Understanding Union Activity and Wage Deduction: Insights on Protected Workmen and Labor Laws

Can we legally deduct wages of employees for the days/hours when they are attending Union Meetings or have gone to submit representation to the Labour Officer, etc.? Is there any case law on the subject? Someone mentioned that the Madras High Court has recently discussed the issue. Kindly advise.

Thanks

Rule 61 of the Industrial Disputes (Central) Rules, 1957 provides for furnishing to the employer details of "protected workmen" by the trade union of that establishment. It follows section 33 of the Industrial Disputes Act, 1947. Under section 33(3) of the ID Act, during the pendency of an industrial dispute, an employer shall not discharge, dismiss, or alter service conditions or reduce wages of a workman who is directly involved in the proceeding either as an employee or office bearer of the registered trade union.

The ID Rules provide that every registered trade union shall nominate (one percentage of the total number of employees employed subject to a minimum of five and a maximum of one hundred) the workers who are to be recognized as "protected" workers. It is the duty of the employer to communicate the names of such protected workmen back to the union.

The above provisions are in the ID Act or Rules. I have seen Trade Union leaders who are totally ignorant of this provision as well. (In fact, they are concerned only about the Trade Union Act, and that Act is meant only for registration and similar matters connected with trade unions.) But if you reduce the wages of an employee who moves out for a trade union meeting or to meet the Labour Officer, the matter will be discussed, and he will start assuming himself as a protected workman. Though protection is to be recognized and approved by the employer, the matter can go out of control. Therefore, I feel that even if nobody has been recognized as a 'protected workman,' it is better to make your own ruling in this respect so that the frequent movement of staff could be regulated. You can issue a circular stating that union meetings will be permitted only after office hours, and nobody will be allowed to move out without a valid reason. After that, make revisions if required after getting feedback from the union members. Do not go for a straight pay cut.

Regards,

Madhu.T.K

Thank you for your response. I seek the following clarifications:

1. Are protected workmen allowed to attend meetings, etc., during work hours without pay cuts?
2. Assuming there is no industrial dispute, would Section 33 still apply for wage cuts, etc., for not attending the complete shift?
3. Would an absent mark or wage cut for a day/part of the day spent in Union Activity amount to a 'reduction of wages' under Section 33?

Thanking you.
Regards

Protection of workmen is not a tool to disobey the rules. Section 33 applies when an industrial dispute is in progress. Additionally, punishment given to an employee for misconduct or reduction of wages for reasons other than those related to the dispute is also not covered, as provided in subsection 2 of section 33. It only means to avoid 'victimisation'. Similarly, holding meetings during working time and within the premises is illegal, though the right of workmen to form a union and hold meetings is always protected.

In normal circumstances, provisions relating to such restrictions should be included in the standing orders of the company itself. There cannot be any relaxation for a protected worker. If he abstains from work, the day or hours shall be marked 'absent' unless otherwise provided or agreed upon. However, for one or two hours of moving out for submission of representations to the Labour Office or trade union office, permission may be given.

Regards, Madhu.T.K

Which categories of employees can join the union? Can staff, middle management personnel, and HR staff join the union?

Section 7(2) of the Payment of Wages Act 1936 allows for a proportionate deduction to be made for the period of absence. An employee is paid wages for the work assigned to them. Union work or going to labor authorities is not considered work assigned to the employee. Hence, they have no right to claim wages for such a period. Wages can be deducted proportionately for such absences. There is a reported judgment on this matter.

Regards, KK Nair

There is no restriction with regard to the category of employees to join a trade union. Shop floor employees can form their union. At the same time, middle-level managerial staff can have their own union, and even top managerial staff can have a union of their own.

Deduction of wages due to the absence of work is certainly permitted. Please refer to my previous post along with this. But practically, moving out for a meeting with the labor department or representation in such a meeting need not be regarded as 'absence' from work. Please note the word 'practical'.

Regards, Madhu.T.K