Post Graduate Programme in Human

Resource Management (PGPHRM)

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EMPLOYMENT LAW I
(EL I)
Prof. Parul Gupta
PhD (Faculty of Law-JMI, New Delhi), LL.M., PGDBM

Dr. Parul Gupta

SESSION 13
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Notice of Change in Condition of

Service
Chapter III of IDA
Restrictions
of the change in
condition of service
Provisions for the references of
disputes to Boards, Courts or
Tribunals
Dr. Parul Gupta

Notice of Change in Conditions of

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Service
Notice of Change (Section 9-A)
The conditions of service applicable to any
workman in respect of any matter specified
in the Fourth Schedule, cannot effect such
change;
without giving to the workmen likely to be affected
by such change a notice in the prescribed manner
of the nature of the change proposed to be effected;
or
within twenty-one days of giving such notice.
Dr. Parul Gupta

Notice of Change in Conditions of

Service
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Notice of Change (Section 9-A)
No notice required

where the change is effected in pursuance of any settlement

or award; or
where the workmen likely to be affected by the change are
persons to whom the Fundamental and Supplementary
Rules, Civil Services (Classification, Control and Appeal)
Rules, Civil Services (Temporary Service) Rules, Revised
Leave Rules, Civil Services Regulations, Civilians in
Defence Services (Classification, Control and Appeal) Rules
or the Indian Railway Establishment Code or any other
rules or regulations that may be notified in this behalf by
the appropriate Government in the Official Gazette, apply.

Dr. Parul Gupta

Notice of Change in Conditions of

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Service
The Fourth Schedule (Section 9-B)
1. Wages, including the period and mode of payment ;
2. Contribution paid, or payable, by the employer to any provident fund or for the
benefit of the workmen under any law for the time being in force ;
3. Compensatory and other allowances ;
4. Hours of work and rest intervals;
5. Leave with wages and holidays ;
6. Starting alteration or discontinuance of shift working otherwise than in accordance
with standing orders;
7. Classification by grades ;
8. Withdrawal of any customary concession or privilege or change in usage;
9. Introduction of new rules of discipline, or alteration of existing rules except insofar
as they are provided in standing orders;
10. Rationalisation , standardization or improvement of plant or technique which is
likely to lead to retrenchment of workmen;
11. Any increase or reduction (other than casual )in the number of persons employed or
to be employed in any occupation or process or department of shift (not occasioned
by circumstances over which the employer has no control)
Dr. Parul Gupta

Notice of Change in Conditions of

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Service
Case 13.1: HLL v HLE Union
Hindustan Lever Ltd. vs Hindustan Lever Employees'
Union

Discussion Point
1. Could an individual settlement in a matter of lockout be accepted as a settlement under section 2(a) of
the IDA?
2. Could the requirement of notice under section 9-A
of IDA be lifted on the basis of the rationalization,
modernization being essentially a managerial
function
Dr. Parul Gupta

Notice of Change in Conditions of

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Service
Judgment
1. Individual settlement in a matter of lock-out cannot be accepted

and an individual settlement is permissible only if the dispute

relates to one of the four categories namely discharge, dismissal,
retrenchment or otherwise termination of an employee as
contemplated by Section 2-A of the I.D. Act. Reliance placed on
Clause 2 of the individual settlement is irrelevant. There is no
consent given to bring about a change which adversely affects the
conditions of service.
2. While it is true that the rationalisation, modernisation is
essentially a managerial function, if as a result thereof, the
conditions of service of the workmen are adversely affected, notice
under Section 9-A of the I.D. Act is necessary. Since no notice was
given by the petitioner the change effected by it, would be illegal.

Dr. Parul Gupta

Notice of Change in Conditions of

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Service
Power of Government to Exempt (Section 9-B)
If

the appropriate government finds that the

application of the provisions of section 9A to any
class of industrial establishments or to any class of
workmen
employed
in
any
industrial
establishment
affect the employers in relation thereto so
prejudicially that such application may cause
serious repercussion on the industry concerned
and
that public interest so requires,
Dr. Parul Gupta

References of Disputes to Boards,

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Courts
or Tribunals
Section 10
any industrial dispute exists or apprehended, it may, at
any time:
a.
refer the dispute to a Board of conciliation for promoting a
settlement there of; or
b.
refer any matter appearing to be Connected with or relevant to
the dispute to a Court for Inquiry; or
c.
refer the dispute or any matter appearing to be connected with,
or relevant to the dispute to a Labour Court for adjudication
provided the dispute relates to any matter specified in the Second
Schedule; or
d.
refer the dispute or any matter appearing to be connected with or
relevant to the dispute to a Tribunal for adjudication, where it
relates to any matter specified in the Second or Third Schedule.

