Industrial Disputes Act 1947 > Fifth Schedule

Fifth Schedule of Industrial Disputes Act 1947: Unfair Labour Practices

The Fifth Schedule to the Industrial Disputes Act, 1947 identifies unfair labour practices by employers and trade unions of employers, and separately by workmen and trade unions of workmen. Section 2(ra) defines an "unfair labour practice" by reference to this Schedule, Section 25T prohibits such practices and Section 25U prescribes punishment for committing them.

Legal position covered: This article explains the Industrial Disputes Act, 1947 framework applicable before the Bharatiya Sakshya Adhiniyam, 2023 came into force on 1 July 2024. References in the Fifth Schedule to evidence, criminal cases or domestic enquiries are reproduced in the context of unfair labour practices; the Schedule does not itself replace the law governing admissibility or proof of evidence.

Section 2(ra): Definition of Unfair Labour Practice

Section 2(ra) of the Industrial Disputes Act, 1947 provides that "unfair labour practice" means any of the practices specified in the Fifth Schedule. The Schedule therefore supplies the statutory list used by the definition.

Section 25T: Prohibition of Unfair Labour Practice

Section 25T provides that no employer or workman or trade union, whether registered under the Trade Unions Act, 1926 or not, shall commit any unfair labour practice.

Section 25U: Penalty for Committing Unfair Labour Practices

Under Section 25U, any person who commits an unfair labour practice is punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

Part I - Unfair Labour Practices by Employers and Trade Unions of Employers

  1. To interfere with, restrain from, or coerce workmen in the exercise of their right to organise, form, join or assist a trade union or to engage in concerted activities for collective bargaining or other mutual aid or protection, including:
    1. threatening workmen with discharge or dismissal if they join a trade union;
    2. threatening a lock-out or closure if a trade union is organised; and
    3. granting wage increases to workmen at crucial periods of trade union organisation with a view to undermining the efforts of the trade union at organisation.
  2. To dominate, interfere with or contribute support, financial or otherwise, to any trade union, including:
    1. an employer taking an active interest in organising a trade union of his workmen; and
    2. an employer showing partiality or granting favour to one of several trade unions attempting to organise his workmen, or to its members, where such trade union is not a recognised trade union.
  3. To establish employer-sponsored trade unions of workmen.
  4. To encourage or discourage membership in any trade union by discriminating against any workman, including:
    1. discharging or punishing a workman because he urged other workmen to join or organise a trade union;
    2. discharging or dismissing a workman for taking part in any strike not deemed to be an illegal strike under the Act;
    3. changing the seniority rating of workmen because of trade union activities;
    4. refusing to promote workmen to higher posts on account of their trade union activities;
    5. giving unmerited promotions to certain workmen with a view to creating discord amongst other workmen or undermining the strength of their trade union; and
    6. discharging office-bearers or active members of a trade union on account of their trade union activities.
  5. To discharge or dismiss workmen:
    1. by way of victimisation;
    2. not in good faith, but in the colourable exercise of the employer's rights;
    3. by falsely implicating a workman in a criminal case on false or concocted evidence;
    4. for patently false reasons;
    5. on untrue or trumped-up allegations of absence without leave;
    6. in utter disregard of the principles of natural justice in the conduct of a domestic enquiry or with undue haste; or
    7. for misconduct of a minor or technical character without regard to the nature of the misconduct or the workman's past record of service, thereby leading to disproportionate punishment.
  6. To abolish work of a regular nature being done by workmen and give such work to contractors as a measure of breaking a strike.
  7. To transfer a workman mala fide from one place to another under the guise of following management policy.
  8. To insist upon individual workmen who are on a legal strike signing a good-conduct bond as a precondition to allowing them to resume work.
  9. To show favouritism or partiality to one set of workers regardless of merit.
  10. To employ workmen as "badlis", casuals or temporaries and continue them as such for years with the object of depriving them of the status and privileges of permanent workmen.
  11. To discharge or discriminate against any workman for filing charges or testifying against an employer in an enquiry or proceeding relating to an industrial dispute.
  12. To recruit workmen during a strike which is not an illegal strike.
  13. Failure to implement an award, settlement or agreement.
  14. To indulge in acts of force or violence.
  15. To refuse to bargain collectively in good faith with recognised trade unions.
  16. Proposing or continuing a lock-out deemed to be illegal under the Act.

Part II - Unfair Labour Practices by Workmen and Trade Unions of Workmen

  1. To advise, actively support or instigate any strike deemed to be illegal under the Act.
  2. To coerce workmen in the exercise of their right to self-organisation or to join a trade union or refrain from joining any trade union, including:
    1. picketing by a trade union or its members in such a manner that non-striking workmen are physically debarred from entering workplaces; and
    2. indulging in acts of force or violence, or holding out threats of intimidation in connection with a strike, against non-striking workmen or managerial staff.
  3. For a recognised union to refuse to bargain collectively in good faith with the employer.
  4. To indulge in coercive activities against certification of a bargaining representative.
  5. To stage, encourage or instigate coercive actions such as wilful "go slow", squatting on work premises after working hours, or "gherao" of members of managerial or other staff.
  6. To stage demonstrations at the residences of employers or managerial staff members.
  7. To incite or indulge in wilful damage to the employer's property connected with the industry.
  8. To indulge in acts of force or violence, or hold out threats of intimidation against any workman, with a view to preventing him from attending work.

Key Legal Features of the Fifth Schedule

Trade Union Rights and Collective Bargaining

The Schedule protects freedom of trade union organisation against coercion, discrimination, employer domination and employer-sponsored unions. It also treats refusal to bargain collectively in good faith as an unfair labour practice in the circumstances stated in the Schedule.

Victimisation and Colourable Exercise of Employer Rights

Part I specifically identifies dismissal by way of victimisation and dismissal not in good faith but in the colourable exercise of employer rights. It also addresses false criminal implication, patently false reasons, trumped-up absence allegations, disregard of natural justice in domestic enquiries and disproportionate punishment for minor or technical misconduct.

Badlis, Casual and Temporary Workmen

Item 10 of Part I addresses the practice of employing workmen as badlis, casuals or temporaries and continuing them in that status for years where the object is to deprive them of the status and privileges of permanent workmen. The statutory language makes the stated object an important component of this listed practice.

Illegal Strikes and Lock-outs

The Fifth Schedule treats proposing or continuing a lock-out deemed illegal under the Act as an employer-side unfair labour practice. On the workmen's side, advising, actively supporting or instigating a strike deemed illegal under the Act is listed as an unfair labour practice. The legality of a strike or lock-out must be determined under the applicable provisions of the Industrial Disputes Act.

Force, Violence and Intimidation

The Schedule addresses force and violence on both sides. It also specifically identifies coercive picketing, intimidation of non-striking workmen or managerial staff, wilful damage to employer property and threats intended to prevent a workman from attending work.

Official Legal Sources

This article presents the central statutory framework. Applicable State amendments, rules, notifications, standing orders, settlements, awards and judicial decisions should be checked for the relevant establishment, parties, period and dispute.