case study on contract labour

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Contract Labor at Regency Hospital: Legal and HR Dynamics

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Contract labor at regency hospital: legal and hr dynamics description.

This case brings to the fore different complexities of contract labor employment by principal employers (PE) in the Indian context, including sensitivities involved in handling contract workers' union. Regency Hospital (RH), a corporate Hospital chain in India, acquired Gedex Hospital (GH) in 2005, along with contract workers employed in the latter. In the year 1983, GH's management decided to employ contract workers for operating its support services like House Keeping, etc. Two years later, some contract workers of GH became members of the All Gedex Employees' Union. Apprehending industrial relations (IR) problems, GH decided to take them on its permanent rolls. Later on, more contract workers of GH formally became members of this Union, but GH did not concede their demand for permanency. These workers continued to work at GH and later at RH under different contractors; for they were well-trained hospital workforce. When RH acquired GH in 2005, some of the contract workers were doing the same work as was done by RH's core workers, and continued to work that way. In October 2015 all contract workers of RH went on strike. Their demands included increase in wages and absorbing them in RH's core workforce. RH argued that all that was the obligation of the contractor concerned through whom they were employed. RH's HR manager contacted the local police, which eventually helped in pacifying these contract workers leading to withdrawal of their agitation. In the meantime, the management enhanced some minor welfare benefits for them through the contractor, but no substantive relief was given. RH was pondering on action it should take, and how to prevent reoccurrence of similar complex situations. It was also considering the working environment that should be made available to contract workers so as to promote their engagement, and also avoiding any possible legal lapses on its part in handling contract labor issues.

Case Description Contract Labor at Regency Hospital: Legal and HR Dynamics

Strategic managment tools used in case study analysis of contract labor at regency hospital: legal and hr dynamics, step 1. problem identification in contract labor at regency hospital: legal and hr dynamics case study, step 2. external environment analysis - pestel / pest / step analysis of contract labor at regency hospital: legal and hr dynamics case study, step 3. industry specific / porter five forces analysis of contract labor at regency hospital: legal and hr dynamics case study, step 4. evaluating alternatives / swot analysis of contract labor at regency hospital: legal and hr dynamics case study, step 5. porter value chain analysis / vrio / vrin analysis contract labor at regency hospital: legal and hr dynamics case study, step 6. recommendations contract labor at regency hospital: legal and hr dynamics case study, step 7. basis of recommendations for contract labor at regency hospital: legal and hr dynamics case study, quality & on time delivery.

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Case Analysis of Contract Labor at Regency Hospital: Legal and HR Dynamics

Contract Labor at Regency Hospital: Legal and HR Dynamics is a Harvard Business (HBR) Case Study on Communication , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Contract Labor at Regency Hospital: Legal and HR Dynamics is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Contract Labor at Regency Hospital: Legal and HR Dynamics case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Contract Labor at Regency Hospital: Legal and HR Dynamics will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Contract Labor at Regency Hospital: Legal and HR Dynamics case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Communication, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Contract Labor at Regency Hospital: Legal and HR Dynamics, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Contract Labor at Regency Hospital: Legal and HR Dynamics case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Communication Solutions

In the Texas Business School, Contract Labor at Regency Hospital: Legal and HR Dynamics case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Contract Labor at Regency Hospital: Legal and HR Dynamics

Step 1 – Problem Identification of Contract Labor at Regency Hospital: Legal and HR Dynamics - Harvard Business School Case Study

The first step to solve HBR Contract Labor at Regency Hospital: Legal and HR Dynamics case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Gh Rh is facing right now. Even though the problem statement is essentially – “Communication” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Gh Rh, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Contract Labor at Regency Hospital: Legal and HR Dynamics. The external environment analysis of Contract Labor at Regency Hospital: Legal and HR Dynamics will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Contract Labor at Regency Hospital: Legal and HR Dynamics case study. PESTEL analysis of " Contract Labor at Regency Hospital: Legal and HR Dynamics" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Contract Labor at Regency Hospital: Legal and HR Dynamics macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Contract Labor at Regency Hospital: Legal and HR Dynamics

To do comprehensive PESTEL analysis of case study – Contract Labor at Regency Hospital: Legal and HR Dynamics , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Contract Labor at Regency Hospital: Legal and HR Dynamics

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Contract Labor at Regency Hospital: Legal and HR Dynamics ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Gh Rh is operating, firms are required to store customer data within the premises of the country. Gh Rh needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Contract Labor at Regency Hospital: Legal and HR Dynamics has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Gh Rh in case study Contract Labor at Regency Hospital: Legal and HR Dynamics" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Gh Rh in case study “ Contract Labor at Regency Hospital: Legal and HR Dynamics ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Gh Rh in case study “ Contract Labor at Regency Hospital: Legal and HR Dynamics ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Contract Labor at Regency Hospital: Legal and HR Dynamics ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Gh Rh can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Contract Labor at Regency Hospital: Legal and HR Dynamics case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Gh Rh needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Contract Labor at Regency Hospital: Legal and HR Dynamics

Social factors that impact contract labor at regency hospital: legal and hr dynamics, technological factors that impact contract labor at regency hospital: legal and hr dynamics, environmental factors that impact contract labor at regency hospital: legal and hr dynamics, legal factors that impact contract labor at regency hospital: legal and hr dynamics, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: contract labor at regency hospital: legal and hr dynamics case study solution.

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Case Study: Termination of a Labor Contract Due to Restructuring

Hannah Huynh

Judgement no. 01/2018/ld-pt.

Judgement level: Appellate level

Judgement court: High-level People’s Court in Da Nang

Matter: Dispute on unilateral termination of a labor contract

Plaintiff: Mr. Alparslan M ( Mr. M ) – Employee

Defendant: AVN Travel and Trading Company Limited ( AVN Company ) – Employer

Summary of facts

Mr. M is a foreigner. He signed a definite-term labor contract with AVN Company for the position of Operation & Supervision Expert for the working period between December 01, 2016 and September 30, 2018. He was granted a work permit No.239/2016/GPLD dated December 01, 2016.

On March 24, 2017, the Human Resource Manager of AVN Company provided Mr. M a Decision on terminating the labor contract dated March 23, 2017 ( Decision dated 23 ). This Decision had no signature of the legal representative of AVN Company but had its stamp affixed on the first page. The reasons for termination were stated as: Mr. M did not comply with regulations of AVN Company as well as decisions by his line manager, had repeated violations, did not swipe the timekeeping card, and failed to complete the assignment as requested by his line manager.

On March 25, 2017, AVN Company issued another Decision on terminating the labor contract with Mr. M dated March 25, 2018 ( Decision dated 2 5 ). The reason for the termination stated was due to restructuring. Before this, however, as per its Labor Utilization Plan when restructuring, AVN Company planned to transfer Mr. M to the accounting department because Mr. M had accounting expertise, provided that he would be issued a work permit for such new position by the Department of Labor – Invalids and Social Affairs

Requests of the plaintiff: By issuing Decision dated 23, Mr. M claimed that AVN Company illegally unilaterally terminated his labor contract as well as violated the advance-notice obligation. Therefore, Mr. M requested that AVN Company (i) revoke Decision dated 23, (ii) reinstate him, (iii) pay him the salaries and other benefits for the period during which he was not allowed to work, (iv) compensate him 02 months’ salary, and (v) additionally compensate him in other amounts if not reinstating him.

Defendant’s opinion: AVN Company disagreed with the requests of Mr. M by arguing that Decision dated 23 was invalid.

Decisions of the Court

To accept the argument of AVN Company to not recognize the validity of Decision dated 23.
To accept the termination by AVN Company of Mr. M’s labor contract due to restructuring under Decision dated 25
To force AVN Company to pay Mr. M a job-loss allowance in accordance with the law.

Relevant Legal Issues and Assessment

Validity of decision on terminating the labor contract.

In the above-mentioned case, there were two decisions on terminating the labor contract with two different reasons, respectively Decision dated 23 and Decision dated 25. The Court rejected the validity of Decision dated 23 because it was without the signature of the legal representative of AVN Company. The Court’s rejection was reasonable.

This is because under Article 3 of Decree No.05/2015/ND-CP (amended by Decree No.148/2018/ND-CP), the signer of a labor contract on behalf of the employer must be its legal representative as provided in the company’s charter or a person authorized by its legal representative under written authorization. Accordingly, the termination must be also made by the legal representative or the person authorized by the legal representative under written authorization. Decision dated 23 was sent to Mr. M by the Human Resource Manager of AVN Company but had no signature of the legal representative and, therefore, was invalid.

As shown from the above precedent, companies should pay attention to sending any termination notice to employees. This is because any mistake can later be used against the company in any lawsuit filed by the employee. Returning to the case mentioned above, it was explained that Decision dated 23 was just a draft which was sent by the Human Resource Manager of AVN Company to Mr. M for his comments before officially being presented to the management of AVN Company for approval. Regardless of this justification, Mr. M considered it as evidence of illegal unilateral termination and subsequently sued AVN Company to claim compensation.

In practice, the human resource departments of not only AVN Company but also many other companies have got into the administrative habit of sending drafted documents (e.g. notices, agreements, etc.) of labor contract termination to relevant parties, especially emails notifying the employees of the companies’ termination plan in advance. However, often the human resource departments fail to foresee the potential risks of this action. Specifically, if there is any inappropriate content in these documents or emails, they can become decisive evidence against companies in a dispute regarding illegal unilateral termination, which can lead to heavy compensation to be paid by the company.

Therefore, before issuing any official decision on terminating the labor contract with any employee, the company must be careful and should restrict providing employees with any information in any form which can be recorded.

Proving restructuring as the reason for termination of the labor contract

In practice, it is very difficult to prove restructuring as the reason for termination of the labor contract. Specifically, the company must successfully prove (i) restructuring is necessary due to actual business demands and (ii) that the company has put all its efforts into retraining its employees for new positions after restructuring but does not have positions available for all transitioned employees and, as a result, has to terminate employment.

In the above-mentioned case, AVN Company intended to transfer Mr. M from an Operation & Supervision Expert position to accounting according to its Labor Utilization Plan. However, the Department of Labor – Invalids and Social Affairs issued its opinion about AVN Company’s plan in that: many current colleges and universities in Vietnam provide perfectly adequate training for accounting majors, thus, employing a foreigner for such a position was unnecessary. Therefore, the Department of Labor – Invalids and Social Affairs did not agree to issue a work permit for Mr. M for his new position as an accountant.

The opinion of the Department of Labor – Invalids and Social Affairs was one basis on which the Court accepted the reason why AVN Company could not transfer Mr. M to a new position but had to terminate his labor contract. Nevertheless, it was AVN Company’s mistake to issue Decision dated 25 to terminate Mr. M’s labor contract before getting the full and official opinion from the Department of Labor – Invalids and Social Affairs denying the work permit for Mr. M’s new position. As a matter of fact, it is noteworthy that when terminating employment due to restructuring, companies must comply with the regulation of “ giving a 30-day advance notice to the provincial labor competence authority” before termination (Article 44.3 of the 2012 Labor Code) to ensure that the termination is legal. Meanwhile, compliance with the regulations of work permits when the restructuring affects foreign employees’ job should be also taken into account.

Giving notice to employees when terminating a labor contract due to restructuring

When terminating a labor contract due to restructuring, companies are not responsible for giving advance notice to the employees. On the contrary, this is a must in cases of unilateral termination of a labor contract under Article 38 of the 2012 Labor Code (i.e. giving an at least 30-day advance notice if it is a definite-term labor contract, or an at least 45-day advance notice if it is an indefinite-term labor contract). This was re-confirmed by the Court in AVN Company’s case.

However, based on this precedent, it can be seen that there is only a thin line to distinguish between the termination of a labor contract due to restructuring (Article 44 of the 2012 Labor Code) and unilateral termination of a labor contract (Article 38 of the 2012 Labor Code), which is based primarily on the ability of the company to prove the reason for labor contract termination.

Any minor mistake during the termination procedure during restructuring can lead to classification as an illegal unilateral termination because the nature of termination due to restructuring is still basically a unilateral action by the companies. Therefore, though it is not required by law, the companies should give advance notice to the employees referring to Article 38.2 of the 2012 Labor Code, i.e. notifying the employees in advance at least 30 days in case of a definite-term labor contract, or at least 45 days in case of an indefinite-term labor contract.

If you have any questions or concerns regarding the restructuring, unilateral termination of labor contract, creation of the labor utilization plan, consulting with representative organization of employees at grassroot level, collection and submission of lawful evidence in a labor dispute under the labor law and the civil procedure law of Vietnam, our Labor Lawyers and Litigation Lawyers are always available at [email protected] .

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Emotional intelligence plays a key role in conflict resolution. People with strong analytical skills often tend to focus on the logical and right-wrong aspects of an issue, which is not the most effective approach for conflict resolution. Emotional intelligence is necessary to maintain self-control and avoid getting stuck in a right-wrong mindset. Knowing when to stay silent is also an important aspect of emotional intelligence in order to achieve a satisfactory outcome for all parties involved.

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Analytical skills.

Litigation, a term derived from the Latin word “litigare,” meaning “to dispute,” is the process of taking legal action through courts to enforce or defend a legal right. It involves a series of steps, from the initial filing of a lawsuit to the final resolution, often through a court trial or settlement. This legal mechanism is fundamental in maintaining the rule of law, resolving disputes, and ensuring justice in society.

The litigation process typically begins when one party, known as the plaintiff, files a complaint against another party, the defendant. This complaint outlines the plaintiff’s allegations and the legal basis for the lawsuit. The defendant is then served with a summons and a copy of the complaint, providing formal notice of the legal action.

