Labour laws course materials

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Determination of seniority – The seniority of direct recruit will have to be counted from the date of their regular initial appointment and not from the date of their confirmation - AIR 1994 SC 838.

  • (bb) "banking company" means a banking company as defined in section 5 of the Banking Companies Act, 1949 (10 of 1949), having branches or other establishments in more than one State, and includes the Export-Import Bank of India, the Industrial Reconstruction Bank of India, the Industrial Development Bank of India, the Small Industries Development Bank of India established under section 3 of the Small Industries Development Bank of India Act, 1989 (39 of 1989), the Reserve Bank of India, the State Bank of India, a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), and any subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959);

  • (c) "Board" means a Board of Conciliation constituted under this Act;

  • (cc) "closure" means the permanent closing down of a place of employment or part thereof;

  • (d) "conciliation officer" means a conciliation officer appointed under this Act;

  • (e) "conciliation proceeding" means any proceeding held by a conciliation officer or Board under this Act;

  • (ee) "controlled industry" means any industry the control of which by the Union has been declared by any Central Act to be expedient in the public interest;

  • (f) "Court" means a Court of Inquiry constituted under this Act;

  • (g) "employer" means -

    • (i) in relation to an industry carried on by or under the authority of any department of the Central Government or a State Government, the authority prescribed in this behalf, or where no authority is prescribed, the head of the department;

    • (ii) in relation to an industry carried on by or on behalf of a local authority, the chief executive officer of that authority;

  • (gg) "executive", in relation to a trade union, means the body, by whatever name called, to which the management of the affairs of the trade union is entrusted;

  • (h) Repealed.

  • (i) a person shall be deemed to be "independent" for the purpose of his appointment as the chairman or other member of a Board, Court or Tribunal, if he is unconnected with the industrial dispute referred to such Board, Court or Tribunal or with any industry directly affected by such dispute:
    Provided that no person shall cease to be independent by reason only of the fact that he is a shareholder of an incorporated company which is connected with, or likely to be affected by, such industrial dispute; but in such a case, he shall disclose to the appropriate Government the nature and extent of the shares held by him in such company;

  • (j) “industry” means any business, trade, undertaking, manufacture or calling of employers and includes any calling, service, employment, handicraft, or industrial occupation or avocation of workmen;

  • (j) "industry" means any systematic activity carried on by co-operation between an employer and his workmen (whether such workmen are employed by such employer directly or by or through any agency, including a contractor) for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes (not being wants or wishes which are merely spiritual or religious in nature), whether or not, -

    • (i) any capital has been invested for the purpose of carrying on such activity; or

    • (ii) such activity is carried on with a motive to make any gain or profit, and includes -

      • (a) any activity of the Dock Labour Board established under section 5A of the Dock Workers (Regulation of Employment) Act, 1948 (9 of 1948);

      • (b) any activity relating to the promotion of sales or business or both carried on by an establishment.

      • but does not include -

        • (1) any agricultural operation except where such agricultural operation is carried on in an integrated manner with any other activity (being any such activity as is referred to in the foregoing provisions of this clause) and such other activity is the predominant one.
          Explanation.- For the purposes of this sub-clause, "agricultural operation" does not include any activity carried on in a plantation as defined in clause (f) of section 2 of the Plantations Labour Act, 1951 (69 of 1951); or

        • (2) hospitals or dispensaries; or

        • (3) educational, scientific, research or training institutions; or

        • (4) institutions owned or managed by organisations wholly or substantially engaged in any charitable, social or philanthropic service; or

        • (5) khadi or village industries; or

        • (6) any activity of the Government relatable to the sovereign functions of the Government including all the activities carried on by the departments of the Central Government dealing with defence research, atomic energy and space; or

        • (7) any domestic service; or

        • (8) any activity, being a profession practised by an individual or body or individuals, if the number of persons employed by the individual or body of individuals in relation to such profession is less than ten; or

