour.”

In the case of Pandian Roadways Corpn. Ltd. v. Preseding Officer, Principal Labour Court, it was
held that if an employee is dismissed from service for any act of misconduct enumerated in Section
9, he stands disqualified from receiving any bonus under the Act, and not the bonus only for the
accounting year in which the dismissal takes place.

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