1. Pleadings: The initial phase of litigation involves pleadings, where both parties submit written statements. The plaintiff files a complaint, and the defendant responds with an answer, which may include counterclaims against the plaintiff. This exchange of documents establishes the issues in dispute and the positions of each party.

2. Discovery: Discovery is a critical phase where both parties gather evidence to support their claims and defenses. This process includes depositions, interrogatories, requests for documents, and admissions. Discovery ensures that both parties have access to relevant information, promoting transparency and fairness in the litigation process.

3. Pre-Trial Motions: Before the trial, parties may file various motions to resolve specific issues or potentially dismiss the case. Common pre-trial motions include motions to dismiss, motions for summary judgment, and motions to compel discovery. These motions aim to streamline the trial by addressing legal and procedural matters in advance. 4. Trial: If the case proceeds to trial, both parties present their evidence and arguments before a judge or jury. The trial involves opening statements, witness examinations, cross-examinations, and closing arguments. The judge or jury then deliberates and renders a verdict, determining the outcome of the case. 5. Post-Trial Motions and Appeals: After the trial, the losing party may file post-trial motions, such as a motion for a new trial or a motion for judgment notwithstanding the verdict. If these motions are denied, the losing party can appeal the decision to a higher court. The appellate court reviews the trial record and determines whether legal errors were made that could have affected the outcome. Types of Litigation Litigation encompasses various types of legal disputes, each with unique characteristics and procedures: 1. Civil Litigation: Civil litigation involves disputes between individuals, businesses, or organizations seeking monetary damages or specific performance. Common examples include contract disputes, personal injury claims, and property disputes. The burden of proof in civil cases is typically “preponderance of the evidence,” meaning that one party’s case must be more convincing than the other’s. 2. Criminal Litigation: Criminal litigation involves the prosecution of individuals or entities accused of violating criminal laws. The government, represented by a prosecutor, brings charges against the defendant. The burden of proof in criminal cases is “beyond a reasonable doubt,” a higher standard than in civil cases, reflecting the serious consequences of criminal convictions. 3. Administrative Litigation: Administrative litigation occurs when individuals or entities challenge the decisions or actions of government agencies. These cases often involve regulatory compliance, licensing, and enforcement actions. Administrative hearings are typically less formal than court trials, with specific procedures and rules governing the process. The Role of Attorneys in Litigation Attorneys play a crucial role in the litigation process, representing the interests of their clients and navigating the complexities of the legal system. They provide legal advice, draft pleadings and motions, conduct discovery, negotiate settlements, and advocate for their clients in court. Effective litigation requires a deep understanding of substantive and procedural law, strategic thinking, and strong advocacy skills. Conclusion Litigation is a cornerstone of the legal system, providing a structured process for resolving disputes and upholding the rule of law. While it can be lengthy, costly, and adversarial, litigation remains an essential mechanism for achieving justice and accountability. Understanding the stages, types, and roles involved in litigation is vital for anyone navigating the legal landscape, whether as a plaintiff, defendant, or legal professional.

5. Post-Trial Motions and Appeals: After the trial, the losing party may file post-trial motions, such as a motion for a new trial or a motion for judgment notwithstanding the verdict. If these motions are denied, the losing party can appeal the decision to a higher court. The appellate court reviews the trial record and determines whether legal errors were made that could have affected the outcome.

Litigation encompasses various types of legal disputes, each with unique characteristics and procedures:

1. Civil Litigation: Civil litigation involves disputes between individuals, businesses, or organizations seeking monetary damages or specific performance. Common examples include contract disputes, personal injury claims, and property disputes.

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Contract Labor in Developing Economies

Living reference work entry
First Online: 29 August 2021
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Arnab K. Basu 2 ,
Nancy H. Chau 2 &
Vidhya Soundararajan 3

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Contract employment has become an iconic feature of labor markets in many countries worldwide. These are workers employed at a fixed-term or fixed task basis often times via employment intermediaries. Contract workers typically confront inferior benefits relative to workers with open-ended contracts and no access to severance payments in the event of job termination. This chapter surveys the contract employment literature with a focus on developing country labor markets. It begins with some of the rationales that have guided the popularity of contract developing countries often do not conform to the timeworn definition of good jobs, namely, open-ended employment at prescribed wage and benefit trajectories depending on performance, and a severance package in the event of dismissal. Quite the contrary, workers in developing countries confront job insecurity, uncertainty with respect to wages and benefits, and poorly enforced employment protection laws. This chapter explores the findings of a growing literature on the economics of contract employment in developing countries.

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Acknowledgments

Responsible Section Editor: M Niaz Asadullah

The article has benefitted from valuable comments of the editor. There is no conflict of interest. All remaining errors are our own.

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Arnab K. Basu & Nancy H. Chau

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Correspondence to Nancy H. Chau .

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IZA Institute of Labor Economics, Bonn, Germany

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Basu, A.K., Chau, N.H., Soundararajan, V. (2021). Contract Labor in Developing Economies. In: Zimmermann, K.F. (eds) Handbook of Labor, Human Resources and Population Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-57365-6_82-1

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DOI : https://doi.org/10.1007/978-3-319-57365-6_82-1

Received : 15 January 2021

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Published : 29 August 2021

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The top 7 recent employment law cases you should know

By David I. Brody

Jul. 31, 2020

When March began this year, nobody had any idea what was just around the corner – a global pandemic, a fiscal meltdown, unprecedented unemployment and a national reckoning with the terrible consequences of centuries of racial violence and inequity. Then we all witnessed a historic decision from the Supreme Court, affirming, at long last, that our family and friends in the LBGTQ community are protected from discrimination in employment under federal law.

In this ever-changing landscape, it is increasingly important to keep up to speed on the latest employment legal cases and developments. Below is a brief summary of the seven most significant employment legal cases.

1. U.S. Supreme Court Issues Landmark Civil Rights Decision

Bostock v. Clayton County, 590 U.S. (2020)

The Supreme Court has issued a landmark decision in Bostock v. Clayton County , holding that Title VII prohibits discrimination against employees based upon sexual orientation and transgender status.

In the 6-3 Opinion of the Court, written by Justice Gorsuch — who, along with Chief Justice Roberts, sided with the four “liberal” members of the Court — the majority held that a “straightforward” rule emerges from the ordinary meaning and application of Title VII’s prohibition against sex discrimination:

“[F]or an employer to discriminate against employees for being homosexual or transgender, the employer must intentionally discriminate against individual men and women in part because of sex . That has always been prohibited by Title VII’s plain terms — and that should be the end of the analysis.’”

Such discrimination has long been a violation of Massachusetts law, Chapter 151B, but with the Bostock decision, it is now clearly unlawful to discriminate in employment on the basis of sexual orientation or gender identity.

2. Unlawful Employment Practices During the COVID-19 Pandemic

During these uncertain times, employers and employees alike are struggling to understand their legal rights and obligations. To that end, there has been a great deal of COVID-specific guidance provided by state and federal agencies, including the U.S. Equal Employment Commission , Massachusetts Commission Against Discrimination , and Office of the Attorney General .

It is important to remember that neither a global pandemic nor an economic recession can be used as a shield by employers to carry out unlawful employment practices.

Indeed, as the Massachusetts Supreme Judicial Court has noted, just because an employer may be required to “reduce its workforce does not mean that it is free to make its employment decisions on impermissible grounds: ‘even during a legitimate reorganization or workforce reduction, an employer may not dismiss employees for unlawful discriminatory reasons.’” See Sullivan v. Liberty Mut. Ins. Co. , 444 Mass. 34, 41–42 (2005).

If you think that you may have been illegally targeted, seek legal counsel as soon as possible and prior to waiving any legal rights.

Hlatky v. Steward Health Care System, Inc., 484 Mass. 566 (2020)

Following a jury trial, Dr. Hlatky, an experienced cancer researcher, was awarded $10 million in damages in a breach of contract action against her former employer, Steward Health. The $10 million damage award represented the cost of reestablishing her research laboratory, which she lost as a result of Defendant’s unlawful conduct.

On appeal, the Massachusetts Supreme Judicial Court unanimously agreed the damages awarded were not too speculative, noting that the harm suffered by Dr. Hlatky, including the loss of her research laboratory, equipment, and cell samples, constituted her “life’s work.”

The Court was, however, divided regarding whether restrictions should be imposed on how Dr. Hlatky could use the $10 million award. In the six Justice decision, three Justices were concerned that, since the laboratory had not actually belonged to Dr. Hlatky, an unrestricted award might put Dr. Hlatky in a better position than she would have been had there been no breach, e.g., “[n]othing would prevent Hlatky from spending the $10 million on a house or a yacht rather than on the re-establishment of a cancer research laboratory.”

The other three Justice were not persuaded, “Whether she wishes to start again, whether she even could start again after so much time has passed and her faculty position has been lost, whether she wishes to use the money to fund different research or others; research in the same field, or whether she wants to hike the Appalachian trail — these matters simply are not our concern.”

These Justices pointed out that imposing restrictions on such a damage award would open a “Pandora’s box of unknown future harm to the predictability of contract law upon which contracting parties have relied for hundreds of years.”

As the Court was equally divided, the trial court’s award of monetary damages – without restrictions – was affirmed.

4. Non-Competition Agreements and the “Material Change” Doctrine

Now Bus. Intel., Inc. v. Donahue, C.A. No. 17-3732 (Middlesex Sup Ct. Apr. 1, 2020)

A non-competition agreement may become unenforceable if, after execution, the terms and conditions of employment are modified to the point where the parties have effectively abandoned the original employment agreement and entered into a new employment agreement. This is known as the “material change” doctrine which was delineated in F.A. Bartlett Tree Expert Co. v. Barrington, 353 Mass. 585 (1968). The application of the material change doctrine is a highly fact-specific inquiry and will focus on factors, such as promotions, changes in job duties and titles, changes in remuneration, changes to sales area, as well as the associated time periods for such changes.

In the recent case of Now Bus. Intel. Inc. V. Donahue , the Superior Court rejected an employee’s material change defense to the enforceability of his non-compete. In granting Summary Judgment in favor of the former employer, the Court ultimately held that the temporary and short-term changes to the employee’s job duties, without more, did not amount to a material change sufficient to render otherwise reasonable and valid post-employment restriction unenforceable.

5. Anti-SLAPP Motion Revived

Rosario v. Caring Bees Healthcare, Inc., C.A. No. 19-P-1223 (Mass. App. Ct. June 5, 2020)

Retaliatory lawsuits designed to silence one from speaking out are referred to as strategic lawsuits against public participation, or “SLAPP Suits,” and are expressly forbidden in Massachusetts. See the Anti-SLAPP Statute, M.G.L. c. 231, § 59H (the “Statute”). The Statute provides a quick mechanism to dispose of SLAPP suits, and it allows the victim of a SLAPP suit to recover attorney’s fees.

Here, Ms. Rosario had complained (to co-workers, her mother, the MCAD, and, finally, in court) of sexual harassment by her supervisor, Jean Paul Karangwa. In response, Mr. Karangwa counter-sued Ms. Rosario for defamation and intentional infliction of emotional distress. Relying on the Statute, Ms. Rosario moved to dismiss Mr. Karangwa’s counter-claims. The lower court denied her motion, indicating that there was a colorable basis to believe that Ms. Rosario’s statements were defamatory, i.e ., false and causing damage to Mr. Karangwa.

However, the Massachusetts Appeals Court reversed and remanded. The Court reiterated that the legal issue was not solely whether Mr. Karangwa’s claims were “colorable” but also, if so, whether or not they were retaliatory, i.e. , “primarily brought to chill [Ms. Rosario’s] legitimate petitioning activities.”

In considering whether or not Mr. Karangwa’s counterclaims were retaliatory, the lower court should consider, among other things, (1) whether the claims are ‘typical’ SLAPP claims, e.g., claims that one would not likely bring on their own, (2) the temporal proximity of when the counter-claims were brought to when Ms. Rosario engaged in escalated protected activity, e.g., when Ms. Rosario filed her claims to court, and (3) the chilling impact on such activity by, for example, increasing the cost to Ms. Rosario of complaining about sexual harassment.

The case was remanded to the lower court for a sequential application of the correct anti-SLAPP standard.

6. Enforcement of Arbitration Agreements

Theodore v. Uber Technologies, Inc., C.A. No. 18-cv-12147 (D. Mass. Mar. 3, 2020)

Many executives (and employees generally) are subject to arbitration clauses of which they are unaware until a dispute arises. The enforceability of such clauses is often hotly disputed. This is particularly true in civil rights cases, pitting two established principles against each other ( i.e. , the preference for arbitration under federal law against a strong public policy against discrimination). Enforceability is often fact-specific, such as whether the agreement to arbitrate and the waiver of judicial remedy are sufficiently obvious and clear.

Although Theodore is not an employment case, its analysis may be useful, especially regarding on-line forms that invite a user to follow one or more links which can be easily bypassed. The US District Court’s analysis involved not only a review of the text itself but also a discussion of the font size, layout, and background color on the page. The Court went so far as to include screen-shots in the decision.

Ultimately, the Court refused to compel arbitration where Uber invited a customer to click to “CREATE ACCOUNT” without “reasonably communicating” the impact of doing so.