        • (9) any activity, being an activity carried on by a co-operative society or a club or any other like body of individuals, if the number of persons employed by the co-operative society, club or other like body of individuals in relation to such activity is less than ten;


The municipal activity was not considered as business or trade but it would fall within the scope of the expression “undertaking”. Hence the non-profit undertakings of the Municipality were included in the concept of industry even if, there is no private enterprise D.N. Banerji Vrs. P R Mukherjee; (1953) I L.L.J. 195(SC).
Triple Tests were evolved in Bangalore Water Supply & Sewerage Board Vrs. A Rajappa (1978) Lab. I.C. 778 (SC) In this case, Safdarjung (AIR 1970 SC 1407), Solicitors Case (AIR 1962 SC 1080), Gymkhana (AIR 1968 SC 554) Delhi. University (AIR 1963 SC 1873); were overruled.
Sovereign Functions – One of the tests to determine the sovereign nature of executive functions. That to find out whether the State is answerable in courts of law for such action. Chief Conservator of Forests Vrs. Jagannath Maruti Khondhare ; 1996 (72) FLR 840 (SC).
Department of State Insurance and Provident Fund – Comes within the ambit of the word industry. Chagan Lal Sethi Vrs. State of Rajasthan, 1996 – I. LLN 222 (Raj). Postal Department – Not an industry Subdivisional Inspector of Post Vrs. Theyyam Joseph; 1996 (72) FLR 691 (SC).
Jain Temple – Held not an industry by High Court – Compensation awarded to workman and case was closed by Supreme Court . Mohamadhka Gajika Baloch Vrs. Manager Panchasara Jain, (1994) II L.L.J. 1051 (SC).
Coir Board – Whether industry? – When the function of the Coir Board is to promote coir industry doing useful works for benefit of others having employer and employees, then it can be called as an industry – AIR 1998 SC 2801.
When a Company is formed for the purpose of carrying on an agricultural operation, it is carrying on trade or business and a plea raised by it that this organized trade or business does not fall within Sec. 2 (j) simply and solely for the reason that it is an agricultural operations cannot be sustained - Held that the agricultural operations carried on by the appellants like any other trade would be industry u/s 2 (j) of the Act – AIR 1964 SC 903. Company , owner of building and mansions covered under definition of Industry – AIR 1990 SC 2047. Concern manufacturing Ayurvedic medicines and also running hospital and its activity under taking within meaning of industry in Section 2(j) , U/s 2(j) –AIR 1960 SC 1261. P&T Department was observed by industry by ACT – AIR 1993 SC 1317 – Physical Research Laboratory is not an Industry – It is more an institution discharging government functions – AIR 1997 SC 1855 – Retrenchment of driver in an educational institution is not an industrial dispute – AIR 1963 SC 1873.
Running of tube – wells also constitute an industry – AIR 1993 SC 1388. Group of hospitals run by Government is an Industry u/s 2 (j) of the Act – AIR 1960 SC 610. Systematic activities for rendering services come under Industry u/s 2(j) – AIR 1961 SC 484 also see AIR 1978 SC 546. Urban family planning clinic is Industry – AIR 1985 SC 1016. Whatever is performed by man and produced by nature is not an industry – AIR 1970 SC 170. Work of solicitors carried on as firm is not an industry – AIR 1962 SC 1080. Dispute between municipality and its employees, is industrial dispute – AIR 1957 SC 110. Electric department of municipality supplies energy to consumer is an industry – AIR 1957 SC 110. Instant hospitals run by Government of Orissa are not ‘ industry’ within the meaning of Sec. 2(j) - AIR 1971 SC 1259.
All India Radio and Doorshan are industries within the meaning of Sec. 2(j) of the Act – 1998 (3) SCC 237; AIR 1998 SC 941.

  • (k) "industrial dispute" means any dispute or difference between employers and employers or between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour, of any person;
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