Dr. Parul Gupta

References of Disputes to Boards,

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Courts or Tribunals
Reference to Labour Court under proviso 2 of

Section 10(1)

the dispute relates to any matter specified in the Third

Schedule and is not likely to effect more than 100 workmen;

Reference to Labour Court or Tribunal constituted

by State Government under proviso 3 of Section

10(1))

If the dispute in relation to which the Central Government is

the appropriate Government

Disputes related to Public Utility Service

where the dispute is related to a public utility service and a
notice of strike or lockout under Section 22 has been given
Dr. Parul Gupta

References of Disputes to Boards,

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Courts or Tribunals
Case 13.2: M R Mill v H & O
GROUP SEVEN
Mohon Rice Mill vs Hazarika And Ors.

Discussion Points
Whether the tribunal had acted in excess of
its jurisdiction conferred upon it under the
statute.
Dr. Parul Gupta

References of Disputes to Boards,

Courts or Tribunals
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Judgment
There was nothing to show that the Rice Mills Mazdoor Union as
such authorized the Indian National Trade Union Congress to
which it was said to have been affiliated to take up the cause of the
worker either with the employer or with the authorities or that
the Indian National Trade Union Congress as such authorized the
secretary to do the same. The dispute thus was confined only to
two individuals and the secretary of the Indian National Trade
Union Congress appeared to have taken up the matter with the
authorities at his own initiative without being duly authorized by
the Trade Union Congress itself for that purpose. Thus the
essential characteristics of an industrial dispute were completely
lacking in that case. In the circumstances, the court was bound to
hold that the award given by the industrial tribunal on an illegal
reference must be quashed.
Dr. Parul Gupta

Reference to National Tribunal

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Sec.1 0(1-A)
i. any dispute exists or is appended; and
ii.the dispute involves any question of

national

importance; or
iii.the dispute is of such nature that industrial
establishment situated in more than one State are
likely to be interested in, or affected by such
dispute; and
iv.the dispute should be adjudicated by National
Tribunal (the reference to National Tribunal shall
be made by the Central Government only).
Dr. Parul Gupta

Persons Applying to Represent

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Majority
Section 10(2)
Persons applying to represent the majority (Section

10 (2))
Period for pronouncing the award (Section 10(2A))

Labor Court, Tribunal or National Tribunal has to submit its

award on such dispute to the appropriate government within
the specified period
where such industrial dispute is connected with an individual
workman, such period must not exceed three months.

Computation of period of pronouncement of award

Dr. Parul Gupta

Persons Applying to Represent

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Majority

Prohibition of Strike or Lock out (Section

10(3))
Jurisdiction

Jurisdiction to be limited to confine its adjudication to

only those points and matters incidental to the referred
industrial dispute
where any reference has been made under sub-section
(1-A) to a National Tribunal, then no Labour Court or
Tribunal can have jurisdiction to adjudicate dicta upon
any matter which is under adjudication before the
National Tribunal.

Dr. Parul Gupta

3. Voluntary References of Disputes to

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Arbitration
Section 10-A
Agreement of the employer and the workman
to refer the dispute to arbitration
Agreement must be in writing.
An arbitrator functioning under Section 10-A
of the Act is a statutory Tribunal.
the Government cannot refer the same
dispute for adjudication under Sec. 10

Dr. Parul Gupta

3. Voluntary References of Disputes to

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Arbitration

Umpire

an even number of arbitrators, the agreement must

provide for appointment of another person as umpire.
Form of agreement
has to be in a prescribed form and must signed by the
parties there to in such a number as may be prescribed
Award
signed by the arbitrator or all arbitrators as the case may
be
Prohibition of Strike or Lock out
the appropriate Government is authorised to prohibit the
continuance of any strike or lockout in connection with
such dispute.

Dr. Parul Gupta

GROUP ASSIGNMENT
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NEXT SESSION

GROUP EIGNT
CASE 14.3: P C
COOPERATIVE V PCCE
Case Analysis Report
Submission Due Session 15
Dr. Parul Gupta

NEXT SESSION
19

SESSION 14
Award & Settlement - IDA
Provisions for the
enforcement of award and
settlements
Quiz Test Four- Session 11 to 13
Dr. Parul Gupta

20

Dr. Parul Gupta