7. The Process – and Not Just the Final Decision – Matters

Comcast Corp. v. Nat’l Assoc. of African American-Owned Media, 140 S.Ct. 1009 (2020)

In Comcast , the Supreme Court of the United States unanimously held that the but-for causation standard applies to claims of racial discrimination raised under 42 U.S.C. § 1981, a statute which guarantees all persons the same right “to make and enforce contracts . . . as is enjoyed by white citizens.” However, the Court expressly declined to decide an issue raised by Comcast, i.e , whether § 1981(a) guarantees only the right to equivalent contractual outcomes, as Comcast argued, or if it also guarantees the right to an equivalent contracting process, as the law has been interpreted for years.

In her concurrence, Justice Ginsburg addressed Comcast’s argument directly:

“I write separately to resist Comcast’s attempt to cabin a ‘sweeping’ law designed to ‘break down all discrimination between black men and white men” … Under Comcast’s view, § 1981 countenances racial discrimination so long as it occurs in advance of the final contract-formation decision. Thus, a lender would not violate § 1981by requiring prospective borrowers to provide one reference letter if they are white and five if they black. Nor would an employer violate § 1981 by reimbursing expenses for white interviewees but requiring black applicants to pay their own way … That view cannot be squared with the statute. An equal ‘right … to make… contracts’ … is an empty promise without equal opportunities to present or receive offers and negotiate over terms … It is implausible that a law ‘intended to secure … practical freedom’ … would condone discriminatory barriers to contract formation.”

As Justice Ginsburg recognized, and recent events have made abundantly clear, we must remain vigilant to protect and expand, not erode, our civil rights laws.

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20 most important Labour Law judgements every HR manager should learn about

This article is written by Gaurav Kumar , from Surendranath Law College (University of Calcutta). This article depicts the landmark judgments pertaining to labour laws.

Table of Contents

Introduction

The Labour law is the area of law that regulates the relationship between the employer and the employee. An employer could be government agencies or private entities, companies, organizations, industry. It also mediates the relation between trade unions, employing entities. Recently, the Parliament of India passed three long-awaited labour codes compiling the 29 central laws. The three codes are:

The Industrial Relations Code Bill, 2020 ;
Code on Social Security Bill, 2020 ;
The Occupational Safety, Health and Working Conditions Code Bill, 2020 .

They received Presidential assent on September 29, 2020, bringing a major change in the arena of Labour and Employment Laws. Since, “Labour” falls under the concurrent list of the Constitution of India , so both the Parliament and the State legislature can make laws on the subject. Prior to the existence of newly formed labour codes, there were more than 40 central laws related to the subject “labour and employment”.

The second National Commission on Labour (2002) found the existing laws were complex with anarchic provisions, so it proposed the consolidation of the existing laws. In this article, we will discuss twenty landmark judgements pertaining to the Labour Laws that every HR manager should learn. However, the new labour codes have not been enforced yet. It will be tentatively enforced by the upcoming financial year (April 2021).

Social Welfare Act

Workmen of m/s firestone tyre and rubber co. of india v. management, air 1973, sc 1227 air 1227, 1973 scr (3) 587.

In this case , the workmen of the Firestone Tyre and Rubber Company had a dispute with its employer as the employer had terminated its workmen on the basis of a Domestic Inquiry Finding. During the pendency of the case, the Industrial Tribunal Act was amended in 1971 and Section 11A was inserted conferring the power over the Appellate Authority to the Industrial Tribunal over the domestic enquiry into the arising disputes.

The Tribunal decided in the favour of the employer, denying to have the retrospective effect of Section 11A. Aggrieved from the decision of the tribunal, the workmen moved to the apex court against the employer.

The issue before the Supreme Court was on the interpretation of Section 11A of the Industrial Disputes Act, 1947. Since, the section was inserted through amendment amidst the pending suit, the question in issue was whether the said section shall be applicable on the case which is instituted prior to the insertion of the said section.

The Supreme Court stated that the Industrial Disputes Act, 1947 was a beneficial piece of legislation, enacted by the legislature for the betterment of the employees. The Court found the legislation to be a welfare one so it decided to apply the beneficial rule of legislation. It was further held that in case of arising disputes among the two parties, leniency will be applied over the view which will be in the best interest of employees.

However, the suit was instituted prior to the amendment so the said section shall not be applicable in this case. It shall be only applicable to the cases which are instituted after the amendment in the Industrial Dispute Act, 1947.

Appropriate Government: Central Government as well as State Government

Steel authority of india limited v. national union waterfront workers, air 2001, appeal (civil) 6009-6010 of 2001.

In this case , the appellants, a Central Government Enterprise, along with its manager is having their business of manufacturing iron and steel products. The Company is also engaged in import-export of its goods through the Central Marketing Organisation, which is the marketing unit of the company. The company has its branches located in different parts of the Indian territory. The work of goods handling at the stockyard was provided to the contractors.

The Government of West Bengal vide its notification issued under Section (10)(1) of the Contract Labour (Regulation and Abolition) Act, 1989 prohibited contract labour at four specified stockyards in Calcutta.

However, the Government of West Bengal put the said notification into abeyance through the notification vide dated August 28, 1989, but further extended that period from time to time till August 31, 1994.

The contract labourers filed a petition before the Calcutta High Court seeking the direction for the appellants SAIL for the absorption of contract labour in their regular establishment in view of the prohibition notice issued by the West Bengal State Government. The primary question in the issue was who is an appropriate government with regard to the Contract Labour (Prohibition and Regulation) Act, 1970.

The Division Bench of the Calcutta High Court dismissing the writ petition stated that on the relevant date of prohibition notification, the appropriate government was the “State Government”.

Aggrieved from the decision of the High Court, the appellant preferred an appeal before the apex court. The issue before the apex court was with regard to the correct interpretation of the term “appropriate government” as defined in Section 2(1)(a) of the Contract Labour (Regulation and Abolition) Act, 1970.

The apex court held that any company which was being run on the power bestowed by the Central Government to the central government companies or its undertaking if fails to operate due to the lack of conferment power the company shall be considered to be an industry under the Central Government. The Court held that the appropriate government was Central Government under the Contract Labour (Regulation and Abolition) Act, 1970.

State Government

Hindustan aeronautics limited v. workmen air 1975, 1975 air 1737, 1976 scr (1) 231.

In this case , the appellant Hindustan Aeronautics Limited is a company registered under Section 617 of the Company Act, 1956 . The Central Government purely owns the share of the company. This case is regarding 1000 workers who were working in the company’s repairing unit situated at Barrackpore, West Bengal. The major issues were with regard to the allowance of the education of employees, revision of lunch allowances and for the permanency of their job.

In this case the West Bengal Govt. referred to the dispute under Section 10(1) of the Industrial Dispute Act, 1947

The Industrial Tribunal partly granted relief to the workmen. The appellants approached the apex court with the issue that whether the West Bengal government was the appropriate government to refer the dispute or not. The Supreme Court held that the appropriate government was the West Bengal government as the branch or industrial unit of the company was carrying out a “separate” kind of work in West Bengal.

The workers were being paid at the company and they were totally regulated by the officials of the company’s branch at Barrackpore in West Bengal. In such a case, if any kind of disputes or disturbances arises, the onus lies on the West Bengal government for the settlement of those disputes and maintaining industrial peace.

Industry Definition

Bengaluru water supply and sewerage board v. a rajappa air 1978, 1978 air 548, 1978 scr (3) 207.

In this case , the dispute was between the appellants Bengaluru Water Supply and Sewerage Board, its management and the respondents employees. For some kind of misconduct, the board had levied a fine over the employees and recovered the money from them. The respondents approached the labour court against such a fine under Section 33C(2) of the Industrial Disputes Act, 1947 alleging that such imposition of a fine was against the principle of natural justice.

The appellant board put the contention that it was a statutory body serving the citizen, so it doesn’t come under the ambit of the definition of the term “industry” as provided in the Act. The labour court rejected the contention and held that the board comes under the ambit of “industry” as under Section 2(j) of the Industrial Disputes Act, 1947.

The board management aggrieved from the order of the Labour Court approached the High Court of Karnataka with a writ petition objecting that the board was not covered under the definition of “industry” as held by the Labour Court. The High Court of Karnataka rejected the objection, and upheld the labour court’s order.

The board management approached the Supreme Court with the issue of whether it was covered under the definition of industry or not. The apex court in order to declare the identity of industry, laid down a test to determine the activities carrying out by the industry This test was called the “Triple Test method”:

Whether there is a systematic activity carried out on the cooperation between the employer and the employee for the purpose of production and services all the satisfaction that the human being wants and wishes;
It is material to know whether there is an absence of profit gainful objective behind the corporation or venture;
The major focus is on the employer-employee relation;
If the organisation is for trade or business purpose it would not cease to be one based upon its philanthropic nature.

Hence, an organization having all the said elements not being a trade or business would be considered as an industry. The apex court held Bangalore Water Supply and Sewerage Board an industry as per section provided under the Industrial Disputes Act.

Individual dispute vs. Industrial dispute

Central provinces transport limited nagpur, v. raghunath gopal patwardhan 1957 air 104, 1956 scr 956.

In this case , respondent Raghunath Gopal Patwardhan was working under the appellant “Central Provinces Transport Limited Nagpur”. The appellant alleged that the respondent stole some of the goods from the appellant’s company. A domestic inquiry was conducted by the company where the respondent was found guilty. He was dismissed on the ground of misconduct and gross negligence.

The respondent approached the Industrial Court for reinstatement, where the appellant contented the maintainability of the case as it was an individual dispute, not an industrial dispute.

The Industrial Court decided in the favour of the respondent claiming the dispute to be an industrial one. This position was upheld by the Labour Appellate Tribunal while deciding the appeal filed by the appellant.

Aggrieved by the order of the Labour Appellate Tribunal, the appellant approached the Supreme Court. The apex court held that the dispute was an individual one and not an industrial one. The court further added that the dispute would have been industrial if the cause had been taken by the union or a mass of workmen.

The court was of the opinion that the definition of Section 2(k) of the Industrial Dispute’s Act was wide enough to include a dispute between an employer and an employee. Further, the dispute must attract the workmen’s support from the industry to become an industrial one otherwise it will be an individual one.

Employer definition

Hussainbhai calicut v. alath factory thozhilali union, air 1978, 1978 air 1410, 1978 scr (3)1073.

In this case , the petitioner was the owner of the factory engaged in the manufacturing of ropes. He had hired some contractors for the purpose of engaging workmen in his factory. Some of the workers were denied employment stating that they were not factory’s workers but hired by the contractors.

The dispute was raised by the respondent in the Industrial Court against the denial of their employment. The Industrial Court decided in the favour of the workmen union and this position was upheld by the High Court of Kerala on an appeal filed by the appellant.

The owner of the industry preferred an appeal before the Supreme Court stating that there was no employer-employee relationship between him and the workers as they were hired by the contractors.

The apex court held that in an industry or a factory where the employees produce goods and services for the business of another person, then the other person shall be the employer. In order to find whether he is an employer or not, the factors of continued employment and the economic control upon the workers by the industry is to be taken into consideration. The court further added that if the livelihood of the workmen is directly dependent on the service provided by him in the industry, then it would not leave an effect on whether there is a direct relationship or not. One who has been in charge throughout the period shall be the real employer.

Workman definition

Arkal govind rajrao v. ciba geigy of india ltd, 1985 air 985, 1985 scr supl. (1) 282.

In this case, the appellant Arkal Govind Rajrao joined the respondent’s company as a stenographer-cum-accountant on 18 January 1956. After almost 10 years of time, the appellant was promoted to the post of assistant. However, in 1972 the company terminated him with the contention that he was not a “workman” defined as under Section 2(s) of the Industrial Disputes Act. The District Commissioner Labour (Administration), Bombay referred the dispute before the Labour Court.

The Labour Court dismissed the petition with the view that the claimant was not a workman as he was carrying out administrative and supervisory work along with clerical work, so he could not be kept under the definition of workman as provided under Section 2(s) of the Industrial Dispute’s Act.

The appellant filed an appeal in the Supreme Court against the aggrieved order of the Labour Court. The apex court was of the view that the appellant was a workman under the definition provided in Section 2(c) of the Industrial Disputes Act. The court held that the person would not be a workman if he is indulged in some supervisory activities.

The apex court further added that while adjudicating such matters one has to put in mind what are primary and basic duties along with the secondary duties of the person, as the secondary duties do not change the character and nature of the person. The court said that basic duties have to be considered first and it doesn’t affect the nature and character of the duties of the person.

National Engineering Industries Ltd. v. Kishan Bhageria, 1988 AIR 329

In this case , respondent Kishan Bhageria was working as an internal auditor. He was absent from the office for a period of time, so the company stopped his salary and sent him on suspension. The respondent filed an application but he was dismissed from the service.

The respondent filed an application before the Labour Court against his dismissal. The appellant contended that respondent’s claim was not maintainable as he was not under the term “workman” provided under the act. The Labour Court held that the respondent was a workman as under the definition of Section 2(s) of the Industrial Disputes Act.

The appellant moved the High Court of Rajasthan against the order. The single bench judge of the Rajasthan High Court held that respondent Kishan Bhageria was not a workman as under the said act. The appeal was again filed before the Division Bench of High Court where the order of the Ld. single bench judge was reversed.

The management company moved to the apex court against the order. The Supreme Court stated that the fact in issue was whether the person was working for the managerial post or supervisory post, and for the purpose of deciding it, one has to look into the nature of the duties of the claimant.

The Supreme Court stipulated that a supervisor is a person taking decisions on the behalf of the company. The person can’t be held as a supervisor if he is merely reporting the affairs of the company and the management.

In the said matter the apex court held the respondent as “workman” as he was not engaged in managerial work or administration work. The Court also held that the person if would have been engaged in work of assigning duties among the other staffs then he shall qualify the criteria of being a “supervisor”.

Strikes and lockout

Syndicate bank and ors v. k. umesh nayak, 1995 air 319, 1994 scc (5) 572.

In this case , the major issue before the Supreme Court was whether the workmen were to get paid during the period of strike despite the fact that the strike was legal or illegal. The apex court decided the matter in the light of conflicting opinions rendered by itself in other decisions of the smaller bench.

The apex court held that the strike can be held illegal if it contravenes the provisions of the Industrial Disputes Act, 1947. For the purpose of deciding the legality of the strike the Court had to take certain things into consideration such as; whether the demands of the workmen like pay scale, service issues were justified or not. The Court stated that in every case the detailed inquiry on facts and circumstances of the strike shall be taken into consideration.

The SC held that the strike is a result of a long struggle between the employer and the employee. It is the last weapon available to the employees in order to allow their demands to be fulfilled by the industry. The court stated it as an abnormal act and the Industrial Legislation doesn’t deny the worker’s right to protest and it seeks the concept of the strike to be regulated with the right of the employer to lockout and provide machinery for peaceful inquiry and settlement of disputes between them. The court ordered the employer to pay the workers for the “strike period”.

Excel Wear v. Union of India, 1979 AIR 25, 1979 SCR (1)1009

In this case , Excel Wear is a garment manufacturing firm/petitioner having 400 employed workers in its firm. The relationship between the employer and employee deteriorated as the workers became very militant and aggressive. The appellant was the management of Excel Wear. The workers of the company started doing unjustifiable strikes.

The petitioner approached the government-respondent for the closure of the undertaking. The Government disallowed the closure of the undertaking.

Aggrieved from the order of the government/respondent, the appellant approached the Supreme Court of India. The apex court held that the right to business is not equal to the carry on business as both things can’t go together. The court further held that the right to close the business is not an absolute one and can be restricted and regulated by the legal provisions.

The Constitutionality of Section 25(o) of the Industrial Disputes Act, 1947 was scrutinized and the court found it unconstitutional. The said section didn’t require the government to provide any reasons for the closure of the business. However, in this case, as the workers had become violent, it was not safer for the employer to continue the business.

The Court added that the employer’s life can’t be put at risk.

Retrenchment

Municipal corporation of greater bombay v. labour appellate tribunal of india, air 1957 bom 188.

This question of retrenchment was discussed in this case. The term “retrenchment” means the termination of the employee by the employee for reasons other than awarding punishment by way of disciplinary action, as defined under Section 2 (gg)(oo) of the Industrial Disputes Act, 1947. The section also states providing compensation to the employee. Retrenchment of employees is generally done so as to relieve them from a job in good faith.

In this case, the employee company sent the show-cause notice to the employer with regard to some misconduct as an inquiry was held. The employee was found guilty and thus unfit for the company. So, the company terminated him from the service.

The claimant filed the petition against the company for reinstatement and compensation as he claimed that the company had illegally terminated him. The Labour Court found merits in the case and allowed the claim of the claimant.

Aggrieved from the order of the Labour Court the appellant approached the High Court of Bombay. The Bombay High Court held that there was no retrenchment in this case as the claimant was removed on the basis of the disciplinary proceedings initiated against him. The High Court further held that retrenchment can only take place when the employer is relieved from the services in good faith and not as a disciplinary action taken as a punishment.

Management of Kairbetta Estate, Kotagiri Po v. Rajamanickam, 1960 AIR 893, 1960 SCR (3) 371

In this case , Ramkrishna Iyer the manager of the appellant was violently assaulted by the workers which resulted in serious injury along with multiple fractures. The staff of the company was also threatened by the workers. The staff of the lower division denied going on work in the lower division as a threat to their lives. The management closed the company’s lower division for a period of time.

The respondents filed a complaint in the Labour Court under Section 33A of the Industrial Disputes Act, 1947 as they contended that the work in the division was stopped without any prior notice. The said section deals with the adjudication of the disputes whether the conditions of the service changed during the pendency of the proceedings. The respondents also claimed compensation for the layoff as under Section 25 of the Industrial Disputes Act, 1947. The Labour Court allowed the claim of the respondents.

Aggrieved from the order of the Labour Court the appellant approached the apex court. The apex court while deciding the issue made the distinction between the layoff and the lockout and held that the present case was “lockout” not “lay-off” as there was a work stoppage initiated by the management of the company due to the labour dispute. In the layoff, the management has to provide compensation if the work is stopped due to different reasons such as shortage of coal or anything similar.

The lockout was a tool available to the employer to force his demands against the employee. The Supreme Court held that in this case, the workmen had become aggressive and went out of control of the employer and not adhering to his request, so the employer can make a closure and such closure shall be considered as a lockout not layoff, hence no compensation shall be provided to the workman.

Suits of Employment

Indian express newspaper v. state of west bengal (2005) iillj 333 cal.

In this case , the appellant was Indian Express, a print media agency. The claimant was posted in the Calcutta office of the appellant the Indian Express. The claimant was transferred to Bombay from the Calcutta office but he didn’t join the office at the prescribed time. The appellant served him with show-cause notice and the domestic inquiry was conducted against him. Subsequently, the appellant terminated him from the service.

An industrial dispute had arisen and it was referred for adjudication by the Government of West Bengal/respondent. The appellant contended that the reference had no jurisdiction in the case, the appropriate government for the referral was not the Government of West Bengal, as the claimant was transferred to Bombay.

The dispute was sent before the Labour Court for adjudication, and the court held that the appropriate government was the Government of West Bengal.

Aggrieved from the order of the Labour Court the appellant approached the High Court of Calcutta. The High Court stated that the situs of the employment needs to be kept in mind as to where the dispute arose. The court held that the transfer order was made to Bombay and mere the presence of the termination order at Calcutta doesn’t provide the cause of action to the State of West Bengal for adjudication.

The situs of the employment is more important than the control of the employer over the employee for the purpose of referring to the dispute before the Industrial Tribunal.

Bata Shoe Co. Ltd. v. D.N Ganguly, 1961 AIR 1158, 1961 SCR (3) 308

A dispute arose between the Bata Company/appellant and the workers/respondent. The dispute went in course of the conciliation where the parties in disputes amicably reached a settlement. However, after the settlement, the workers went on strike. The company claimed the strike as illegal and irrelevant in light of the settlement done by the respondent. The company held the inquiry and dismissed the workers who had gone on strike.

With regard to the dispute of termination of workers, the conciliation proceeding was again preferred reaching an agreement signed by both parties of the dispute. However, in the whole process of conciliation, no conciliation officer was present.

The question in issue before the apex court was whether the settlement was done by the company and the workers were as per as provided under Section 12 and Section 18 of the Industrial Dispute Act, 1947. The apex court held the settlement at which the parties had arrived was according to the provisions of the sections provided under the Industrial Dispute Act and the settlement was binding over the parties as they can’t deny the terms at which they had arrived upon at the time of settlement.

However, the court further held that the second settlement done by the parties after the first one was non-binding as it was contrary to the provided provisions of the Industrial legislation.

Execution proceedings

M/s kasturi and sons pvt ltd. v. n. salivateswaran, 1958 air 507.

In this case , the respondent/Salivateswaran used to work with the private newspaper company appellant- The Hindu. The respondent was a journalist who used to share the news with different journals, newsagencies. He worked in the said company on an honorarium basis. Contrary to the advice and instructions of the appellant the respondent left India for Zurich and came back after a short period of time. The appellant relived him from his services, under the arrangement he was supplying news to the company. On his return to India, he requested the company to reconsider his termination decision but the company refused reconsideration. The respondent approached the Labour Minister of Bombay against the order of the company under Section 17 of the Working Journalist Act, 1955 . The State of Bombay on receiving the application of the respondent appointed M.R Mehar (Retired ICS) as the second respondent for the inquiry in the application of the First respondent’s claim.

The appellant contended on the basis of the jurisdiction issue, but respondent no-2 found that it was having the appropriate jurisdiction to inquire of the matter as under Section 17 of the Journalist Act.

Aggrieved from the order of the appointed respondent the appellant filed a petition in the Supreme Court with regard to the arising jurisdiction issue in the matter.

The apex court in this case exhaustively dealt with Section 17 of the Working Journalist Act in this case. The court said that Section 17 of the said act was similar to Section 33C of the Industrial Disputes Act. The Court further held that Section 17 of the act, provides the mechanism for the recovery of the amount which is due from the employer towards his employee. However, the same can only be done once the due amount is decided by the Labour Court.

Equal work is equivalent to equal pay

Randhir singh v. union of india, 1982 air 879.

In this case , petitioner Randhir Singh was a driver working with the Delhi Police Force. He claimed that his salary was not as per standard with the other drivers working in the Delhi Administration. It was stated that the drivers of the Delhi Administration perform a similar function as the drivers of the other department.

The apex court while dealing with the matter said that the Constitution of India doesn’t include the provisions for equal pay, and so it can’t be kept under the ambit of the fundamental right. However, Article 39(d) of the Constitution of India provides the provision for equal pay for equal work for both man and woman, and it is included under the Directive Principles of the State Policy.

The apex court interpreted Article 14 and Article 16 of the Constitution of India in the light of the Directive Principles of the State Policy as provided under Article 39(d) and construed the principle of equal pay for equal work. According to such interpretation, the apex court ordered the Delhi Police to fix the salary of the driver in accordance with the other drivers working under the Delhi Administration.

Bonded Labour

Bandhua mukti morcha v. union of india, 1984 air 802.

In this case , the petitioner- an association wrote a letter to Justice P.N Bhagwati with regard to the poor condition of the large number of reinforced workers who were working in the stone quarries in some part of Faridabad, Haryana. The association described the brutal and insufferable conditions of the labourers and stated the different provisions of the Constitution of India that was not being actualized with respect to these workers. The petitioner in the letter referred to the name of the stone quarries and the point of interest of the workers to be implored under a writ as the different social welfare legislation provides for the same.

The letter of the petitioner was treated as a writ petition and the apex court constituted a commission for the inquiry into the truth of the matter as stated by the petitioner. The commission inquired into the matter and found the statement of the petitioner to be true as bonded labour existed there, and there were severe violations of the labour laws.

The apex court on the basis of inquiry made by the commission held the petition maintainable stating that it was the duty of the state government to make rectification as it failed to ensure proper compliance of the labour laws. The apex court further added that the workmen were being held under bondage and in pathetic condition, and it not only violated the Constitutional provision of Article 21 but also the human right laws. Such act of the stone quarries companies had curtailed the fundamental rights of the petitioner as Article 21 provides that the “right to live with dignity” is a part of the fundamental rights and the onus is on the State for proper compliance of such rights if it is curtailed.

Miscellaneous

People union for democratic rights v. union of india, 1982 air 1473.

In this case , the PUDR, which is an organization formed for the purpose of protecting the democratic rights of the Citizen, appointed three scientists for the purpose of inquiry to be made in the ASIAD Projects.

Based on these investigations, the petitioner wrote a letter to Justice P.N Bhagwati which further transformed into Public Interest Litigation. In the letter, allegations of violation of various labour laws were stated and the apex court was requested to intervene in the issue. The letter was treated as a writ petition by the Supreme Court and notices were issued to the Union Government, Delhi Development Authority and the Delhi Administration.

The major allegations made in the letter were the violation of the Equal Remuneration Act, 1976 as the women workers were not paid properly and there was a misappropriation of money. There was a violation of Article 24 of the Constitution of India and the Employment of Children Act, 1938 and 1970 as the children below 14 years were deployed at the construction site by the contractors. There were also violations of the Contract Labour (Regulation and Violation) Act, 1970 which had resulted in the exploitation of the workers and denial of their various rights.

The apex court in this case found serious violations of the labour laws as the workers were not being paid adequately and there was a misappropriation of the funds. The court also found that there was a disparity in the remuneration paid to the male and female workers.

The court said that the workers were forced to work taking fewer wages against the minimum per-day wages fixed by the government. The court held that there were violations of labour laws in masse and the State was obligated to take action against such violation ensuring that the fundamental rights of the labourers are protected.

Delhi Transport Corporation v. D.T.C Mazdoor Congress, 1991 AIR 101

In this case , the respondent/D.T.C Mazdoor Congress were the regular employees working under the appellant-Company Delhi Transport Corporation. The respondents were alleging that they were being terminated by the appellant on the ground of non-satisfactory work.

They were terminated from their job paying reverence over the regulation of the transport corporation which allowed them to terminate their workers from the job by providing 1-month notice or 1-month pay in lieu of notice.

The matter reached before the apex court by the appellant. The apex court held that the regulation of the corporation of terminating their permanent employees without hearing them and just providing one-month prior notice or one-month pay in lieu of notice was contrary to the principles of natural justice, as there was no reasonable cause.

The court found the regulation of the corporation arbitrary, unreasonable and in violation of Article 14 of the Indian Constitution. The court held that the principle of audi alteram partem is a part of Article 14 and it is equally applicable over the regulations of the corporation. Hence, the termination of the employees was held unreasonable.

Marathwada Gramin Bank Karmchari Sangthan v. management of Gramin Bank, (2011) 9 SCC 620

In this case , Marathwada Gramin Bank is the respondent Bank. The provisions of the Employees Provident Fund Scheme, 1952 became applicable in the bank from 1979.

The respondent till 1981, complied with the provisions of the said scheme and after that, it formed its new scheme by establishing its new trust for the payment of provident fund to its employees. So, the employees were getting the provident fund in excess of the Employees Provident Fund Scheme, 1981. The Regional Provident fund Commissioner vide a notification dated 29.09.1981 permitted the bank with regard to its own trust and compliance with the new scheme, but later on it cancelled and the bank was directed to comply with the provided statutory rule for the purpose of paying provident fund to its employees.

The respondent Bank issued a notice under Section 9A of Industrial Disputes Act, 1947 expressing its intention to discontinue the provident fund in excess of its statutory liability, but it continued to continue towards the Employee Provident Fund.

The Central Government referred the dispute to the Central Government Industrial Tribunal, Nagpur. The Tribunal relied upon the Employees Provident Fund and Miscellaneous Provisions Act, 1952 held that the management can’t reduce the wages of the employees directly and indirectly to whom the scheme of the said act applies. The Tribunal further directed that the employees can draw an equal amount of money from the provident fund as earlier according to the scheme without any ceiling cap on their salary.

Aggrieved from the order of the tribunal the respondent bank filed a writ petition before the Ld. Single Judge Nagpur Bench of Bombay High Court. The High Court reversed the order of the Labour Court and the same was upheld by the Division Bench of the High Court.

The appellants filed an appeal before the Supreme Court. The apex court held that the action of the respondents was not contrary to the law, as they had continued to pay the Provident fund, but the contributions were made limited which was required by the statute to pay. The apex court further held that the employer can’t be compelled to pay more than the provided statutory ceiling.

The twenty aforementioned law judgements are the important ones that a human resource manager in every company needs to learn. The judgements have brought a new discourse in the jurisprudence of labour law. The precedent set by the apex court helps the judicial bodies across the country to decide the cases, if they face matters on similar issues. Since, the Industrial Disputes Act, 1947 has been stated as the law made by the parliament to protect and serve for the welfare of the employees against their employer.

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Analysis Of Contract Workers In Labour Law

Growth of contract workers, definition of contract workers, objective of contract workers.

To avoid contract labour being abused
To offer suitable and liveable working circumstances
To control how the advisory boards operate
To develop the guidelines and standards governing the registration process for businesses using contract labour
To outline the prerequisites and licensing process for contracts
To set forth the punishment guidelines for offences against the Act
Providing wages Each employee hired under contract labour must receive the required wages from the contractor before the allotted time period has passed. The major employer will be responsible for making the entire payment of wages due or the outstanding amount due if the contractor fails to make the payment within the specified time frame. The Commissioner of Labour will set the salaries.
Health and Safety of Contract Workers According to Chapter 5 of the Act, it is the responsibility of the major employer to make sure that the contractor meets the requirements set forth by the relevant government in providing the following facilities. One or more canteens must be provided and kept up by the contractor for the benefit of any contract labourers that the contractor employs in quantities greater than one hundred. The contractor is responsible for providing and maintaining restrooms or other appropriate facilities that are adequately lit, ventilated, clean and comfortable for contract labourers working in establishments that require them to stop at night. Contractual factory workers are entitled to two things in accordance with the employer's obligations: (I) information about health and safety at work; and (ii) training on health and safety at work. Other amenities like drinking water, men's, and women's separate restrooms, washing facilities, first aid, etc.., are the responsibility of the contractor.
Working Hours and Contractual Employee's Rights Contractual workers may only be required to work 48 hours per week and 9 hours per day. He or She is entitled to overtime pay that is double the regulated rate. The workers must be informed of the length of the workday. A contractual employee is entitled to annual leave with pay after working for 240 days or more, with one day off for every 20 days worked.
Social Security Social Security under the Employees' State Insurance Act of 1948, contract employees are eligible for social security benefits if they earn up to Rs.15, 000 in monthly salary. In order to cover the employees, the employer must register with the Employee State Insurance (ESI) Corporation. Employers contribute 4.75% of the earnings owed to employees under the ESI plan and employees chip in 1.75% of their income. Employees who receive a daily wage of less than Rs. 137/- are free from making their portion of the contribution. The programme offers medical benefits, sickness benefits, maternity benefits, disability benefits, and dependent benefits to employees. Contractual Workers in the unorganised sector are eligible for benefits under the Unorganised Workers' Social Security Act of 2008, including the Janani Suraksha Yojana and Indira Gandhi National Old Age Pension. Yet, as registration under the Act is optional, it has not been fully put into effect.
Retirement Advantages Contractual employees have the right to be provided fund benefits following retirement under the Worker's Provident Funds and Miscellaneous Provisions Act, 1952. If they worked for a single employer for five years, they have the right to gratuities under the Payment of Gratuity Act, of 1972.
Additional Advantages If a worker has an injury while performing their job but is not covered by the ESI plan, they may be entitled to compensation under the Workmen's Compensation Act of 1923. Corresponding to this, under the Maternity Benefits Act of 1961, a female contractual worker who is not covered by ESI may request maternity leave (26 weeks for the birth of the first two children) with pay (provided she worked in an establishment for less than 80 days in a year prior to the date of her expected delivery).
https:// blog.ipleaders.in/contract-labour-regulation-abolition-1970/
https://medium.com/nyaaya/contract-labour-in-india-understanding-the-legal-framework/
https://www.researchgate.net/publication/issues-and-problem-of-contract-labourers-in-India.
K.D. Srivastava's commentaries on Contract Labour (Regulation and Abolition) Act,1970.
Labour and Industrial Law Author by P.L. MALIK
https://bcpassociates.com/insights-applicability-of-contract-labour-regulation-abolition-act-1970.

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A Case on Contract Labour: M/s. ABC Chemicals Limited*

Case Preview

A case on contract labour: m/s. abc chemicals limited.

M/s ABC Chemicals Limited located at Thane – Belapur Road, Maharashtra is engaged in manufacturing of various chemicals since 1991. The total manpower of the Company is 450. The employee canteen at M/s ABC Chemical Ltd was contracted to Mr. Ram Shetty. The canteen contract was registered by the company under The Contract Labour (Regulation & Abolition) 1970. An agreement was also signed by Rama Shetty as a canteen contractor and a Mr. Kulkarni, factory manager on behalf of company.

The said contract was renewed every year and rates of the contract also were renewed every year with the consent of both the parties. In the canteen Mr. Shetty had employed about 10 workers and they were provided with uniforms, attractive wages and accommodation.

Mr. Shetty had another canteen contract in a neighbouring company where he had employed about 15 canteen boys. In both the companies, the canteen worked smoothly. After every three months, Mr. Shetty would rotate these canteen boys on rotation between the two companies, so that there would be no continuity of job in either of the companies for the canteen boys. This practice continued for a long time........................

In the month of October 1995, Mr Mohite on his regular round in the company, observed that outside the canteen Mr Ramesh Bhoir along with canteen boys was discussing something when they all saw Mr Mohite coming towards the canteen they immediately disbursed from canteen area except for Mr Ramesh Bhoir who remained outside the canteen. Mr Mohite ignored him and went back to his office. Mr Ramesh followed him and went to the office of Mr Mohite...........

Industrial Relations Issues

Mohite, along with the Works Manager and other departmental heads jointly decided on terminating the contract of the Canteen with immediate effect and intimated Mr. Shetty, the contractor to remove his men and material and clear whatever compensation was due to him from the management. Mr Mohite appreciated Mr Ramesh Bhoir and union committee members for the work done by Mr. Ramesh........

Union Pressure on Management

The matter did not end here. Keeping a day’s gap, the canteen workers approached Mr. Ashok Mahatre, VP of “Maharashtra Shramik Sena” based at Turbhe village. The canteen workers enlisted themselves as members of that union and approached the Labour Commissioner Office, Thane along with Mr. Mahatre..........

Case to Labour Commission

Because of pressure from local leaders Mr. Mahatre, The Labour Commissioner Office accepted their letter of complaint and orally told them that action will be taken against company within few days, and till that time, the removed workers and union should maintained discipline. Thereafter, next day, Mr Mahatre along with canteen workers and other local people approached the company’s gate along with the copy of the letter which was submitted in the Labour Commissioner’s Office..........

Endless Conciliation

Mr. Mahatre and others at the same time started giving slogans against the company and further they used abusive language against the management. Every day in the morning, they used to gather at the gate and hurled slogans against the management of M/s. ABC Company Ltd. They continued for further 8 days with this activity.........

Teaching Note Preview

This Case is about M/s ABC Chemicals Limited, which is located at Thane – Belapur Road, Maharashtra. The Company is engaged in manufacturing of various chemicals since 1991. The total manpower of the Company is 450. It had provided canteen for the employees and it was running on contract basis. Mr Rama Shetty was a canteen contractor. The canteen contract was registered by the company under The Contract Labour (Regulation & Abolition) 1970. An agreement was also signed by Rama Shetty as a canteen contractor and on behalf of company a factory manager, Mr. Kulkarni.

The case focuses on the issues related to making contract labours ‘permanent’ in the Canteen of ABC Chemicals Limited. The Canteen employees who were on contract, with the pressure of internal union, demanded the Management to make them permanent employee of the Company. Retaliating, management issued a letter of termination of canteen contract which was delivered to the Canteen Contractor immediately. The issue was raised to the Labour Commissioner’s Office by the canteen employees. The Canteen Employees started giving slogans against the company. Further they used abusive language against the management. They were doing the same activity every day..............

Pedagogical Objectives

The case aims at preparing budding HR Managers to avoid such situations beforehand by clear understanding of the root cause of such crisis. Even then, if the crisis occurs, the case prepares them on how to face such real life situations by sensitizing them towards the sensitive handling of Labours and their problems keeping in mind the interest of management and jurisdiction.

Assignment Questions

I. Why management took the decision of terminating the canteen contract?
II. What role was played by union leader in this issue?
III. What is the IR issue involved in this case?
IV. ........................

This Case Study's objective is to shed light on issues related to making contract labours 'permanent' in organizations. The Government of India enacted the Contract Labour (Regulation & Abolition) Act 1970 in order to regulate establishments wherein contract labour has been employed by the contractors. The Act regulates that the contractors or principal employer has to provide and maintain the health, safety and welfare of contract labours. A Central and State Advisory Board has also been formed in order to implement the provisions of the Act. Through the experience of the canteen of ABC Chemicals Limited, post the enactment of the Act, the Case tries to elucidate the roles and jurisdictions of the Union, the management and the Canteen Contractor and how unorganized Unionism can lead to fruitless wastage of time and productivity.

To understand what pitfalls may happen in a Labour Contract and how to envisage issues before they go out of control
To be able to manage crisis in real life by sensitizing participants towards the sensitive handling of Labours and their problems keeping in mind the interest of management and jurisdiction
MBA in HR with specialization in IR- This case provides the unique situation, in which the roles, responsibilities and actions of all the arms of the tripod, formed by Principal Employer-ABC Chemicals, Canteen Contractor and Contractual Labours working in canteen, are at cross-roads.

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Case Study Preview	M/s ABC Chemicals Limited located at Thane – Belapur Road, Maharashtra is engaged in manufacturing of various chemicals since 1991. The total manpower of the Company is 450. The employee canteen at M/s ABC Chemical Ltd was contracted to Mr. Ram Shetty. The canteen contract was registered by the company under The Contract Labour (Regulation & Abolition) 1970. An agreement was also signed by Rama Shetty as a canteen contractor and a Mr. Kulkarni, factory manager on behalf of company. The said contract was renewed every year and rates of the contract also were renewed every year with the consent of both the parties. In the canteen Mr. Shetty had employed about 10 workers and they were provided with uniforms, attractive wages and accommodation. Mr. Shetty had another canteen contract in a neighbouring company where he had employed about 15 canteen boys. In both the companies, the canteen worked smoothly. After every three months, Mr. Shetty would rotate these canteen boys on rotation between the two companies, so that there would be no continuity of job in either of the companies for the canteen boys. This practice continued for a long time........................ In the month of October 1995, Mr Mohite on his regular round in the company, observed that outside the canteen Mr Ramesh Bhoir along with canteen boys was discussing something when they all saw Mr Mohite coming towards the canteen they immediately disbursed from canteen area except for Mr Ramesh Bhoir who remained outside the canteen. Mr Mohite ignored him and went back to his office. Mr Ramesh followed him and went to the office of Mr Mohite........... Mohite, along with the Works Manager and other departmental heads jointly decided on terminating the contract of the Canteen with immediate effect and intimated Mr. Shetty, the contractor to remove his men and material and clear whatever compensation was due to him from the management. Mr Mohite appreciated Mr Ramesh Bhoir and union committee members for the work done by Mr. Ramesh........ The matter did not end here. Keeping a day’s gap, the canteen workers approached Mr. Ashok Mahatre, VP of “Maharashtra Shramik Sena” based at Turbhe village. The canteen workers enlisted themselves as members of that union and approached the Labour Commissioner Office, Thane along with Mr. Mahatre.......... Because of pressure from local leaders Mr. Mahatre, The Labour Commissioner Office accepted their letter of complaint and orally told them that action will be taken against company within few days, and till that time, the removed workers and union should maintained discipline. Thereafter, next day, Mr Mahatre along with canteen workers and other local people approached the company’s gate along with the copy of the letter which was submitted in the Labour Commissioner’s Office.......... Mr. Mahatre and others at the same time started giving slogans against the company and further they used abusive language against the management. Every day in the morning, they used to gather at the gate and hurled slogans against the management of M/s. ABC Company Ltd. They continued for further 8 days with this activity.........

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Case Study on Sec 10 of The Contract Labour Act, 1970

Steel Authority vs union of India

The Hon’ble Supreme Court, on 5th July 2019, in the matter of The Director Steel Authority Of India Ltd. V. Ispat Khandan Janta Mazdoor Union, observed that neither Section 10 nor any provision in the Contract Labour(Regulation & Abolition) Act, 1970 provides for automatic absorption of contract labour on the issuance of prohibition notification by the appropriate Government under Section 10(1).

The Hon’ble Supreme Court observed that:

If the contract is found to be genuine and a prohibition notification has been issued under Section 10(1) of the Contract Labour(Regulation & Abolition) Act, 1970, in respect of the establishment, the principal employer intending to employ regular workmen for the process, operation or other work of the establishment in regard to which the prohibition notification has been issued, it shall give preference to the erstwhile contract labour if otherwise found suitable, if necessary by giving relaxation of age as it appears to be in fulfilment of the mandate of Section 25(H) of the Industrial Disputes Act, 1947.
Mere issuance of the prohibition notification under Contract Labour(Regulation & Abolition) Act, 1970 will not make the contract/agreement to be void ab initio or bad in law and if the employees are allowed to continue in terms of the earlier agreement after the prohibition notification under Contract Labour(Regulation & Abolition) Act, 1970 has come into force, it may be illegal and continuance of service in the absence of any contract which stands extinguished by virtue of prohibition notification has to face the penal consequences as embedded under the scheme of Contract Labour(Regulation & Abolition) Act, 1970.
Neither Section 10 nor any provision in the Contract Labour(Regulation & Abolition) Act, 1970 provides for automatic absorption of contract labour on issuance of prohibition notification by the appropriate Government under Section 10(1) of the Contract Labour(Regulation & Abolition) Act, 1970

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10 Important Cases of Labour Law

This article presents a comprehensive overview of ten landmark cases that have significantly influenced the evolution of labour laws in india..

The article '10 Important Cases of Labour Law' presents a comprehensive overview of ten landmark cases that have significantly influenced the evolution of labour laws in India.

Labour law covers employment contracts, wages, health and safety, fair treatment of employees, dispute resolution mechanisms and so on and so forth. It provides regulations that govern the relationship between an employee and the employer in a workplace. Labour laws play an important role in the protection of the rights of employees. The cases discussed below aim to cover various aspects of labour laws.

1. Workmen of M/S Firestone Tyre and Rubber Co. of India v. Management [1]

In the instant case, the workers of the Firestone Tyre & Rubber Company were terminated from their employment by the employer as a result of the Domestic Inquiry Finding. Meanwhile, during the pendency of the suit, the amendment to the Industrial Tribunal Act in 1971, brought in Section 11 A which conferred Industrial Tribunal with the Appellate Authority power over domestic inquiries into emerging disputes. The Tribunal gave a decision in favour of the employer and therefore dissatisfied with the decision; the aggrieved workers appealed to the Apex court against the order passed by the tribunal. The Supreme Court considered on the understanding of Section 11A of the Industrial Disputes Act, 1947 and acknowledged the Industrial Disputes Act, 1947 as a beneficial legislative measure drafted for the welfare of employees.

However, the court ruled that since the lawsuit was started before the amendment, the said section would not be applicable in this case. It would only be relevant to cases started after the amendment to the Industrial Dispute Act, 1947.

2. Bandhua Mukti Morcha v. Union of India [2]

A PIL was filed by an organization named Bandhua Mukti Morcha who were actively fighting against the abhorrent practice of bonded labour. The organisation outlined a survey report, conducted in stone quarries in the Faridabad district which revealed numerous workers facing inhuman & intolerable conditions, with a drive of forced labour.

In response to the highlighted facts, the Court recognized guidelines for identifying bonded labourers and directed that state governments must locate, release, and rehabilitate the bonded labourers. The court also declared that a person being a bonded labourer is deprived of liberty, and is a slave with no freedom in choosing employment.

The court also ruled that if it is established that a worker is engaged in forced labour, the presumption is that economic deliberations are involved, and therefore, the worker is a bonded labourer. This presumption can only be refuted by the employer & the state government if they deliver satisfactory evidence.

3. Steel Authority of India Limited v. National Union Waterfront Workers [3]

The Government of West Bengal originally forbade contract labour at specified stockyards in Calcutta by virtue of the Contract Labour (Regulation and Abolition) Act, 1989. The prohibition was temporarily put off through a notification dated August 28, 1989, but it was extended until August 31, 1994. The contracted labourers of a central government enterprise which were primarily involved in manufacturing iron and steel products and engaged in import-export had its branches across India, petitioned the Calcutta High Court to direct the appellants, SAIL, to fascinate them into their consistent establishment due to the West Bengal government's prohibition. The Calcutta High Court, considering the State Government as the appropriate authority dismissed the writ petition. In response to this, the appellants appealed to the Supreme Court, putting in question, the interpretation of "appropriate government" enshrined in Section 2(1)(a) of the Contract Labour (Regulation and Abolition) Act, 1970.

The apex court lined that any company working under the authority of the Central Government undertakings, which fails to function due to a lack of conferred power, is considered an industry under the Central Government. Subsequently, the court determined that as per the Contract Labour (Regulation and Abolition) Act, 1970, the appropriate government was the Central Government.

4. People’s Union for Democratic Rights v. Union of India [4]

The PUDR is an organization formed to protect the democratic rights of the Citizens. In the instant case, PUDR appointed three scientists for the inquiry to be conducted in the ASIAD Projects. Based on the investigation report the petitioner addressed a letter to Justice P.N Bhagwati which served as a Public Interest Litigation. The letter highlighted violations of various labour laws and the apex court was requested to look into the issue. The letter was considered as a writ petition by the Supreme Court. Notices were issued to the Union Government, the Delhi Development Authority & the Delhi Administration.

The major allegations highlighted-

The violation of the Equal Remuneration Act, 1976( women workers were not paid properly; misappropriation of money).

The violation of Article 24 of the Constitution of India, the Employment of Children Act, 1938 & 1970 as the children below 14 years were engaged at the construction site by the contractors.

The violations of the Contract Labour (Regulation and Violation) Act of 1970, resulted in the maltreatment of the workers and denial of their various rights.

The apex court in this case found that the stated violations did happen and at a gross means. The court held that there were abuse of labour laws in mass and the State was obliged to take action against such violation ensuring that the fundamental rights of the labourers are safeguarded.

5. Syndicate Bank and Ors v. K. Umesh Nayak [5]

The major issue in the instant case before the Apex Court was whether the workmen were entitled to get paid during the period of strike despite the strike’s nature, legal or illegal.

The Apex Court held that unless a strike contradicts the provisions of the Industrial Disputes Act, 1947, it would be considered legal. Close scrutiny is essential to be applied to the particular factual condition of each claim.

In the instant case, the strike was a result of longstanding disputes between employees and employers. It is the last resort available to the employees for their demands to be fulfilled by the industry. The Industrial Legislation provides for worker’s right to protest and the right of the employer to lockout & provide machinery for peaceful inquiry & clearance of disputes between them. Therefore, the Court ordered that the employees be paid for the strike period.

6. Municipal Corporation of Greater Bombay v. Labour Appellate Tribunal of India [6]

Retrenchment was questioned in this case. The term retrenchment amounts to the termination done by the employer of the employee for reasons other than giving punishment through disciplinary action. It is generally done to relieve them from a job in good faith. In this particular case, the employer sent a show cause notice to the employee after leading an inquiry into misconduct. As a result, the employee was terminated being found guilty and unfit for continued employment with the company. The terminated employee filed a petition seeking restoration and compensation on grounds of termination. The Labour Court ruled in favour of the employee. This decision was challenged by the appellant in Bombay High Court. The High Court decided that this case did not involve retrenchment because the employee’s termination was based on misconduct.

7. M.C. Mehta v. State of Tamil Nadu [7]

In the instant case, Shri MC Mehta invoked Article 32, for violation of fundamental rights of children guaranteed under Article 24. The Court found Sivakasi was the main offender who was employing many child labourers, engaging them in the manufacturing process of matches and fireworks which is qualified as a hazardous industry and held employing children under the age of 14 years in this industry is prohibited.

The Court restated that children below the age of fourteen must not be engaged in any hazardous industry and must ensure all children get free education till the age of 14 years. The Court further also looked at Article 39 (e) which states that the children’s tender age should not be exploited but instead, the opportunities for their healthy growth and development. Therefore, the Court directed the employer Sivakasi must pay a compensation of Rs. 20,000 for violation of the Child Labour (Prohibition and Regulation) Act, 1986.

8. Hindustan Aeronautics Limited v. Workmen [8]

The appellant Hindustan Aeronautics Limited is a company registered under Section 617 of the Companies Act, 1956, belonging to the Central Government. The case is about 1000 workers, working in the company’s repairing unit at Barrackpore, West Bengal were facing issues w.r.t the allowance of the employee’s education, revision of lunch allowances and job permanency. The dispute was then taken by the West Bengal Government under Section 10 (1) to the Industrial Tribunal. The Industrial Tribunal partly awarded some relief to the workers. As a result, the Appellants took their case to the Apex Court and questioned whether the West Bengal government was an appropriate government or not, to resolve the dispute.

The Supreme Court held that the West Bengal government is the appropriate government keeping in mind the company’s subsidiary in West Bengal carried on different business.

Therefore, when there arises a situation of conflict or breakdown, the government of West Bengal has the authority to settle any dispute and keep industrial peace.

9. Bata Shoe Co. Ltd. v. D.N Ganguly [9]

The case is related to a dispute that emerged between Bata Company and the workers. The parties opted for the process of Conciliation to reach a settlement. But the workers initiated a strike post-settlement for which the company declared the strike illegal, stating its contradiction to the earlier settlement. Accordingly, the company conducted an inquiry and terminated the striking workers. In executing the termination dispute, another conciliation proceeding arose, resulting in a signed agreement between both parties. Remarkably, no conciliation officer was present throughout this process.

The main issue before the apex court was whether a settlement executed between the company and the workers could exist in accordance with Section 12 and Section 18 of the Industrial Disputes Act, 1947. The apex court held that the first settlement was binding since it was in accordance with the specified sections however the subsequent settlement remains non-binding since it was contrary to the specified provisions of the Industrial legislation.

10. Bangalore Water Supply v. A. Rajappa & Others [10]

A. Rajappa was an employee of the Bangalore Water Supply and Sewerage Board. A labour dispute was persisting between the employee and the board. A. Rajappa along with several other workmen were fined by the Board for misconduct. A hefty amount was recovered from them which was not reasonable. Therefore A. Rajappa along with other workmen approached the Labour Court. The issue was whether Bangalore Water Supply and Sewerage Board fell within the definition of industry under Section 2(j) of the Industrial Dispute Act, 1947. The Supreme Court of India dismissed the Bangalore Water Supply and Sewerage Board's appeal and held it within the industry definition under the Industrial Dispute Act, 1947.

[1] 1973 SCR (3) 587

[2] AIR 1984 SC 802

[3] Appeal (Civil) 6009-6010 of 2001

[4] 1982 AIR 1473

[5] 1994 SCC (5) 572

[6] AIR 1957 Bom 188

[7] AIR 1997 SC 699

[8] 1975 AIR 1737

[9] 1961 AIR 1158

[10] AIR 1978 SC 548

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What happened to the doctor in Kolkata?

A 31-year-old trainee doctor’s dead body, bearing multiple injuries, was found on August 9 in a government teaching hospital in Kolkata.

The parents of the victim were initially told “by hospital authorities that their daughter had committed suicide,” lawyer and women’s rights activist Vrinda Grover told Al Jazeera. But an autopsy confirmed that the victim was raped and killed.

Grover has appeared for victims in sexual violence cases in India in the past, including Bilkis Bano , a Muslim woman who was gang-raped during the 2002 Gujarat riots, and Soni Sori, a tribal activist based in Chhattisgarh state.

Thousands of doctors marched in Kolkata on Monday, demanding better security measures and justice for the victim.

On Tuesday, the Kolkata High Court transferred the case to the Central Bureau of Investigation (CBI).

The Federation of Resident Doctors Association (FORDA) called for a nationwide halting of elective services in hospitals starting on Monday. Elective services are medical treatments that can be deferred or are not deemed medically necessary.

Doctors hold posters to protest the rape and murder of a young medic from Kolkata, at the Government General Hospital in Vijayawada on August 14

On Tuesday, FORDA announced on its X account that it is calling off the strike after Health Minister Jagat Prakash Nadda accepted protest demands.

One of these demands was solidifying the Central Protection Act, intended to be a central law to protect medical professionals from violence, which was proposed in the parliament’s lower house in 2022, but has not yet been enacted.

FORDA said that the ministry would begin working on the Act within 15 days of the news release, and that a written statement from the ministry was expected to be released soon.

Press release regarding call off of strike. In our fight for the sad incident at R G Kar, the demands raised by us have been met in full by the @OfficeofJPNadda , with concrete steps in place, and not just verbal assurances. Central Healthcare Protection Act ratification… pic.twitter.com/OXdSZgM1Jc — FORDA INDIA (@FordaIndia) August 13, 2024

Why are some Indian doctors continuing to protest?

However, other doctors’ federations and hospitals have said they will not back down on the strike until a concrete solution is found, including a central law to curb attacks on doctors.

Those continuing to strike included the Federation of All India Medical Associations (FAIMA), Delhi-based All India Institute Of Medical Sciences (AIIMS) and Indira Gandhi Hospital, local media reported.

Ragunandan Dixit, the general secretary of the AIIMS Resident Doctors’ Association, said that the indefinite strike will continue until their demands are met, including a written guarantee of the implementation of the Central Protection Act.

Medical professionals in India want a central law that makes violence against doctors a non-bailable, punishable offence, in hopes that it deters such violent crimes against doctors in the future.

Those continuing to protest also call for the dismissal of the principal of the college, who was transferred. “We’re demanding his termination, not just transfer,” Dr Abdul Waqim Khan, a protesting doctor told ANI news agency. “We’re also demanding a death penalty for the criminal,” he added.

“Calling off the strike now would mean that female resident doctors might never receive justice,” Dr Dhruv Chauhan, member of the National Council of the Indian Medical Association’s Junior Doctors’ Network told local news agency Press Trust of India (PTI).

Which states in India saw doctors’ protests?

While the protests started in West Bengal’s Kolkata on Monday, they spread across the country on Tuesday.

The capital New Delhi, union territory Chandigarh, Uttar Pradesh capital Lucknow and city Prayagraj, Bihar capital Patna and southern state Goa also saw doctors’ protests.

Interactive_India_doctor_rape_protests_August14_2024

Who is the suspect in the Kolkata rape case?

Local media reported that the police arrested suspect Sanjoy Roy, a civic volunteer who would visit the hospital often. He has unrestricted access to the ward and the police found compelling evidence against him.

The parents of the victim told the court that they suspect that it was a case of gang rape, local media reported.

Why is sexual violence on the rise in India?

Sexual violence is rampant in India, where 90 rapes were reported on average every day in 2022.

Laws against sexual violence were made stricter following a rape case in 2012, when a 22-year-old physiotherapy intern was brutally gang-raped and murdered on a bus in Delhi. Four men were hanged for the gang rape, which had triggered a nationwide protests.

But despite new laws in place, “the graph of sexual violence in India continues to spiral unabated,” said Grover.

She added that in her experience at most workplaces, scant attention is paid to diligent and rigorous enforcement of the laws.

“It is regrettable that government and institutions respond only after the woman has already suffered sexual assault and often succumbed to death in the incident,” she added, saying preventive measures are not taken.

In many rape cases in India, perpetrators have not been held accountable. In 2002, Bano was raped by 11 men, who were sentenced to life imprisonment. In 2022, the government of Prime Minister Narendra Modi authorised the release of the men, who were greeted with applause and garlands upon their release.

However, their remission was overruled and the Supreme Court sent the rapists back to jail after public outcry.

Grover believes that the death penalty will not deter rapists until India addresses the deeply entrenched problem of sexual violence. “For any change, India as a society will have to confront and challenge, patriarchy, discrimination and inequality that is embedded in our homes, families, cultural practices, social norms and religious traditions”.

What makes this case particularly prominent is that it happened in Kolkata, Sandip Roy, a freelance contributor to NPR, told Al Jazeera. “Kolkata actually prided itself for a long time on being really low in the case of violence against women and being relatively safe for women.”

A National Crime Records Bureau (NCRB) report said that Kolkata had the lowest number of rape cases in 2021 among 19 metropolitan cities, with 11 cases in the whole year. In comparison, New Delhi was reported to have recorded 1, 226 cases that year.

Prime Minister Modi’s governing Bharatiya Janata Party (BJP) has called for dismissing the government in West Bengal, where Kolkata is located, led by Mamata Banerjee of All India Trinamool Congress (AITC). Banerjee’s party is part of the opposition alliance.

Rahul Gandhi, the leader of the opposition in parliament, also called for justice for the victim.

“The attempt to save the accused instead of providing justice to the victim raises serious questions on the hospital and the local administration,” he posted on X on Wednesday.

Roy spoke about the politicisation of the case since an opposition party governs West Bengal. “The local government’s opposition will try to make this an issue of women’s safety in the state,” he said.

Have doctors in India protested before?

Roy explained to Al Jazeera that this case is an overlap of two kinds of violence, the violence against a woman, as well as violence against “an overworked medical professional”.

Doctors in India do not have sufficient workplace security, and attacks on doctors have started protests in India before.

In 2019, two junior doctors were physically assaulted in Kolkata’s Nil Ratan Sircar Medical College and Hospital (NRSMCH) by a mob of people after a 75-year-old patient passed away in the hospital.

Those attacks set off doctors’ protests in Kolkata, and senior doctors in West Bengal offered to resign from their positions to express solidarity with the junior doctors who were attacked.

More than 75 percent of Indian doctors have faced some form of violence, according to a survey by the Indian Medical Association in 2015.

What happens next?

The case will now be handled by the CBI, which sent a team to the hospital premises to inspect the crime scene on Wednesday morning, local media reported.

According to Indian law, the investigation into a case of rape or gang rape is to be completed within two months from the date of lodging of the First Information Report (police complaint), according to Grover, the lawyer.

The highest court in West Bengal, which transferred the case from the local police to the CBI on Tuesday, has directed the central investigating agency to file periodic status reports regarding the progress of the investigation.

The FIR was filed on August 9, which means the investigation is expected to be completed by October 9.

Bengal women will create history with a night long protest in various major locations in the state for at 11.55pm on 14th of August’24,the night that’ll mark our 78th year as an independent country. The campaign, 'Women, Reclaim the Night: The Night is Ours', is aimed at seeking… pic.twitter.com/Si9fd6YGNb — purpleready (@epicnephrin_e) August 13, 2024

Helping to Eliminate Child Labour From Global Supply Chains

December 01, 2022

Mica is a critical raw material for electronics, transportation and cosmetics, yet the mica supply chain often starts with artisanal mines. This unregulated mining carries significant risks for workers – unsafe working conditions, labour exploitation, illegal child labour and trafficking.

The Responsible Mica Initiative (RMI) is a global coalition for action comprising multiple organisations committed to establishing a fair, responsible and sustainable mica supply chain in the states of Jharkhand and Bihar in India. It aims to eliminate unacceptable working conditions and eradicate child labour by 2030.

Issues concerning the mica industry are complex and multidimensional with historical, social and economic causes which cover illegal mining, child labour in the supply chain, non-recognition and inadequate protection of mica pickers, lack of livelihood and economic development opportunities and poor education outcomes. The development of a sustainable mica policy framework and reviving the mica economy in Giridih and Koderma, in the Indian State of Jharkhand, required taking into consideration multiple stakeholdersʼ perspectives – and active engagement with industry, government, local communities and civil society, as well as end-users, to direct attention and resources to resolve these issues. FTI Consulting was appointed by RMI in 2019 to conduct a review of mica-related supply chain legislations in the states of Jharkhand and Bihar in India. This was followed by the development of an advocacy strategy to engage with the state governments, to advocate for the adoption of a sustainable mica mining policy to help eliminate child labour from the mica supply chains.

FTI Consulting partnered with a local law firm to review mica-related laws in four states and evolve a relevant policy advocacy strategy. This was followed by the development of policy advocacy messages and a multistakeholder engagement plan that would lead to the first sustainable mica policy response, voluntarily developed by the industry and civil society. The team drafted the ʻRanchi Principles for Sustainable Mica Miningʼ and the worldʼs first Sustainable Mica Mining Policy framework and presented it at a multi-stakeholder workshop to grassroots civil society actors, local elected representatives, local industry players, human rights activists and associations. Our role was then to lead the engagement with the Office of the Chief Minister and the Chief Secretary, the senior most political and administrative decision makers in the state of Jharkhand, along with the State Mines and Labour Departments. FTI Consulting drafted and submitted the Sustainable Mica Mining Policy framework, which covered policy design and administration of a public-private sustainable mica taskforce, funding models and review mechanisms. The framework is a public document and is available here.

Since 2020, recommendations from the Sustainable Mica Mining Policy framework have been incorporated into the government response on addressing the issue of child labour in the mica supply chain in the Indian state of Jharkhand.
RMI and FTI Consulting shared the Sustainable Mica Mining policy framework at a multi-stakeholder event in Brussels, with representatives from the ILO, and the policy intervention work was presented at the European Commission in November 2020.
The policy advocacy effort in Jharkhand by the RMI has been reviewed by global multilateral agencies, civil society and industries. A UNDP-RMI joint consortium was awarded a grant of USD 4.5 million by the United States Depart of Labour to replicate a similar framework in Madagascar, another global mica sourcing hub facing similar concerns.

Key Contacts

Amrit Singh Deo

Senior Managing Director

Pragya Gupta

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University Statements

Update on cornell-uaw negotiations.

Dear Ithaca campus community,

As you may know, the university and the United Automobile Workers (UAW) have been working on a new collective bargaining agreement since April 2024. The UAW represents about 1,300 of our employees across campus, including in Dining, Building Care, Facilities, CALS, CVM and the Statler Hotel. The university and the UAW have had a productive labor-management relationship for more than 40 years, and we are committed to the continued success of this relationship and to reaching our next agreement.

Despite the best efforts of the university, the parties have not yet reached a new agreement. The parties have been successful on a number of key issues concerning the bargaining unit, such as health and personal leave (“HAP”), vacation consistent with university policy, and health and safety. We have proposed to the UAW that we use the federal mediator assigned to the negotiations or a mediator of the UAW’s choice to assist the parties in reaching a complete agreement. The UAW has rejected this suggestion.

The University’s latest offer to the UAW includes the following:

6% wage increase in the first year, with additional increases in each of the additional proposed years.
Changes to wage rates based on years of service which, with the 6% increase, result in wage increases of at least 10% for more than half of the unit.
A reduction of the time for new employees to reach the job rate for their positions, from three years to one year.
An increased wage for our most senior employees, recognizing them at 10 years and 25 years of service.
Bonuses recognizing the longevity of employees at 5 and 15 years of service.
Increases to clothing and shoe allowances across the unit, including provision of these allowances to additional groups of employees.
Increased pay rates for employees providing peer-to-peer on the job training.
Increased eligibility for shift differential.
Support for tipped employees with retirement savings.

We are committed to continuing to bargain with the UAW to reach a new agreement.

The university is aware that the UAW has voted to authorize a strike and has scheduled a rally for today at Bailey Hall. If a strike is called, employees represented by the UAW may decide to join the strike or they may elect to report to work. We respect employees’ right to make this decision.

If the UAW calls a strike, the university has contingency plans in place to maintain essential services. Any shifts in operations, such as reduced dining hours or offerings, will be communicated on a rolling basis as these impacts may vary day to day. Employees with questions should consult with their supervisors for additional guidance on contingency plans.

The university continues to bargain in good faith. We remain hopeful we will find common ground on the remaining open issues and reach a tentative agreement acceptable to the employees represented by the UAW.

Christine Lovely Vice President and Chief Human Resources Officer

Shiny objects: Insurance productivity in an era of AI and automation

The emergence of AI and generative AI (gen AI) has brought new energy to the age-old conversation about productivity. In this episode of the McKinsey on Insurance podcast, McKinsey senior partner Jörg Mußhoff sits down with partners Elena Pizzocaro and Selim Sulos to discuss why revisiting insurance productivity is at the top of CEOs’ agendas, how the most successful transformations use an end-to-end redesign approach, and why CEOs shouldn’t get distracted by the novelty of AI when traditional tools could encourage growth. The following transcript has been edited for clarity.

Jörg Mußhoff: Many companies across industries are looking into not only how to unleash the power of AI and automation but also how to enhance new forms of productivity. Selim, why is revisiting insurance productivity important?

Selim Sulos: Productivity is not new to insurance. Most companies have explored productivity at different points over the past ten years, but after the height of COVID-19, the insurance world was introduced to a new paradigm, with inflation increasing the cost of claims and rising interest rates stagnating growth, which doubly impacted some insurance carriers. [To make up for these interferences], productivity has become the number one or number two topic on a CEO’s desk.

Elena Pizzocaro: Technology offers plenty of opportunities [to improve productivity]. Think about automation and AI, which are constantly reaching new frontiers. The expectation is that nearly 50 percent of manual activities could potentially disappear thanks to gen AI alone. 1 “ The economic potential of generative AI: The next productivity frontier ,” McKinsey, June 13, 2023. That creates the perfect storm of need and opportunity.

Selim Sulos: There’s one more thing that I should add: top-level tech natives are also contributing to [the importance of productivity]. Everyone, especially those in North America, reads about what’s happening in the big tech companies of the world. Productivity in the tech paradigm is super relevant. I often hear questions like, “What can we learn from big companies that have large tech talent?” That’s another consideration that is impacting CEOs’ agendas.

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Jörg Mußhoff: Can both of you give us a peek into the machine? How are insurance companies across the globe addressing the topic of driving productivity? What do you consider to be the best approaches?

Elena Pizzocaro: The most successful transformations adopt an approach that moves productivity forward while taking advantage of the best technology. Companies are rethinking these end-to-end journeys using what we call “the unconstrained reimagination of core processes.” At the same time, they combine this approach with the most classical techniques, such as performance management, that are the backbone of sustaining impact over time. They create a view of future journeys while setting the trajectory for the unit costs necessary to achieve it and—in the best circumstances—are disciplined in monitoring the progress toward this curve.

Selim Sulos: There is a fine balance between the new productivity paradigm related to the end-to-end path versus the traditional approaches to performance management. Case in point: some midsize insurance carriers that have capital constraints, especially in this environment, need to use some of these traditional methods to capture the necessary resources for investing in the end-to-end journey. Otherwise, it can be costly, depending on how they tackle it in the early investment stage. Therefore, it is critical to keep new and traditional approaches top of mind and sequence them based on where you are in your journey.

Jörg Mußhoff: Many insurance carriers ask about how these approaches are different now than in the past. What would you emphasize there?

Selim Sulos: Redesigning some of the end-to-end components is just the beginning. You also have to think about the entire technology pipeline that serves those components and potentially your data pipeline. If you do that right, you won’t need the amount of reporting or data cleaning that you do today, and people will be working much more effectively. At the same time, your cost paradigm will improve, and you’ll get a much cleaner stack to work on while improving your customer experience. If you create that seamless flow, you can be more intentional about how and where you are using AI and gen AI to unlock productivity. We often see people trying to use gen AI components to drive savings first, but if your processes are not good enough, then it’s just going to create a rule check.

Jörg Mußhoff: That’s a good link. There’s a lot of hype about AI, and especially gen AI, but clients want to know what’s underneath it. Could you describe how we see AI as an enabler and what we see as the most relevant developments?

Elena Pizzocaro: Gen AI is considered one of the key enablers for a true step change in productivity. In the past 18 months, we’ve had a number of conversations focused on the potential of gen AI. We’ve observed that AI in general and gen AI more specifically might have an impact of 40 to 50 percent on the productivity of a single process. This could look like automating single tasks or, probably the most common application, assisting the user in the completion of an activity. This is beneficial not only in terms of increasing the outputs but also in improving the experience of the worker. This can be applied to the entire value chain, both for core processes and support functions.

Selim Sulos: To build on that, there are a couple of things in the call center space that excite me, especially in the servicing space and insurance. The application of gen AI for smart routing and suggesting the next-best action to reps is something that was recently tested and is being used across multiple insurance carriers. What excites me is the next layer: some folks are using gen AI to create content, curate content, and educate people. Take life insurance, for example: an article about why customers should buy life insurance that used to take two months can now happen in a week with gen AI.

I would also highlight the modernization of legacy tech. Gen AI can convert legacy code into new code, which provides companies with a more modern, nimble stack for a fraction of the cost. These are all practical ideas that, especially in the context of financial services and insurance, excite us tremendously.

The potential for reducing the technology debt is something that can enable further growth and even produce a quantum leap in productivity itself. Elena Pizzocaro

Elena Pizzocaro: The potential for reducing the technology debt is also something that can enable further growth and even produce a quantum leap in productivity itself. Other promising areas alongside the core processes are, for example, underwriting or claims. Take commercial underwriting, an area that is considered an ivory tower of human knowledge: gen AI can assist people with these special capabilities so they can perform them better, faster, and more accurately. Ultimately, it will improve the experience for the end customer.

Jörg Mußhoff: What you’ve described are companies that are really changing the game, which is also something we’ve observed across industries. And while it will take time to improve the process of an entire institution, the potential is huge. What have you learned? What are your dos and don’ts?

Elena Pizzocaro: Pay attention to change management. Transforming core processes is not just a matter of transforming the process per se; it’s also about changing the way people work with the new technology you apply—the new gen AI use case or process redesign you might implement. You need to put effort into change management as your organization transforms.

Selim Sulos: In the context of productivity, don’t focus on the shiny object in front of you. I have seen people devise many use cases for improving productivity by applying gen AI. The reality is that although these use cases are brilliant, if you don’t have the right processes to support them, you just create more hurdles and complexity in the system. Then people start questioning whether the technology is right, whether the solution is right, or whether folks are headed in the right direction. This kind of doubt undercuts the whole notion of productivity, and you lose it from the get-go. So be thoughtful when you consider where the organization needs to go and what building blocks you need to put in place first. Then you can leverage some of these shiny objects to bolster your productivity.

Elena Pizzocaro is a partner in McKinsey’s Milan office, Jörg Mußhoff is a senior partner in the Berlin office, and Selim Sulos is a partner in the New York office.

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McKinsey insurance leadership on 2024 trends and innovations

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Navigating shifting risks in the insurance industry

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A generative AI reset: Rewiring to turn potential into value in 2024

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Embracing Gen AI at Work

H. James Wilson
Paul R. Daugherty

The skills you need to succeed in the era of large language models

Today artificial intelligence can be harnessed by nearly anyone, using commands in everyday language instead of code. Soon it will transform more than 40% of all work activity, according to the authors’ research. In this new era of collaboration between humans and machines, the ability to leverage AI effectively will be critical to your professional success.

This article describes the three kinds of “fusion skills” you need to get the best results from gen AI. Intelligent interrogation involves instructing large language models to perform in ways that generate better outcomes—by, say, breaking processes down into steps or visualizing multiple potential paths to a solution. Judgment integration is about incorporating expert and ethical human discernment to make AI’s output more trustworthy, reliable, and accurate. It entails augmenting a model’s training sources with authoritative knowledge bases when necessary, keeping biases out of prompts, ensuring the privacy of any data used by the models, and scrutinizing suspect output. With reciprocal apprenticing, you tailor gen AI to your company’s specific business context by including rich organizational data and know-how into the commands you give it. As you become better at doing that, you yourself learn how to train the AI to tackle more-sophisticated challenges.

The AI revolution is already here. Learning these three skills will prepare you to thrive in it.

Generative artificial intelligence is expected to radically transform all kinds of jobs over the next few years. No longer the exclusive purview of technologists, AI can now be put to work by nearly anyone, using commands in everyday language instead of code. According to our research, most business functions and more than 40% of all U.S. work activity can be augmented, automated, or reinvented with gen AI. The changes are expected to have the largest impact on the legal, banking, insurance, and capital-market sectors—followed by retail, travel, health, and energy.

H. James Wilson is the global managing director of technology research and thought leadership at Accenture Research. He is the coauthor, with Paul R. Daugherty, of Human + Machine: Reimagining Work in the Age of AI, New and Expanded Edition (HBR Press, 2024). hjameswilson
Paul R. Daugherty is Accenture’s chief technology and innovation officer. He is the coauthor, with H. James Wilson, of Human + Machine: Reimagining Work in the Age of AI, New and Expanded Edition (HBR Press, 2024). pauldaugh

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Case Study on Sec 10 of The Contract Labour Act, 1970
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Case Study- Labour Relations
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(PDF) CONTRACT LABOUR AND JUDICIAL ACCOUNTABILITY
(PDF) Union Wage Effects On Contract Labour

COMMENTS

Engaging Contract Labour: Learnings from Landmark Judgements
For this, we have referred to the landmark judgements passed by the Supreme Court of India on the deployment and regularization of contract labour, and also their entitlement to equal pay for equal work. A scrutiny of these judgements directs us to advise establishments to avoid engaging contract labour in their core and perennial activities.
Contract Labour in Practice: Some Case Studies
This account provides information pertaining to contract labour working in various contexts—especially in relation to collective bargaining, enforcement and coverage of laws and labour standards.
Contract Labor at Regency Hospital: Legal and HR Dynamics Case Study
Contract Labor at Regency Hospital: Legal and HR Dynamics Description This case brings to the fore different complexities of contract labor employment by principal employers (PE) in the Indian context, including sensitivities involved in handling contract workers' union.
Contract Labor at Regency Hospital: Legal and HR Dynamics
This case brings to the fore different complexities of contract labor employment by principal employers (PE) in the Indian context, including sensitivities involved in handling contract workers' union. Regency Hospital (RH), a corporate Hospital chain in India, acquired Gedex Hospital (GH) in 2005, along with contract workers employed in the latter. In the year 1983, GH's management decided to ...
PDF LABOUR LAW CASE SUMMARY
Since the contract labour work under the supervision of the principal employer (even if their wages are paid through a contractor), and the duties performed by them are not different from those performed by regular employees of the principal employer holding the same post as that of the contract labour, then "outsourcing of employees" as a ...
Case Study: Termination of a Labor Contract Due to Restructuring
Assessing a labor precedent concerning termination of a labor contract due to restructuring and learned lessons.
(Pdf) "Status of Contract Labour: a Socio-legal Perspective (With
The Contract Labour ( Regul ation a nd Abo li tion) Act 1970 was enacted with a view to regulate t he. employment of contract labour in certain establishment and to provide its aboli tion in certa ...
Subject
By: John Coates <a href="/workers-rights-in-the-hudson-valley-a-educator-copy/">Educator Copy</a>
Issues and Problems of contract Labourers in India
Contract labour faced so many problems relating to working conditions of contract labour, nature of work, minimum wages or differences in salary, welfare activity and social security schemes.
A Case on Contract Labour: M/s ABC Chemicals Limited
This case study's objective is to shed light on issues related to making contract labours 'permanent' in organizations. The Government of India enacted the Contract Labour (Regulation & Abolition) Act 1970 in order to regulate establishments wherein contract labour has been employed by the contractors.
Contract Labor in Developing Economies
The study shows that 40% of these firms recorded having employed temporary workers. Of these, 18% employed more than 50% of their workforce using temporary contracts, averaging 63% among firms using contract workers. In India, co-employment of regular and contract labor is a longstanding feature among Indian firms.
PDF The contract labour act of 1970: Issues and concerns
The Contract Labour Act of 1970 in India is a piece of legislation that governs the employment of contract labourers in various industries. Here, are some related articles and studies that provide insight into the Act's impact and effectiveness. Contract Labour Act and its effectiveness in protecting the rights of contract labourers.
PDF A Study of Contract Labour Mangement System in Ltd. Companies
Working in contract worker relation chamber provided knowledge about the necessary norms to be complied with.. There are different rules and regulations that the contractors have to follow when they come in contract with the Ltd. Companies Survey is trying to getting knowledge of the work process of the contract labour management.
The top 7 recent employment law cases you should know
The latest news and commentary on workplace and employment. Find free resources on labor insights, working conditions, and people management software labor efficiency and helping your teams achieve success.
Critical Analysis of The Contract Labour (Regulation and Abolishment
The prime objective of the Contract Labour (Regulation and Abolition) Act is to prevent the exploitation of contract workers and to abolish the system of contract labour in cases where: The work is perennial in nature. The work is incidental or is necessary for the functioning of the establishment. The work is of such a nature that it can ...
20 most important Labour Law judgements every HR manager should learn
The second National Commission on Labour (2002) found the existing laws were complex with anarchic provisions, so it proposed the consolidation of the existing laws. In this article, we will discuss twenty landmark judgements pertaining to the Labour Laws that every HR manager should learn. However, the new labour codes have not been enforced yet.
A Study of Contract Labour Regulation and Abolition Act, 1970
Reasons for the enactment of Contract Labour (Regulation and Abolition) Act, 1970 Contract labourers also suffer from inferior labour status, casual nature of employment, lack of job security and poor economic conditions.
Analysis Of Contract Workers In Labour Law
This essay also examines the distinction between contract labour and general labour, concerns and difficulties faced by contract labourers in various industries, the history of the contract labour Act, and the development of India's current legal system using the suggestions of several committees. The current study is based on the utilisation of secondary data from sources like publications ...
Contracts: Articles, Research, & Case Studies on Contracts- HBS Working
Contracts. New research on contracts from Harvard Business School faculty on issues including why considerations driven by contractual frictions critically shape firms' ownership decisions, contract negotiation strategies, the unenforceability of noncompetes, and when rights of first refusal are a bad deal. Page 1 of 7 Results.
Issues on Making Contract Labours 'Permanent' in India
This Case Study's objective is to shed light on issues related to making contract labours 'permanent' in organizations. The Government of India enacted the Contract Labour (Regulation & Abolition) Act 1970 in order to regulate establishments wherein contract labour has been employed by the contractors.
PDF Case Study on Management of Contractual Employee's Deployed in
In this study we have gone through various facilities available to the Contract Employees. The Acts governing the contract employments are also discussed and elaborated. The Main Acts governing the Contract Employments are 1) Contract Labour Regulation and Abolition Act, 1970 2) The Minimum Wages Act, 1948 3) The EPF Act 4) The ESI Act 5) The ...
Case Study on Sec 10 of The Contract Labour Act, 1970
The Hon'ble Supreme Court observed that: If the contract is found to be genuine and a prohibition notification has been issued under Section 10 (1) of the Contract Labour (Regulation & Abolition) Act, 1970, in respect of the establishment, the principal employer intending to employ regular workmen for the process, operation or other work of ...
10 Important Cases of Labour Law
Labour law covers employment contracts, wages, health and safety, fair treatment of employees, dispute resolution mechanisms and so on and so forth. It provides regulations that govern the relationship between an employee and the employer in a workplace. Labour laws play an important role in the protection of the rights of employees. The cases discussed below aim to cover various aspects of ...
What happened in the Kolkata rape case that triggered doctors' protests
Laws against sexual violence were made stricter following a rape case in 2012, when a 22-year-old physiotherapy intern was brutally gang-raped and murdered on a bus in Delhi.
Helping to Eliminate Child Labour From Global Supply Chains
This unregulated mining carries significant risks for workers - unsafe working conditions, labour exploitation, illegal child labour and trafficking. The Responsible Mica Initiative (RMI) is a global coalition for action comprising multiple organisations committed to establishing a fair, responsible and sustainable mica supply chain in the ...
Update on Cornell-UAW negotiations
The UAW represents about 1,300 of our employees across campus, including in Dining, Building Care, Facilities, CALS, CVM and the Statler Hotel. The university and the UAW have had a productive labor-management relationship for more than 40 years, and we are committed to the continued success of this relationship and to reaching our next agreement.
Gen AI insurance use cases: A comprehensive approach
Elena Pizzocaro: The potential for reducing the technology debt is also something that can enable further growth and even produce a quantum leap in productivity itself. Other promising areas alongside the core processes are, for example, underwriting or claims. Take commercial underwriting, an area that is considered an ivory tower of human knowledge: gen AI can assist people with these ...
Embracing Gen AI at Work
The skills you need to succeed in the era of large language models